As Reported by the House Finance and Appropriations Committee*    1            

122nd General Assembly                                             4            

   Regular Session                            Sub. H. B. No. 770   5            

      1997-1998                                                    6            


REPRESENTATIVES JOHNSON-SYKES-VERICH-THOMAS-VESPER-WOMER BENJAMIN-  8            

                O'BRIEN-PERZ-MOTTLEY-METZGER-CORE                  9            


                                                                   11           

                           A   B I L L                                          

             To amend sections 101.68, 126.14, 131.35, 133.06,     14           

                325.19, 718.01, 3313.646, 3313.841, 3313.842,                   

                3313.975, 3313.98, 3314.02, 3314.03, 3314.06,      15           

                3314.07, 3314.08, 3317.01, 3317.013, 3317.02,      16           

                3317.021, 3317.022, 3317.023, 3317.024, 3317.029,  18           

                3317.0212, 3317.0213, 3317.0214, 3317.0215,                     

                3317.0216, 3317.03, 3317.05, 3317.051, 3317.06,    19           

                3317.082, 3317.10, 3317.11, 3317.161, 3317.19,     20           

                3318.06, 3318.08, 3318.10, 3319.22, 3323.091,                   

                3323.12, 3734.57, 3734.82, 4123.40, 4701.10,       21           

                4701.20, 4743.05, 4745.01, 5101.93, 5104.32,                    

                5104.34, 5104.35, 5104.38, 5711.22, 5733.04,       22           

                5733.05, 5733.057, 5733.0611, 5733.12, 5733.40,    23           

                5733.98, 5747.01, 5747.08, 5747.43, and 5747.98;   25           

                to enact sections 715.013, 3314.12, 3314.13,       26           

                3315.171, 3315.181, 3317.20, 3345.122, 4981.091,   27           

                5733.058, 5733.401, 5733.402, 5747.401, and        29           

                5907.15; and to repeal section 5747.452 of the                  

                Revised Code; to amend Section 50.11 of Am. Sub.   30           

                H.B. 215 of the 122nd General Assembly, as         31           

                subsequently amended; to amend Section 50.11 of                 

                Am. Sub. H.B. 215 of the 122nd General Assembly,   32           

                as subsequently amended, for the purpose of                     

                changing its number to section 3317.162 of the     34           

                Revised Code; to amend Sections 20.05, 47.13,                   

                50.52, 50.52.2, 50.52.4, 50.52.7, 50.52.9, 58,     35           

                62.01, 67.08, 101, 119, 190, and 210 of Am. Sub.   36           

                                                          2      

                                                                 
                H.B. 215 of the 122nd General Assembly; to amend   38           

                Section 67.05 of Am. Sub. H.B. 215 of the 122nd                 

                General Assembly, as amended by Sub. H.B. 446 of   39           

                the 122nd General Assembly; to amend Sections 50,  40           

                50.07, 50.08, 50.09, 50.10, 50.12, 50.13, 50.14,                

                50.24, 50.44, 50.52.5, and 50.52.10 of Am. Sub.    42           

                H.B. 215 of the 122nd General Assembly, as         43           

                amended by Am. Sub. H.B. 650 of the 122nd General  44           

                Assembly; to amend Sections 18 and 19 of Am. Sub.               

                H.B. 650 of the 122nd General Assembly; to amend   46           

                Section 50.06 of Am. Sub. H.B. 215 of the 122nd                 

                General Assembly, as amended by Am. Sub. H.B. 182  47           

                and Am. Sub. H.B. 650 of the 122nd General         48           

                Assembly; to amend Section 7 of Am. Sub. S.B. 102               

                of the 122nd General Assembly; and to repeal       49           

                Section 50.52.12 of Am. Sub. H.B. 215 of the                    

                122nd General Assembly to correct, supplement,     50           

                and modify certain authorizations and conditions   51           

                established for the operation and administration                

                of state programs, and to make appropriations for  52           

                the biennium ending June 30, 1999.                 53           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        55           

      Section 1.  That sections 101.68, 126.14, 131.35, 133.06,    58           

325.19, 718.01, 3313.646, 3313.841, 3313.842, 3313.975, 3313.98,   59           

3314.02, 3314.03, 3314.06, 3314.07, 3314.08, 3317.01, 3317.013,    60           

3317.02, 3317.021, 3317.022, 3317.023, 3317.024, 3317.029,         62           

3317.0212, 3317.0213, 3317.0214, 3317.0215, 3317.0216, 3317.03,    63           

3317.05, 3317.051, 3317.06, 3317.082, 3317.10, 3317.11, 3317.161,               

3317.19, 3318.06, 3318.08, 3318.10, 3319.22, 3323.091, 3323.12,    64           

3734.57, 3734.82, 4123.40, 4701.10, 4701.20, 4743.05, 4745.01,     65           

5101.93, 5104.32, 5104.34, 5104.35, 5104.38, 5711.22, 5733.04,     66           

5733.05, 5733.057, 5733.0611, 5733.12, 5733.40, 5733.98, 5747.01,  67           

5747.08, 5747.43, and 5747.98 be amended and sections 715.013,     70           

                                                          3      

                                                                 
3314.12, 3314.13, 3315.171, 3315.181, 3317.20, 3345.122,                        

4981.091, 5733.058, 5733.401, 5733.402, 5747.401, and 5907.15 of   71           

the Revised Code be enacted and that Section 50.11 of Am. Sub.     72           

H.B. 215 of the 122nd General Assembly, as most recently amended   73           

by Am. Sub. H.B. 650 of the 122nd General Assembly, be amended     74           

and renumbered as section 3317.162 of the Revised Code to read as  75           

follows:                                                                        

      Sec. 101.68.  (A)  Within thirty days of the convening of    84           

the first regular session of the general assembly, each agency     85           

required to submit reports or similar documents to the general     86           

assembly pursuant to section 103.43, 154.05, 3301.07, 5139.33,     87           

5501.07, 5537.17, or 5593.21 of the Revised Code shall send        88           

written notice to each member of the general assembly in order to  89           

determine whether the member desires to personally receive the     90           

reports or similar documents as they are made available by the     91           

agency.  If the member desires to personally receive the reports   92           

or similar documents as they become available, the member shall    93           

send a written request to the agency within thirty days of         94           

receiving the notice.                                              95           

      (B)(1)  Whenever any statute or rule requires that a         97           

report, recommendation, or other similar document be submitted to  98           

the general assembly under a law not cited in division (A) of      99           

this section, to the members of the general assembly, to one       100          

house of the general assembly, or to the members of one house of   101          

the general assembly, the requirement shall be fulfilled by the    102          

submission of a copy of the report, recommendation, or document    103          

to the director of the legislative service commission, the         104          

president of the senate, the minority leader of the senate, the    105          

speaker of the house of representatives, and the minority leader   106          

of the house of representatives if both houses of the general      107          

assembly or their members are specified, or to the director of     108          

the legislative service commission, the president of the senate,   109          

and the minority leader of the senate if only the senate or its    110          

members are specified, or to the director of the legislative       111          

                                                          4      

                                                                 
service commission, the speaker of the house of representatives,   112          

and the minority leader of the house of representatives if only    113          

the house of representatives or its members are specified.  This   114          

division does not apply to items required to be distributed to     115          

members of the general assembly pursuant to section 103.14,        116          

149.04, 149.07, or 149.17 of the Revised Code.                     117          

      (2)  WHENEVER ANY STATUTE OR RULE REQUIRES AN AGENCY TO      119          

SUBMIT A REPORT, RECOMMENDATION, OR OTHER SIMILAR DOCUMENT TO THE  120          

PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF            121          

REPRESENTATIVES, THE REQUIREMENT SHALL BE FULFILLED BY THE         122          

SUBMISSION OF A COPY OF THE REPORT, RECOMMENDATION, OR DOCUMENT    123          

TO THE DIRECTOR OF THE LEGISLATIVE SERVICE COMMISSION, THE         124          

MINORITY LEADER AS WELL AS THE PRESIDENT OF THE SENATE, AND THE    126          

MINORITY LEADER AS WELL AS THE SPEAKER OF THE HOUSE OF             127          

REPRESENTATIVES, OR TO THE DIRECTOR OF THE LEGISLATIVE SERVICE                  

COMMISSION AND THE MINORITY LEADER AND PRESIDENT OF THE SENATE IF  129          

ONLY THE SENATE PRESIDENT IS SPECIFIED, OR TO THE DIRECTOR OF THE  130          

LEGISLATIVE SERVICE COMMISSION AND THE MINORITY LEADER AND                      

SPEAKER OF THE HOUSE OF REPRESENTATIVES IF ONLY THE SPEAKER OF     133          

THE HOUSE OF REPRESENTATIVES IS SPECIFIED.                                      

      (C)  Each month the legislative service commission shall     135          

provide to each member of the senate and to each member of the     136          

house of representatives a list of all reports, recommendations,   137          

and documents submitted to the officers of the general assembly    138          

under division (B) of this section.  The list shall include a      139          

short and accurate description of the content, length, and form    140          

of each report, recommendation, or document submitted, as well as  141          

a statement setting forth the number printed and the cost of       142          

preparation.  Each member may request from the legislative         143          

service commission a copy of any report, recommendation, or        144          

document on the list, and the legislative service commission       145          

shall comply with any such request.                                146          

      Sec. 126.14.  The release of any money appropriated for the  156          

purchase of real estate shall be approved by the controlling       157          

                                                          5      

                                                                 
board.  The release of money appropriated for all other capital    158          

projects is also subject to the approval of the controlling        159          

board, except that the director of budget and management may       160          

approve the release of money appropriated for specific projects    161          

in accordance with the requirements of this section.               162          

      Within sixty days after the effective date of any act        164          

appropriating money for capital projects, the director shall       165          

determine which appropriations are for general projects and which  167          

are for specific projects.  Specific projects may include                       

specific higher education projects that are to be funded from      168          

general purpose appropriations from the higher education           169          

improvements IMPROVEMENT fund created in section 154.21 of the     170          

Revised Code.  Upon determining which projects are general and     172          

which are specific, the director shall submit to the controlling   173          

board a list that includes a brief description of and the          174          

estimated expenditures for each specific project.  The release of  175          

money for any specific higher education projects that are to be    176          

funded from general purpose appropriations from the higher         177          

education improvements IMPROVEMENT fund but that are not included  178          

on the list, and the release of money for any specific higher      180          

education projects included on the list that will exceed the       181          

estimated expenditures by more than ten per cent, are subject to   182          

the approval of the controlling board.  THE DIRECTOR MAY CREATE    183          

NEW APPROPRIATION LINE ITEMS AND MAKE TRANSFERS OF APPROPRIATIONS  184          

TO THEM FOR SPECIFIC HIGHER EDUCATION PROJECTS INCLUDED ON THE     185          

LIST THAT ARE TO BE FUNDED FROM GENERAL PURPOSE APPROPRIATIONS     186          

FOR BASIC RENOVATIONS THAT ARE MADE FROM THE HIGHER EDUCATION                   

IMPROVEMENT FUND.                                                  187          

      Sec. 131.35.  (A)  With respect to the federal funds         197          

received into any fund of the state from which transfers may be    198          

made under division (D) of section 127.14 of the Revised Code:     199          

      (1)  No state agency may make expenditures of any federal    201          

funds, whether such funds are advanced prior to expenditure or as  202          

reimbursement, unless such expenditures are made pursuant to       203          

                                                          6      

                                                                 
specific appropriations of the general assembly identifying the    205          

federal program that is the source of funds, are authorized        206          

pursuant to section 131.38 of the Revised Code, are authorized by  207          

the controlling board pursuant to division (A)(5) of this          209          

section, or are authorized by an executive order issued in         210          

accordance with section 107.17 of the Revised Code, and until an   211          

allotment has been approved by the director of budget and          212          

management.  All federal funds received by a state agency shall    213          

be reported to the director within fifteen days of the receipt of  214          

such funds or the notification of award, whichever occurs first.   215          

The director shall prescribe the forms and procedures to be used   216          

when reporting the receipt of federal funds.                       217          

      (2)  If the federal funds received are greater than the      219          

amount of such funds appropriated by the general assembly for a    220          

specific purpose, the total appropriation of federal and state     221          

funds for such purpose shall remain at the amount designated by    222          

the general assembly, except that the expenditure of federal       223          

funds received in excess of such specific appropriation may be     224          

authorized by the controlling board.                               225          

      (3)  To the extent that the expenditure of excess federal    227          

funds is authorized, the controlling board may transfer a like     228          

amount of general revenue fund appropriation authority from the    229          

affected agency to the emergency purposes appropriation of the     230          

controlling board, if such action is permitted under federal       231          

regulations.                                                       232          

      (4)  Additional funds may be created by the controlling      234          

board to receive revenues not anticipated in an appropriations     235          

act for the biennium in which such new revenues are received.      236          

Expenditures from such additional funds may be authorized by the   237          

controlling board, but such authorization shall not extend beyond  238          

the end of the biennium in which such funds are created.           239          

      (5)  Controlling board authorization for a state agency to   241          

make an expenditure of federal funds under division (A)(1) of      244          

this section constitutes authority for the agency to participate   245          

                                                          7      

                                                                 
in the federal program providing the funds, and the agency is not  246          

required to obtain an executive order under section 107.17 of the  247          

Revised Code to participate in the federal program.                             

      (B)  With respect to nonfederal funds received into the      249          

waterways safety fund, the wildlife fund, and any fund of the      251          

state from which transfers may be made under division (D) of       252          

section 127.14 of the Revised Code:                                             

      (1)  No state agency may make expenditures of any such       254          

funds unless the expenditures are made pursuant to specific        255          

appropriations of the general assembly.                            256          

      (2)  If the receipts received into any fund are greater      258          

than the amount appropriated, the appropriation for that fund      259          

shall remain at the amount designated by the general assembly or   260          

as increased and approved by the controlling board.                261          

      (3)  Additional funds may be created by the controlling      263          

board to receive revenues not anticipated in an appropriations     264          

act for the biennium in which such new revenues are received.      265          

Expenditures from such additional funds may be authorized by the   266          

controlling board, but such authorization shall not extend beyond  267          

the end of the biennium in which such funds are created.           268          

      (C)  The controlling board shall not authorize more than     270          

ten per cent of additional spending from the occupational          271          

licensing and regulatory fund, created in section 4743.05 of the   272          

Revised Code, in excess of any appropriation made by the general   273          

assembly to a licensing agency except an appropriation for costs   274          

related to the examination or reexamination of applicants for a    275          

license.  As used in this division, "licensing agency" and         276          

"license" have the same meanings as in section 4745.01 of the      277          

Revised Code.                                                      278          

      Sec. 133.06.  (A)  A school district shall not incur,        287          

without a vote of the electors, net indebtedness that exceeds an   288          

amount equal to one-tenth of one per cent of its tax valuation     289          

except as provided in divisions (G) and (H) of this section and    291          

in division (C) of section 3313.372 of the Revised Code.           292          

                                                          8      

                                                                 
      (B)  Except as provided in divisions (E) and (F) of this     294          

section, a school district shall not incur net indebtedness that   295          

exceeds an amount equal to nine per cent of its tax valuation.     296          

      (C)  A school district shall not submit to a vote of the     298          

electors the question of the issuance of securities in an amount   299          

that will make the district's net indebtedness after the issuance  300          

of the securities exceed an amount equal to four per cent of its   301          

tax valuation, unless the superintendent of public instruction,    302          

acting under policies adopted by the state board of education,     303          

and the tax commissioner, acting under written policies of the     304          

commissioner, consent to the submission.  A request for the        305          

consents shall be made at least thirty days prior to the election  306          

at which the question is to be submitted except that the           307          

superintendent of public instruction and the tax commissioner may  308          

waive this thirty-day deadline or grant their consents after the   309          

election if the school district shows good cause for such waiver   310          

or consent after the election.                                     311          

      (D)  In calculating the net indebtedness of a school         313          

district none of the following shall be considered:                314          

      (1)  Securities issued to acquire school buses and other     316          

equipment used in transporting pupils or issued pursuant to        317          

division (D) of section 133.10 of the Revised Code;                318          

      (2)  Securities issued under division (F) of this section,   320          

under section 133.301 of the Revised Code, and, to the extent in   321          

excess of the limitation stated in division (B) of this section,   322          

under division (E) of this section;                                323          

      (3)  Indebtedness resulting from the dissolution of a joint  325          

vocational school district under section 3311.217 of the Revised   326          

Code, evidenced by outstanding securities of that joint            327          

vocational school district;                                        328          

      (4)  Loans, evidenced by any securities, received under      330          

sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the        331          

Revised Code;                                                      332          

      (5)  Debt incurred under section 3313.374 of the Revised     334          

                                                          9      

                                                                 
Code;                                                                           

      (6)  Debt incurred pursuant to division (B)(5) of section    337          

3313.37 of the Revised Code to acquire computers and related                    

hardware.                                                                       

      (E)  A school district may become a special needs district   339          

as to certain securities as provided in division (E) of this       340          

section.                                                           341          

      (1)  A board of education, by resolution, may declare its    343          

school district to be a special needs district by determining      344          

both of the following:                                             345          

      (a)  The student population is not being adequately          347          

serviced by the existing permanent improvements of the district.   348          

      (b)  The district cannot obtain sufficient funds by the      350          

issuance of securities within the limitation of division (B) of    351          

this section to provide additional or improved needed permanent    352          

improvements in time to meet the needs.                            353          

      (2)  The board of education shall certify a copy of that     355          

resolution to the superintendent of public instruction with a      356          

statistical report showing all of the following:                   357          

      (a)  A history of and a projection of the growth of the      359          

student population;                                                360          

      (b)  The history of and a projection of the growth of the    362          

tax valuation;                                                     363          

      (c)  The projected needs;                                    365          

      (d)  The estimated cost of permanent improvements proposed   367          

to meet such projected needs.                                      368          

      (3)  The superintendent of public instruction shall certify  370          

the district as an approved special needs district if the          371          

superintendent finds both of the following:                        372          

      (a)  The district does not have available sufficient         374          

additional funds from state or federal sources to meet the         375          

projected needs.                                                   376          

      (b)  The projection of the potential average growth of tax   378          

valuation during the next five years, according to the             379          

                                                          10     

                                                                 
information certified to the superintendent and any other          380          

information the superintendent obtains, indicates a likelihood of  381          

potential average growth of tax valuation of the district during   382          

the next five years of an average of not less than three per cent  383          

per year.  The findings and certification of the superintendent    384          

shall be conclusive.                                               385          

      (4)  An approved special needs district may incur net        387          

indebtedness by the issuance of securities in accordance with the  388          

provisions of this chapter in an amount that does not exceed an    389          

amount equal to the greater of the following:                      390          

      (a)  Nine per cent of the sum of its tax valuation plus an   392          

amount that is the product of multiplying that tax valuation by    393          

the percentage by which the tax valuation has increased over the   394          

tax valuation on the first day of the sixtieth month preceding     395          

the month in which its board determines to submit to the electors  396          

the question of issuing the proposed securities;                   397          

      (b)  Nine per cent of the sum of its tax valuation plus an   399          

amount that is the product of multiplying that tax valuation by    400          

the percentage, determined by the superintendent of public         401          

instruction, by which that tax valuation is projected to increase  402          

during the next ten years.                                         403          

      (F)  A school district may issue securities for emergency    405          

purposes, in a principal amount that does not exceed an amount     406          

equal to three per cent of its tax valuation, as provided in this  407          

division.                                                          408          

      (1)  A board of education, by resolution, may declare an     410          

emergency if it determines both of the following:                  411          

      (a)  School buildings or other necessary school facilities   413          

in the district have been wholly or partially destroyed, or        414          

condemned by a constituted public authority, or that such          415          

buildings or facilities are partially constructed, or so           416          

constructed or planned as to require additions and improvements    417          

to them before the buildings or facilities are usable for their    418          

intended purpose, or that corrections to permanent improvements    419          

                                                          11     

                                                                 
are necessary to remove or prevent health or safety hazards.       420          

      (b)  Existing fiscal and net indebtedness limitations make   422          

adequate replacement, additions, or improvements impossible.       423          

      (2)  Upon the declaration of an emergency, the board of      425          

education may, by resolution, submit to the electors of the        426          

district pursuant to section 133.18 of the Revised Code the        427          

question of issuing securities for the purpose of paying the       428          

cost, in excess of any insurance or condemnation proceeds          429          

received by the district, of permanent improvements to respond to  430          

the emergency need.                                                431          

      (3)  The procedures for the election shall be as provided    433          

in section 133.18 of the Revised Code, except that:                434          

      (a)  The form of the ballot shall describe the emergency     436          

existing, refer to this division as the authority under which the  437          

emergency is declared, and state that the amount of the proposed   438          

securities exceeds the limitations prescribed by division (B) of   439          

this section;                                                      440          

      (b)  The resolution required by division (B) of section      442          

133.18 of the Revised Code shall be certified to the county        443          

auditor and the board of elections at least seventy-five days      444          

prior to the election;                                             445          

      (c)  The county auditor shall advise and, not later than     447          

sixty-five days before the election, confirm that advice by        448          

certification to, the board of education of the information        449          

required by division (C) of section 133.18 of the Revised Code;    450          

      (d)  The board of education shall then certify its           452          

resolution and the information required by division (D) of         453          

section 133.18 of the Revised Code to the board of elections not   454          

less than sixty days prior to the election.                        455          

      (4)  Notwithstanding division (B) of section 133.21 of the   457          

Revised Code, the first principal payment of securities issued     458          

under this division may be set at any date not later than sixty    459          

months after the earliest possible principal payment otherwise     460          

provided for in that division.                                     461          

                                                          12     

                                                                 
      (G)  The board of education may contract with an architect,  463          

professional engineer, or other person experienced in the design   464          

and implementation of energy conservation measures for an          465          

analysis and recommendations pertaining to installations,          466          

modifications of installations, or remodeling that would           467          

significantly reduce energy consumption in buildings owned by the  468          

district.  The report shall include estimates of all costs of      469          

such installations, modifications, or remodeling including costs   470          

of design, engineering, installation, maintenance, repairs, and    471          

debt service, and estimates of the amounts by which energy         472          

consumption and resultant operational and maintenance costs, as    473          

defined by the Ohio school facilities commission, would be         475          

reduced.                                                                        

      If the board finds after receiving the report that the       477          

amount of money the district would spend on such installations,    478          

modifications, or remodeling is not likely to exceed the amount    479          

of money it would save in energy and resultant operational and     480          

maintenance costs over the ensuing ten FIFTEEN years, the board    482          

may submit to the commission a copy of its findings and a request  483          

for approval to incur indebtedness to finance the making or        485          

modification of installations or the remodeling of buildings for   486          

the purpose of significantly reducing energy consumption.          487          

      If the commission determines that the board's findings are   490          

reasonable, it shall approve the board's request.  Upon receipt    491          

of the commission's approval, the district may issue securities    493          

without a vote of the electors in a principal amount not to        494          

exceed nine-tenths of one per cent of its tax valuation for the    495          

purpose of making such installations, or modifications, or         496          

remodeling, but the total net indebtedness of the district         497          

without a vote of the electors incurred under this and all other   498          

sections of the Revised Code shall not exceed one per cent of the  499          

district's tax valuation.                                          500          

      So long as any securities issued under division (G) of this  503          

section remain outstanding, the board of education shall monitor                

                                                          13     

                                                                 
the energy consumption and resultant operational and maintenance   504          

costs of buildings in which installations or modifications have    506          

been made or remodeling has been done pursuant to division (G) of  507          

this section and shall maintain and annually update a report       509          

documenting the reductions in energy consumption and resultant     510          

operational and maintenance cost savings attributable to such      511          

installations, modifications, or remodeling.  The report shall be  512          

certified by an architect or engineer independent of any person    513          

that provided goods or services to the board in connection with    514          

the energy conservation measures that are the subject of the       515          

report.  The resultant operational and maintenance cost savings    516          

shall be certified by the school district treasurer.  The report   517          

shall be made available to the commission upon request.            518          

      (H)  With the consent of the superintendent of public        520          

instruction, a school district may incur without a vote of the     521          

electors net indebtedness that exceeds the amounts stated in       522          

divisions (A) and (G) of this section for the purpose of paying    524          

costs of permanent improvements, if and to the extent that both    525          

of the following conditions are satisfied:                         526          

      (1)  The fiscal officer of the school district estimates     528          

that receipts of the school district from compensation derived     529          

from or under agreements entered into pursuant to section 5709.82  530          

of the Revised Code, or distributions under division (C) of        531          

section 5709.43 of the Revised Code, or any combination thereof,   532          

are, after accounting for any appropriate coverage requirements,   533          

sufficient in time and amount, and are committed by the            534          

proceedings, to pay the debt charges on the securities issued to   535          

evidence that indebtedness and payable from those receipts, and    536          

the taxing authority of the district confirms the fiscal           537          

officer's estimate, which confirmation is approved by the          538          

superintendent of public instruction;                              539          

      (2)  The fiscal officer of the school district certifies,    541          

and the taxing authority of the district confirms, that the        542          

district, at the time of the certification and confirmation,       543          

                                                          14     

                                                                 
reasonably expects to have sufficient revenue available for the    544          

purpose of operating such permanent improvements for their         545          

intended purpose upon acquisition or completion thereof, and the   546          

superintendent of public instruction approves the taxing           547          

authority's confirmation.                                          548          

      The maximum maturity of securities issued under division     550          

(H) of this section shall be the lesser of twenty years or the     551          

maximum maturity calculated under section 133.20 of the Revised    552          

Code.                                                              553          

      Sec. 325.19.  (A)(1)  The granting of vacation leave under   562          

division (A)(1) of this section is subject to divisions (A)(2)     563          

and (3) of this section.  Each full-time employee in the several   564          

offices and departments of the county service, including           565          

full-time hourly rate employees, after service of one year with    566          

the county or any political subdivision of the state, shall have   567          

earned and will be due upon the attainment of the first year of    568          

employment, and annually thereafter, eighty hours of vacation      569          

leave with full pay.  One year of service shall be computed on     570          

the basis of twenty-six biweekly pay periods.  A full-time county  571          

employee with eight or more years of service with the county or    572          

any political subdivision of the state shall have earned and is    573          

entitled to one hundred twenty hours of vacation leave with full   574          

pay.  A full-time county employee with fifteen or more years of    575          

service with the county or any political subdivision of the state  576          

shall have earned and is entitled to one hundred sixty hours of    577          

vacation leave with full pay.  A full-time county employee with    578          

twenty-five years of service with the county or any political      579          

subdivision of the state shall have earned and is entitled to two  580          

hundred hours of vacation leave with full pay.  Such vacation      581          

leave shall accrue to the employee at the rate of three and        582          

one-tenth hours each biweekly period for those entitled to eighty  583          

hours per year; four and six-tenths hours each biweekly period     584          

for those entitled to one hundred twenty hours per year; six and   585          

two-tenths hours each biweekly period for those entitled to one    586          

                                                          15     

                                                                 
hundred sixty hours per year; and seven and seven-tenths hours     587          

each biweekly period for those entitled to two hundred hours per   588          

year.                                                              589          

      (2)  Full-time employees granted vacation leave under        591          

division (A)(1) of this section who render any standard of         592          

service other than forty hours per week as described in division   593          

(I)(J) of this section and who are in active pay status in a       594          

biweekly pay period, shall accrue a number of hours of vacation    595          

leave during each such pay period that bears the same ratio to     596          

the number of hours specified in division (A)(1) of this section   597          

as their number of hours which are accepted as full-time in        598          

active pay status, excluding overtime hours, bears to eighty       599          

hours.                                                             600          

      (3)  Full-time employees granted vacation leave under        602          

division (A)(1) of this section who are in active pay status in a  603          

biweekly pay period for less than eighty hours or the number of    604          

hours of service otherwise accepted as full-time by their          605          

employing office or department shall accrue a number of hours of   606          

vacation leave during that pay period that bears the same ratio    607          

to the number of hours specified in division (A)(1) of this        608          

section as their number of hours in active pay status, excluding   609          

overtime hours, bears to eighty or the number of hours of service  610          

accepted as full time, whichever is applicable.                    611          

      (B)  A board of county commissioners, by resolution, may     613          

grant vacation leave with full pay to part-time county employees.  614          

A part-time county employee shall be eligible for vacation leave   615          

with full pay upon the attainment of the first year of             616          

employment, and annually thereafter.  The ratio between the hours  617          

worked and the vacation hours awarded to a part-time employee      618          

shall be the same as the ratio between the hours worked and the    619          

vacation hours earned by a full-time employee as provided for in   620          

this section.                                                      621          

      (C)  Days specified as holidays in section 124.19 of the     623          

Revised Code shall not be charged to an employee's vacation        624          

                                                          16     

                                                                 
leave.  Vacation leave shall be taken by the employee during the   625          

year in which it accrued and prior to the next recurrence of the   626          

anniversary date of the employee's employment, provided the        627          

appointing authority may, in special and meritorious cases,        628          

permit such employee to accumulate and carry over his vacation     629          

leave to the following year.  No vacation leave shall be carried   630          

over for more than three years.  An employee is entitled to        631          

compensation, at the employee's current rate of pay, for the       632          

prorated portion of any earned but unused vacation leave for the   633          

current year to the employee's credit at time of separation, and   634          

in addition shall be compensated for any unused vacation leave     635          

accrued to the employee's credit, with the permission of the       636          

appointing authority, for the three years immediately preceding                 

the last anniversary date of employment.                           637          

      (D)(1)  In addition to vacation leave, a full-time county    639          

employee is entitled to eight hours of holiday pay for New Year's  640          

day, Martin Luther King day, Washington-Lincoln day, Memorial      641          

day, Independence day, Labor day, Columbus day, Veterans' day,     642          

Thanksgiving day, and Christmas day, of each year.  Except as      644          

provided in division (D)(2) of this section, holidays shall occur  645          

on the days specified in section 1.14 of the Revised Code.  In     646          

the event that any of the aforesaid holidays fall on Saturday,     647          

the Friday immediately preceding shall be observed as the          648          

holiday.  In the event that any of the aforesaid holidays fall on  649          

Sunday, the Monday immediately succeeding shall be observed as     650          

the holiday.  If an employee's work schedule is other than Monday  651          

through Friday, the employee is entitled to holiday pay for        652          

holidays observed on the employee's day off regardless of the day  653          

of the week on which they are observed.                                         

      (2)  When a classified employee of a county board of mental  655          

retardation and developmental disabilities works at a site         656          

maintained by a government entity other than the board, such as a  657          

public school, the board may adjust the employee's holiday         658          

schedule to conform to the schedule adopted by the government      659          

                                                          17     

                                                                 
entity.  Under an adjusted holiday schedule, an employee shall                  

receive the number of hours of holiday pay granted under division  660          

(D)(1) of this section.                                            661          

      (E)  In the case of the death of a county employee, the      663          

unused vacation leave and unpaid overtime to the credit of any     664          

such employee, shall be paid in accordance with section 2113.04    665          

of the Revised Code, or to the employee's estate.                  666          

      (F)  Notwithstanding this section or any other section of    668          

the Revised Code, any appointing authority of a county office,     669          

department, commission, board, or body may, upon notification to   670          

the board of county commissioners, establish alternative           671          

schedules of vacation leave and holidays for employees of the      672          

appointing authority for whom the state employment relations       673          

board has not established an appropriate bargaining unit pursuant  674          

to section 4117.06 of the Revised Code, provided that the          675          

alternative schedules are not inconsistent with the provisions of  676          

a collective bargaining agreement covering other employees of      677          

that appointing authority.                                         678          

      (G)  The employees of a county children services board that  680          

establishes vacation benefits under section 5153.12 of the         681          

Revised Code are exempt from division (A) of this section.         682          

      (H)  The provisions of this section do not apply to          684          

superintendents and management employees of county boards of       685          

mental retardation and developmental disabilities.                 686          

      (I)  DIVISION (A) OF THIS SECTION DOES NOT APPLY TO AN       688          

EMPLOYEE OF A COUNTY BOARD OF MENTAL RETARDATION AND               689          

DEVELOPMENTAL DISABILITIES WHO WORKS AT, OR PROVIDES               690          

TRANSPORTATION SERVICES TO PUPILS OF, A SPECIAL EDUCATION PROGRAM  691          

PROVIDED BY THE COUNTY BOARD PURSUANT TO DIVISION (A)(4) OF                     

SECTION 5126.05 OF THE REVISED CODE, IF THE EMPLOYEE'S EMPLOYMENT  692          

IS BASED ON A SCHOOL YEAR AND THE EMPLOYEE IS NOT SUBJECT TO A     693          

CONTRACT WITH THE COUNTY BOARD THAT PROVIDES FOR DIVISION (A) OF   694          

THIS SECTION TO APPLY TO THE EMPLOYEE.                                          

      (J)  As used in this section:                                696          

                                                          18     

                                                                 
      (1)  "Full-time employee" means an employee whose regular    698          

hours of service for a county total forty hours per week, or who   699          

renders any other standard of service accepted as full-time by an  700          

office, department, or agency of county service.                   701          

      (2)  "Part-time employee" means an employee whose regular    703          

hours of service for a county total less than forty hours per      704          

week, or who renders any other standard of service accepted as     705          

part-time by an office, department, or agency of county service,   706          

and whose hours of county service total at least five hundred      707          

twenty hours annually.                                             708          

      (3)  "Management employee" has the same meaning as in        710          

section 5126.20 of the Revised Code.                               711          

      Sec. 715.013.  EXCEPT AS OTHERWISE EXPRESSLY AUTHORIZED BY   713          

THE REVISED CODE, NO MUNICIPAL CORPORATION SHALL LEVY A TAX THAT   714          

IS THE SAME AS OR SIMILAR TO A TAX LEVIED UNDER CHAPTER 3734.,     715          

3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309., 5707.,     716          

5725., 5727., 5728., 5729., 5731., 5735., 5737., 5739., 5741.,     717          

5743., OR 5749. OF THE REVISED CODE.                               718          

      THIS SECTION DOES NOT PROHIBIT A MUNICIPAL CORPORATION FROM  720          

LEVYING A TAX ON AMOUNTS RECEIVED FOR ADMISSION TO ANY PLACE.      721          

      Sec. 718.01.  (A)  As used in this chapter:                  730          

      (1)  "Internal Revenue Code" means the Internal Revenue      732          

Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.             733          

      (2)  "Schedule C" means internal revenue service schedule C  735          

filed by a taxpayer pursuant to the Internal Revenue Code.         736          

      (3)  "Form 2106" means internal revenue service form 2106    738          

filed by a taxpayer pursuant to the Internal Revenue Code.         739          

      (4)  "Intangible income" means income of any of the          741          

following types:  income yield, interest, dividends, or other      742          

income arising from the ownership, sale, exchange, or other        743          

disposition of intangible property including, but not limited to,  744          

investments, deposits, money, or credits as those terms are                     

defined in Chapter 5701. of the Revised Code.                      745          

      (B)  No municipal corporation with respect to that income    747          

                                                          19     

                                                                 
which it may tax shall tax such income at other than a uniform     748          

rate.                                                                           

      (C)  No municipal corporation shall levy a tax on income at  750          

a rate in excess of one per cent without having obtained the       751          

approval of the excess by a majority of the electors of the        752          

municipality voting on the question at a general, primary, or      753          

special election.  The legislative authority of the municipal      754          

corporation shall file with the board of elections at least                     

seventy-five days before the day of the election a copy of the     755          

ordinance together with a resolution specifying the date the       756          

election is to be held and directing the board of elections to     757          

conduct the election.  The ballot shall be in the following form:  758          

"Shall the Ordinance providing for a ... per cent levy on income   759          

for (Brief description of the purpose of the proposed levy) be                  

passed?                                                            760          

      FOR THE INCOME TAX                                           762          

      AGAINST THE INCOME TAX"                                      764          

      In the event of an affirmative vote, the proceeds of the     766          

levy may be used only for the specified purpose.                   767          

      (D)(1)  Except as otherwise provided in division (D)(2) of   769          

this section, no municipal corporation shall exempt from a tax on  770          

income, compensation for personal services of individuals over     771          

eighteen years of age or the net profit from a business or         772          

profession.                                                                     

      (2)  The legislative authority of a municipal corporation    774          

may, by ordinance or resolution, exempt from a tax on income any   775          

compensation arising from the grant, sale, exchange, or other      776          

disposition of a stock option; the exercise of a stock option; or  777          

the sale, exchange, or other disposition of stock purchased under  778          

a stock option.                                                                 

      (E)  Nothing in this section shall prevent a municipal       780          

corporation from permitting lawful deductions as prescribed by     781          

ordinance.  If a taxpayer's taxable income includes income         782          

against which the taxpayer has taken a deduction for federal       783          

                                                          20     

                                                                 
income tax purposes as reportable on the taxpayer's form 2106,     784          

and against which a like deduction has not been allowed by the                  

municipal corporation, the municipal corporation shall deduct      785          

from the taxpayer's taxable income an amount equal to the          786          

deduction shown on such form allowable against such income, to     787          

the extent not otherwise so allowed as a deduction by the          788          

municipal corporation.  In the case of a taxpayer who has a net                 

profit from a business or profession that is operated as a sole    789          

proprietorship, no municipal corporation may tax or use as the     790          

base for determining the amount of the net profit that shall be    791          

considered as having a taxable situs in the municipal              792          

corporation, a greater amount than the net profit reported by the               

taxpayer on schedule C filed in reference to the year in question  793          

as taxable income from such sole proprietorship, except as         794          

otherwise specifically provided by ordinance or regulation.        795          

      (F)  No municipal corporation shall tax any of the           797          

following:                                                                      

      (1)  The military pay or allowances of members of the armed  799          

forces of the United States and of members of their reserve        800          

components, including the Ohio national guard;                     801          

      (2)  The income of religious, fraternal, charitable,         803          

scientific, literary, or educational institutions to the extent    804          

that such income is derived from tax-exempt real estate,           805          

tax-exempt tangible or intangible property, or tax-exempt          806          

activities;                                                                     

      (3)  Except as otherwise provided in division (G) of this    808          

section, intangible income;                                        809          

      (4)  Compensation paid under section 3501.28 or 3501.36 of   811          

the Revised Code to a person serving as a precinct election        812          

official, to the extent that such compensation does not exceed     813          

one thousand dollars annually.  Such compensation in excess of     814          

one thousand dollars may be subjected to taxation by a municipal                

corporation.  A municipal corporation shall not require the payer  815          

of such compensation to withhold any tax from that compensation.   816          

                                                          21     

                                                                 
      (5)  Compensation paid to an employee of a transit           818          

authority, regional transit authority, or regional transit         819          

commission created under Chapter 306. of the Revised Code for      820          

operating a transit bus or other motor vehicle for the authority   821          

or commission in or through the municipal corporation, unless the               

bus or vehicle is operated on a regularly scheduled route, the     822          

operator is subject to such a tax by reason of residence or        823          

domicile in the municipal corporation, or the headquarters of the  824          

authority or commission is located within the municipal            825          

corporation.                                                                    

      (6)  THE INCOME OF A PUBLIC UTILITY WHEN THAT PUBLIC         827          

UTILITY IS SUBJECT TO THE TAX LEVIED UNDER SECTION 5727.30 OF THE  828          

REVISED CODE.                                                      829          

      (G)  Any municipal corporation that taxes any type of        831          

intangible income on March 29, 1988, pursuant to Section 3 of      832          

Amended Substitute Senate Bill No. 238 of the 116th general        833          

assembly, may continue to tax that type of income after 1988 if a  834          

majority of the electors of the municipal corporation voting on    835          

the question of whether to permit the taxation of that type of                  

intangible income after 1988 vote in favor thereof at an election  836          

held on November 8, 1988.                                          837          

      (H)  Nothing in this section or section 718.02 of the        839          

Revised Code, shall authorize the levy of any tax on income which  840          

a municipal corporation is not authorized to levy under existing   841          

laws or shall require a municipal corporation to allow a           842          

deduction from taxable income for losses incurred from a sole      843          

proprietorship or partnership.                                                  

      Sec. 3313.646.  (A)  The board of education of a school      852          

district, except a cooperative education district established      853          

pursuant to section 3311.521 of the Revised Code, may establish    854          

and operate a preschool program except that no such program shall  855          

be established after March 17, 1989, unless both of the following  856          

apply at the time the program is established:                      857          

      (1)  The board has demonstrated a need for the program.      859          

                                                          22     

                                                                 
      (2)  Unless it is a cooperative education district           861          

established pursuant to divisions (A) to (C) of section 3311.52    862          

of the Revised Code, the school district is eligible for moneys    863          

distributed by the department of education pursuant to section     864          

3317.029 of the Revised Code.  A board may use school funds in     867          

support of preschool programs.  The board shall maintain,          868          

operate, and admit children to any such program pursuant to rules  869          

adopted by such board and the rules of the state board of          870          

education adopted under sections 3301.52 to 3301.57 of the         871          

Revised Code.                                                                   

      A board of education may establish fees or tuition, which    873          

may be graduated in proportion to family income, for               874          

participation in a preschool program.  In cases where payment of   875          

fees or tuition would create a hardship for the child's parent or  876          

guardian, the board may waive any such fees or tuition.            877          

      (B)  No board of education that is not receiving funds       879          

under the "Head Start Act," 95 Stat. 489 (1981), 42 U.S.C.A.       880          

9831, on March 17, 1989, shall compete for funds under the "Head   881          

Start Act" with any grantee receiving funds under that act.        882          

      (C)  A board of education may contract with any of the       884          

following preschool providers to provide preschool programs,       885          

other than programs for units described by division (E) DIVISIONS  886          

(B) AND (C) of section 3317.05 of the Revised Code, for children   888          

of the school district:                                            889          

      (1)  Any organization receiving funds under the "Head Start  891          

Act";                                                              892          

      (2)  Any nonsectarian eligible nonpublic school as defined   894          

in division (H) of section 3301.52 of the Revised Code;            895          

      (3)  Any child day-care provider licensed under Chapter      897          

5104. of the Revised Code.                                         898          

      Boards may contract to provide preschool programs only with  900          

such organizations whose staff meet the requirements of rules      901          

adopted under section 3301.53 of the Revised Code or those of the  902          

child development associate credential established by the          903          

                                                          23     

                                                                 
national association for the education of young children.          904          

      (D)  A contract entered into under division (C) of this      906          

section may provide for the board of education to lease school     907          

facilities to the preschool provider or to furnish                 908          

transportation, utilities, or staff for the preschool program.     909          

      (E)  The treasurer of any board of education operating a     911          

preschool program pursuant to this section shall keep an account   912          

of all funds used to operate the program in the same manner as he  913          

would any other funds of the district pursuant to this chapter.    914          

      Sec. 3313.841.  The boards of education and governing        923          

boards of two or more city, local, joint vocational, or exempted   924          

village school districts or educational service centers may        925          

contract in accordance with the terms of this section for the      927          

sharing on a cooperative basis of the services of supervisory      928          

teachers, special instruction teachers, special education          929          

teachers, and other licensed personnel necessary to conduct        930          

approved cooperative classes of the type described in division     931          

(B) of section 3317.05 of the Revised Code for handicapped pupils  933          

FOR SPECIAL EDUCATION AND RELATED SERVICES AND GIFTED EDUCATION.   934          

      The boards of two or more districts or service centers       936          

desiring to enroll students in such classes shall each adopt       937          

resolutions indicating such desire and designating one of the      938          

participating districts or service centers as the funding agent    939          

for purposes of this section.  The district or service center      941          

designated as the funding agent shall enter into an employment     942          

contract with each licensed teacher whose services are to be       944          

shared among the participating districts and service centers.  In               

turn, the funding agent shall enter into contracts with each of    945          

the districts and service centers which have adopted resolutions   946          

agreeing to participate in the cooperative program upon terms      948          

agreed to by all parties to such contract.  Such contracts         949          

between districts and service centers shall set forth the          950          

services to be provided by the licensed teacher employed by the    951          

funding agent whose services are to be shared by the                            

                                                          24     

                                                                 
participating districts and service centers and the basis for      952          

computing the amounts to be paid for such services to the funding  953          

agent by the participating districts and service centers.          954          

      For purposes of division (B) of section 3317.05 of the       958          

Revised Code, the funding agent shall count all pupils enrolled    959          

in cooperative programs for handicapped pupils as pupils enrolled  960          

in such programs in the funding agent district.  Upon receipt of   961          

payment for such programs, the funding agent district shall        962          

credit the account of districts participating in the cooperative   963          

program for the amounts due under contracts entered into under     964          

the terms of this section in proportion to the number of resident  965          

students enrolled in the cooperative program from each             966          

participating district and service center.                                      

      In determining the terms of the contract entered into by     968          

the funding agent district or service center and the               969          

participating districts and service centers, the superintendent    971          

of schools of each participating board of education and governing  972          

board shall serve as a committee which shall recommend such terms  973          

to such boards.                                                                 

      Sec. 3313.842.  The boards of education of any two or more   982          

school districts may enter into an agreement for joint or          983          

cooperative establishment and operation of any educational         984          

program including any class, course, or program that may be        985          

included in a school district's graded course of study and staff   986          

development programs for teaching and nonteaching school           987          

employees.  Each school district that is party to such an          988          

agreement may contribute funds of the district in support of the   989          

agreement and for the establishment and operation of any           990          

educational program established under the agreement.  The          991          

agreement shall designate one of the districts as the district     992          

responsible for receiving and disbursing the funds contributed by  993          

the districts that are parties to the agreement.                   994          

      A student participating in an educational program            996          

established pursuant to this section shall be included in the      997          

                                                          25     

                                                                 
formula ADM certified under section 3317.03 of the Revised Code    1,000        

of the district in which the student is enrolled.                  1,001        

      Sec. 3313.975.   As used in this section and in sections     1,010        

3313.975 to 3313.979 of the Revised Code, "the pilot project       1,011        

school district" or "the district" means any school district       1,013        

included in the pilot project scholarship program pursuant to      1,014        

this section.                                                                   

      (A)  The superintendent of public instruction shall          1,017        

establish a pilot project scholarship program and shall include    1,019        

in such program any school districts that are or have ever been    1,021        

under federal court order requiring supervision and operational    1,025        

management of the district by the state superintendent.  The                    

program shall provide for a number of students residing in any     1,027        

such district to receive scholarships to attend alternative        1,028        

schools, and for an equal number of students to receive tutorial   1,029        

assistance grants while attending public school in any such        1,030        

district.                                                                       

      (B)  The state superintendent shall establish an             1,032        

application process and deadline for accepting applications from   1,034        

students residing in the district to participate in the            1,035        

scholarship program.  In the initial year of the program students  1,036        

may only use a scholarship to attend school in grades              1,037        

kindergarten through third.                                                     

      The state superintendent shall award as many scholarships    1,039        

and tutorial assistance grants as can be funded given the amount   1,040        

appropriated for the program.  In no case, however, shall more     1,041        

than fifty per cent of all scholarships awarded be used by         1,042        

students who were enrolled in a nonpublic school during the        1,043        

school year of application for a scholarship.                      1,044        

      (C)(1)  The pilot project program shall continue in effect   1,048        

each year that the general assembly has appropriated sufficient    1,049        

money to fund scholarships and tutorial assistance grants.  In     1,050        

each year the program continues, no new students may receive       1,051        

scholarships unless they are enrolled in grade kindergarten, one,  1,052        

                                                          26     

                                                                 
two, or three.  However, any student who has received a            1,053        

scholarship the preceding year may continue to receive one until   1,054        

the student has completed grade eight.                                          

      (2)  If the general assembly discontinues the scholarship    1,056        

program, all students who are attending an alternative school      1,057        

under the pilot project shall be entitled to continued admittance  1,059        

to that specific school through all grades up to the eighth grade  1,060        

that are provided in such school, under the same conditions as     1,063        

when they were participating in the pilot project.  The state      1,064        

superintendent shall continue to make scholarship payments in                   

accordance with division (A) or (B) of section 3313.979 of the     1,066        

Revised Code for students who remain enrolled in an alternative    1,068        

school under this provision in any year that funds have been       1,070        

appropriated for this purpose.                                                  

      If funds are not appropriated, the tuition charged to the    1,072        

parents of a student who remains enrolled in an alternative        1,075        

school under this provision shall not be increased beyond the      1,076        

amount equal to the amount of the scholarship plus any additional  1,078        

amount charged that student's parent in the most recent year of    1,079        

attendance as a participant in the pilot project, except that      1,080        

tuition for all the students enrolled in such school may be        1,081        

increased by the same percentage.                                  1,082        

      (D)  Notwithstanding sections 124.39, 3307.35, and 3319.17   1,085        

of the Revised Code, if the pilot project school district          1,086        

experiences a decrease in enrollment due to participation in a     1,087        

state-sponsored scholarship program pursuant to sections 3313.974  1,088        

to 3313.979 of the Revised Code, the district board of education   1,090        

may enter into an agreement with any teacher it employs to         1,092        

provide to that teacher severance pay or early retirement          1,093        

incentives, or both, if the teacher agrees to terminate the        1,094        

employment contract with the district board, provided any          1,095        

collective bargaining agreement in force pursuant to Chapter       1,096        

4117. of the Revised Code does not prohibit such an agreement for  1,099        

termination of a teacher's employment contract.                                 

                                                          27     

                                                                 
      (E)  The state superintendent shall make a grant to the      1,101        

pilot project school district sufficient to defray one hundred     1,103        

per cent of the additional costs to the district of providing      1,105        

transportation to and from the alternative school for all          1,107        

students utilizing a scholarship to attend an alternative school.  1,108        

      Sec. 3313.98.  Notwithstanding division (D) of section       1,117        

3311.19 and division (D) of section 3311.52 of the Revised Code,   1,118        

the provisions of this section and sections 3313.981 to 3313.983   1,119        

of the Revised Code that apply to a city school district do not    1,120        

apply to a joint vocational or cooperative education school        1,121        

district unless expressly specified.                               1,122        

      (A)  As used in this section and sections 3313.981 to        1,124        

3313.983 of the Revised Code:                                      1,125        

      (1)  "Parent" means either of the natural or adoptive        1,127        

parents of a student, except under the following conditions:       1,128        

      (a)  When the marriage of the natural or adoptive parents    1,130        

of the student has been terminated by a divorce, dissolution of    1,131        

marriage, or annulment or the natural or adoptive parents of the   1,132        

student are living separate and apart under a legal separation     1,133        

decree and the court has issued an order allocating the parental   1,134        

rights and responsibilities with respect to the student, "parent"  1,135        

means the residential parent as designated by the court except     1,136        

that "parent" means either parent when the court issues a shared   1,137        

parenting decree.                                                  1,138        

      (b)  When a court has granted temporary or permanent         1,140        

custody of the student to an individual or agency other than       1,141        

either of the natural or adoptive parents of the student,          1,142        

"parent" means the legal custodian of the child.                   1,143        

      (c)  When a court has appointed a guardian for the student,  1,145        

"parent" means the guardian of the student.                        1,146        

      (2)  "Native student" means a student entitled under         1,148        

section 3313.64 or 3313.65 of the Revised Code to attend school    1,149        

in a district adopting a resolution under this section.            1,150        

      (3)  "Adjacent district" means a city, exempted village, or  1,153        

                                                          28     

                                                                 
local school district having territory that abuts the territory    1,154        

of a district adopting a resolution under this section.                         

      (4)  "Adjacent district student" means a student entitled    1,156        

under section 3313.64 or 3313.65 of the Revised Code to attend     1,157        

school in an adjacent district.                                    1,158        

      (5)  "Adjacent district joint vocational student" means an   1,162        

adjacent district student who enrolls in a city, exempted          1,164        

village, or local school district pursuant to this section and     1,165        

who also enrolls in a joint vocational school district that does   1,166        

not contain the territory of the district for which that student   1,167        

is a native student and does contain the territory of the city,    1,168        

exempted village, or local district in which the student enrolls.  1,169        

      (6)  "Adjusted formula amount" means the formula amount      1,172        

defined in division (B) of section 3317.02 of the Revised Code     1,173        

multiplied by the cost-of-doing-business factor for a district     1,176        

defined in division (N) of section 3317.02 of the Revised Code.    1,177        

      (7)  "Poverty line" means the poverty line established by    1,179        

the director of the United States office of management and budget  1,180        

as revised by the director of the office of community services in  1,181        

accordance with section 673(2) of the "Community Services Block    1,182        

Grant Act," 95 Stat. 1609, 42 U.S.C.A. 9902, as amended.           1,183        

      (8)  "IEP" means an individualized education program         1,185        

defined by division (E) of section 3323.01 of the Revised Code.    1,186        

      (9)  "Other district" means a city, exempted village, or     1,189        

local school district having territory outside of the territory    1,190        

of a district adopting a resolution under this section.            1,191        

      (10)  "Other district student" means a student entitled      1,193        

under section 3313.64 or 3313.65 of the Revised Code to attend     1,196        

school in an other district.                                       1,197        

      (11)  "Other district joint vocational student" means a      1,199        

student who is enrolled in any city, exempted village, or local    1,200        

school district and who also enrolls in a joint vocational school  1,202        

district that does not contain the territory of the district for   1,203        

which that student is a native student in accordance with a        1,204        

                                                          29     

                                                                 
policy adopted under section 3313.983 of the Revised Code.         1,205        

      (B)(1)  The board of education of each city, local, and      1,207        

exempted village school district may SHALL adopt a resolution      1,208        

ESTABLISHING FOR THE SCHOOL DISTRICT ONE OF THE FOLLOWING          1,209        

POLICIES:                                                                       

      (a)  A POLICY that entirely prohibits the enrollment of      1,212        

students from adjacent districts or other districts, other than    1,213        

students for whom tuition is paid in accordance with section       1,215        

3317.08 of the Revised Code,;                                                   

      (b)  A POLICY that permits enrollment of students from all   1,218        

adjacent districts in accordance with a policy STATEMENTS          1,219        

contained in the resolution, or;                                   1,221        

      (c)  A POLICY that permits enrollment of students from all   1,224        

other districts in accordance with a policy STATEMENTS contained   1,225        

in the resolution.                                                              

      (2)  A policy permitting enrollment of students from         1,227        

adjacent or from other districts, as applicable, shall provide     1,229        

for all of the following:                                          1,230        

      (1)(a)  Application procedures, including deadlines for      1,232        

application and for notification of students and the               1,233        

superintendent of the applicable district whenever an adjacent or  1,235        

other district student's application is approved.                  1,237        

      (2)(b)  Procedures for admitting adjacent or other district  1,239        

applicants free of any tuition obligation to the district's        1,241        

schools, including, but not limited to:                            1,242        

      (a)(i)  The establishment of district capacity limits by     1,244        

grade level, school building, and education program;               1,245        

      (b)(ii)  A requirement that all native students wishing to   1,247        

be enrolled in the district will be enrolled and that any          1,248        

adjacent or other district students previously enrolled in the     1,250        

district shall receive preference over first-time applicants;      1,251        

      (c)(iii)  Procedures to ensure that an appropriate racial    1,253        

balance is maintained in the district schools.                     1,254        

      (C)  Except as provided in section 3313.982 of the Revised   1,256        

                                                          30     

                                                                 
Code, the procedures for admitting adjacent or other district      1,257        

students, as applicable, shall not include:                        1,258        

      (1)  Any requirement of academic ability, or any level of    1,260        

athletic, artistic, or other extracurricular skills;               1,261        

      (2)  Limitations on admitting applicants because of          1,263        

handicapping conditions, except that a board may refuse to admit   1,264        

a student receiving services under Chapter 3323. of the Revised    1,266        

Code, if the services described in the student's IEP are not       1,267        

available in the district's schools;                                            

      (3)  A requirement that the student be proficient in the     1,269        

English language;                                                  1,270        

      (4)  Rejection of any applicant because the student has      1,272        

been subject to disciplinary proceedings, except that if an        1,273        

applicant has been suspended or expelled by the student's          1,275        

district for ten consecutive days or more in the term for which    1,276        

admission is sought or in the term immediately preceding the term  1,277        

for which admission is sought, the procedures may include a        1,278        

provision denying admission of such applicant.                     1,279        

      (D)(1)  Each school board permitting only enrollment of      1,281        

adjacent district students shall provide information about the     1,282        

policy adopted under this section, including the application       1,283        

procedures and deadlines, to the superintendent and the board of   1,284        

education of each adjacent district and, upon request, to the      1,285        

parent of any adjacent district student.                           1,286        

      (2)  Each school board permitting enrollment of other        1,288        

district students shall provide information about the policy       1,289        

adopted under this section, including the application procedures   1,290        

and deadlines, upon request, to the board of education of any      1,291        

other school district or to the parent of any student anywhere in  1,293        

the state.                                                                      

      (E)  Any school board shall accept all credits toward        1,295        

graduation earned in adjacent or other district schools by an      1,296        

adjacent or other district student or a native student.            1,297        

      (F)(1)  No board of education may adopt a policy             1,299        

                                                          31     

                                                                 
discouraging or prohibiting its native students from applying to   1,300        

enroll in the schools of an adjacent or any other district that    1,301        

has adopted a policy permitting such enrollment, except that:      1,302        

      (a)  A district may object to the enrollment of a native     1,304        

student in an adjacent or other district in order to maintain an   1,305        

appropriate racial balance.                                        1,306        

      (b)  The board of education of a district receiving funds    1,308        

under 64 Stat. 1100 (1950), 20 U.S.C.A. 236 et seq., as amended,   1,309        

may adopt a resolution objecting to the enrollment of its native   1,310        

students in adjacent or other districts if at least ten per cent   1,311        

of its students are included in the determination of the United    1,312        

States secretary of education made under section 20 U.S.C.A.       1,313        

238(a).                                                                         

      (2)  If a board objects to enrollment of native students     1,315        

under this division, any adjacent or other district shall refuse   1,316        

to enroll such native students unless tuition is paid for the      1,318        

students in accordance with section 3317.08 of the Revised Code.   1,319        

An adjacent or other district enrolling such students may not      1,320        

receive funding for those students in accordance with section      1,321        

3313.981 of the Revised Code.                                      1,322        

      (G)  The state board of education shall monitor school       1,324        

districts to ensure compliance with this section and the           1,325        

districts' policies.  The board may adopt rules requiring uniform  1,326        

application procedures, deadlines for application, notification    1,327        

procedures, and record-keeping requirements for all school boards  1,328        

that adopt policies permitting the enrollment of adjacent or       1,329        

other district students, as applicable.  If the state board        1,331        

adopts such rules, no school board shall adopt a policy that       1,332        

conflicts with those rules.                                        1,333        

      (H)  A resolution adopted by a board of education under      1,335        

this section that entirely prohibits the enrollment of students    1,336        

from adjacent and from other school districts does not abrogate    1,337        

any agreement entered into under section 3313.841 or 3313.92 of    1,339        

the Revised Code or any contract entered into under section        1,340        

                                                          32     

                                                                 
3313.90 of the Revised Code between the board of education         1,341        

adopting the resolution and the board of education of any          1,342        

adjacent or other district or prohibit these boards of education   1,344        

from entering into any such agreement or contract.                 1,345        

      (I)  Nothing in this section shall be construed to permit    1,347        

or require the board of education of a city, exempted village, or  1,348        

local school district to exclude any native student of the         1,349        

district from enrolling in the district.                           1,350        

      Sec. 3314.02.  (A)  As used in this chapter:                 1,359        

      (1)  "Sponsor" means a city, local, exempted village, or     1,361        

joint vocational board of education, THE GOVERNING BOARD OF AN     1,362        

EDUCATIONAL SERVICE CENTER IN THE CASE OF A SCHOOL ESTABLISHED     1,363        

PURSUANT TO DIVISION (C)(2) OF THIS SECTION, or the state board    1,364        

of education with which the governing authority of the proposed    1,367        

community school enters into a contract pursuant to this section.               

      (2)  "Pilot project district" means a school district        1,369        

included in the territory of a community school pilot project      1,370        

established by Section 50.52 of Am. Sub. H.B. No. 215 of the       1,372        

122nd general assembly.                                                         

      (3)  "Big eight school district" means a school district     1,375        

that for fiscal year 1997 had both of the following:               1,376        

      (a)  A percentage of children residing in the district and   1,379        

participating in the predecessor of Ohio works first greater than  1,380        

thirty per cent, as reported pursuant to section 3317.10 of the    1,381        

Revised Code;                                                      1,383        

      (b)  An average daily membership greater than twelve         1,386        

thousand, as reported pursuant to former division (A) of section   1,387        

3317.03 of the Revised Code.                                       1,388        

      (4)  "New start-up school" means a community school other    1,390        

than one created by converting all or part of an existing public   1,391        

school, as designated in the school's contract pursuant to         1,392        

division (A)(17) of section 3314.03 of the Revised Code.           1,393        

      (B)  Any person or group of individuals may initially        1,396        

propose under this division the conversion of all or a portion of  1,397        

                                                          33     

                                                                 
a public school to a community school.  The proposal shall be      1,398        

made to the board of education of a city, local, or exempted       1,400        

village school district, other than a pilot project district, in                

which the public school is proposed to be converted.  Upon         1,401        

receipt of a proposal, a board may enter into a preliminary        1,402        

agreement with the person or group proposing the conversion of     1,403        

the public school, indicating the intention of the board of        1,404        

education to support the conversion to a community school.  A      1,405        

proposing person or group that has a preliminary agreement under   1,407        

this division may proceed to finalize plans for the school,                     

establish a governing authority for the school, and negotiate a    1,408        

contract with the board of education.  Provided the proposing      1,409        

person or group adheres to the preliminary agreement and all       1,410        

provisions of this chapter, the board of education shall           1,411        

negotiate in good faith to enter into a contract in accordance                  

with section 3314.03 of the Revised Code and division (C) of this  1,412        

section.                                                                        

      (C)(1)  Any person or group of individuals may propose       1,415        

under this division the establishment of a new start-up school to  1,416        

be located in a big eight school district other than a pilot       1,417        

project district.  Such proposal may be made to any of the         1,419        

following public entities:                                         1,420        

      (a)  The board of education of the big eight school          1,423        

district in which the school is proposed to be located;                         

      (b)  The board of education of any joint vocational school   1,426        

district with territory in the county in which the majority of     1,427        

the territory of that big eight district is located;                            

      (c)  The board of education of any other city, local, or     1,430        

exempted village school district having territory in the same      1,431        

county in which that big eight district has the major portion of   1,432        

its territory;                                                                  

      (d)  The state board of education.                           1,434        

      Such big eight district board, joint vocational board,       1,436        

other school district board, or state board may enter into a       1,438        

                                                          34     

                                                                 
preliminary agreement pursuant to division (C)(2) of this section  1,439        

with the proposing person or group.                                1,440        

      (2)  ANY PERSON OR GROUP OF INDIVIDUALS MAY PROPOSE TO THE   1,442        

EDUCATIONAL SERVICE CENTER SERVING THE MAJORITY OF SCHOOL          1,443        

DISTRICTS WITH TERRITORY IN LORAIN COUNTY THE ESTABLISHMENT OF A   1,444        

NEW START UP SCHOOL TO BE HOUSED AT THE LORAIN COUNTY COMMUNITY    1,445        

COLLEGE.                                                                        

      (3)  A preliminary agreement indicates the intention of a    1,448        

public entity described in division (C)(1) of this section to      1,450        

sponsor the community school.  A proposing person or group that    1,451        

has such a preliminary agreement may proceed to finalize plans     1,452        

for the school, establish a governing authority for the school,    1,453        

and negotiate a contract with the public entity.  Provided the                  

proposing person or group adheres to the preliminary agreement     1,455        

and all provisions of this chapter, the public entity shall        1,456        

negotiate in good faith to enter into a contract in accordance     1,457        

with section 3314.03 of the Revised Code.                          1,458        

      (D)  A majority vote of a sponsoring school district board   1,460        

and a majority vote of the members of the governing authority of   1,461        

a community school shall be required to adopt a contract and       1,462        

convert the public school to a community school or establish the   1,463        

new start-up school.  An unlimited number of community schools     1,465        

may be established PURSUANT TO DIVISION (B) OR (C)(1) OF THIS      1,467        

SECTION in any school district provided that a contract is         1,468        

entered into for each community school pursuant to this chapter.   1,469        

      Sec. 3314.03.  (A)  Each contract entered into under         1,478        

section 3314.02 of the Revised Code between a sponsor and the      1,479        

governing authority of a community school shall specify the        1,480        

following:                                                                      

      (1)  That the school shall be established as a nonprofit     1,482        

corporation established under Chapter 1702. of the Revised Code;   1,483        

      (2)  The education program of the school, including the      1,485        

school's mission, the characteristics of the students the school   1,486        

is expected to attract, the ages and grades of students, and the   1,487        

                                                          35     

                                                                 
focus of the curriculum;                                           1,488        

      (3)  The academic goals to be achieved and the method of     1,490        

measurement that will be used to determine progress toward those   1,491        

goals, which shall include the statewide proficiency tests;        1,492        

      (4)  Performance standards by which the success of the       1,494        

school will be evaluated by the sponsor;                           1,495        

      (5)  The admission standards of section 3314.06 of the       1,497        

Revised Code;                                                      1,498        

      (6)  Dismissal procedures;                                   1,500        

      (7)  The ways by which the school will achieve racial and    1,502        

ethnic balance reflective of the community it serves;              1,503        

      (8)  Requirements and procedures for program and financial   1,506        

audits, including audits by the auditor of state and the                        

department of education.  The contract shall require financial     1,507        

records of the school to be maintained in the same manner as are   1,509        

financial records of school districts, pursuant to rules of the    1,510        

auditor of state AND THE AUDITS SHALL BE CONDUCTED IN ACCORDANCE   1,511        

WITH SECTION 117.10 OF THE REVISED CODE.                                        

      (9)  The facility to be used and its location;               1,513        

      (10)  Qualifications of teachers, including a requirement    1,515        

that the school's classroom teachers be licensed in accordance     1,516        

with sections 3319.22 to 3319.31 of the Revised Code, except that  1,517        

a community school may engage noncertificated persons to teach up  1,519        

to twelve hours per week pursuant to section 3319.301 of the       1,520        

Revised Code;                                                                   

      (11)  That the school will comply with the following         1,522        

requirements:                                                      1,523        

      (a)  The school will provide learning opportunities to a     1,525        

minimum of twenty-five students for a minimum of nine hundred      1,527        

twenty hours per school year;                                                   

      (b)  The governing authority will purchase liability         1,530        

insurance, or otherwise provide for the potential liability of     1,531        

the school;                                                                     

      (c)  The school will be nonsectarian in its programs,        1,534        

                                                          36     

                                                                 
admission policies, employment practices, and all other            1,535        

operations, and will not be operated by a sectarian school or      1,536        

religious institution;                                                          

      (d)  The school will comply with sections 9.90, 9.91,        1,538        

109.65, 121.22, 149.43, 2151.358, 2151.421, 2313.18, 3301.0710,    1,540        

3301.0711, 3301.0714, 3313.50, 3313.643, 3313.66, 3313.661,        1,541        

3313.662, 3313.67, 3313.672, 3313.673, 3313.69, 3313.71, 3313.80,  1,542        

3313.96, 3319.321, 3319.39, 3321.01, 3327.10, 4111.17, and         1,543        

4113.52 and Chapters 117., 1347., 2744., 4112., 4123., 4141., and  1,544        

4167. of the Revised Code as if it were a school district;         1,545        

      (e)  The school shall comply with Chapter 102. of the        1,547        

Revised Code except that nothing in that chapter shall prohibit a  1,548        

member of the school's governing board from also being an          1,549        

employee of the school and nothing in that chapter or section      1,550        

2921.42 of the Revised Code shall prohibit a member of the         1,551        

school's governing board from having an interest in a contract     1,552        

into which the governing board enters;                             1,553        

      (f)  The school will comply with sections 3313.61 and        1,555        

3313.611 of the Revised Code, except that the requirement in       1,557        

those sections that a person must successfully complete the        1,558        

curriculum in any high school prior to receiving a high school     1,559        

diploma may be met by completing the curriculum adopted by the                  

governing authority of the community school rather than the        1,561        

curriculum specified in Title XXXIII of the Revised Code or any    1,562        

rules of the state board of education;                                          

      (g)  The school governing authority will submit an annual    1,564        

report of its activities and progress in meeting the goals and     1,565        

standards of divisions (A)(3) and (4) of this section and its      1,566        

financial status to the sponsor and to, the parents of all         1,567        

students enrolled in the school, AND THE LEGISLATIVE OFFICE OF     1,568        

EDUCATION OVERSIGHT.                                                            

      (12)  Arrangements for providing health and other benefits   1,570        

to employees;                                                      1,571        

      (13)  The length of the contract, which shall begin at the   1,573        

                                                          37     

                                                                 
beginning of an academic year and shall not exceed three FIVE      1,574        

years;                                                                          

      (14)  The governing authority of the school, which shall be  1,576        

responsible for carrying out the provisions of the contract;       1,577        

      (15)  A financial plan detailing an estimated school budget  1,579        

for each year of the period of the contract and specifying the     1,581        

total estimated per pupil expenditure amount for each such year.   1,582        

The plan shall specify for each year the base formula amount that  1,584        

will be used for purposes of funding calculations under section                 

3314.08 of the Revised Code.  This base formula amount for any     1,585        

year shall not exceed the formula amount defined under section     1,587        

3317.02 of the Revised Code.  The plan may also specify for any    1,589        

year a percentage figure to be used for reducing the per pupil                  

amount of disadvantaged pupil impact aid calculated pursuant to    1,591        

section 3317.029 of the Revised Code the school is to receive      1,593        

that year under section 3314.08 of the Revised Code.               1,594        

      (16)  Requirements and procedures regarding the disposition  1,596        

of employees of the school in the event the contract is            1,597        

terminated or not renewed pursuant to section 3314.07 of the       1,598        

Revised Code;                                                                   

      (17)  Whether the school is to be created by converting all  1,601        

or part of an existing public school or is to be a new start-up                 

school, and if it is a converted public school, specification of   1,602        

any duties or responsibilities of an employer that the board of    1,603        

education that operated the school before conversion is            1,604        

delegating to the governing board of the community school with     1,605        

respect to all or any specified group of employees provided the                 

delegation is not prohibited by a collective bargaining agreement  1,606        

applicable to such employees;                                      1,607        

      (18)  Provisions establishing procedures for resolving       1,609        

disputes or differences of opinion between the sponsor and the     1,610        

governing authority of the community school.                       1,611        

      (B)  The community school shall also submit to the sponsor   1,613        

a comprehensive plan for the school.  The plan shall specify the   1,615        

                                                          38     

                                                                 
following:                                                                      

      (1)  The process by which the governing authority of the     1,617        

school will be selected in the future;                             1,618        

      (2)  The management and administration of the school;        1,620        

      (3)  If the community school is a currently existing public  1,623        

school, alternative arrangements for current public school         1,624        

students who choose not to attend the school and teachers who      1,625        

choose not to teach in the school after conversion;                1,626        

      (4)  The instructional program and educational philosophy    1,628        

of the school;                                                     1,629        

      (5)  Internal financial controls.                            1,631        

      (C)  A contract entered into under section 3314.02 of the    1,634        

Revised Code between a sponsor and the governing authority of a    1,636        

community school may provide for the community school governing                 

authority to make payments to the sponsor, which is hereby         1,637        

authorized to receive such payments as set forth in the contract   1,638        

between the governing authority and the sponsor.                   1,639        

      Sec. 3314.06.  The governing authority of each community     1,648        

school established under this chapter shall adopt admission        1,649        

procedures that specify the following:                             1,650        

      (A)(1)  That except as otherwise provided in this section,   1,652        

admission to the school shall be open only to any individual age   1,654        

five to twenty-two entitled to attend school pursuant to section   1,656        

3313.64 or 3313.65 of the Revised Code in the school district in   1,657        

which the school is located or who was enrolled in the converted   1,658        

school during the school year preceding the year of its                         

conversion to a community school.                                  1,659        

      (2)  NOTWITHSTANDING DIVISION (A)(1) OF THIS SECTION,        1,661        

ADMISSION TO ANY SCHOOL ESTABLISHED PURSUANT TO DIVISION (C)(2)    1,662        

OF SECTION 3314.02 OF THE REVISED CODE SHALL BE OPEN TO ANY        1,663        

INDIVIDUAL ELIGIBLE PURSUANT TO SECTION 3313.64 OR 3314.65 OF THE  1,664        

REVISED CODE TO ATTEND SCHOOL IN ANY SCHOOL DISTRICT WITH          1,665        

TERRITORY IN LORAIN COUNTY.                                        1,666        

      (B)  That admission to the school may be limited to          1,668        

                                                          39     

                                                                 
students who have attained a specific grade level or are within a  1,670        

specific age group; to students that meet a definition of                       

"at-risk," as defined in the contract; or to residents of a        1,671        

specific geographic area, as defined in the contract, that is      1,672        

within the school district in which the school is located, OR IN   1,673        

THE CASE OF A SCHOOL ESTABLISHED PURSUANT TO DIVISION (C)(2) OF    1,674        

SECTION 3314.02 OF THE REVISED CODE IN A SCHOOL DISTRICT HAVING    1,675        

TERRITORY IN LORAIN COUNTY.                                        1,676        

      (C)  That there will be no discrimination in the admission   1,678        

of students to the school on the basis of race, creed, color,      1,679        

handicapping condition, or sex; and that, upon admission of any    1,681        

handicapped student, the community school will comply with all     1,682        

federal and state laws regarding the education of handicapped      1,683        

students.                                                                       

      (D)  That the school may not limit admission to students on  1,685        

the basis of intellectual ability, measures of achievement or      1,686        

aptitude, or athletic ability.                                     1,687        

      (E)  That the community school will admit the number of      1,689        

students that does not exceed the capacity of the school's         1,691        

programs, classes, grade levels, or facilities.                    1,692        

      (F)  That, except as otherwise provided under division (B)   1,695        

of this section, if the number of applicants exceeds the capacity               

restrictions of division (E) of this section, students shall be    1,697        

admitted by lot from all those submitting applications, except     1,698        

preference shall be given to students attending the school the     1,699        

previous year and may be given to siblings of such students.                    

      Notwithstanding divisions (A) through (F) of this section,   1,702        

in the event the racial composition of the enrollment of the                    

community school is violative of a federal desegregation order,    1,703        

the community school shall take any and all corrective measures    1,704        

to comply with the desegregation order.                            1,705        

      Sec. 3314.07.  (A)  The expiration of the contract for a     1,714        

community school between a sponsor and a school shall be the date  1,716        

provided in the contract.  A successor contract may be entered     1,717        

                                                          40     

                                                                 
into unless the contract is terminated or not renewed pursuant to               

this section.                                                      1,719        

      (B)(1)  A sponsor may choose not to renew a contract at its  1,721        

expiration or may choose to terminate a contract prior to its      1,722        

expiration for any of the following reasons:                       1,723        

      (a)  Failure to meet student performance requirements        1,726        

stated in the contract;                                                         

      (b)  Failure to meet generally accepted standards of fiscal  1,728        

management;                                                        1,729        

      (c)  Violation of any provision of the contract or           1,732        

applicable state or federal law;                                                

      (d)  Other good cause.                                       1,734        

      A termination shall be effective only at the conclusion of   1,736        

a school year.                                                     1,737        

      (2)  At least sixty ONE HUNDRED EIGHTY days prior to the     1,739        

termination or nonrenewal of a contract, the sponsor shall notify  1,740        

the school of the proposed action in writing.  The notice shall    1,741        

include the reasons for the proposed action in detail and that     1,742        

the school may, within fourteen days of receiving the notice,      1,743        

request an informal hearing before the sponsor.  Such request      1,744        

must be in writing.                                                1,745        

      (3)  A decision by the sponsor to terminate a contract may   1,747        

be appealed to the state board of education.  The decision by the  1,748        

state board pertaining to an appeal under this division is final.  1,750        

      (C)  A child attending a community school whose contract     1,752        

has been terminated or nonrenewed or that closes for any reason    1,754        

shall be admitted to the schools of the district in which the      1,755        

child is entitled to attend under section 3313.64 or 3313.65 of    1,756        

the Revised Code.  Any deadlines established for the purpose of    1,757        

admitting students under section 3313.97 or 3313.98 shall be       1,758        

waived for students to whom this division pertains.                1,759        

      (D)  A sponsor of a community school and the officers,       1,761        

directors, or employees of such a sponsor are not liable in        1,762        

damages in a tort or other civil action for harm allegedly         1,763        

                                                          41     

                                                                 
arising from either of the following:                                           

      (1)  A failure of the community school or any of its         1,765        

officers, directors, or employees to perform any statutory or      1,766        

common law duty or responsibility or any other legal obligation;   1,767        

      (2)  An action or omission of the community school or any    1,769        

of its officers, directors, or employees that results in harm.     1,770        

      (E)  As used in this section:                                1,772        

      (1)  "Harm" means injury, death, or loss to person or        1,774        

property.                                                                       

      (2)  "Tort action" means a civil action for damages for      1,776        

injury, death, or loss to person or property other than a civil    1,777        

action for damages for a breach of contract or another agreement   1,778        

between persons.                                                                

      Sec. 3314.08.  (A)  As used in this section:                 1,787        

      (1)  "Base formula amount" means the amount specified as     1,790        

such in a community school's financial plan for a school year      1,791        

pursuant to division (A)(15) of section 3314.03 of the Revised     1,792        

Code.                                                                           

      (2)  "Cost-of-doing-business factor" has the same meaning    1,795        

as in section 3317.02 of the Revised Code.                         1,796        

      (3)  "IEP" means an individualized education program         1,799        

defined by division (E) of section 3323.01 of the Revised Code.    1,800        

      (4)  "Actual AVERAGE COUNTY cost" means the actual cost,     1,803        

AVERAGED AMONG SCHOOL DISTRICTS WITHIN A COUNTY, of providing      1,804        

special education and related services to a special education      1,805        

student pursuant to an IEP in the school district where that       1,807        

student is entitled to attend school pursuant to section 3313.64   1,808        

or 3313.65 of the Revised Code SIMILARLY HANDICAPPED CHILDREN, as  1,809        

calculated in a manner acceptable to the superintendent of public  1,811        

instruction.                                                                    

      (5)  "DPIA reduction factor" means the percentage figure,    1,814        

if any, specified for reducing the per pupil amount of             1,815        

disadvantaged pupil impact aid a community school is entitled to   1,816        

receive pursuant to division (D)(3) of this section in any year,   1,818        

                                                          42     

                                                                 
as specified in the school's financial plan for the year pursuant  1,819        

to division (A)(15) of section 3314.03 of the Revised Code.        1,820        

      (B)  The state board of education shall adopt rules          1,822        

requiring both of the following:                                   1,823        

      (1)  The board of education of each city, exempted village,  1,825        

and local school district to annually report the number of         1,826        

students entitled to attend school in the district pursuant to     1,827        

section 3313.64 or 3313.65 of the Revised Code who are enrolled    1,828        

in grades one through twelve and one-half of the kindergarten      1,829        

students enrolled in a community school established under this     1,830        

chapter and for each child the community school in which the       1,831        

child is enrolled.  In addition, for each such child receiving     1,832        

special education and related services enrolled in grades                       

kindergarten through twelve or in a preschool handicapped unit in  1,833        

a community school pursuant to an IEP, the board shall report the  1,835        

actual AVERAGE COUNTY cost for such child and, if.  IF the         1,837        

district receives disadvantaged pupil impact aid pursuant to       1,840        

DIVISION (B) OR DIVISIONS (C) AND (E) OF section 3317.029 of the   1,842        

Revised Code, it ALSO shall report the amount received for each    1,844        

such child.                                                                     

      (2)  The governing authority of each community school        1,846        

established under this chapter to annually report the number of    1,847        

students enrolled in grades one through twelve and one-half the    1,848        

number of kindergarten students in the school who are not          1,850        

receiving special education and related services pursuant to an    1,851        

IEP; the number of enrolled students in grades one through twelve  1,853        

and one-half the number of kindergarten students who are           1,854        

receiving special education and related services pursuant to an    1,856        

IEP; the number of enrolled preschool handicapped students         1,857        

receiving special education services in a state-funded unit; the   1,858        

community school's base formula amount; and the city, exempted     1,860        

village, or local school district in which the school is located.  1,861        

Each governing authority shall also report any DPIA reduction      1,862        

factor that applies to a school year.                                           

                                                          43     

                                                                 
      (C)  From the payments made to a city, exempted village, or  1,864        

local school district under Chapter 3317. of the Revised Code      1,865        

and, if necessary, sections 321.14 and 323.156 of the Revised      1,868        

Code, the department of education shall annually subtract all of   1,869        

the following:                                                                  

      (1)  An amount equal to the sum of the amounts obtained      1,871        

when, for each community school where the district's students are  1,872        

enrolled, the number of the district's students reported under     1,873        

division (B)(2) of this section who are enrolled in grades one     1,874        

through twelve and one-half the number of kindergarten students    1,875        

in that community school and are not receiving special education   1,877        

and related services pursuant to an IEP is multiplied by the base  1,879        

formula amount of that community school as adjusted by the school  1,880        

district's cost-of-doing-business factor.                                       

      (2)  The sum of the actual AVERAGE COUNTY costs for all      1,882        

district students reported under division (B)(2) of this section   1,884        

who are to be receiving special education and related services     1,885        

pursuant to an IEP in their respective community schools, less     1,887        

the sum of the prorated share for each such student of any                      

amounts received from state preschool handicapped unit funding or  1,888        

from federal funds to provide special education and related        1,889        

services to students in the respective community schools.  This    1,890        

prorated share of state or federal funds received for each such    1,891        

student shall be determined on the basis of all such funds         1,892        

received by a community school for students receiving similar      1,893        

services, as calculated in a manner acceptable to the                           

superintendent of public instruction.                              1,894        

      (3)  An amount equal to the sum of the amounts obtained      1,896        

when, for each community school where the district's students are  1,897        

enrolled, the number of the district's students enrolled in that   1,898        

community school and residing in the district in a family          1,899        

participating in Ohio works first under Chapter 5107. of the       1,900        

Revised Code is multiplied by the per pupil amount of                           

disadvantaged pupil impact aid the school district receives that   1,902        

                                                          44     

                                                                 
year pursuant to DIVISION (B) OR DIVISIONS (C) AND (E) OF section  1,904        

3317.029 of the Revised Code, as adjusted by any DPIA reduction    1,906        

factor of that community school.                                                

      (D)  The department shall annually pay to a community        1,908        

school established under this chapter all of the following:        1,909        

      (1)  An amount equal to the sum of the amounts obtained      1,911        

when the number of students enrolled in grades one through twelve  1,912        

plus one-half of the kindergarten students in the school as        1,914        

reported under division (B)(2) of this section who are not         1,916        

receiving special education and related services pursuant to an    1,917        

IEP is multiplied by the community school's base formula amount,   1,918        

as adjusted by the cost-of-doing-business factor of the school                  

district in which the school is located;                           1,919        

      (2)  For each student enrolled in the school receiving       1,921        

special education and related services pursuant to an IEP, an      1,923        

amount equal to the actual AVERAGE COUNTY cost for such student,   1,924        

less a prorated share for the student of any amount received from  1,925        

state preschool handicapped unit funding or federal funds to       1,927        

provide special education and related services to students in the               

community school.  This prorated share shall be determined as      1,928        

described under division (C)(2) of this section.                   1,929        

      (3)  An amount equal to the number of students enrolled in   1,931        

the community school and residing in the school district in a      1,933        

family participating in Ohio works first is multiplied by the per  1,935        

pupil amount of disadvantaged pupil impact aid that school         1,937        

district receives that year pursuant to DIVISION (B) OR DIVISIONS  1,938        

(C) AND (E) OF section 3317.029 of the Revised Code, as adjusted   1,939        

by any DPIA reduction factor of the community school.              1,940        

      (E)  A community school may apply to the department of       1,943        

education for preschool handicapped or gifted unit funding the     1,944        

school would receive if it were a school district.  Upon request   1,945        

of its governing authority, a community school that received unit  1,947        

funding as a school district-operated school before it became a                 

community school shall retain any units awarded to it as a school  1,948        

                                                          45     

                                                                 
district-operated school provided the school continues to meet     1,949        

eligibility standards for the unit.                                1,950        

      A community school shall be considered a school district     1,952        

and its governing authority shall be considered a board of         1,953        

education for the purpose of applying to any state or federal      1,954        

agency for grants that a school district may receive under         1,955        

federal or state law or any appropriations act of the general      1,956        

assembly.  The governing authority of a community school may       1,957        

apply to any private entity for additional funds.                  1,958        

      (F)  A board of education sponsoring a community school may  1,960        

utilize local funds to make enhancement grants to the school or    1,961        

may agree, either as part of the contract or separately, to        1,962        

provide any specific services to the community school at no cost   1,963        

to the school.                                                                  

      (G)  A community school may not levy taxes or issue bonds    1,965        

secured by tax revenues.                                           1,967        

      (H)  No community school shall charge tuition for the        1,969        

enrollment of any student.                                         1,971        

      (I)  A community school may borrow money to pay any          1,973        

necessary and actual expenses of the school in anticipation of     1,975        

the receipt of any portion of the payments to be received by the   1,976        

school pursuant to division (D) of this section.  The school may   1,977        

issue notes to evidence such borrowing to mature no later than     1,978        

the end of the fiscal year in which such money was borrowed.  The               

proceeds of the notes shall be used only for the purposes for      1,979        

which the anticipated receipts may be lawfully expended by the     1,980        

school.                                                                         

      (J)  For purposes of determining the number of students for  1,983        

which division (D)(3) of this section applies in any school year,  1,984        

a community school may submit to the state department of human     1,985        

services, no later than the first day of March, a list of the      1,986        

students enrolled in the school.  For each student on the list,    1,987        

the community school shall indicate the student's name, address,   1,988        

and date of birth and the school district where the student is     1,989        

                                                          46     

                                                                 
entitled to attend school under section 3313.64 or 3313.65 of the               

Revised Code.  Upon receipt of a list under this division, the     1,990        

department of human services shall determine, for each school      1,992        

district where one or more students on the list is entitled to     1,993        

attend school under section 3313.64 or 3313.65 of the Revised                   

Code, the number of students residing in that school district who  1,995        

were included in the department's report under section 3317.10 of  1,997        

the Revised Code.  The department shall make this determination    1,998        

on the basis of information readily available to it.  Upon making  1,999        

this determination and no later than ninety days after submission  2,000        

of the list by the community school, the department shall report   2,001        

to the state department of education the number of students on     2,002        

the list who reside in each school district who were included in   2,003        

the department's report under section 3317.10 of the Revised       2,004        

Code.  In complying with this division, the department of human    2,006        

services shall not report to the state department of education     2,007        

any personally identifiable information on any student.                         

      (K)  The department of education shall adjust the amounts    2,009        

subtracted and paid under divisions (C) and (D) of this section    2,011        

to reflect any enrollment of students in community schools for                  

less than the equivalent of a full school year.                    2,012        

      Sec. 3314.12.  THE LEGISLATIVE OFFICE OF EDUCATION           2,014        

OVERSIGHT SHALL PRODUCE AND ISSUE AN ANNUAL COMPOSITE              2,015        

INFORMATIONAL REPORT ON COMMUNITY SCHOOLS ESTABLISHED UNDER THIS   2,016        

CHAPTER OR UNDER SECTION 50.52 OF AM. SUB. H.B. 215 OF THE 122nd   2,017        

GENERAL ASSEMBLY TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES,   2,019        

THE PRESIDENT OF THE SENATE, AND THE GOVERNOR.  THE REPORT SHALL   2,020        

INCLUDE THE NUMBER OF SCHOOLS IN OPERATION, THE SIZE AND           2,021        

CHARACTERISTICS OF ENROLLMENT FOR THE SCHOOLS, THE ACADEMIC                     

PERFORMANCE OF THE SCHOOLS, THE FINANCIAL STATUS OF THE SCHOOLS,   2,022        

AND ANY OTHER PERTINENT INFORMATION.                               2,023        

      Sec. 3314.13.  (A)  AS USED IN THIS SECTION:                 2,026        

      (1)  "ALL-DAY KINDERGARTEN" AND "DPIA INDEX" HAVE THE SAME   2,029        

MEANINGS AS IN SECTION 3317.029 OF THE REVISED CODE.               2,032        

                                                          47     

                                                                 
      (2)  "FORMULA AMOUNT" HAS THE SAME MEANING AS IN SECTION     2,034        

3317.02 OF THE REVISED CODE.                                       2,036        

      (B)  THE DEPARTMENT OF EDUCATION ANNUALLY SHALL PAY EACH     2,039        

COMMUNITY SCHOOL ESTABLISHED UNDER THIS CHAPTER OR UNDER SECTION   2,041        

50.52 OF AM. SUB. H.B. NO. 215 OF THE 122nd GENERAL ASSEMBLY       2,043        

ONE-HALF OF THE FORMULA AMOUNT FOR EACH STUDENT WHO IS ENTITLED    2,044        

TO ATTEND SCHOOL UNDER SECTION 3313.64 OR 3313.65 OF THE REVISED   2,046        

CODE IN A SCHOOL DISTRICT WITH A DPIA INDEX OF ONE OR GREATER AND  2,048        

WHO IS REPORTED BY THE COMMUNITY SCHOOL AS ENROLLED IN ALL-DAY     2,049        

KINDERGARTEN AT THE COMMUNITY SCHOOL.  IF A STUDENT FOR WHOM                    

PAYMENT IS MADE UNDER THIS SECTION IS ENTITLED TO ATTEND SCHOOL    2,051        

IN A DISTRICT THAT RECEIVES ANY PAYMENT FOR ALL-DAY KINDERGARTEN   2,053        

UNDER DIVISION (D) OF SECTION 3317.029 OF THE REVISED CODE, THE    2,055        

DEPARTMENT SHALL DEDUCT THE PAYMENT TO THE COMMUNITY SCHOOL UNDER  2,056        

THIS SECTION FROM THE AMOUNT PAID THAT SCHOOL DISTRICT UNDER THAT  2,057        

DIVISION.  IF THAT SCHOOL DISTRICT DOES NOT RECEIVE PAYMENT FOR    2,058        

ALL-DAY KINDERGARTEN UNDER THAT DIVISION, THE DEPARTMENT SHALL     2,059        

PAY THE COMMUNITY SCHOOL FROM STATE FUNDS APPROPRIATED GENERALLY   2,060        

FOR DISADVANTAGED PUPIL IMPACT AID.                                2,061        

      (C)  THE DEPARTMENT SHALL ADJUST THE AMOUNTS DEDUCTED FROM   2,064        

SCHOOL DISTRICTS AND PAID TO COMMUNITY SCHOOLS UNDER THIS SECTION  2,065        

TO REFLECT ANY ENROLLMENTS OF STUDENTS IN ALL-DAY KINDERGARTEN IN  2,066        

COMMUNITY SCHOOLS FOR LESS THAN THE EQUIVALENT OF A FULL SCHOOL    2,067        

YEAR.                                                                           

      Sec. 3315.171.  AS USED IN THIS SECTION, "SECURITIES" HAS    2,069        

THE SAME MEANING AS IN SECTION 133.01 OF THE REVISED CODE.         2,070        

      THE BOARD OF EDUCATION OF A CITY, EXEMPTED VILLAGE, LOCAL,   2,072        

OR JOINT VOCATIONAL SCHOOL DISTRICT MAY REPLACE REVENUES RECEIVED  2,074        

FOR OPERATING EXPENSES WITH MONEY RECEIVED FROM ANY OF THE         2,075        

FOLLOWING SOURCES IN MEETING THE AMOUNT REQUIRED BY DIVISION (A)   2,076        

OF SECTION 3315.17 OF THE REVISED CODE TO BE DEPOSITED IN THE      2,078        

DISTRICT'S TEXTBOOK AND INSTRUCTIONAL MATERIALS FUND:              2,079        

      (A)  A PERMANENT IMPROVEMENT LEVY AUTHORIZED BY SECTION      2,082        

5705.21 OF THE REVISED CODE TO THE EXTENT THE PROCEEDS ARE         2,085        

                                                          48     

                                                                 
RESTRICTED BY THE DISTRICT BOARD TO EXPENDITURES FOR TEXTBOOKS,    2,086        

INSTRUCTIONAL SOFTWARE, AND INSTRUCTIONAL MATERIALS, SUPPLIES,     2,087        

AND EQUIPMENT;                                                                  

      (B)  THE PROCEEDS OF SECURITIES WHOSE USE IS RESTRICTED TO   2,090        

EXPENDITURES FOR TEXTBOOKS, INSTRUCTIONAL SOFTWARE, AND            2,091        

INSTRUCTIONAL MATERIALS, SUPPLIES, AND EQUIPMENT.                  2,092        

      Sec. 3315.181.  AS USED IN THIS SECTION, "SECURITIES" HAS    2,094        

THE SAME MEANING AS IN SECTION 133.01 OF THE REVISED CODE.         2,097        

      NOTWITHSTANDING DIVISION (A) OF SECTION 3315.18 OF THE       2,101        

REVISED CODE, THE BOARD OF EDUCATION OF A CITY, EXEMPTED VILLAGE,  2,103        

LOCAL, OR JOINT VOCATIONAL SCHOOL DISTRICT, IN MEETING THE AMOUNT  2,104        

REQUIRED BY THAT DIVISION TO BE DEPOSITED IN THE DISTRICT'S        2,105        

CAPITAL AND MAINTENANCE FUND, MAY REPLACE GENERAL FUND REVENUES    2,106        

WITH PROCEEDS RECEIVED FROM A PERMANENT IMPROVEMENT LEVY           2,107        

AUTHORIZED BY SECTION 5705.21 OF THE REVISED CODE ONLY TO THE      2,109        

EXTENT THE PROCEEDS ARE AVAILABLE TO BE USED FOR THE ACQUISITION,  2,110        

REPLACEMENT, ENHANCEMENT, MAINTENANCE, OR REPAIR OF PERMANENT      2,111        

IMPROVEMENTS AS DEFINED IN SECTION 5705.01 OF THE REVISED CODE.    2,113        

IN ADDITION, THE BOARD MAY REPLACE GENERAL FUND REVENUES WITH      2,114        

PROCEEDS RECEIVED FROM ANY OF THE FOLLOWING SOURCES IN MEETING     2,115        

THE AMOUNT REQUIRED BY THAT DIVISION TO BE DEPOSITED IN THE FUND:  2,116        

      (A)  PROCEEDS RECEIVED FROM ANY SECURITIES WHOSE USE IS      2,118        

LIMITED TO THE ACQUISITION, REPLACEMENT, ENHANCEMENT,              2,119        

MAINTENANCE, OR REPAIR OF PERMANENT IMPROVEMENTS;                  2,120        

      (B)  INSURANCE PROCEEDS RECEIVED AS A RESULT OF THE DAMAGE   2,122        

TO OR THEFT OR DESTRUCTION OF A PERMANENT IMPROVEMENT TO THE       2,123        

EXTENT A BOARD OF EDUCATION PLACES THE PROCEEDS IN A SEPARATE      2,124        

FUND FOR THE ACQUISITION, REPLACEMENT, ENHANCEMENT, MAINTENANCE,   2,125        

OR REPAIR OF PERMANENT IMPROVEMENTS;                               2,126        

      (C)  PROCEEDS RECEIVED FROM THE SALE OF A PERMANENT          2,128        

IMPROVEMENT TO THE EXTENT THE PROCEEDS ARE PAID INTO A SEPARATE    2,129        

FUND FOR THE CONSTRUCTION OR ACQUISITION OF PERMANENT              2,130        

IMPROVEMENTS;                                                      2,131        

      (D)  PROCEEDS RECEIVED FROM A TAX LEVY AUTHORIZED BY         2,133        

                                                          49     

                                                                 
SECTION 3318.06 OF THE REVISED CODE TO THE EXTENT THE PROCEEDS     2,135        

ARE AVAILABLE TO BE USED FOR THE MAINTENANCE OF CAPITAL            2,136        

FACILITIES;                                                        2,137        

      (E)  PROCEEDS OF CERTIFICATES OF PARTICIPATION ISSUED AS     2,140        

PART OF A LEASE-PURCHASE AGREEMENT ENTERED INTO UNDER SECTION      2,141        

3313.375 OF THE REVISED CODE.                                      2,143        

      Sec. 3317.01.  As used in this section and section 3317.011  2,152        

of the Revised Code, "school district," unless otherwise           2,153        

specified, means any city, local, exempted village, joint          2,154        

vocational, or cooperative education school district and any       2,156        

educational service center.                                        2,157        

      This chapter shall be administered by the state board of     2,159        

education.  The superintendent of public instruction shall         2,160        

calculate the amounts payable to each school district and shall    2,161        

certify the amounts payable to each eligible district to the       2,162        

treasurer of the district as provided by this chapter.  No moneys  2,163        

shall be distributed pursuant to this chapter without the          2,164        

approval of the controlling board.                                 2,165        

      The state board of education shall, in accordance with       2,167        

appropriations made by the general assembly, meet the financial    2,168        

obligations of this chapter, except that moneys to meet the        2,169        

financial obligations of section 3301.17 of the Revised Code       2,170        

shall be supplemented from funds available to the state from the   2,171        

United States or any agency or department thereof for a driver     2,172        

education course of instruction.                                   2,173        

      ANNUALLY, THE DEPARTMENT OF EDUCATION SHALL CALCULATE AND    2,175        

REPORT TO EACH SCHOOL DISTRICT THE DISTRICT'S TOTAL STATE AND      2,176        

LOCAL FUNDS FOR PROVIDING AN ADEQUATE BASIC EDUCATION TO THE       2,177        

DISTRICT'S NONHANDICAPPED STUDENTS, UTILIZING THE DETERMINATION    2,178        

IN SECTION 3317.012 OF THE REVISED CODE.  IN ADDITION, THE                      

DEPARTMENT SHALL CALCULATE AND REPORT SEPARATELY FOR EACH SCHOOL   2,179        

DISTRICT THE DISTRICT'S TOTAL STATE AND LOCAL FUNDS FOR PROVIDNG   2,180        

AN ADEQUATE EDUCATION FOR ITS HANDICAPPED STUDENTS, UTILIZING THE  2,181        

DETERMINATIONS IN BOTH SECTIONS 3317.012 AND 3317.013 OF THE       2,182        

                                                          50     

                                                                 
REVISED CODE.                                                                   

      Moneys distributed pursuant to this chapter shall be         2,184        

calculated and paid on a fiscal year basis, beginning with the     2,185        

first day of July and extending through the thirtieth day of       2,186        

June.  The moneys appropriated for each fiscal year shall be       2,187        

distributed at least monthly to each school district unless        2,188        

otherwise provided for.  With each payment, the state board shall  2,189        

submit to each school district a detailed statement of state       2,190        

special education support indicating the amount of the payment     2,191        

calculated under division (A) of section 3317.022 of the Revised   2,192        

Code as basic aid that is attributable to the district's category  2,194        

one, two, and three special education ADMs plus the amount of the  2,195        

distribution computed under division (C) of section 3317.022 of    2,196        

the Revised Code.  The state board shall submit a yearly                        

districution DISTRIBUTION plan to the controlling board at its     2,197        

first meeting in July.  The state board shall submit any proposed  2,198        

midyear revision of the plan to the controlling board in January.  2,200        

Any year-end revision of the plan shall be submitted to the        2,201        

controlling board in June.  If moneys appropriated for each                     

fiscal year are distributed other than monthly, such distribution  2,202        

shall be on the same basis for each school district.               2,203        

      The total amounts paid each month shall constitute, as       2,205        

nearly as possible, one-twelfth of the total amount payable for    2,206        

the entire year.  Payments made during the first six months of     2,207        

the fiscal year may be based on an estimate of the amounts         2,208        

payable for the entire year.  Payments made in the last six        2,209        

months shall be based on the final calculation of the amounts      2,210        

payable to each school district for that fiscal year.  Payments    2,211        

made in the last six months may be adjusted, if necessary, to      2,212        

correct the amounts distributed in the first six months, and to    2,213        

reflect enrollment increases when such are at least three per      2,214        

cent.  Except as otherwise provided, payments under this chapter   2,215        

shall be made only to those school districts in which:             2,216        

      (A)  The school district, except for any educational         2,219        

                                                          51     

                                                                 
service center and any joint vocational or cooperative education   2,220        

school district, levies for current operating expenses at least    2,221        

twenty mills.  Levies for joint vocational or cooperative          2,223        

education school districts or county school financing districts,   2,224        

limited to or to the extent apportioned to current expenses,       2,225        

shall be included in this qualification requirement.  School       2,226        

district income tax levies under Chapter 5748. of the Revised      2,227        

Code, limited to or to the extent apportioned to current           2,228        

operating expenses, shall be included in this qualification        2,229        

requirement to the extent determined by the tax commissioner       2,230        

under division (C) of section 3317.021 of the Revised Code.        2,231        

      (B)  The school year next preceding the fiscal year for      2,233        

which such payments are authorized meets the requirement of        2,234        

section 3313.48 or 3313.481 of the Revised Code, with regard to    2,235        

the minimum number of days or hours school must be open for        2,236        

instruction with pupils in attendance, for individualized          2,237        

parent-teacher conference and reporting periods, and for           2,238        

professional meetings of teachers.  This requirement shall be      2,239        

waived by the superintendent of public instruction if it had been  2,240        

necessary for a school to be closed because of disease epidemic,   2,241        

hazardous weather conditions, inoperability of school buses or     2,242        

other equipment necessary to the school's operation, damage to a   2,243        

school building, or other temporary circumstances due to utility   2,244        

failure rendering the school building unfit for school use,        2,245        

provided that for those school districts operating pursuant to     2,246        

section 3313.48 of the Revised Code the number of days the school  2,247        

was actually open for instruction with pupils in attendance and    2,248        

for individualized parent-teacher conference and reporting         2,249        

periods is not less than one hundred seventy-five, or for those    2,250        

school districts operating on a trimester plan the number of days  2,251        

the school was actually open for instruction with pupils in        2,252        

attendance not less than seventy-nine days in any trimester, for   2,253        

those school districts operating on a quarterly plan the number    2,254        

of days the school was actually open for instruction with pupils   2,255        

                                                          52     

                                                                 
in attendance not less than fifty-nine days in any quarter, or     2,256        

for those school districts operating on a pentamester plan the     2,257        

number of days the school was actually open for instruction with   2,258        

pupils in attendance not less than forty-four days in any          2,259        

pentamester.                                                                    

      A school district shall not be considered to have failed to  2,261        

comply with this division or section 3313.481 of the Revised Code  2,262        

because schools were open for instruction but either twelfth       2,263        

grade students were excused from attendance for up to three days   2,264        

or only a portion of the kindergarten students were in attendance  2,265        

for up to three days in order to allow for the gradual             2,266        

orientation to school of such students.                            2,267        

      The superintendent of public instruction shall waive the     2,269        

requirements of this section with reference to the minimum number  2,270        

of days or hours school must be in session with pupils in          2,271        

attendance for the school year succeeding the school year in       2,272        

which a board of education initiates a plan of operation pursuant  2,273        

to section 3313.481 of the Revised Code.  The minimum              2,274        

requirements of this section shall again be applicable to such a   2,275        

district beginning with the school year commencing the second      2,276        

July succeeding the initiation of one such plan, and for each      2,277        

school year thereafter.                                            2,278        

      A school district shall not be considered to have failed to  2,280        

comply with this division or section 3313.48 or 3313.481 of the    2,281        

Revised Code because schools were open for instruction but the     2,282        

length of the regularly scheduled school day, for any number of    2,283        

days during the school year, was reduced by not more than two      2,284        

hours due to hazardous weather conditions.                                      

      (C)  The school district has on file, and is paying in       2,286        

accordance with, a teacher's TEACHERS' salary schedule which       2,288        

complies with section 3317.13 of the Revised Code.                              

      A board of education or governing board of an educational    2,290        

service center which has not conformed with other law and the      2,292        

rules pursuant thereto, shall not participate in the distribution  2,293        

                                                          53     

                                                                 
of funds authorized by sections 3317.022 to 3317.0211, 3317.11,    2,294        

3317.16, 3317.17, and 3317.19 of the Revised Code, except for      2,295        

good and sufficient reason established to the satisfaction of the  2,296        

state board of education and the state controlling board.          2,297        

      All funds allocated to school districts under this chapter,  2,299        

except those specifically allocated for other purposes, shall be   2,300        

used to pay current operating expenses only.                       2,301        

      Sec. 3317.013.  This section does not apply to preschool     2,310        

handicapped PRESCHOOL students.                                    2,311        

      Analysis of special education cost data has resulted in a    2,313        

finding that the average special education excess ADDITIONAL cost  2,315        

per pupil, including the costs of related services, can be         2,316        

expressed as a multiple of the base cost per pupil calculated      2,318        

under section 3317.012 of the Revised Code.  The multiples for     2,319        

the following categories of special education programs, as these   2,320        

programs are defined for purposes of Chapter 3323. of the Revised  2,321        

Code, are as follows:                                                           

      (A)  A multiple of 0.22 for students identified as specific  2,324        

learning disabled, other health handicapped, or developmentally                 

handicapped, as these terms are defined pursuant to Chapter 3323.  2,325        

of the Revised Code;                                               2,326        

      (B)  A multiple of 3.01 for students identified as hearing   2,328        

handicapped, orthopedically handicapped, vision impaired,          2,329        

multihandicapped, and severe behavior handicapped, as these terms  2,331        

are defined pursuant to Chapter 3323. of the Revised Code.         2,332        

      Further analysis indicates that approximately one-eighth of  2,334        

THE TOTAL COSTS OF SERVING special education costs consist         2,336        

STUDENTS CONSISTS of the furnishing of THE related services        2,338        

specified in division (A)(B)(3) of section 3317.024 3317.022 of    2,340        

the Revised Code.                                                  2,341        

      Sec. 3317.02.  As used in this chapter:                      2,350        

      (A)  Unless otherwise specified, "school district" means     2,352        

city, local, and exempted village school districts.                2,353        

      (B)  "Formula amount" means the base cost for the fiscal     2,355        

                                                          54     

                                                                 
year specified in section 3317.012 of the Revised Code, except     2,357        

that to allow for the orderly phase-in of the increased funding    2,359        

specified in that section, the formula amount for fiscal year      2,360        

1999 shall be $3,851; the formula amount for fiscal year 2000      2,361        

shall be $4,038; and the formula amount for fiscal year 2001       2,362        

shall be $4,226.  Thereafter, the formula amount shall be as       2,363        

specified in that section.                                                      

      (C)  "FTE basis" means a count of students based on          2,366        

full-time equivalency, in accordance with rules adopted by the     2,367        

department of education pursuant to section 3317.03 of the         2,368        

Revised Code.  IN ADOPTING ITS RULES UNDER THIS DIVISION, THE      2,369        

DEPARTMENT SHALL PROVIDE FOR COUNTING ANY STUDENT IN A DISTRICT'S  2,370        

CATEGORY ONE, TWO, OR THREE SPECIAL EDUCATION ADM IN THE SAME      2,371        

PROPORTION THE STUDENT IS COUNTED IN FORMULA ADM.                  2,372        

      (D)(1)  "Formula ADM" means the greater of the number        2,375        

reported pursuant to division (A) of section 3317.03 of the        2,377        

Revised Code or the three-year.                                    2,379        

      (2)  "THREE-YEAR AVERAGE FORMULA ADM" MEANS THE average of   2,381        

that number and the number reported under that division A SCHOOL   2,383        

DISTRICT'S FORMULA ADMs for the CURRENT AND preceding two fiscal   2,384        

years.  However, as applicable in fiscal years 1999 and 2000, the  2,386        

three-year average specified in this division shall be determined  2,388        

utilizing the FY 1997 ADM or FY 1998 ADM in lieu of a number       2,390        

reported under division (A) of section 3317.03 of the Revised      2,392        

Code FORMULA ADM FOR FISCAL YEAR 1997 OR 1998.                     2,393        

      (E)  "Preschool special education ADM" means the sum of the  2,396        

average daily membership of handicapped preschool children                      

receiving services in preschool special education units approved   2,397        

pursuant to division (B) of section 3317.05 of the Revised Code    2,399        

FY 1997 ADM" or "FY 1998 ADM" MEANS THE DISTRICT'S AVERAGE DAILY   2,404        

MEMBERSHIP REPORTED FOR THE APPLICABLE FISCAL YEAR UNDER THE       2,405        

VERSION OF DIVISION (A) OF SECTION 3317.03 OF THE REVISED CODE IN  2,408        

EFFECT DURING THAT FISCAL YEAR, ADJUSTED AS FOLLOWS:               2,409        

      (1)  MINUS THE AVERAGE DAILY MEMBERSHIP OF HANDICAPPED       2,412        

                                                          55     

                                                                 
PRESCHOOL CHILDREN;                                                             

      (2)  MINUS ONE-HALF OF THE AVERAGE DAILY MEMBERSHIP          2,415        

ATTENDING KINDERGARTEN;                                                         

      (3)  MINUS THREE-FOURTHS OF THE AVERAGE DAILY MEMBERSHIP     2,418        

ATTENDING A JOINT VOCATIONAL SCHOOL DISTRICT;                      2,419        

      (4)  PLUS THE AVERAGE DAILY MEMBERSHIP ENTITLED UNDER        2,421        

SECTION 3313.64 OR 3313.65 OF THE REVISED CODE TO ATTEND SCHOOL    2,423        

IN THE DISTRICT BUT RECEIVING EDUCATIONAL SERVICES IN APPROVED     2,424        

UNITS FROM AN EDUCATIONAL SERVICE CENTER OR ANOTHER SCHOOL         2,426        

DISTRICT UNDER A COMPACT OR A COOPERATIVE EDUCATION AGREEMENT, AS  2,427        

DETERMINED BY THE DEPARTMENT;                                                   

      (5)  MINUS THE AVERAGE DAILY MEMBERSHIP RECEIVING            2,429        

EDUCATIONAL SERVICES FROM THE DISTRICT IN APPROVED UNITS BUT       2,430        

ENTITLED UNDER SECTION 3313.64 OR 3313.65 OF THE REVISED CODE TO   2,431        

ATTEND SCHOOL IN ANOTHER SCHOOL DISTRICT, AS DETERMINED BY THE     2,432        

DEPARTMENT.                                                                     

      (F)(1)  "Category one special education ADM" means the       2,436        

average daily membership of handicapped children receiving                      

special education services for those handicaps specified in        2,438        

division (A) of section 3317.013 of the Revised Code and reported  2,440        

under division (B) of section 3317.03 of the Revised Code.         2,442        

      (2)  "Category two special education ADM" means the average  2,446        

daily membership of handicapped children receiving special         2,447        

education services for those handicaps specified in division (B)   2,448        

of section 3317.013 of the Revised Code and reported under         2,450        

division (B) of section 3317.03 of the Revised Code.               2,452        

      (3)  "Category three special education ADM" means the        2,456        

average daily membership of students receiving special education   2,457        

services for students identified as autistic, having traumatic                  

brain injuries, or as both visually and hearing disabled as these  2,458        

terms are defined pursuant to Chapter 3323. of the Revised Code,   2,459        

and reported under division (B) of section 3317.03 of the Revised  2,460        

Code.                                                                           

      (G)  "Family assistance" means assistance received under     2,462        

                                                          56     

                                                                 
the Ohio works first program or, for the purpose of determining    2,464        

the five-year average of recipients of family assistance for       2,465        

fiscal years 1999 through 2002, assistance received under an       2,466        

antecedent family assistance program known as TANF or ADC          2,467        

HANDICAPPED PRESCHOOL CHILD" MEANS A HANDICAPPED CHILD, AS         2,469        

DEFINED IN SECTION 3323.01 OF THE REVISED CODE, WHO IS AT LEAST    2,471        

AGE THREE BUT IS NOT OF COMPULSORY SCHOOL AGE, AS DEFINED IN       2,472        

SECTION 3321.01 OF THE REVISED CODE, AND WHO HAS NOT ENTERED       2,474        

KINDERGARTEN.                                                      2,475        

      (H)  "DPIA ADM" means the five-year average of the number    2,478        

of children ages five to seventeen years residing in the school    2,479        

district and living in a family receiving family assistance, as    2,481        

certified or adjusted under section 3317.10 of the Revised Code    2,482        

COUNTY MR/DD BOARD" MEANS A COUNTY BOARD OF MENTAL RETARDATION     2,484        

AND DEVELOPMENTAL DISABILITIES.                                    2,485        

      (I)(1)  "DPIA percentage" means a school district's DPIA     2,488        

ADM for the fiscal year divided by the district's three-year       2,489        

average formula ADM for that fiscal year.                          2,491        

      (2)  "Three-year average formula ADM" means the average of   2,494        

the district's formula ADM for the current and preceding two       2,496        

fiscal years, provided that in fiscal years 1999 and 2000, the     2,497        

department shall calculate this average utilizing the district's   2,498        

ADM reported for fiscal years 1997 and 1998 pursuant to division   2,499        

(A) of section 3317.03 of the Revised Code, minus one-half the     2,501        

kindergarten students "RECOGNIZED VALUATION" MEANS THE AMOUNT      2,504        

CALCULATED FOR A SCHOOL DISTRICT PURSUANT TO SECTION 3317.015 OF   2,505        

THE REVISED CODE.                                                  2,506        

      (J)  "Transportation ADM" means the number of children       2,510        

reported under division (B)(9) of section 3317.03 of the Revised   2,512        

Code.                                                              2,513        

      (K)  "Most efficient transportation use cost per             2,515        

TRANSPORTED student" for a district means the most efficient cost  2,517        

per transported student for that district as developed A           2,518        

STATISTICAL REPRESENTATION OF TRANSPORTATION COSTS AS CALCULATED   2,519        

                                                          57     

                                                                 
under division (D)(4) of section 3317.022 of the Revised Code.     2,521        

      (L)  "Taxes charged and payable" means the taxes charged     2,523        

and payable against real and public utility property after making  2,524        

the reduction required by section 319.301 of the Revised Code,     2,525        

plus the taxes levied against tangible personal property.          2,526        

      (M)  "Total taxable value" means the sum of the amounts      2,530        

certified for a city, local, exempted village, or joint            2,531        

vocational school district under divisions (A)(1) and (2) of       2,532        

section 3317.021 of the Revised Code.                                           

      (N)(1)  "Cost-of-doing-business factor" means the amount     2,534        

indicated in this division for the county in which the district    2,535        

is located, adjusted in accordance with division (N)(2) of this    2,537        

section.  If the district is located in more than one county, the  2,538        

factor is the amount indicated for the county to which the                      

district is assigned by the state department of education.         2,539        

                                  COST-OF-DOING-BUSINESS           2,541        

      COUNTY                          FACTOR AMOUNT                2,542        

      Adams                              1.0100                    2,546        

      Allen                              1.0272                    2,547        

      Ashland                            1.0362                    2,548        

      Ashtabula                          1.0540                    2,549        

      Athens                             1.0040                    2,550        

      Auglaize                           1.0300                    2,551        

      Belmont                            1.0101                    2,552        

      Brown                              1.0218                    2,553        

      Butler                             1.0662                    2,554        

      Carroll                            1.0180                    2,555        

      Champaign                          1.0432                    2,556        

      Clark                              1.0489                    2,557        

      Clermont                           1.0498                    2,558        

      Clinton                            1.0287                    2,559        

      Columbiana                         1.0320                    2,560        

      Coshocton                          1.0224                    2,561        

      Crawford                           1.0174                    2,562        

                                                          58     

                                                                 
      Cuyahoga                           1.0725                    2,563        

      Darke                              1.0360                    2,564        

      Defiance                           1.0214                    2,565        

      Delaware                           1.0512                    2,566        

      Erie                               1.0414                    2,567        

      Fairfield                          1.0383                    2,568        

      Fayette                            1.0281                    2,569        

      Franklin                           1.0548                    2,570        

      Fulton                             1.0382                    2,571        

      Gallia                             1.0000                    2,572        

      Geauga                             1.0608                    2,573        

      Greene                             1.0418                    2,574        

      Guernsey                           1.0091                    2,575        

      Hamilton                           1.0750                    2,576        

      Hancock                            1.0270                    2,577        

      Hardin                             1.0384                    2,578        

      Harrison                           1.0111                    2,579        

      Henry                              1.0389                    2,580        

      Highland                           1.0177                    2,581        

      Hocking                            1.0164                    2,582        

      Holmes                             1.0275                    2,583        

      Huron                              1.0348                    2,584        

      Jackson                            1.0176                    2,585        

      Jefferson                          1.0090                    2,586        

      Knox                               1.0276                    2,587        

      Lake                               1.0627                    2,588        

      Lawrence                           1.0154                    2,589        

      Licking                            1.0418                    2,590        

      Logan                              1.0376                    2,591        

      Lorain                             1.0573                    2,592        

      Lucas                              1.0449                    2,593        

      Madison                            1.0475                    2,594        

      Mahoning                           1.0465                    2,595        

      Marion                             1.0289                    2,596        

                                                          59     

                                                                 
      Medina                             1.0656                    2,597        

      Meigs                              1.0016                    2,598        

      Mercer                             1.0209                    2,599        

      Miami                              1.0456                    2,600        

      Monroe                             1.0152                    2,601        

      Montgomery                         1.0484                    2,602        

      Morgan                             1.0168                    2,603        

      Morrow                             1.0293                    2,604        

      Muskingum                          1.0194                    2,605        

      Noble                              1.0150                    2,606        

      Ottawa                             1.0529                    2,607        

      Paulding                           1.0216                    2,608        

      Perry                              1.0185                    2,609        

      Pickaway                           1.0350                    2,610        

      Pike                               1.0146                    2,611        

      Portage                            1.0595                    2,612        

      Preble                             1.0523                    2,613        

      Putnam                             1.0308                    2,614        

      Richland                           1.0232                    2,615        

      Ross                               1.0111                    2,616        

      Sandusky                           1.0361                    2,617        

      Scioto                             1.0082                    2,618        

      Seneca                             1.0265                    2,619        

      Shelby                             1.0274                    2,620        

      Stark                              1.0330                    2,621        

      Summit                             1.0642                    2,622        

      Trumbull                           1.0465                    2,623        

      Tuscarawas                         1.0109                    2,624        

      Union                              1.0488                    2,625        

      Van Wert                           1.0181                    2,626        

      Vinton                             1.0065                    2,627        

      Warren                             1.0678                    2,628        

      Washington                         1.0124                    2,629        

      Wayne                              1.0446                    2,630        

                                                          60     

                                                                 
      Williams                           1.0316                    2,631        

      Wood                               1.0431                    2,632        

      Wyandot                            1.0227                    2,633        

      (2)  As used in this division, "multiplier" means the        2,636        

number for the corresponding fiscal year as follows:               2,637        

      FISCAL YEAR OF THE                                           2,639        

          COMPUTATION                  MULTIPLIER                  2,640        

             1998                       9.6/7.5                    2,642        

             1999                       11.0/7.5                   2,643        

             2000                       12.4/7.5                   2,644        

             2001                       13.8/7.5                   2,645        

             2002                       15.2/7.5                   2,646        

             2003                       16.6/7.5                   2,647        

      2004 and thereafter               18.0/7.5                   2,648        

      Beginning in fiscal year 1998, the department shall          2,651        

annually adjust the cost-of-doing-business factor for each county  2,653        

in accordance with the following formula:                          2,654        

       [(The cost-of-doing-business factor specified under         2,656        

     division (N)(1) of this section - 1) X (the multiplier        2,657        

          for the fiscal year of the calculation)< + 1             2,658        

      The result of such formula shall be the adjusted             2,660        

cost-of-doing-business factor for that fiscal year.                2,661        

      (O)  "Tax exempt value" of a school district means the       2,663        

amount certified for a school district under division (A)(4) of    2,664        

section 3317.021 of the Revised Code.                              2,665        

      (P)  "Potential value" of a school district means the        2,667        

adjusted total taxable value of a school district plus the tax     2,669        

exempt value of the district.                                      2,670        

      (Q)  "District median income" means the median Ohio          2,672        

adjusted gross income certified for a school district.  On or      2,673        

before the first day of July of each year, the tax commissioner    2,674        

shall certify to the department of education for each city,        2,675        

exempted village, and local school district the median Ohio        2,676        

adjusted gross income of the residents of the school district      2,677        

                                                          61     

                                                                 
determined on the basis of tax returns filed for the second        2,678        

preceding tax year by the residents of the district.                            

      (R)  "Statewide median income" means the median district     2,680        

median income of all city, exempted village, and local school      2,682        

districts in the state.                                                         

      (S)  "Income factor" for a city, exempted village, or local  2,684        

school district means the quotient obtained by dividing that       2,686        

district's median income by the statewide median income.           2,687        

      (T)  "Valuation EXCEPT AS PROVIDED IN DIVISION (B)(3) OF     2,689        

SECTION 3317.012 OF THE REVISED CODE, "VALUATION per pupil" for a  2,690        

city, exempted village, or local school district means the         2,692        

district's recognized valuation divided by THE GREATER OF the      2,693        

district's formula ADM OR THREE-YEAR AVERAGE FORMULA ADM.          2,695        

      (U)  Except as provided in section 3317.0213 of the Revised  2,698        

Code, "adjusted valuation per pupil" means the amount calculated   2,700        

in accordance with the following formula:                          2,701        

            District valuation per pupil - [$60,000 X              2,703        

                  (1 - district income factor)<                    2,704        

      If the result of such formula is negative, the adjusted      2,706        

valuation per pupil shall be zero.                                 2,707        

      (V)  "Income adjusted valuation" means the product obtained  2,709        

by multiplying the district's adjusted valuation per pupil by THE  2,710        

GREATER OF the district's formula ADM OR THREE-YEAR AVERAGE        2,712        

FORMULA ADM.                                                                    

      (W)  "Adjusted EXCEPT AS PROVIDED IN DIVISION (A)(2) OF      2,714        

SECTION 3317.022 OF THE REVISED CODE, "ADJUSTED total taxable      2,715        

value" means one of the following:                                 2,716        

      (1)  In any fiscal year that a district's income factor is   2,718        

less than or equal to one, the amount calculated under the         2,719        

following formula:                                                              

               (Income adjusted valuation X 1/5) +                 2,721        

                  (recognized valuation X 4/5)                     2,722        

      (2)  In fiscal year 1999, if a district's income factor is   2,725        

greater than one, the amount calculated under the following        2,726        

                                                          62     

                                                                 
formula:                                                           2,727        

               (Income adjusted valuation X 1/15)                  2,729        

                + (recognized valuation X 14/15)                   2,730        

      Thereafter, the adjusted total taxable value of a district   2,732        

with an income factor greater than one shall be its recognized     2,734        

valuation.                                                                      

      (X)  "Recognized valuation" means the amount calculated for  2,736        

a school district pursuant to section 3317.015 of the Revised      2,739        

Code.                                                                           

      (Y)  "County MR/DD board" means a county board of mental     2,743        

retardation and developmental disabilities.                        2,744        

      (Z)  "Handicapped preschool child" means a handicapped       2,747        

child, as defined in section 3323.01 of the Revised Code, who is   2,749        

at least age three but is not of compulsory school age, as         2,750        

defined in section 3321.01 of the Revised Code, and who has not    2,752        

entered kindergarten.                                              2,753        

      (AA)  "FY 1997 or FY 1998 ADM" means for either fiscal       2,757        

year, as applicable, the district's average daily membership as    2,758        

described by division (A) of former section 3317.02 of the         2,759        

Revised Code, plus the district's average daily membership based   2,761        

upon full-time equivalency in approved vocational units as                      

certified by the district under division (A)(2) of former section  2,763        

3317.03 of the Revised Code and the district's average daily       2,765        

membership of all handicapped children, except for preschool       2,767        

handicapped children, in classes in the district as certified                   

under division (a)(3) of former section 3317.03 of the Revised     2,769        

Code, as those divisions and sections existed in the applicable    2,771        

fiscal year.                                                                    

      Sec. 3317.021.  (A)  On or before the first day of June of   2,780        

each year, the tax commissioner shall certify to the department    2,781        

of education the following information for each city, exempted     2,782        

village, and local school district and the information required    2,783        

by divisions (A)(1) and (2) of this section for each joint         2,784        

vocational school district, and it shall be used, along with the   2,785        

                                                          63     

                                                                 
information certified under division (B) of this section, in       2,786        

making the computations for the district under section 3317.022    2,787        

or 3317.16 of the Revised Code:                                    2,788        

      (1)  The taxable value of real and public utility real       2,790        

property in the school district subject to taxation in the         2,791        

preceding tax year, by class and by county of location;            2,792        

      (2)  The taxable value of tangible personal property,        2,794        

including public utility personal property, subject to taxation    2,795        

by the district for the preceding tax year;                        2,796        

      (3)  The total property tax rate and total taxes charged     2,798        

and payable for the current expenses for the preceding tax year    2,799        

and the total property tax rate and the total taxes charged and    2,800        

payable to a joint vocational district for the preceding tax year  2,801        

that are limited to or to the extent apportioned to current        2,802        

expenses;                                                          2,803        

      (4)  The value of all real and public utility real property  2,805        

in the school district exempted from taxation minus both of the    2,806        

following:                                                         2,807        

      (a)  The value of real and public utility real property in   2,809        

the district owned by the United States government and used        2,810        

exclusively for a public purpose;                                  2,811        

      (b)  The value of real and public utility real property in   2,813        

the district exempted from taxation under Chapter 725. or 1728.    2,814        

or section 3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632,  2,815        

5709.73, or 5709.78 of the Revised Code.                           2,816        

      (5)  The total effective operating tax rate for the          2,818        

district IN THE TAX YEAR FOR WHICH THE MOST RECENT DATA ARE        2,819        

AVAILABLE.                                                                      

      (B)  On or before the first day of May each year, the tax    2,821        

commissioner shall certify to the department of education the      2,822        

total taxable real property value of railroads and, separately,    2,823        

the total taxable tangible personal property value of all public   2,824        

utilities for the preceding tax year, by school district and by    2,825        

county of location.                                                2,826        

                                                          64     

                                                                 
      (C)  If on the basis of the information certified under      2,828        

division (A) of this section, the department determines that any   2,829        

district fails in any year to meet the qualification requirement   2,830        

specified in division (A) of section 3317.01 of the Revised Code,  2,831        

the department shall immediately request the tax commissioner to   2,832        

determine the extent to which any school district income tax       2,833        

levied by the district under Chapter 5748. of the Revised Code     2,834        

shall be included in meeting that requirement.  Within five days   2,835        

of receiving such a request from the department, the tax           2,836        

commissioner shall make the determination required by this         2,837        

division and report the quotient obtained under division (C)(3)    2,838        

of this section to the department.  This quotient represents the   2,839        

number of mills that the department shall include in determining   2,840        

whether the district meets the qualification requirement of        2,841        

division (A) of section 3317.01 of the Revised Code.               2,842        

      The tax commissioner shall make the determination required   2,844        

by this division as follows:                                       2,845        

      (1)  Multiply one mill times the total taxable value of the  2,847        

district as determined in divisions (A)(1) and (2) of this         2,848        

section;                                                           2,849        

      (2)  Estimate the total amount of tax liability for the      2,851        

current tax year under taxes levied by Chapter 5748. of the        2,852        

Revised Code that are apportioned to current operating expenses    2,853        

of the district;                                                   2,854        

      (3)  Divide the amount estimated under division (C)(2) of    2,856        

this section by the product obtained under division (C)(1) of      2,857        

this section.                                                      2,858        

      (D)  As used in this section:                                2,860        

      (1)  "Class I taxes charged and payable for current          2,863        

expenses" means taxes charged and payable for current expenses on               

land and improvements classified as residential/agricultural real  2,864        

property under section 5713.041 of the Revised Code.               2,866        

      (2)  "Class I taxable value" means the taxable value of      2,869        

land and improvements classified as residential/agricultural real  2,870        

                                                          65     

                                                                 
property under section 5713.041 of the Revised Code.               2,871        

      (3)  "Class I effective operating tax rate" of a school      2,874        

district means the quotient obtained by dividing the school        2,875        

district's Class I taxes charged and payable for current expenses  2,876        

by the district's Class I taxable value.                                        

      (4)  "Income tax equivalent tax rate" of a school district   2,878        

means the quotient obtained by dividing the income tax liability   2,880        

for the most recently concluded REVENUE DISBURSED DURING THE       2,881        

CURRENT FISCAL year under any tax levied pursuant to Chapter       2,882        

5748. of the Revised Code by total taxable value of the district   2,884        

to the extent the revenue from the tax is allocated or                          

apportioned to current expenses.                                   2,885        

      (5)  "Total effective operating tax rate" means the sum of   2,888        

the Class I effective operating tax rate and the income tax        2,890        

equivalent tax rate.                                                            

      (6)  "State taxable value per pupil" means the quotient      2,893        

obtained by dividing the total taxable value of all city, local,   2,894        

and exempted village school districts in this state by the sum of  2,895        

the formula ADMs of all city, local, and exempted village school   2,896        

districts in this state.                                                        

      Sec. 3317.022.  (A)(1)  The department of education shall    2,905        

compute and distribute state basic aid to each school district     2,907        

for the fiscal year in accordance with the following formula,      2,908        

using adjusted total taxable value as defined under division (W)   2,910        

of section 3317.02 of the Revised Code OR DIVISION (A)(2) OF THIS  2,911        

SECTION and the information obtained under section 3317.021 of     2,912        

the Revised Code in the calendar year in which the fiscal year     2,913        

begins.                                                                         

      Compute the following for each eligible district:            2,915        

                ([cost-of-doing-business factor X                  2,916        

        the formula amount X (THE GREATER OF formula ADM           2,917        

              OR THREE-YEAR AVERAGE FORMULA ADM)< -                2,918        

              (.023 X adjusted total taxable value)                2,919        

      If the difference obtained is a negative number, the         2,921        

                                                          66     

                                                                 
district's computation shall be zero.                              2,922        

      (2)(a)  For each school district for which the tax exempt    2,925        

value of the district equals or exceeds twenty-five per cent of    2,926        

the potential value of the district, the department of education   2,927        

shall calculate the difference between the district's tax exempt   2,928        

value and twenty-five per cent of the district's potential value.  2,929        

      (b)  For each school district to which division (A)(2)(a)    2,932        

of this section applies, the adjusted total taxable value used in  2,933        

the calculation under division (A)(1) of this section shall be     2,934        

the adjusted total taxable value modified by subtracting the       2,935        

amount calculated under division (A)(2)(a) of this section.        2,936        

      (B)  As used in division (C) of this section and in section  2,939        

3317.024 of the Revised Code:                                                   

      (1)  The "total special education weight" for a district     2,941        

means the sum of the following amounts:                            2,942        

      (a)  The district's category one special education ADM       2,944        

multiplied by the multiple specified under division (A) of         2,947        

section 3317.013 of the Revised Code;                                           

      (b)  The sum of the district's category two and category     2,949        

three special education ADMs multiplied by the multiple specified  2,951        

under division (B) of section 3317.013 of the Revised Code.        2,952        

      (2)  "State share percentage" means the percentage           2,954        

calculated for a district as follows:                              2,955        

      (a)  Calculate the basic aid amount for the district for     2,957        

the fiscal year under division (A) of this section.  If the        2,959        

district would not receive any state basic aid for that year                    

under that division, the district's state share percentage is      2,960        

zero.                                                                           

      (b)  If the district would receive basic aid under that      2,962        

division, divide that basic aid amount by an amount equal to the   2,963        

following:                                                         2,964        

                 Cost-of-doing-business factor X                   2,966        

          the formula amount X (THE GREATER OF formula             2,967        

             ADM OR THREE-YEAR AVERAGE FORMULA ADM)                2,968        

                                                          67     

                                                                 
      The resultant number is the district's state share           2,971        

percentage.                                                        2,972        

      (3)  "RELATED SERVICES" INCLUDES:                            2,975        

      (a)  CHILD STUDY, SPECIAL EDUCATION SUPERVISORS AND          2,977        

COORDINATORS, SPEECH AND HEARING SERVICES, ADAPTIVE PHYSICAL       2,978        

DEVELOPMENT SERVICES, AND OCCUPATIONAL OR PHYSICAL THERAPY, AS     2,979        

THOSE TERMS ARE DEFINED BY THE DEPARTMENT;                         2,980        

      (b)  SPEECH AND LANGUAGE SERVICES PROVIDED TO ANY STUDENT    2,983        

WITH A HANDICAP, INCLUDING ANY STUDENT WHOSE PRIMARY OR ONLY       2,984        

HANDICAP IS A SPEECH AND LANGUAGE HANDICAP;                                     

      (c)  ANY RELATED SERVICE NOT SPECIFICALLY COVERED BY OTHER   2,987        

STATE FUNDS BUT SPECIFIED IN FEDERAL LAW, INCLUDING BUT NOT        2,988        

LIMITED TO, AUDIOLOGY AND PSYCHOLOGY;                                           

      (d)  ANY SERVICE INCLUDED IN UNITS FUNDED UNDER FORMER       2,991        

DIVISION (O)(1) OF SECTION 3317.023 OF THE REVISED CODE.           2,993        

      (C)(1)  The department shall compute and distribute state    2,995        

basic special education AND RELATED SERVICES ADDITIONAL WEIGHTED   2,996        

COSTS funds to each school district in accordance with the         2,997        

following formula:                                                              

              The district's state share percentage                2,999        

       X seven-eighths of the formula amount for the year          3,000        

                 for which the aid is calculated                   3,001        

         X the district's total special education weight           3,002        

      (2)  IN ANY FISCAL YEAR, A SCHOOL DISTRICT RECEIVING FUNDS   3,004        

UNDER DIVISION (C)(1) OF THIS SECTION SHALL SPEND ON RELATED       3,006        

SERVICES THE LESSER OF THE FOLLOWING:                              3,007        

      (a)  THE AMOUNT THE DISTRICT SPENT ON RELATED SERVICES IN    3,010        

THE PRECEDING FISCAL YEAR;                                                      

      (b)  1/8 X §[COST-OF-DOING-BUSINESS FACTOR X THE FORMULA     3,014        

AMOUNT X (THE CATEGORY ONE SPECIAL EDUCATION ADM + CATEGORY TWO    3,015        

SPECIAL EDUCATION ADM + CATEGORY THREE SPECIAL EDUCATION ADM)< +   3,017        

THE AMOUNT CALCULATED FOR THE FISCAL YEAR UNDER DIVISION (C)(1)    3,019        

OF THIS SECTION + THE LOCAL SHARE OF SPECIAL EDUCATION AND         3,020        

RELATED SERVICES ADDITIONAL WEIGHTED COSTS                         3,021        

                                                          68     

                                                                 
      (3)  THE LOCAL SHARE OF SPECIAL EDUCATION AND RELATED        3,023        

SERVICES ADDITIONAL WEIGHTED COSTS EQUALS:                         3,024        

          (1 - THE DISTRICT'S STATE SHARE PERCENTAGE) X            3,026        

         THE DISTRICT'S TOTAL SPECIAL EDUCATION WEIGHT X           3,027        

                       THE FORMULA AMOUNT                          3,028        

      (4)  The department shall compute and pay in accordance      3,031        

with this division additional state aid to school districts for    3,032        

students in category three special education ADM.  If a            3,033        

district's costs for the fiscal year for a student in its          3,034        

category three special education ADM are twenty-five thousand      3,036        

dollars or more, the district may submit to the superintendent of  3,037        

public instruction documentation, as prescribed by the             3,038        

superintendent, of all its costs for that student.  Upon           3,039        

submission of documentation for a student of the type and in the   3,040        

manner prescribed, the department shall pay to the district an     3,041        

amount equal to the district's costs for the student in excess of  3,042        

twenty-five thousand dollars multiplied by the district's state    3,043        

share percentage.                                                               

      (D)(1)  As used in this division, "log density" means a      3,045        

statistical representation of the most efficient transportation    3,046        

use cost per transported student for each district based on a      3,047        

statewide analysis THE LOGARITHMIC CALCULATION (BASE 10) of each   3,048        

district's transportation ADM per linear mile.                     3,049        

      (2)  In addition to funds paid under divisions (A) and (C)   3,052        

of this section, each district shall receive a payment equal to                 

sixty per cent of the district's transportation ADM times the      3,053        

district's most efficient transportation use cost per transported  3,054        

student.                                                                        

      (3)  In fiscal years 1999 through 2002, notwithstanding the  3,056        

amount calculated for each district under division (D)(2) of this  3,057        

section, each district shall receive in the corresponding fiscal   3,058        

year the following percentage of the district's transportation     3,059        

ADM times the district's most efficient transportation use cost    3,060        

per transported student:                                                        

                                                          69     

                                                                 
         FISCAL YEAR                        PERCENTAGE             3,062        

         1999                               50%                    3,063        

         2000                               52.5%                  3,064        

         2001                               55%                    3,065        

         2002                               57.5%                  3,066        

      (4)  For purposes of funding the student transportation      3,070        

portion, the department of education shall determine the most      3,071        

efficient transportation use cost per transported student for      3,072        

each school district.  This cost per student shall be an amount    3,073        

equal to the number ten to a power calculated in accordance with   3,074        

the following formula:                                                          

              (-0.413148 X log density) + 2.493129                 3,076        

      (5)  The department of education shall biennially ANNUALLY   3,078        

update the most efficient transportation use cost per transported  3,080        

student for each district in accordance with the formula in        3,081        

division (D)(4) of this section, including the figures and log     3,082        

density component of that formula, based on a AN ANNUAL statewide  3,083        

analysis of each district's transportation ADM per linear mile,    3,085        

and shall notify the office of budget and management of such                    

update by September of each even-numbered EVERY year.              3,086        

      THE DEPARTMENT OF EDUCATION SHALL USE THE MOST RECENT        3,088        

AVAILABLE DATA AS OF THE FIRST DAY OF JULY OF EACH YEAR TO         3,089        

COMPLETE THE ANNUAL UPDATE.  THE DEPARTMENT SHALL APPLY A 2.8 PER  3,090        

CENT INFLATION COST ADJUSTMENT FACTOR FOR EACH FISCAL YEAR SINCE   3,091        

THE FISCAL YEAR FOR WHICH THE DATA APPLIES TO ADJUST THE AMOUNT    3,092        

CALCULATED FOR EACH DISTRICT UNDER DIVISION (D)(2) OR (3) OF THIS  3,093        

SECTION TO THE CURRENT FISCAL YEAR LEVEL.                                       

      (6)  IN ADDITION TO FUNDS PAID UNDER DIVISION (D)(2) OR (3)  3,095        

OF THIS SECTION, EACH DISTRICT SHALL RECEIVE IN ACCORDANCE WITH    3,097        

RULES ADOPTED BY THE STATE BOARD OF EDUCATION A PAYMENT FOR        3,098        

STUDENTS TRANSPORTED BY MEANS OTHER THAN BOARD-OWNED OR            3,099        

CONTRACTOR-OPERATED BUSES AND WHOSE TRANSPORTATION IS NOT FUNDED   3,100        

UNDER DIVISION (J) OF SECTION 3317.024 OF THE REVISED CODE.  THE   3,101        

RULES SHALL INCLUDE PROVISIONS FOR SCHOOL DISTRICT REPORTING OF    3,102        

                                                          70     

                                                                 
SUCH STUDENTS.                                                                  

      Sec. 3317.023.  (A)  Notwithstanding section 3317.022 of     3,111        

the Revised Code, the amounts required to be paid to a district    3,112        

under that section THIS CHAPTER shall be adjusted by the amount    3,113        

of the computations made under divisions (B) to (J)(K) of this     3,114        

section.                                                           3,115        

      As used in this section:                                     3,117        

      (1)  "Classroom teacher" means a licensed employee who       3,119        

provides direct instruction to pupils, excluding teachers funded   3,120        

from money paid to the district from federal sources; educational  3,121        

service personnel; and vocational and special education teachers.  3,122        

      (2)  "Educational service personnel" shall not include such  3,124        

specialists funded from money paid to the district from federal    3,125        

sources or assigned full-time to vocational or special education   3,126        

students and classes and may only include those persons employed   3,127        

in the eight specialist areas in a pattern approved by the         3,128        

department of education under guidelines established by the state  3,129        

board of education.                                                3,130        

      (3)  "Annual salary" means the annual base salary stated in  3,132        

the state minimum salary schedule for the performance of the       3,133        

teacher's regular teaching duties that the teacher earns for       3,134        

services rendered for the first full week of October of the        3,135        

fiscal year for which the adjustment is made under division (C)    3,137        

of this section.  It shall not include any salary payments for     3,138        

supplemental teachers contracts.                                   3,139        

      (4)  "Regular student population" means the formula ADM      3,142        

PLUS THE NUMBER OF STUDENTS REPORTED AS ENROLLED IN THE DISTRICT   3,143        

PURSUANT TO DIVISION (A)(1) OF SECTION 3313.981 OF THE REVISED     3,144        

CODE; minus the number of students reported under division (A)(2)  3,146        

of section 3317.03 of the Revised Code and; minus the FTE of       3,147        

students reported under division (B)(5), (6), (7), or (8) of that  3,148        

section who are enrolled in a vocational education class or        3,149        

receiving special education,; and minus one-fourth of the          3,150        

students enrolled concurrently in a joint vocational school        3,151        

                                                          71     

                                                                 
district.                                                                       

      (B)  If the district employs less than one full-time         3,153        

equivalent classroom teacher for each twenty-five pupils in the    3,155        

regular student population in any school district, deduct the sum               

of the amounts obtained from the following computations:           3,158        

      (1)  Divide the number of the district's full-time           3,160        

equivalent classroom teachers employed by one twenty-fifth;        3,161        

      (2)  Subtract the quotient in (1) from the district's        3,163        

regular student population;                                        3,164        

      (3)  Multiply the difference in (2) by seven hundred         3,166        

fifty-two dollars.                                                 3,167        

      (C)  If a positive amount, add one-half of the amount        3,169        

obtained by multiplying the number of full-time equivalent         3,170        

classroom teachers by:                                             3,171        

      (1)  The mean annual salary of all full-time equivalent      3,173        

classroom teachers employed by the district at their respective    3,174        

training and experience levels minus;                              3,175        

      (2)  The mean annual salary of all such teachers at their    3,177        

respective levels in all school districts receiving payments       3,178        

under this section.                                                3,179        

      The number of full-time equivalent classroom teachers used   3,181        

in this computation shall not exceed one twenty-fifth of the       3,182        

district's regular student population.  In calculating the         3,184        

district's mean salary under this division, those full-time        3,185        

equivalent classroom teachers with the highest training level      3,186        

shall be counted first, those with the next highest training       3,187        

level second, and so on, in descending order.  Within the          3,188        

respective training levels, teachers with the highest years of     3,189        

service shall be counted first, the next highest years of service  3,190        

second, and so on, in descending order.                                         

      (D)  This division does not apply to a school district that  3,193        

has entered into an agreement under division (A) of section        3,194        

3313.42 of the Revised Code.  Deduct the amount obtained from the  3,195        

following computations if the district employs fewer than five     3,196        

                                                          72     

                                                                 
full-time equivalent educational service personnel, including      3,197        

elementary school art, music, and physical education teachers,     3,198        

counselors, librarians, visiting teachers, school social workers,  3,199        

and school nurses for each one thousand pupils in the regular      3,201        

student population:                                                3,202        

      (1)  Divide the number of full-time equivalent educational   3,204        

service personnel employed by the district by five                 3,205        

one-thousandths;                                                   3,206        

      (2)  Subtract the quotient in (1) from the district's        3,208        

regular student population;                                        3,209        

      (3)  Multiply the difference in (2) by ninety-four dollars.  3,211        

      (E)  If a local school district, or a city or exempted       3,213        

village school district to which a governing board of an           3,215        

educational service center provides services pursuant to section   3,216        

3313.843 of the Revised Code, deduct the amount of the payment     3,217        

required for the reimbursement of the governing board under        3,218        

section 3317.11 of the Revised Code.                               3,219        

      (F)(1)  If the district is required to pay to or entitled    3,221        

to receive tuition from another school district under division     3,222        

(C)(2) or (3) of section 3313.64 or section 3313.65 of the         3,223        

Revised Code, or if the superintendent of public instruction is    3,224        

required to determine the correct amount of tuition and make a     3,225        

deduction or credit under section 3317.08 of the Revised Code,     3,226        

deduct and credit such amounts as provided in division (I) of      3,227        

section 3313.64 or section 3317.08 of the Revised Code.            3,228        

      (2)  For each child for whom the district is responsible     3,230        

for tuition or payment under division (A)(1) of section 3317.082   3,231        

or section 3323.091 of the Revised Code, deduct the amount of      3,233        

tuition or payment for which the district is responsible.                       

      (G)  If the district has been certified by the               3,235        

superintendent of public instruction under section 3313.90 of the  3,236        

Revised Code as not in compliance with the requirements of that    3,237        

section, deduct an amount equal to ten per cent of the amount      3,238        

computed for the district under section 3317.022 of the Revised    3,239        

                                                          73     

                                                                 
Code.                                                              3,240        

      (H)  If the district has received a loan from a commercial   3,243        

lending institution for which payments are made by the             3,244        

superintendent of public instruction pursuant to division (E)(3)   3,245        

of section 3313.483 of the Revised Code, deduct an amount equal    3,246        

to such payments.                                                  3,247        

      (I)(1)  If the district is a party to an agreement entered   3,249        

into under division (D), (E), or (F) of section 3311.06 or         3,250        

division (B) of section 3311.24 of the Revised Code and is         3,251        

obligated to make payments to another district under such an       3,252        

agreement, deduct an amount equal to such payments if the          3,253        

district school board notifies the department in writing that it   3,254        

wishes to have such payments deducted.                             3,255        

      (2)  If the district is entitled to receive payments from    3,257        

another district that has notified the department to deduct such   3,258        

payments under division (I)(1) of this section, add the amount of  3,260        

such payments.                                                     3,261        

      (J)  If the district is required to pay an amount of funds   3,263        

to a cooperative education district pursuant to a provision        3,264        

described by division (B)(4) of section 3311.52 or division        3,265        

(B)(8) of section 3311.521 of the Revised Code, deduct such        3,266        

amounts as provided under that provision and credit those amounts  3,267        

to the cooperative education district for payment to the district  3,268        

under division (B)(1) of section 3317.19 of the Revised Code.      3,269        

      (K)(1)  IF A DISTRICT IS EDUCATING A STUDENT ENTITLED TO     3,271        

ATTEND SCHOOL IN ANOTHER DISTRICT PURSUANT TO A SHARED EDUCATION   3,272        

CONTRACT, COMPACT, OR COOPERATIVE EDUCATION AGREEMENT OTHER THAN   3,273        

AN AGREEMENT ENTERED INTO PURSUANT TO SECTION 3313.842 OF THE      3,274        

REVISED CODE, CREDIT TO THAT EDUCATING DISTRICT ON AN FTE BASIS    3,275        

BOTH OF THE FOLLOWING:                                                          

      (a)  AN AMOUNT EQUAL TO THE FORMULA AMOUNT TIMES THE COST    3,277        

OF DOING BUSINESS FACTOR OF THE SCHOOL DISTRICT WHERE THE STUDENT  3,278        

IS ENTITLED TO ATTEND SCHOOL PURSUANT TO SECTION 3313.64 OR        3,279        

3313.65 OF THE REVISED CODE;                                       3,280        

                                                          74     

                                                                 
      (b)  AN AMOUNT EQUAL TO THE FORMULA AMOUNT TIMES THE STATE   3,282        

SHARE PERCENTAGE TIMES ANY MULTIPLE APPLICABLE TO THE STUDENT      3,283        

PURSUANT TO SECTION 3317.013 OF THE REVISED CODE.                  3,284        

      (2)  DEDUCT ANY AMOUNT CREDITED PURSUANT TO DIVISION (K)(1)  3,286        

OF THIS SECTION FROM AMOUNTS PAID TO THE SCHOOL DISTRICT IN WHICH  3,287        

THE STUDENT IS ENTITLED TO ATTEND SCHOOL PURSUANT TO SECTION       3,288        

3313.64 OR 3313.65 OF THE REVISED CODE.                            3,289        

      (3)  IF THE DISTRICT IS REQUIRED BY A SHARED EDUCATION       3,291        

CONTRACT, COMPACT, OR COOPERATIVE EDUCATION AGREEMENT TO MAKE      3,292        

PAYMENTS TO AN EDUCATIONAL SERVICE CENTER, DEDUCT THE AMOUNTS      3,293        

FROM PAYMENTS TO THE DISTRICT AND ADD THEM TO THE AMOUNTS PAID TO  3,294        

THE SERVICE CENTER PURSUANT TO SECTION 3317.11 OF THE REVISED                   

CODE.                                                                           

      Sec. 3317.024.  In addition to the moneys paid to eligible   3,303        

school districts pursuant to section 3317.022 of the Revised       3,305        

Code, moneys appropriated for the education programs in divisions  3,306        

(A) to (L), and (O) to (Q), AND (P) of this section shall be       3,308        

distributed to school districts meeting the requirements of        3,309        

section 3317.01 of the Revised Code; in the case of divisions (I)  3,310        

and (J) AND, IN FISCAL YEAR 1999 ONLY, DIVISION (P)(1) of this     3,311        

section, to educational service centers as provided in section     3,312        

3317.11 of the Revised Code; in the case of division DIVISIONS     3,314        

(E), (M), AND (N) of this section, to county MR/DD boards; in the  3,316        

case of division (I) of this section, to joint vocational and      3,317        

cooperative education school districts; in the case of division    3,318        

(K) of this section, to cooperative education school districts;    3,320        

in the case of divisions (M) and (N) of this section, to county    3,322        

MR/DD boards; and in the case of division (R)(Q) of this section,  3,323        

to the institutions defined under section 3317.082 of the Revised  3,324        

Code providing elementary or secondary education programs to       3,325        

children other than children receiving special education under     3,326        

section 3323.091 of the Revised Code.  The following shall be      3,327        

distributed monthly, quarterly, or annually as may be determined   3,328        

by the state board of education:                                   3,329        

                                                          75     

                                                                 
      (A)(1)  An amount for related services equal to one-eighth   3,332        

of the district's total special education weight times the         3,334        

formula amount times the district's state share percentage.        3,335        

      (2)  In any fiscal year, a school district receiving funds   3,337        

under this division shall spend on related services at least the   3,339        

lesser of:                                                                      

      (a)  The amount the district spent on related services in    3,342        

the preceding fiscal year;                                                      

      (b)  The sum of the amount it receives under this division   3,345        

in state funds plus an amount equal to the local share of related  3,346        

services costs.                                                                 

      (3)  As used in this division:                               3,348        

      (a)  "Local share of related services costs" equals the      3,351        

amount calculated under the following formula:                     3,352        

             [(1 minus the district's state share) X               3,354        

     1/8 of the district's total special education weight X        3,355        

                       the formula amount<                         3,356        

      (b)  "Related services" means programs and services related  3,359        

to the provision of special education to handicapped students,     3,360        

and includes child study; special education supervisors and        3,361        

coordinators; speech and hearing services; adaptive physical       3,362        

development services; and occupational or physical therapy, as     3,363        

those terms are defined by the department of education A PER       3,365        

PUPIL AMOUNT TO EACH SCHOOL DISTRICT THAT ESTABLISHES A SUMMER     3,366        

SCHOOL REMEDIATION PROGRAM THAT COMPLIES WITH RULES OF THE STATE   3,367        

BOARD OF EDUCATION.                                                             

      (B)  An amount for each island school district and each      3,369        

joint state school district for the operation of each high school  3,370        

and each elementary school maintained within such district and     3,371        

for capital improvements for such schools.  Such amounts shall be  3,372        

determined on the basis of standards adopted by the state board    3,373        

of education.                                                      3,374        

      (C)  An amount for each school district operating classes    3,376        

for children of migrant workers who are unable to be in            3,377        

                                                          76     

                                                                 
attendance in an Ohio school during the entire regular school      3,378        

year.  The amounts shall be determined on the basis of standards   3,379        

adopted by the state board of education, except that payment       3,380        

shall be made only for subjects regularly offered by the school    3,381        

district providing the classes.                                    3,382        

      (D)  An amount for each school district with guidance,       3,384        

testing, and counseling programs approved by the state board of    3,385        

education.  The amount shall be determined on the basis of         3,386        

standards adopted by the state board of education.                 3,387        

      (E)  An amount for the emergency purchase of school buses    3,389        

as provided for in section 3317.07 of the Revised Code;            3,390        

      (F)  An amount for each school district required to pay      3,392        

tuition for a child in an institution maintained by the            3,393        

department of youth services pursuant to section 3317.082 of the   3,394        

Revised Code, provided the child was not included in the           3,396        

calculation of the district's average daily membership for the     3,397        

preceding school year.                                                          

      (G)  An amount to each school district for supplemental      3,399        

salary allowances for each licensed employee except those          3,401        

licensees serving as superintendents, assistant superintendents,   3,402        

principals, or assistant principals, whose term of service in any  3,403        

year is extended beyond the term of service of regular classroom   3,404        

teachers, as described in section 3301.0725 of the Revised Code;   3,405        

      (H)  An amount for adult basic literacy education for each   3,407        

district participating in programs approved by the state board of  3,408        

education.  The amount shall be determined on the basis of         3,409        

standards adopted by the state board of education.                 3,410        

      (I)  Notwithstanding section 3317.01 of the Revised Code,    3,412        

to each city, local, and exempted village school district, an      3,413        

amount pursuant to section 3301.17 of the Revised Code for         3,414        

conducting driver education courses at high schools for which the  3,415        

state board of education prescribes minimum standards and to       3,416        

joint vocational and cooperative education school districts and    3,418        

educational service centers, an amount pursuant to such section    3,419        

                                                          77     

                                                                 
for conducting driver education courses to pupils enrolled in a    3,420        

high school for which the state board prescribes minimum           3,421        

standards;                                                                      

      (J)  An amount for the approved cost of transporting         3,423        

developmentally handicapped pupils whom it is impossible or        3,424        

impractical to transport by regular school bus in the course of    3,425        

regular route transportation provided by the district or service   3,426        

center.  No district or service center is eligible to receive a    3,427        

payment under this division for the cost of transporting any       3,429        

pupil whom it transports by regular school bus and who is          3,430        

included in the district's transportation ADM.  The state board    3,431        

of education shall establish standards and guidelines for use by   3,432        

the department of education in determining the approved cost of    3,433        

such transportation for each district or service center.           3,434        

      (K)  An amount to each school district, including each       3,436        

cooperative education school district, pursuant to section         3,437        

3313.81 of the Revised Code to assist in providing free lunches    3,438        

to needy children and an amount to assist needy school districts   3,439        

in purchasing necessary equipment for food preparation.  The       3,440        

amounts shall be determined on the basis of rules adopted by the   3,441        

state board of education.                                          3,442        

      (L)  An amount to each school district, for each pupil       3,444        

attending a chartered nonpublic elementary or high school within   3,445        

the district.  The amount shall equal the amount appropriated for  3,446        

the implementation of section 3317.06 of the Revised Code divided  3,447        

by the average daily membership in grades kindergarten through     3,448        

twelve in nonpublic elementary and high schools within the state   3,449        

as determined during the first full week in October of each        3,450        

school year.                                                       3,451        

      (M)  An amount for each county MR/DD board, distributed on   3,454        

the basis of standards adopted by the state board of education,    3,455        

for the approved cost of transportation required for children      3,456        

attending special education programs operated by the county MR/DD  3,457        

board under section 3323.09 of the Revised Code;                   3,458        

                                                          78     

                                                                 
      (N)  An amount for each county MR/DD board, distributed on   3,461        

the basis of standards adopted by the state board of education,    3,462        

for supportive home services for preschool children;               3,463        

      (O)  An amount for each school district that establishes a   3,465        

mentor teacher program that complies with rules of the state       3,466        

board of education.  No school district shall be required to       3,467        

establish or maintain such a program in any year unless            3,468        

sufficient funds are appropriated to cover the district's total    3,469        

costs for the program.                                                          

      (P)  A per pupil amount to each school district that         3,471        

establishes a summer school remediation program that complies      3,472        

with rules of the state board of education;                        3,473        

      (Q)(1)  For fiscal year 1999 only, an amount to each school  3,476        

district or educational service center for the total number of     3,477        

gifted units approved pursuant to section 3317.05 of the Revised   3,478        

Code.  The amount for each such unit shall be the sum of the       3,479        

minimum salary for the teacher of the unit, calculated on the      3,480        

basis of the teacher's training level and years of experience      3,481        

pursuant to section 3317.13 of the Revised Code, plus fifteen per  3,482        

cent of that minimum salary amount, plus two thousand six hundred  3,483        

seventy-eight dollars.                                             3,484        

      (2)  Beginning with fiscal year 2000, an amount for each     3,486        

school district for programs for gifted students calculated under  3,488        

the following formula:                                                          

                       [.10 (formula ADM)                          3,490        

               multiplied by .10 (formula amount)<                 3,491        

      No money shall be distributed to a school district under     3,493        

division (Q)(2) of this section in any fiscal year unless the      3,495        

superintendent has on file by the first day of that year a         3,496        

district plan specifying the manner in which funds will be         3,497        

utilized to serve gifted students and the method for selecting     3,498        

students to participate in gifted programs and activities.         3,499        

      (3)  Prior to October 1, 1998, the THE general assembly      3,502        

shall INTENDS TO begin a review and revision of the funding        3,503        

                                                          79     

                                                                 
formula for gifted education services IN 1999.  The analysis and   3,504        

any resulting calculations shall be based upon a rational          3,506        

methodology for calculating the cost of adequate gifted education  3,507        

services.  The analysis shall use data generated by a study                     

funded through the department of education.                        3,508        

      (R)(Q)  An amount to each institution defined under section  3,511        

3317.082 of the Revised Code providing elementary or secondary     3,513        

education to children other than children receiving special        3,514        

education under section 3323.091 of the Revised Code.  This        3,515        

amount for any institution in any fiscal year shall equal the      3,516        

total of all tuition amounts required to be paid to the            3,517        

institution under division (A)(1) of section 3317.082 of the       3,519        

Revised Code.                                                                   

      The state board of education or any other board of           3,521        

education or governing board may provide for any resident of a     3,522        

district or educational service center territory any educational   3,524        

service for which funds are made available to the board by the     3,525        

United States under the authority of public law, whether such      3,526        

funds come directly or indirectly from the United States or any    3,527        

agency or department thereof or through the state or any agency,   3,528        

department, or political subdivision thereof.                                   

      Sec. 3317.029.  (A)  As used in this section:                3,538        

      (1)  "DPIA PERCENTAGE" MEANS THE QUOTIENT OBTAINED BY        3,541        

DIVIDING THE FIVE-YEAR AVERAGE NUMBER OF CHILDREN AGES FIVE TO     3,542        

SEVENTEEN RESIDING IN THE SCHOOL DISTRICT AND LIVING IN A FAMILY   3,543        

RECEIVING FAMILY ASSISTANCE, AS CERTIFIED OR ADJUSTED UNDER        3,544        

SECTION 3317.10 OF THE REVISED CODE, BY THE DISTRICT'S THREE-YEAR  3,547        

AVERAGE FORMULA ADM.                                                            

      (2)  "FAMILY ASSISTANCE" MEANS ASSISTANCE RECEIVED UNDER     3,549        

THE OHIO WORKS FIRST PROGRAM OR, FOR THE PURPOSE OF DETERMINING    3,551        

THE FIVE-YEAR AVERAGE NUMBER OF RECIPIENTS OF FAMILY ASSISTANCE    3,552        

IN FISCAL YEARS 1999 THROUGH 2002, ASSISTANCE RECEIVED UNDER AN    3,553        

ANTECEDENT PROGRAM KNOWN AS TANF OR ADC.                           3,555        

      (3)  "Statewide DPIA percentage" means the five-year         3,558        

                                                          80     

                                                                 
average of the total number of children ages five to seventeen     3,559        

years residing in the state and receiving family assistance,       3,560        

divided by the average of the sum of the THREE-YEAR AVERAGE        3,561        

formula ADMs reported for all school districts in the state for    3,563        

the current and preceding two fiscal years, provided that in       3,564        

fiscal years 1999 and 2000, the department shall calculate this    3,565        

three-year average utilizing district ADMs reported pursuant to    3,566        

the version of division (A) of section 3317.03 of the Revised      3,568        

Code in effect in fiscal years 1997 and 1998;.                     3,569        

      (2)(4)  "DPIA index" means the quotient obtained by          3,572        

dividing the school district's DPIA percentage by the statewide    3,574        

DPIA percentage;.                                                               

      (3)(5)  "Kindergarten ADM" means the number of students      3,577        

reported under section 3317.03 of the Revised Code as enrolled in  3,578        

kindergarten;.                                                     3,579        

      (4)(6)  "Kindergarten through third grade ADM" means the     3,582        

sum obtained by multiplying AMOUNT CALCULATED AS FOLLOWS:          3,583        

      (a)  MULTIPLY the kindergarten ADM by two, adding THE SUM    3,586        

OF ONE PLUS THE ALL-DAY KINDERGARTEN PERCENTAGE;                   3,587        

      (b)  ADD THE KINDERGARTEN ADM TO THE PRODUCT CALCULATED      3,589        

UNDER DIVISION (A)(6)(a) OF THIS SECTION;                          3,590        

      (c)  ADD TO THE SUM CALCULATED UNDER DIVISION (A)(6)(b) OF   3,593        

THIS SECTION the number of students in grades one through three,   3,594        

and subtracting;                                                                

      (d)  SUBTRACT FROM THE SUM CALCULATED UNDER DIVISION         3,597        

(A)(6)(c) OF THIS SECTION the number of special education          3,598        

students in grades one KINDERGARTEN through three;.                3,600        

      (5)(7)  "Statewide average teacher salary" means             3,602        

thirty-nine thousand ninety-two dollars, which includes an amount  3,603        

for the value of fringe benefits;.                                 3,604        

      (6)  "Statewide formula ADM" means the sum total of the      3,607        

formula ADM for all school districts in the state;                 3,608        

      (7)(8)  "ALL-DAY KINDERGARTEN" MEANS A KINDERGARTEN CLASS    3,611        

THAT IS IN SESSION FIVE DAYS PER WEEK FOR NOT LESS THAN THE SAME   3,612        

                                                          81     

                                                                 
NUMBER OF CLOCK HOURS EACH DAY AS FOR PUPILS IN GRADES ONE         3,613        

THROUGH SIX.                                                                    

      (9)  "All-day kindergarten percentage" means the percentage  3,615        

of a district's actual total number of students enrolled in        3,617        

kindergarten who are ENROLLED in classes that are in session five  3,619        

days per week for not less than the same number of clock hours     3,620        

each day as for pupils in grades one through six; ALL-DAY                       

KINDERGARTEN.                                                      3,621        

      (8)(10)  "Buildings with the highest concentration of need"  3,623        

means the school buildings in a district with percentages of       3,625        

students receiving family assistance in grades kindergarten        3,626        

through three at least as high as the district-wide percentage of  3,627        

students receiving family assistance.  IF, HOWEVER, THE            3,628        

INFORMATION PROVIDED BY THE DEPARTMENT OF HUMAN SERVICES UNDER     3,629        

SECTION 3317.10 OF THE REVISED CODE IS INSUFFICIENT TO DETERMINE   3,632        

THE FAMILY ASSISTANCE PERCENTAGE IN EACH BUILDING, "BUILDINGS      3,633        

WITH THE HIGHEST CONCENTRATION OF NEED" HAS THE MEANING GIVEN IN   3,634        

RULES THAT THE DEPARTMENT OF EDUCATION SHALL ADOPT.  THE RULES     3,635        

SHALL BASE THE DEFINITION OF "BUILDINGS WITH THE HIGHEST           3,636        

CONCENTRATION OF NEED" ON FAMILY INCOME OF STUDENTS IN GRADES      3,637        

KINDERGARTEN THROUGH THREE IN A MANNER THAT, TO THE EXTENT                      

POSSIBLE WITH AVAILABLE DATA, APPROXIMATES THE INTENT OF THIS      3,638        

DIVISION AND DIVISION (G) OF THIS SECTION TO DESIGNATE BUILDINGS   3,640        

WHERE THE FAMILY ASSISTANCE PERCENTAGE IN THOSE GRADES EQUALS OR   3,641        

EXCEEDS THE DISTRICT-WIDE FAMILY ASSISTANCE PERCENTAGE.            3,642        

      (B)  In addition to the amounts required to be paid to a     3,645        

school district under section 3317.022 of the Revised Code, a      3,646        

school district shall receive the greater of the amount the        3,647        

district received in fiscal year 1998 pursuant to division (B) of  3,648        

section 3317.023 of the Revised Code as it existed at that time    3,650        

or the amount of the sum of the following computations made under  3,652        

divisions (C) to (E) of this section.                              3,653        

      (C)  A supplemental payment that may be utilized for         3,655        

measures related to safety and security and for remediation or     3,656        

                                                          82     

                                                                 
similar programs, calculated as follows:                           3,657        

      (1)  If the DPIA index of the school district is greater     3,660        

than or equal to thirty-five-hundredths, but less than one, an     3,661        

amount obtained by multiplying the five-year average number of     3,662        

pupils in a district receiving family assistance by two hundred    3,663        

thirty dollars;                                                    3,664        

      (2)  If the DPIA index of the school district is greater     3,667        

than or equal to one, an amount obtained by multiplying the DPIA   3,669        

index by two hundred thirty dollars and multiplying that product   3,670        

by the five-year average number of pupils in a district receiving  3,671        

family assistance.                                                 3,672        

      (D)  A payment for all-day kindergarten if the DPIA index    3,675        

of the school district is greater than or equal to one or if the   3,676        

district's three-year average formula ADM exceeded seventeen       3,677        

thousand five hundred, calculated by multiplying the all-day       3,678        

kindergarten percentage by the kindergarten ADM and multiplying    3,679        

that product by the formula amount.                                3,680        

      (E)  A class-size reduction payment based on calculating     3,683        

the number of new teachers necessary to achieve a lower            3,684        

student-teacher ratio, as follows:                                 3,685        

      (1)  Determine or calculate a formula number of teachers     3,687        

per one thousand students based on the DPIA index of the school    3,689        

district as follows:                                               3,690        

      (a)  If the DPIA index of the school district is less than   3,693        

six-tenths, the formula number of teachers is 43.478, which is     3,694        

the number of teachers per one thousand students at a              3,695        

student-teacher ratio of twenty-three to one;                      3,696        

      (b)  If the DPIA index of the school district is greater     3,699        

than or equal to six-tenths, but less than two and one-half, the   3,700        

formula number of teachers is calculated as follows:               3,701        

           43.478 + §[(DPIA index-0.6)/1.9< X 23.188               3,703        

      Where 43.478 is the number of teachers per one thousand      3,705        

students at a student-teacher ratio of twenty-three to one; 1.9    3,706        

is the interval from a DPIA index of six-tenths to a DPIA index    3,709        

                                                          83     

                                                                 
of two and one-half; and 23.188 is the difference in the number    3,710        

of teachers per one thousand students at a student-teacher ratio   3,711        

of fifteen to one and the number of teachers per one thousand      3,712        

students at a student-teacher ratio of twenty-three to one.        3,714        

      (c)  If the DPIA index of the school district is greater     3,717        

than or equal to two and one-half, the formula number of teachers  3,718        

is 66.667, which is the number of teachers per one thousand        3,719        

students at a student-teacher ratio of fifteen to one.             3,720        

      (2)  Multiply the formula number of teachers determined or   3,722        

calculated in division (E)(1) of this section by the kindergarten  3,725        

through third grade ADM for the district and divide that product   3,727        

by one thousand;                                                                

      (3)  Calculate the number of new teachers as follows:        3,730        

      (a)  Multiply the kindergarten through third grade ADM by    3,733        

43.478, which is the number of teachers per one thousand students  3,734        

at a student-teacher ratio of twenty-three to one, and divide      3,735        

that product by one thousand;                                      3,736        

      (b)  Subtract the quotient obtained in division (E)(3)(a)    3,739        

of this section from the product in division (E)(2) of this        3,741        

section.                                                                        

      (4)  Multiply the greater of the difference obtained under   3,743        

division (E)(3) of this section or zero by the statewide average   3,745        

teachers salary.                                                                

      (F)  This division applies only to school districts whose    3,747        

DPIA index is one or greater.                                      3,748        

      (1)  Each school district subject to this division shall     3,750        

first utilize funds received under this section SO THAT, WHEN      3,751        

COMBINED WITH OTHER FUNDS OF THE DISTRICT, SUFFICIENT FUNDS EXIST  3,752        

to provide all-day kindergarten to at least the number of          3,753        

children in the district's all-day kindergarten percentage.        3,754        

      (2)  Up to an amount equal to the district's DPIA index      3,756        

multiplied by the five-year average number of pupils in a          3,757        

district receiving family assistance multiplied by two hundred     3,758        

thirty dollars of the money distributed under this section may be  3,760        

                                                          84     

                                                                 
utilized for one or both of the following:                         3,761        

      (a)  Programs designed to ensure that schools are free of    3,764        

drugs and violence and have a disciplined environment conducive    3,765        

to learning;                                                                    

      (b)  Remediation for students who have failed or are in      3,768        

danger of failing any of the proficiency tests administered        3,769        

pursuant to section 3301.0710 of the Revised Code.                              

      (3)  Except as otherwise required by division (G) of this    3,771        

section, all other funds distributed UNDER THIS SECTION to         3,772        

districts subject to this division under this section shall be     3,775        

utilized for the purpose of the third grade guarantee.  The third  3,776        

grade guarantee consists of increasing the amount of               3,778        

instructional attention received per pupil in kindergarten         3,779        

through third grade, either by reducing the ratio of students to   3,780        

instructional personnel or by increasing the amount of             3,781        

instruction and curriculum-related activities by extending the     3,782        

length of the school day or the school year.                       3,783        

      School districts may implement a reduction of the ratio of   3,785        

students to instructional personnel through any or all of the      3,786        

following methods:                                                 3,787        

      (a)  Reducing the number of students in a classroom taught   3,790        

by a single teacher;                                                            

      (b)  Employing full-time educational aides or educational    3,793        

paraprofessionals issued a permit or license under section         3,794        

3319.088 of the Revised Code;                                                   

      (c)  Instituting a team-teaching method that will result in  3,797        

a lower student-teacher ratio in a classroom.                                   

      Districts may extend the school day either by increasing     3,799        

the amount of time allocated for each class, increasing the        3,800        

number of classes provided per day, offering optional              3,801        

academic-related after-school programs, providing                  3,802        

curriculum-related extra curricular activities, or establishing    3,803        

tutoring or remedial services for students who have demonstrated   3,804        

an educational need.  In accordance with section 3319.089 of the   3,805        

                                                          85     

                                                                 
Revised Code, a district extending the school day pursuant to      3,806        

this division may utilize a participant of the work experience     3,807        

program who has a child enrolled in a public school in that        3,808        

district and who is fulfilling the work requirements of that                    

program by volunteering or working in that public school.  If the  3,809        

work experience program participant is compensated, the school     3,810        

district may use the funds distributed under this section for all  3,811        

or part of the compensation.                                                    

      Districts may extend the school year either through adding   3,814        

regular days of instruction to the school calendar or by           3,815        

providing summer programs.                                         3,816        

      (G)  Each district subject to division (F) of this section   3,819        

shall not expend any funds received under division (E) of this     3,820        

section in any school buildings that are not buildings with the    3,821        

highest concentration of need, unless there is a ratio of          3,822        

instructional personnel to students of no more than fifteen to     3,824        

one in each kindergarten and first grade class in all buildings    3,825        

with the highest concentration of need.  THIS DIVISION DOES NOT    3,827        

REQUIRE THAT THE FUNDS USED IN BUILDINGS WITH THE HIGHEST          3,828        

CONCENTRATION OF NEED BE SPENT SOLELY TO REDUCE THE RATIO OF       3,829        

INSTRUCTIONAL PERSONNEL TO STUDENTS IN KINDERGARTEN AND FIRST      3,830        

GRADE.  A SCHOOL DISTRICT MAY SPEND THE FUNDS IN THOSE BUILDINGS   3,831        

IN ANY MANNER PERMITTED BY DIVISION (F)(3) OF THIS SECTION, BUT    3,832        

MAY NOT SPEND THE MONEY IN OTHER BUILDINGS UNLESS THE              3,833        

FIFTEEN-TO-ONE RATIO REQUIRED BY THIS DIVISION IS ATTAINED.        3,834        

      (H)(1)  By the first day of August of each fiscal year,      3,836        

each school district wishing to receive any funds under division   3,838        

(D) of this section shall certify SUBMIT to the department of      3,839        

education AN ESTIMATE OF its all-day kindergarten percentage.      3,841        

EACH DISTRICT SHALL UPDATE ITS ESTIMATE THROUGHOUT THE FISCAL      3,843        

YEAR IN THE FORM AND MANNER REQUIRED BY THE DEPARTMENT, AND THE    3,844        

DEPARTMENT SHALL ADJUST PAYMENTS UNDER THIS SECTION TO REFLECT     3,845        

THE UPDATES.                                                                    

      (2)  Annually by the end of December, the department of      3,847        

                                                          86     

                                                                 
education, utilizing data from the information system established  3,849        

under section 3301.0714 of the Revised Code and after              3,850        

consultation with the legislative office of education oversight,   3,851        

shall determine for each school district subject to division (F)   3,852        

of this section whether in the preceding fiscal year the           3,853        

district's ratio of instructional personnel to students; and its   3,854        

number of kindergarten students receiving all-day kindergarten     3,855        

appear reasonable, given the amounts of money the district         3,856        

received for that fiscal year pursuant to divisions (D) and (E)    3,858        

of this section.  If the department is unable to verify from the   3,859        

data available that students are receiving reasonable amounts of   3,860        

instructional attention and all-day kindergarten, given the funds  3,861        

the district has received under this section and that class-size   3,863        

reduction funds are being used in school buildings with the        3,864        

highest concentration of need as required by division (G) of this  3,866        

section, the department shall conduct a more intensive             3,868        

investigation to ensure that funds have been expended as required  3,869        

by this section.  The department shall file an annual report of    3,870        

its findings under this division with the chairpersons of the      3,871        

committees in each house of the general assembly dealing with      3,872        

finance and education.                                                          

      (I)  Any school district with a DPIA index less than one     3,874        

AND A THREE-YEAR AVERAGE FORMULA ADM EXCEEDING SEVENTEEN THOUSAND  3,877        

FIVE HUNDRED SHALL FIRST UTILIZE FUNDS RECEIVED UNDER THIS         3,878        

SECTION SO THAT, WHEN COMBINED WITH OTHER FUNDS OF THE DISTRICT,                

SUFFICIENT FUNDS EXIST TO PROVIDE ALL-DAY KINDERGARTEN TO AT       3,879        

LEAST THE NUMBER OF CHILDREN IN THE DISTRICT'S ALL-DAY             3,880        

KINDERGARTEN PERCENTAGE.  SUCH A DISTRICT SHALL EXPEND AT LEAST    3,881        

SEVENTY PER CENT OF THE REMAINING FUNDS RECEIVED UNDER THIS        3,882        

SECTION, AND ANY OTHER DISTRICT WITH A DPIA INDEX LESS THAN ONE    3,884        

shall expend at least seventy per cent of the ALL funds received   3,886        

under this section, for any of the following purposes:             3,889        

      (1)  The purchase of technology for instructional purposes;  3,892        

      (2)  All-day kindergarten;                                   3,894        

                                                          87     

                                                                 
      (3)  Reduction of class sizes;                               3,896        

      (4)  Summer school remediation;                              3,898        

      (5)  Dropout prevention programs;                            3,900        

      (6)  Guaranteeing that all third graders are ready to        3,903        

progress to more advanced work;                                                 

      (7)  Summer education and work programs;                     3,905        

      (8)  Adolescent pregnancy programs;                          3,907        

      (9)  Head start or preschool programs;                       3,909        

      (10)  Reading improvement programs described by the          3,912        

department of education;                                                        

      (11)  Programs designed to ensure that schools are free of   3,915        

drugs and violence and have a disciplined environment conducive    3,916        

to learning;                                                                    

      (12)  Furnishing, free of charge, materials used in courses  3,919        

of instruction, except for the necessary textbooks required to be  3,920        

furnished without charge pursuant to section 3329.06 of the        3,921        

Revised Code, to pupils living in families participating in Ohio   3,922        

works first in accordance with section 3313.642 of the Revised     3,923        

Code;                                                              3,924        

      (13)  School breakfasts provided pursuant to section         3,926        

3313.813 of the Revised Code.                                      3,928        

      Each district shall submit to the department, in such        3,930        

format and at such time as the department shall specify, a report  3,931        

on the programs for which it expended funds under this division.   3,932        

      (J)  If at any time the superintendent of public             3,934        

instruction determines that a school district has used the         3,935        

RECEIVING funds received under division (D) of this section for    3,937        

any purpose other than to provide all-day kindergarten as          3,938        

required under this section, or if the superintendent determines   3,939        

that a school district has enrolled less than the all-day          3,940        

kindergarten percentage reported for that fiscal year, the         3,941        

superintendent shall withhold from the funds otherwise due a THE   3,942        

district under this section the amount of the funds spent in       3,943        

violation of this section or a proportional amount of the funds    3,945        

                                                          88     

                                                                 
as determined by the difference in the certified all-day                        

kindergarten percentage and the percentage actually enrolled in    3,946        

all-day kindergarten.                                              3,947        

      The superintendent shall also withhold an appropriate        3,949        

amount of funds otherwise due a district for any other misuse of   3,950        

funds not in accordance with this section.                         3,951        

      Sec. 3317.0212.  Divisions (B) and (C) of this section do    3,960        

not apply to a school district with a formula ADM of one humdred   3,962        

HUNDRED fifty or less.                                                          

      (A)  As used in this section:                                3,964        

      (1)  "Fundamental FY 1997 STATE AID" OR "FUNDAMENTAL FY      3,967        

1998 state aid" for a district means the total amount of state     3,968        

money received by the district under sections 3317.022 and         3,969        

3317.023 of the Revised Code before any deductions required by     3,971        

division (G), (J), (K), or (L) of section 3317.023 of the Revised  3,973        

Code, plus any amounts for which the district was eligible         3,974        

pursuant to divisions (M), (N), and (O) of section 3317.024 and    3,975        

sections 3317.0212 and 3317.0213 of the Revised Code, as those     3,977        

divisions and sections existed in fiscal year 1998, plus the       3,978        

district's share of state funds for service center units IN THE    3,980        

APPLICABLE FISCAL YEAR AS REPORTED ON THE DEPARTMENT OF            3,981        

EDUCATION'S FORM "SF-12," ADJUSTED AS FOLLOWS:                     3,983        

      (a)  MINUS THE AMOUNT FOR TRANSPORTATION;                    3,985        

      (b)  MINUS ANY AMOUNTS FOR APPROVED PRESCHOOL HANDICAPPED    3,988        

UNITS;                                                                          

      (c)  MINUS ANY ADDITIONAL AMOUNT ATTRIBUTABLE TO THE         3,991        

REAPPRAISAL GUARANTEE OF DIVISION (C) OF SECTION 3317.04 OF THE    3,993        

REVISED CODE;                                                      3,994        

      (d)  PLUS THE AMOUNT DEDUCTED FOR PAYMENTS TO AN             3,996        

EDUCATIONAL SERVICE CENTER;                                        3,997        

      (e)  PLUS AN ESTIMATED PORTION OF THE STATE MONEY            3,999        

DISTRIBUTED IN THE APPLICABLE FISCAL YEAR TO OTHER SCHOOL          4,000        

DISTRICTS OR EDUCATIONAL SERVICE CENTERS FOR APPROVED UNITS,       4,001        

OTHER THAN PRESCHOOL HANDICAPPED OR GIFTED EDUCATION UNITS,        4,002        

                                                          89     

                                                                 
ATTRIBUTABLE TO THE COSTS OF PROVIDING SERVICES IN THOSE UNITS TO  4,004        

STUDENTS ENTITLED TO ATTEND SCHOOL IN THE DISTRICT;                             

      (f)  MINUS AN ESTIMATED PORTION OF THE STATE MONEY           4,006        

DISTRIBUTED TO THE SCHOOL DISTRICT IN THE APPLICABLE FISCAL YEAR   4,007        

FOR APPROVED UNITS, OTHER THAN PRESCHOOL HANDICAPPED UNITS OR      4,008        

GIFTED EDUCATION UNITS, ATTRIBUTABLE TO THE COSTS OF PROVIDING     4,009        

SERVICES IN THOSE UNITS TO STUDENTS ENTITLED TO ATTEND SCHOOL IN   4,010        

ANOTHER SCHOOL DISTRICT;                                           4,011        

      (g)  PLUS ANY ADDITIONAL AMOUNT PAID IN THE APPLICABLE       4,014        

FISCAL YEAR PURSUANT TO THE VOCATIONAL EDUCATION RECOMPUTATION     4,015        

REQUIRED BY SECTION 45.12 OF AM. SUB. H.B. NO. 117 OF THE 121st    4,021        

GENERAL ASSEMBLY OR FORMER SECTION 50.22 OF AM. SUB. H.B. NO. 215  4,026        

OF THE 122nd GENERAL ASSEMBLY;                                     4,027        

      (h)  PLUS ANY ADDITIONAL AMOUNT PAID IN THE APPLICABLE       4,030        

FISCAL YEAR PURSUANT TO THE SPECIAL EDUCATION RECOMPUTATION        4,031        

REQUIRED BY FORMER DIVISION (I) OF SECTION 3317.023 OF THE         4,033        

REVISED CODE;                                                      4,034        

      (i)  PLUS ANY AMOUNT PAID FOR EQUITY AID IN THE APPLICABLE   4,037        

FISCAL YEAR UNDER SECTION 3317.0213 OF THE REVISED CODE.           4,039        

      (2)  "Enhanced FY 1998 state aid" for a district means its   4,042        

fundamental FY 1998 state aid plus any amounts for which the       4,043        

district was eligible pursuant to division (K) of section          4,045        

3317.024 of the Revised Code, as that division existed in fiscal   4,046        

year 1998.                                                         4,047        

      (3)  "State basic aid" for a district in any fiscal year     4,049        

after FISCAL YEAR 1998 means the SUM OF THE FOLLOWING:             4,051        

      (a)  THE amount computed for the district for basic formula  4,053        

aid and special education aid FUNDING under divisions (A) and      4,056        

(C)(1) of section 3317.022 AND SECTIONS 3317.025 TO 3317.028 of    4,057        

the Revised Code and DPIA aid under section 3317.029 of the        4,059        

Revised Code in the current fiscal year but after BEFORE any       4,060        

deduction OR CREDIT required by division (B), (D), (E), (F), (G),  4,062        

(H), (I), (J), OR (K) of section 3317.023 OR DIVISION (J) OF       4,063        

SECTION 3317.029 of the Revised Code, plus any;                    4,065        

                                                          90     

                                                                 
      (b)  ANY amounts for which the district is eligible          4,068        

pursuant to DIVISION (C) OF SECTION 3317.023, divisions (G) and    4,070        

(Q)(P) of section 3317.024, AND DIVISION (B) OF SECTION 3317.162   4,071        

of the Revised Code, plus any amounts;                             4,072        

      (c)  ANY EQUITY AID for which the district is eligible       4,075        

under section 3317.0213 of the Revised Code.                                    

      (4)  "FY 1998 ADM" for a district means the district's       4,079        

average daily membership as described by division (A) of section   4,080        

3317.02 of the Revised Code, for fiscal year 1998, plus the        4,082        

district's average daily membership based upon full-time                        

equivalency in approved vocational units as certified by the       4,084        

district in fiscal year 1998 under division (A)(2) of section      4,086        

3317.03 of the Revised Code and the district's average daily       4,088        

membership of all handicapped children, except for preschool                    

handicapped children, in classes in the district as certified in   4,089        

fiscal year 1998 under division (A)(3) of section 3317.03 of the   4,091        

Revised Code, as those divisions and sections existed in fiscal    4,092        

year 1998.                                                                      

      (5)  "District's share of state funds for service center     4,094        

units" means an estimated portion of the state money distributed   4,095        

to educational service centers for approved units in fiscal year   4,096        

1998 attributable to the costs of providing services in such       4,097        

units to students, other than preschool handicapped students,      4,098        

residing in the district.                                                       

      (6)  "Fundamental FY 1997 state aid" for a district means    4,100        

the total amount of state money received by the district under     4,102        

sections 3317.022 and 3317.023 of the Revised Code before any      4,103        

deductions required by division (G), (J), (K), or (L) of section   4,104        

3317.023 of the Revised Code, plus any amounts for which the       4,105        

district was eligible pursuant to divisions (M), (N), and (O) of   4,106        

section 3317.024 and sections 3317.0212 and 3317.0213 of the       4,107        

Revised Code, as those divisions and sections existed in fiscal    4,109        

year 1997, plus the district's share of state funds for service                 

center units.                                                      4,110        

                                                          91     

                                                                 
      (B)  UPON REQUEST OF THE DEPARTMENT OF EDUCATION, THE        4,112        

TREASURER OF ANY SCHOOL DISTRICT OR EDUCATIONAL SERVICE CENTER     4,113        

SHALL FURNISH DATA NEEDED TO CALCULATE THE AMOUNTS SPECIFIED IN    4,114        

DIVISIONS (A)(1)(e) AND (f) OF THIS SECTION.  The department of    4,115        

education shall compute the state basic aid guarantee for each     4,117        

school district for the fiscal year as follows:                    4,118        

      (1)  Subtract the amount of state basic aid from the amount  4,121        

of fundamental FY 1998 state aid.  If a negative number, this      4,122        

computation shall be deemed to be zero;.                           4,123        

      (2)  Compute the following amounts:                          4,125        

      (a)  Formula ADM X (state basic aid/formula ADM);            4,128        

      (b)  Formula THE GREATER OF FORMULA ADM OR THREE-YEAR        4,130        

AVERAGE FORMULA ADM X (fundamental FY 1998 state aid/FY 1998       4,133        

ADM).                                                                           

      (3)  If the amount computed under division (B)(2)(b) of      4,136        

this section is greater than the amount computed under division                 

(B)(2)(a) of this section, determine the amount by which it is     4,138        

greater.  If the amount computed under division (B)(2)(b) of this  4,139        

section is not greater than the amount computed under division     4,140        

(B)(2)(a) of this section, this computation shall be deemed to be  4,141        

zero.                                                                           

      (4)  Except as provided in division (C) of this section,     4,144        

the department shall determine for each district the lesser of     4,145        

the amounts computed in divisions (B)(1) and (2)(3) of this        4,147        

section and, if greater than zero, pay the district that amount.   4,149        

      (C)(1)  In fiscal year 1999, if a district's amount under    4,152        

division (B)(4) of this section is zero, the department shall      4,153        

determine CALCULATE for each such district the following:          4,155        

      (2)  Add to SUM OF the district's state basic aid for        4,157        

fiscal year 1999 the sum of PLUS the transportation portion of     4,159        

state aid computed under division (D) of section 3317.022 of the   4,162        

Revised Code for the district for fiscal year 1999;                4,163        

      (3).  If a district's enhanced FY 1998 state aid is greater  4,166        

than the district's amount calculated in division (C)(2) of this   4,168        

                                                          92     

                                                                 
section THAT SUM, then the department shall pay the district IN    4,169        

FISCAL YEAR 1999 one hundred per cent of the difference OR THE     4,170        

AMOUNT REQUIRED BY DIVISION (B)(4) OF THIS SECTION, WHICHEVER IS   4,171        

GREATER.                                                                        

      (D)(1)  The state basic aid guarantee in any fiscal year     4,173        

for a school district with a formula ADM of one hundred fifty or   4,174        

less shall be the greatest of the following amounts:               4,175        

      (a)  The district's state basic aid for the fiscal year;     4,177        

      (b)  The district's fundamental FY 1998 state aid;           4,179        

      (c)  The district's fundamental FY 1997 state aid;           4,181        

      (2)  If in any fiscal year the state basic aid for a school  4,183        

district with a formula ADM of one hundred fifty or less is less   4,184        

than the guarantee amount determined for the district under        4,185        

division (D)(1) of this section, the department of education       4,186        

shall pay the district the amount of the difference.               4,187        

      Sec. 3317.0213.  No money shall be distributed under this    4,196        

section after fiscal year 2001.                                    4,197        

      (A)  As used in this section:                                4,199        

      (1)  "ADM" for any school district means:                    4,201        

      (a)  In fiscal year 1999, the average daily membership       4,204        

reported in fiscal year 1998 under division (A) of section         4,205        

3317.03 of the Revised Code as that section existed in fiscal      4,206        

year 1998, less one-half of the kindergarten students, less        4,207        

three-quarters of the students enrolled in a joint vocational      4,208        

school district, and less any students enrolled in preschool       4,209        

handicapped units approved under division (E) of section 3317.05   4,210        

of the Revised Code, as that section existed in fiscal year FY     4,212        

1998 ADM;                                                                       

      (b)  In fiscal years 2000 and 2001, the formula ADM          4,214        

reported for the previous fiscal year.                             4,215        

      (2)  "Average taxable value" means the average of the        4,218        

amounts certified for a district in the second, third, and fourth  4,219        

preceding fiscal years under divisions (A)(1) and (2) of section   4,220        

3317.021 of the Revised Code.                                                   

                                                          93     

                                                                 
      (3)(a)  "Valuation per pupil" for a district in MEANS:       4,222        

      (a)  IN fiscal year 1999 means, the district's average       4,226        

taxable value, divided by the district's average daily membership  4,228        

for fiscal year 1998, as described in division (A)(1)(a) of this   4,229        

section. FY 1998 ADM;                                              4,230        

      (b)  "Valuation per pupil" for a district in IN a fiscal     4,232        

year that occurs after fiscal year 1999 means, the district's      4,233        

average taxable value, divided by the district's formula ADM for   4,236        

the preceding fiscal year.                                                      

      (4)  "Threshold valuation" means:                            4,238        

      (a)  In fiscal year 1999, the adjusted valuation per pupil   4,241        

of the school district with the two hundred twenty-ninth lowest    4,242        

adjusted valuation per pupil in the state, according to data       4,244        

available at the time of the computation under division (B) of     4,245        

this section;                                                                   

      (b)  In fiscal year 2000, the adjusted valuation per pupil   4,247        

of the district with the one hundred sixty-third lowest such       4,249        

valuation in the state;                                                         

      (c)  In fiscal year 2001, the adjusted valuation per pupil   4,251        

of the district with the one hundred eighteenth lowest such        4,252        

valuation in the state.                                            4,253        

      (5)  "Adjusted valuation per pupil" for a district means an  4,255        

amount calculated in accordance with the following formula:        4,256        

              The district's valuation per pupil -                 4,258        

      ($30,000 X (one minus the district's income factor))         4,259        

      (6)  "Millage rate" means .012 in fiscal year 1999, .011 in  4,261        

fiscal year 2000, and .010 in fiscal year 2001.                    4,262        

      (B)  Beginning in fiscal year 1993, during August of each    4,264        

fiscal year, the department of education shall distribute to each  4,265        

school district meeting the requirements of section 3317.01 of     4,266        

the Revised Code whose adjusted valuation per pupil is less than   4,267        

the threshold valuation, an amount calculated in accordance with   4,268        

the following formula:                                             4,269        

            (The threshold valuation - the district's              4,271        

                                                          94     

                                                                 
                  adjusted valuation per pupil)                    4,272        

                      X millage rate X ADM                         4,273        

      Sec. 3317.0214.  As used in this section, "average taxable   4,283        

value" has the same meaning as in division (A)(2) of section       4,285        

3317.0213 of the Revised Code.                                                  

      Beginning in fiscal year 1993, during each August, the       4,287        

department of education ANNUALLY shall distribute to each school   4,288        

district with a formula ADM less than one thousand and an average  4,290        

taxable value equal to or less than eighty-five thousand dollars   4,291        

per pupil in formula ADM, an amount equal to fifty dollars         4,293        

multiplied by any amount by which one thousand exceeds the         4,294        

district's formula ADM.                                            4,295        

      Sec. 3317.0215.  (A)  As used in this section, "total:       4,304        

      (1)  "TOTAL effective operating tax rate" has MEANS the      4,307        

same meaning as in AMOUNT CERTIFIED UNDER DIVISION (A)(5) OF       4,308        

section 3317.021 of the Revised Code, and "equalized.              4,310        

      (2)  "EQUALIZED tax rate" of a school district means the     4,313        

amount by which a district's total effective operating tax rate                 

exceeds two and three-tenths per cent.                             4,314        

      (3)  "STATE TAXABLE VALUE PER PUPIL" MEANS THE QUOTIENT      4,317        

OBTAINED BY DIVIDING THE TOTAL TAXABLE VALUE OF ALL CITY, LOCAL,   4,318        

AND EXEMPTED VILLAGE SCHOOL DISTRICTS IN THE STATE BY THE SUM OF   4,319        

THE FORMULA ADMs OF ALL CITY, LOCAL, AND EXEMPTED VILLAGE SCHOOL   4,320        

DISTRICTS IN THE STATE.                                            4,321        

      (4)  "DISTRICT'S TAXABLE VALUE PER PUPIL" MEANS THE          4,323        

QUOTIENT OBTAINED BY DIVIDING THE TOTAL TAXABLE VALUE OF THE       4,324        

SCHOOL DISTRICT BY ITS FORMULA ADM.                                4,325        

      (B)  Upon receiving the certifications under division (A)    4,328        

of section 3317.021 of the Revised Code, the department of         4,329        

education shall determine the equalized tax rate for each city,    4,330        

local, and exempted village school district.  If the total         4,331        

effective operating tax rate of a district is greater than two     4,332        

and three-tenths per cent, the district shall receive a payment    4,333        

computed by multiplying the lesser of two-tenths of one per cent   4,334        

                                                          95     

                                                                 
or the equalized tax rate by the amount by which the state         4,335        

taxable value per pupil exceeds the district's total taxable       4,337        

value per pupil TIMES THE DISTRICT'S FORMULA ADM.                  4,338        

      Sec. 3317.0216.  (A)  As used in this section:               4,347        

      (1)  "Total taxes charged and payable for current expenses"  4,350        

means the sum of the taxes charged and payable as certified under  4,351        

division (A)(3) of section 3317.021 of the Revised Code, and the   4,353        

tax liability for the preceding year under any school district     4,354        

income tax levied by the district pursuant to Chapter 5748. of     4,355        

the Revised Code to the extent the revenue from the income tax is  4,356        

allocated or apportioned to current expenses.                      4,357        

      (2)  "State equalization enhancement payments" means any     4,359        

payment made to a school district pursuant to section 3317.0215    4,360        

of the Revised Code for the preceding fiscal year.                 4,361        

      (3)  "Charge-off amount" means the product obtained by       4,363        

multiplying two and three-tenths per cent by adjusted total        4,364        

taxable value.                                                     4,365        

      (4)  "Local share percentage" means a percentage equal to    4,368        

one minus the state share percentage.                                           

      (5)  "Total receipts available for current expenses" of a    4,371        

school district means the sum of total taxes charged and payable   4,372        

for current expenses and the district's state equalization                      

enhancement payments.                                              4,373        

      (6)(5)  "Local share of special education expenses" means    4,375        

the district's local share percentage X the formula amount for     4,377        

the year for which the aid is calculated X the district's total    4,378        

special education weight.                                                       

      (7)  "State share percentage" and "total special education   4,380        

weight" have the same meanings AND RELATED SERVICES ADDITIONAL     4,381        

WEIGHTED COSTS" HAS THE SAME MEANING as in DIVISION (C)(3) OF      4,383        

section 3317.022 of the Revised Code.                                           

      (B)  Upon receiving the certifications under section         4,385        

3317.021 of the Revised Code, the department of education shall    4,386        

determine for each city, local, and exempted village school        4,388        

                                                          96     

                                                                 
district whether the district's charge-off amount is greater than  4,389        

the district's total receipts available for current expenses, and  4,390        

if it is, shall pay the district the amount of the difference.  A  4,391        

payment shall not be made to any school district for which the     4,392        

computation under division (A) of section 3317.022 of the Revised  4,393        

Code equals zero.                                                  4,394        

      (C)(1)  If a district's charge-off amount is equal to or     4,396        

greater than its total receipts available for current expenses,    4,397        

the department shall, in addition to the payment required under    4,398        

division (B) of this section, pay the district the amount of the   4,399        

local share of special education expenses.                         4,400        

      (2)  If a district's charge-off amount is less than its      4,402        

total receipts available for current expenses, the department      4,403        

shall pay the district the difference between the ANY AMOUNT BY    4,404        

WHICH ITS local share of special education expenses and the        4,407        

amount by which the district's AND RELATED SERVICES ADDITIONAL     4,408        

WEIGHTED COSTS EXCEEDS ITS total receipts available for current    4,409        

expenses exceeds MINUS its charge-off amount.                      4,410        

      Sec. 3317.03.   Notwithstanding divisions (A)(1), (B)(1),    4,420        

and (C) of this section, any student enrolled in kindergarten      4,421        

more than half time shall be reported as one-half student under    4,422        

this section.                                                                   

      (A)  The superintendent of each city and exempted village    4,425        

school district and of each educational service center shall, for  4,426        

the schools under the superintendent's supervision, certify to     4,427        

the state board of education on or before the fifteenth day of     4,428        

October in each year for the first full school week in October     4,429        

the formula ADM, which shall consist of the average daily          4,430        

membership during such week of the sum of the following:           4,431        

      (1)  On an FTE basis, the number of students in grades       4,434        

kindergarten through twelve receiving any educational services     4,435        

from the district, except that the following categories of         4,436        

students shall not be included in the determination:               4,437        

      (a)  Students enrolled in adult education classes;           4,439        

                                                          97     

                                                                 
      (b)  Adjacent or other district students enrolled in the     4,441        

district under an open enrollment policy pursuant to section       4,442        

3313.98 of the Revised Code;                                       4,443        

      (c)  STUDENTS RECEIVING SERVICES IN THE DISTRICT PURSUANT    4,445        

TO A COMPACT, COOPERATIVE EDUCATION AGREEMENT, OR A CONTRACT, BUT  4,446        

WHO ARE ENTITLED TO ATTEND SCHOOL IN ANOTHER DISTRICT PURSUANT TO  4,447        

SECTION 3313.64 OR 3313.65 OF THE REVISED CODE;                                 

      (d)  Students for whom tuition is payable pursuant to        4,450        

sections 3317.081 and 3323.141 of the Revised Code.                4,451        

      (2)  On an FTE basis, the number of students entitled to     4,454        

attend school in the district pursuant to section 3313.64 or       4,455        

3313.65 of the Revised Code, but receiving educational services    4,457        

in grades kindergarten through twelve from one or more of the                   

following entities:                                                4,458        

      (a)  A community school pursuant to Chapter 3314. of the     4,461        

Revised Code or Section 50.52 of Amended Substitute House Bill     4,462        

No. 215 of the 122nd general assembly;                                          

      (b)  An alternative school pursuant to sections 3313.974 to  4,464        

3313.979 of the Revised Code as described in division (I)(2)(a)    4,466        

or (b) of this section;                                                         

      (c)  A college pursuant to Chapter 3365. of the Revised      4,468        

Code;                                                                           

      (d)  An adjacent or other school district under an open      4,471        

enrollment policy adopted pursuant to section 3313.98 of the       4,472        

Revised Code;                                                      4,473        

      (e)  An educational service center or cooperative education  4,476        

district;                                                                       

      (f)  Another school district under a cooperative education   4,479        

agreement, COMPACT, OR CONTRACT.                                                

      (3)  One-fourth of the number of students enrolled both in   4,481        

a joint vocational school district and in the district, but who    4,482        

are not receiving regular education services in the school         4,483        

district.                                                                       

      (B)  To enable the department of education to obtain the     4,486        

                                                          98     

                                                                 
data needed to complete the calculation of payments pursuant to    4,487        

this chapter, in addition to the formula ADM, each superintendent  4,489        

shall report separately the following student counts:              4,490        

      (1)  The total average daily membership in regular day       4,492        

classes included in the report under division (A)(1) or (2) of     4,493        

this section for kindergarten, and each of grades one through      4,494        

twelve in schools under the superintendent's supervision;          4,496        

      (2)  The average daily membership of all handicapped         4,498        

preschool children included in a unit approved for the district    4,499        

under section 3317.05 of the Revised Code, in accordance with      4,500        

rules adopted under that section;                                  4,501        

      (3)  The number of children entitled to attend school in     4,503        

the district pursuant to section 3313.64 or 3313.65 of the         4,504        

Revised Code who are participating in a pilot project scholarship  4,506        

program established under sections 3313.974 to 3313.979 of the     4,507        

Revised Code as described in division (I)(2)(a) or (b) of this     4,509        

section, are enrolled in a college under Chapter 3365. of the      4,510        

Revised Code, are enrolled in an adjacent or other school          4,511        

district under section 3313.98 of the Revised Code, are enrolled   4,512        

in a community school established under Chapter 3314. of the       4,514        

Revised Code or Section 50.52 of Amended Substitute House Bill     4,515        

No. 215 of the 122nd general assembly, or are participating in a   4,516        

program operated by a county MR/DD board or a state institution;   4,518        

      (4)  The number of pupils enrolled both in schools under     4,520        

the superintendent's supervision and in joint vocational schools,  4,522        

but who are not in regular day classes in the school district;     4,523        

      (5)  The average daily membership of handicapped children    4,526        

reported under division (A)(1) or (2) of this section receiving    4,527        

category one special education services, described in division     4,528        

(A) of section 3317.013 of the Revised Code;                       4,529        

      (6)  The average daily membership of handicapped children    4,531        

reported under division (A)(1) or (2) of this section receiving    4,532        

category two special education services, described in division     4,533        

(B) of section 3317.013 of the Revised Code;                       4,534        

                                                          99     

                                                                 
      (7)  The average daily membership of handicapped children    4,536        

reported under division (A)(1) or (2) of this section identified   4,538        

as having any of the handicaps specified in division (F)(3) of     4,539        

section 3317.02 of the Revised Code;                                            

      (8)  The average daily membership of pupils reported under   4,541        

division (A)(1) or (2) of this section enrolled in vocational      4,543        

education programs or classes operated by the school district or   4,544        

by another district other than a joint vocational school district               

or by an educational service center;                               4,545        

      (9)  The average number of children transported by the       4,547        

school district ON BOARD-OWNED OR CONTRACTOR-OWNED AND OPERATED    4,548        

BUSES, reported in accordance with rules adopted by the            4,550        

department of education.                                                        

      (C)  Except as otherwise provided in this section for        4,552        

kindergarten students, the average daily membership in divisions   4,553        

(B)(1) to (8) of this section shall be based upon the number of    4,555        

full-time equivalent students.  The state board of education       4,556        

shall adopt rules defining full-time equivalent students and for   4,557        

determining the average daily membership therefrom for the         4,559        

purposes of divisions (A) and (B) of this section.  No child       4,560        

shall be counted as more than a total of one child in the sum of   4,562        

the average daily memberships of a school district under division  4,563        

(A) or under divisions (B)(1) to (8) of this section.  Based on    4,564        

the information reported under this section, the department of     4,565        

education shall determine the total student count, as defined in   4,566        

section 3301.011 of the Revised Code, for each school district.    4,567        

      (D)  The superintendent of each joint vocational and         4,569        

cooperative education school district shall certify to the         4,571        

superintendent of public instruction, in a manner prescribed by                 

the state board of education, the applicable average daily         4,572        

memberships for all students in the joint vocational or            4,574        

cooperative education school district, also indicating the city,   4,575        

local, or exempted village school district of residence for each   4,576        

pupil.                                                                          

                                                          100    

                                                                 
      (E)  In each school of each city, local, exempted village,   4,578        

joint vocational, and cooperative education school district there  4,579        

shall be maintained a record of school membership, which record    4,580        

shall accurately show, for each day the school is in session, the  4,581        

actual membership enrolled in regular day classes.  For the        4,582        

purpose of determining average daily membership, the membership    4,583        

figure of any school shall not include any pupils except those     4,584        

pupils described by division (A) of this section.  The record of   4,586        

membership for each school shall be maintained in such manner      4,587        

that no pupil shall be counted as in membership prior to the       4,588        

actual date of entry in the school and also in such manner that    4,589        

where for any cause a pupil permanently withdraws from the school  4,590        

that pupil shall not be counted as in membership from and after    4,592        

the date of such withdrawal.  There shall not be included in the   4,593        

membership of any school any of the following:                                  

      (1)  Any pupil who has graduated from the twelfth grade of   4,596        

a public high school;                                                           

      (2)  Any pupil who is not a resident of the state;           4,598        

      (3)  Any pupil who was enrolled in the schools of the        4,601        

district during the previous school year when tests were                        

administered under section 3301.0711 of the Revised Code but did   4,602        

not take one or more of the tests required by that section and     4,603        

was not excused pursuant to division (C)(1) of that section;       4,604        

      (4)  Any pupil who has attained the age of twenty-two        4,606        

years, except for the following:                                   4,607        

      (a)  Persons suffering from tuberculosis and receiving       4,609        

treatment in any approved state, county, district, or municipal    4,610        

tuberculosis hospital who have not graduated from the twelfth      4,611        

grade of a public high school;                                     4,612        

      (b)  Veterans of the armed services whose attendance was     4,614        

interrupted before completing the recognized twelve-year course    4,615        

of the public schools by reason of induction or enlistment in the  4,616        

armed forces and who apply for reenrollment in the public school   4,617        

system of their residence not later than four years after          4,618        

                                                          101    

                                                                 
termination of war or their honorable discharge.                   4,619        

      If, however, any veteran described by division (E)(4)(b) of  4,622        

this section elects to enroll in special courses organized for     4,623        

veterans for whom tuition is paid under the provisions of federal  4,624        

laws, or otherwise, that veteran shall not be included in average  4,626        

daily membership.                                                               

      Notwithstanding division (E)(3) of this section, the         4,628        

membership of any school may include a pupil who did not take a    4,629        

test required by section 3301.0711 of the Revised Code if the      4,630        

superintendent of public instruction grants a waiver from the      4,631        

requirement to take the test to the specific pupil.  The           4,632        

superintendent may grant such a waiver only for good cause in      4,633        

accordance with rules adopted by the state board of education.     4,634        

      The average daily membership figure of any local, city, or   4,636        

exempted village school district shall be determined by dividing   4,637        

the figure representing the sum of the number of pupils enrolled   4,638        

during each day the school of attendance is actually open for      4,639        

instruction during the first full school week in October by the    4,641        

total number of days the school was actually open for instruction  4,642        

during that week.  For purposes of state funding, "enrolled"       4,643        

persons are only those pupils who are attending school, those who  4,644        

have attended school during the current school year and are        4,645        

absent for authorized reasons, and those handicapped children      4,646        

currently receiving home instruction.                              4,647        

      The average daily membership figure of any joint vocational  4,649        

or cooperative education school district shall be determined in    4,650        

accordance with rules adopted by the state board of education.     4,651        

      (F)(1)  If the formula ADM for the first full school week    4,654        

in February is at least three per cent greater than that           4,655        

certified for the first full school week in the preceding          4,656        

October, the superintendent of schools of any city or exempted     4,657        

village school district or educational service center shall        4,658        

certify such increase to the superintendent of public              4,659        

instruction.  Such certification shall be submitted no later than  4,660        

                                                          102    

                                                                 
the fifteenth day of February.  For the balance of the fiscal      4,661        

year, beginning with the February payments, the superintendent of  4,662        

public instruction shall use the increased formula ADM in          4,664        

calculating or recalculating the amounts to be allocated in                     

accordance with section 3317.022 of the Revised Code.  In no       4,667        

event shall the superintendent use an increased membership         4,668        

certified to the superintendent after the fifteenth day of         4,669        

February.                                                                       

      (2)  If during the first full school week in February the    4,671        

total number of units for preschool handicapped PRESCHOOL          4,673        

children that are eligible for approval under division (B) of      4,674        

section 3317.05 of the Revised Code exceeds the number of such     4,675        

units that have been approved for the year under such division,    4,676        

the superintendent of schools of any city, exempted village, or    4,678        

cooperative education school district or educational service       4,679        

center shall make the certifications required by this section for  4,680        

such week.  If the state board of education determines additional  4,681        

units can be approved for the fiscal year within any limitations   4,682        

set forth in the acts appropriating moneys for the funding of      4,683        

such units, the board shall approve additional units for the       4,684        

fiscal year on the basis of such average daily membership.  For    4,685        

each unit so approved, the department of education shall pay an    4,686        

amount computed in the manner prescribed in section 3317.161 or    4,688        

3317.19 AND SECTION 3317.162 of the Revised Code.                               

      (3)  If during the first full school week in February the    4,690        

total number of special education units that are eligible for      4,691        

approval under division (D)(1) of section 3317.05 of the Revised   4,692        

Code for a joint vocational school district exceeds the number of  4,693        

those units that have been approved for the year under that        4,694        

division, the superintendent of the district shall make the                     

certifications required by this section for that week.  If the     4,695        

state board of education determines additional units can be        4,696        

approved for the fiscal year within any limitations set forth in   4,697        

the acts appropriating moneys for the funding of such units, the   4,698        

                                                          103    

                                                                 
state board shall approve additional units for the fiscal year on  4,699        

the basis of the average daily membership certified.  For each                  

unit approved, the department of education shall pay an amount     4,700        

computed in the manner prescribed by section 3317.16 of the        4,701        

Revised Code.                                                                   

      (G)(1)(a)  The superintendent of an institution operating a  4,703        

special education program pursuant to section 3323.091 of the      4,704        

Revised Code shall, for the programs under such superintendent's   4,706        

supervision, certify to the state board of education the average   4,707        

daily membership of all handicapped children in classes or         4,708        

programs approved annually by the state board of education, in     4,709        

the manner prescribed by the superintendent of public              4,710        

instruction.                                                                    

      (b)  The superintendent of an institution with vocational    4,713        

education units approved under division (A) of section 3317.05 of  4,714        

the Revised Code shall, for the units under the superintendent's   4,716        

supervision, certify to the state board of education the average   4,717        

daily membership in those units, in the manner prescribed by the   4,718        

superintendent of public instruction.                              4,719        

      (2)  The superintendent of each county MR/DD board that      4,721        

maintains special education classes or units approved by the       4,722        

state board of education pursuant to section 3317.05 of the        4,724        

Revised Code shall do both of the following:                       4,725        

      (a)  Certify to the state board, in the manner prescribed    4,728        

by the board, the average daily membership in classes and units    4,729        

approved under division (D)(1) of section 3317.05 of the Revised   4,730        

Code for each school district that has placed children in the      4,731        

classes or units;                                                               

      (b)  Certify to the state board, in the manner prescribed    4,733        

by the board, the average daily membership in preschool            4,735        

handicapped units approved under division (B) of section 3317.05   4,737        

of the Revised Code.                                                            

      (3)  If during the first full school week in February the    4,739        

average daily membership of the classes or units maintained by     4,740        

                                                          104    

                                                                 
the county MR/DD board that are eligible for approval under        4,741        

division (D)(1) of section 3317.05 of the Revised Code is greater  4,743        

than the average daily membership for the preceding October, the   4,744        

superintendent of the board shall make the certifications          4,745        

required by this section for such week and, if during the first    4,747        

full school week in February the average daily membership of the   4,748        

units maintained by the county MR/DD board that are eligible for   4,749        

approval under division (B) of section 3317.05 of the Revised      4,750        

Code is greater than the average daily membership for the          4,751        

preceding October, the superintendent shall certify the average    4,752        

daily membership for the first full school week in February for    4,753        

such units to the state board of education.  If the state board    4,754        

determines that additional classes or units can be approved for    4,755        

the fiscal year within any limitations set forth in the acts       4,756        

appropriating moneys for the funding of such classes and units,    4,757        

the board shall approve and fund additional units for the fiscal   4,758        

year on the basis of such average daily membership.  For each                   

unit so approved, the department of education shall pay an amount  4,759        

computed in the manner prescribed in section SECTIONS 3317.161     4,761        

AND 3317.162 of the Revised Code.                                               

      (H)  Except as provided in division (I) of this section,     4,764        

when any city, local, or exempted village school district          4,765        

provides instruction for a nonresident pupil whose attendance is   4,766        

unauthorized attendance as defined in section 3327.06 of the       4,767        

Revised Code, that pupil's membership shall not be included in     4,768        

that district's membership figure used in the calculation of that  4,769        

district's formula ADM or included in the determination of any     4,770        

unit approved for the district under section 3317.05 of the        4,771        

Revised Code.  The reporting official shall report separately the  4,772        

average daily membership of all pupils whose attendance in the     4,773        

district is unauthorized attendance, and the membership of each    4,774        

such pupil shall be credited to the school district in which the   4,775        

pupil is entitled to attend school under division (B) of section   4,776        

3313.64 or section 3313.65 of the Revised Code as determined by    4,777        

                                                          105    

                                                                 
the department of education.                                       4,778        

      (I)(1)  A school district admitting a scholarship student    4,780        

of a pilot project district pursuant to division (C) of section    4,781        

3313.976 of the Revised Code may count such student in its         4,782        

average daily membership.                                                       

      (2)  In any year for which funds are appropriated for pilot  4,784        

project scholarship programs, a school district implementing a     4,785        

state-sponsored pilot project scholarship program that year        4,786        

pursuant to sections 3313.974 through 3313.979 of the Revised      4,788        

Code may count in average daily membership:                                     

      (a)  All children residing in the district and utilizing a   4,790        

scholarship to attend kindergarten in any alternative school, as   4,791        

defined in division (A)(9) of section 3313.974 of the Revised      4,792        

Code;                                                                           

      (b)  All children who were enrolled in the district in the   4,794        

preceding year who are utilizing a scholarship to attend any such  4,795        

alternative school.                                                4,796        

      Sec. 3317.05.  (A)  For the purpose of calculating payments  4,806        

under sections 3317.16 and, 3317.161, AND 3317.162 of the Revised  4,808        

Code, the state board of education shall determine for each joint  4,809        

vocational school district and institution, by the last day of     4,810        

January of each year and based on information certified under      4,811        

section 3317.03 of the Revised Code, the number of vocational      4,813        

education units or fractions of units approved by the state board  4,814        

on the basis of standards and rules adopted by the state board.    4,815        

As used in this division, "institution" means an institution       4,816        

operated by a department specified in section 3323.091 of the      4,817        

Revised Code and that provides vocational education programs       4,818        

under the supervision of the division of vocational education of   4,819        

the department of education that meet the standards and rules for  4,820        

these programs, including licensure of professional staff          4,821        

involved in the programs, as established by the state board of     4,822        

education.                                                                      

      (B)  For the purpose of calculating payments under sections  4,825        

                                                          106    

                                                                 
3317.024, 3317.11, 3317.161, 3317.162, and 3317.19 of the Revised  4,826        

Code, the state board shall determine, based on information        4,828        

certified under section 3317.03 of the Revised Code, the           4,829        

following by the last day of January of each year for each         4,830        

educational service center, for each school district, including    4,831        

each cooperative education school district, for each institution   4,832        

eligible for payment under section 3323.091 of the Revised Code,   4,834        

and for each county MR/DD board:  the number of classes operated   4,835        

by the school district, service center, institution, or county     4,836        

MR/DD board for handicapped preschool children, or fraction        4,838        

thereof, including in the case of a district or service center     4,839        

that is a funding agent, classes taught by a licensed teacher      4,840        

employed by that district or service center under section                       

3313.841 of the Revised Code, approved annually by the state       4,841        

board on the basis of standards and rules adopted by the state     4,843        

board.                                                                          

      (C)  For the purpose of calculating payments under sections  4,845        

3317.024, 3317.11, 3317.161, 3317.162, and 3317.19 of the Revised  4,847        

Code, the state board shall determine, based on information        4,848        

certified under section 3317.03 of the Revised Code, the           4,850        

following by the last day of January of each year for each school  4,852        

district, including each cooperative education school district,    4,853        

for each institution eligible for payment under section 3323.091   4,854        

of the Revised Code, and for each county MR/DD board:  the number  4,855        

of preschool handicapped related services units for child study,   4,856        

occupational, physical, or speech and hearing therapy, special     4,857        

education supervisors, and special education coordinators          4,858        

approved annually by the state board on the basis of standards     4,860        

and rules adopted by the state board.                                           

      (D)  For the purpose of calculating payments under sections  4,863        

3317.16 and, 3317.161, AND 3317.162 of the Revised Code, the       4,865        

state board shall determine, based on information certified under  4,866        

section 3317.03 of the Revised Code, the following by the last     4,867        

day of January of each year for each joint vocational school       4,868        

                                                          107    

                                                                 
district, for each institution eligible for payment under section  4,869        

3323.091 of the Revised Code, and for each county MR/DD board:     4,870        

      (1)  The number of classes operated by a joint vocational    4,872        

school district, institution, or county MR/DD board for            4,874        

handicapped children other than handicapped preschool children,    4,875        

or fraction thereof, approved annually by the state board on the   4,877        

basis of standards and rules adopted by the state board;                        

      (2)  The number of related services units for children       4,879        

other than handicapped preschool children for child study,         4,880        

occupational, physical, or speech and hearing therapy, special     4,881        

education supervisors, and special education coordinators          4,882        

approved annually by the state board on the basis of standards     4,884        

and rules adopted by the state board.                                           

      (E)  All of the arithmetical calculations made under this    4,886        

section shall be carried to the second decimal place.  The total   4,887        

number of units for school districts, service centers, and         4,889        

institutions approved annually by the state board under this       4,890        

section shall not exceed the number of units included in the       4,891        

state board's estimate of cost for these units and appropriations  4,893        

made for them by the general assembly.                             4,894        

      In the case of units described in division (D)(1) of this    4,897        

section operated by county MR/DD boards and institutions eligible  4,899        

for payment under section 3323.091 of the Revised Code, the state  4,900        

board shall approve only units for persons who are under age       4,901        

twenty-two on the first day of the academic year, but not less     4,902        

than six years of age on the thirtieth day of September of that    4,903        

year, except that such a unit may include one or more children     4,904        

who are under six years of age on the thirtieth day of September   4,905        

if such children have been admitted to the unit pursuant to rules  4,906        

of the state board.  In the case of handicapped preschool units    4,907        

described in division (B) of this section operated by county       4,909        

MR/DD boards and institutions eligible for payment under section   4,910        

3323.091 of the Revised Code, the state board shall approve only   4,911        

preschool units for children who are under age six but not less    4,912        

                                                          108    

                                                                 
than age three on the thirtieth day of September of the academic   4,913        

year, except that such a unit may include one or more children     4,914        

who are under age three or are age six or over on the thirtieth    4,915        

day of September if such children have been admitted to the unit   4,916        

pursuant to rules of the state board of education.  The number of  4,917        

units for county MR/DD boards and institutions eligible for        4,919        

payment under section 3323.091 of the Revised Code approved by     4,920        

the state board under this section shall not exceed the number                  

that can be funded with appropriations made for such purposes by   4,921        

the general assembly.                                              4,922        

      No unit shall be approved under divisions (B) to (D) of      4,925        

this section unless a plan has been submitted and approved under   4,926        

Chapter 3323. of the Revised Code.                                              

      (F)  For fiscal year 1999 only, the department shall         4,928        

approve units or fractions thereof for gifted children on the      4,929        

basis of standards and rules adopted by the board.                 4,930        

      Sec. 3317.051.  (A)(1)  Notwithstanding sections 3317.05     4,939        

and 3317.11 of the Revised Code, a unit funded pursuant to         4,940        

division (Q)(P)(1) of section 3317.024 or division (A)(2) of       4,942        

section 3317.161 of the Revised Code shall not be approved for                  

state funding in one school district, including any joint          4,944        

vocational or cooperative education school district or any         4,945        

educational service center, to the extent that such unit provides  4,946        

programs in or services to another district which receives         4,947        

payment pursuant to section 3317.04 of the Revised Code.           4,948        

      (2)  Any city, local, exempted village, or cooperative       4,951        

education school district or any educational service center may    4,952        

combine partial unit eligibility for handicapped preschool         4,953        

programs pursuant to section 3317.05 of the Revised Code, and      4,954        

such combined partial units may be approved for state funding in   4,956        

one school district or service center.                             4,957        

      (B)  After units have been initially approved for any        4,959        

fiscal year under section 3317.05 of the Revised Code, no unit     4,961        

shall be subsequently transferred from a school district or        4,963        

                                                          109    

                                                                 
educational service center to another city, exempted village,      4,964        

local, joint vocational, or cooperative education school district  4,965        

or educational service center or to an institution or county       4,967        

MR/DD board solely for the purpose of reducing the financial                    

obligations of the school district in a fiscal year it receives    4,968        

payment pursuant to section 3317.04 of the Revised Code.           4,969        

      Sec. 3317.06.  Moneys paid to school districts under         4,978        

division (L) of section 3317.024 of the Revised Code shall be      4,980        

used for the following independent and fully severable purposes:                

      (A)  To purchase such secular textbooks as have been         4,982        

approved by the superintendent of public instruction for use in    4,983        

public schools in the state and to loan such textbooks to pupils   4,984        

attending nonpublic schools within the district or to their        4,985        

parents and to hire clerical personnel to administer such lending  4,986        

program.  Such loans shall be based upon individual requests       4,987        

submitted by such nonpublic school pupils or parents.  Such        4,988        

requests shall be submitted to the school district in which the    4,989        

nonpublic school is located.  Such individual requests for the     4,990        

loan of textbooks shall, for administrative convenience, be        4,991        

submitted by the nonpublic school pupil or the pupil's parent to   4,993        

the nonpublic school which shall prepare and submit collective                  

summaries of the individual requests to the school district.  As   4,994        

used in this section, "textbook" means any book or book            4,995        

substitute which a pupil uses as a text or text substitute in a    4,996        

particular class or program in the school the pupil regularly      4,997        

attends.                                                           4,998        

      (B)  To provide speech and hearing diagnostic services to    5,000        

pupils attending nonpublic schools within the district.  Such      5,001        

service shall be provided in the nonpublic school attended by the  5,002        

pupil receiving the service.                                       5,003        

      (C)  To provide physician, nursing, dental, and optometric   5,005        

services to pupils attending nonpublic schools within the          5,006        

district.  Such services shall be provided in the school attended  5,007        

by the nonpublic school pupil receiving the service.               5,008        

                                                          110    

                                                                 
      (D)  To provide diagnostic psychological services to pupils  5,010        

attending nonpublic schools within the district.  Such services    5,011        

shall be provided in the school attended by the pupil receiving    5,012        

the service.                                                       5,013        

      (E)  To provide therapeutic psychological and speech and     5,015        

hearing services to pupils attending nonpublic schools within the  5,016        

district.  Such services shall be provided in the public school,   5,017        

in nonpublic schools, in public centers, or in mobile units        5,018        

located on or off of the nonpublic premises.  If such services     5,021        

are provided in the public school or in public centers,            5,022        

transportation to and from such facilities shall be provided by    5,023        

the school district in which the nonpublic school is located.      5,024        

      (F)  To provide guidance and counseling services to pupils   5,026        

attending nonpublic schools within the district.  Such services    5,027        

shall be provided in the public school, in nonpublic schools, in   5,028        

pubic PUBLIC centers, or in mobile units located on or off of the  5,030        

nonpublic premises.  If such services are provided in the public   5,031        

school or in public centers, transportation to and from such       5,032        

facilities shall be provided by the school district in which the   5,033        

nonpublic school is located.                                                    

      (G)  To provide remedial services to pupils attending        5,035        

nonpublic schools within the district.  Such services shall be     5,036        

provided in the public school, in nonpublic schools, in public     5,037        

centers, or in mobile units located on or off of the nonpublic     5,038        

premises.  If such services are provided in the public school or   5,040        

in public centers, transportation to and from such facilities      5,041        

shall be provided by the school district in which the nonpublic    5,042        

school is located.                                                              

      (H)  To supply for use by pupils attending nonpublic         5,044        

schools within the district such standardized tests and scoring    5,045        

services as are in use in the public schools of the state;         5,046        

      (I)  To provide programs for children who attend nonpublic   5,048        

schools within the district and are handicapped children as        5,049        

defined in division (A) of section 3323.01 of the Revised Code or  5,050        

                                                          111    

                                                                 
gifted children.  Such programs shall be provided in the public    5,051        

school, in nonpublic schools, in public centers, or in mobile      5,052        

units located on or off of the nonpublic premises.  If such        5,055        

programs are provided in the public school or in public centers,   5,056        

transportation to and from such facilities shall be provided by    5,057        

the school district in which the nonpublic school is located.      5,058        

      (J)  To hire clerical personnel to assist in the             5,060        

administration of programs pursuant to divisions (B), (C), (D),    5,061        

(E), (F), (G), and (I) of this section and to hire supervisory     5,062        

personnel to supervise the providing of services and textbooks     5,063        

pursuant to this section.                                          5,064        

      (K)  To purchase any secular, neutral, and nonideological    5,066        

computer software, prerecorded video laserdiscs, compact discs,    5,068        

and video cassette cartridges and mathematics or science           5,069        

equipment and materials that are in general use in the public      5,071        

schools of the state and loan such computer software, prerecorded  5,072        

video laserdiscs, compact discs, and video cassette cartridges,    5,074        

equipment, and materials to pupils attending nonpublic schools     5,076        

within the district or to their parents, and to hire clerical      5,077        

personnel to administer the lending program.  Only computer        5,078        

software, prerecorded video laserdiscs, compact discs, and video   5,080        

cassette cartridges, equipment, and materials that are incapable   5,082        

of diversion to religious use and that are susceptible of loan to  5,083        

individual pupils and are furnished for the use of individual      5,084        

pupils shall be purchased and loaned under this division.          5,085        

      (L)  To purchase instructional equipment, including          5,087        

computer hardware, for use by pupils attending nonpublic schools   5,089        

within the district, if such usage only occurs when these pupils   5,091        

are being provided the secular remedial, diagnostic, or            5,092        

therapeutic services pursuant to division (B), (D), (E), (F),      5,094        

(G), or (I) of this section.                                                    

      (M)  To purchase mobile units to be used for the provision   5,097        

of services pursuant to divisions (E), (F), (G), and (I) of this   5,100        

section and to pay for necessary repairs and operating costs       5,101        

                                                          112    

                                                                 
associated with these units.                                       5,102        

      Clerical and supervisory personnel hired pursuant to         5,104        

division (J) of this section shall perform their services in the   5,105        

public schools, in nonpublic schools, public centers, or mobile    5,106        

units where the services are provided to the nonpublic school      5,108        

pupil, except that such personnel may accompany pupils to and      5,109        

from the service sites when necessary to ensure the safety of the  5,110        

children receiving the services.                                   5,111        

      Health services provided pursuant to divisions (B), (C),     5,113        

(D), and (E) of this section may be provided under contract with   5,114        

the department of health, city or general health districts, or     5,115        

private agencies whose personnel are properly licensed by an       5,116        

appropriate state board or agency.                                 5,117        

      Transportation of pupils provided pursuant to divisions      5,119        

(E), (F), (G), and (I) of this section shall be provided by the    5,120        

school district from its general funds and not from moneys paid    5,121        

to it under division (J)(L) of section 3317.024 of the Revised     5,122        

Code unless a special transportation request is submitted by the   5,123        

parent of the child receiving service pursuant to such divisions.  5,124        

If such an application is presented to the school district, it     5,125        

may pay for the transportation from moneys paid to it under        5,126        

division (J)(L) of section 3317.024 of the Revised Code.           5,127        

      No school district shall provide health or remedial          5,129        

services to nonpublic school pupils as authorized by this section  5,130        

unless such services are available to pupils attending the public  5,131        

schools within the district.                                       5,132        

      Materials, equipment, computer software, textbooks, and      5,134        

health and remedial services provided for the benefit of           5,135        

nonpublic school pupils pursuant to this section and the           5,136        

admission of pupils to such nonpublic schools shall be provided    5,137        

without distinction as to race, creed, color, or national origin   5,138        

of such pupils or of their teachers.                               5,139        

      No school district shall provide services for use in         5,141        

religious courses, devotional exercises, religious training, or    5,142        

                                                          113    

                                                                 
any other religious activity.                                      5,143        

      As used in this section, "parent" includes a person          5,145        

standing in loco parentis to a child.                              5,146        

      Notwithstanding section 3317.01 of the Revised Code,         5,148        

payments shall be made under this section to any city, local, or   5,149        

exempted village school district within which is located one or    5,150        

more nonpublic elementary or high schools.                         5,151        

      The allocation of payments for materials, equipment,         5,153        

textbooks, health services, and remedial services to city, local,  5,154        

and exempted village school districts shall be on the basis of     5,155        

the state board of education's estimated annual average daily      5,156        

membership in nonpublic elementary and high schools located in     5,157        

the district.                                                      5,158        

      Payments made to city, local, and exempted village school    5,160        

districts under this section shall be equal to specific            5,161        

appropriations made for the purpose.  All interest earned by a     5,162        

school district on such payments shall be used by the district     5,163        

for the same purposes and in the same manner as the payments may   5,164        

be used.                                                           5,165        

      The department of education shall adopt guidelines and       5,167        

procedures under which such programs and services shall be         5,168        

provided, under which districts shall be reimbursed for            5,169        

administrative costs incurred in providing such programs and       5,170        

services, and under which any unexpended balance of the amounts    5,171        

appropriated by the general assembly to implement this section     5,172        

may be transferred to the auxiliary services personnel             5,173        

unemployment compensation fund established pursuant to section     5,174        

4141.47 of the Revised Code.  The department shall also adopt      5,175        

guidelines and procedures limiting the purchase and loan of        5,176        

computer software, equipment, and materials under division (K) of  5,177        

this section to items that are in general use in the public        5,178        

schools of the state, that are incapable of diversion to           5,179        

religious use, and that are susceptible to individual use rather   5,180        

than classroom use.  Within thirty days after the end of each      5,181        

                                                          114    

                                                                 
biennium, each board of education shall remit to the department    5,182        

all moneys paid to it under division (J)(L) of section 3317.024    5,184        

of the Revised Code and any interest earned on those moneys that                

are not required to pay expenses incurred under this section       5,185        

during the biennium for which the money was appropriated and       5,186        

during which the interest was earned.  If a board of education     5,187        

subsequently determines that the remittal of moneys leaves the     5,188        

board with insufficient money to pay all valid expenses incurred   5,189        

under this section during the biennium for which the remitted      5,190        

money was appropriated, the board may apply to the department of   5,191        

education for a refund of money, not to exceed the amount of the   5,192        

insufficiency.  If the department determines the expenses were     5,193        

lawfully incurred and would have been lawful expenditures of the   5,194        

refunded money, it shall certify its determination and the amount  5,195        

of the refund to be made to the administrator of the bureau of     5,196        

employment services who shall make a refund as provided in         5,197        

section 4141.47 of the Revised Code.                               5,198        

      Sec. 3317.082.  As used in this section, "institution"       5,207        

means a residential facility that receives and cares for children  5,208        

maintained by the department of youth services and that operates   5,209        

a school chartered by the state board of education under section   5,210        

3301.16 of the Revised Code.                                       5,211        

      (A)  On or before the thirty-first day of each January and   5,213        

July, the superintendent of each institution that during the       5,214        

six-month period immediately preceding each January or July        5,215        

provided an elementary or secondary education for any child,       5,216        

other than a child receiving special education under section       5,217        

3323.091 of the Revised Code, shall prepare and submit to the      5,218        

department of education, a statement for each such child           5,219        

indicating the child's name, any school district responsible to    5,220        

pay tuition for the child as determined by the superintendent in   5,221        

accordance with division (C)(2) or (3) of section 3313.64 of the   5,222        

Revised Code, and the period of time during that six-month period  5,223        

that the child received an elementary or secondary education.  If  5,224        

                                                          115    

                                                                 
any school district is responsible to pay tuition for any such     5,225        

child, the department of education, no later than the immediately  5,226        

succeeding last day of February or August, as applicable, shall    5,227        

calculate the amount of the tuition of the district under section  5,228        

3317.08 of the Revised Code for the period of time indicated on    5,229        

the statement and do one of the following:                         5,230        

      (1)  If the tuition amount is equal to or less than the      5,232        

amount of state basic aid funds payable to the district under      5,233        

sections 3317.022 and 3317.023 of the Revised Code, pay to the     5,234        

institution submitting the statement an amount equal to the        5,235        

tuition amount, as provided under division (R)(Q) of section       5,236        

3317.024 of the Revised Code, and deduct the tuition amount from   5,237        

the state basic aid funds payable to the district, as provided     5,238        

under division (F)(2) of section 3317.023 of the Revised Code;     5,240        

      (2)  If the tuition amount is greater than the amount of     5,242        

state basic aid funds payable to the district under sections       5,243        

3317.022 and 3317.023 of the Revised Code, require the district    5,244        

to pay to the institution submitting the statement an amount       5,245        

equal to the tuition amount.                                       5,246        

      (B)  In the case of any disagreement about the school        5,248        

district responsible to pay tuition for a child pursuant to this   5,249        

section, the superintendent of public instruction shall make the   5,250        

determination in any such case in accordance with division (C)(2)  5,251        

or (3) of section 3313.64 of the Revised Code.                     5,252        

      Sec. 3317.10.  (A)  On or before the first day of March of   5,259        

each year, the department of human services shall certify to the   5,260        

state board of education the number of children ages five through  5,261        

seventeen residing in each school district and living in a family  5,262        

that participated in Ohio works first under Chapter 5107. of the   5,263        

Revised Code during the preceding October according to the school  5,264        

district of residence for each child.  Except as provided under    5,265        

division (B) of this section, the number of children so certified  5,266        

in any year shall be used by the department of education in        5,267        

determining the DPIA ADM for purposes of calculating the           5,268        

                                                          116    

                                                                 
distribution of moneys for the ensuing fiscal year provided in     5,269        

section 3317.029 of the Revised Code.                              5,270        

      (B)  Upon the transfer of part of the territory of one       5,272        

school district to the territory of one or more other school       5,273        

districts, the department of education may adjust the number       5,274        

certified under division (A) of this section for any district      5,276        

gaining or losing territory in such a transfer in order to take                 

into account the effect of the transfer on the number of children  5,277        

ages five through seventeen who reside in the district and live    5,278        

in a family that participates in Ohio works first.  Within sixty   5,279        

days of receipt of a request for information from the department   5,281        

of education, the department of human services shall provide any   5,282        

information the department of education determines is necessary    5,283        

to make such adjustments.  The department of education may use     5,284        

the adjusted number for any district for the applicable fiscal     5,285        

year, in lieu of the number certified for the district for that    5,286        

fiscal year under division (A) of this section, in the             5,287        

calculation of the distribution of moneys provided in section      5,288        

3317.029 of the Revised Code.                                                   

      Sec. 3317.11.  (A)  Annually, on or before a date            5,297        

designated by the state board of education, each educational       5,298        

service center governing board shall prepare a budget of           5,300        

operating expenses for the ensuing year for the service center on  5,301        

forms prepared and furnished by the state board of education and   5,302        

shall certify the budget to the state board of education,          5,303        

together with such other information as the board may require.     5,304        

Such budget shall consist of two parts.  Part (A) shall include    5,305        

the cost of the salaries, employers retirement contributions, and  5,306        

travel expenses of supervisory teachers approved by the state      5,307        

board of education.  The amount derived from the calculation for   5,308        

such units in part (A) of the governing board budget shall be the  5,309        

sum of:                                                                         

      (1)  The sum of the minimum salaries calculated, pursuant    5,311        

to section 3317.13 of the Revised Code, for each approved          5,312        

                                                          117    

                                                                 
licensed employee of the governing board;                          5,313        

      (2)  An additional salary allowance proportional to the      5,315        

length of the extended term of service not to exceed three months  5,316        

for each supervisory and child study teacher whose term of         5,317        

service in any year is extended beyond the terms of service of     5,318        

regular classroom teachers;                                        5,319        

      (3)  An allowance equal to fifteen per cent of the amount    5,321        

computed under division (A)(1) of this section;                    5,322        

      (4)  An allowance for necessary travel expenses, for each    5,324        

of the personnel approved in part (A) of the budget, limited to    5,325        

two hundred twenty-three dollars and sixteen cents per month, or   5,326        

two thousand six hundred seventy-eight dollars per year per        5,327        

person employed, whichever is the lesser.  Part                    5,328        

      PART (B) shall include the cost of all other lawful          5,331        

expenditures of the governing board.  The state board of           5,332        

education shall review such budget and may approve, increase, or                

decrease such budget.                                              5,333        

      The governing board shall be reimbursed by the state board   5,336        

of education from state funds for the cost of part (A) of the      5,337        

budget.  The governing board shall be reimbursed by the state                   

board of education, from state funds for the cost of part (B) of   5,339        

the approved budget that is in excess of six dollars and fifty     5,340        

cents times the service center ADM.  If the governing board        5,341        

provides services to city or exempted village school districts     5,342        

pursuant to section 3313.843 of the Revised Code, the governing    5,343        

board shall be reimbursed from state funds for the cost of part    5,344        

(B) of the budget that is in excess of six dollars and fifty       5,345        

cents times the sum of the service center ADM and the formula      5,347        

CLIENT ADMs of the city or exempted village districts to which     5,348        

such services are provided.  The cost of part (B) not in excess    5,349        

of six dollars and fifty cents times the number of such ADM shall  5,350        

be apportioned by the state board of education among the local     5,351        

school districts in the territory of the service center, or among  5,352        

all districts to which the governing board provides services, on   5,354        

                                                          118    

                                                                 
the basis of the total number of pupils in each school district.   5,355        

      If part (B) of the budget is in excess of that approved by   5,357        

the state board of education, the excess cost shall be             5,358        

apportioned by the state board of education among the local        5,359        

school districts in the territory of the service center on the     5,361        

basis of the total number of such pupils in each such school       5,362        

district, provided that a majority of the boards of education of   5,363        

such local school districts approve such apportionment.  The       5,364        

state board of education shall initiate and supervise the          5,365        

procedure by which the local boards shall approve or disapprove    5,366        

such apportionment.                                                             

      The amounts so apportioned shall be certified to the         5,368        

treasurers of the various school districts.  In the case of each   5,369        

district such amount shall be deducted by the state board of       5,370        

education from funds allocated to the district pursuant to         5,371        

division (E) of section 3317.023 of the Revised Code.              5,372        

      The state board of education shall certify to the director   5,374        

of budget and management for payment the total of the deductions,  5,375        

whereupon the amount shall be paid to the governing board of each  5,377        

service center, to be deposited to the credit of a separate fund,  5,379        

hereby created, to be known as the educational service center      5,380        

governing board fund.                                                           

      An educational service center may provide special education  5,383        

to students in its local districts or in client districts.  A      5,384        

service center is eligible for funding under division (J) of       5,386        

section 3317.024 of the Revised Code and eligible for state        5,387        

subsidies for the purchase of school buses under section 3317.07   5,388        

of the Revised Code.  Special education units for gifted children  5,390        

may be operated by a governing board.  Vocational education may                 

be provided by a governing board.  A governing board may conduct   5,392        

driver education for pupils enrolled in a high school for which    5,393        

the state board of education prescribes minimum standards and      5,394        

which is eligible for funding under division (I) of section        5,395        

3317.024 of the Revised Code.                                                   

                                                          119    

                                                                 
      Every local school district shall be provided supervisory    5,397        

services by its governing board as approved by the state board of  5,400        

education.  A city or exempted village school district shall be    5,401        

considered to be provided supervisory services by a governing      5,402        

board if it has entered into an agreement for the governing board  5,403        

to provide any services under section 3313.843 of the Revised      5,404        

Code.  Supervisory services shall not exceed one supervisory       5,406        

teacher for the first fifty classroom teachers employed in all     5,407        

districts that are provided supervisory services calculated under  5,408        

section 3317.023 of the Revised Code and one supervisory teacher   5,409        

for every additional one hundred such classroom teachers so        5,410        

calculated.  Reimbursement for such supervisory services shall be  5,411        

a deduction by the state board of education from the payment to    5,412        

the school district pursuant to division (E) of section 3317.023   5,413        

of the Revised Code.  Deductions for all supervisory services and  5,414        

extended services for supervisory and child study shall be         5,415        

apportioned among local school districts within the territory of   5,416        

the service center and any city or exempted village districts      5,417        

that have entered into agreements with a service center pursuant   5,418        

to section 3313.843 of the Revised Code by the state board of      5,419        

education on the basis of the total number of pupils in each       5,420        

school district, except that where such services are provided to   5,421        

districts other than local school districts within the service     5,423        

center territory and city or exempted village districts having                  

agreements with the service center, such charges shall be          5,424        

apportioned among all participating districts on the basis of the  5,426        

total number of pupils in each school district.  All deductions    5,427        

from state funding to school districts required for reimbursement  5,428        

of governing boards by division (E) of section 3317.023 of the     5,429        

Revised Code shall be made from the total of the payment computed  5,430        

FOR THE DISTRICT under sections 3317.022 and 3317.023 of the       5,432        

Revised Code THIS CHAPTER, after making any other adjustments in   5,434        

that payment required by law.                                                   

      (B)(1)  In addition to the payments made under division (A)  5,436        

                                                          120    

                                                                 
of this section, except as otherwise provided in division (C) of   5,437        

this section, the department of education shall pay each           5,438        

governing board, each fiscal year, an amount equal to thirty-four  5,439        

dollars times the sum of the service center ADM and thirty-four    5,440        

dollars times the sum of the client ADMs of all its client         5,441        

districts.                                                                      

      (2)  IN ADDITION TO OTHER PAYMENTS UNDER THIS SECTION, THE   5,443        

DEPARTMENT SHALL PAY EACH EDUCATIONAL SERVICE CENTER THE AMOUNTS   5,444        

DUE TO IT FROM SCHOOL DISTRICTS PURSUANT TO CONTRACTS, COMPACTS,   5,445        

OR AGREEMENTS UNDER WHICH THE SERVICE CENTER FURNISHES SERVICES    5,446        

TO THE DISTRICTS OR THEIR STUDENTS.  IN ORDER TO RECEIVE PAYMENT   5,447        

UNDER THIS DIVISION, AN EDUCATIONAL SERVICE CENTER SHALL FURNISH   5,448        

EITHER A COPY OF THE APPLICABLE CONTRACT, COMPACT, OR AGREEMENT    5,449        

CLEARLY INDICATING THE AMOUNTS OF THE PAYMENTS, OR A WRITTEN       5,450        

STATEMENT OF THE PAYMENTS OWED SIGNED BY THE SUPERINTENDENT OR                  

TREASURER OF THE RESPONSIBLE SCHOOL DISTRICT.                      5,451        

      THE AMOUNTS PAID TO SERVICE CENTERS UNDER DIVISION (B)(2)    5,453        

OF THIS SECTION SHALL BE DEDUCTED FROM PAYMENTS TO SCHOOL          5,454        

DISTRICTS PURSUANT TO DIVISION (K)(2) OF SECTION 3317.023 OF THE   5,456        

REVISED CODE.                                                                   

      (C)  Beginning with the fiscal year that starts July 1,      5,458        

1997, in lieu of the payment specified under division (B) of this  5,460        

section, each multicounty service center shall receive a payment   5,461        

each fiscal year equal to one per cent times the formula amount    5,462        

times the sum of the service center ADM and the client ADMs of     5,463        

all its client districts.                                                       

      (D)  Each city, exempted village, local, joint vocational,   5,465        

or cooperative education school district shall pay to the          5,467        

governing board of an educational service center any amounts                    

agreed to for each child enrolled in the district who receives     5,468        

special education and related services or vocational education     5,469        

from the educational service center.                                            

      (E)  As used in this section:                                5,471        

      (1)  "Service center ADM" means the total of each of the     5,474        

                                                          121    

                                                                 
following for all local school districts within the limits of an   5,475        

educational service center's territory:                                         

      (a)  The formula ADM;                                        5,477        

      (b)  One-half of the THE kindergarten average daily          5,479        

membership included in the formula ADM;                            5,480        

      (c)  Three-quarters of the number of students reported       5,482        

under division (B)(4) of section 3317.03 of the Revised Code;      5,483        

      (d)  The average daily membership of handicapped preschool   5,486        

children reported under division (B)(2) of section 3317.03 of the  5,487        

Revised Code;                                                                   

      (e)  The number of preschool students certified under        5,489        

division (B) of section 3317.032 of the Revised Code.              5,490        

      (2)  "Client ADM" means the total of each number described   5,493        

under divisions (E)(1)(a) to (e) of this section for a client      5,494        

district.                                                                       

      (3)  "Client district" means a city or exempted village      5,496        

school district that has entered into an agreement to receive      5,497        

services from a service center pursuant to section 3313.843 of     5,498        

the Revised Code.                                                               

      (4)  "Multicounty service center" means a service center     5,500        

that includes territory that formerly was included in the          5,501        

territory of at least three former service centers or county       5,502        

school districts, which former centers or districts engaged in     5,503        

one or more mergers pursuant to section 3311.053 of the Revised    5,504        

Code to form the present center.                                                

      Sec. 3317.161.  As used in this section, "institution"       5,513        

means an institution operated by a department specified in         5,514        

section 3323.091 of the Revised Code.                              5,515        

      (A)(1)  The department of education shall pay each school    5,518        

district, educational service center, institution eligible for     5,519        

payment under section 3323.091 of the Revised Code, or county      5,520        

mr/dd MR/DD board an amount for the total of all classroom units   5,521        

for handicapped preschool children approved under division (B) of  5,522        

section 3317.05 of the Revised Code.  For each unit, the amount                 

                                                          122    

                                                                 
shall be the sum of the minimum salary for the teacher of the      5,523        

unit, calculated on the basis of the teacher's training level and  5,525        

years of experience pursuant to section 3317.13 of the Revised     5,526        

Code, plus fifteen per cent of that minimum salary amount, and     5,527        

eight thousand twenty-three dollars.                                            

      (2)  The department shall pay each school district,          5,529        

educational service center, institution eligible for payment       5,530        

under section 3323.091 of the Revised Code, or county MR/DD board  5,531        

an amount for the total of all related services units for          5,532        

handicapped preschool children approved under division (C) of      5,533        

section 3317.05 of the Revised Code.  For each such unit, the      5,534        

amount shall be the sum of the minimum salary for the teacher of   5,535        

the unit calculated on the basis of the teacher's training level   5,536        

and years of experience pursuant to section 3317.13 of the         5,537        

Revised Code, fifteen per cent of that minimum salary amount, and  5,538        

two thousand one hundred thirty-two dollars.                                    

      (B)  If a school district or educational service center has  5,541        

had additional handicapped preschool units approved for the year   5,542        

under division (F)(2) of section 3317.03 of the Revised Code, or   5,543        

if a county MR/DD board has had additional handicapped preschool   5,544        

units approved under division (G)(3) of section 3317.03 of the     5,545        

Revised Code, the district, educational service center, or board   5,546        

shall receive an additional amount during the last half of the     5,547        

fiscal year.  For each district, center, or board, the additional  5,548        

amount for each unit shall equal fifty per cent of the amount      5,549        

AMOUNTS computed for the unit in the manner prescribed by                       

division (A) of this section AND DIVISION (C) OF SECTION 3317.162  5,550        

OF THE REVISED CODE.                                               5,551        

      (C)(1)  The department shall pay each institution eligible   5,553        

for payment under section 3323.091 of the Revised Code or county   5,555        

MR/DD board an amount for the total of all special education       5,556        

units approved under division (D)(1) of section 3317.05 of the     5,557        

Revised Code.  The amount for each unit shall be the sum of the    5,559        

minimum salary for the teacher of the unit, calculated on the      5,560        

                                                          123    

                                                                 
basis of the teacher's training level and years of experience      5,561        

pursuant to section 3317.13 of the Revised Code, plus fifteen per  5,562        

cent of that minimum salary amount, and eight thousand             5,563        

twenty-three dollars.                                              5,564        

      (2)  The department shall pay each institution eligible for  5,566        

payment under section 3323.091 of the Revised Code or county       5,567        

MR/DD board an amount for the total of all related services units  5,568        

approved under division (D)(2) of section 3317.05 of the Revised   5,569        

Code.  The amount for each unit shall be the sum of the minimum    5,571        

salary for the teacher of the unit, calculated on the basis of     5,572        

the teacher's training level and years of experience pursuant to   5,573        

section 3317.13 of the Revised Code, plus fifteen per cent of      5,574        

that minimum salary amount, and two thousand one hundred           5,575        

thirty-two dollars.                                                5,576        

      (3)  If a county MR/DD board has had additional handicapped  5,578        

preschool units FOR HANDICAPPED CHILDREN OTHER THAN HANDICAPPED    5,579        

PRESCHOOL CHILDREN approved under division (G)(3) of section       5,581        

3317.03 of the Revised Code, the board shall receive an            5,582        

additional amount during the last half of the fiscal year.  For    5,583        

each board, the additional amount for each unit shall equal fifty  5,584        

per cent of the amount computed for the unit in the manner                      

prescribed by division (C)(1) of this section AND DIVISION (C) OF  5,585        

SECTION 3317.162 OF THE REVISED CODE.                              5,586        

      (D)  The department shall pay each institution approved for  5,589        

vocational education units under division (A) of section 3317.05   5,590        

of the Revised Code an amount for the total of all the units       5,592        

approved under that division.  The amount for each unit shall be   5,593        

the sum of the minimum salary for the teacher of the unit,         5,594        

calculated on the basis of the teacher's training level and years  5,595        

of experience pursuant to section 3317.13 of the Revised Code,     5,596        

plus fifteen per cent of that minimum salary amount, and nine      5,597        

thousand five hundred ten dollars.                                 5,598        

      Sec. 50.11 3317.162.  Supplemental Unit Allowance            5,601        

      (A)  As used under IN this heading SECTION:                  5,603        

                                                          124    

                                                                 
      (1)  "State share PERCENTAGE" has the same meaning as in     5,605        

division (B) of section 3317.022 of the Revised Code.              5,606        

      (2)  "Dollar amount" means the amount shown in the           5,608        

following table for the corresponding type of unit and the         5,609        

appropriate fiscal year:                                           5,610        

                                            DOLLAR AMOUNT          5,612        

               TYPE OF UNIT                  FY 1999               5,613        

      Division (B) of R.C. SECTION                                 5,614        

         3317.05 OF THE REVISED CODE          $8,334               5,615        

      Division (C) of R.C. 3317.05                                 5,616        

         THAT SECTION                         $3,234                            

      Division (F) of R.C. 3317.05                                 5,617        

         THAT SECTION                         $3,550                            

      (3)  "Average unit amount" means the amount shown in the     5,620        

following table for the corresponding type of unit and the         5,621        

appropriate fiscal year:                                           5,622        

                                            AVERAGE UNIT AMOUNT    5,624        

                TYPE OF UNIT                    FY 1999            5,625        

      Division (B) of R.C. SECTION                                 5,626        

         3317.05 OF THE REVISED CODE            $7,799             5,627        

      Division (C) of R.C. 3317.05                                 5,628        

         THAT SECTION                           $2,966                          

      Division (F) of R.C. 3317.05                                 5,629        

         THAT SECTION                           $3,251                          

      (B)  In the case of each unit described in division (B),     5,632        

(C), or (F) of section 3317.05 of the Revised Code and allocated   5,634        

to a city, local, or exempted village school district, the         5,635        

Department DEPARTMENT of Education EDUCATION, in addition to the   5,636        

amounts specified in such divisions DIVISION (P)(1) OF SECTION     5,638        

3317.024 AND SECTIONS 3317.16, 3317.161, AND 3317.19 OF THE                     

REVISED CODE, shall pay a supplemental unit allowance equal to     5,639        

the sum of the following amounts:                                  5,640        

      (1)  An amount equal to 50% of the average unit amount for   5,642        

the unit;                                                                       

                                                          125    

                                                                 
      (2)  An amount equal to the percentage of the dollar amount  5,644        

for the unit that equals the district's state share PERCENTAGE.    5,645        

      If, prior to the fifteenth day of May of a fiscal year, a    5,647        

school district's aid computed under section 3317.022 of the       5,648        

Revised Code is recomputed pursuant to section 3317.027 or         5,649        

3317.028 of the Revised Code, the department shall also recompute  5,650        

the district's entitlement to payment under this section           5,651        

utilizing a new state share PERCENTAGE.  Such new state share      5,652        

PERCENTAGE shall be determined using the district's recomputed     5,653        

basic aid amount pursuant to section 3317.027 or 3317.028 of the   5,654        

Revised Code.  During the last six months of the fiscal year, the  5,655        

department shall pay the district a sum equal to one-half of the   5,656        

recomputed payment in lieu of one-half the payment otherwise                    

calculated under this section.                                     5,657        

      (C)(1)  In the case of each unit allocated to a joint        5,659        

vocational school district or institution pursuant to division     5,660        

(A) of section 3317.05 of the Revised Code, the Department         5,662        

DEPARTMENT, in addition to the amount specified in section         5,663        

3317.16 OR 3317.161 of the Revised Code, shall pay a supplemental  5,664        

unit allowance of $7,227 in fiscal year 1999.                      5,665        

      (2)  In the case of each unit described in division (B) or   5,667        

(D)(1) of section 3317.05 of the Revised Code that is allocated    5,669        

to any entity other than a city, exempted village, or local        5,670        

school district, the Department DEPARTMENT, in addition to the     5,671        

amount specified in section 3317.161 of the Revised Code, shall                 

pay a supplemental unit allowance of $7,799 in fiscal year 1999.   5,672        

      (3)  In the case of each unit described in division (C) or   5,675        

(D)(2) of section 3317.05 of the Revised Code and allocated to     5,676        

any entity other than a city, exempted village, or local school    5,677        

district, the Department DEPARTMENT, in addition to the amounts    5,678        

specified in section 3317.161 of the Revised Code, shall pay a                  

supplemental unit allowance of $2,966 in fiscal year 1999.         5,679        

      (4)  In the case of each unit described in division (F) of   5,682        

section 3317.05 of the Revised Code and allocated to any entity    5,683        

                                                          126    

                                                                 
other than a city, exempted village, or local school district,                  

the Department DEPARTMENT, in addition to the amounts specified    5,684        

in section 3317.161 of the Revised Code, shall pay a supplemental  5,685        

unit allowance of $3,251 in fiscal year 1999.                      5,686        

      Sec. 3317.19.  (A)  As used in this section, "total unit     5,695        

allowance" means an amount equal to the sum of the following:      5,696        

      (1)  The total of the salary allowances for the teachers     5,698        

employed in the cooperative education school district for all      5,699        

units approved under division (B) or (C) of section 3317.05 of     5,700        

the Revised Code.  The salary allowance for each unit shall equal  5,701        

the minimum salary for the teacher of the unit calculated on the   5,702        

basis of the teacher's training level and years of experience      5,703        

pursuant to section 3317.13 of the Revised Code.                   5,704        

      (2)  Fifteen per cent of the total computed under division   5,707        

(A)(1) of this section;                                                         

      (3)  The total of the unit operating allowances for all      5,709        

approved units.  The amount of each allowance shall equal one of   5,711        

the following:                                                                  

      (a)  Eight thousand twenty-three dollars times the number    5,713        

of preschool handicapped units or fraction thereof approved for    5,714        

the year under division (B) of section 3317.05 of the Revised      5,715        

Code;                                                              5,716        

      (b)  Two thousand one hundred thirty-two dollars times the   5,718        

number of units or fraction thereof approved for the year under    5,719        

division (C) of section 3317.05 of the Revised Code.               5,720        

      (B)  The state board of education shall compute and          5,722        

distribute to each cooperative education school district for each  5,723        

fiscal year an amount equal to the sum of the following:           5,724        

      (1)  An amount equal to the total of the amounts credited    5,726        

to the cooperative education school district pursuant to division  5,727        

(K) of section 3317.023 of the Revised Code;                       5,728        

      (2)  The total unit allowance;                               5,730        

      (3)  An amount for driver education pursuant to division     5,732        

(H)(I) of section 3317.024 of the Revised Code;                    5,733        

                                                          127    

                                                                 
      (4)  An amount for assisting in providing free lunches to    5,735        

needy children and an amount for assisting needy school districts  5,736        

in purchasing necessary equipment for food preparation pursuant    5,737        

to division (K) of section 3317.024 of the Revised Code.           5,738        

      (C)  If a cooperative education school district has had      5,741        

additional special education units approved for the year under     5,742        

division (F)(2) of section 3317.03 of the Revised Code, the        5,743        

district shall receive an additional amount during the last half   5,744        

of the fiscal year.  For each unit, the additional amount shall    5,745        

equal fifty per cent of the amount computed under division (A) of  5,747        

this section for a unit approved under division (B) of section     5,748        

3317.05 of the Revised Code.                                                    

      Sec. 3317.20.  NOTWITHSTANDING SECTIONS 3317.01 TO 3317.19   5,750        

OF THE REVISED CODE AND SECTION 18 OF AMENDED SUBSTITUTE HOUSE     5,755        

BILL NO. 650 OF THE 122nd GENERAL ASSEMBLY, AS AMENDED, PAYMENT    5,757        

TO SCHOOL DISTRICTS FOR THE COSTS OF SPECIAL EDUCATION AND         5,758        

RELATED SERVICES SHALL BE CALCULATED UNDER THE PROVISIONS OF       5,759        

THOSE SECTIONS, WITH THE MODIFICATIONS SPECIFIED BY THIS SECTION.  5,760        

      (A)(1)  IN FISCAL YEAR 1999 THE DEPARTMENT OF EDUCATION      5,763        

SHALL NOT APPLY THE COST-OF-DOING-BUSINESS FACTOR TO STUDENTS IN   5,764        

A SCHOOL DISTRICT'S CATEGORY ONE, TWO, AND THREE SPECIAL                        

EDUCATION ADMs FOR PURPOSES OF THE CALCULATION UNDER DIVISION (A)  5,766        

OF SECTION 3317.022 OF THE REVISED CODE, DETERMINING THE STATE     5,768        

SHARE PERCENTAGE AS DEFINED IN DIVISION (B) OF THAT SECTION, AND   5,769        

CALCULATING THE AMOUNT FOR RELATED SERVICES UNDER DIVISION         5,770        

(C)(2)(b) OF THAT SECTION;                                         5,771        

      (2)  IN FISCAL YEAR 2000, THE DEPARTMENT SHALL APPLY FIFTY   5,773        

PER CENT OF THE COST-OF-DOING-BUSINESS FACTOR TO STUDENTS IN A     5,774        

SCHOOL DISTRICT'S CATEGORY ONE, TWO, AND THREE SPECIAL EDUCATION   5,775        

ADMs FOR PURPOSES OF THE CALCULATION UNDER DIVISION (A) OF THAT    5,776        

SECTION, DETERMINING THE STATE SHARE PERCENTAGE UNDER DIVISION     5,778        

(B) OF THAT SECTION, AND CALCULATING THE AMOUNT FOR RELATED        5,779        

SERVICES UNDER DIVISION (C)(2)(b) OF THAT SECTION.                 5,780        

      (B)(1)  FOR PURPOSES OF DIVISION (A) OF SECTION 3317.022 OF  5,783        

                                                          128    

                                                                 
THE REVISED CODE, DETERMINING THE STATE SHARE PERCENTAGE AS        5,785        

DEFINED IN DIVISION (B) OF THAT SECTION, CALCULATING THE AMOUNT    5,786        

FOR RELATED SERVICES UNDER DIVISION (C)(2)(b) OF THAT SECTION,     5,788        

AND DETERMINING PER PUPIL AMOUNTS UNDER SECTION 3317.0212 OF THE                

REVISED CODE AND SECTION 18 OF AMENDED SUBSTITUTE HOUSE BILL 650   5,794        

OF THE 122nd GENERAL ASSEMBLY, AS AMENDED, THE DEPARTMENT SHALL    5,795        

ADJUST A DISTRICT'S FORMULA ADM OR THREE-YEAR AVERAGE FORMULA ADM  5,797        

BY MULTIPLYING THE SUM OF ITS CATEGORY TWO AND THREE SPECIAL       5,798        

EDUCATION ADMs BY 1.4.                                                          

      (2)  FOR PURPOSES OF CALCULATING TOTAL SPECIAL EDUCATION     5,800        

WEIGHT AS DEFINED IN DIVISION (B) OF SECTION 3317.022 OF THE       5,802        

REVISED CODE THE DEPARTMENT SHALL USE A WEIGHT OF 2.4 FOR          5,803        

STUDENTS IN CATEGORY TWO AND THREE SPECIAL EDUCATION ADMs INSTEAD  5,804        

OF A WEIGHT OF 3.01.                                                            

      (C)(1)  AS USED IN THIS DIVISION, "SPEECH FTE" MEANS THE     5,807        

NUMBER OF STUDENTS WHOSE ONLY HANDICAP OR PRIMARY HANDICAP IS A    5,808        

SPEECH-LANGUAGE HANDICAP, ADJUSTED TO REFLECT THE PERCENTAGE OF    5,810        

WEEKS OF THE SCHOOL YEAR THE STUDENT HAS IN EFFECT AN INDIVIDUAL   5,812        

EDUCATION PLAN FOR THE HANDICAP AND RECEIVES SPEECH-LANGUAGE                    

SERVICES.  EACH SCHOOL DISTRICT SHALL PROVIDE INFORMATION AS       5,813        

REQUESTED BY THE DEPARTMENT TO DETERMINE ITS SPEECH FTE.           5,814        

      (2)  THE DEPARTMENT SHALL ANNUALLY PAY EACH DISTRICT AN      5,816        

AMOUNT FOR SERVICES TO STUDENTS WHOSE ONLY HANDICAP OR PRIMARY     5,817        

HANDICAP IS A SPEECH-LANGUAGE HANDICAP, EQUAL TO THE SUM OF THE    5,818        

FOLLOWING:                                                                      

      (a)  THE SPEECH FTE TIMES THE FORMULA AMOUNT TIMES 0.11;     5,821        

      (b)  THE STATE SHARE PERCENTAGE, AS ADJUSTED UNDER THIS      5,823        

SECTION, TIMES THE SPEECH FTE TIMES THE FORMULA AMOUNT TIMES       5,825        

0.11.                                                                           

      (D)  THE DEPARTMENT SHALL ANNUALLY PAY EACH DISTRICT AN      5,828        

AMOUNT FOR SCHOOL PSYCHOLOGICAL SERVICES EQUAL TO THE SUM OF THE   5,829        

FOLLOWING:                                                                      

      (1)  FORMULA ADM, AS ADJUSTED UNDER DIVISION (B)(1) OF THIS  5,832        

SECTION, TIMES THE FORMULA AMOUNT TIMES 0.003;                     5,833        

                                                          129    

                                                                 
      (2)  THE STATE SHARE PERCENTAGE, AS ADJUSTED UNDER DIVISION  5,835        

(B)(1) OF THIS SECTION, TIMES FORMULA ADM, AS ADJUSTED UNDER       5,837        

DIVISION (B)(1) OF THIS SECTION, TIMES THE FORMULA AMOUNT TIMES    5,839        

0.003.                                                                          

      (E)  THE DEPARTMENT SHALL NOT APPROVE SPECIAL EDUCATION OR   5,842        

RELATED SERVICES UNITS, OTHER THAN FOR HANDICAPPED PRESCHOOL       5,843        

CHILDREN, IN COUNTY MR/DD BOARDS.  EACH STUDENT PROVIDED SPECIAL   5,844        

EDUCATION OR RELATED SERVICES BY A COUNTY MR/DD BOARD, OTHER THAN  5,845        

HANDICAPPED PRESCHOOL CHILDREN, SHALL BE INCLUDED, ON AN FTE       5,846        

BASIS, IN THE FORMULA ADM AND CATEGORY ONE, TWO, OR THREE SPECIAL  5,848        

EDUCATION ADM OF THE SCHOOL DISTRICT IN WHICH THE STUDENT IS       5,849        

ENTITLED TO ATTEND SCHOOL PURSUANT TO SECTION 3313.64 OR 3313.65   5,850        

OF THE REVISED CODE.  EACH SCHOOL DISTRICT SHALL REPORT UNDER      5,851        

SECTION 3317.03 OF THE REVISED CODE THE TOTAL AVERAGE DAILY        5,853        

MEMBERSHIP OF SUCH STUDENTS, THE AVERAGE DAILY MEMBERSHIP OF       5,854        

THOSE STUDENTS RECEIVING CATEGORY ONE SPECIAL EDUCATION SERVICES   5,855        

FOR THE HANDICAPS DESCRIBED IN DIVISION (A) OF SECTION 3317.013    5,857        

OF THE REVISED CODE, THE AVERAGE DAILY MEMBERSHIP OF THOSE         5,859        

STUDENTS RECEIVING CATEGORY TWO SPECIAL EDUCATION SERVICES FOR     5,860        

THE HANDICAPS DESCRIBED IN DIVISION (B) OF THAT SECTION, AND THE   5,861        

AVERAGE DAILY MEMBERSHIP OF THOSE STUDENTS RECEIVING CATEGORY      5,862        

THREE SPECIAL EDUCATION SERVICES FOR THE HANDICAPS DESCRIBED IN    5,863        

DIVISION (F)(3) OF SECTION 3317.02 OF THE REVISED CODE.            5,865        

      THE DEPARTMENT SHALL DEDUCT FROM PAYMENTS TO A SCHOOL        5,868        

DISTRICT UNDER THIS CHAPTER AND PAY TO A COUNTY MR/DD BOARD THE    5,869        

AMOUNTS AGREED BY THE DISTRICT AND THE COUNTY MR/DD BOARD IN A     5,871        

CONTRACT, COMPACT, OR OTHER AGREEMENT AS PAYMENT FOR THE SPECIAL   5,872        

EDUCATION AND RELATED SERVICES PROVIDED BY THE COUNTY MR/DD BOARD  5,874        

FOR THE DISTRICT'S STUDENTS.                                       5,875        

      (F)  IN DETERMINING "FUNDAMENTAL FY 1997 STATE AID" AND      5,878        

"FUNDAMENTAL FY 1998 STATE AID" UNDER SECTION 3317.0212 OF THE     5,880        

REVISED CODE AND "FY 1998 STATE AID" UNDER SECTION 18 OF AMENDED   5,883        

SUBSTITUTE HOUSE BILL NO. 650 OF THE 122nd GENERAL ASSEMBLY, AS    5,887        

AMENDED, THE DEPARTMENT SHALL ADD TO THOSE AMOUNTS AN ESTIMATED    5,888        

                                                          130    

                                                                 
PORTION OF THE STATE MONEY DISTRIBUTED IN THE APPLICABLE FISCAL                 

YEAR TO COUNTY MR/DD BOARDS FOR APPROVED SPECIAL EDUCATION AND     5,890        

RELATED SERVICES UNITS, OTHER THAN PRESCHOOL HANDICAPPED UNITS,    5,891        

ATTRIBUTABLE TO THE COSTS OF PROVIDING SERVICES IN THOSE UNITS TO               

STUDENTS ENTITLED TO ATTEND SCHOOL IN THE DISTRICT.  UPON REQUEST  5,892        

OF THE DEPARTMENT, A COUNTY MR/DD BOARD SHALL FURNISH DATA NEEDED  5,894        

TO CALCULATE THESE AMOUNTS.                                                     

      (G)  IN DETERMINING "FY 1997 ADM" AND "FY 1998 ADM" AS       5,899        

DEFINED IN SECTION 3317.02 OF THE REVISED CODE, THE DEPARTMENT     5,901        

SHALL ADD TO THOSE NUMBERS THE AVERAGE DAILY MEMBERSHIP ON AN FTE  5,902        

BASIS ENTITLED TO ATTEND SCHOOL IN THE DISTRICT PURSUANT TO        5,903        

SECTION 3313.64 OR 3313.65 OF THE REVISED CODE BUT RECEIVING       5,905        

EDUCATIONAL SERVICES IN APPROVED UNITS FROM A COUNTY MR/DD BOARD.  5,906        

THE DEPARTMENT ALSO SHALL ADJUST THOSE ADMs BY MULTIPLYING THE     5,907        

SUM OF THE CATEGORY TWO AND THREE SPECIAL EDUCATION ADMs BY 1.4.   5,909        

UPON REQUEST OF THE DEPARTMENT, A COUNTY MR/DD BOARD SHALL         5,910        

FURNISH DATA NEEDED TO CALCULATE THESE AMOUNTS.                    5,911        

      (H)  IN DETERMINING "STATE BASIC AID" UNDER SECTION          5,914        

3317.0212 OF THE REVISED CODE AND "FY 1999 STATE AID," "FY 2000    5,916        

STATE AID," "FY 2001 STATE AID," AND "FY 2002 STATE AID" UNDER     5,919        

SECTION 18 OF AMENDED SUBSTITUTE HOUSE BILL NO. 650 OF THE 122nd   5,923        

GENERAL ASSEMBLY, AS AMENDED, THE DEPARTMENT SHALL USE THE         5,924        

AMOUNTS SPECIFIED IN THOSE SECTIONS, AS MODIFIED BY DIVISIONS (A)  5,926        

TO (G) OF THIS SECTION.                                            5,927        

      (I)(1)  THE RATIO OF STUDENTS IN A SCHOOL DISTRICT'S         5,930        

CATEGORY ONE SPECIAL EDUCATION ADM TO LICENSED PROFESSIONALS       5,931        

APPROPRIATELY TRAINED IN SPECIAL EDUCATION SHALL NOT EXCEED        5,932        

SIXTEEN TO ONE.                                                                 

      (2) THE RATIO OF STUDENTS IN A SCHOOL DISTRICT'S CATEGORY    5,934        

TWO AND THREE SPECIAL EDUCATION ADMs TO LICENSED PROFESSIONALS     5,935        

APPROPRIATELY TRAINED IN SPECIAL EDUCATION SHALL NOT EXCEED EIGHT  5,936        

TO ONE.                                                            5,937        

      Sec. 3318.06.  After receipt of the conditional approval of  5,946        

the Ohio school facilities commission, the school district board   5,948        

                                                          131    

                                                                 
by a majority of all of its members shall, if it desires to        5,949        

proceed with the project, declare all of the following by          5,950        

resolution:                                                                     

      (A)  That with a net bonded indebtedness of within five      5,952        

thousand dollars of the required level of indebtedness or by       5,953        

issuing bonds in an amount equal to the required percentage of     5,954        

the project costs, the district is unable to provide adequate      5,955        

classroom facilities without assistance from the state;            5,956        

      (B)  That to qualify for such state assistance it is         5,958        

necessary to levy a tax outside the ten-mill limitation the        5,959        

proceeds of which shall be used to pay the cost of maintaining     5,961        

the classroom facilities included in the project, except that in                

any year the district's adjusted valuation per pupil is greater    5,962        

than the state-wide median adjusted valuation per pupil one-half   5,963        

of the proceeds of the tax shall be used for such maintenance and  5,964        

one-half of such proceeds shall be used to pay the cost of the     5,965        

purchase of the classroom facilities from the state;               5,966        

      (C)  That the question of such tax levy shall be submitted   5,968        

to the electors of the school district at the next general or      5,969        

primary election, if there be a general or primary election not    5,970        

less than seventy-five and not more than ninety-five days after    5,971        

the day of the adoption of such resolution or, if not, at a        5,972        

special election to be held at a time specified in the resolution  5,973        

which shall be not less than seventy-five days after the day of    5,974        

the adoption of the resolution and which shall be in accordance    5,975        

with the requirements of section 3501.01 of the Revised Code.      5,976        

      Such resolution shall also state, if such be the case, that  5,978        

the question of issuing bonds of the board shall be combined in a  5,979        

single proposal with the question of such tax levy.  More than     5,980        

one election under this section may be held in any one calendar    5,981        

year.  Such resolution shall specify both of the following:        5,982        

      (1)  That the rate which it is necessary to levy shall be    5,984        

at the rate of one-half mill for each one dollar of valuation,     5,985        

and that such tax shall be levied until the purchase price is      5,987        

                                                          132    

                                                                 
paid but in no case longer than twenty-three years;                5,988        

      (2)  That the proceeds of the tax shall be used to pay the   5,990        

cost of maintaining the classroom facilities included in the       5,991        

project, except in any year the district's adjusted valuation per  5,992        

pupil is greater than the statewide median adjusted valuation per  5,993        

pupil one-half of the proceeds of the tax shall be used for such   5,994        

maintenance and one-half of the proceeds of the tax shall be used  5,995        

to pay the cost of the purchase of the classroom facilities from                

the state under sections 3318.01 to 3318.20 of the Revised Code.   5,996        

      A copy of such resolution shall after its passage and not    5,998        

less than seventy-five days prior to the date set therein for the  5,999        

election be certified to the county board of elections.            6,000        

      If the question of issuing bonds of the board is to be       6,002        

combined with the question of levying the tax, the THE resolution  6,003        

of the school district board, in addition to meeting other         6,005        

applicable requirements of section 133.18 of the Revised Code,     6,006        

shall state that the amount of bonds to be issued will be either   6,007        

whatever amount may be necessary to raise the net bonded           6,008        

indebtedness of the school district to within five thousand        6,009        

dollars of the required level of indebtedness calculated for the   6,010        

year preceding the year in which such resolution is adopted or an  6,011        

amount equal to the required percentage of the basic project       6,012        

costs, whichever is greater and state that the maximum maturity    6,013        

of the bonds which, notwithstanding section 133.20 of the Revised  6,014        

Code, may be any number of years not exceeding twenty-three as     6,015        

determined by the board.  In estimating the amount of bonds to be  6,016        

issued, the board shall take into consideration the amount of      6,017        

moneys then in the bond retirement fund and the amount of moneys   6,018        

to be collected for and disbursed from the bond retirement fund    6,019        

during the remainder of the year in which the resolution of        6,020        

necessity is adopted.                                                           

      Notice of the election shall include the fact that the tax   6,022        

levy shall be at the rate of one-half mill for each one dollar of  6,023        

valuation, that the levy shall be made until the purchase price    6,025        

                                                          133    

                                                                 
is paid but in no case longer than twenty-three years, and that    6,026        

the proceeds of the tax shall be used to pay the cost of           6,027        

maintaining the classroom facilities included in the project,      6,028        

except in any year the district's adjusted valuation per pupil is  6,029        

greater than the statewide median adjusted valuation per pupil     6,030        

one-half of the proceeds of the tax shall be used for such         6,031        

maintenance and one-half of the proceeds of the tax shall be used  6,032        

to pay the cost of the purchase of the classroom facilities from                

the state under sections 3318.01 to 3318.20 of the Revised Code.   6,033        

      The form of the ballot to be used at such election shall     6,035        

be:                                                                6,036        

      "A majority affirmative vote is necessary for passage.       6,038        

      Shall bonds be issued by the Board of Education of the       6,040        

............ (here insert name of school district) for the         6,041        

purpose of ............ (here insert purpose of bond issue) in     6,042        

either an amount sufficient to raise the net indebtedness of the   6,043        

school district to within five thousand dollars of ............    6,044        

(here insert five, six, or seven per cent depending on the         6,045        

district's required level of indebtedness) of the total value of   6,046        

all property in the school district as listed and assessed for     6,047        

taxation on the tax duplicate for the year ............ (here      6,048        

insert the year preceding the year in which the resolution         6,049        

declaring the necessity of the election was adopted) or an amount  6,051        

equal to ............ (here insert the required percentage of the  6,052        

basic project costs), whichever is greater, and a levy of taxes    6,053        

be made outside of the ten-mill limitation for a maximum period    6,054        

of ............ (here insert longest maturity) years to pay the    6,055        

principal and interest of such bonds, the amount of such bonds     6,056        

being estimated to be ............ (here insert estimated amount   6,057        

of bond issue) for which the levy of taxes is estimated by the     6,058        

county auditor to average ............ (here insert number of      6,059        

mills) mills for each one dollar of valuation, which amounts to    6,060        

............ (here insert rate expressed in dollars and cents)     6,061        

for each one hundred dollars of valuation?"                        6,062        

                                                          134    

                                                                 
                               and                                 6,064        

      "Shall an additional levy of taxes be made for the benefit   6,066        

of the ............ (name of school district), the proceeds of     6,067        

which shall be used to pay the cost of maintaining the classroom   6,069        

facilities included in the project, except that in any year the    6,070        

district's adjusted valuation per pupil is greater than the                     

state-wide median adjusted valuation per pupil one-half of the     6,071        

proceeds of the tax shall be used for such maintenance and         6,072        

one-half of such proceeds shall be used to pay the cost of the     6,073        

purchase of classroom facilities from the state, at the rate of    6,074        

one-half mill for each one dollar of valuation until the purchase  6,076        

price is paid but in no case longer than twenty-three years?       6,077        

         _______________________________________________           6,079        

                 FOR THE BOND ISSUE AND TAX LEVY                   6,080        

         _______________________________________________           6,081        

                 AGAINST THE BOND ISSUE AND TAX LEVY               6,082        

         _______________________________________________   "       6,083        

      Where it is not necessary to include the question of         6,086        

issuing bonds of the school district board with the question of    6,087        

levying the tax, the first paragraph of the foregoing ballot form  6,088        

shall be omitted and the question to be voted on shall be "For     6,089        

the Tax Levy" and "Against the Tax Levy."                          6,090        

      (D)  If it is necessary for the school district to acquire   6,092        

a site for the classroom facilities to be acquired pursuant to     6,093        

sections 3318.01 to 3318.20 of the Revised Code, the district      6,094        

board may propose either to issue bonds of the board or to levy a  6,095        

tax to pay for the acquisition of such site, and may combine the   6,096        

question of doing so with the questions specified in division (C)               

of this section.  Bonds issued under this division for the         6,097        

purpose of acquiring a site are a general obligation of the        6,098        

school district and are Chapter 133. securities.                   6,099        

      The form of that portion of the ballot to include the        6,101        

question of either issuing bonds or levying a tax for site         6,102        

acquisition purposes shall be one of the following:                6,103        

                                                          135    

                                                                 
      (1)  "Shall bonds be issued by the board of education of     6,105        

the ......... (name of the school district) for the purpose of     6,106        

.......... (purpose of the bond issue, which shall be for the      6,107        

purpose of acquiring a site for classroom facilities) in the       6,108        

principal amount of ........ (principal amount of the bond                      

issue), to be repaid annually over a maximum period of .........   6,109        

(maximum number of years over which the principal of the bonds     6,110        

may be paid) years, and an annual levy of property taxes be made   6,111        

outside the ten-mill limitation, estimated by the county auditor   6,112        

to average over the repayment period of the bond issue .......     6,113        

(number of mills) mills for each one dollar of tax valuation,      6,114        

which amount to ....... (rate expressed in dollars and cents) for               

each one hundred dollars of valuation?"                            6,115        

      (2)  "Shall an additional levy of taxes be made for the      6,117        

benefit of the ......... (name of the school district) .........   6,118        

for the purpose ......... (purpose of the levy, which shall be     6,119        

for the purpose of acquiring a site for classroom facilities) in   6,120        

the sum of ......... (annual amount the levy is to produce) and a  6,121        

levy of taxes to be made outside of the ten-mill limitation        6,122        

estimated by the county auditor to average ........ (number of     6,123        

mills) mills for each one hundred dollars of valuation, for a                   

period of ......... (number of years the millage is to be          6,124        

imposed) years?"                                                                

      Where it is necessary to combine the question of issuing     6,126        

bonds of the school district and levying a tax as described in     6,127        

division (C) of this section with the question of issuing bonds    6,128        

of the school district for acquisition of a site, the question     6,129        

specified in division (C) of this section to be voted on shall be  6,130        

"For the Bond Issues and the Tax Levy" and "Against the Bond                    

Issues and the Tax Levy."  In the event it is not necessary to     6,131        

include the question of issuing bonds as described in division     6,133        

(C) of this section, the question specified in that division to    6,134        

be voted on shall be "For the Bond Issue and the Tax Levy" and     6,135        

"Against the Bond Issue and the Tax Levy."                                      

                                                          136    

                                                                 
      Where it is necessary to combine the question of issuing     6,137        

bonds of the school district and levying a tax as described in     6,138        

division (C) of this section with the question of levying a tax    6,139        

for the acquisition of a site, the question specified in division  6,140        

(C) of this section to be voted on shall be "For the Bond Issue    6,141        

and the Tax Levies" and "Against the Bond Issue and the Tax                     

Levies."  In the event it is not necessary to include the          6,142        

question of issuing bonds as described in division (C) of this     6,144        

section, the question specified in that division to be voted on    6,145        

shall be "For the Tax Levies" and "Against the Tax Levies."        6,146        

      If a majority of those voting upon a proposition hereunder   6,148        

which includes the question of issuing bonds vote in favor         6,149        

thereof, and if the agreement provided for by section 3318.08 of   6,150        

the Revised Code has been entered into, the school district board  6,151        

may proceed under Chapter 133. of the Revised Code, with the       6,152        

issuance of bonds or bond anticipation notes in accordance with    6,153        

the terms of the agreement.                                        6,154        

      Sec. 3318.08.  If the requisite favorable vote on the        6,163        

election is obtained, the Ohio school facilities commission, upon  6,165        

certification of the results of the election to it, shall enter    6,166        

into a written agreement with the school district board for the    6,167        

construction and sale of the project, which agreement shall        6,168        

include, but need not be limited to, the following provisions:     6,169        

      (A)  The sale and issuance of bonds or notes in              6,171        

anticipation thereof, as soon as practicable after the execution   6,172        

of the agreement, in either an amount which will raise the net     6,173        

bonded indebtedness of the school district, as of the date of the  6,174        

resolution authorizing the issuance of such bonds or notes, to     6,175        

within five thousand dollars of the required level of              6,176        

indebtedness calculated for the year preceding the year in which   6,177        

the resolution declaring the necessity of the election was         6,179        

adopted or an amount equal to the required percentage of the       6,180        

basic project costs, whichever is greater; provided, that if at    6,181        

that time the county treasurer of each county in which the school  6,182        

                                                          137    

                                                                 
district is located has not commenced the collection of taxes on   6,183        

the general duplicate of real and public utility property for      6,184        

such year, the school district board shall authorize the issuance  6,185        

of a first installment of bond anticipation notes in an amount     6,186        

specified by the agreement, which amount shall not exceed an       6,187        

amount necessary to raise the net bonded indebtedness of the       6,188        

school district as to the date of such authorizing resolution to   6,189        

within five thousand dollars of the required level of              6,190        

indebtedness for the preceding year.  In the event that a first    6,191        

installment of bond anticipation notes is issued, the school       6,192        

district board shall, as soon as practicable after the county      6,193        

treasurer of each county in which the school district is located   6,194        

has commenced the collection of taxes on the general duplicate of  6,195        

real and public utility property for the year in which the         6,196        

resolution declaring the necessity of the election was adopted,    6,197        

authorize the issuance of a second and final installment of bond   6,198        

anticipation notes or a first and final issue of bonds.  The       6,199        

combined value of the first and second installment of bond         6,200        

anticipation notes or the value of the first and final issue of    6,201        

bonds shall be equal to either an amount which will raise the net  6,202        

indebtedness of the school district as of the date of such         6,203        

authorizing resolution to within five thousand dollars of the      6,204        

required level of indebtedness, or an amount equal to the          6,205        

required percentage of the project costs, whichever is greater.    6,206        

The proceeds of any such bonds shall be used first to retire any   6,207        

bond anticipation notes.  Otherwise, the proceeds of such bonds    6,208        

and of any bond anticipation notes, except the premium and         6,209        

accrued interest thereon, shall be deposited in the school                      

district's project construction fund.  In determining the amount   6,210        

of net indebtedness for the purpose of fixing the amount of an     6,211        

issue of either bonds or bond anticipation notes, gross            6,212        

indebtedness shall be reduced by moneys in the bond retirement     6,213        

fund only to the extent of the moneys therein on the first day of  6,214        

the year preceding the year in which the resolution authorizing    6,215        

                                                          138    

                                                                 
such bonds or notes is adopted.  Should there be a decrease in     6,217        

the tax valuation of the school district so that the amount of     6,218        

indebtedness which can be incurred on the tax duplicates for the   6,219        

year in which the resolution declaring the necessity of the        6,220        

election was adopted is less than the amount of the first          6,221        

installment of bond anticipation notes, there shall be paid from   6,222        

the school district's project construction fund to the school      6,223        

district's bond retirement fund to be applied against such notes   6,225        

an amount sufficient to cause the net indebtedness of the school   6,226        

district, as of the first day of the year following the year in    6,227        

which the resolution declaring the necessity of the election was   6,228        

adopted, to be within five thousand dollars of the required level  6,229        

of indebtedness for the year in which that resolution was          6,230        

adopted.  The maximum amount of indebtedness to be incurred by     6,231        

any school district board as its share of the cost of the project  6,232        

is either an amount which will cause its net indebtedness, as of   6,233        

the first day of the year following the year in which the          6,234        

resolution declaring the necessity of the bond issue was adopted,  6,235        

to be within five thousand dollars of the required level of        6,236        

indebtedness calculated for the year preceding the year in which   6,237        

that resolution was adopted or an amount equal to the required     6,239        

percentage of the basic project costs, whichever is greater.  All  6,240        

bonds and bond anticipation notes shall be issued in accordance    6,241        

with Chapter 133. of the Revised Code, and notes may be renewed    6,242        

as provided in section 133.22 of the Revised Code.                 6,243        

      (B)  The transfer of such funds of the school district       6,245        

board available for the project, together with the proceeds of     6,246        

the sale of the bonds or notes, except premium, accrued interest,  6,247        

and interest included in the amount of the issue, to the school    6,248        

district's project construction fund;                              6,249        

      (C)  The levy of the tax authorized at the election for the  6,251        

payment of maintenance costs or the cost of purchasing the         6,253        

classroom facilities;                                                           

      (D)  Ownership of the project during the period of           6,255        

                                                          139    

                                                                 
construction, which shall be divided between the commission and    6,257        

the school district board in proportion to their respective        6,258        

contributions to the school district's project construction fund;  6,260        

      (E)  The transfer of the state's interest in the project to  6,262        

the school district upon completion of the project;                6,263        

      (F)  The insurance of the project by the school district     6,265        

from the time there is an insurable interest therein and so long   6,266        

as any part of the purchase price remains unpaid, in such amounts  6,267        

and against such risks as the commission shall require; provided,  6,270        

that the cost of any required insurance until the project is       6,271        

completed shall be a part of the basic project cost;                            

      (G)  The certification by the director of budget and         6,273        

management that funds are available and have been set aside to     6,274        

meet the state's share of the basic project cost as approved by    6,276        

the controlling board pursuant to section 3318.04 of the Revised   6,277        

Code;                                                                           

      (H)  Authorization of the school district board to           6,279        

advertise for and receive construction bids for the project, for   6,280        

and on behalf of the commission, and to award contracts in the     6,282        

name of the state subject to approval by the commission;           6,283        

      (I)  Provisions for the disbursement of moneys from the      6,285        

school district's project account upon issuance by the commission  6,287        

or the commission's designated representative of vouchers for      6,288        

work done to be certified to the commission by the treasurer of    6,291        

the school district board;                                         6,292        

      (J)  Disposal of any balance left in the school district's   6,294        

project construction fund upon completion of the project;          6,296        

      (K)  Prohibition against alienation of any interest in the   6,298        

project by the school district board or its successor in interest  6,299        

without the consent of the commission so long as any part of the   6,301        

purchase price of the project remains unpaid, but in no case       6,302        

longer than twenty-three years;                                    6,303        

      (L)  Limitations upon use of the project or any part of it   6,305        

so long as any part of the purchase price of the project remains   6,306        

                                                          140    

                                                                 
unpaid, but in no case longer than twenty-three years;             6,307        

      (M)  Suspension of the power to issue bonds or notes by the  6,309        

school district board for permanent improvements without the       6,310        

prior consent of the commission for so long as any part of the     6,312        

purchase price of the project remains unpaid, but in no case       6,313        

longer than twenty-three years;                                    6,314        

      (N)  Provision for vesting absolute interest in the project  6,316        

in the school district board when the purchase price has been      6,317        

paid or at the expiration of the period of twenty-three years;     6,318        

      (O)(N)  Provision for deposit of an executed copy of the     6,320        

agreement in the office of the commission and the office of the    6,322        

county recorder of the county or counties in which the project is  6,323        

situated;                                                          6,324        

      (P)(O)  Provision for termination of the contract and        6,326        

release of the funds encumbered at the time of the conditional     6,327        

approval, if the proceeds of the sale of the bonds of the school   6,328        

district board are not paid into the school district's project     6,329        

construction fund and if bids for the construction of the project  6,332        

have not been taken within such period after the execution of the  6,333        

agreement as may be fixed by the commission;                       6,334        

      (Q)(P)  Provision for the school district to maintain the    6,336        

project in accordance with a plan approved by the commission;      6,338        

      (R)(Q)  Provision that all state funds reserved and          6,341        

encumbered to pay the state share of the cost of the project       6,342        

pursuant to section 3318.03 of the Revised Code be spent on the    6,343        

construction or acquisition of the project prior to the            6,344        

expenditure of any funds provided by the school district to pay    6,345        

for its share of the project cost, unless the school district      6,346        

certifies to the commission that expenditure by the school         6,347        

district is necessary to maintain the tax-exempt status of notes   6,348        

or bonds issued by the school district to pay for its share of     6,349        

the project cost in which case, the school district may commit to  6,350        

spend, or spend, a portion of the funds it provides.               6,351        

      Sec. 3318.10.  When such working drawings, specifications,   6,360        

                                                          141    

                                                                 
and estimates of cost have been approved by the school district    6,361        

board and the Ohio school facilities commission, the treasurer of  6,363        

the school district board shall advertise for construction bids    6,364        

for the project once a week for four THREE consecutive weeks in a  6,365        

newspaper published in and of general circulation in the county    6,366        

in which the project is located.  Such notices shall state that    6,367        

plans and specifications for the project are on file in the        6,368        

office of the commission and such other place as may be            6,370        

designated in such notice, and the time and place when and where   6,371        

bids therefor will be received.                                                 

      The form of proposal to be submitted by bidders shall be     6,373        

supplied by the commission.  Bidders may be permitted to bid upon  6,376        

all the branches of work and materials to be furnished and                      

supplied, upon any branch thereof, or upon all or any thereof.     6,377        

      A proposal shall be invalid and not considered unless it     6,379        

meets the requirements of section 153.54 of the Revised Code.      6,380        

      When the construction bids for all branches of work and      6,382        

materials have been tabulated, the commission shall cause to be    6,383        

prepared a revised estimate of the basic project cost based upon   6,386        

the lowest responsible bids received.  If such revised estimate    6,387        

exceeds the estimated basic project cost as approved by the        6,388        

controlling board pursuant to section 3318.04 of the Revised       6,389        

Code, no contracts may be entered into pursuant to this section    6,390        

unless such revised estimate is approved by the commission and by  6,391        

the controlling board referred to in section 3318.04 of the        6,392        

Revised Code.  When such revised estimate has been prepared, and   6,393        

after such approvals are given, if necessary, and if the school    6,394        

district board has caused to be transferred to the project         6,395        

construction fund the proceeds from the sale of the first or       6,397        

first and final installment of its bonds or bond anticipation      6,398        

notes pursuant to the provision of written agreement required by   6,399        

division (B) of section 3318.08 of the Revised Code, and when the  6,400        

director of budget and management has certified that there is a    6,401        

balance in the appropriation, not otherwise obligated to pay       6,402        

                                                          142    

                                                                 
precedent obligations, pursuant to which the state's share of      6,403        

such revised estimate is required to be paid, the contract for                  

all branches of work and materials to be furnished and supplied,   6,404        

or for any branch thereof as determined by the school district     6,405        

board, shall be awarded by the school district board to the        6,406        

lowest responsible bidder subject to the approval of the           6,407        

commission.  Such award shall be made within thirty SIXTY days     6,410        

after the date on which the bids are opened, and the successful    6,412        

bidder shall enter into a contract within ten days after the       6,413        

successful bidder is notified of the award of the contract.        6,414        

      Subject to the approval of the commission, the school        6,416        

district board may reject all bids and readvertise.  Any contract  6,419        

made under this section shall be made in the name of the state     6,420        

and executed on its behalf by the president and treasurer of the   6,421        

school district board.                                                          

      The provisions of sections 153.50 to 153.99 of the Revised   6,423        

Code, which are applicable to construction contracts of boards of  6,424        

education and which permit bids to be made for two or more trades  6,425        

or kinds of work, shall apply to construction contracts for the    6,426        

project to the exclusion of sections 153.01 to 153.20 of the       6,427        

Revised Code applicable to state construction contracts.           6,428        

      The remedies afforded to any subcontractor, materials        6,430        

supplier, laborer, mechanic, or persons furnishing material or     6,432        

machinery for the project under sections 1311.26 to 1311.32 of     6,433        

the Revised Code, shall apply to contracts entered into under      6,434        

this section and the itemized statement required by section        6,435        

1311.26 of the Revised Code shall be filed with the school         6,436        

district board.                                                                 

      Sec. 3319.22.  (A)  The state board of education shall       6,445        

adopt rules establishing the standards and requirements for        6,446        

obtaining temporary, associate, provisional, and professional      6,447        

educator licenses of any categories, types, and levels the board   6,448        

elects to provide.  However, no educator license shall be          6,449        

required for teaching children two years old or younger.                        

                                                          143    

                                                                 
      (B)  Any rules the state board of education adopts, amends,  6,451        

or rescinds for educator licenses under this section, division     6,452        

(D) of section 3301.07 of the Revised Code, or any other law       6,453        

shall be adopted, amended, or rescinded under Chapter 119. of the  6,454        

Revised Code except as follows:                                    6,455        

      (1)  Notwithstanding division (D) of section 119.03 and      6,458        

division (A)(1) of section 119.04 of the Revised Code, the         6,459        

effective date of any rules, or amendment or rescission of any     6,460        

rules, shall not be as prescribed in division (D) of section       6,461        

119.03 and division (A)(1) of section 119.04 of the Revised Code.  6,462        

Instead, the rules or amendment or rescission of the rules shall   6,463        

take effect only after the rules or amendment or rescission of     6,464        

the rules are filed with the chairpersons of the committees of     6,465        

the house of representatives and of the senate that are primarily  6,466        

responsible for consideration of education legislation and only    6,467        

after approval by the general assembly through adoption of a       6,468        

concurrent resolution by a majority of the members of both the                  

house of representatives and the senate.  The effective date of    6,469        

the rules shall be the later of the date on which the concurrent   6,470        

resolution is adopted by the second house or the date prescribed   6,471        

by section 3319.23 of the Revised Code.                                         

      (2)  Notwithstanding the authority to adopt, amend, or       6,473        

rescind emergency rules in division (F) of section 119.03 of the   6,474        

Revised Code, this authority shall not apply to the state board    6,475        

of education with regard to rules for educator licenses.           6,476        

      (C)(1)  The rules adopted under this section establishing    6,478        

standards requiring additional coursework for the renewal of any   6,479        

educator license shall require a school district and a chartered   6,480        

nonpublic school to establish local professional development       6,481        

committees.  In a nonpublic school, the chief administrative       6,482        

officer shall establish the committees in any manner acceptable                 

to such officer.  The committees established under this division   6,483        

shall determine whether coursework that a district or chartered    6,484        

nonpublic school teacher proposes to complete meets the            6,485        

                                                          144    

                                                                 
requirement of the rules.  The rules shall establish a procedure   6,486        

by which a teacher may appeal the decision of a local              6,487        

professional development committee.                                             

      (2)  In any school district in which there is no exclusive   6,489        

representative established under Chapter 4117. of the Revised      6,490        

Code, the professional development committees shall be             6,491        

established as described in division (C)(2) of this section.       6,492        

      Not later than the effective date of the rules adopted       6,494        

under this section, the board of education of each school          6,495        

district shall establish the structure for one or more local       6,496        

professional development committees to be operated by such school  6,497        

district.  The committee structure so established by a district                 

board shall remain in effect unless within thirty days prior to    6,498        

an anniversary of the date upon which the current committee        6,499        

structure was established, the board provides notice to all        6,500        

affected district employees that the committee structure is to be  6,501        

modified.  Professional development committees may have a                       

district level or building level scope of operations, and may be   6,502        

established with regard to particular grade or age levels for      6,503        

which an educator license is designated.                           6,504        

      Each professional development committee shall consist of at  6,506        

least three classroom teachers employed by the district, one       6,507        

principal employed by the district, and one other employee of the  6,508        

district appointed by the district superintendent.  For            6,509        

committees with a building level scope, the teacher and principal  6,510        

members shall be assigned to that building, and the teacher                     

members shall be elected by majority vote of the classroom         6,511        

teachers assigned to that building.  For committees with a         6,512        

district level scope, the teacher members shall be elected by      6,513        

majority vote of the classroom teachers of the district, and the   6,514        

principal member shall be elected by a majority vote of the                     

principals of the district, unless there are two or fewer          6,515        

principals employed by the district, in which case the one or two  6,516        

principals employed shall serve on the committee.  If a committee  6,517        

                                                          145    

                                                                 
has a particular grade or age level scope, the teacher members     6,518        

shall be licensed to teach such grade or age levels, and shall be  6,519        

elected by majority vote of the classroom teachers holding such a               

license and the principal shall be elected by all principals       6,520        

serving in buildings where any such teachers serve.  The district  6,521        

superintendent shall appoint a replacement to fill any vacancy     6,522        

that occurs on a professional development committee, except in     6,523        

the case of vacancies among the elected classroom teacher                       

members, which shall be filled by vote of the remaining members    6,524        

of the committee so selected.                                      6,525        

      Terms of office on professional development committees       6,527        

shall be prescribed by the district board establishing the         6,528        

committees.  The conduct of elections for members of professional  6,529        

development committees shall be prescribed by the district board   6,530        

establishing the committees.  A professional development                        

committee may include additional members, except that the          6,531        

majority of members on each such committee shall be classroom      6,532        

teachers employed by the district.  Any member appointed to fill   6,533        

a vacancy occurring prior to the expiration date of the term for   6,534        

which a predecessor was appointed shall hold office as a member    6,535        

for the remainder of that term.                                                 

      The initial meeting of any professional development          6,537        

committee, upon election and appointment of all committee          6,538        

members, shall be called by a member designated by the district    6,539        

superintendent.  At this initial meeting, the committee shall      6,540        

select a chairperson and such other officers the committee deems   6,541        

necessary, and shall adopt rules for the conduct of its meetings.               

Thereafter, the committee shall meet at the call of the            6,542        

chairperson or upon the filing of a petition with the district     6,543        

superintendent signed by a majority of the committee members       6,544        

calling for the committee to meet.                                              

      (3)  In the case of a school district in which an exclusive  6,546        

representative has been established pursuant to Chapter 4117. of   6,547        

the Revised Code, professional development committees shall be     6,548        

                                                          146    

                                                                 
established in accordance with any collective bargaining           6,549        

agreement in effect in the district that includes provisions for                

such committees.                                                   6,550        

      If the collective bargaining agreement does not specify a    6,552        

different method for the selection of teacher members of the       6,553        

committees, the exclusive representative of the district's         6,554        

teachers shall select the teacher members.                                      

      If the collective bargaining agreement does not specify a    6,556        

different structure for the committees, the board of education of  6,557        

the school district shall establish the structure, including the   6,558        

number of committees and the number of teacher and administrative  6,559        

members on each committee; the specific administrative members to  6,560        

be part of each committee; whether the scope of the committees     6,561        

will be district levels, building level, or by type of grade or                 

age levels for which educator licenses are designated; the         6,562        

lengths of terms for members; the manner of filling vacancies on   6,563        

the committees; and the frequency and time and place of meetings.  6,564        

However, in all cases, EXCEPT AS PROVIDED IN DIVISION (C)(4) OF    6,565        

THIS SECTION, there shall be a majority of teacher members of any  6,567        

professional development committee, there shall be at least five   6,568        

total members of any professional development committee, and the   6,569        

exclusive representative shall designate replacement members in    6,570        

the case of vacancies among teacher members, unless the                         

collective bargaining agreement specifies a different method of    6,571        

selecting such replacements.                                       6,572        

      (4)  WHENEVER AN ADMINISTRATOR'S COURSEWORK PLAN IS BEING    6,575        

DISCUSSED OR VOTED UPON, THE LOCAL PROFESSIONAL DEVELOPMENT        6,576        

COMMITTEE SHALL, AT THE REQUEST OF ONE OF ITS ADMINISTRATIVE       6,577        

MEMBERS, CAUSE A MAJORITY OF THE COMMITTEE TO CONSIST OF           6,578        

ADMINISTRATIVE MEMBERS BY REDUCING THE NUMBER OF TEACHER MEMBERS   6,579        

VOTING ON THE PLAN.                                                6,580        

      Sec. 3323.091.  (A)  The department of mental health, the    6,589        

department of mental retardation and developmental disabilities,   6,590        

the department of youth services, and the department of            6,591        

                                                          147    

                                                                 
rehabilitation and correction shall establish and maintain         6,592        

special education programs for handicapped children in             6,593        

institutions under their jurisdiction according to standards       6,594        

adopted by the state board of education.  The superintendent of    6,595        

each institution providing special education under this chapter    6,596        

may apply to the state department of education for unit funding,   6,597        

which shall be paid in accordance with section SECTIONS 3317.161   6,598        

AND 3317.162 of the Revised Code.                                  6,599        

      (B)  On or before the thirtieth day of June of each year,    6,601        

the superintendent of each institution that during the school      6,602        

year provided special education pursuant to this section shall     6,603        

prepare a statement for each handicapped child under twenty-two    6,604        

years of age who has received special education.  The statement    6,605        

shall contain the child's name and the name of the child's school  6,606        

district of residence.  Within sixty days after receipt of such    6,607        

statement, the department of education shall perform one of the    6,608        

following:                                                         6,609        

      (1)  For any child except a handicapped preschool child      6,611        

described in division (B)(2) of this section, pay to the           6,612        

institution submitting the statement an amount equal to the        6,613        

tuition calculated under division (A) of section 3317.08 of the    6,614        

Revised Code for the period covered by the statement, and deduct   6,615        

the same from the amount of state funds, if any, payable under     6,616        

sections 3317.022 and 3317.023 of the Revised Code, to the         6,617        

child's school district of residence or, if the amount of such     6,618        

state funds is insufficient, require the child's school district   6,619        

of residence to pay the institution submitting the statement an    6,620        

amount equal to the amount determined under this division.         6,621        

      (2)  For any handicapped preschool child not included in a   6,623        

unit approved under division (B) of section 3317.05 of the         6,624        

Revised Code, perform the following:                               6,625        

      (a)  Pay to the institution submitting the statement an      6,627        

amount equal to the tuition calculated under division (B) of       6,628        

section 3317.08 of the Revised Code for the period covered by the  6,629        

                                                          148    

                                                                 
statement, except that in calculating the tuition under that       6,630        

section the operating expenses of the institution submitting the   6,631        

statement under this section shall be used instead of the          6,632        

operating expenses of the school district of residence;            6,633        

      (b)  Deduct from the amount of state funds, if any, payable  6,635        

under sections 3317.022 and 3317.023 of the Revised Code to the    6,636        

child's school district of residence an amount equal to the        6,637        

amount paid under division (B)(2)(a) of this section.              6,638        

      Sec. 3323.12.  The board of education of a school district   6,647        

shall provide home instruction for handicapped children three to   6,648        

twenty-one years of age who are unable to attend school, even      6,649        

with the help of special transportation.  The board may arrange    6,650        

for the provision of home instruction for a child by a                          

cooperative agreement or contract with a county board of mental    6,651        

retardation and developmental disabilities or other educational    6,652        

agency.  For the purposes of determining average formula ADM       6,653        

under section 3317.03 of the Revised Code, five hours of home      6,655        

instruction shall be equivalent to attendance for five school      6,656        

days.                                                                           

      Sec. 3345.122.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  6,658        

A MEMBER OF A BOARD OF TRUSTEES OF AN INSTITUTION OF HIGHER        6,659        

EDUCATION, AS DEFINED IN SECTION 3345.12 OF THE REVISED CODE, IS   6,660        

NOT LIABLE IN DAMAGES IN A CIVIL ACTION FOR INJURY, DEATH, OR                   

LOSS TO PERSON OR PROPERTY THAT ALLEGEDLY IS CAUSED BY AN          6,661        

EXPENDITURE MADE OR A CONTRACT ENTERED INTO BY THE INSTITUTION OF  6,662        

HIGHER EDUCATION UNLESS THE TRUSTEE ACTED WITH MALICIOUS PURPOSE,  6,663        

IN BAD FAITH, OR IN A WANTON OR RECKLESS MANNER WITH RESPECT TO    6,664        

THE EXPENDITURE OR CONTRACT.                                                    

      Sec. 3734.57.  (A)  For the purposes of paying the state's   6,673        

long-term operation costs or matching share for actions taken      6,674        

under the "Comprehensive Environmental Response, Compensation,     6,675        

and Liability Act of 1980," 94 Stat. 2767, 42 U.S.C.A. 9601, as    6,676        

amended; paying the costs of measures for proper clean-up of       6,677        

sites where polychlorinated biphenyls and substances, equipment,   6,678        

                                                          149    

                                                                 
and devices containing or contaminated with polychlorinated        6,679        

biphenyls have been stored or disposed of; paying the costs of     6,680        

conducting surveys or investigations of solid waste facilities or  6,681        

other locations where it is believed that significant quantities   6,682        

of hazardous waste were disposed of and for conducting             6,683        

enforcement actions arising from the findings of such surveys or   6,684        

investigations; and paying the costs of acquiring and cleaning     6,685        

up, or providing financial assistance for cleaning up, any         6,686        

hazardous waste facility or solid waste facility containing        6,687        

significant quantities of hazardous waste, that constitutes an     6,688        

imminent and substantial threat to public health or safety or the  6,689        

environment; and, from July 1, 1995 1997, through June 30, 1997    6,691        

1999, for the purposes of paying the costs of administering and    6,692        

enforcing the laws pertaining to solid wastes, infectious wastes,  6,693        

and construction and demolition debris, including, without         6,694        

limitation, ground water evaluations related to solid wastes,      6,695        

infectious wastes, and construction and demolition debris, under   6,696        

this chapter and Chapter 3714. of the Revised Code and any rules   6,697        

adopted under them, and paying a share of the administrative       6,698        

costs of the environmental protection agency pursuant to section   6,699        

3745.014 of the Revised Code, the following fees are hereby        6,700        

levied on the disposal of solid wastes in this state:              6,701        

      (1)  One dollar per ton on and after July 1, 1993;           6,703        

      (2)  An additional seventy-five cents per ton on and after   6,706        

July 1, 1997, through June 30, 1999.                               6,707        

      The owner or operator of a solid waste disposal facility     6,709        

shall collect the fees levied under this division as a trustee     6,710        

for the state and shall prepare and file with the director of      6,711        

environmental protection monthly returns indicating the total      6,712        

tonnage of solid wastes received for disposal at the gate of the   6,713        

facility and the total amount of the fees collected under this     6,714        

division.  Not later than thirty days after the last day of the    6,715        

month to which such a return applies, the owner or operator shall  6,716        

mail to the director the return for that month together with the   6,717        

                                                          150    

                                                                 
fees collected during that month as indicated on the return.  The  6,718        

owner or operator may request an extension of not more than        6,719        

thirty days for filing the return and remitting the fees,          6,720        

provided that the owner or operator has submitted such a request   6,722        

in writing to the director together with a detailed description    6,723        

of why the extension is requested, the director has received the   6,724        

request not later than the day on which the return is required to  6,725        

be filed, and the director has approved the request.  If the fees  6,726        

are not remitted within sixty days after the last day of the       6,727        

month during which they were collected, the owner or operator      6,728        

shall pay an additional fifty per cent of the amount of the fees   6,729        

for each month that they are late.                                 6,730        

      One-half of the moneys remitted to the director under        6,732        

division (A)(1) of this section shall be credited to the           6,733        

hazardous waste facility management fund created in section        6,734        

3734.18 of the Revised Code, and one-half shall be credited to     6,735        

the hazardous waste clean-up fund created in section 3734.28 of    6,736        

the Revised Code.  The moneys remitted to the director under       6,737        

division (A)(2) of this section shall be credited to the solid     6,738        

waste fund, which is hereby created in the state treasury.  The    6,739        

environmental protection agency shall use moneys in the solid      6,740        

waste fund only to pay the costs of administering and enforcing    6,741        

the laws pertaining to solid wastes, infectious wastes, and        6,742        

construction and demolition debris, including, without             6,743        

limitation, ground water evaluations related to solid wastes,      6,744        

infectious wastes, and construction and demolition debris, under   6,745        

this chapter and Chapter 3714. of the Revised Code and rules       6,746        

adopted under them and to pay a share of the administrative costs  6,748        

of the environmental protection agency pursuant to section         6,749        

3745.014 of the Revised Code.                                      6,750        

      The fees levied under this division and divisions (B) and    6,752        

(C) of this section are in addition to all other applicable fees   6,753        

and taxes and shall be added to any other fee or amount specified  6,754        

in a contract that is charged by the owner or operator of a solid  6,755        

                                                          151    

                                                                 
waste disposal facility or to any other fee or amount that is      6,756        

specified in a contract entered into on or after March 4, 1992,    6,757        

and that is charged by a transporter of solid wastes.              6,758        

      (B)  For the purpose of preparing, revising, and             6,760        

implementing the solid waste management plan of the county or      6,761        

joint solid waste management district, including, without          6,762        

limitation, the development and implementation of solid waste      6,763        

recycling or reduction programs; providing financial assistance    6,764        

to boards of health within the district, if solid waste            6,765        

facilities are located within the district, for the enforcement    6,766        

of this chapter and rules adopted and orders and terms and         6,768        

conditions of permits, licenses, and variances issued under it,    6,769        

other than the hazardous waste provisions of this chapter and      6,770        

rules adopted and orders and terms and conditions of permits       6,771        

issued under those provisions; providing financial assistance to   6,773        

the county to defray the added costs of maintaining roads and      6,774        

other public facilities and of providing emergency and other       6,775        

public services resulting from the location and operation of a     6,776        

solid waste facility within the county under the district's                     

approved solid waste management plan; paying the costs incurred    6,777        

by boards of health for collecting and analyzing water samples     6,778        

from public or private wells on lands adjacent to solid waste      6,779        

facilities that are contained in the approved or amended plan of   6,780        

the district; paying the costs of developing and implementing a    6,781        

program for the inspection of solid wastes generated outside the   6,782        

boundaries of this state that are disposed of at solid waste       6,783        

facilities included in the district's approved solid waste         6,784        

management plan or amended plan; providing financial assistance    6,785        

to boards of health within the district for enforcing laws         6,786        

prohibiting open dumping; providing financial assistance to local  6,787        

law enforcement agencies within the district for enforcing laws    6,788        

and ordinances prohibiting littering; providing financial          6,789        

assistance to boards of health of health districts within the      6,790        

district that are on the approved list under section 3734.08 of    6,791        

                                                          152    

                                                                 
the Revised Code for the training and certification required for   6,792        

their employees responsible for solid waste enforcement by rules   6,793        

adopted under division (L) of section 3734.02 of the Revised       6,794        

Code; providing financial assistance to individual municipal       6,795        

corporations and townships within the district to defray their     6,796        

added costs of maintaining roads and other public facilities and   6,797        

of providing emergency and other public services resulting from    6,798        

the location and operation within their boundaries of a            6,799        

composting, energy or resource recovery, incineration, or          6,800        

recycling facility that either is owned by the district or is      6,801        

furnishing solid waste management facility or recycling services   6,802        

to the district pursuant to a contract or agreement with the       6,803        

board of county commissioners or directors of the district; and    6,804        

payment of any expenses that are agreed to, awarded, or ordered    6,805        

to be paid under section 3734.35 of the Revised Code and of any    6,807        

administrative costs incurred pursuant to that section, the solid  6,808        

waste management policy committee of a county or joint solid       6,809        

waste management district may levy fees upon the following                      

activities:                                                        6,810        

      (1)  The disposal at a solid waste disposal facility         6,812        

located in the district of solid wastes generated within the       6,813        

district;                                                          6,814        

      (2)  The disposal at a solid waste disposal facility within  6,816        

the district of solid wastes generated outside the boundaries of   6,817        

the district, but inside this state;                               6,818        

      (3)  The disposal at a solid waste disposal facility within  6,820        

the district of solid wastes generated outside the boundaries of   6,821        

this state.                                                        6,822        

      If any such fees are levied prior to January 1, 1994, fees   6,824        

levied under division (B)(1) of this section always shall be       6,825        

equal to one-half of the fees levied under division (B)(2) of      6,826        

this section, and fees levied under division (B)(3) of this        6,827        

section, which shall be in addition to fees levied under division  6,828        

(B)(2) of this section, always shall be equal to fees levied       6,829        

                                                          153    

                                                                 
under division (B)(1) of this section, except as otherwise         6,830        

provided in this division.  The solid waste management plan of     6,831        

the county or joint district approved under section 3734.521 or    6,832        

3734.55 of the Revised Code and any amendments to it, or the       6,833        

resolution adopted under this division, as appropriate, shall      6,834        

establish the rates of the fees levied under divisions (B)(1),     6,835        

(2), and (3) of this section, if any, and shall specify whether    6,836        

the fees are levied on the basis of tons or cubic yards as the     6,837        

unit of measurement.  Although the fees under divisions (A)(1)     6,838        

and (2) of this section are levied on the basis of tons as the     6,839        

unit of measurement, the solid waste management plan of the        6,840        

district and any amendments to it or the solid waste management    6,841        

policy committee in its resolution levying fees under this         6,842        

division may direct that the fees levied under those divisions be  6,843        

levied on the basis of cubic yards as the unit of measurement      6,844        

based upon a conversion factor of three cubic yards per ton        6,845        

generally or one cubic yard per ton for baled wastes if the fees   6,846        

under divisions (B)(1) to (3) of this section are being levied on  6,847        

the basis of cubic yards as the unit of measurement under the      6,848        

plan, amended plan, or resolution.                                 6,849        

      On and after January 1, 1994, the fee levied under division  6,851        

(B)(1) of this section shall be not less than one dollar per ton   6,852        

nor more than two dollars per ton, the fee levied under division   6,853        

(B)(2) of this section shall be not less than two dollars per ton  6,854        

nor more than four dollars per ton, and the fee levied under       6,855        

division (B)(3) of this section shall be not more than the fee     6,856        

levied under division (B)(1) of this section, except as otherwise  6,857        

provided in this division and notwithstanding any schedule of      6,858        

those fees established in the solid waste management plan of a     6,859        

county or joint district approved under section 3734.55 of the     6,860        

Revised Code or a resolution adopted and ratified under this       6,861        

division that is in effect on that date.  If the fee that a        6,862        

district is levying under division (B)(1) of this section on that  6,863        

date under its approved plan or such a resolution is less than     6,864        

                                                          154    

                                                                 
one dollar per ton, the fee shall be one dollar per ton on and     6,865        

after January 1, 1994, and if the fee that a district is so        6,866        

levying under that division exceeds two dollars per ton, the fee   6,867        

shall be two dollars per ton on and after that date.  If the fee   6,868        

that a district is so levying under division (B)(2) of this        6,869        

section is less than two dollars per ton, the fee shall be two     6,870        

dollars per ton on and after that date, and if the fee that the    6,871        

district is so levying under that division exceeds four dollars    6,872        

per ton, the fee shall be four dollars per ton on and after that   6,873        

date.  On that date, the fee levied by a district under division   6,874        

(B)(3) of this section shall be equal to the fee levied under      6,875        

division (B)(1) of this section.  Except as otherwise provided in  6,876        

this division, the fees established by the operation of this       6,877        

amendment shall remain in effect until the district's resolution   6,878        

levying fees under this division is amended or repealed in         6,879        

accordance with this division to amend or abolish the schedule of  6,880        

fees, the schedule of fees is amended or abolished in an amended   6,881        

plan of the district approved under section 3734.521 or division   6,882        

(A) or (D) of section 3734.56 of the Revised Code, or the          6,883        

schedule of fees is amended or abolished through an amendment to   6,884        

the district's plan under division (E) of section 3734.56 of the   6,885        

Revised Code; the notification of the amendment or abolishment of  6,886        

the fees has been given in accordance with this division; and      6,887        

collection of the amended fees so established commences, or        6,888        

collection of the fees ceases, in accordance with this division.   6,889        

      The solid waste management policy committee of a district    6,891        

levying fees under divisions (B)(1) to (3) of this section on      6,893        

October 29, 1993, under its solid waste management plan approved   6,894        

under section 3734.55 of the Revised Code or a resolution adopted  6,896        

and ratified under this division that are within the ranges of     6,897        

rates prescribed by this amendment, by adoption of a resolution    6,898        

not later than December 1, 1993, and without the necessity for     6,899        

ratification of the resolution under this division, may amend      6,900        

those fees within the prescribed ranges, provided that the         6,901        

                                                          155    

                                                                 
estimated revenues from the amended fees will not substantially    6,902        

exceed the estimated revenues set forth in the district's budget   6,903        

for calendar year 1994.  Not later than seven days after the       6,904        

adoption of such a resolution, the committee shall notify by       6,905        

certified mail the owner or operator of each solid waste disposal  6,906        

facility that is required to collect the fees of the adoption of   6,907        

the resolution and of the amount of the amended fees.  Collection  6,908        

of the amended fees shall take effect on the first day of the      6,909        

first month following the month in which the notification is sent  6,910        

to the owner or operator.  The fees established in such a          6,911        

resolution shall remain in effect until the district's resolution  6,912        

levying fees that was adopted and ratified under this division is  6,913        

amended or repealed, and the amendment or repeal of the            6,914        

resolution is ratified, in accordance with this division, to       6,915        

amend or abolish the fees, the schedule of fees is amended or      6,916        

abolished in an amended plan of the district approved under        6,917        

section 3734.521 or division (A) or (D) of section 3734.56 of the  6,918        

Revised Code, or the schedule of fees is amended or abolished      6,919        

through an amendment to the district's plan under division (E) of  6,920        

section 3734.56 of the Revised Code; the notification of the       6,921        

amendment or abolishment of the fees has been given in accordance  6,922        

with this division; and collection of the amended fees so          6,923        

established commences, or collection of the fees ceases, in        6,924        

accordance with this division.                                                  

      Prior to the approval of the solid waste management plan of  6,926        

the district under section 3734.55 of the Revised Code, the solid  6,927        

waste management policy committee of a district may levy fees      6,928        

under this division by adopting a resolution establishing the      6,929        

proposed amount of the fees.  Upon adopting the resolution, the    6,930        

committee shall deliver a copy of the resolution to the board of   6,931        

county commissioners of each county forming the district and to    6,932        

the legislative authority of each municipal corporation and        6,933        

township under the jurisdiction of the district and shall prepare  6,934        

and publish the resolution and a notice of the time and location   6,935        

                                                          156    

                                                                 
where a public hearing on the fees will be held.  Upon adopting    6,936        

the resolution, the committee shall deliver written notice of the  6,937        

adoption of the resolution; of the amount of the proposed fees;    6,938        

and of the date, time, and location of the public hearing to the   6,939        

director and to the fifty industrial, commercial, or               6,940        

institutional generators of solid wastes within the district that  6,941        

generate the largest quantities of solid wastes, as determined by  6,942        

the committee, and to their local trade associations.  The         6,943        

committee shall make good faith efforts to identify those          6,944        

generators within the district and their local trade               6,945        

associations, but the nonprovision of notice under this division   6,946        

to a particular generator or local trade association does not      6,947        

invalidate the proceedings under this division.  The publication   6,948        

shall occur at least thirty days before the hearing.  After the    6,949        

hearing, the committee may make such revisions to the proposed     6,950        

fees as it considers appropriate and thereafter, by resolution,    6,951        

shall adopt the revised fee schedule.  Upon adopting the revised   6,952        

fee schedule, the committee shall deliver a copy of the            6,953        

resolution doing so to the board of county commissioners of each   6,954        

county forming the district and to the legislative authority of    6,955        

each municipal corporation and township under the jurisdiction of  6,956        

the district.  Within sixty days after the delivery of a copy of   6,957        

the resolution adopting the proposed revised fees by the policy    6,958        

committee, each such board and legislative authority, by           6,959        

ordinance or resolution, shall approve or disapprove the revised   6,960        

fees and deliver a copy of the ordinance or resolution to the      6,961        

committee.  If any such board or legislative authority fails to    6,962        

adopt and deliver to the policy committee an ordinance or          6,963        

resolution approving or disapproving the revised fees within       6,964        

sixty days after the policy committee delivered its resolution     6,965        

adopting the proposed revised fees, it shall be conclusively       6,966        

presumed that the board or legislative authority has approved the  6,967        

proposed revised fees.                                             6,968        

      In the case of a county district or a joint district formed  6,970        

                                                          157    

                                                                 
by two or three counties, the committee shall declare the          6,971        

proposed revised fees to be ratified as the fee schedule of the    6,972        

district upon determining that the board of county commissioners   6,973        

of each county forming the district has approved the proposed      6,974        

revised fees and that the legislative authorities of a             6,975        

combination of municipal corporations and townships with a         6,976        

combined population within the district comprising at least sixty  6,977        

per cent of the total population of the district have approved     6,978        

the proposed revised fees, provided that in the case of a county   6,979        

district, that combination shall include the municipal             6,980        

corporation having the largest population within the boundaries    6,981        

of the district, and provided further that in the case of a joint  6,982        

district formed by two or three counties, that combination shall   6,983        

include for each county forming the joint district the municipal   6,984        

corporation having the largest population within the boundaries    6,985        

of both the county in which the municipal corporation is located   6,986        

and the joint district.  In the case of a joint district formed    6,987        

by four or more counties, the committee shall declare the          6,988        

proposed revised fees to be ratified as the fee schedule of the    6,989        

joint district upon determining that the boards of county          6,990        

commissioners of a majority of the counties forming the district   6,991        

have approved the proposed revised fees; that, in each of a        6,992        

majority of the counties forming the joint district, the proposed  6,993        

revised fees have been approved by the municipal corporation       6,994        

having the largest population within the county and the joint      6,995        

district; and that the legislative authorities of a combination    6,996        

of municipal corporations and townships with a combined            6,997        

population within the joint district comprising at least sixty     6,998        

per cent of the total population of the joint district have        6,999        

approved the proposed revised fees.                                7,000        

      For the purposes of this division, only the population of    7,002        

the unincorporated area of a township shall be considered.  For    7,003        

the purpose of determining the largest municipal corporation       7,004        

within each county under this division, a municipal corporation    7,005        

                                                          158    

                                                                 
that is located in more than one solid waste management district,  7,006        

but that is under the jurisdiction of one county or joint solid    7,007        

waste management district in accordance with division (A) of       7,008        

section 3734.52 of the Revised Code shall be considered to be      7,009        

within the boundaries of the county in which a majority of the     7,010        

population of the municipal corporation resides.                   7,011        

      The committee may amend the schedule of fees levied          7,013        

pursuant to a resolution or amended resolution adopted and         7,014        

ratified under this division by adopting a resolution              7,015        

establishing the proposed amount of the amended fees.  The         7,016        

committee may abolish the fees levied pursuant to such a           7,017        

resolution or amended resolution by adopting a resolution          7,018        

proposing to repeal them.  Upon adopting such a resolution, the    7,019        

committee shall proceed to obtain ratification of the resolution   7,020        

in accordance with this division.                                  7,021        

      Not later than fourteen days after declaring the fees or     7,023        

amended fees to be ratified under this division, the committee     7,024        

shall notify by certified mail the owner or operator of each       7,025        

solid waste disposal facility that is required to collect the      7,026        

fees of the ratification and the amount of the fees.  Collection   7,027        

of any fees or amended fees ratified on or after March 24, 1992,   7,028        

shall commence on the first day of the second month following the  7,029        

month in which notification is sent to the owner or operator.      7,030        

      Not later than fourteen days after declaring the repeal of   7,032        

the district's schedule of fees to be ratified under this          7,033        

division, the committee shall notify by certified mail the owner   7,034        

or operator of each facility that is collecting the fees of the    7,035        

repeal.  Collection of the fees shall cease on the first day of    7,036        

the second month following the month in which notification is      7,037        

sent to the owner or operator.                                     7,038        

      Not later than fourteen days after the director issues an    7,040        

order approving a district's solid waste management plan under     7,041        

section 3734.55 of the Revised Code or amended plan under          7,042        

division (A) or (D) of section 3734.56 of the Revised Code that    7,043        

                                                          159    

                                                                 
establishes or amends a schedule of fees levied by the district,   7,044        

or the ratification of an amendment to the district's approved     7,045        

plan or amended plan under division (E) of section 3734.56 of the  7,046        

Revised Code that establishes or amends a schedule of fees, as     7,047        

appropriate, the committee shall notify by certified mail the      7,048        

owner or operator of each solid waste disposal facility that is    7,049        

required to collect the fees of the approval of the plan or        7,050        

amended plan, or the amendment to the plan, as appropriate, and    7,051        

the amount of the fees or amended fees.  In the case of an         7,052        

initial or amended plan approved under section 3734.521 of the     7,053        

Revised Code in connection with a change in district composition,  7,054        

other than one involving the withdrawal of a county from a joint   7,055        

district, that establishes or amends a schedule of fees levied     7,056        

under divisions (B)(1) to (3) of this section by a district        7,057        

resulting from the change, the committee, within fourteen days     7,058        

after the change takes effect pursuant to division (G) of that     7,059        

section, shall notify by certified mail the owner or operator of   7,060        

each solid waste disposal facility that is required to collect     7,061        

the fees that the change has taken effect and of the amount of     7,062        

the fees or amended fees.  Collection of any fees set forth in a   7,063        

plan or amended plan approved by the director on or after April    7,064        

16, 1993, or an amendment of a plan or amended plan under          7,065        

division (E) of section 3734.56 of the Revised Code that is        7,066        

ratified on or after April 16, 1993, shall commence on the first   7,067        

day of the second month following the month in which notification  7,068        

is sent to the owner or operator.                                  7,069        

      Not later than fourteen days after the director issues an    7,071        

order approving a district's plan under section 3734.55 of the     7,072        

Revised Code or amended plan under division (A) or (D) of section  7,073        

3734.56 of the Revised Code that abolishes the schedule of fees    7,074        

levied under divisions (B)(1) to (3) of this section, or an        7,075        

amendment to the district's approved plan or amended plan          7,076        

abolishing the schedule of fees is ratified pursuant to division   7,077        

(E) of section 3734.56 of the Revised Code, as appropriate, the    7,078        

                                                          160    

                                                                 
committee shall notify by certified mail the owner or operator of  7,079        

each facility that is collecting the fees of the approval of the   7,080        

plan or amended plan, or the amendment of the plan or amended      7,081        

plan, as appropriate, and the abolishment of the fees.  In the     7,082        

case of an initial or amended plan approved under section          7,083        

3734.521 of the Revised Code in connection with a change in        7,084        

district composition, other than one involving the withdrawal of   7,085        

a county from a joint district, that abolishes the schedule of     7,086        

fees levied under divisions (B)(1) to (3) of this section by a     7,087        

district resulting from the change, the committee, within          7,088        

fourteen days after the change takes effect pursuant to division   7,089        

(G) of that section, shall notify by certified mail the owner or   7,090        

operator of each solid waste disposal facility that is required    7,091        

to collect the fees that the change has taken effect and of the    7,092        

abolishment of the fees.  Collection of the fees shall cease on    7,093        

the first day of the second month following the month in which     7,094        

notification is sent to the owner or operator.                     7,095        

      Except as otherwise provided in this division, if the        7,097        

schedule of fees that a district is levying under divisions        7,098        

(B)(1) to (3) of this section pursuant to a resolution or amended  7,099        

resolution adopted and ratified under this division, the solid     7,100        

waste management plan of the district approved under section       7,101        

3734.55 of the Revised Code, an amended plan approved under        7,102        

division (A) or (D) of section 3734.56 of the Revised Code, or an  7,103        

amendment to the district's approved plan or amended plan under    7,104        

division (E) of section 3734.56 of the Revised Code, is amended    7,105        

by the adoption and ratification of an amendment to the            7,106        

resolution or amended resolution or an amendment of the            7,107        

district's approved plan or amended plan, the fees in effect       7,108        

immediately prior to the approval of the plan or the amendment of  7,109        

the resolution, amended resolution, plan, or amended plan, as      7,110        

appropriate, shall continue to be collected until collection of    7,111        

the amended fees commences pursuant to this division.              7,112        

      If, in the case of a change in district composition          7,114        

                                                          161    

                                                                 
involving the withdrawal of a county from a joint district, the    7,115        

director completes the actions required under division (G)(1) or   7,116        

(3) of section 3734.521 of the Revised Code, as appropriate,       7,117        

forty-five days or more before the beginning of a calendar year,   7,118        

the policy committee of each of the districts resulting from the   7,119        

change that obtained the director's approval of an initial or      7,120        

amended plan in connection with the change, within fourteen days   7,121        

after the director's completion of the required actions, shall     7,122        

notify by certified mail the owner or operator of each solid       7,123        

waste disposal facility that is required to collect the            7,124        

district's fees that the change is to take effect on the first     7,125        

day of January immediately following the issuance of the notice    7,126        

and of the amount of the fees or amended fees levied under         7,127        

divisions (B)(1) to (3) of this section pursuant to the            7,128        

district's initial or amended pan as so approved or, if            7,129        

appropriate, the abolishment of the district's fees by that        7,130        

initial or amended plan.  Collection of any fees set forth in      7,131        

such a plan or amended plan shall commence on the first day of     7,132        

January immediately following the issuance of the notice.  If      7,133        

such an initial or amended plan abolishes a schedule of fees,      7,134        

collection of the fees shall cease on that first day of January.   7,135        

      If, in the case of a change in district composition          7,137        

involving the withdrawal of a county from a joint district, the    7,138        

director completes the actions required under division (G)(1) or   7,139        

(3) of section 3734.521 of the Revised Code, as appropriate, less  7,140        

than forty-five days before the beginning of a calendar year, the  7,141        

director, on behalf of each of the districts resulting from the    7,142        

change that obtained the director's approval of an initial or      7,143        

amended plan in connection with the change proceedings, shall      7,144        

notify by certified mail the owner or operator of each solid       7,145        

waste disposal facility that is required to collect the            7,146        

district's fees that the change is to take effect on the first     7,147        

day of January immediately following the mailing of the notice     7,148        

and of the amount of the fees or amended fees levied under         7,149        

                                                          162    

                                                                 
divisions (B)(1) to (3) of this section pursuant to the            7,150        

district's initial or amended plan as so approved or, if           7,151        

appropriate, the abolishment of the district's fees by that        7,152        

initial or amended plan.  Collection of any fees set forth in      7,153        

such a plan or amended plan shall commence on the first day of     7,154        

the second month following the month in which notification is      7,155        

sent to the owner or operator.  If such an initial or amended      7,156        

plan abolishes a schedule of fees, collection of the fees shall    7,157        

cease on the first day of the second month following the month in  7,158        

which notification is sent to the owner or operator.               7,159        

      In the case of a change in district composition, the         7,161        

schedule of fees that the former districts that existed prior to   7,162        

the change were levying under divisions (B)(1) to (3) of this      7,163        

section pursuant to a resolution or amended resolution adopted     7,164        

and ratified under this division, the solid waste management plan  7,165        

of a former district approved under section 3734.521 or 3734.55    7,166        

of the Revised Code, an amended plan approved under section        7,167        

3734.521 or division (A) or (D) of section 3734.56 of the Revised  7,168        

Code, or an amendment to a former district's approved plan or      7,169        

amended plan under division (E) of section 3734.56 of the Revised  7,170        

Code, and that were in effect on the date that the director        7,171        

completed the actions required under division (G)(1) or (3) of     7,172        

section 3734.521 of the Revised Code shall continue to be          7,173        

collected until the collection of the fees or amended fees of the  7,174        

districts resulting from the change is required to commence, or    7,175        

if an initial or amended plan of a resulting district abolishes a  7,176        

schedule of fees, collection of the fees is required to cease,     7,177        

under this division.  Moneys so received from the collection of    7,178        

the fees of the former districts shall be divided among the        7,179        

resulting districts in accordance with division (B) of section     7,180        

343.012 of the Revised Code and the agreements entered into under  7,181        

division (B) of section 343.01 of the Revised Code to establish    7,182        

the former and resulting districts and any amendments to those     7,183        

agreements.                                                        7,184        

                                                          163    

                                                                 
      For the purposes of the provisions of division (B) of this   7,186        

section establishing the times when newly established or amended   7,187        

fees levied by a district are required to commence and the         7,188        

collection of fees that have been amended or abolished is          7,189        

required to cease, "fees" or "schedule of fees" includes, in       7,190        

addition to fees levied under divisions (B)(1) to (3) of this      7,191        

section, those levied under section 3734.573 or 3734.574 of the    7,192        

Revised Code.                                                      7,193        

      (C)  For the purposes of defraying the added costs to a      7,195        

municipal corporation or township of maintaining roads and other   7,196        

public facilities and of providing emergency and other public      7,197        

services, and compensating a municipal corporation or township     7,198        

for reductions in real property tax revenues due to reductions in  7,199        

real property valuations resulting from the location and           7,200        

operation of a solid waste disposal facility within the municipal  7,201        

corporation or township, a municipal corporation or township in    7,202        

which such a solid waste disposal facility is located may levy a   7,203        

fee of not more than twenty-five cents per ton on the disposal of  7,204        

solid wastes at a solid waste disposal facility located within     7,205        

the boundaries of the municipal corporation or township            7,206        

regardless of where the wastes were generated.                     7,207        

      The legislative authority of a municipal corporation or      7,209        

township may levy fees under this division by enacting an          7,210        

ordinance or adopting a resolution establishing the amount of the  7,211        

fees.  Upon so doing the legislative authority shall mail a        7,212        

certified copy of the ordinance or resolution to the board of      7,213        

county commissioners or directors of the county or joint solid     7,214        

waste management district in which the municipal corporation or    7,215        

township is located or, if a regional solid waste management       7,216        

authority has been formed under section 343.011 of the Revised     7,217        

Code, to the board of trustees of that regional authority, the     7,218        

owner or operator of each solid waste disposal facility in the     7,219        

municipal corporation or township that is required to collect the  7,220        

fee by the ordinance or resolution, and the director of            7,221        

                                                          164    

                                                                 
environmental protection.  Although the fees levied under this     7,222        

division are levied on the basis of tons as the unit of            7,223        

measurement, the legislative authority, in its ordinance or        7,224        

resolution levying the fees under this division, may direct that   7,225        

the fees be levied on the basis of cubic yards as the unit of      7,226        

measurement based upon a conversion factor of three cubic yards    7,227        

per ton generally or one cubic yard per ton for baled wastes.      7,228        

      Not later than five days after enacting an ordinance or      7,230        

adopting a resolution under this division, the legislative         7,231        

authority shall so notify by certified mail the owner or operator  7,232        

of each solid waste disposal facility that is required to collect  7,233        

the fee.  Collection of any fee levied on or after March 24,       7,234        

1992, shall commence on the first day of the second month          7,235        

following the month in which notification is sent to the owner or  7,236        

operator.                                                          7,237        

      (D)(1)  The fees levied under divisions (A), (B), and (C)    7,239        

of this section do not apply to the disposal of solid wastes       7,241        

that:                                                                           

      (a)  Are disposed of at a facility owned by the generator    7,243        

of the wastes when the solid waste facility exclusively disposes   7,244        

of solid wastes generated at one or more premises owned by the     7,245        

generator regardless of whether the facility is located on a       7,246        

premises where the wastes are generated;                           7,247        

      (b)  Are disposed of at facilities that exclusively dispose  7,249        

of wastes that are generated from the combustion of coal, or from  7,250        

the combustion of primarily coal in combination with scrap tires,  7,251        

that is not combined in any way with garbage at one or more        7,252        

premises owned by the generator.                                   7,253        

      (2)  Except as provided in section 3734.571 of the Revised   7,255        

Code, any fees levied under division (B)(1) of this section apply  7,256        

to solid wastes originating outside the boundaries of a county or  7,257        

joint district that are covered by an agreement for the joint use  7,258        

of solid waste facilities entered into under section 343.02 of     7,259        

the Revised Code by the board of county commissioners or board of  7,260        

                                                          165    

                                                                 
directors of the county or joint district where the wastes are     7,261        

generated and disposed of.                                         7,262        

      (3)  When solid wastes, other than solid wastes that         7,264        

consist of scrap tires, are burned in a disposal facility that is  7,265        

an incinerator or energy recovery facility, the fees levied under  7,266        

divisions (A), (B), and (C) of this section shall be levied upon   7,268        

the disposal of the fly ash and bottom ash remaining after         7,269        

burning of the solid wastes and shall be collected by the owner    7,270        

or operator of the sanitary landfill where the ash is disposed     7,271        

of.                                                                             

      (4)  When solid wastes are delivered to a solid waste        7,273        

transfer facility, the fees levied under divisions (A), (B), and   7,274        

(C) of this section shall be levied upon the disposal of solid     7,276        

wastes transported off the premises of the transfer facility for   7,277        

disposal and shall be collected by the owner or operator of the    7,278        

solid waste disposal facility where the wastes are disposed of.    7,279        

      (5)  The fees levied under divisions (A), (B), and (C) of    7,281        

this section do not apply to sewage sludge that is generated by a  7,282        

waste water treatment facility holding a national pollutant        7,283        

discharge elimination system permit and that is disposed of        7,284        

through incineration, land application, or composting or at        7,285        

another resource recovery or disposal facility that is not a       7,286        

landfill.                                                          7,287        

      (6)  The fees levied under division DIVISIONS (A), (B), and  7,289        

(C) of this section do not apply to solid wastes delivered to a    7,291        

solid waste composting facility for processing.  When any          7,292        

unprocessed solid waste or compost product is transported off the  7,293        

premises of a composting facility and disposed of at a landfill,   7,294        

the fees levied under divisions (A), (B), and (C) of this section  7,295        

shall be collected by the owner or operator of the landfill where  7,296        

the unprocessed waste or compost product is disposed of.           7,297        

      (7)  When solid wastes that consist of scrap tires are       7,299        

processed at a scrap tire recovery facility, the fees levied       7,300        

under divisions (A), (B), and (C) of this section shall be levied  7,302        

                                                          166    

                                                                 
upon the disposal of the fly ash and bottom ash or other solid     7,303        

wastes remaining after the processing of the scrap tires and       7,304        

shall be collected by the owner or operator of the solid waste     7,305        

disposal facility where the ash or other solid wastes are          7,306        

disposed of.                                                                    

      (E)  The fees levied under divisions (B) and (C) of this     7,309        

section shall be collected by the owner or operator of the solid   7,310        

waste disposal facility where the wastes are disposed of as a      7,311        

trustee for the county or joint district and municipal                          

corporation or township where the wastes are disposed of.  Moneys  7,312        

from the fees levied under division (B) of this section shall be   7,314        

forwarded to the board of county commissioners or board of         7,315        

directors of the district in accordance with rules adopted under   7,316        

division (H) of this section.  Moneys from the fees levied under   7,317        

division (C) of this section shall be forwarded to the treasurer   7,318        

or such other officer of the municipal corporation as, by virtue   7,319        

of the charter, has the duties of the treasurer or to the clerk    7,320        

of the township, as appropriate, in accordance with those rules.   7,321        

      (F)  Moneys received by the treasurer or such other officer  7,323        

of the municipal corporation under division (E) of this section    7,324        

shall be paid into the general fund of the municipal corporation.  7,325        

Moneys received by the clerk of the township under that division   7,326        

shall be paid into the general fund of the township.  The          7,327        

treasurer or such other officer of the municipal corporation or    7,328        

the clerk, as appropriate, shall maintain separate records of the  7,329        

moneys received from the fees levied under division (C) of this    7,330        

section.                                                           7,331        

      (G)  Moneys received by the board of county commissioners    7,333        

or board of directors under division (E) of this section or        7,334        

section 3734.571, 3734.572, 3734.573, or 3734.574 of the Revised   7,335        

Code shall be paid to the county treasurer, or other official      7,336        

acting in a similar capacity under a county charter, in a county   7,337        

district or to the county treasurer or other official designated   7,338        

by the board of directors in a joint district and kept in a        7,339        

                                                          167    

                                                                 
separate and distinct fund to the credit of the district.  If a    7,340        

regional solid waste management authority has been formed under    7,341        

section 343.011 of the Revised Code, moneys received by the board  7,342        

of trustees of that regional authority under division (E) of this  7,343        

section shall be kept by the board in a separate and distinct      7,344        

fund to the credit of the district.  Moneys in the special fund    7,345        

of the county or joint district arising from the fees levied       7,346        

under division (B) of this section and the fee levied under        7,348        

division (A) of section 3734.573 of the Revised Code shall be      7,349        

expended by the board of county commissioners or directors of the  7,350        

district in accordance with the district's solid waste management  7,351        

plan or amended plan approved under section 3734.521, 3734.55, or  7,352        

3734.56 of the Revised Code exclusively for the following          7,353        

purposes:                                                                       

      (1)  Preparation of the solid waste management plan of the   7,355        

district under section 3734.54 of the Revised Code, monitoring     7,356        

implementation of the plan, and conducting the periodic review     7,357        

and amendment of the plan required by section 3734.56 of the       7,358        

Revised Code by the solid waste management policy committee;       7,359        

      (2)  Implementation of the approved solid waste management   7,361        

plan or amended plan of the district, including, without           7,362        

limitation, the development and implementation of solid waste      7,363        

recycling or reduction programs;                                   7,364        

      (3)  Providing financial assistance to boards of health      7,366        

within the district, if solid waste facilities are located within  7,367        

the district, for enforcement of this chapter and rules, orders,   7,368        

and terms and conditions of permits, licenses, and variances       7,370        

adopted or issued under it, other than the hazardous waste         7,371        

provisions of this chapter and rules adopted and orders and terms  7,372        

and conditions of permits issued under those provisions;           7,374        

      (4)  Providing financial assistance to each county within    7,376        

the district to defray the added costs of maintaining roads and    7,377        

other public facilities and of providing emergency and other       7,378        

public services resulting from the location and operation of a     7,379        

                                                          168    

                                                                 
solid waste facility within the county under the district's        7,380        

approved solid waste management plan or amended plan;              7,381        

      (5)  Pursuant to contracts entered into with boards of       7,383        

health within the district, if solid waste facilities contained    7,384        

in the district's approved plan or amended plan are located        7,385        

within the district, for paying the costs incurred by those        7,386        

boards of health for collecting and analyzing samples from public  7,387        

or private water wells on lands adjacent to those facilities;      7,388        

      (6)  Developing and implementing a program for the           7,390        

inspection of solid wastes generated outside the boundaries of     7,391        

this state that are disposed of at solid waste facilities          7,392        

included in the district's approved solid waste management plan    7,393        

or amended plan;                                                   7,394        

      (7)  Providing financial assistance to boards of health      7,396        

within the district for the enforcement of section 3734.03 of the  7,397        

Revised Code or to local law enforcement agencies having           7,398        

jurisdiction within the district for enforcing anti-littering      7,399        

laws and ordinances;                                               7,400        

      (8)  Providing financial assistance to boards of health of   7,402        

health districts within the district that are on the approved      7,403        

list under section 3734.08 of the Revised Code to defray the       7,404        

costs to the health districts for the participation of their       7,405        

employees responsible for enforcement of the solid waste           7,406        

provisions of this chapter and rules adopted and orders and terms  7,407        

and conditions of permits, licenses, and variances issued under    7,408        

those provisions in the training and certification program as      7,409        

required by rules adopted under division (L) of section 3734.02    7,410        

of the Revised Code;                                               7,411        

      (9)  Providing financial assistance to individual municipal  7,413        

corporations and townships within the district to defray their     7,414        

added costs of maintaining roads and other public facilities and   7,415        

of providing emergency and other public services resulting from    7,416        

the location and operation within their boundaries of a            7,417        

composting, energy or resource recovery, incineration, or          7,418        

                                                          169    

                                                                 
recycling facility that either is owned by the district or is      7,419        

furnishing solid waste management facility or recycling services   7,420        

to the district pursuant to a contract or agreement with the       7,421        

board of county commissioners or directors of the district;        7,422        

      (10)  Payment of any expenses that are agreed to, awarded,   7,424        

or ordered to be paid under section 3734.35 of the Revised Code    7,425        

and of any administrative costs incurred pursuant to that          7,426        

section.  In the case of a joint solid waste management district,  7,427        

if the board of county commissioners of one of the counties in     7,428        

the district is negotiating on behalf of affected communities, as               

defined in that section, in that county, the board shall obtain    7,429        

the approval of the board of directors of the district in order    7,430        

to expend moneys for administrative costs incurred.                7,431        

      Prior to the approval of the district's solid waste          7,433        

management plan under section 3734.55 of the Revised Code, moneys  7,434        

in the special fund of the district arising from such THE fees     7,435        

shall be expended for such THOSE purposes in the manner            7,437        

prescribed by the solid waste management policy committee by       7,439        

resolution.                                                                     

      Notwithstanding division (G)(6) of this section as it        7,442        

existed prior to October 29, 1993, or any provision in a                        

district's solid waste management plan prepared in accordance      7,445        

with division (B)(2)(e) of section 3734.53 of the Revised Code as  7,446        

it existed prior to that date, any moneys arising from the fees    7,447        

levied under division (B)(3) of this section prior to January 1,   7,448        

1994, may be expended for any of the purposes authorized in        7,449        

divisions (G)(1) to (10) of this section.                          7,450        

      (H)  The director of environmental protection shall adopt    7,452        

rules in accordance with Chapter 119. of the Revised Code          7,453        

prescribing procedures for collecting and forwarding the fees      7,454        

levied under divisions (B) and (C) of this section to the boards   7,455        

of county commissioners or directors of county or joint solid      7,456        

waste management districts and to the treasurers or other          7,457        

officers of municipal corporations or to the clerks of townships.  7,458        

                                                          170    

                                                                 
The rules also shall prescribe the dates for forwarding the fees   7,459        

to the boards and officials and may prescribe any other            7,460        

requirements the director considers necessary or appropriate to    7,461        

implement and administer divisions (A), (B), and (C) of this       7,462        

section.  Collection of the fees levied under division (A)(1) of   7,463        

this section shall commence on July 1, 1993.  Collection of the    7,464        

fees levied under division (A)(2) of this section shall commence   7,466        

on January 1, 1994.                                                7,467        

      Sec. 3734.82.  (A)  The annual fee for a scrap tire          7,476        

recovery facility license issued under section 3734.81 of the      7,477        

Revised Code shall be in accordance with the following schedule:   7,478        

     Daily Design Input                     Annual License         7,480        

      Capacity (Tons)                            Fee               7,481        

       1 or less                              $   100              7,482        

       2 to 25                                    500              7,483        

      26 to 50                                  1,000              7,484        

      51 to 100                                 1,500              7,485        

     101 to 200                                 2,500              7,486        

     201 to 500                                 3,500              7,487        

     501 or more                                5,500              7,488        

      For the purpose of determining the applicable license fee    7,491        

under this division, the daily design input capacity shall be the  7,492        

quantity of scrap tires the facility is designed to process daily  7,493        

as set forth in the registration certificate or permit for the     7,494        

facility, and any modifications to the permit, if applicable,      7,495        

issued under section 3734.78 of the Revised Code.                  7,496        

      (B)  The annual fee for a scrap tire monocell or monofill    7,498        

facility license shall be in accordance with the following         7,499        

schedule:                                                          7,500        

      Authorized Maximum                    Annual License         7,502        

     Daily Waste Receipt                         Fee               7,503        

           (Tons)                                                  7,504        

      100 or less                             $ 5,000              7,505        

      101 to 200                               12,500              7,506        

                                                          171    

                                                                 
      201 to 500                               30,000              7,507        

      501 or more                              60,000              7,508        

      For the purpose of determining the applicable license fee    7,511        

under this division, the authorized maximum daily waste receipt    7,512        

shall be the maximum amount of scrap tires the facility is         7,513        

authorized to receive daily that is established in the permit for  7,514        

the facility, and any modification to that permit, issued under    7,515        

section 3734.77 of the Revised Code.                               7,516        

      (C)(1)  Except as otherwise provided in division (C)(2) of   7,518        

this section, the annual fee for a scrap tire storage facility     7,519        

license shall equal one thousand dollars times the number of       7,520        

acres on which scrap tires are to be stored at the facility        7,521        

during the license year, as set forth on the application for the   7,522        

annual license, except that the total annual license fee for any   7,523        

such facility shall not exceed three thousand dollars.             7,524        

      (2)  The annual fee for a scrap tire storage facility        7,526        

license for a storage facility that is owned or operated by a      7,527        

motor vehicle salvage dealer licensed under Chapter 4738. of the   7,528        

Revised Code is one hundred dollars.                               7,529        

      (D)(1)  Except as otherwise provided in division (D)(2) of   7,531        

this section, the annual fee for a scrap tire collection facility  7,532        

license is two hundred dollars.                                    7,533        

      (2)  The annual fee for a scrap tire collection facility     7,535        

license for a collection facility that is owned or operated by a   7,536        

motor vehicle salvage dealer licensed under Chapter 4738. of the   7,537        

Revised Code is fifty dollars.                                     7,538        

      (E)  Except as otherwise provided in divisions (C)(2) and    7,540        

(D)(2) of this section, the same fees apply to private operators   7,541        

and to the state and its political subdivisions and shall be paid  7,542        

within thirty days after the issuance of a license.  The fees      7,543        

include the cost of licensing, all inspections, and other costs    7,544        

associated with the administration of the scrap tire provisions    7,545        

of this chapter and rules adopted under them.  Each license shall  7,546        

specify that it is conditioned upon payment of the applicable fee  7,547        

                                                          172    

                                                                 
to the board of health or the director of environmental            7,548        

protection, as appropriate, within thirty days after the issuance  7,550        

of the license.                                                                 

      (F)  The board of health shall retain fifteen thousand       7,552        

dollars of each license fee collected by the board under division  7,553        

(B) of this section, or the entire amount of any such fee that is  7,554        

less than fifteen thousand dollars, and the entire amount of each  7,555        

license fee collected by the board under divisions (A), (C), and   7,556        

(D) of this section.  The moneys retained shall be paid into a     7,557        

special fund, which is hereby created in each health district,     7,558        

and used solely to administer and enforce the scrap tire           7,559        

provisions of this chapter and rules adopted under them.  The      7,560        

remainder, if any, of each license fee collected by the board      7,561        

under division (B) of this section shall be transmitted to the     7,562        

director within forty-five days after receipt of the fee.          7,564        

      (G)  The director shall transmit the moneys received by the  7,566        

director from license fees collected under division (B) of this    7,567        

section to the treasurer of state to be credited to the scrap      7,568        

tire management fund, which is hereby created in the state         7,569        

treasury.  The fund shall consist of all federal moneys received   7,570        

by the environmental protection agency for the scrap tire          7,571        

management program; all grants, gifts, and contributions made to   7,572        

the director for that program; and all other moneys that may be    7,573        

provided by law for that program.  The director shall use moneys   7,574        

in the fund as follows:                                            7,575        

      (1)  Expend not more than seven hundred fifty thousand       7,577        

dollars during each fiscal year to implement, administer, and      7,579        

enforce the scrap tire provisions of this chapter and rules        7,580        

adopted under them;                                                7,581        

      (2)  For fiscal years 1998 and 1999, grant not more than     7,585        

one hundred fifty thousand dollars during each fiscal year to the  7,586        

polymer institute at the university of Akron for the purpose of    7,587        

expediting research concerning and evaluation of alternative       7,588        

methods of recycling scrap tires.  The institute shall report to   7,589        

                                                          173    

                                                                 
the director annually concerning research programs under review,   7,590        

and the results of scrap tire recycling experiments conducted, by  7,591        

or in conjunction with the institute. The university shall report  7,592        

to the director biennially concerning the expenditures of moneys   7,593        

received by the institute under division (G)(2) of this section.   7,594        

      (3)  During each of fiscal years 1998, 1999, and 2000,       7,597        

request the director of budget and management to, and the          7,599        

director of budget and management shall, transfer one million      7,600        

dollars to the facilities establishment fund created in section    7,601        

166.03 of the Revised Code for the purposes specified in that      7,602        

section;                                                                        

      (4)  Except as otherwise provided in division (H)(2) of      7,606        

this section, expend not more than three million dollars during    7,608        

each of fiscal years 1998, 1999, and 2000 to conduct removal       7,610        

actions under section 3734.85 of the Revised Code.  Prior to       7,611        

using any moneys in the fund for that purpose in a fiscal year,    7,612        

the director shall request the approval of the controlling board   7,613        

for that use of the moneys.  The request shall be accompanied by   7,614        

a plan describing the removal actions to be conducted during the   7,615        

fiscal year and an estimate of the costs of conducting them.  The  7,616        

controlling board shall approve the plan only if the board finds   7,617        

that the proposed removal actions are in accordance with the       7,618        

priorities set forth in division (B) of section 3734.85 of the     7,619        

Revised Code and that the costs of conducting them are             7,620        

reasonable.                                                        7,621        

      (5)  Annually transfer to the central support indirect fund  7,623        

created in section 3745.014 of the Revised Code an amount equal    7,625        

to not more than twelve per cent of each fiscal year's             7,626        

appropriation to the scrap tire management fund.                                

      (H)(1)  If, during fiscal year 1997, 1998, 1999, or 2000,    7,628        

more than three million five hundred thousand dollars are          7,630        

credited to the scrap tire management fund, the director, at the   7,631        

conclusion of the fiscal year, shall request the director of       7,633        

budget and management to, and the director of budget and           7,634        

                                                          174    

                                                                 
management shall, transfer to the facilities establishment fund    7,636        

one-half of the moneys credited to the scrap tire management fund  7,637        

in excess of that amount.                                          7,638        

      (2)  In each of fiscal years 1998, 1999, and 2000, if more   7,641        

than three million five hundred thousand dollars are credited to   7,642        

the scrap tire management fund during the preceding fiscal year,   7,643        

the director, in addition to the amount authorized under division  7,644        

(G)(4) of this section, shall expend during the current fiscal     7,645        

year one-half of that excess amount to conduct removal operations  7,646        

under section 3734.85 of the Revised Code.                         7,647        

      (I)  AFTER THE ACTIONS IN DIVISIONS (G)(1) TO (4) AND (H)    7,650        

OF THIS SECTION ARE COMPLETED DURING EACH OF FISCAL YEARS 1998,                 

1999, AND 2000, THE DIRECTOR MAY EXPEND UP TO THE BALANCE          7,651        

REMAINING FROM PRIOR FISCAL YEARS IN THE SCRAP TIRE MANAGEMENT     7,652        

FUND TO CONDUCT REMOVAL ACTIONS UNDER SECTION 3734.85 OF THE       7,653        

REVISED CODE.  PRIOR TO USING ANY MONEYS IN THE FUND FOR THAT                   

PURPOSE IN A FISCAL YEAR, THE DIRECTOR SHALL REQUEST THE APPROVAL  7,654        

OF THE CONTROLLING BOARD FOR THAT USE OF THE MONEYS.  THE REQUEST  7,655        

SHALL BE ACCOMPANIED BY A PLAN DESCRIBING THE REMOVAL ACTIONS TO   7,656        

BE CONDUCTED DURING THE FISCAL YEAR AND AN ESTIMATE OF THE COSTS   7,657        

OF CONDUCTING THEM.  THE CONTROLLING BOARD SHALL APPROVE THE PLAN  7,658        

ONLY IF THE BOARD FINDS THAT THE PROPOSED REMOVAL ACTIONS ARE IN   7,659        

ACCORDANCE WITH THE PRIORITIES SET FORTH IN DIVISION (B) OF        7,660        

SECTION 3734.85 OF THE REVISED CODE AND THAT THE COSTS OF                       

CONDUCTING THEM ARE REASONABLE.                                    7,661        

      Sec. 4123.40.  During the six months immediately preceding   7,670        

the first day of each regular session of the general assembly,     7,671        

the office of budget and management shall communicate to the       7,672        

bureau THE ADMINISTRATOR of workers' compensation an SHALL         7,674        

estimate of the gross payroll of all state employers for the       7,675        

succeeding biennium or fiscal year.                                7,676        

      Upon receipt thereof the THE administrator of workers'       7,678        

compensation shall determine and certify for the office of budget  7,679        

and management that rate or rates which when applied to the gross  7,680        

                                                          175    

                                                                 
payroll estimate will produce an amount equal to the estimated     7,681        

cost of awards OR PAYMENTS to be made during the like fiscal       7,682        

period, as determined by the administrator.                        7,683        

      The rate certified shall be applied and made a part of the   7,685        

gross payroll calculation for the period for which the foregoing   7,686        

estimates have been made, in conformity with section 125.21 of     7,687        

the Revised Code.  The amounts collected shall be remitted to the  7,688        

bureau as provided in section 125.21 of the Revised Code.          7,689        

      If the amounts remitted to the bureau for a fiscal period    7,691        

are greater or less than actual awards OR PAYMENTS for the like    7,692        

period by reason of an error in the prior estimates of gross       7,694        

payroll or awards OR PAYMENTS, the overage or shortage shall be    7,695        

included by the administrator in determining the rate for the      7,696        

next succeeding fiscal period.                                     7,697        

      In fixing the amount of contribution to be made by the       7,699        

state and each of its departments, agencies, and                   7,700        

instrumentalities, the administrator shall classify departments,   7,701        

agencies, and instrumentalities into such groups as will           7,702        

equitably determine the contributions in accordance with their     7,703        

individual accident experience so that the state and its           7,704        

departments, agencies, and instrumentalities contribute an amount  7,705        

sufficient to meet individual obligations and maintain a solvent   7,706        

public insurance fund.                                             7,707        

      Moneys collected from state employers shall not be used to   7,709        

pay compensation or other benefits attributable to service of      7,710        

persons as employees of counties or taxing districts therein, nor  7,711        

shall moneys collected from counties and taxing districts therein  7,712        

be used to pay compensation or other benefits attributable to      7,713        

service of persons as employees of the state.                      7,714        

      Sec. 4701.10.  (A)  Permits to practice public accounting    7,724        

shall be issued by the accountancy board to holders of the         7,725        

certificate of certified public accountant issued under section    7,726        

4701.06 or 4701.061 of the Revised Code and to persons registered  7,727        

under sections 4701.07 and 4701.09 of the Revised Code.  Subject   7,728        

                                                          176    

                                                                 
to division (D)(1) of this section, there shall be a triennial     7,729        

permit fee in an amount to be determined by the board not to       7,730        

exceed one hundred fifty dollars.  All permits shall expire on     7,731        

the last day of December of the year assigned by the board and,    7,732        

subject to division (D)(1) of this section, shall be renewed       7,733        

triennially for a period of three years by certificate holders     7,734        

and registrants in good standing upon payment of a triennial       7,735        

renewal fee not to exceed one hundred fifty dollars.  For the                   

purpose of implementing this section and enforcing section         7,737        

4701.11 of the Revised Code, the board may issue a permit for      7,738        

less than three years' duration.  A prorated fee shall be                       

determined by the board for such permit.  Renewal of permits       7,739        

shall be according to the standard renewal procedure of sections   7,740        

4745.01 to 4745.03 of the Revised Code.  Failure of any            7,741        

certificate holder or registrant to apply for a triennial permit   7,742        

to practice within three years from the expiration date of the     7,743        

permit to practice last obtained or renewed, or three years from   7,744        

the date upon which the certificate holder or registrant was       7,745        

granted his A certificate or registration, shall result in         7,746        

suspension of such certificate or registration unless the board    7,747        

determines such failure to have been due to excusable neglect.     7,748        

In such case the renewal fee or the fee for the issuance of the    7,749        

original permit, as the case may be, shall be such amount as the   7,750        

board shall determine, but not in excess of fifty dollars plus     7,751        

the fee for each triennial period or part of a period the          7,752        

certificate holder or registrant did not have a permit.            7,753        

      (B)  All certificate holders and registrants who are not in  7,755        

the practice of public accounting in this state shall register     7,756        

with the board every three years at a fee, not to exceed           7,757        

fifty-five dollars, established by the board.  Such persons shall  7,758        

not convey to the general public that they are actively engaged    7,759        

in the practice of public accounting in this state.                7,760        

      (C)  The board shall suspend the certificate or              7,762        

registration of any person failing to obtain a permit in           7,763        

                                                          177    

                                                                 
accordance with this section except that the board may by rule     7,764        

exempt persons from the requirement of holding a permit for such   7,765        

reasons as retirement, health reasons, military service, foreign   7,766        

residency, or other just cause.                                    7,767        

      (D)(1)  On and after January 1, 1995, the board shall, by    7,769        

rule adopted in accordance with Chapter 119. of the Revised Code,  7,770        

increase the triennial permit and renewal fee imposed pursuant to  7,771        

this section by at least fifteen dollars but no more than thirty   7,772        

dollars.                                                           7,773        

      (2)  Beginning with the first quarter of 1995 and each       7,775        

quarter thereafter, the board, for the purpose provided in         7,776        

section 4743.05 of the Revised Code, shall certify to the          7,777        

director of budget and management the number of triennial permits  7,778        

renewed under this chapter during the preceding quarter and the    7,779        

amount equal to that number times the amount by which the          7,780        

triennial permit and renewal fee is increased by the board under   7,781        

division (D)(1) of this section.                                   7,782        

      Sec. 4701.20.  All receipts of the accountancy board shall   7,791        

be deposited in the state treasury to the credit of the            7,792        

occupational licensing and regulatory fund, EXCEPT THAT ANY        7,793        

PAYMENT MADE TO THE BOARD IN CONNECTION WITH AN APPLICATION FOR    7,794        

EXAMINATION OR FOR A PERMIT, REGISTRATION, OR CERTIFICATE SHALL    7,795        

BE DEPOSITED ONLY AFTER THE BOARD APPROVES THE APPLICATION.  IN                 

THE EVENT THE APPLICATION IS NOT APPROVED, THE BOARD SHALL RETURN  7,796        

THE PAYMENT TO THE APPLICANT.  All                                 7,797        

      ALL vouchers of the board shall be approved by the board     7,800        

president or executive secretary, or both, as authorized by the    7,801        

board.                                                                          

      Sec. 4743.05.  Except as otherwise provided in sections      7,810        

4701.20, 4723.061, and 4729.65 of the Revised Code, all money      7,811        

collected under Chapters 3773., 4701., 4703., 4709., 4713.,        7,812        

4715., 4717., 4723., 4725., 4729., 4732., 4733., 4734., 4736.,     7,813        

4741., 4753., 4755., 4757., 4759., and 4761. of the Revised Code   7,814        

shall be paid into the state treasury to the credit of the         7,815        

                                                          178    

                                                                 
occupational licensing and regulatory fund, which is hereby        7,816        

created for use in administering such chapters.  Money deposited   7,817        

to the credit of the fund under section 4731.24 of the Revised     7,818        

Code shall be used until July 1, 1998, for administering Chapters  7,819        

4730. and 4731. of the Revised Code.                               7,820        

      At the end of each quarter, the director OF BUDGET AND       7,822        

MANAGEMENT shall transfer from the occupational licensing and      7,824        

regulatory fund to the nurse education assistance fund created in  7,825        

section 3333.28 of the Revised Code the amount certified to the    7,826        

director under division (B) of section 4723.08 of the Revised      7,827        

Code.                                                                           

      At the end of the first quarter of 1995 and at the end of    7,829        

each quarter thereafter, the director shall transfer from the      7,830        

occupational licensing and regulatory fund to the certified        7,831        

public accountant education assistance fund created in section     7,832        

4701.26 of the Revised Code the amount certified to the director   7,834        

under division (D)(2) of section 4701.10 of the Revised Code.                   

      Sec. 4745.01.  (A)  "Standard renewal procedure," as used    7,843        

in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923.,  7,844        

927., 942., 943., 953., 1321., 3710., 3713., 3715., 3719., 3731.,  7,845        

3742., 3748., 3769., 3783., 3921., 3951., 4104., 4105., 4143.,     7,846        

4169., 4561., 4701., 4703., 4707., 4709., 4713., 4715., 4717.,     7,847        

4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 4735.,     7,848        

4739., 4741., 4747., 4749., 4753., 4755., 4757., 4759., 4761.,     7,849        

4766., 4773., and 4775. of the Revised Code, means the license     7,850        

renewal procedures specified in this chapter.                      7,851        

      (B)  "Licensing agency," as used in this chapter, means any  7,853        

department, division, board, section of a board, or other state    7,854        

governmental unit subject to the standard renewal procedure, as    7,855        

defined in this section, and authorized by the Revised Code to     7,856        

issue a license to engage in a specific profession, occupation,    7,857        

or occupational activity, or to have charge of and operate         7,858        

certain specified equipment, machinery, or premises.               7,859        

      (C)  "License," as used in this chapter, means a license,    7,861        

                                                          179    

                                                                 
certificate, permit, card, or other authority issued or conferred  7,862        

by a licensing agency by authority of which the licensee has or    7,863        

claims the privilege to engage in the profession, occupation, or   7,864        

occupational activity, or to have control of and operate certain   7,865        

specific equipment, machinery, or premises, over which the         7,866        

licensing agency has jurisdiction.                                 7,867        

      (D)  "Licensee," as used in this chapter, means either the   7,869        

person to whom the license is issued or renewed by a licensing     7,870        

agency, or the person, partnership, or corporation at whose        7,871        

request the license is issued or renewed.                          7,872        

      (E)  "Renewal" and "renewed," as used in this chapter and    7,874        

in the chapters of the Revised Code specified in division (A) of   7,875        

this section, includes the continuing licensing procedure          7,876        

provided in Chapter 3748. of the Revised Code and rules adopted    7,878        

under it and in sections 1321.05 and 3921.33 of the Revised Code,  7,879        

and as applied to those continuing licenses any reference in this  7,881        

chapter to the date of expiration of any license shall be          7,882        

construed to mean the due date of the annual or other fee for the  7,883        

continuing license.                                                             

      Sec. 4981.091.  THERE IS HEREBY CREATED IN THE STATE         7,885        

TREASURY THE FEDERAL RAIL FUND.  THE FUND SHALL CONSIST OF MONEY   7,887        

RECEIVED PURSUANT TO SECTION 4981.08 OF THE REVISED CODE AND SUCH  7,888        

OTHER MONEY AS MAY BE PROVIDED BY LAW.  THE FUND SHALL BE USED TO  7,889        

ACQUIRE, REHABILITATE, OR DEVELOP RAIL PROPERTY OR SERVICE; TO     7,890        

PARTICIPATE IN THE ACQUISITION OF RAIL PROPERTY WITH THE FEDERAL   7,891        

GOVERNMENT, MUNICIPAL CORPORATIONS, TOWNSHIPS, COUNTIES, OR OTHER  7,892        

GOVERNMENTAL AGENCIES; AND TO PROMOTE, PLAN, DESIGN, CONSTRUCT,    7,893        

OPERATE, AND MAINTAIN PASSENGER AND FREIGHT RAIL TRANSPORTATION    7,894        

SYSTEMS.  THE FUND ALSO MAY BE USED TO PAY THE ADMINISTRATIVE      7,895        

COSTS OF THE OHIO RAIL DEVELOPMENT COMMISSION ASSOCIATED WITH      7,896        

CONDUCTING ANY AUTHORIZED RAIL PROGRAM, AND FOR ANY PURPOSE                     

AUTHORIZED BY SECTIONS 4981.03 AND 5501.56 OF THE REVISED CODE.    7,897        

THE FUND SHALL NOT BE USED TO PROVIDE LOAN GUARANTEES.             7,898        

INVESTMENT EARNINGS ON MONEYS CREDITED TO THE FUND SHALL BE        7,899        

                                                          180    

                                                                 
RETAINED BY THE FUND.                                                           

      IN ACQUIRING RAIL PROPERTY, THE OHIO RAIL DEVELOPMENT        7,901        

COMMISSION MAY OBTAIN ACQUISITION LOANS FROM THE FEDERAL           7,903        

GOVERNMENT OR FROM ANY OTHER SOURCE.                                            

      Sec. 5101.93.  (A)  There is hereby established a welfare    7,913        

oversight council consisting of eight voting members, four of      7,914        

whom shall be members of the house of representatives, two         7,915        

appointed by the speaker and two appointed by the minority leader  7,916        

of the house of representatives, not more than two of whom shall   7,917        

be members of the same political party, and four of whom shall be  7,918        

members of the senate, two appointed by the president and two      7,919        

appointed by the minority leader of the senate, not more than two  7,920        

of whom shall be members of the same political party.  The         7,921        

director of administrative services, the administrator of the      7,922        

bureau of employment services, and the director of human services  7,923        

shall be ex officio nonvoting members and two representatives of   7,924        

the general public appointed by the governor shall be nonvoting    7,925        

members of the council.  The council may, by a majority vote, add  7,927        

other nonvoting members to the council.  A vacancy on the council  7,929        

shall be filled in the same manner as the original appointment.    7,930        

      (B)  The speaker of the house of representatives shall       7,932        

designate the initial chairperson of the welfare oversight         7,933        

council and the president of the senate shall designate the        7,934        

initial vice-chairperson of the council.  Thereafter, the          7,935        

authority to designate the chairperson and the vice-chairperson    7,936        

shall alternate between the speaker of the house and the           7,937        

president of the senate.  The chairperson and vice-chairperson     7,938        

and other members of the council shall serve one-year terms.       7,939        

      The council shall meet at least twice FOUR TIMES a year in   7,942        

Columbus or other locations selected by the chairperson to         7,943        

monitor and review the Ohio works first program established under  7,944        

Chapter 5107. of the Revised Code, INCLUDING SANCTIONS IMPOSED     7,945        

UNDER SECTION 5107.16 OF THE REVISED CODE; the prevention,                      

retention, and contingency program established under Chapter       7,947        

                                                          181    

                                                                 
5108. of the Revised Code; and the department of human services,   7,948        

county departments of human services, child support enforcement    7,949        

agencies, and public children services agencies.  The council may  7,950        

visit the department, county departments, and agencies.            7,951        

      The chairperson of the council shall determine the agenda    7,954        

for each meeting of the council, except that if at least four      7,955        

legislative members of the council submit a written request to     7,956        

the chairperson to consider an item, the chairperson shall place   7,957        

the item on the agenda of the council's next regularly scheduled   7,958        

meeting occurring more than ten days after the written request is  7,959        

submitted to the chairperson.                                                   

      (C)  The members of the welfare oversight council shall      7,961        

serve without compensation but shall be reimbursed for their       7,962        

actual and necessary expenses incurred in the discharge of their   7,963        

official duties.  In the discharge of its duties the council may   7,965        

issue subpoenas compelling the attendance of witnesses and the     7,966        

production of any records of the department of human services or   7,967        

local agencies.  The council shall adopt rules to implement this   7,968        

section.                                                                        

      (D)  The welfare oversight council shall advise the general  7,970        

assembly on the performance of the department of human services,   7,972        

county departments of human services, child support enforcement    7,973        

agencies, and public children services agencies.  The council      7,974        

shall submit recommendations to the general assembly for any       7,975        

changes in law that the council considers necessary or             7,976        

appropriate. Between lines 9,970a and 9,979, insert:               7,977        

      Sec. 5104.32.  (A)  Except as provided in division (C) of    7,987        

this section, all purchases of publicly funded child day-care      7,988        

shall be made under a contract entered into by a licensed child    7,989        

day-care center, licensed type A family day-care home, certified   7,990        

type B family day-care home, certified in-home aide, approved      7,991        

child day camp, licensed preschool program, or licensed school     7,992        

child program and the county department of human services.  A      7,993        

county department of human services may enter into a contract      7,994        

                                                          182    

                                                                 
with a provider for publicly funded child day-care for a                        

specified period of time or upon a continuous basis for an         7,995        

unspecified period of time.  All contracts for publicly funded     7,996        

child day-care shall be contingent upon the availability of state  7,997        

and federal funds.  The department of human services shall         7,998        

prescribe a standard form to be used for all contracts for the     7,999        

purchase of publicly funded child day-care, regardless of the      8,000        

source of public funds used to purchase the child day-care.  To    8,001        

the extent permitted by federal law and notwithstanding any other  8,002        

provision of the Revised Code that regulates state or county       8,003        

contracts or contracts involving the expenditure of state,         8,004        

county, or federal funds, all contracts for publicly funded child  8,005        

day-care shall be entered into in accordance with the provisions   8,006        

of this chapter and are exempt from any other provision of the     8,007        

Revised Code that regulates state or county contracts or           8,008        

contracts involving the expenditure of state, county, or federal   8,009        

funds.                                                             8,010        

      (B)  Each contract for publicly funded child day-care shall  8,012        

specify at least the following:                                    8,013        

      (1)  That EXCEPT AS PROVIDED IN DIVISION (B)(2) OF THIS      8,015        

SECTION, THAT the provider of publicly funded child day-care       8,016        

agrees to be paid for rendering services at the lower of the rate  8,017        

customarily charged by the provider for children enrolled for      8,018        

child day-care or the rate of reimbursement established pursuant   8,020        

to section 5104.30 of the Revised Code;                                         

      (2)  IF THE PROVIDER PROVIDES PUBLICLY FUNDED CHILD          8,022        

DAY-CARE TO CARETAKER PARENTS WHO WORK NONTRADITIONAL HOURS, THAT  8,023        

THE PROVIDER IS TO BE PAID FOR RENDERING SERVICES TO THOSE         8,024        

CARETAKER PARENTS AT THE RATE OF REIMBURSEMENT ESTABLISHED         8,025        

PURSUANT TO SECTION 5104.30 OF THE REVISED CODE REGARDLESS OF      8,027        

WHETHER THAT RATE IS HIGHER THAN THE RATE THE PROVIDER             8,028        

CUSTOMARILY CHARGES FOR CHILDREN ENROLLED FOR CHILD DAY-CARE;      8,029        

      (3)  That, if a provider provides child day-care to an       8,031        

individual potentially eligible for publicly funded child          8,032        

                                                          183    

                                                                 
day-care who is subsequently determined to be eligible, the        8,033        

county department agrees to pay for all child day-care provided    8,034        

between the date the county department receives the individual's   8,035        

completed application and the date the individual's eligibility    8,036        

is determined;                                                     8,037        

      (3)(4)  Whether the county department of human services,     8,039        

the provider, or a child day-care resource and referral service    8,040        

organization will make eligibility determinations, whether the     8,041        

provider or a child day-care resource and referral service         8,042        

organization will be required to collect information to be used    8,043        

by the county department to make eligibility determinations, and   8,044        

the time period within which the provider or child day-care        8,045        

resource and referral service organization is required to          8,046        

complete required eligibility determinations or to transmit to     8,047        

the county department any information collected for the purpose    8,048        

of making eligibility determinations;                              8,049        

      (4)(5)  That the provider shall continue to be licensed,     8,051        

approved, or certified pursuant to this chapter or sections        8,052        

3301.52 to 3301.59 of the Revised Code and shall comply with all   8,053        

standards and other requirements in this chapter and those         8,054        

sections and in rules adopted pursuant to this chapter or those    8,055        

sections for maintaining the provider's license, approval, or      8,056        

certification;                                                     8,057        

      (5)(6)  Whether the provider will be paid by the county      8,059        

department of human services or the state department of human      8,060        

services;                                                          8,061        

      (6)(7)  That the contract is subject to the availability of  8,063        

state and federal funds.                                           8,064        

      (C)  Unless specifically prohibited by federal law, the      8,066        

county department of human services shall give individuals         8,067        

eligible for publicly funded child day-care the option of          8,068        

obtaining certificates for payment that the individual may use to  8,069        

purchase services from any provider qualified to provide publicly  8,070        

funded child day-care under section 5104.31 of the Revised Code.   8,071        

                                                          184    

                                                                 
Providers of publicly funded child day-care may present these      8,072        

certificates for payment for reimbursement in accordance with      8,073        

rules that the department of human services shall adopt.  Only     8,074        

providers may receive reimbursement for certificates for payment.  8,075        

The value of the certificate for payment shall be based on the     8,076        

lower of the rate customarily charged by the provider or the rate  8,078        

of reimbursement established pursuant to section 5104.30 of the    8,079        

Revised Code,  UNLESS THE PROVIDER PROVIDES PUBLICLY FUNDED CHILD  8,080        

DAY-CARE TO CARETAKER PARENTS WHO WORK NONTRADITIONAL HOURS, IN    8,081        

WHICH CASE THE VALUE OF THE CERTIFICATE FOR PAYMENT FOR THE        8,082        

SERVICES TO THOSE CARETAKER PARENTS SHALL BE BASED ON THE RATE OF  8,083        

REIMBURSEMENT ESTABLISHED PURSUANT TO THAT SECTION REGARDLESS OF   8,084        

WHETHER THAT RATE IS HIGHER THAN THE RATE CUSTOMARILY CHARGED BY   8,085        

THE PROVIDER.  The county department may provide the certificates  8,087        

for payment to the individuals or may contract with child          8,088        

day-care providers or child day-care resource and referral                      

service organizations that make determinations of eligibility for  8,089        

publicly funded child day-care pursuant to contracts entered into  8,090        

under section 5104.34 of the Revised Code for the providers or     8,091        

resource and referral service organizations to provide the         8,092        

certificates for payment to individuals whom they determine are    8,093        

eligible for publicly funded child day-care.                       8,094        

      Sec. 5104.34.  (A)(1)  Each county department of human       8,103        

services shall implement procedures for making determinations of   8,104        

eligibility for publicly funded child day-care.  Under those       8,105        

procedures, the eligibility determination for each applicant       8,106        

shall be made no later than thirty calendar days from the date     8,107        

the county department receives a completed application for         8,108        

publicly funded child day-care.  Each applicant shall be notified  8,109        

promptly of the results of the eligibility determination.  An      8,110        

applicant aggrieved by a decision or delay in making an            8,111        

eligibility determination may appeal the decision or delay to the  8,112        

department of human services in accordance with section 5101.35    8,113        

of the Revised Code.  The due process rights of applicants shall   8,114        

                                                          185    

                                                                 
be protected.                                                      8,115        

      To the extent permitted by federal law, the county           8,117        

department may make all determinations of eligibility for          8,118        

publicly funded child day-care, may contract with child day-care   8,119        

providers or child day-care resource and referral service          8,120        

organizations for the providers or resource and referral service   8,121        

organizations to make all or any part of the determinations, and   8,122        

may contract with child day-care providers or child day-care       8,123        

resource and referral service organizations for the providers or   8,124        

resource and referral service organizations to collect specified   8,125        

information for use by the county department in making             8,126        

determinations.  If a county department contracts with a child     8,127        

day-care provider or a child day-care resource and referral        8,128        

service organization for eligibility determinations or for the     8,129        

collection of information, the contract shall require the          8,130        

provider or resource and referral service organization to make     8,131        

each eligibility determination no later than thirty calendar days  8,132        

from the date the provider or resource and referral organization   8,133        

receives a completed application that is the basis of the          8,134        

determination and to collect and transmit all necessary            8,135        

information to the county department within a period of time that  8,136        

enables the county department to make each eligibility             8,137        

determination no later than thirty days after the filing of the    8,138        

application that is the basis of the determination.                8,139        

      The county department may station employees of the           8,141        

department in various locations throughout the county and may      8,142        

assign employees of the department to hours of employment outside  8,143        

the normal working hours of the department to collect information  8,144        

relevant to applications for publicly funded child day-care and    8,145        

to make eligibility determinations.  The county department, child  8,146        

day-care provider, and child day-care resource and referral        8,147        

service organization shall make each determination of eligibility  8,148        

for publicly funded child day-care no later than thirty days       8,149        

after the filing of the application that is the basis of the       8,150        

                                                          186    

                                                                 
determination, shall make each determination in accordance with    8,151        

any relevant rules adopted pursuant to section 5104.38 of the      8,152        

Revised Code, and shall notify promptly each applicant for         8,153        

publicly funded child day-care of the results of the               8,154        

determination of the applicant's eligibility.                      8,155        

      On or before October 1, 1991, the department of human        8,157        

services shall adopt rules in accordance with Chapter 119. of the  8,158        

Revised Code for monitoring the eligibility determination          8,159        

process.  In accordance with those rules, the state department     8,160        

shall monitor eligibility determinations made by county            8,161        

departments of human services and shall direct any entity that is  8,162        

not in compliance with this division or any rule adopted under     8,163        

this division to implement corrective action specified by the      8,164        

department.                                                        8,165        

      (2)  All eligibility determinations for publicly funded      8,168        

child day-care shall be made in accordance with rules adopted by   8,169        

the department of human services pursuant to division (A) of       8,170        

section 5104.38 of the Revised Code AND, IF A COUNTY DEPARTMENT    8,172        

OF HUMAN SERVICES SPECIFIES, PURSUANT TO RULES ADOPTED UNDER       8,173        

DIVISION (B) OF THAT SECTION, A MAXIMUM AMOUNT OF INCOME A FAMILY  8,175        

MAY HAVE TO BE ELIGIBLE FOR PUBLICLY FUNDED CHILD DAY-CARE, THE    8,176        

INCOME MAXIMUM SPECIFIED BY THE COUNTY DEPARTMENT.  Publicly       8,177        

funded child day-care may be provided only to eligible infants,    8,178        

toddlers, preschool children, and school children under age        8,179        

thirteen.  For an applicant to be eligible for publicly funded     8,180        

child day-care, the caretaker parent must be employed or           8,181        

participating in a program of education or training for an amount  8,182        

of time reasonably related to the time that the parent's children  8,183        

are receiving publicly funded child day-care.  This restriction    8,184        

does not apply to families whose children are eligible for                      

protective or special needs day-care.                              8,185        

      Subject to available funds, the A COUNTY department OF       8,187        

HUMAN SERVICES shall allow a family to continue to receive         8,189        

publicly funded child day-care until UNLESS the family's income    8,190        

                                                          187    

                                                                 
exceeds one hundred fifty per cent of the federal poverty line     8,191        

THE MAXIMUM INCOME ELIGIBILITY LIMIT.  Initial and continued       8,193        

eligibility for publicly funded child day-care is subject to       8,194        

available funds unless the family is receiving transitional child               

day-care as provided under this section, participating in the      8,195        

Ohio works first program established under Chapter 5107. of the    8,197        

Revised Code, or was receiving publicly funded child day-care on   8,199        

October 1, 1997, and has a family income below one hundred fifty   8,200        

per cent of the federal poverty line.  If the department must      8,201        

limit eligibility due to lack of available funds, it shall give    8,202        

first priority for publicly funded child day-care to an            8,203        

assistance group whose income is not more than one hundred fifty   8,204        

per cent of the federal poverty line THE MAXIMUM INCOME                         

ELIGIBILITY LIMIT that received transitional child day-care in     8,206        

the previous month but is no longer eligible because the                        

twelve-month period has expired.  Such an assistance group shall   8,207        

continue to receive priority for publicly funded child day-care    8,208        

until its income exceeds one hundred fifty per cent of the         8,209        

federal poverty line THE MAXIMUM INCOME ELIGIBILITY LIMIT.         8,210        

      (3)  An assistance group that ceases to participate in the   8,212        

Ohio works first program established under Chapter 5107. of the    8,214        

Revised Code is eligible for transitional child day-care at any    8,216        

time during the immediately following twelve-month period that     8,217        

both of the following apply:                                                    

      (a)  The assistance group requires child day-care due to     8,219        

employment;                                                        8,220        

      (b)  The assistance group's income is not more than one      8,222        

hundred fifty per cent of the federal poverty line.                8,223        

      An assistance group ineligible to participate in the Ohio    8,225        

works first program pursuant to section 5101.83 or section         8,226        

5107.16 of the Revised Code is not eligible for transitional       8,229        

child day-care.                                                    8,230        

      (B)  To the extent permitted by federal law, a county        8,232        

department of human services may require a caretaker parent        8,233        

                                                          188    

                                                                 
determined to be eligible for publicly funded child day-care to    8,234        

pay a fee according to the schedule of fees established in rules   8,235        

adopted under section 5104.38 of the Revised Code.  Each county    8,236        

department shall make protective day-care services available to    8,239        

children without regard to the income or assets of the caretaker   8,240        

parent of the child.                                               8,241        

      (C)  A caretaker parent receiving publicly funded child      8,243        

day-care shall report to the entity that determined eligibility    8,245        

any changes in status with respect to employment or participation  8,246        

in a program of education or training.                                          

      (D)  If a county department of human services determines     8,248        

that available resources are not sufficient to provide publicly    8,249        

funded child day-care to all eligible families who request it,     8,250        

the county department may establish a waiting list.  A county      8,251        

department may establish separate waiting lists within the         8,252        

waiting list based on income.  When resources become available to  8,254        

provide publicly funded child day-care to families on the waiting               

list, a county department that establishes a waiting list shall    8,255        

assess the needs of the next family scheduled to receive publicly  8,257        

funded child day-care.  If the assessment demonstrates that the    8,258        

family continues to need and is eligible for publicly funded                    

child day-care, the county department shall offer it to the        8,259        

family.  If the county department determines that the family is    8,260        

no longer eligible or no longer needs publicly funded child        8,261        

day-care, the county department shall remove the family from the   8,262        

waiting list.                                                                   

      (E)  AS USED IN THIS SECTION, "MAXIMUM INCOME ELIGIBILITY    8,265        

LIMIT" MEANS THE AMOUNT OF INCOME SPECIFIED IN RULES ADOPTED       8,266        

UNDER DIVISION (A) OF SECTION 5104.38 OF THE REVISED CODE OR, IF   8,269        

A COUNTY DEPARTMENT OF HUMAN SERVICES SPECIFIES A HIGHER AMOUNT    8,270        

PURSUANT TO RULES ADOPTED UNDER DIVISION (B) OF THAT SECTION, THE  8,272        

AMOUNT THE COUNTY DEPARTMENT SPECIFIES.                                         

      Sec. 5104.35.  (A)  The county department of human services  8,281        

shall do all of the following:                                     8,282        

                                                          189    

                                                                 
      (1)  Accept any gift, grant, or other funds from either      8,284        

public or private sources offered unconditionally or under         8,285        

conditions which are, in the judgment of the department, proper    8,286        

and consistent with this chapter and deposit the funds in the      8,287        

county public assistance fund established by section 5101.161 of   8,288        

the Revised Code;                                                  8,289        

      (2)  Recruit individuals and groups interested in            8,291        

certification as in-home aides or in developing and operating      8,292        

suitable licensed child day-care centers, type A family day-care   8,293        

homes, or certified type B family day-care homes, especially in    8,294        

areas with high concentrations of recipients of public             8,295        

assistance, and for that purpose provide consultation to           8,296        

interested individuals and groups on request;                      8,297        

      (3)  Inform clients of the availability of child day-care    8,299        

services;                                                          8,300        

      (4)  Pay to a child day-care center, type A family day-care  8,302        

home, certified type B family day-care home, in-home aide,         8,303        

approved child day camp, licensed preschool program, or licensed   8,304        

school child program for child day-care services, an THE amount    8,305        

equal to the amount customarily charged by the center, type A      8,307        

home, type B home, in-home aide, approved child day camp, or       8,308        

program when the full fee is paid, except that the amount of       8,309        

assistance shall not exceed the maximum rate established by the    8,310        

state department of human services PROVIDED FOR IN DIVISION (B)    8,311        

OF SECTION 5104.32 OF THE REVISED CODE.  If part of the cost of    8,312        

care of a child is paid by the child's parent or any other         8,313        

person, the amount paid shall be subtracted from the customary     8,314        

charge or the maximum rate, whichever is lower, prior to payment   8,315        

by AMOUNT the COUNTY department PAYS.                              8,317        

      (5)  In accordance with rules adopted pursuant to section    8,319        

5104.39 of the Revised Code, provide monthly reports to the        8,320        

director of human services and the director of budget and          8,321        

management regarding expenditures for the purchase of publicly     8,322        

funded child day-care.                                             8,323        

                                                          190    

                                                                 
      (B)  The county department of human services may do any of   8,325        

the following:                                                     8,326        

      (1)  To the extent permitted by federal law, use public      8,328        

child day-care funds to extend the hours of operation of the       8,329        

county department to accommodate the needs of working caretaker    8,330        

parents and enable those parents to apply for publicly funded      8,331        

child day-care;                                                    8,332        

      (2)  In accordance with rules adopted by the state           8,334        

department of human services, request a waiver of the maximum      8,335        

rate of assistance that is established by the state department of  8,336        

human services pursuant to section 5104.30 of the Revised Code     8,337        

for the purpose of paying a higher rate for publicly funded child  8,338        

day-care based upon the special needs of a child, the special      8,339        

circumstances of a family, or unique child day-care market         8,340        

conditions;                                                        8,341        

      (3)  To the extent permitted by federal law, use state and   8,343        

federal funds to pay deposits and other advance payments that a    8,344        

provider of child day-care customarily charges all children who    8,345        

receive child day-care from that provider;                         8,346        

      (4)  To the extent permitted by federal law, pay for up to   8,348        

thirty days of child day-care for a child whose caretaker parent   8,349        

is seeking employment, taking part in employment orientation       8,350        

activities, or taking part in activities in anticipation of        8,351        

enrollment or attendance in an education or training program or    8,352        

activity, if the employment or education or training program or    8,353        

activity is expected to begin within the thirty-day period.        8,354        

      Sec. 5104.38.  In addition to any other rules adopted under  8,363        

this chapter, the department of human services shall adopt rules   8,364        

in accordance with Chapter 119. of the Revised Code governing      8,366        

financial and administrative requirements for publicly funded                   

child day-care and establishing all of the following:              8,367        

      (A)  Procedures and criteria to be used in making            8,369        

determinations of eligibility for publicly funded child day-care   8,370        

that give priority to children of families with lower incomes and  8,372        

                                                          191    

                                                                 
procedures and criteria for eligibility for publicly funded        8,373        

protective day-care.  The rules shall specify the maximum amount   8,374        

of income a family may have for initial AND CONTINUED              8,375        

eligibility.  THE MAXIMUM AMOUNT SHALL NOT EXCEED ONE HUNDRED      8,376        

EIGHTY-FIVE PER CENT OF THE FEDERAL POVERTY LINE.                  8,377        

      (B)  PROCEDURES UNDER WHICH A COUNTY DEPARTMENT OF HUMAN     8,379        

SERVICES MAY, IF THE DEPARTMENT, UNDER DIVISION (A) OF THIS        8,381        

SECTION, SPECIFIES A MAXIMUM AMOUNT OF INCOME A FAMILY MAY HAVE    8,382        

FOR ELIGIBILITY FOR PUBLICLY FUNDED CHILD DAY-CARE THAT IS LESS    8,383        

THAN ONE HUNDRED EIGHTY-FIVE PER CENT OF THE FEDERAL POVERTY       8,384        

LINE, SPECIFY A MAXIMUM AMOUNT OF INCOME A FAMILY RESIDING IN THE               

COUNTY THE COUNTY DEPARTMENT SERVES MAY HAVE FOR INITIAL AND       8,385        

CONTINUED ELIGIBILITY FOR PUBLICLY FUNDED CHILD DAY-CARE THAT IS   8,386        

HIGHER THAN THE AMOUNT SPECIFIED BY THE DEPARTMENT BUT DOES NOT    8,387        

EXCEED ONE HUNDRED EIGHTY-FIVE PER CENT OF THE FEDERAL POVERTY     8,388        

LINE;                                                                           

      (C)  A schedule of fees requiring all eligible caretaker     8,391        

parents to pay a fee for publicly funded child day-care according  8,392        

to income and family size, which shall be uniform for all types    8,393        

of publicly funded child day-care, except as authorized by rule,   8,394        

and, to the extent permitted by federal law, shall permit the use  8,396        

of state and federal funds to pay the customary deposits and       8,397        

other advance payments that a provider charges all children who    8,398        

receive child day-care from that provider;                         8,399        

      (C)(D)  A formula based upon a percentage of the county's    8,401        

total expenditures for publicly funded child day-care for          8,402        

determining the maximum amount of state and federal funds          8,403        

appropriated for publicly funded child day-care that a county      8,404        

department may use for administrative purposes;                    8,405        

      (D)(E)  Procedures to be followed by the department and      8,407        

county departments in recruiting individuals and groups to become  8,408        

providers of child day-care;                                       8,409        

      (E)(F)  Procedures to be followed in establishing state or   8,411        

local programs designed to assist individuals who are eligible     8,412        

                                                          192    

                                                                 
for publicly funded child day-care in identifying the resources    8,413        

available to them and to refer the individuals to appropriate      8,414        

sources to obtain child day-care;                                  8,415        

      (F)(G)  Procedures to deal with fraud and abuse committed    8,417        

by either recipients or providers of publicly funded child         8,418        

day-care;                                                                       

      (G)(H)  Procedures for establishing a child day-care grant   8,420        

or loan program in accordance with the child care block grant      8,421        

act;                                                                            

      (H)(I)  Standards and procedures for applicants to apply     8,423        

for grants and loans, and for the department to make grants and    8,424        

loans;                                                             8,425        

      (I)(J)  A definition of "person who stands in loco           8,427        

parentis" for the purposes of division (HH)(1) of section 5104.01  8,429        

of the Revised Code;                                                            

      (J)(K)  Any other rules necessary to carry out sections      8,431        

5104.30 to 5104.39 of the Revised Code.                            8,432        

      Sec. 5711.22.  (A)  Deposits not taxed at the source shall   8,441        

be listed and assessed at their amount in dollars on the day they  8,442        

are required to be listed.  Moneys shall be listed and assessed    8,443        

at the amount thereof in dollars on hand on the day that they are  8,444        

required to be listed.  In listing investments, the amount of the  8,445        

income yield of each for the calendar year next preceding the      8,446        

date of listing shall, except as otherwise provided in this        8,447        

chapter, be stated in dollars and cents and the assessment         8,448        

thereof shall be at the amount of such income yield; but any       8,449        

property defined as investments in either division (A) or (B) of   8,450        

section 5701.06 of the Revised Code that has not been outstanding  8,452        

for the full calendar year next preceding the date of listing,     8,453        

except shares of stock of like kind as other shares of the same    8,454        

corporation outstanding for the full calendar year next preceding  8,455        

the date of listing, or which has yielded no income during such    8,456        

calendar year shall be listed and assessed as unproductive         8,457        

investments, at their true value in money on the day that such     8,458        

                                                          193    

                                                                 
investments are required to be listed.                                          

      Credits and other taxable intangibles shall be listed and    8,460        

assessed at their true value in money on the day as of which the   8,461        

same are required to be listed.                                    8,462        

      Shares of stock of a bank holding company, as defined in     8,464        

Title 12 U.S.C.A., section 1841, which are required to be listed   8,465        

for taxation under this division and upon which dividends were     8,466        

paid during the year of their issuance, which dividends are        8,467        

subject to taxation under the provisions of Chapter 5747. of the   8,468        

Revised Code, shall be exempt from the intangibles tax for the     8,469        

year immediately succeeding their issuance.  If such shares bear   8,471        

dividends the first calendar year after their issuance, which      8,472        

dividends are subject to taxation under the provisions of Chapter  8,473        

5747. of the Revised Code, it shall be deemed that the             8,474        

nondelinquent intangible property tax pursuant to division (A) of  8,475        

section 5707.04 of the Revised Code was paid on those dividends    8,476        

paid that first calendar year after the issuance of the shares.    8,477        

      (B)(1)  Boilers, machinery, equipment, and personal          8,479        

property the true value of which is determined under division (B)  8,480        

of section 5711.21 of the Revised Code shall be listed and         8,481        

assessed at an amount equal to the sum of the products determined  8,482        

under divisions (B)(1)(a), (b), and (c) of this section.           8,483        

      (a)  Multiply the portion of the true value determined       8,485        

under division (B)(1) of section 5711.21 of the Revised Code by    8,486        

the assessment rate for the appropriate year in division (D)(E)    8,488        

of this section;                                                                

      (b)  Multiply the portion of the true value determined       8,490        

under division (B)(2) of section 5711.21 of the Revised Code by    8,491        

the assessment rate in section 5727.111 of the Revised Code that   8,492        

is applicable to the production equipment of an electric company;  8,493        

      (c)  Multiply the portion of the true value determined       8,495        

under division (B)(3) of section 5711.21 of the Revised Code by    8,496        

the assessment rate in section 5727.111 of the Revised Code that   8,497        

is applicable to the property of an electric company that is not   8,498        

                                                          194    

                                                                 
production equipment.                                              8,499        

      (2) Personal property leased to a public utility or          8,501        

interexchange telecommunications company as defined in section     8,502        

5727.01 of the Revised Code and used directly in the rendition of  8,503        

a public utility service as defined in division (P) of section     8,504        

5739.01 of the Revised Code shall be listed and assessed at the    8,505        

same percentage of true value in money that such property is       8,506        

required to be assessed by section 5727.111 of the Revised Code    8,507        

if owned by the public utility or interexchange                    8,508        

telecommunications company.                                        8,509        

      (C)(1)  Merchandise or an agricultural product shipped from  8,511        

outside this state and held in this state in a warehouse or a      8,512        

place of storage without further manufacturing or processing and   8,513        

for storage only and for shipment outside this state, but that is  8,515        

taxable because it does not qualify as "not used in business in    8,517        

this state" under division (B)(1) or (2) of section 5701.08 of                  

the Revised Code, shall be listed and assessed at a rate of        8,518        

twenty-five one-hundredths of its true value in money until        8,519        

reduced in accordance with the following schedule:                 8,520        

      (a)  For any year, subtract five one-hundredths from the     8,522        

rate at which such property was required to be listed and          8,523        

assessed in the preceding year, if the total statewide collection  8,524        

of all real and tangible personal property taxes for the second    8,526        

preceding year exceeded the total statewide collection of all                   

real and tangible personal property taxes for the third preceding  8,527        

year by more than the greater of four per cent or the rate of      8,528        

increase from the third to the second preceding years in the       8,529        

average consumer price index (all urban consumers, all items)      8,530        

prepared by the bureau of labor statistics of the United States    8,531        

department of labor;                                                            

      (b)  If no reduction in the assessment rate is made for a    8,533        

year, the rate is the same as for the preceding year.              8,534        

      (2)  Each year until the year the assessment rate equals     8,536        

zero, the tax commissioner shall determine the assessment rate     8,537        

                                                          195    

                                                                 
required under this division and shall notify all county auditors  8,538        

of that rate.                                                                   

      (3)  Notwithstanding provisions to the contrary in division  8,540        

(B) of section 5701.08 of the Revised Code, during and after the   8,541        

year for which the assessment rate as calculated under this        8,542        

division equals zero, any merchandise or agricultural product      8,543        

shipped from outside this state and held in this state in any      8,544        

warehouse or place of storage, whether public or private, without               

further manufacturing or processing and for storage only and for   8,545        

shipment outside this state to any person for any purpose is not   8,546        

used in business in this state for property tax purposes.          8,548        

      (D)(1)  Merchandise or an agricultural product owned by a    8,550        

qualified out-of-state person shipped from outside this state and  8,552        

held in this state in a public warehouse without further                        

manufacturing or processing and for temporary storage only and     8,553        

for shipment inside this state, but that is taxable because it     8,554        

does not qualify as "not used in business in this state" under     8,555        

division (B)(1) or (2) of section 5701.08 of the Revised Code,     8,558        

shall be listed and assessed at a rate of twenty-five              8,559        

one-hundredths of its true value in money until reduced in         8,560        

accordance with the following schedule:                            8,561        

      (a)  For any year, subtract five one-hundredths from the     8,564        

rate at which such property was required to be listed and          8,565        

assessed in the preceding year, if the total statewide collection  8,566        

of all real and tangible personal property taxes for the second    8,567        

preceding year exceeded the total statewide collection of all      8,568        

real and tangible personal property taxes for the third preceding  8,569        

year by more than the greater of four per cent or the rate of      8,570        

increase from the third to the second preceding years in the       8,571        

average consumer price index (all urban consumers, all items)      8,572        

prepared by the bureau of labor statistics of the United States    8,574        

department of labor;                                               8,575        

      (b)  If no reduction in the assessment rate is made for a    8,578        

year, the rate is the same as for the preceding year.              8,579        

                                                          196    

                                                                 
      (2)  Each year until the year the assessment rate equals     8,581        

zero, the tax commissioner shall determine the assessment rate     8,582        

required under this division and shall notify all county auditors  8,584        

of that rate.                                                                   

      (3)  Notwithstanding provisions to the contrary in division  8,587        

(B) of section 5701.08 of the Revised Code, during and after the   8,589        

year for which the assessment rate as calculated under this        8,590        

division equals zero, any merchandise or agricultural product      8,591        

described in division (D)(1) of this section is not used in        8,593        

business in this state for property tax purposes.                  8,594        

      (4)  As used in division (D) of this section:                8,597        

      (a)  "Qualified out-of-state person" means a person that     8,600        

does not own, lease, or use property, other than merchandise or    8,601        

an agricultural product described in this division, in this        8,602        

state, and does not have employees, agents, or representatives in  8,603        

this state;                                                                     

      (b)  "Public warehouse" means a warehouse in this state      8,606        

that is not subject to the control of or under the supervision of  8,607        

the owner of the merchandise or agricultural product stored in     8,608        

it, or staffed by the owner's employees, and from which the        8,609        

property is to be shipped inside this state.                       8,610        

      (E)  Unless otherwise provided by law, all other personal    8,612        

property used in business that has not been legally regarded as    8,613        

an improvement on land and considered in arriving at the value of  8,614        

the real property assessed for taxation shall be listed and        8,615        

assessed at the rate of twenty-five per cent of its true value in  8,617        

money.                                                                          

      Sec. 5733.04.  As used in this chapter:                      8,629        

      (A)  "Issued and outstanding shares of stock" applies to     8,631        

nonprofit corporations, as provided in section 5733.01 of the      8,632        

Revised Code, and includes but is not limited to, membership       8,633        

certificates and other instruments evidencing ownership of an      8,634        

interest in such nonprofit corporations, and with respect to a     8,635        

financial institution which does not have capital stock, "issued   8,636        

                                                          197    

                                                                 
and outstanding shares of stock" includes, but is not limited to,  8,637        

ownership interests of depositors in the capital employed in such  8,638        

an institution.                                                    8,639        

      (B)  "Taxpayer" means a corporation subject to the tax       8,641        

imposed by section 5733.06 of the Revised Code.                    8,642        

      (C)  "Resident" means a corporation organized under the      8,644        

laws of this state.                                                8,645        

      (D)  "Commercial domicile" means the principal place from    8,647        

which the trade or business of the taxpayer is directed or         8,648        

managed.                                                           8,649        

      (E)  "Taxable year" means the period prescribed by division  8,652        

(A) of section 5733.031 of the Revised Code upon the net income    8,654        

of which the value of the taxpayer's issued and outstanding        8,655        

shares of stock is determined under division (B) of section        8,657        

5733.05 of the Revised Code or the period prescribed by division   8,658        

(A) of section 5733.031 of the Revised Code that immediately       8,660        

precedes the date as of which the total value of the corporation   8,662        

is determined under division (A) or (C) of section 5733.05 of the  8,663        

Revised Code.                                                                   

      (F)  "Tax year" means the calendar year in and for which     8,665        

the tax imposed by section 5733.06 of the Revised Code is          8,667        

required to be paid.                                                            

      (G)  "Internal Revenue Code" means the "Internal Revenue     8,669        

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.          8,670        

      (H)  "Federal income tax" means the income tax imposed by    8,672        

the Internal Revenue Code.                                         8,673        

      (I)  "Net EXCEPT AS PROVIDED IN SECTION 5733.058 OF THE      8,675        

REVISED CODE, "NET income" means the taxpayer's taxable income     8,676        

before operating loss deduction and special deductions, as         8,677        

required to be reported for the taxpayer's taxable year under the  8,678        

Internal Revenue Code, subject to the following adjustments:       8,679        

      (1)(a)  Deduct any net operating loss incurred in any        8,681        

taxable years ending in 1971 or thereafter but exclusive of any    8,682        

net operating loss incurred in taxable years ending prior to       8,683        

                                                          198    

                                                                 
January 1, 1971.  This deduction shall not be allowed in any tax   8,684        

year commencing before December 31, 1973, but shall be carried     8,685        

over and allowed in tax years commencing after December 31, 1973,  8,686        

until fully utilized in the next succeeding taxable year or years  8,687        

in which the taxpayer has net income, but in no case for more      8,688        

than the designated carryover period as described in division      8,689        

(I)(1)(b) of this section.  The amount of such net operating       8,690        

loss, as determined under the allocation and apportionment         8,691        

provisions of section 5733.051 and division (B) of section         8,692        

5733.05 of the Revised Code for the year in which the net          8,693        

operating loss occurs, shall be deducted from net income, as       8,694        

determined under the allocation and apportionment provisions of    8,695        

section 5733.051 and division (B) of section 5733.05 of the        8,696        

Revised Code, to the extent necessary to reduce net income to      8,697        

zero with the remaining unused portion of the deduction, if any,   8,698        

carried forward to the remaining years of the designated           8,699        

carryover period as described in division (I)(1)(b) of this        8,700        

section, or until fully utilized, whichever occurs first.          8,701        

      (b)  For losses incurred in taxable years ending on or       8,703        

before December 31, 1981, the designated carryover period shall    8,704        

be the five consecutive taxable years after the taxable year in    8,705        

which the net operating loss occurred.  For losses incurred in     8,706        

taxable years ending on or after January 1, 1982, the designated   8,707        

carryover period shall be the fifteen consecutive taxable years    8,708        

after the taxable year in which the net operating loss occurs.     8,709        

      (c)  The tax commissioner may require a taxpayer to furnish  8,711        

any information necessary to support a claim for deduction under   8,712        

division (I)(1)(a) of this section and no deduction shall be       8,713        

allowed unless the information is furnished.                       8,714        

      (2)  Deduct any amount included in net income by             8,716        

application of section 78 or 951 of the Internal Revenue Code,     8,717        

amounts received for royalties, technical or other services        8,718        

derived from sources outside the United States, and dividends      8,719        

received from a subsidiary, associate, or affiliated corporation   8,720        

                                                          199    

                                                                 
that neither transacts any substantial portion of its business     8,721        

nor regularly maintains any substantial portion of its assets      8,722        

within the United States.  For purposes of determining net         8,723        

foreign source income deductible under division (I)(2) of this     8,724        

section, the amount of gross income from all such sources other    8,725        

than income derived by application of section 78 or 951 of the     8,726        

Internal Revenue Code shall be reduced by:                         8,727        

      (a)  The amount of any reimbursed expenses for personal      8,729        

services performed by employees of the taxpayer for the            8,730        

subsidiary, associate, or affiliated corporation;                  8,731        

      (b)  Ten per cent of the amount of royalty income and        8,733        

technical assistance fees;                                         8,734        

      (c)  Fifteen per cent of the amount of dividends and all     8,736        

other income.                                                      8,737        

      The amounts described in divisions (I)(2)(a) to (c) of this  8,739        

section are deemed to be the expenses attributable to the          8,740        

production of deductible foreign source income unless the          8,741        

taxpayer shows, by clear and convincing evidence, less actual      8,742        

expenses or the tax commissioner shows, by clear and convincing    8,743        

evidence, more actual expenses.                                    8,744        

      (3)  Add any loss or deduct any gain resulting from the      8,746        

sale, exchange, or other disposition of a capital asset, or an     8,747        

asset described in section 1231 of the Internal Revenue Code, to   8,748        

the extent that such loss or gain occurred prior to the first      8,749        

taxable year on which the tax provided for in section 5733.06 of   8,750        

the Revised Code is computed on the corporation's net income. For  8,752        

purposes of division (I)(3) of this section, the amount of the     8,753        

prior loss or gain shall be measured by the difference between     8,754        

the original cost or other basis of the asset and the fair market  8,755        

value as of the beginning of the first taxable year on which the   8,756        

tax provided for in section 5733.06 of the Revised Code is         8,757        

computed on the corporation's net income.  At the option of the    8,758        

taxpayer, the amount of the prior loss or gain may be a                         

percentage of the gain or loss, which percentage shall be          8,759        

                                                          200    

                                                                 
determined by multiplying the gain or loss by a fraction, the      8,760        

numerator of which is the number of months from the acquisition    8,761        

of the asset to the beginning of the first taxable year on which   8,762        

the fee provided in section 5733.06 of the Revised Code is         8,763        

computed on the corporation's net income, and the denominator of   8,764        

which is the number of months from the acquisition of the asset    8,765        

to the sale, exchange, or other disposition of the asset.          8,766        

      (4)  Deduct the dividend received deduction provided by      8,768        

section 243 of the Internal Revenue Code.                          8,769        

      (5)  Deduct any interest or interest equivalent on public    8,771        

obligations and purchase obligations to the extent included in     8,772        

federal taxable income.  As used in divisions (I)(5) and (6) of    8,773        

this section, "public obligations," "purchase obligations," and    8,774        

"interest or interest equivalent" have the same meanings as in     8,775        

section 5709.76 of the Revised Code.                               8,776        

      (6)  Add any loss or deduct any gain resulting from the      8,778        

sale, exchange, or other disposition of public obligations to the  8,779        

extent included in federal taxable income.                         8,780        

      (7)  To the extent not otherwise allowed, deduct any         8,782        

dividends or distributions received by a taxpayer from a public    8,783        

utility, if the taxpayer owns at least eighty per cent of the      8,784        

issued and outstanding common stock of the utility.  As used in    8,785        

division (I)(7) of this section, "public utility" or "utility"     8,786        

means a public utility as defined in Chapter 5727. of the Revised  8,787        

Code, whether or not the utility is doing business in the state.   8,788        

      (8)  To the extent not otherwise allowed, deduct any         8,790        

dividends received by a taxpayer from an insurance company, if     8,791        

the taxpayer owns at least eighty per cent of the issued and       8,792        

outstanding common stock of the insurance company.  As used in     8,793        

division (I)(8) of this section, "insurance company" means an      8,794        

insurance company which is taxable under Chapter 5725. or 5729.    8,795        

of the Revised Code.                                               8,796        

      (9)  Deduct expenditures for modifying existing buildings    8,798        

or structures to meet American national standards institute        8,799        

                                                          201    

                                                                 
standard A-117.1-1961 (R-1971), as amended; provided, that no      8,800        

deduction shall be allowed to the extent that such deduction is    8,801        

not permitted under federal law or under rules of the tax          8,802        

commissioner.  Those deductions as are allowed may be taken over   8,803        

a period of five years.  The tax commissioner shall adopt rules    8,804        

under Chapter 119. of the Revised Code establishing reasonable     8,805        

limitations on the extent that expenditures for modifying          8,806        

existing buildings or structures are attributable to the purpose   8,807        

of making the buildings or structures accessible to and usable by  8,808        

physically handicapped persons.                                    8,809        

      (10)  Deduct the amount of wages and salaries, if any, not   8,811        

otherwise allowable as a deduction but that would have been        8,812        

allowable as a deduction in computing federal taxable income       8,813        

before operating loss deduction and special deductions for the     8,814        

taxable year, had the targeted jobs credit allowed and determined  8,815        

under sections 38, 51, and 52 of the Internal Revenue Code not     8,816        

been in effect.                                                    8,817        

      (11)  Deduct net interest income on obligations of the       8,819        

United States and its territories and possessions or of any        8,820        

authority, commission, or instrumentality of the United States to  8,821        

the extent the laws of the United States prohibit inclusion of     8,822        

the net interest for purposes of determining the value of the      8,823        

taxpayer's issued and outstanding shares of stock under division   8,824        

(B) of section 5733.05 of the Revised Code.  As used in division   8,825        

(I)(11) of this section, "net interest" means interest net of any  8,826        

expenses taken on the federal income tax return that would not     8,827        

have been allowed under section 265 of the Internal Revenue Code   8,828        

if the interest were exempt from federal income tax.               8,829        

      (12)(a)  Except as set forth in division (I)(12)(d) of this  8,831        

section, to the extent not included in computing the taxpayer's    8,832        

federal taxable income before operating loss deduction and         8,833        

special deductions, add gains and deduct losses from direct or     8,834        

indirect sales, exchanges, or other dispositions, made by a        8,835        

related entity who is not a taxpayer, of the taxpayer's indirect,  8,836        

                                                          202    

                                                                 
beneficial, or constructive investment in the stock or debt of     8,837        

another entity, unless the gain or loss has been included in       8,838        

computing the federal taxable income before operating loss         8,839        

deduction and special deductions of another taxpayer with a more   8,840        

closely related investment in the stock or debt of the other       8,841        

entity.  The amount of gain added or loss deducted shall not       8,842        

exceed the product obtained by multiplying such gain or loss by    8,843        

the taxpayer's proportionate share, directly, indirectly,          8,844        

beneficially, or constructively, of the outstanding stock of the   8,845        

related entity immediately prior to the direct or indirect sale,   8,846        

exchange, or other disposition.                                    8,847        

      (b)  Except as set forth in division (I)(12)(e) of this      8,849        

section, to the extent not included in computing the taxpayer's    8,850        

federal taxable income before operating loss deduction and         8,851        

special deductions, add gains and deduct losses from direct or     8,852        

indirect sales, exchanges, or other dispositions made by a         8,853        

related entity who is not a taxpayer, of intangible property       8,854        

other than stock, securities, and debt, if such property was       8,855        

owned, or used in whole or in part, at any time prior to or at     8,856        

the time of the sale, exchange, or disposition by either the       8,857        

taxpayer or by a related entity that was a taxpayer at any time    8,858        

during the related entity's ownership or use of such property,     8,859        

unless the gain or loss has been included in computing the         8,860        

federal taxable income before operating loss deduction and         8,861        

special deductions of another taxpayer with a more closely         8,862        

related ownership or use of such intangible property.   The        8,863        

amount of gain added or loss deducted shall not exceed the         8,864        

product obtained by multiplying such gain or loss by the           8,865        

taxpayer's proportionate share, directly, indirectly,              8,866        

beneficially, or constructively, of the outstanding stock of the   8,867        

related entity immediately prior to the direct or indirect sale,   8,868        

exchange, or other disposition.                                    8,869        

      (c)  As used in division (I)(12) of this section, "related   8,871        

entity" means those entities described in divisions (I)(12)(c)(i)  8,872        

                                                          203    

                                                                 
to (iii) of this section:                                          8,873        

      (i)  An individual stockholder, or a member of the           8,875        

stockholder's family enumerated in section 318 of the Internal     8,876        

Revenue Code, if the stockholder and the members of the            8,877        

stockholder's family own, directly, indirectly, beneficially, or   8,878        

constructively, in the aggregate, at least fifty per cent of the   8,879        

value of the taxpayer's outstanding stock;                         8,880        

      (ii)  A stockholder, or a stockholder's partnership,         8,882        

estate, trust, or corporation, if the stockholder and the          8,883        

stockholder's partnerships, estates, trusts, and corporations own  8,884        

directly, indirectly, beneficially, or constructively, in the      8,885        

aggregate, at least fifty per cent of the value of the taxpayer's  8,886        

outstanding stock;                                                 8,887        

      (iii)  A corporation, or a party related to the corporation  8,889        

in a manner that would require an attribution of stock from the    8,890        

corporation to the party or from the party to the corporation      8,891        

under division (I)(12)(c)(iv) of this section, if the taxpayer     8,892        

owns, directly, indirectly, beneficially, or constructively, at    8,893        

least fifty per cent of the value of the corporation's             8,894        

outstanding stock.                                                 8,895        

      (iv)  The attribution rules of section 318 of the Internal   8,897        

Revenue Code apply for purposes of determining whether the         8,898        

ownership requirements in divisions (I)(12)(c)(i) to (iii) of      8,899        

this section have been met.                                        8,900        

      (d)  For purposes of the adjustments required by division    8,902        

(I)(12)(a) of this section, the term "investment in the stock or   8,903        

debt of another entity" means only those investments where the     8,904        

taxpayer and the taxpayer's related entities directly,             8,905        

indirectly, beneficially, or constructively own, in the            8,906        

aggregate, at any time during the twenty-four month period         8,907        

commencing one year prior to the direct or indirect sale,          8,908        

exchange, or other disposition of such investment at least fifty   8,909        

per cent or more of the value of either the outstanding stock or   8,910        

such debt of such other entity.                                    8,911        

                                                          204    

                                                                 
      (e)  For purposes of the adjustments required by division    8,913        

(I)(12)(b) of this section, the term "related entity" excludes     8,914        

all of the following:                                              8,915        

      (i)  Foreign corporations as defined in section 7701 of the  8,917        

Internal Revenue Code;                                             8,918        

      (ii)  Foreign partnerships as defined in section 7701 of     8,920        

the Internal Revenue Code;                                         8,921        

      (iii)  Corporations, partnerships, estates, and trusts       8,923        

created or organized in or under the laws of the Commonwealth of   8,924        

Puerto Rico or any possession of the United States;                8,925        

      (iv)  Foreign estates and foreign trusts as defined in       8,927        

section 7701 of the Internal Revenue Code.                         8,928        

      The exclusions described in divisions (I)(12)(e)(i) to (iv)  8,930        

of this section do not apply if the corporation, partnership,      8,931        

estate, or trust is described in any one of divisions (C)(1) to    8,932        

(5) of section 5733.042 of the Revised Code.                       8,933        

      (f)  Nothing in division (I)(12) of this section shall       8,935        

require or permit a taxpayer to add any gains or deduct any        8,936        

losses described in divisions (I)(12)(f)(i) and (ii) of this       8,937        

section:                                                           8,938        

      (i)  Gains or losses recognized for federal income tax       8,940        

purposes by an individual, estate, or trust without regard to the  8,941        

attribution rules described in division (I)(12)(c) of this         8,942        

section, and                                                       8,943        

      (ii)  A related entity's gains or losses described in        8,945        

division (I)(12)(b) if the taxpayer's ownership of or use of such  8,946        

intangible property was limited to a period not exceeding nine     8,947        

months and was attributable to a transaction or a series of        8,948        

transactions executed in accordance with the election or           8,949        

elections made by the taxpayer or a related entity pursuant to     8,950        

section 338 of the Internal Revenue Code.                          8,951        

      (13)  Any adjustment required by section 5733.042 of the     8,953        

Revised Code.                                                      8,954        

      (14)  Add any amount claimed as a credit under section       8,957        

                                                          205    

                                                                 
5733.0611 of the Revised Code to the extent that such amount       8,960        

satisfies either of the following:                                              

      (a)  It was deducted or excluded from the computation of     8,962        

the corporation's taxable income before operating loss deduction   8,964        

and special deductions as required to be reported for the          8,965        

corporation's taxable year under the Internal Revenue Code;        8,968        

      (b)  It resulted in a reduction of the corporation's         8,970        

taxable income before operating loss deduction and special         8,972        

deductions as required to be reported for any of the               8,973        

corporation's taxable years under the Internal Revenue Code.       8,976        

      (14)(15)  Deduct the amount contributed by the taxpayer to   8,979        

an individual development account program established by a county  8,980        

department of human services pursuant to sections 329.11 to        8,981        

329.14 of the Revised Code for the purpose of matching funds       8,984        

deposited by program participants.  On request of the tax          8,985        

commissioner, the taxpayer shall provide any information that, in  8,986        

the tax commissioner's opinion, is necessary to establish the      8,987        

amount deducted under division (I)(14)(15) of this section.        8,988        

      (J)  Any term used in this chapter has the same meaning as   8,990        

when used in comparable context in the laws of the United States   8,991        

relating to federal income taxes unless a different meaning is     8,992        

clearly required.  Any reference in this chapter to the Internal   8,993        

Revenue Code includes other laws of the United States relating to  8,994        

federal income taxes.                                              8,995        

      (K)  "Financial institution" has the meaning given by        8,997        

section 5725.01 of the Revised Code but does not include a         8,999        

production credit association as described in 85 Stat. 597, 12     9,000        

U.S.C.A. 2091.                                                     9,002        

      (L)(1)  A "qualifying holding company" is any corporation    9,005        

satisfying all of the following requirements:                      9,006        

      (a)  Subject to divisions (L)(2) and (3) of this section,    9,009        

the net book value of the corporation's intangible assets is       9,010        

greater than or equal to ninety per cent of the net book value of  9,011        

all of its assets and at least fifty per cent of the net book      9,012        

                                                          206    

                                                                 
value of all of its assets represents direct or indirect           9,013        

investments in the equity of, loans and advances to, and accounts  9,015        

receivable due from related members;                                            

      (b)  At least ninety per cent of the corporation's gross     9,018        

income for the taxable year is attributable to the following:      9,019        

      (i)  The maintenance, management, ownership, acquisition,    9,021        

use, and disposition of its intangible property, its aircraft the  9,023        

use of which is not subject to regulation under 14 C.F.R. part     9,025        

121 or part 135, and any real property described in division       9,026        

(L)(2)(c) of this section;                                         9,028        

      (ii)  The collection and distribution of income from such    9,031        

property.                                                                       

      (c)  The corporation is not a financial institution on the   9,034        

last day of the taxable year ending prior to the first day of the  9,036        

tax year;                                                                       

      (d)  The corporation's related members make a good faith     9,039        

and reasonable effort to make timely and fully the adjustments     9,040        

required by division (C)(2) of section 5733.05 of the Revised      9,042        

Code and to pay timely and fully all uncontested taxes, interest,  9,043        

penalties, and other fees and charges imposed under this chapter;  9,044        

      (e)  Subject to division (L)(4) of this section, the         9,047        

corporation elects to be treated as a qualifying holding company   9,048        

for the tax year.                                                  9,049        

      A corporation otherwise satisfying divisions (L)(1)(a) to    9,053        

(e) of this section that does not elect to be a qualifying         9,054        

holding company is not a qualifying holding company for the        9,055        

purposes of this chapter.                                                       

      (2)(a)(i)  For purposes of making the ninety per cent        9,058        

computation under division (L)(1)(a) of this section, the net      9,061        

book value of the corporation's assets shall not include the net   9,062        

book value of aircraft or real property described in division      9,063        

(L)(1)(b)(i) of this section.                                      9,065        

      (ii)  For purposes of making the fifty per cent computation  9,068        

under division (L)(1)(a) of this section, the net book value of    9,070        

                                                          207    

                                                                 
assets shall include the net book value of aircraft or real        9,071        

property described in division (L)(1)(b)(i) of this section.       9,074        

      (b)(i)  As used in division (L) of this section,             9,077        

"intangible asset" includes, but is not limited to, the            9,078        

corporation's direct interest in each pass-through entity only if  9,079        

at all times during the corporation's taxable year ending prior    9,080        

to the first day of the tax year the corporation's and the         9,081        

corporation's related members' combined direct and indirect        9,082        

interests in the capital or profits of such pass-through entity    9,083        

do not exceed fifty per cent.  If the corporation's interest in    9,084        

the pass-through entity is an intangible asset for that taxable    9,085        

year, then the distributive share of any income from the           9,086        

pass-through entity shall be income from an intangible asset for   9,087        

that taxable year.                                                              

      (ii)  If a corporation's and the corporation's related       9,090        

members' combined direct and indirect interests in the capital or  9,091        

profits of a pass-through entity exceed fifty per cent at any      9,092        

time during the corporation's taxable year ending prior to the     9,093        

first day of the tax year, "intangible asset" does not include     9,094        

the corporation's direct interest in the pass-through entity, and  9,095        

the corporation shall include in its assets its proportionate      9,096        

share of the assets of any such pass-through entity and shall      9,097        

include in its gross income its distributive share of the gross    9,098        

income of such pass-through entity in the same form as was earned  9,099        

by the pass-through entity.                                        9,100        

      (iii)  A pass-through entity's direct or indirect            9,103        

proportionate share of any other pass-through entity's assets      9,104        

shall be included for the purpose of computing the corporation's   9,105        

proportionate share of the pass-through entity's assets under      9,106        

division (L)(2)(b)(ii) of this section, and such pass-through      9,108        

entity's distributive share of any other pass-through entity's     9,109        

gross income shall be included for purposes of computing the       9,110        

corporation's distributive share of the pass-through entity's      9,111        

gross income under division (L)(2)(b)(ii) of this section.         9,114        

                                                          208    

                                                                 
      (c)  For the purposes of divisions (L)(1)(b)(i),             9,117        

(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real        9,120        

property is described in division (L)(2)(c) of this section only   9,122        

if all of the following conditions are present at all times        9,123        

during the taxable year ending prior to the first day of the tax   9,124        

year:                                                                           

      (i)  The real property serves as the headquarters of the     9,127        

corporation's trade or business, or is the place from which the    9,128        

corporation's trade or business is principally managed or          9,129        

directed;                                                                       

      (ii)  Not more than ten per cent of the value of the real    9,132        

property and not more than ten per cent of the square footage of   9,133        

the building or buildings that are part of the real property is                 

used, made available, or occupied for the purpose of providing,    9,134        

acquiring, transferring, selling, or disposing of tangible         9,136        

property or services in the normal course of business to persons   9,137        

other than related members, the corporation's employees and their  9,138        

families, and such related members' employees and their families.  9,139        

      (d)  As used in division (L) of this section, "related       9,141        

member" has the same meaning as in division (A)(6) of section      9,144        

5733.042 of the Revised Code without regard to division (B) of     9,147        

that section.                                                                   

      (3)  The percentages described in division (L)(1)(a) of      9,151        

this section shall be equal to the quarterly average of those      9,152        

percentages as calculated during the corporation's taxable year    9,153        

ending prior to the first day of the tax year.                     9,154        

      (4)  With respect to the election described in division      9,156        

(L)(1)(e) of this section:                                         9,158        

      (a)  The election need not accompany a timely filed report;  9,161        

      (b)  The election need not accompany the report; rather,     9,163        

the election may accompany a subsequently filed but timely         9,164        

application for refund and timely amended report, or a             9,166        

subsequently filed but timely petition for reassessment;           9,167        

      (c)  The election is not irrevocable;                        9,170        

                                                          209    

                                                                 
      (d)  The election applies only to the tax year specified by  9,173        

the corporation;                                                                

      (e)  The corporation's related members comply with division  9,175        

(L)(1)(d) of this section.                                         9,176        

      Nothing in division (L)(4) of this section shall be          9,179        

construed to extend any statute of limitations set forth in this   9,180        

chapter.                                                           9,181        

      (M)  "Qualifying controlled group" means two or more         9,184        

corporations that satisfy the ownership and control requirements   9,185        

of division (A) of section 5733.052 of the Revised Code.           9,188        

      (N)  "Limited liability company" means any limited           9,190        

liability company formed under Chapter 1705. of the Revised Code   9,192        

or under the laws of any other state.                                           

      (O)  "Pass-through entity" means a corporation that has      9,195        

made an election under subchapter S of Chapter 1 of Subtitle A of  9,197        

the Internal Revenue Code for its taxable year under that code,    9,200        

or a partnership, limited liability company, or any other person,  9,201        

other than an individual, trust, or estate, if the partnership,    9,202        

limited liability company, or other person is not classified for   9,203        

federal income tax purposes as an association taxed as a           9,204        

corporation.                                                       9,205        

      Sec. 5733.05.  As used in this section, "qualified           9,214        

research" means laboratory research, experimental research, and    9,215        

other similar types of research; research in developing or         9,216        

improving a product; or research in developing or improving the    9,217        

means of producing a product.  It does not include market          9,218        

research, consumer surveys, efficiency surveys, management         9,219        

studies, ordinary testing or inspection of materials or products   9,220        

for quality control, historical research, or literary research.    9,221        

"Product" as used in this paragraph does not include services or   9,222        

intangible property.                                               9,223        

      The annual report determines the value of the issued and     9,226        

outstanding shares of stock of the taxpayer, which under division  9,227        

(A) or divisions (B) and (C) of this section is the base or        9,228        

                                                          210    

                                                                 
measure of the franchise tax liability.  Such determination shall  9,229        

be made as of the date shown by the report to have been the        9,230        

beginning of the corporation's annual accounting period that       9,231        

includes the first day of January of the tax year.  For the        9,232        

purposes of this chapter, the value of the issued and outstanding  9,234        

shares of stock of any corporation that is a financial             9,236        

institution shall be deemed to be the value as calculated in       9,238        

accordance with division (A) of this section.  For the purposes    9,240        

of this chapter, the value of the issued and outstanding shares    9,241        

of stock of any corporation that is not a financial institution    9,242        

shall be deemed to be the values as calculated in accordance with  9,243        

divisions (B) and (C) of this section.                             9,244        

      (A)  The total value, as shown by the books of the           9,246        

financial institution, of its capital, surplus, whether earned or  9,248        

unearned, undivided profits, and reserves shall be determined as   9,250        

prescribed by section 5733.056 of the Revised Code for tax years   9,251        

1998 and thereafter.                                               9,252        

      (B)  The sum of the corporation's net income during the      9,254        

corporation's taxable year, allocated or apportioned to this       9,256        

state as prescribed in divisions (B)(1) and (2) of this section,   9,258        

and subject to sections 5733.052, 5733.053, and 5733.057, AND      9,259        

5733.058 of the Revised Code:                                                   

      (1)  The net income allocated to this state as provided by   9,261        

section 5733.051 of the Revised Code.                              9,262        

      (2)  The amount of Ohio apportioned net income from sources  9,264        

other than those allocated under section 5733.051 of the Revised   9,265        

Code, which shall be determined by multiplying the corporation's   9,266        

net income by a fraction.  The numerator of the fraction is the    9,268        

sum of the following products:  the property factor multiplied by  9,271        

twenty, the payroll factor multiplied by twenty, and the sales     9,272        

factor multiplied by sixty.  The denominator of the fraction is    9,274        

one hundred, provided that the denominator shall be reduced by     9,276        

twenty if the property factor has a denominator of zero, by        9,278        

twenty if the payroll factor has a denominator of zero, and by     9,279        

                                                          211    

                                                                 
sixty if the sales factor has a denominator of zero.                            

      The property, payroll, and sales factors shall be            9,281        

determined as follows:                                                          

      (a)  The property factor is a fraction the numerator of      9,283        

which is the average value of the corporation's real and tangible  9,284        

personal property owned or rented, and used in the trade or        9,285        

business in this state during the taxable year, and the            9,286        

denominator of which is the average value of all the               9,287        

corporation's real and tangible personal property owned or         9,288        

rented, and used in the trade or business everywhere during such   9,289        

year.  There shall be excluded from the numerator and denominator  9,290        

of the property factor the original cost of all of the following   9,291        

property within Ohio:  property with respect to which a            9,292        

"pollution control facility" certificate has been issued pursuant  9,293        

to section 5709.21 of the Revised Code; property with respect to   9,294        

which an "industrial water pollution control certificate" has      9,295        

been issued pursuant to section 6111.31 of the Revised Code; and   9,296        

property used exclusively during the taxable year for qualified    9,297        

research.                                                          9,298        

      (i)  Property owned by the corporation is valued at its      9,300        

original cost.  Property rented by the corporation is valued at    9,301        

eight times the net annual rental rate.  "Net annual rental rate"  9,302        

means the annual rental rate paid by the corporation less any      9,303        

annual rental rate received by the corporation from subrentals.    9,304        

      (ii)  The average value of property shall be determined by   9,306        

averaging the values at the beginning and the end of the taxable   9,307        

year, but the tax commissioner may require the averaging of        9,308        

monthly values during the taxable year, if reasonably required to  9,309        

reflect properly the average value of the corporation's property.  9,310        

      (b)  The payroll factor is a fraction the numerator of       9,312        

which is the total amount paid in this state during the taxable    9,313        

year by the corporation for compensation, and the denominator of   9,314        

which is the total compensation paid everywhere by the             9,315        

corporation during such year.  There shall be excluded from the    9,316        

                                                          212    

                                                                 
numerator and the denominator of the payroll factor the total      9,317        

compensation paid in this state to employees who are primarily     9,318        

engaged in qualified research.                                     9,319        

      (i)  Compensation means any form of remuneration paid to an  9,321        

employee for personal services.                                    9,322        

      (ii)  Compensation is paid in this state if:  (1) the        9,324        

recipient's service is performed entirely within this state, (2)   9,325        

the recipient's service is performed both within and without this  9,326        

state, but the service performed without this state is incidental  9,327        

to the recipient's service within this state, (3) some of the      9,328        

service is performed within this state and either the base of      9,329        

operations, or if there is no base of operations, the place from   9,330        

which the service is directed or controlled is within this state,  9,331        

or the base of operations or the place from which the service is   9,332        

directed or controlled is not in any state in which some part of   9,333        

the service is performed, but the recipient's residence is in      9,334        

this state.                                                        9,335        

      (iii)  Compensation is paid in this state to any employee    9,337        

of a common or contract motor carrier corporation, who performs    9,338        

the employee's regularly assigned duties on a motor vehicle in     9,340        

more than one state, in the same ratio by which the mileage        9,341        

traveled by such employee within the state bears to the total      9,342        

mileage traveled by such employee everywhere during the taxable    9,343        

year.                                                                           

      (c)  The sales factor is a fraction the numerator of which   9,345        

is the total sales in this state by the corporation during the     9,346        

taxable year, and the denominator of which is the total sales by   9,347        

the corporation everywhere during such year.  In determining the   9,348        

numerator and denominator of the sales factor, receipts from the   9,349        

sale or other disposal of a capital asset or an asset described    9,350        

in section 1231 of the Internal Revenue Code shall be eliminated.  9,351        

Also, in determining the numerator and denominator of the sales    9,352        

factor, in the case of a reporting corporation owning at least     9,353        

eighty per cent of the issued and outstanding common stock of one  9,354        

                                                          213    

                                                                 
or more public utilities or insurance companies, or owning at      9,355        

least twenty-five per cent of the issued and outstanding common    9,356        

stock of one or more financial institutions, receipts received by  9,357        

the reporting corporation from such utilities, insurance           9,358        

companies, and financial institutions shall be eliminated.         9,359        

      For the purpose of this section and section 5733.03 of the   9,361        

Revised Code, sales of tangible personal property are in this      9,362        

state where such property is received in this state by the         9,363        

purchaser.  In the case of delivery of tangible personal property  9,364        

by common carrier or by other means of transportation, the place   9,365        

at which such property is ultimately received after all            9,366        

transportation has been completed shall be considered as the       9,367        

place at which such property is received by the purchaser.         9,368        

Direct delivery in this state, other than for purposes of          9,369        

transportation, to a person or firm designated by a purchaser      9,370        

constitutes delivery to the purchaser in this state, and direct    9,371        

delivery outside this state to a person or firm designated by a    9,372        

purchaser does not constitute delivery to the purchaser in this    9,373        

state, regardless of where title passes or other conditions of     9,374        

sale.                                                              9,375        

      Sales, other than sales of tangible personal property, are   9,377        

in this state if either:                                           9,378        

      (i)  The income-producing activity is performed solely in    9,380        

this state;                                                        9,381        

      (ii)  The income-producing activity is performed both        9,383        

within and without this state and a greater proportion of the      9,384        

income-producing activity is performed within this state than in   9,386        

any other state, based on costs of performance.                    9,387        

      (d)  If the allocation and apportionment provisions of       9,389        

division (B) of this section do not fairly represent the extent    9,391        

of the taxpayer's business activity in this state, the taxpayer    9,392        

may request, which request must be in writing and must accompany   9,393        

the report, timely filed petition for reassessment, or timely      9,394        

filed amended report, or the tax commissioner may require, in      9,395        

                                                          214    

                                                                 
respect to all or any part of the taxpayer's allocated or          9,396        

apportioned base, if reasonable, any one or more of the            9,397        

following:                                                                      

      (i)  Separate accounting;                                    9,399        

      (ii)  The exclusion of any one or more of the factors;       9,401        

      (iii)  The inclusion of one or more additional factors       9,403        

which will fairly represent the taxpayer's allocated or            9,404        

apportioned base in this state.                                    9,405        

      An alternative method will be effective only with approval   9,407        

by the tax commissioner.                                           9,408        

      Nothing in this section shall be construed to extend any     9,410        

statute of limitations set forth in this chapter.                  9,411        

      (C)(1)  Subject to divisions (C)(2) and (3) of this          9,414        

section, the total value, as shown on the books of each                         

corporation that is not a qualified holding company, of the net    9,415        

book value of a corporation's assets less the net carrying value   9,417        

of its liabilities.  For the purposes of determining that total    9,418        

value, any reserves shown on the corporation's books shall be      9,419        

considered liabilities or contra assets except for any reserves                 

that are deemed appropriations of retained earnings under          9,420        

generally accepted accounting principles.                          9,421        

      (2)(a)  If, on the last day of the taxpayer's taxable year   9,424        

preceding the tax year, the taxpayer is a related member to a      9,425        

corporation that elects to be a qualifying holding company for     9,426        

the tax year beginning after the last day of the taxpayer's        9,427        

taxable year, or if, on the last day of the taxpayer's taxable     9,428        

year preceding the tax year, a corporation that elects to be a     9,429        

qualifying holding company for the tax year beginning after the    9,430        

last day of the taxpayer's taxable year is a related member to     9,431        

the taxpayer, then the taxpayer's total value shall be adjusted    9,432        

by the qualifying amount.  Except as otherwise provided under      9,433        

division (C)(2)(b) of this section, "qualifying amount" means the  9,434        

amount that, when added to the taxpayer's total value, and when    9,436        

subtracted from the net carrying value of the taxpayer's           9,437        

                                                          215    

                                                                 
liabilities computed without regard to division (C)(2) of this     9,439        

section, or when subtracted from the taxpayer's total value and    9,441        

when added to the net carrying value of the taxpayer's             9,442        

liabilities computed without regard to division (C)(2) of this     9,444        

section, results in the taxpayer's debt-to-equity ratio equaling   9,445        

the debt-to-equity ratio of the qualifying controlled group on     9,446        

the last day of the taxable year ending prior to the first day of  9,447        

the tax year computed on a consolidated basis in accordance with   9,449        

general accepted accounting principles.  For the purposes of       9,450        

division (C)(2)(a) of this section, the corporation's total        9,451        

value, after the adjustment required by that division, shall not   9,452        

exceed the net book value of the corporation's assets.             9,453        

      (b)(i)  The amount added to the taxpayer's total value and   9,456        

subtracted from the net carrying value of the taxpayer's           9,457        

liabilities shall not exceed the amount of the net carrying value  9,458        

of the taxpayer's liabilities owed to the taxpayer's related       9,460        

members.                                                                        

      (ii)  A liability owed to the taxpayer's related members     9,462        

includes, but is not limited to, any amount that the corporation   9,464        

owes to a person that is not a related member if the               9,465        

corporation's related member or related members in whole or in     9,466        

part guarantee any portion or all of that amount, or pledge,       9,467        

hypothecate, mortgage, or carry out any similar transactions to    9,468        

secure any portion or all of that amount.                          9,469        

      (3)  The base upon which the tax is levied under division    9,471        

(C) of section 5733.06 of the Revised Code shall be computed by    9,473        

multiplying the amount determined under divisions (C)(1) and (2)   9,475        

of this section by the fraction determined under divisions         9,476        

(B)(2)(a) to (c) of this section and, if applicable, divisions     9,479        

(B)(2)(d)(ii) to (iv) of this section but without regard to        9,481        

section 5733.052 of the Revised Code.                              9,482        

      (4)  For purposes of division (C) of this section, "related  9,486        

member" has the same meaning as in division (A)(6) of section      9,487        

5733.042 of the Revised Code without regard to division (B) of     9,488        

                                                          216    

                                                                 
that section.                                                                   

      Sec. 5733.057.  In AS USED IN THIS SECTION, "ADJUSTED        9,497        

QUALIFYING AMOUNT" HAS THE SAME MEANING AS IN SECTION 5733.40 OF   9,498        

THE REVISED CODE.                                                               

      EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (A) AND (B) OF     9,500        

SECTION 5733.401 AND IN SECTIONS 5733.058 AND 5747.401 OF THE      9,501        

REVISED CODE, IN making any computation under sections 5733.042,   9,503        

5733.05, 5733.051, 5733.052, and 5733.053, 5733.40, 5733.41,       9,504        

5747.41, AND 5747.43 of the Revised Code, a corporation EACH       9,506        

PERSON shall include in its THAT PERSON'S items of ADJUSTED        9,507        

QUALIFYING AMOUNTS, allocable income or loss, IF ANY,              9,508        

apportionable income or loss, property, compensation, and sales,   9,510        

the corporation's PERSON'S entire distributive share or            9,511        

proportionate share of the items of ADJUSTED QUALIFYING AMOUNTS,   9,513        

allocable income or loss, apportionable income or loss, property,  9,515        

compensation, and sales of any pass-through entity in which the                 

corporation PERSON has a direct or indirect ownership interest at  9,517        

any time during the corporation's PERSON'S taxable year.  A        9,518        

pass-through entity's direct or indirect distributive share or     9,519        

proportionate share of any other pass-through entity's items of    9,520        

ADJUSTED QUALIFYING AMOUNTS, allocable income or loss,             9,522        

apportionable income or loss, property, compensation, and sales    9,523        

shall be included for the purposes of computing the corporation's  9,524        

PERSON'S distributive share or proportionate share of the          9,525        

pass-through entity's items of ADJUSTED QUALIFYING AMOUNTS,        9,526        

allocable income or loss, apportionable income or loss, property,  9,528        

compensation, and sales under this section.  Those items shall be  9,529        

in the same form as was recognized by the pass-through entity.     9,530        

      Sec. 5733.058.  (A)  AS USED IN THIS SECTION, AN "EXEMPTED   9,532        

INVESTMENT" IS A DIRECT OR INDIRECT INVESTMENT IN THE EQUITY OF,   9,533        

OR THE DIRECT OR INDIRECT OWNERSHIP OF, A PERSON SATISFYING        9,534        

DIVISIONS (A)(1) AND (2) OF THIS SECTION FOR THE PERSON'S ENTIRE   9,535        

FISCAL OR CALENDAR YEAR ENDING WITHIN OR WITH THE CORPORATION'S    9,536        

TAXABLE YEAR ENDING IMMEDIATELY PRIOR TO THE TAX YEAR.             9,537        

                                                          217    

                                                                 
      (1)  THE PERSON IS A LIMITED LIABILITY COMPANY NOT TREATED   9,539        

AS A SEPARATE C CORPORATION FOR FEDERAL INCOME TAX PURPOSES, OR    9,540        

THE PERSON IS A PASS-THROUGH ENTITY.                               9,541        

      (2)  THE PERSON OWNS AND OPERATES A PUBLIC UTILITY IN THIS   9,543        

STATE AND AS SUCH IS REQUIRED BY LAW TO FILE REPORTS WITH THE TAX  9,544        

COMMISSIONER AND PAY AN EXCISE TAX UPON ITS GROSS RECEIPTS.        9,545        

      (B)  EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION,     9,547        

EACH CORPORATION DIRECTLY OR INDIRECTLY OWNING OR DIRECTLY OR      9,548        

INDIRECTLY HAVING AN EQUITY INVESTMENT IN AN EXEMPTED INVESTMENT   9,549        

SHALL MAKE THE ADJUSTMENTS REQUIRED BY DIVISIONS (B)(1) TO (4) OF  9,550        

THIS SECTION.                                                                   

      (1)  THE CORPORATION SHALL DEDUCT FROM ITS NET INCOME THE    9,552        

DISTRIBUTIVE SHARE OF NET INCOME AND GAIN ATTRIBUTABLE TO THE      9,553        

CORPORATION'S EXEMPTED INVESTMENT, BUT ONLY TO THE EXTENT SUCH     9,554        

NET INCOME AND GAIN ARE INCLUDED IN THE CORPORATION'S NET INCOME   9,555        

WITHOUT REGARD TO THIS SECTION.                                                 

      (2)  THE CORPORATION SHALL ADD TO ITS NET INCOME THE         9,557        

DISTRIBUTIVE SHARE OF EXPENSES AND LOSSES ATTRIBUTABLE TO THE      9,558        

EXEMPTED INVESTMENT, BUT ONLY TO THE EXTENT SUCH EXPENSES AND      9,559        

LOSSES HAVE BEEN DEDUCTED IN CALCULATING THE CORPORATION'S NET     9,560        

INCOME WITHOUT REGARD TO THIS SECTION.                                          

      (3)(a)  THE CORPORATION SHALL EXCLUDE FROM THE CALCULATION   9,562        

OF ITS PROPERTY, PAYROLL, AND SALES FACTORS, AS DEFINED IN         9,563        

DIVISIONS (B)(2)(a) TO (c) OF SECTION 5733.05 OF THE REVISED       9,565        

CODE, THE CORPORATION'S PROPORTIONATE SHARE OF THE PROPERTY,                    

PAYROLL, AND SALES ATTRIBUTABLE TO THE EXEMPTED INVESTMENT, BUT    9,566        

ONLY TO THE EXTENT THE CORPORATION'S PROPORTIONATE SHARE OF THE    9,567        

PROPERTY, PAYROLL, AND SALES ATTRIBUTABLE TO THE EXEMPTED          9,568        

INVESTMENT WOULD BE INCLUDED IN THE CALCULATION OF THE             9,570        

CORPORATION'S PROPERTY, PAYROLL, AND SALES FACTORS UNDER SECTION                

5733.057 OF THE REVISED CODE WITHOUT REGARD TO THIS SECTION.       9,571        

      (b)  DIVISION (B)(3)(a) OF THIS SECTION DOES NOT APPLY TO    9,574        

DIVISION (B)(2)(d) OF SECTION 5733.05 OF THE REVISED CODE.         9,575        

      (4)  NOTWITHSTANDING SECTION 5733.98 OF THE REVISED CODE TO  9,577        

                                                          218    

                                                                 
THE CONTRARY, A CORPORATION SHALL NOT BE ALLOWED ANY               9,578        

NONREFUNDABLE CREDIT OR NONREFUNDABLE CREDIT CARRYFORWARD LISTED   9,579        

IN THAT SECTION TO THE EXTENT THE CREDIT IS ATTRIBUTABLE TO THE    9,580        

CORPORATION'S DIRECT OR INDIRECT OWNERSHIP OF OR EQUITY                         

INVESTMENT IN AN EXEMPTED INVESTMENT AND SUCH CREDIT DIRECTLY      9,581        

RELATES TO THE OWNING AND OPERATING OF A PUBLIC UTILITY IN THIS    9,582        

STATE BY A PERSON DESCRIBED IN DIVISIONS (A)(1) AND (2) OF THIS    9,583        

SECTION.                                                                        

      (C)(1)  THE ADJUSTMENTS PROVIDED BY DIVISION (B) OF THIS     9,585        

SECTION SHALL BE ALLOWED AND REQUIRED ONLY TO THE EXTENT THAT      9,586        

SUCH ADJUSTMENTS DIRECTLY RELATE TO THE OWNING AND OPERATING OF A  9,587        

PUBLIC UTILITY IN THIS STATE BY A PERSON DESCRIBED IN DIVISIONS    9,588        

(A)(1) AND (2) OF THIS SECTION.                                                 

      (2)  TO THE EXTENT THAT ANY GROSS RECEIPTS OF A PERSON       9,590        

DESCRIBED IN DIVISIONS (A)(1) AND (2) OF THIS SECTION ARE NOT FOR  9,591        

BUSINESS DONE BY SUCH PERSON FROM THE DIRECT OR INDIRECT           9,592        

OPERATION OF, OR THE DIRECT OR INDIRECT OWNERSHIP OF, A PUBLIC     9,593        

UTILITY IN THIS STATE, THEN SUCH GROSS RECEIPTS AND RELATED        9,594        

PROPERTY AND PAYROLL SHALL NOT BE SUBJECT TO THE ADJUSTMENT        9,595        

OTHERWISE PROVIDED BY DIVISION (B) OF THIS SECTION.                             

      (3)  DIVISION (B) OF THIS SECTION DOES NOT APPLY TO THE      9,597        

CORPORATION, AND SECTION 5733.057 OF THE REVISED CODE SHALL APPLY  9,598        

TO THE CORPORATION'S COMPUTATION OF ITS NET INCOME, ITS PROPERTY,  9,599        

PAYROLL, AND SALES FACTORS, AND ITS CREDITS TO THE EXTENT THAT     9,600        

THE PERSON DESCRIBED IN DIVISIONS (A)(1) AND (2) OF THIS SECTION   9,601        

DIRECTLY OR INDIRECTLY OWNS OR DIRECTLY OR INDIRECTLY HAS AN       9,603        

EQUITY INVESTMENT IN ANY OTHER PERSON DESCRIBED IN DIVISION        9,604        

(A)(1) OF THIS SECTION BUT NOT DESCRIBED IN DIVISION (A)(2) OF     9,605        

THIS SECTION.                                                                   

      (D)  SECTION 5733.057 OF THE REVISED CODE APPLIES FOR        9,607        

PURPOSES OF THE OWNERSHIP AND INVESTMENT CRITERIA SET FORTH IN     9,608        

THIS SECTION.                                                                   

      (E)  THIS SECTION IS EFFECTIVE FOR TAXABLE YEARS ENDING      9,610        

AFTER SEPTEMBER 28, 1997.                                          9,611        

                                                          219    

                                                                 
      Sec. 5733.0611.  (A)  There is hereby allowed a              9,620        

nonrefundable credit against the tax imposed under section         9,621        

5733.06 of the Revised Code.  The credit shall be equal to the     9,622        

taxpayer's proportionate share of the lesser of either the tax     9,623        

due or the tax paid by any qualifying entity under section         9,624        

5733.41 of the Revised Code for the qualifying taxable year of     9,625        

the qualifying entity that ends in the taxable year of the         9,626        

taxpayer.  The taxpayer shall claim the credit for the taxpayer's  9,627        

taxable year in which ends the qualifying entity's qualifying      9,628        

taxable year.                                                                   

      In claiming the credit and determining its proportionate     9,631        

share of the tax due and the tax paid by the qualifying entity,    9,632        

the person claiming the credit shall follow the concepts set       9,633        

forth in subchapter K of the Internal Revenue Code.  Nothing in    9,634        

this division shall be construed to limit or disallow              9,635        

pass-through treatment of a pass-through entity's income,          9,636        

deductions, credits, or other amounts necessary to compute the     9,637        

tax imposed and the credits allowed under this chapter.                         

      The credit shall be claimed in the order required under      9,639        

section 5733.98 of the Revised Code.  Any unused credit shall be   9,641        

allowed as a credit in the ensuing tax year.  Any such amount                   

allowed as a credit in an ensuing tax year shall be deducted from  9,643        

the balance carried forward to the next ensuing tax year.                       

      (B)  Any person that is not a taxpayer solely by reason of   9,645        

division (A) or (C) of section 5733.09 of the Revised Code OR A    9,646        

PERSON DESCRIBED IN SECTION 501(c) OF THE INTERNAL REVENUE CODE    9,648        

OR DIVISION (F) OF SECTION 3334.01 OF THE REVISED CODE, but that   9,649        

would be entitled to claim the nonrefundable credit under this     9,650        

section if that person were a taxpayer, may file an application    9,651        

for refund pursuant to section 5733.12 of the Revised Code.  Upon  9,652        

proper application for refund under that section, the tax                       

commissioner shall issue a refund in the amount of the credit to   9,653        

which that person would have been entitled under division (A)(1)   9,655        

of this section had IF the person HAD been a taxpayer, and as if   9,656        

                                                          220    

                                                                 
the credit were a refundable credit.                               9,657        

      (C)  If AN ORGANIZATION DESCRIBED IN SECTION 401(a) OF THE   9,659        

INTERNAL REVENUE CODE OR a trust or fund is entitled to a          9,661        

proportionate share of the lesser of either the tax due or the     9,662        

tax paid by any qualifying entity under section 5733.41 of the     9,663        

Revised Code, and if that proportionate share is then OR COULD BE  9,664        

allocable to an exempt person as defined in division (D) of this   9,665        

section, then the qualifying ORGANIZATION, trust, or fund may      9,667        

file an application for refund with respect to such allocable      9,668        

amounts pursuant to section 5733.12 of the Revised Code.  Upon     9,669        

proper application for refund under that section, the tax          9,670        

commissioner shall issue a refund in the amount of the credit to   9,671        

which the qualifying ORGANIZATION, trust, or fund would have been  9,673        

entitled under division (A)(1) of this section had the             9,674        

ORGANIZATION, trust, or fund been a taxpayer, and as if the        9,675        

credit were a refundable credit.  To the extent that a SUCH AN     9,676        

ORGANIZATION, trust, or fund is permitted to apply for a refund    9,678        

under this division, or to the extent that a SUCH AN               9,679        

ORGANIZATION, trust, or fund has applied for such a refund,        9,680        

exempt persons are not entitled to the credit authorized under     9,681        

this section or section 5747.059 of the Revised Code.              9,683        

      (D)(1)  For the purposes of division (C) of this section     9,685        

only, "exempt person" means any of the following:                  9,686        

      (a)  A person that is or may be the beneficiary of a trust   9,688        

if the trust is subject to Subchapter D of Chapter 1 of Subtitle   9,689        

A of the Internal Revenue Code.                                    9,690        

      (b)  A person that is or may be the beneficiary of or the    9,693        

recipient of payments from a nuclear decommissioning reserve       9,694        

fund, a designated settlement fund, or any other trust or fund     9,695        

established to resolve and satisfy claims that may otherwise be    9,696        

asserted by the beneficiary or a member of the beneficiary's       9,697        

family.  Sections 267(c)(4), 468A(e), and 468B(d)(2) of the        9,698        

Internal Revenue Code apply to the determination of whether such   9,699        

a person is an exempt person under division (D) of this section.   9,700        

                                                          221    

                                                                 
      (c)  A person, OTHER THAN A PERSON THAT IS TREATED AS A C    9,702        

CORPORATION FOR FEDERAL INCOME TAX PURPOSES, who is or may be the  9,703        

beneficiary of a trust that, under its governing instrument, is    9,704        

not required to distribute all of its income currently.  Division  9,706        

(D)(1)(c) of this section applies only if the trust irrevocably    9,707        

agrees that for the taxable year during or for which the trust     9,708        

distributes any of its income to any of the beneficiaries, the     9,709        

trust is a qualifying trust AS DEFINED IN SECTION 5733.40 OF THE   9,710        

REVISED CODE and will pay the estimated tax, and will withhold     9,712        

and pay the withheld tax as required under SECTION 5733.41 AND     9,713        

sections 5747.40 to 5747.453 of the Revised Code.                  9,714        

      (2)  An exempt person does not include any person that       9,716        

would not qualify as an exempt person under the doctrines of       9,717        

"economic reality," "sham transaction," "step doctrine," or        9,718        

"substance over form."  A NOTWITHSTANDING SECTIONS 5733.111 AND    9,719        

5747.131 OF THE REVISED CODE TO THE CONTRARY, AN ORGANIZATION,     9,720        

trust, or fund described in division (C) of this section bears     9,723        

the burden of establishing by a preponderance of the evidence      9,724        

that any transaction giving rise to a claim for a refundable       9,725        

credit under this section does not have as a principal purpose a   9,726        

claim for that credit.  Nothing in this section shall be           9,727        

construed to limit solely to this section the application of the   9,728        

doctrines referred to in division (D)(2) of this section.          9,730        

      (e)(E)  Nothing in this section shall be construed to allow  9,733        

a refund more than once with respect to the taxes imposed under    9,734        

section 5733.41 or 5747.41 of the Revised Code.                    9,735        

      Sec. 5733.12.  (A)  Four and two-tenths per cent of all      9,744        

payments received by the treasurer of state from the taxes         9,745        

imposed under sections 5733.06 and 5733.41 of the Revised Code     9,746        

shall be credited to the local government fund for distribution    9,747        

in accordance with section 5747.50 of the Revised Code,            9,748        

six-tenths of one per cent shall be credited to the local          9,750        

government revenue assistance fund for distribution in accordance               

with section 5747.61 of the Revised Code, and ninety-five and      9,752        

                                                          222    

                                                                 
two-tenths per cent shall be credited to the general revenue       9,753        

fund.                                                                           

      (B)  Except as otherwise provided under divisions (C) and    9,755        

(D) of this section, an application to refund to the corporation   9,757        

the amount of taxes imposed under section 5733.06 of the Revised   9,758        

Code that are overpaid, paid illegally or erroneously, or paid on  9,759        

any illegal, erroneous, or excessive assessment, with interest     9,760        

thereon as provided by section 5733.26 of the Revised Code, shall  9,761        

be filed with the tax commissioner, on the form prescribed by the  9,763        

commissioner, within three years from the date of the illegal,     9,764        

erroneous, or excessive payment of the tax, or within any                       

additional period allowed by division (C)(2) of section 5733.031,  9,765        

division (D)(2) of section 5733.067, or division (A) of section    9,766        

5733.11 of the Revised Code.                                       9,767        

      On the filing of the refund application, the commissioner    9,769        

shall determine the amount of refund due and certify such amount   9,770        

to the director of budget and management and treasurer of state    9,771        

for payment from the tax refund fund created by section 5703.052   9,772        

of the Revised Code.                                               9,773        

      (C)  "Ninety days" shall be substituted for "three years"    9,776        

in division (B) of this section if the taxpayer satisfies both of  9,777        

the following:                                                     9,778        

      (1)  The taxpayer has applied for a refund based in whole    9,780        

or in part upon section 5733.0611 of the Revised Code;             9,781        

      (2)  The taxpayer asserts that the imposition or collection  9,783        

of the tax imposed or charged by section 5733.06 of the Revised    9,784        

Code or any portion of such tax violates the Constitution of the   9,785        

United States or the Constitution of this state.                   9,786        

      (D)(1)  Division (D)(2) of this section applies only if all  9,789        

of the following conditions are satisfied:                                      

      (a)  A qualifying pass-through entity pays an amount of the  9,792        

tax imposed by section 5733.41 of the Revised Code;                9,793        

      (b)  The taxpayer is a qualifying investor as to that        9,795        

qualifying pass-through entity;                                    9,796        

                                                          223    

                                                                 
      (c)  The taxpayer did not claim the credit provided for in   9,798        

section 5733.0611 of the Revised Code as to the tax described in   9,799        

division (D)(1)(a) of this section;                                9,800        

      (d)  The three-year period described in division (B) of      9,803        

this section has ended as to the taxable year for which the                     

taxpayer otherwise would have claimed that credit.                 9,804        

      (2)  A taxpayer shall file an application for refund         9,806        

pursuant to this division within one year after the date the       9,807        

payment described in division (D)(1)(a) of this section is made.   9,809        

An application filed under this division shall only claim refund   9,810        

of overpayments resulting from the taxpayer's failure to claim     9,811        

the credit described in division (D)(1)(c) of this section.        9,813        

Nothing in this division shall be construed to relieve a taxpayer  9,814        

from complying with the provisions of division (I)(13)(14) of      9,815        

section 5733.04 of the Revised Code.                                            

      Sec. 5733.40.  As used in sections 5733.40 and 5733.41 and   9,824        

Chapter 5747. of the Revised Code:                                 9,825        

      (A)(1)  "Adjusted qualifying amount" means either of the     9,827        

following:                                                                      

      (a)  The net sum of a qualifying investor's distributive     9,829        

share of the income, gain, expense, or loss of a qualifying        9,830        

pass-through entity for the qualifying taxable year of the         9,831        

qualifying pass-through entity multiplied by the apportionment     9,832        

fraction defined in division (B) of this section, subject to       9,833        

SECTION 5733.401 OF THE REVISED CODE AND divisions (A)(2) to (6)   9,834        

of this section;                                                   9,835        

      (b)  The sum of a qualifying beneficiary's share of the      9,837        

qualifying net income and qualifying net gain distributed by a     9,838        

qualifying trust for the qualifying taxable year of the            9,839        

qualifying trust multiplied by the apportionment fraction defined  9,840        

in division (B) of this section, subject to SECTION 5733.401 OF    9,841        

THE REVISED CODE AND divisions (A)(2) to (5) of this section.      9,842        

      (2)  The sum shall exclude any amount which, pursuant to     9,844        

the Constitution of the United States, the Constitution of Ohio,   9,845        

                                                          224    

                                                                 
or any federal law is not subject to a tax on or measured by net   9,846        

income.                                                                         

      (3)  The sum shall be increased by all amounts representing  9,848        

expenses other than amounts described in division (A)(6) of this   9,850        

section that the taxpayer paid to or incurred with respect to      9,851        

direct or indirect transactions with one or more related members,  9,852        

excluding the cost of goods sold calculated in accordance with     9,853        

section 263A of the Internal Revenue Code and United States        9,854        

department of the treasury regulations issued thereunder.                       

Nothing in division (A)(3) of this section shall be construed to   9,855        

limit solely to this chapter the application of section 263A of    9,856        

the Internal Revenue Code and United States department of the      9,857        

treasury regulations issued thereunder.                                         

      (4)  The sum shall be increased by all recognized losses,    9,859        

other than losses from sales of inventory the cost of which is     9,860        

calculated in accordance with section 263A of the Internal         9,861        

Revenue Code and United States department of the treasury          9,862        

regulations issued thereunder, with respect to all direct or       9,863        

indirect transactions with one or more related members.  Losses                 

from the sales of such inventory shall be calculated in            9,864        

accordance with section 482 of the Internal Revenue Code and       9,865        

United States department of the treasury regulations issued        9,866        

thereunder.  Nothing in division (A)(4) of this section shall be   9,867        

construed to limit solely to this section the application of                    

section 236A and section 482 of the Internal Revenue Code and      9,868        

United States department of the treasury regulations issued        9,869        

thereunder.                                                                     

      (5)  The sum shall be computed without regard to section     9,871        

5733.051 or division (D) of section 5733.052 of the Revised Code.  9,872        

      (6)  For the purposes of Chapters 5733. and 5747. of the     9,874        

Revised Code, guaranteed payments made by a partnership or by a    9,875        

limited liability company that is not subject to the tax imposed   9,876        

by section 5733.06 of the Revised Code, and compensation paid by   9,877        

an S corporation to its shareholders, shall be considered a        9,878        

                                                          225    

                                                                 
distributive share of income of the partnership, limited           9,879        

liability company, or S corporation.  Division (A)(6) of this      9,880        

section applies only to such payments or such compensation made                 

or paid to a qualifying investor who is a related member to or of  9,881        

the qualifying entity.                                             9,882        

      (B)  "Apportionment fraction" means:                         9,884        

      (1)  With respect to a qualifying pass-through entity other  9,887        

than a financial institution, the fraction calculated pursuant to  9,888        

division (B)(2) of section 5733.05 of the Revised Code as if the   9,889        

qualifying pass-through entity were a corporation subject to the   9,890        

tax imposed by section 5733.06 of the Revised Code;                             

      (2)  With respect to a qualifying pass-through entity that   9,892        

is a financial institution, the fraction calculated pursuant to    9,893        

DIVISION (C) OF section 5133.056 5733.056 of the Revised Code as   9,895        

if the qualifying pass-through entity were a financial                          

institution subject to the tax imposed by section 5733.06 of the   9,896        

Revised Code.                                                                   

      (3)  With respect to a qualifying trust, the fraction        9,898        

calculated pursuant to division (B)(2) of section 5733.05 of the   9,899        

Revised Code as if the qualifying trust were a corporation         9,900        

subject to the tax imposed by section 5733.06 of the Revised       9,901        

Code, except that the property, payroll, and sales fractions       9,902        

shall be calculated by including in the numerator and denominator  9,903        

of the fractions only the property, payroll, and sales,            9,904        

respectively, directly related to the production of income or      9,905        

gain from acquisition, ownership, use, maintenance, management,    9,906        

or disposition of tangible personal property located in this       9,907        

state at any time during the qualifying trust's qualifying         9,908        

taxable year or of real property located in this state.            9,909        

      (C)  "Qualifying beneficiary" means any individual that,     9,911        

during the qualifying taxable year of a qualifying trust, is a     9,912        

beneficiary of that trust, but does not include an individual who  9,913        

is a resident taxpayer for the purposes of Chapter 5747. of the    9,914        

Revised Code for the entire qualifying taxable year of the         9,915        

                                                          226    

                                                                 
qualifying trust.                                                               

      (D)  "Fiscal year" means an accounting period ending on any  9,917        

day other than the thirty-first day of December.                   9,918        

      (E)  "Individual" means a natural person.                    9,920        

      (F)  "Month" means a calendar month.                         9,922        

      (G)  "Partnership" has the same meaning as in section        9,924        

5747.01 of the Revised Code.                                       9,925        

      (H)  "Investor" means any person that, during any portion    9,927        

of a taxable year of a qualifying pass-through entity, is a        9,928        

partner, member, shareholder, or investor in that qualifying       9,929        

pass-through entity.                                                            

      (I)  "Qualifying EXCEPT AS OTHERWISE PROVIDED IN SECTION     9,931        

5733.402 OR 5747.401 OF THE REVISED CODE, "QUALIFYING investor"    9,932        

means any investor except those described in divisions (I)(1) to   9,933        

(9) of this section.                                                            

      (1)  An investor satisfying one of the descriptions under    9,935        

section 501(a) OR (c) of the Internal Revenue Code, AN ELECTING    9,937        

SMALL BUSINESS TRUST, A PARTNERSHIP WITH EQUITY SECURITIES         9,938        

REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE          9,939        

COMMISSION UNDER SECTION 12 OF THE "SECURITIES EXCHANGE ACT OF     9,940        

1934," AS AMENDED, OR AN INVESTOR DESCRIBED IN division (F) of     9,941        

section 3334.01, or division (A) or (C) of section 5733.09 of the  9,942        

Revised Code for the entire qualifying taxable year of the         9,944        

qualifying pass-through entity.                                                 

      (2)  An investor who is EITHER an individual OR AN ESTATE    9,946        

and IS a resident taxpayer for the purposes of section 5747.01 of  9,948        

the Revised Code for the entire qualifying taxable year of the     9,949        

qualifying pass-through entity.                                                 

      (3)  An investor who is an individual for whom the           9,951        

qualifying pass-through entity makes a good faith and reasonable   9,952        

effort to comply fully and timely with the filing and payment      9,953        

requirements set forth in division (D) of section 5747.08 of the   9,954        

Revised Code and section 5747.09 of the Revised Code with respect  9,955        

to the individual's adjusted qualifying amount for the entire      9,956        

                                                          227    

                                                                 
qualifying taxable year of the qualifying pass-through entity.     9,957        

      (4)  An investor that is another qualifying pass-through     9,959        

entity having only investors described in division (I)(1), (2),    9,961        

(3), or (6) of this section during the three-year period                        

beginning twelve months prior to the first day of the qualifying   9,962        

taxable year of the qualifying pass-through entity.                9,963        

      (5)  An investor that is another pass-through entity having  9,966        

no investors other than individuals and estates during the         9,967        

qualifying taxable year of the qualifying pass-through entity in   9,968        

which it is an investor, and that makes a good faith and           9,969        

reasonable effort to comply fully and timely with the filing and   9,970        

payment requirements set forth in division (D) of section 5747.08  9,971        

of the Revised Code and section 5747.09 of the Revised Code with   9,973        

respect to investors that are not resident taxpayers of this                    

state for the purposes of Chapter 5747. of the Revised Code for    9,975        

the entire qualifying taxable year of the qualifying pass-through  9,976        

entity in which it is an investor.                                 9,977        

      (6)  An investor that is a financial institution required    9,979        

to calculate the tax in accordance with division (D) of section    9,980        

5733.06 of the Revised Code on the first day of January of the     9,981        

calendar year immediately following the last day of the financial  9,983        

institution's calendar or fiscal year in which ends the                         

taxpayer's taxable year.                                           9,984        

      (7)  An investor other than an individual that satisfies     9,986        

all the following:                                                 9,987        

      (a)  The investor submits a written statement to the         9,989        

qualifying pass-through entity stating that the investor           9,990        

irrevocably agrees that the investor has nexus with this state     9,991        

under the Constitution of the United States and is subject to and  9,993        

liable for the tax calculated under division (B) of section        9,994        

5733.06 of the Revised Code with respect to the investor's         9,995        

adjusted qualifying amount for the entire qualifying taxable year  9,996        

of the qualifying pass-through entity.  The statement is subject   9,997        

to the penalties of perjury, shall be retained by the qualifying   9,998        

                                                          228    

                                                                 
pass-through entity for no fewer than seven years, and shall be    9,999        

delivered to the tax commissioner upon request.                    10,000       

      (b)  The investor makes a good faith and reasonable effort   10,002       

to comply timely and fully with all the reporting and payment      10,003       

requirements set forth in Chapter 5733. of the Revised Code with   10,004       

respect to the investor's adjusted qualifying amount for the       10,005       

entire qualifying taxable year of the qualifying pass-through      10,006       

entity.                                                                         

      (c)  Neither the investor nor the qualifying pass-through    10,008       

entity in which it is an investor, before, during, or after the    10,009       

qualifying pass-through entity's qualifying taxable year, carries  10,011       

out any transaction or transactions with one or more related                    

members of the investor or the qualifying pass-through entity      10,012       

resulting in a reduction or deferral of tax imposed by Chapter     10,013       

5733. of the Revised Code with respect to all or any portion of    10,014       

the investor's adjusted qualifying amount for the qualifying       10,015       

pass-through entity's taxable year, or that constitute a sham,     10,017       

lack economic reality, or are part of a series of transactions     10,018       

the form of which constitutes a step transaction or transactions   10,019       

or does not reflect the substance of those transactions.                        

      (8)  Any other investor that the tax commissioner may        10,021       

designate by rule.  The tax commissioner may adopt rules           10,022       

including a rule defining "qualifying investor" or "qualifying     10,023       

beneficiary" and governing the imposition of the withholding tax   10,025       

imposed by section 5747.41 of the Revised Code with respect to an  10,026       

individual who is a resident taxpayer for the purposes of Chapter  10,027       

5747. of the Revised Code for only a portion of the qualifying     10,028       

taxable year of the qualifying entity.                             10,029       

      (9)  An investor that is a trust or fund the beneficiaries   10,031       

of which, during the qualifying taxable year of the qualifying     10,032       

pass-through entity, are limited to the following:                 10,033       

      (a)  A person that is or may be the beneficiary of a trust   10,035       

subject to Subchapter D of Chapter 1 of Subtitle A of the          10,036       

Internal Revenue Code.                                                          

                                                          229    

                                                                 
      (b)  A person that is or may be the beneficiary of or the    10,039       

recipient of payments from a trust or fund that is a nuclear       10,040       

decommissioning reserve fund, a designated settlement fund, or     10,041       

any other trust or fund established to resolve and satisfy claims  10,042       

that may otherwise be asserted by the beneficiary or a member of   10,043       

the beneficiary's family.  Sections 267(c)(4), 468A(e), and        10,044       

468B(d)(2) of the Internal Revenue Code apply to the                            

determination of whether such a person satisfies division (I)(9)   10,045       

of this section.                                                   10,046       

      (c)  A person who is or may be the beneficiary of a trust    10,048       

that, under its governing instrument, is not required to           10,049       

distribute all of its income currently.  Division (I)(9)(c) of     10,050       

this section applies only if the trust, prior to the due date for  10,051       

filing the qualifying pass-through entity's return for taxes       10,052       

imposed by section 5733.41 and sections 5747.41 to 5747.453 of                  

the Revised Code, irrevocably agrees in writing that for the       10,053       

taxable year during or for which the trust distributes any of its  10,054       

income to any of its beneficiaries, the trust is a qualifying      10,055       

trust and will pay the estimated tax, and will withhold and pay    10,056       

the withheld tax, as required under sections 5747.40 to 5747.453   10,057       

of the Revised Code.                                                            

      For the purposes of division (I)(9) of this section, a       10,060       

trust or fund shall be considered to have a beneficiary other      10,061       

than persons described under divisions (I)(9)(a) to (c) of this    10,062       

section if a beneficiary would not qualify under those divisions   10,063       

under the doctrines of "economic reality," "sham transaction,"     10,064       

"step doctrine," or "substance over form."  A trust or fund        10,065       

described in division (I)(9) of this section bears the burden of   10,066       

establishing by a preponderance of the evidence that any           10,067       

transaction giving rise to the tax benefits provided under         10,068       

division (I)(9) of this section does not have as a principal                    

purpose a claim of those tax benefits.  Nothing in this section    10,069       

shall be construed to limit solely to this section the             10,070       

application of the doctrines referred to in this paragraph.        10,071       

                                                          230    

                                                                 
      (J)  "Qualifying net gain" means any recognized net gain     10,073       

with respect to the acquisition, ownership, use, maintenance,      10,074       

management, or disposition of tangible personal property located   10,075       

in this state at any time during a trust's qualifying taxable      10,076       

year or real property located in this state.                       10,077       

      (K)  "Qualifying net income" means any recognized income,    10,079       

net of related deductible expenses, other than distributions       10,080       

deductions with respect to the acquisition, ownership, use,        10,082       

maintenance, management, or disposition of tangible personal                    

property located in this state at any time during the trust's      10,084       

qualifying taxable year or real property located in this state.    10,085       

      (L)  "Qualifying entity" means a qualifying pass-through     10,087       

entity or a qualifying trust.                                      10,088       

      (M)  "Qualifying trust" means a trust subject to subchapter  10,090       

J of the Internal Revenue Code that, during any portion of the     10,092       

trust's qualifying taxable year, has income or gain from the       10,093       

acquisition, management, ownership, use, or disposition of         10,094       

tangible personal property located in this state at any time       10,095       

during the trust's qualifying taxable year or real property        10,096       

located in this state.  "Qualifying trust" does not include a      10,097       

person described in section 501(c) of the Internal Revenue Code                 

or a person described in division (C) of section 5733.09 of the    10,098       

Revised Code.                                                                   

      (N) "Qualifying pass-through entity" means a pass-through    10,100       

entity as defined in section 5733.04 of the Revised Code,          10,101       

excluding a person described in section 501(c) of the Internal     10,103       

Revenue Code, a partnership with equity securities registered                   

with the United States securities and exchange commission under    10,104       

section 12 of the Securities Exchange Act of 1934, as amended, or  10,105       

a person described in division (C) of section 5733.09 of the       10,106       

Revised Code.                                                                   

      (O)  "Quarter" means the first three months, the second      10,108       

three months, the third three months, or the last three months of  10,109       

a qualifying entity's qualifying taxable year.                     10,110       

                                                          231    

                                                                 
      (P)  "Related member" has the same meaning as in division    10,112       

(A)(6) of section 5733.042 of the Revised Code without regard to   10,113       

division (B) of that section.  However, for the purposes of        10,114       

divisions (A)(3) and (4) of this section only, "related member"    10,115       

has the same meaning as in division (A)(6) of section 5733.042 of  10,116       

the Revised Code without regard to division  (B) of that section,  10,117       

but shall be applied by substituting "forty per cent" for "twenty  10,118       

per cent" wherever "twenty per cent" appears in division (A) of    10,119       

that section.                                                                   

      (Q)  "Return" or "report" means the notifications and        10,121       

reports required to be filed pursuant to sections 5747.42 to       10,122       

5747.45 of the Revised Code for the purpose of reporting the tax   10,123       

imposed under section 5733.41 or 5747.41 of the Revised Code, and  10,124       

included declarations of estimated tax when so required.           10,125       

      (R)  "Qualifying taxable year" means the calendar year or    10,127       

the qualifying entity's fiscal year ending during the calendar     10,128       

year, or fractional part thereof, for which the adjusted           10,129       

qualifying amount is calculated pursuant to sections 5733.40 and   10,130       

5733.41 or sections 5747.40 to 5747.453 of the Revised Code.       10,131       

      Sec. 5733.401.  (A)  AS USED IN THIS SECTION:                10,134       

      (1)  "INVESTMENT PASS-THROUGH ENTITY" MEANS A PASS-THROUGH   10,136       

ENTITY HAVING FOR ITS QUALIFYING TAXABLE YEAR AT LEAST NINETY PER  10,138       

CENT OF ITS GROSS INCOME FROM TRANSACTION FEES IN CONNECTION WITH  10,139       

THE ACQUISITION, OWNERSHIP, OR DISPOSITION OF INTANGIBLE                        

PROPERTY, LOAN FEES, FINANCING FEES, CONSENT FEES, WAIVER FEES,    10,140       

APPLICATION FEES, NET MANAGEMENT FEES, DIVIDEND INCOME, INTEREST   10,141       

INCOME, NET CAPITAL GAINS FROM THE SALE OR EXCHANGE OF INTANGIBLE  10,143       

PROPERTY, OR DISTRIBUTIVE SHARES OF INCOME FROM PASS-THROUGH       10,144       

ENTITIES; AND HAVING FOR ITS QUALIFYING TAXABLE YEAR AT LEAST      10,145       

NINETY PER CENT OF THE NET BOOK VALUE OF ITS ASSETS REPRESENTED    10,146       

BY INTANGIBLE ASSETS.  SUCH PERCENTAGES SHALL BE THE QUARTERLY     10,147       

AVERAGE OF THOSE PERCENTAGES AS CALCULATED DURING THE              10,148       

PASS-THROUGH ENTITY'S TAXABLE YEAR.                                10,149       

      (2)  "NET MANAGEMENT FEES" MEANS MANAGEMENT FEES THAT A      10,151       

                                                          232    

                                                                 
PASS-THROUGH ENTITY EARNS OR RECEIVES FROM ALL SOURCES, REDUCED    10,152       

BY MANAGEMENT FEES THAT THE PASS-THROUGH ENTITY INCURS OR PAYS TO  10,154       

ANY PERSON.                                                                     

      (B)  FOR THE PURPOSES OF DIVISIONS (A) AND (C) OF THIS       10,158       

SECTION ONLY, AN INVESTMENT IN A PASS-THROUGH ENTITY SHALL BE      10,159       

DEEMED TO BE AN INVESTMENT IN AN INTANGIBLE ASSET.                 10,160       

      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS    10,164       

SECTION, FOR THE PURPOSES OF DIVISION (A) OF SECTION 5733.40 OF    10,165       

THE REVISED CODE, AN INVESTMENT PASS-THROUGH ENTITY SHALL EXCLUDE  10,167       

FROM THE CALCULATION OF THE ADJUSTED QUALIFYING AMOUNT ALL         10,168       

TRANSACTION FEES IN CONNECTION WITH THE ACQUISITION, OWNERSHIP,    10,169       

OR DISPOSITION OF INTANGIBLE PROPERTY, LOAN FEES, FINANCING FEES,  10,170       

CONSENT FEES, WAIVER FEES, APPLICATION FEES, NET MANAGEMENT FEES,  10,171       

DIVIDEND INCOME, INTEREST INCOME, NET CAPITAL GAINS FROM THE SALE  10,172       

OR EXCHANGE OF INTANGIBLE PROPERTY, AND ALL TYPES AND              10,173       

CLASSIFICATIONS OF INCOME ATTRIBUTABLE TO DISTRIBUTIVE SHARES OF   10,174       

INCOME FROM OTHER PASS-THROUGH ENTITIES.  NOTHING IN THIS          10,175       

DIVISION SHALL BE CONSTRUED TO PROVIDE FOR AN EXCLUSION OF ANY     10,176       

ITEM FROM ADJUSTED QUALIFYING AMOUNT MORE THAN ONCE.               10,177       

      (D)  SECTIONS 5733.057 AND 5747.231 OF THE REVISED CODE DO   10,180       

NOT APPLY FOR THE PURPOSES OF MAKING THE DETERMINATIONS REQUIRED   10,181       

BY DIVISION (A) OF THIS SECTION OR CLAIMING THE EXCLUSION          10,183       

PROVIDED BY DIVISION (C) OF THIS SECTION.                          10,184       

      Sec. 5733.402.  (A)  NOTWITHSTANDING SECTION 5733.40,        10,187       

5733.41, 5747.41, OR 5747.43 OF THE REVISED CODE, BUT SUBJECT TO   10,188       

DIVISIONS (B), (C), AND (D) OF THIS SECTION, FOR TAXABLE YEARS     10,192       

BEGINNING AFTER 1997, A QUALIFYING PASS-THROUGH ENTITY,            10,193       

HEREINAFTER THE "EXEMPT ENTITY," IS NOT SUBJECT TO THE TAXES       10,194       

IMPOSED BY AND REQUIRED TO BE PAID UNDER THOSE SECTIONS WITH                    

RESPECT TO DISTRIBUTIVE SHARES OF INCOME AND GAIN THAT PASS        10,196       

THROUGH FROM THE QUALIFYING PASS-THROUGH ENTITY TO ANOTHER         10,197       

QUALIFYING PASS-THROUGH ENTITY, HEREINAFTER THE "INVESTING         10,198       

ENTITY," IF THE INVESTING ENTITY IRREVOCABLY ACKNOWLEDGES THAT IT  10,199       

HAS NEXUS WITH THIS STATE UNDER THE CONSTITUTION OF THE UNITED     10,202       

                                                          233    

                                                                 
STATES DURING THE EXEMPT ENTITY'S ENTIRE TAXABLE YEAR.             10,203       

      (B)(1)  DIVISION (A) OF THIS SECTION DOES NOT APPLY TO THE   10,207       

EXTENT THAT THE INVESTING ENTITY FAILS TO MAKE A GOOD FAITH AND    10,208       

REASONABLE EFFORT TO COMPLY ON A REASONABLY TIMELY BASIS WITH      10,209       

SECTION 5733.41 AND SECTIONS 5747.41 TO 5747.453 OF THE REVISED    10,210       

CODE.                                                                           

      (2)  THE INVESTING ENTITY AND THE EXEMPT ENTITY BEARS THE    10,212       

BURDEN OF ESTABLISHING BY A PREPONDERANCE OF THE EVIDENCE THAT     10,214       

THE INVESTING ENTITY MADE A GOOD FAITH AND REASONABLE EFFORT TO    10,215       

COMPLY ON A REASONABLY TIMELY BASIS WITH SECTION 5733.41 AND       10,216       

SECTIONS 5747.41 TO 5747.453 OF THE REVISED CODE.                  10,217       

      (3)  THIS SECTION DOES NOT MODIFY, REDUCE, ABATE, DEFER,     10,219       

POSTPONE, OR BAR THE IMPOSITION OF AND THE REQUIRED PAYMENT OF     10,220       

ANY FEE, INTEREST, OR PENALTY OTHERWISE DUE UNDER TITLE LVII OF    10,223       

THE REVISED CODE.                                                  10,224       

      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS    10,228       

SECTION, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO DENY THE    10,229       

APPLICATION OF DIVISION (A) OF THIS SECTION TO THE DISTRIBUTIVE    10,230       

SHARE OF INCOME AND GAIN OF AN INVESTING ENTITY THAT, WITH         10,231       

RESPECT TO THAT DISTRIBUTIVE SHARE, IS ITSELF AN EXEMPT ENTITY     10,232       

WITH RESPECT TO ANOTHER QUALIFYING PASS-THROUGH ENTITY,            10,233       

HEREINAFTER THE "UPPER LEVEL INVESTING ENTITY," IF THE UPPER       10,234       

LEVEL INVESTING ENTITY IRREVOCABLY ACKNOWLEDGES THAT IT HAS NEXUS  10,235       

WITH THIS STATE UNDER THE CONSTITUTION OF THE UNITED STATES        10,238       

DURING THE INVESTING ENTITY'S ENTIRE TAXABLE YEAR.  DIVISION (B)   10,240       

OF THIS SECTION ALSO APPLIES TO THE UPPER LEVEL INVESTING ENTITY.  10,241       

THIS DIVISION APPLIES REGARDLESS OF THE NUMBER OF LEVELS OF        10,242       

INVESTING ENTITIES.                                                10,243       

      (D)  AN INVESTING ENTITY OR UPPER LEVEL INVESTING ENTITY     10,246       

DOES NOT INCLUDE AN INVESTMENT PASS-THROUGH ENTITY AS DEFINED IN   10,247       

SECTION 5733.401 OF THE REVISED CODE, AND DIVISION (A) OF THIS     10,249       

SECTION DOES NOT APPLY WITH RESPECT TO ANY DISTRIBUTIVE SHARES OF  10,250       

INCOME OR GAIN THAT PASS THROUGH TO AN INVESTMENT PASS-THROUGH     10,251       

ENTITY.                                                                         

                                                          234    

                                                                 
      Sec. 5733.98.  (A)  To provide a uniform procedure for       10,260       

calculating the amount of tax imposed by section 5733.06 of the    10,261       

Revised Code that is due under this chapter, a taxpayer shall      10,263       

claim any credits to which it is entitled in the following order,               

EXCEPT AS OTHERWISE PROVIDED IN SECTION 5733.058 OF THE REVISED    10,264       

CODE:                                                                           

      (1)  The credit for taxes paid by a qualifying pass-through  10,266       

entity allowed under section 5733.0611 of the Revised Code;        10,267       

      (2)  The credit for qualifying affiliated groups under       10,269       

section 5733.068 of the Revised Code;                              10,270       

      (3)  The subsidiary corporation credit under section         10,272       

5733.067 of the Revised Code;                                      10,273       

      (4)  The savings and loan assessment credit under section    10,275       

5733.063 of the Revised Code;                                      10,276       

      (5)  The credit for recycling and litter prevention          10,278       

donations under section 5733.064 of the Revised Code;              10,280       

      (6)  The credit for employers that enter into agreements     10,283       

with child day-care centers under section 5733.36 of the Revised   10,284       

Code;                                                                           

      (7)  The credit for employers that reimburse employee child  10,286       

day-care expenses under section 5733.38 of the Revised Code;       10,288       

      (8)  The credit for manufacturing investments under section  10,290       

5733.061 of the Revised Code;                                      10,291       

      (9)  The credit for purchases of new manufacturing           10,293       

machinery and equipment under section 5733.31 or section 5733.311  10,294       

of the Revised Code;                                               10,295       

      (10)  The second credit for purchases of new manufacturing   10,298       

machinery and equipment under section 5733.33 of the Revised       10,299       

Code;                                                                           

      (11)  The enterprise zone credit under section 5709.66 of    10,301       

the Revised Code;                                                  10,302       

      (12)  The credit for the eligible costs associated with a    10,304       

voluntary action under section 5733.34 of the Revised Code;        10,306       

      (13)  The credit for employers that establish on-site child  10,309       

                                                          235    

                                                                 
day-care under section 5733.37 of the Revised Code;                10,310       

      (14)  The credit for purchases of qualifying grape           10,312       

production property under section 5733.32 of the Revised Code;     10,313       

      (15)  The export sales credit under section 5733.069 of the  10,316       

Revised Code;                                                                   

      (16)  The credit for research and development and            10,318       

technology transfer investors under section 5733.35 of the         10,319       

Revised Code;                                                                   

      (17)  The enterprise zone credits under section 5709.65 of   10,322       

the Revised Code;                                                               

      (18)  The refundable jobs creation credit under section      10,324       

5733.0610 of the Revised Code.                                     10,325       

      (B)  For any credit except the refundable jobs creation      10,327       

credit, the amount of the credit for a tax year shall not exceed   10,328       

the tax due after allowing for any other credit that precedes it   10,329       

in the order required under this section.  Any excess amount of a  10,330       

particular credit may be carried forward if authorized under the   10,331       

section creating that credit.                                      10,332       

      Sec. 5747.01.  Except as otherwise expressly provided or     10,342       

clearly appearing from the context, any term used in this chapter  10,343       

has the same meaning as when used in a comparable context in the   10,344       

Internal Revenue Code, and all other statutes of the United        10,345       

States relating to federal income taxes.                           10,346       

      As used in this chapter:                                     10,348       

      (A)  "Adjusted gross income" or "Ohio adjusted gross         10,350       

income" means adjusted gross income as defined and used in the     10,351       

Internal Revenue Code, adjusted as provided in divisions (A)(1)    10,353       

to (16)(17) of this section:                                                    

      (1)  Add interest or dividends on obligations or securities  10,355       

of any state or of any political subdivision or authority of any   10,356       

state, other than this state and its subdivisions and              10,357       

authorities.                                                                    

      (2)  Add interest or dividends on obligations of any         10,359       

authority, commission, instrumentality, territory, or possession   10,360       

                                                          236    

                                                                 
of the United States that are exempt from federal income taxes     10,361       

but not from state income taxes.                                   10,362       

      (3)  Deduct interest or dividends on obligations of the      10,364       

United States and its territories and possessions or of any        10,365       

authority, commission, or instrumentality of the United States to  10,366       

the extent included in federal adjusted gross income but exempt    10,367       

from state income taxes under the laws of the United States.       10,368       

      (4)  Deduct disability and survivor's benefits to the        10,370       

extent included in federal adjusted gross income.                  10,371       

      (5)  Deduct benefits under Title II of the Social Security   10,373       

Act and tier 1 railroad retirement benefits to the extent          10,374       

included in federal adjusted gross income under section 86 of the  10,375       

Internal Revenue Code.                                             10,376       

      (6)  Add, in the case of a taxpayer who is a beneficiary of  10,378       

a trust that makes an accumulation distribution as defined in      10,379       

section 665 of the Internal Revenue Code, the portion, if any, of  10,380       

such distribution that does not exceed the undistributed net       10,381       

income of the trust for the three taxable years preceding the      10,382       

taxable year in which the distribution is made.  "Undistributed    10,383       

net income of a trust" means the taxable income of the trust       10,384       

increased by (a)(i) the additions to adjusted gross income         10,385       

required under division (A) of this section and (ii) the personal  10,386       

exemptions allowed to the trust pursuant to section 642(b) of the  10,387       

Internal Revenue Code, and decreased by (b)(i) the deductions to   10,388       

adjusted gross income required under division (A) of this          10,389       

section, (ii) the amount of federal income taxes attributable to   10,390       

such income, and (iii) the amount of taxable income that has been  10,391       

included in the adjusted gross income of a beneficiary by reason   10,392       

of a prior accumulation distribution.  Any undistributed net       10,393       

income included in the adjusted gross income of a beneficiary      10,394       

shall reduce the undistributed net income of the trust commencing  10,395       

with the earliest years of the accumulation period.                10,396       

      (7)  Deduct the amount of wages and salaries, if any, not    10,398       

otherwise allowable as a deduction but that would have been        10,399       

                                                          237    

                                                                 
allowable as a deduction in computing federal adjusted gross       10,400       

income for the taxable year, had the targeted jobs credit allowed  10,401       

and determined under sections 38, 51, and 52 of the Internal       10,402       

Revenue Code not been in effect.                                   10,403       

      (8)  Deduct any interest or interest equivalent on public    10,405       

obligations and purchase obligations to the extent included in     10,406       

federal adjusted gross income.                                     10,407       

      (9)  Add any loss or deduct any gain resulting from the      10,409       

sale, exchange, or other disposition of public obligations to the  10,410       

extent included in federal adjusted gross income.                  10,411       

      (10)  Regarding tuition credits purchased under Chapter      10,413       

3334. of the Revised Code:                                         10,414       

      (a)  Deduct the following:                                   10,416       

      (i)  For credits that as of the end of the taxable year      10,419       

have not been refunded pursuant to the termination of a tuition                 

payment contract under section 3334.10 of the Revised Code, the    10,421       

amount of income related to the credits, to the extent included    10,422       

in federal adjusted gross income;                                               

      (ii)  For credits that during the taxable year have been     10,425       

refunded pursuant to the termination of a tuition payment                       

contract under section 3334.10 of the Revised Code, the excess of  10,426       

the total purchase price of the tuition credits refunded over the  10,427       

amount of refund, to the extent the amount of the excess was not   10,428       

deducted in determining federal adjusted gross income;             10,429       

      (b)  Add the following:                                      10,431       

      (i)  For credits that as of the end of the taxable year      10,434       

have not been refunded pursuant to the termination of a tuition                 

payment contract under section 3334.10 of the Revised Code, the    10,435       

amount of loss related to the credits, to the extent the amount    10,436       

of the loss was deducted in determining federal adjusted gross     10,437       

income;                                                                         

      (ii)  For credits that during the taxable year have been     10,440       

refunded pursuant to the termination of a tuition payment                       

contract under section 3334.10 of the Revised Code, the excess of  10,442       

                                                          238    

                                                                 
the amount of refund over the purchase price of each tuition       10,443       

credit refunded, to the extent not included in federal adjusted    10,444       

gross income.                                                                   

      (11)  Deduct, in the case of a self-employed individual as   10,446       

defined in section 401(c)(1) of the Internal Revenue Code and to   10,447       

the extent not otherwise allowable as a deduction in computing     10,448       

federal adjusted gross income for the taxable year, the amount     10,449       

paid during the taxable year for insurance which THAT constitutes  10,451       

medical care for the taxpayer, the taxpayer's spouse, and                       

dependents.  No deduction under division (A)(11) of this section   10,453       

shall be allowed to any taxpayer who is eligible to participate    10,454       

in any subsidized health plan maintained by any employer of the    10,455       

taxpayer or of the spouse of the taxpayer.  No deduction under     10,456       

division (A)(11) of this section shall be allowed to the extent    10,457       

that the sum of such deduction and any related deduction           10,458       

allowable in computing federal adjusted gross income for the       10,459       

taxable year exceeds the taxpayer's earned income, within the      10,460       

meaning of section 401(c) of the Internal Revenue Code, derived    10,461       

by the taxpayer from the trade or business with respect to which   10,462       

the plan providing the medical coverage is established.            10,463       

      (12)  Deduct any amount included in federal adjusted gross   10,465       

income solely because the amount represents a reimbursement or     10,466       

refund of expenses that in a previous year the taxpayer had        10,467       

deducted as an itemized deduction pursuant to section 63 of the    10,468       

Internal Revenue Code and applicable United States department of   10,470       

the treasury regulations.                                                       

      (13)  Deduct any portion of the deduction described in       10,472       

section 1341(a)(2) of the Internal Revenue Code, for repaying      10,473       

previously reported income received under a claim of right, that   10,474       

meets both of the following requirements:                          10,475       

      (a)  It is allowable for repayment of an item that was       10,477       

included in the taxpayer's adjusted gross income for a prior       10,478       

taxable year and did not qualify for a credit under division (A)   10,479       

or (B) of section 5747.05 of the Revised Code for that year;       10,480       

                                                          239    

                                                                 
      (b)  It does not otherwise reduce the taxpayer's adjusted    10,482       

gross income for the current or any other taxable year.            10,483       

      (14)  Deduct an amount equal to the deposits made to, and    10,485       

net investment earnings of, a medical savings account during the   10,486       

taxable year, in accordance with section 3924.66 of the Revised    10,487       

Code.  THE DEDUCTION ALLOWED BY DIVISION (A)(14) OF THIS SECTION   10,488       

DOES NOT APPLY TO MEDICAL SAVINGS ACCOUNT DEPOSITS AND EARNINGS    10,489       

OTHERWISE DEDUCTED OR EXCLUDED FOR THE CURRENT OR ANY OTHER        10,490       

TAXABLE YEAR FROM THE TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME.    10,491       

      (15)(a)  Add an amount equal to the funds withdrawn from a   10,493       

medical savings account during the taxable year, and the net       10,494       

investment earnings on those funds, when the funds withdrawn were  10,495       

used for any purpose other than to reimburse an account holder     10,496       

for, or to pay, eligible medical expenses, in accordance with      10,497       

section 3924.66 of the Revised Code;                                            

      (b)  Add the amounts distributed from a medical savings      10,499       

account under division (A)(2) of section 3924.68 of the Revised    10,500       

Code during the taxable year.                                      10,501       

      (16)  Add any amount claimed as a credit under section       10,503       

5747.059 of the Revised Code to the extent that such amount        10,504       

satisfies either of the following:                                              

      (a)  The amount was deducted or excluded from the            10,506       

computation of the taxpayer's federal adjusted gross income as     10,507       

required to be reported for the taxpayer's taxable year under the  10,508       

Internal Revenue Code;                                                          

      (b)  The amount resulted in a reduction of the taxpayer's    10,510       

federal adjusted gross income as required to be reported for any   10,511       

of the taxpayer's taxable years under the Internal Revenue Code.   10,512       

      (16)(17)  Deduct the amount contributed by the taxpayer to   10,514       

an individual development account program established by a county  10,515       

department of human services pursuant to sections 329.11 to        10,516       

329.14 of the Revised Code for the purpose of matching funds       10,517       

deposited by program participants.  On request of the tax          10,518       

commissioner, the taxpayer shall provide any information that, in               

                                                          240    

                                                                 
the tax commissioner's opinion, is necessary to establish the      10,519       

amount deducted under division (A)(16)(17) of this section.        10,520       

      (B)  "Business income" means income arising from             10,522       

transactions, activities, and sources in the regular course of a   10,523       

trade or business and includes income from tangible and            10,524       

intangible property if the acquisition, rental, management, and    10,525       

disposition of the property constitute integral parts of the       10,526       

regular course of a trade or business operation.                   10,527       

      (C)  "Nonbusiness income" means all income other than        10,529       

business income and may include, but is not limited to,            10,530       

compensation, rents and royalties from real or tangible personal   10,531       

property, capital gains, interest, dividends and distributions,    10,532       

patent or copyright royalties, or lottery winnings, prizes, and    10,533       

awards.                                                            10,534       

      (D)  "Compensation" means any form of remuneration paid to   10,536       

an employee for personal services.                                 10,537       

      (E)  "Fiduciary" means a guardian, trustee, executor,        10,539       

administrator, receiver, conservator, or any other person acting   10,540       

in any fiduciary capacity for any individual, trust, or estate.    10,541       

      (F)  "Fiscal year" means an accounting period of twelve      10,543       

months ending on the last day of any month other than December.    10,544       

      (G)  "Individual" means any natural person.                  10,546       

      (H)  "Internal Revenue Code" means the "Internal Revenue     10,548       

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.          10,549       

      (I)  "Resident" means:                                       10,551       

      (1)  An individual who is domiciled in this state, subject   10,553       

to section 5747.24 of the Revised Code;                            10,554       

      (2)  The estate of a decedent who at the time of death was   10,557       

domiciled in this state.  The domicile tests of section 5747.24    10,558       

of the Revised Code and any election under section 5747.25 of the  10,559       

Revised Code are not controlling for purposes of division (I)(2)   10,560       

of this section.                                                                

      (J)  "Nonresident" means an individual or estate that is     10,562       

not a resident.  An individual who is a resident for only part of  10,563       

                                                          241    

                                                                 
a taxable year is a nonresident for the remainder of that taxable  10,564       

year.                                                              10,565       

      (K)  "Pass-through entity" has the same meaning as in        10,567       

section 5733.04 of the Revised Code.                               10,568       

      (L)  "Return" means the notifications and reports required   10,570       

to be filed pursuant to this chapter for the purpose of reporting  10,571       

the tax due and includes declarations of estimated tax when so     10,572       

required.                                                          10,573       

      (M)  "Taxable year" means the calendar year or the           10,575       

taxpayer's fiscal year ending during the calendar year, or         10,576       

fractional part thereof, upon which the adjusted gross income is   10,577       

calculated pursuant to this chapter.                               10,578       

      (N)  "Taxpayer" means any person subject to the tax imposed  10,580       

by section 5747.02 of the Revised Code or any pass-through entity  10,581       

that makes the election under division (D) of section 5747.08 of   10,582       

the Revised Code.                                                               

      (O)  "Dependents" means dependents as defined in the         10,584       

Internal Revenue Code and as claimed in the taxpayer's federal     10,585       

income tax return for the taxable year or which the taxpayer       10,586       

would have been permitted to claim had the taxpayer filed a        10,587       

federal income tax return.                                         10,589       

      (P)  "Principal county of employment" means, in the case of  10,591       

a nonresident, the county within the state in which a taxpayer     10,592       

performs services for an employer or, if those services are        10,593       

performed in more than one county, the county in which the major   10,594       

portion of the services are performed.                             10,595       

      (Q)  As used in sections 5747.50 to 5747.55 of the Revised   10,597       

Code:                                                                           

      (1)  "Subdivision" means any county, municipal corporation,  10,599       

park district, or township.                                        10,600       

      (2)  "Essential local government purposes" includes all      10,602       

functions that any subdivision is required by general law to       10,603       

exercise, including like functions that are exercised under a      10,604       

charter adopted pursuant to the Ohio Constitution.                 10,605       

                                                          242    

                                                                 
      (R)  "Overpayment" means any amount already paid that        10,607       

exceeds the figure determined to be the correct amount of the      10,608       

tax.                                                               10,609       

      (S)  "Taxable income" applies to estates only and means      10,611       

taxable income as defined and used in the Internal Revenue Code    10,612       

adjusted as follows:                                               10,613       

      (1)  Add interest or dividends on obligations or securities  10,615       

of any state or of any political subdivision or authority of any   10,616       

state, other than this state and its subdivisions and              10,617       

authorities;                                                       10,618       

      (2)  Add interest or dividends on obligations of any         10,620       

authority, commission, instrumentality, territory, or possession   10,621       

of the United States that are exempt from federal income taxes     10,622       

but not from state income taxes;                                   10,623       

      (3)  Add the amount of personal exemption allowed to the     10,625       

estate pursuant to section 642(b) of the Internal Revenue Code;    10,626       

      (4)  Deduct interest or dividends on obligations of the      10,628       

United States and its territories and possessions or of any        10,629       

authority, commission, or instrumentality of the United States     10,630       

that are exempt from state taxes under the laws of the United      10,631       

States;                                                            10,632       

      (5)  Deduct the amount of wages and salaries, if any, not    10,634       

otherwise allowable as a deduction but that would have been        10,635       

allowable as a deduction in computing federal taxable income for   10,636       

the taxable year, had the targeted jobs credit allowed under       10,637       

sections 38, 51, and 52 of the Internal Revenue Code not been in   10,638       

effect;                                                            10,639       

      (6)  Deduct any interest or interest equivalent on public    10,641       

obligations and purchase obligations to the extent included in     10,642       

federal taxable income;                                            10,643       

      (7)  Add any loss or deduct any gain resulting from sale,    10,645       

exchange, or other disposition of public obligations to the        10,646       

extent included in federal taxable income;                         10,647       

      (8)  Except in the case of the final return of an estate,    10,649       

                                                          243    

                                                                 
add any amount deducted by the taxpayer on both its Ohio estate    10,650       

tax return pursuant to section 5731.14 of the Revised Code, and    10,651       

on its federal income tax return in determining either federal     10,652       

adjusted gross income or federal taxable income;                   10,653       

      (9)  Deduct any amount included in federal taxable income    10,655       

solely because the amount represents a reimbursement or refund of  10,656       

expenses that in a previous year the decedent had deducted as an   10,657       

itemized deduction pursuant to section 63 of the Internal Revenue  10,658       

Code and applicable treasury regulations;                          10,659       

      (10)  Deduct any portion of the deduction described in       10,661       

section 1341(a)(2) of the Internal Revenue Code, for repaying      10,662       

previously reported income received under a claim of right, that   10,663       

meets both of the following requirements:                          10,664       

      (a)  It is allowable for repayment of an item that was       10,666       

included in the taxpayer's taxable income or the decedent's        10,667       

adjusted gross income for a prior taxable year and did not         10,668       

qualify for a credit under division (A) or (B) of section 5747.05  10,669       

of the Revised Code for that year.                                 10,670       

      (b)  It does not otherwise reduce the taxpayer's taxable     10,672       

income or the decedent's adjusted gross income for the current or  10,673       

any other taxable year.                                            10,674       

      (11)  Add any amount claimed as a credit under section       10,676       

5747.059 of the Revised Code to the extent that the amount         10,677       

satisfies either of the following:                                 10,678       

      (a)  The amount was deducted or excluded from the            10,680       

computation of the taxpayer's federal taxable income as required   10,681       

to be reported for the taxpayer's taxable year under the Internal  10,682       

Revenue Code;                                                                   

      (b)  The amount resulted in a reduction in the taxpayer's    10,684       

federal taxable income as required to be reported for any of the   10,685       

taxpayer's taxable years under the Internal Revenue CODE.          10,686       

      (T)  "School district income" and "school district income    10,688       

tax" have the same meanings as in section 5748.01 of the Revised   10,689       

Code.                                                              10,690       

                                                          244    

                                                                 
      (U)  As used in divisions (A)(8), (A)(9), (S)(6), and        10,692       

(S)(7) of this section, "public obligations," "purchase            10,693       

obligations," and "interest or interest equivalent" have the same  10,694       

meanings as in section 5709.76 of the Revised Code.                10,695       

      (V)  "Limited liability company" means any limited           10,697       

liability company formed under Chapter 1705. of the Revised Code   10,698       

or under the laws of any other state.                              10,699       

      (W)  "Pass-through entity investor" means any person who,    10,701       

during any portion of a taxable year of a pass-through entity, is  10,702       

a partner, member, shareholder, or investor in that pass-through   10,703       

entity.                                                                         

      (X)  "Banking day" has the same meaning as in section        10,705       

1304.01 of the Revised Code.                                       10,706       

      (Y)  "Month" means a calendar month.                         10,708       

      (Z)  "Quarter" means the first three months, the second      10,710       

three months, the third three months, or the last three months of  10,711       

the taxpayer's taxable year.                                                    

      (AA)  Any term used in this chapter that is not otherwise    10,713       

defined in this section and that is not used in a comparable       10,714       

context in the Internal Revenue Code and other statutes of the     10,715       

United States relating to federal income taxes has the same        10,716       

meaning as in section 5733.40 of the Revised Code.                 10,717       

      Sec. 5747.08.  An annual return with respect to the tax      10,726       

imposed by section 5747.02 of the Revised Code and each tax        10,727       

imposed under Chapter 5748. of the Revised Code shall be made by   10,728       

every taxpayer for any taxable year for which the taxpayer is      10,729       

liable for the tax imposed by that section or under that chapter,  10,730       

unless the total credits allowed under divisions (E), (F), and     10,731       

(G) of section 5747.05 of the Revised Code for the year are equal  10,732       

to or exceed the tax imposed by section 5747.02 of the Revised     10,733       

Code, in which case no return shall be required unless the         10,734       

taxpayer is liable for a tax imposed pursuant to Chapter 5748. of  10,735       

the Revised Code.                                                  10,736       

      (A)  If an individual is deceased, any return or notice      10,738       

                                                          245    

                                                                 
required of that individual under this chapter shall be made and   10,739       

filed by that decedent's executor, administrator, or other person  10,741       

charged with the property of that decedent.                                     

      (B)  If an individual is unable to make a return or notice   10,743       

required by this chapter, the return or notice required of that    10,744       

individual shall be made and filed by the individual's duly        10,745       

authorized agent, guardian, conservator, fiduciary, or other       10,746       

person charged with the care of the person or property of that     10,747       

individual.                                                                     

      (C)  Returns or notices required of an estate or a trust     10,749       

shall be made and filed by the fiduciary of the estate or trust.   10,750       

      (D)(1)  Any (a)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION    10,753       

(D)(1)(b) OF THIS SECTION, ANY pass-through entity having two or   10,755       

more nonresident pass-through entity investors who derive no       10,756       

taxable income from this state, other than a distributive share    10,757       

of the pass-through entity income, may file a single return on     10,758       

behalf of all or some of those pass-through entity ONE OR MORE OF  10,760       

THE ENTITY'S investors who are individuals or estates OTHER THAN   10,762       

AN INVESTOR THAT IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER      10,763       

SECTION 5733.06 OF THE REVISED CODE.  The single return shall set  10,764       

forth the name, address, and social security number of each OF     10,765       

THOSE pass-through entity investor of that nature INVESTORS and    10,767       

shall indicate the distributive share of each OF THOSE                          

pass-through entity investor's income taxable in this state in     10,769       

accordance with sections 5747.20 to 5747.231 of the Revised Code.  10,772       

Such nonresident pass-through entity investors for whom the        10,773       

pass-through entity elects to file a single return are not         10,774       

entitled to the exemption or credit provided for by sections       10,775       

5747.02 and 5747.022 of the Revised Code; shall calculate the tax  10,777       

before business credits at the highest rate of tax set forth in    10,778       

section 5747.02 of the Revised Code for the taxable year for       10,780       

which the return is filed; and are entitled to only their          10,781       

distributive share of the business credits as defined in division  10,783       

(D)(2) of this section.  A single check drawn by the pass-through  10,784       

                                                          246    

                                                                 
entity shall accompany the return in full payment of the tax due   10,786       

FOR SUCH INVESTORS OTHER THAN INVESTORS WHO ARE PERSONS SUBJECT    10,788       

TO THE TAX IMPOSED UNDER SECTION 5733.06 OF THE REVISED CODE.      10,789       

      (b)(i)  A PASS-THROUGH ENTITY SHALL NOT INCLUDE IN SUCH A    10,792       

SINGLE RETURN ANY INVESTOR THAT IS A TRUST TO THE EXTENT THAT ANY  10,793       

DIRECT OR INDIRECT CURRENT, FUTURE, OR CONTINGENT BENEFICIARY OF   10,794       

THE TRUST IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER SECTION     10,795       

5733.06 OF THE REVISED CODE.                                       10,796       

      (ii)  A PASS-THROUGH ENTITY SHALL NOT INCLUDE IN SUCH A      10,799       

SINGLE RETURN ANY INVESTOR THAT IS ITSELF A PASS-THROUGH ENTITY    10,800       

TO THE EXTENT THAT ANY DIRECT OR INDIRECT INVESTOR IN THE SECOND   10,801       

PASS-THROUGH ENTITY IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER   10,802       

SECTION 5733.06 OF THE REVISED CODE.                               10,803       

      (c)  NOTHING IN DIVISION (D) OF THIS SECTION PRECLUDES THE   10,807       

TAX COMMISSIONER FROM REQUIRING SUCH INVESTORS TO FILE THE RETURN  10,808       

AND MAKE THE PAYMENT OF TAXES AND RELATED INTEREST, PENALTY, AND   10,809       

INTEREST PENALTY REQUIRED BY THIS SECTION OR SECTION 5747.02,      10,810       

5747.09, OR 5747.15 OF THE REVISED CODE.  NOTHING IN DIVISION (D)  10,812       

OF THIS SECTION SHALL BE CONSTRUED TO PROVIDE TO SUCH AN INVESTOR  10,813       

OR PASS-THROUGH ENTITY ANY ADDITIONAL DEDUCTION OR CREDIT, OTHER   10,814       

THAN THE CREDIT PROVIDED BY DIVISION (J) OF THIS SECTION, SOLELY   10,816       

ON ACCOUNT OF THE ENTITY'S FILING A RETURN IN ACCORDANCE WITH      10,817       

THIS SECTION.  Such a pass-through entity also shall make the      10,818       

filing and payment of estimated taxes on behalf of those           10,819       

nonresident THE pass-through entity investors OTHER THAN AN        10,820       

INVESTOR THAT IS A PERSON SUBJECT TO THE TAX IMPOSED UNDER         10,821       

SECTION 5733.06 OF THE REVISED CODE.                               10,822       

      (2)  For the purposes of this section, "business credits"    10,825       

means the credits listed in section 5747.98 of the Revised Code    10,828       

excluding the following credits:                                   10,829       

      (a)  The retirement credit under division (B) of section     10,832       

5747.055 of the Revised Code;                                      10,834       

      (b)  The senior citizen credit under division (C) of         10,837       

section 5747.05 of the Revised Code;                               10,839       

                                                          247    

                                                                 
      (c)  The lump sum distribution credit under division (D) of  10,842       

section 5747.05 of the Revised Code;                               10,844       

      (d)  The dependent care credit under section 5747.054 of     10,847       

the Revised Code;                                                  10,848       

      (e)  The lump sum retirement income credit under division    10,851       

(C) of section 5747.055 of the Revised Code;                       10,853       

      (f)  The lump sum retirement income credit under division    10,856       

(D) of section 5747.055 of the Revised Code;                       10,858       

      (g)  The lump sum retirement income credit under division    10,861       

(E) of section 5747.055 of the Revised Code;                       10,863       

      (h)  The credit for displaced workers who pay for job        10,866       

training under section 5747.27 of the Revised Code;                10,868       

      (i)  The twenty-dollar personal exemption credit under       10,871       

section 5747.022 of the Revised Code;                              10,873       

      (j) The joint filing credit under division (G) of section    10,876       

5747.05 of the Revised Code;                                       10,878       

      (k)  The nonresident credit under division (A) of section    10,881       

5747.05 of the Revised Code;                                       10,883       

      (l)  The credit for a resident's out-of-state income under   10,886       

division (B) of section 5747.05 of the Revised Code.               10,889       

      (3)  The election provided for under division (D) of this    10,892       

section applies only to the taxable year for which the election    10,893       

is made by the pass-through entity.  Unless the tax commissioner   10,894       

provides otherwise, this election, once made, is binding and       10,895       

irrevocable for the taxable year for which the election is made.   10,896       

Nothing in this division shall be construed to provide for any     10,897       

deduction or credit that would not be allowable if a nonresident   10,898       

pass-through entity investor were to file an annual return.        10,899       

      (4)  If a pass-through entity makes the election provided    10,901       

for under division (D) of this section, the pass-through entity    10,903       

shall be liable for any additional taxes, interest, interest       10,904       

penalty, or penalties imposed by this chapter if the tax           10,906       

commissioner determines that the single return does not reflect    10,907       

the correct tax due by nonresident pass-through entity investors   10,908       

                                                          248    

                                                                 
covered by that return.  Nothing in this division shall be         10,909       

construed to limit or alter the liability, if any, imposed on      10,910       

pass-through entity investors for unpaid or underpaid taxes,       10,911       

interest, interest penalty, or penalties as a result of the                     

pass-through entity's making the election provided for under       10,912       

division (D) of this section.  For the purposes of division (D)    10,915       

of this section, "correct tax due" means the tax that would have   10,916       

been paid by the pass-through entity had the single return been    10,917       

filed in a manner reflecting and including the findings and        10,918       

determinations made by the tax commissioner.  Nothing in division  10,920       

(D) of this section shall be construed to make or hold a           10,921       

pass-through entity liable for tax attributable to a pass-through  10,922       

entity investor's income from a source other than the              10,923       

pass-through entity electing to file the single return.            10,924       

      (E)  If a husband and wife file a joint federal income tax   10,926       

return for a taxable year, they shall file a joint return under    10,927       

this section for that taxable year, and their liabilities are      10,928       

joint and several, but, if the federal income tax liability of     10,929       

either spouse is determined on a separate federal income tax       10,930       

return, they shall file separate returns under this section.       10,931       

      If either spouse is not required to file a federal income    10,933       

tax return and either or both are required to file a return        10,934       

pursuant to this chapter, they may elect to file separate or       10,935       

joint returns, and, pursuant to that election, their liabilities   10,936       

are separate or joint and several.  If a husband and wife file     10,937       

separate returns pursuant to this chapter, each must claim the     10,938       

taxpayer's own exemption, but not both, as authorized under        10,939       

section 5747.02 of the Revised Code on the taxpayer's own return.  10,942       

      (F)  Each return or notice required to be filed under this   10,944       

section shall contain the signature of the taxpayer or the         10,946       

taxpayer's duly authorized agent and of the person who prepared    10,947       

the return for the taxpayer, and shall include the taxpayer's      10,948       

social security number.  Each return shall be verified by a        10,949       

declaration under the penalties of perjury.  The tax commissioner  10,950       

                                                          249    

                                                                 
shall prescribe the form that the signature and declaration shall  10,951       

take.                                                                           

      (G)  Each return or notice required to be filed under this   10,953       

section shall be made and filed as required by section 5747.04 of  10,954       

the Revised Code, on or before the fifteenth day of April of each  10,955       

year, on forms that the tax commissioner shall prescribe,          10,956       

together with remittance made payable to the treasurer of state    10,957       

in the combined amount of the state and all school district        10,958       

income taxes shown to be due on the form, unless the combined      10,959       

amount shown to be due is one dollar or less, in which case that   10,960       

amount need not be remitted.  Returns for taxable years for which  10,963       

a reduction in the tax due is made under division (B) of section   10,964       

5747.02 of the Revised Code shall include the following            10,966       

statement:  "The tax on this line reflects a.....% (here enter     10,967       

the percentage reduction described in division (B) of section      10,968       

5747.02 of the Revised Code) reduction under legislation enacted   10,970       

by the General Assembly requiring the return of excess state       10,973       

revenue to taxpayers."  The statement shall appear in boldface     10,974       

type and shall be placed in a prominent location on the return in  10,975       

the vicinity of the location where the amount of tax due, before   10,976       

any credits or amounts withheld, is entered.                       10,977       

      Upon good cause shown, the commissioner may extend the       10,979       

period for filing any notice or return required to be filed under  10,980       

this section and may adopt rules relating to extensions.  If the   10,981       

extension results in an extension of time for the payment of any   10,982       

state or school district income tax liability with respect to      10,983       

which the return is filed, the taxpayer shall pay at the time the  10,984       

tax liability is paid an amount of interest computed at the rate   10,985       

per annum prescribed by section 5703.47 of the Revised Code on     10,986       

that liability from the time that payment is due without           10,987       

extension to the time of actual payment.  In addition to all       10,988       

other interest charges and penalties, all taxes imposed by         10,989       

section 5747.02 of the Revised Code or under THIS CHAPTER OR       10,990       

Chapter 5748. of the Revised Code and remaining unpaid after they  10,993       

                                                          250    

                                                                 
become due, except combined amounts due of one dollar or less,     10,994       

bear interest at the rate per annum prescribed by section 5703.47  10,995       

of the Revised Code until paid or until the day an assessment is   10,996       

issued under section 5747.13 of the Revised Code, whichever                     

occurs first.  If the commissioner considers it necessary in       10,999       

order to ensure the payment of the tax imposed by section 5747.02  11,000       

of the Revised Code or any tax imposed under Chapter 5748. of the  11,001       

Revised Code, the commissioner may require returns and payments    11,002       

to be made otherwise than as provided in this section.             11,003       

      (H)  If any report, claim, statement, or other document      11,005       

required to be filed, or any payment required to be made, within   11,006       

a prescribed period or on or before a prescribed date under this   11,007       

chapter is delivered after that period or that date by United      11,008       

States mail to the agency, officer, or office with which the       11,009       

report, claim, statement, or other document is required to be      11,010       

filed, or to which the payment is required to be made, the date    11,011       

of the postmark stamped on the cover in which the report, claim,   11,012       

statement, or other document, or payment is mailed shall be        11,013       

deemed to be the date of delivery or the date of payment.          11,014       

      If a payment is required to be made by electronic funds      11,016       

transfer pursuant to section 5747.072 of the Revised Code, the     11,017       

payment is considered to be made when the payment is received by   11,018       

the treasurer of state or credited to an account designated by     11,019       

the treasurer of state for the receipt of tax payments.            11,020       

      "The date of the postmark" means, in the event there is      11,023       

more than one date on the cover, the earliest date imprinted on    11,024       

the cover by the United States postal service.                                  

      (I)  The amounts withheld by the employer pursuant to        11,026       

section 5747.06 of the Revised Code shall be allowed to the        11,027       

recipient of the compensation as credits against payment of the    11,028       

appropriate taxes imposed on the recipient by section 5747.02 and  11,030       

under Chapter 5748. of the Revised Code.                                        

      (J)  IF, IN ACCORDANCE WITH DIVISION (D) OF THIS SECTION, A  11,034       

PASS-THROUGH ENTITY ELECTS TO FILE A SINGLE RETURN AND IF ANY      11,035       

                                                          251    

                                                                 
INVESTOR IS REQUIRED TO FILE THE RETURN AND MAKE THE PAYMENT OF    11,036       

TAXES REQUIRED BY THIS CHAPTER ON ACCOUNT OF THE INVESTOR'S OTHER  11,037       

INCOME THAT IS NOT INCLUDED IN A SINGLE RETURN FILED BY A          11,038       

PASS-THROUGH ENTITY, THE INVESTOR IS ENTITLED TO A REFUNDABLE      11,039       

CREDIT EQUAL TO THE INVESTOR'S PROPORTIONATE SHARE OF THE TAX      11,040       

PAID BY THE PASS-THROUGH ENTITY ON BEHALF OF THE INVESTOR.  THE    11,041       

INVESTOR SHALL CLAIM THE CREDIT FOR THE INVESTOR'S TAXABLE YEAR    11,042       

IN WHICH OR WITH WHICH ENDS THE TAXABLE YEAR OF THE PASS-THROUGH   11,043       

ENTITY.  NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO ALLOW ANY   11,044       

CREDIT PROVIDED IN THIS CHAPTER TO BE CLAIMED MORE THAN ONCE.      11,045       

FOR THE PURPOSES OF COMPUTING ANY INTEREST, PENALTY, OR INTEREST   11,046       

PENALTY, THE INVESTOR SHALL BE DEEMED TO HAVE PAID THE REFUNDABLE  11,047       

CREDIT PROVIDED BY THIS DIVISION ON THE DAY THAT THE PASS-THROUGH  11,048       

ENTITY PAID THE ESTIMATED TAX OR THE TAX GIVING RISE TO THE        11,049       

CREDIT.                                                                         

      Sec. 5747.401.  (A)(1)  EXCEPT AS OTHERWISE PROVIDED IN      11,052       

DIVISION (B) OF THIS SECTION, FOR THE PURPOSES OF SECTIONS         11,054       

5733.40, 5733.401, 5733.402, 5733.41, AND 5747.40 TO 5747.457 OF   11,055       

THE REVISED CODE, THE INVESTORS IN AN INVESTMENT PASS-THROUGH      11,057       

ENTITY AS DEFINED IN SECTION 5733.401 OF THE REVISED CODE,         11,058       

HEREINAFTER THE "DEEMED INVESTORS," SHALL BE DEEMED TO BE          11,059       

INVESTORS IN ANY OTHER PASS-THROUGH ENTITY IN WHICH THE            11,060       

INVESTMENT PASS-THROUGH ENTITY IS A DIRECT INVESTOR WITHOUT        11,061       

REGARD TO SECTIONS 5733.057 OR 5747.231 OF THE REVISED CODE.       11,062       

EACH DEEMED INVESTOR'S PORTION OF SUCH OTHER PASS-THROUGH          11,063       

ENTITY'S ADJUSTED QUALIFYING AMOUNT SHALL BE THE ADJUSTED          11,064       

QUALIFYING AMOUNT THAT, WITHOUT REGARD TO THIS SECTION, PASSES     11,065       

THROUGH FROM SUCH OTHER PASS-THROUGH ENTITY TO THE INVESTMENT      11,066       

PASS-THROUGH ENTITY MULTIPLIED BY THE PERCENTAGE OF THE DEEMED     11,067       

INVESTOR'S DIRECT OWNERSHIP IN THE INVESTMENT PASS-THROUGH ENTITY  11,068       

WITHOUT REGARD TO SECTIONS 5733.057 OR 5747.231 OF THE REVISED     11,070       

CODE.                                                                           

      (2)  FOR THE PURPOSES OF SECTIONS 5733.40, 5733.401,         11,073       

5733.402, 5733.41, AND 5747.40 TO 5747.457 OF THE REVISED CODE,    11,074       

                                                          252    

                                                                 
THE INVESTMENT PASS-THROUGH ENTITY SHALL NOT BE DEEMED TO BE AN    11,075       

INVESTOR IN SUCH OTHER PASS-THROUGH ENTITY.                        11,076       

      (3)  IF THE TAXABLE YEAR OF THE INVESTMENT PASS-THROUGH      11,078       

ENTITY ENDS ON A DAY OTHER THAN THE LAST DAY OF SUCH OTHER         11,079       

PASS-THROUGH ENTITY'S TAXABLE YEAR, DIVISION (A)(1) OF THIS        11,081       

SECTION APPLIES TO THOSE PERSONS WHO ARE INVESTORS IN THE          11,082       

INVESTMENT PASS-THROUGH ENTITY ON THE LAST DAY OF SUCH OTHER       11,083       

PASS-THROUGH ENTITY'S TAXABLE YEAR ENDING WITHIN THE INVESTMENT    11,084       

PASS-THROUGH ENTITY'S TAXABLE YEAR.                                11,085       

      (B)  DIVISION (A) OF THIS SECTION APPLIES ONLY TO THE        11,089       

EXTENT TO WHICH THE INVESTMENT PASS-THROUGH ENTITY PROVIDES ON A   11,090       

TIMELY BASIS TO SUCH OTHER PASS-THROUGH ENTITY THE NAME, ADDRESS,  11,091       

AND SOCIAL SECURITY NUMBER OR FEDERAL IDENTIFICATION NUMBER FOR    11,092       

EACH DIRECT INVESTOR IN THE INVESTMENT PASS-THROUGH ENTITY         11,093       

WITHOUT REGARD TO SECTIONS 5733.057 AND 5747.231 OF THE REVISED    11,094       

CODE.  ONCE SUCH OTHER PASS-THROUGH ENTITY RECEIVES SUCH           11,095       

INFORMATION FROM THE INVESTMENT PASS-THROUGH ENTITY, DIVISION (A)  11,097       

OF THIS SECTION APPLIES FOR SUCH OTHER PASS-THROUGH ENTITY'S       11,098       

TAXABLE YEAR UNLESS THE TAX COMMISSIONER PERMITS THE INVESTMENT    11,099       

PASS-THROUGH ENTITY TO REVOKE THE NOTICE THAT THE INVESTMENT       11,100       

PASS-THROUGH ENTITY PREVIOUSLY PROVIDED TO SUCH OTHER              11,101       

PASS-THROUGH ENTITY.                                                            

      Sec. 5747.43.  (A)  As used in this section:                 11,110       

      (1)  "Estimated taxes" means the amount that a qualifying    11,113       

entity estimates to be the sum of its liability under sections     11,114       

5733.41 and 5747.41 of the Revised Code for its current            11,115       

qualifying taxable year.                                                        

      (2)  "Tax liability" means the total of the taxes and        11,118       

withholding taxes due under sections 5733.41 and 5747.41 of the    11,119       

Revised Code for the qualifying taxable year prior to applying     11,120       

any estimated tax payment or refund from another year.                          

      (3)  "Taxes paid" includes payments of estimated taxes made  11,122       

under division (C) of this section and tax refunds applied by the  11,123       

qualifying entity in payment of estimated taxes.                   11,124       

                                                          253    

                                                                 
      (B)  In addition to the return required to be filed          11,126       

pursuant to section 5747.42 of the Revised Code, each qualifying   11,127       

entity subject to the tax imposed under section 5733.41 and to     11,129       

the withholding tax imposed by section 5747.41 of the Revised                   

Code shall file an estimated tax return and pay a portion of the   11,130       

qualifying entity's tax liability for its qualifying taxable       11,131       

year.  The portion of those taxes required to be paid, and the     11,133       

last day prescribed for payment thereof, shall be as prescribed                 

by divisions (B)(1), (2), (3), and (4) of this section:            11,134       

      (1)  On or before the fifteenth day of the month following   11,136       

the last day of the first quarter of the qualifying entity's       11,137       

qualifying taxable year, twenty-two and one-half per cent of the   11,138       

qualifying entity's estimated tax liability for that taxable       11,139       

year;                                                                           

      (2)  On or before the fifteenth day of the month following   11,141       

the last day of the second quarter of the qualifying entity's      11,142       

qualifying taxable year, forty-five per cent of the qualifying     11,143       

entity's estimated tax liability for that taxable year;            11,144       

      (3)  On or before the fifteenth day of the month following   11,146       

the last day of the third quarter of the qualifying entity's       11,147       

qualifying taxable year, sixty-seven and one-half per cent of the  11,148       

qualifying entity's estimated tax liability for that taxable       11,149       

year;                                                                           

      (4)  On or before the fifteenth day of the month following   11,151       

the last day of the fourth quarter of the qualifying entity's      11,152       

qualifying taxable year, ninety per cent of the qualifying         11,153       

entity's estimated tax liability for that taxable year.                         

      Payments of estimated taxes shall be made payable to the     11,155       

treasurer of state.                                                             

      (C)  If a payment of estimated taxes is not paid in the      11,157       

full amount required under division (B) of this section, a         11,158       

penalty shall be added to the taxes charged for the qualifying     11,159       

taxable year unless the underpayment is due to reasonable cause    11,160       

as described in division (D) of this section.  The penalty shall   11,161       

                                                          254    

                                                                 
accrue at the rate per annum prescribed by section 5703.47 of the               

Revised Code upon the amount of underpayment from the day the      11,162       

estimated payment was required to be made to the day the payment   11,163       

is made.                                                                        

      The amount of the underpayment upon which the penalty shall  11,165       

accrue shall be determined as follows:                             11,166       

      (1)  For the first payment of estimated taxes each year,     11,168       

twenty-two and one-half per cent of the tax liability less the     11,169       

amount of taxes paid by the date prescribed for that payment;      11,170       

      (2)  For the second payment of estimated taxes each year,    11,172       

forty-five per cent of the tax liability less the amount of taxes  11,173       

paid by the date prescribed for that payment;                      11,174       

      (3)  For the third payment of estimated taxes each year,     11,176       

sixty-seven and one-half per cent of the tax liability less the    11,177       

amount of taxes paid by the date prescribed for that payment;      11,178       

      (4)  For the fourth payment of estimated taxes each year,    11,180       

ninety per cent of the tax liability less the amount of taxes      11,181       

paid by the date prescribed for that payment.                      11,182       

      For the purposes of this section, a payment of estimated     11,184       

taxes on or before any payment date shall be considered a payment  11,185       

of a previous underpayment only to the extent the payment of       11,186       

estimated taxes exceeds the amount of the payment presently        11,187       

required to be paid to avoid any penalty.                                       

      The penalty imposed under division (C) of this section is    11,189       

in lieu of any other interest charge or penalty imposed for        11,190       

failure to file a declaration of estimated tax report and make     11,191       

estimated payments as required by this section.                                 

      (D)  An underpayment of estimated taxes determined under     11,193       

division (C) of this section is due to reasonable cause if any of  11,194       

the following apply:                                                            

      (1)  The amount of tax that was paid equals at least ninety  11,196       

per cent of the tax liability for the current qualifying taxable   11,197       

year, determined by annualizing the income received during that    11,198       

year up to the end of the month immediately preceding the month    11,199       

                                                          255    

                                                                 
in which the payment is due;                                                    

      (2)  The amount of tax liability that was paid equals at     11,201       

least ninety per cent of the tax liability for the current         11,202       

qualifying taxable year;                                                        

      (3)  The amount of tax liability that was paid equals at     11,204       

least one hundred per cent of the tax liability shown on the       11,205       

return of the qualifying entity for the preceding qualifying       11,206       

taxable year, provided that the immediately preceding qualifying   11,207       

taxable year reflected a period of twelve months and the                        

qualifying entity filed a return under section 5747.42 of the      11,208       

Revised Code for that year.                                                     

      (E)(1)  DIVISIONS (B) AND (C) OF THIS SECTION DO NOT APPLY   11,213       

FOR A TAXABLE YEAR IF EITHER OF THE FOLLOWING APPLIES TO THE       11,214       

QUALIFYING ENTITY:                                                              

      (a)  FOR THE IMMEDIATELY PRECEDING TAXABLE YEAR, THE ENTITY  11,217       

COMPUTES IN GOOD FAITH AND IN A REASONABLE MANNER THAT THE SUM OF  11,218       

ITS ADJUSTED QUALIFYING AMOUNTS IS TEN THOUSAND DOLLARS OR LESS.   11,220       

      (b)  FOR THE TAXABLE YEAR THE ENTITY COMPUTES IN GOOD FAITH  11,223       

AND IN A REASONABLE MANNER THAT THE SUM OF ITS ADJUSTED            11,224       

QUALIFYING AMOUNTS IS TEN THOUSAND DOLLARS OR LESS.                11,225       

      (2)  NOTWITHSTANDING ANY OTHER PROVISION OF TITLE LVII OF    11,229       

THE REVISED CODE TO THE CONTRARY, THE ENTITY SHALL ESTABLISH BY A  11,230       

PREPONDERANCE OF THE EVIDENCE THAT ITS COMPUTATION OF THE          11,231       

ADJUSTED QUALIFYING AMOUNTS FOR THE IMMEDIATELY PRECEDING TAXABLE  11,232       

YEAR AND THE TAXABLE YEAR WAS, IN FACT, MADE IN GOOD FAITH AND IN  11,233       

A REASONABLE MANNER.                                               11,234       

      (F)  The tax commissioner may waive the requirement for      11,236       

filing a declaration of estimated taxes for any class of           11,238       

qualifying entities if the commissioner finds the waiver is        11,239       

reasonable and proper in view of administrative costs and other                 

factors.                                                           11,240       

      Sec. 5747.98.  (A)  To provide a uniform procedure for       11,249       

calculating the amount of tax due under section 5747.02 of the     11,250       

Revised Code, a taxpayer shall claim any credits to which the      11,251       

                                                          256    

                                                                 
taxpayer is entitled in the following order:                       11,253       

      (1)  The retirement income credit under division (B) of      11,255       

section 5747.055 of the Revised Code;                              11,256       

      (2)  The senior citizen credit under division (C) of         11,258       

section 5747.05 of the Revised Code;                               11,259       

      (3)  The lump sum distribution credit under division (D) of  11,261       

section 5747.05 of the Revised Code;                               11,262       

      (4)  The dependent care credit under section 5747.054 of     11,264       

the Revised Code;                                                  11,265       

      (5)  The lump sum retirement income credit under division    11,267       

(C) of section 5747.055 of the Revised Code;                       11,268       

      (6)  The lump sum retirement income credit under division    11,270       

(D) of section 5747.055 of the Revised Code;                       11,271       

      (7)  The lump sum retirement income credit under division    11,273       

(E) of section 5747.055 of the Revised Code;                       11,274       

      (8)  The credit for displaced workers who pay for job        11,276       

training under section 5747.27 of the Revised Code;                11,277       

      (9)  The campaign contribution credit under section 5747.29  11,279       

of the Revised Code;                                               11,280       

      (10)  The twenty-dollar personal exemption credit under      11,282       

section 5747.022 of the Revised Code;                              11,283       

      (11)  The joint filing credit under division (G) of section  11,286       

5747.05 of the Revised Code;                                                    

      (12)  The nonresident credit under division (A) of section   11,289       

5747.05 of the Revised Code;                                                    

      (13)  The credit for a resident's out-of-state income under  11,292       

division (B) of section 5747.05 of the Revised Code;                            

      (14)  The credit for employers that enter into agreements    11,295       

with child day-care centers under section 5747.34 of the Revised   11,296       

Code;                                                                           

      (15)  The credit for employers that reimburse employee       11,298       

child day-care expenses under section 5747.36 of the Revised       11,299       

Code;                                                                           

      (16)  The credit for manufacturing investments under         11,301       

                                                          257    

                                                                 
section 5747.051 of the Revised Code;                              11,302       

      (17)  The credit for purchases of new manufacturing          11,304       

machinery and equipment under section 5747.26 or section 5747.261  11,306       

of the Revised Code;                                                            

      (18)  The second credit for purchases of new manufacturing   11,309       

machinery and equipment under section 5747.31 of the Revised       11,310       

Code;                                                                           

      (19)  The enterprise zone credit under section 5709.66 of    11,312       

the Revised Code;                                                  11,313       

      (20)  The credit for the eligible costs associated with a    11,315       

voluntary action under section 5747.32 of the Revised Code;        11,317       

      (21)  The credit for employers that establish on-site child  11,320       

day-care centers under section 5747.35 of the Revised Code;        11,321       

      (22)  The credit for purchases of qualifying grape           11,323       

production property under section 5747.28 of the Revised Code;     11,324       

      (23)  The export sales credit under section 5747.057 of the  11,327       

Revised Code;                                                                   

      (24)  The credit for research and development and            11,329       

technology transfer investors under section 5747.33 of the         11,330       

Revised Code;                                                                   

      (25)  The enterprise zone credits under section 5709.65 of   11,333       

the Revised Code;                                                               

      (26)  The refundable jobs creation credit under section      11,336       

5747.058 of the Revised Code;                                                   

      (27)  The refundable credit for taxes paid by a qualifying   11,338       

entity granted under section 5747.059 of the Revised Code;         11,339       

      (28)  THE REFUNDABLE CREDITS FOR TAXES PAID BY A QUALIFYING  11,341       

PASS-THROUGH ENTITY GRANTED UNDER DIVISION (J) OF SECTION 5747.08  11,342       

OF THE REVISED CODE.                                                            

      (B)  For any credit except the refundable jobs creation      11,344       

credit and the refundable credit for taxes paid by a qualifying    11,345       

entity CREDITS ENUMERATED IN DIVISIONS (A)(26), (27), AND (28) OF  11,347       

THIS SECTION AND THE CREDIT GRANTED UNDER DIVISION (I) OF SECTION               

5747.08 OF THE REVISED CODE, the amount of the credit for a        11,348       

                                                          258    

                                                                 
taxable year shall not exceed the tax due after allowing for any   11,349       

other credit that precedes it in the order required under this     11,350       

section.  Any excess amount of a particular credit may be carried  11,351       

forward if authorized under the section creating that credit.      11,352       

NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO ALLOW A TAXPAYER TO  11,353       

CLAIM, DIRECTLY OR INDIRECTLY, A CREDIT MORE THAN ONCE FOR A       11,354       

TAXABLE YEAR.                                                                   

      Sec. 5907.15.  THERE IS HEREBY CREATED IN THE STATE          11,356       

TREASURY THE OHIO VETERANS HOME RENTAL AND SERVICE REVENUE FUND.   11,357       

REVENUE GENERATED FROM TEMPORARY USE AGREEMENTS OF THE HOME, FROM  11,359       

THE SALE OF MEALS AT THE HOME'S DINING HALLS, AND FROM RENTAL,     11,360       

LEASE, OR SHARING AGREEMENTS FOR THE USE OF FACILITIES, SUPPLIES,  11,361       

EQUIPMENT, UTILITIES, OR SERVICES PROVIDED BY THE HOME SHALL BE    11,362       

CREDITED TO THE FUND.  THE FUND SHALL BE USED ONLY FOR                          

MAINTENANCE COSTS OF THE HOME.                                     11,363       

      Section 2.  That existing sections 101.68, 126.14, 131.35,   11,366       

133.06, 325.19, 718.01, 3313.646, 3313.841, 3313.842, 3313.975,    11,367       

3313.98, 3314.02, 3314.03, 3314.06, 3314.07, 3314.08, 3317.01,     11,368       

3317.013, 3317.02, 3317.021, 3317.022, 3317.023, 3317.024,         11,370       

3317.029, 3317.0212, 3317.0213, 3317.0214, 3317.0215, 3317.0216,                

3317.03, 3317.05, 3317.051, 3317.06, 3317.082, 3317.10, 3317.11,   11,371       

3317.161, 3317.19, 3318.06, 3318.08, 3318.10, 3319.22, 3323.091,   11,372       

3323.12, 3734.57, 3734.82, 4123.40, 4701.10, 4701.20, 4743.05,     11,373       

4745.01, 5101.93, 5104.32, 5104.34, 5104.35, 5104.38, 5711.22,     11,374       

5733.04, 5733.05, 5733.057, 5733.0611, 5733.12, 5733.40, 5733.98,  11,375       

5747.01, 5747.08, 5747.43, and 5747.98, and section 5747.452 of    11,377       

the Revised Code are hereby repealed.  Existing Section 50.11 of   11,379       

Am. Sub. H.B. 215 of the 122nd General Assembly, as most recently  11,380       

amended by Am. Sub. H.B. 650 of the 122nd General Assembly, is     11,381       

hereby repealed.                                                                

      Section 3.  That Sections 20.05, 47.13, 50.52, 50.52.2,      11,383       

50.52.4, 50.52.7, 50.52.9, 58, 62.01, 67.08, 101, 119, 190, and    11,384       

210 of Am. Sub. H.B. 215 of the 122nd General Assembly be amended  11,385       

to read as follows:                                                             

                                                          259    

                                                                 
      "Sec. 20.05.  Transfers to Central Service Agency Fund       11,387       

      The Director of Budget and Management may transfer up to     11,389       

$1,500,000 in fiscal year 1998 and up to $500,000 in fiscal year   11,390       

1999 from the Occupational Licensing and Regulatory Fund (Fund     11,391       

4K9) to the Central Service Agency Fund (Fund 115).  The cash      11,392       

transferred shall be used to purchase the necessary equipment,     11,393       

products, and services to install a local area network for the     11,394       

professional licensing boards, to migrate their licensing          11,395       

applications to this network, and to provide for the ongoing       11,396       

operations of the network in fiscal year 1998 and fiscal year      11,397       

1999.  Appropriation authority equal to the cash transfer is       11,398       

hereby appropriated to line item 100-632, Central Service Agency.  11,400       

      The Director of Budget and Management may transfer up to     11,402       

$150,000 in fiscal year 1998 AND UP TO $150,000 IN FISCAL YEAR     11,403       

1999 from the Occupational Licensing and Regulatory Fund (Fund     11,405       

4K9) to the Central Service Agency Fund (Fund 115).  The cash      11,406       

shall be utilized as necessary to subsidize the operations of the  11,407       

Central Service Agency during the process of transition due to     11,408       

the Medical Board and the Pharmacy Board no longer using Central   11,409       

Service Agency services.                                                        

      The Director of Budget and Management shall transfer up to   11,411       

$20,000 in fiscal year 1998 from the Occupational Licensing and    11,412       

Regulatory Fund (Fund 4K9) to the Central Service Agency Fund      11,413       

(Fund 115).  The Office of Budget and Management shall conduct,    11,414       

or contract for the conduct of, a study examining the feasibility  11,416       

of consolidating the administrative process of licensing and       11,417       

regulating barbers and cosmetologists while respecting the         11,418       

separate identities of the two professions.  Appropriation                      

authority equal to the cash transfer is hereby appropriated to     11,420       

line item 100-632, Central Service Agency.                                      

      Sec. 47.13.  Minority Business Bonding Fund                  11,422       

      Notwithstanding Chapters 122., 169., and 175. of the         11,424       

Revised Code and other provisions of this act AM. SUB. H.B. 215    11,426       

OF THE 122nd GENERAL ASSEMBLY, the Director of Development may,    11,428       

                                                          260    

                                                                 
upon the recommendation of the Minority Development Financing      11,429       

Advisory Board, pledge up to $10,000,000 in this biennium of       11,430       

unclaimed funds administered by the Director of Commerce and       11,431       

allocated to the Minority Business Bonding Program pursuant to     11,432       

section 169.05 of the Revised Code.  The transfer of any cash by   11,433       

the Director of Commerce from the Department of Commerce's         11,434       

Unclaimed Funds Fund (Fund 543) to the Department of               11,435       

Development's Minority Business Bonding Fund (Fund 449) shall      11,436       

occur, if requested by the Director of Development, only if such   11,437       

funds are needed for payment of losses arising from the Minority   11,438       

Business Bonding Program, and only after the $2,700,000            11,439       

transferred to the Minority Business Bonding Fund by the           11,440       

Controlling Board in 1983 has been used for that purpose.  Moneys  11,441       

transferred by the Director of Commerce for this purpose may be    11,442       

moneys in custodial funds held by the Treasurer of State.  If      11,443       

expenditures are required for payment of losses arising from the   11,444       

Minority Business Bonding Program, such expenditures shall be      11,445       

made from appropriation item 195-623, Minority Business Bonding    11,446       

Contingency in the Minority Business Bonding Fund, and such        11,447       

amounts are hereby appropriated.                                   11,448       

      Minority Business Bonding Program Administration             11,450       

      Investment earnings of the Minority Business Bonding Fund    11,452       

(Fund 449), shall be credited to Minority Business Bonding         11,453       

Program Administration Fund (Fund 450).                            11,454       

      Ohio Minority Development Financing Advisory Board           11,456       

      The foregoing appropriation item 195-411, Minority           11,458       

Development Financing Advisory Board, shall be used to pay         11,459       

operating costs associated with the Minority Development           11,460       

Financing Advisory Board.                                          11,461       

      Minority Business Enterprise Loan                            11,463       

      Of the foregoing appropriation item 195-646, Minority        11,465       

Business Enterprise Loan (Fund 4W1), not less than $500,000 in     11,467       

each fiscal year shall be used to fund the Ohio Mini-Loan                       

Guarantee Program to make loan guarantees to small businesses in   11,468       

                                                          261    

                                                                 
an amount not to exceed fifty per cent of the total capital cost   11,469       

of the project being assisted.  In each fiscal year, no more than  11,470       

$400,000 shall be used to pay up to 50 per cent of the operating   11,471       

costs of the Minority Development Financing Advisory Board.        11,472       

      In fiscal year 1998 DURING THE 1997-1999 BIENNIUM, the       11,474       

Director of Development shall use $250,000 from appropriation      11,476       

item 195-646, Minority Business Enterprise Loan, to study          11,477       

minority businesses to identify current minority business needs    11,478       

and to determine how to improve Department of Development          11,479       

services for minority businesses that would promote economic       11,480       

development throughout the state.                                               

      All loan repayments from the Minority Development Financing  11,482       

Advisory Board loan program and the Ohio Mini-Loan Guarantee       11,483       

Program shall be deposited in the State Treasury, to the credit    11,484       

of the Minority Enterprise Loan Fund (Fund 4W1).                   11,485       

      Sec. 50.52.  Community Schools                               11,487       

      The foregoing appropriation item 200-455, Community          11,489       

Schools, shall be paid to the Lucas County Educational Service     11,490       

Center for the Superintendent to use in awarding planning and      11,491       

start-up grants pursuant to this section.  Of the foregoing        11,492       

appropriation item 200-455, Community Schools, $150,000 in each    11,493       

fiscal year may be retained by the Lucas County Educational                     

Service Center to pay for additional services and                  11,494       

responsibilities under this act AM. SUB. H.B. 215 OF THE 122nd     11,496       

GENERAL ASSEMBLY, subject to the reporting of actual expenses      11,497       

incurred to the Department of Education.                           11,498       

      From the money received each year from appropriation item    11,500       

200-455, Community Schools, the Superintendent of the Lucas        11,502       

County Educational Service Center shall make grants to community   11,503       

schools.  The Superintendent shall make a grant of up to $50,000   11,504       

to a proposing group with a preliminary agreement obtained under   11,505       

division (B)(4)(2) of Subsection 4 of this section in order to     11,506       

defray planning and initial start-up costs.  In the first year of  11,507       

operation of a community school, the Superintendent shall make a   11,508       

                                                          262    

                                                                 
grant of no more than $100,000 to the governing authority of the   11,509       

school to partially defray additional start-up costs.  The amount  11,510       

of the grant shall be based on a thorough examination of the       11,511       

needs of the community school.  The Superintendent shall not                    

utilize money received under this section for any other purpose    11,512       

other than those specified under this section.                     11,513       

      The governing authority of a community school established    11,516       

pursuant to this section and the Governing Board of the Lucas      11,517       

County Educational Service Center may enter into an agreement,     11,518       

through the adoption of identical resolutions, under which the     11,519       

Service Center Board will provide services to the community        11,520       

school.  Services provided under the agreement and the amount and  11,521       

manner in which the community school board will pay for such       11,522       

services shall be mutually agreed to by the school's governing     11,523       

board and the Service Center Board and shall be specified in the   11,524       

service agreement.  No agreement may extend beyond June 30, 2003.  11,525       

      The immediately following sections of law, designated as     11,527       

Subsections 1 through 13, are (a) integral parts of this section   11,528       

and (b) a discrete phase of this act AM. SUB. H.B. 215 OF THE      11,530       

122nd GENERAL ASSEMBLY.  Within the scope of this section, the     11,532       

subsections are cited and referred to by only their subsection     11,533       

numbers.  For any other purposes, however, the subsections may be  11,534       

cited and referred to by stating, first, the number of this                     

section and, then, following a decimal point, the number of the    11,535       

subsection.  For example, if this section were numbered "37.05,"   11,536       

Subsection 5 of this section would be cited and referred to in     11,537       

the form, "Section 37.05.5 of this act AM. SUB. H.B. 215 OF THE    11,539       

122nd GENERAL ASSEMBLY."                                           11,540       

      Sec. 50.52.2.  (A)  As used in this section:                 11,542       

      (1)  "Lucas County area" includes the entire territory of    11,545       

any school district having the majority of its territory in Lucas  11,546       

County.                                                                         

      (2)  "Start-up school" means a community school other than   11,548       

one created by converting all or part of an existing public        11,549       

                                                          263    

                                                                 
school, as designated in the school's contract pursuant to         11,550       

division (P) of Subsection 5 of this section.                                   

      (B)  The General Assembly finds that the establishment of    11,552       

independent community schools throughout the state has potential   11,553       

desirable effects, including providing parents a choice of         11,554       

academic environments for their children and providing the         11,555       

education community with the opportunity to establish limited      11,556       

experimental educational programs in a deregulated setting.        11,557       

However, the potential effects of a statewide system of community  11,559       

schools could also generate some adverse results.  Therefore, the  11,560       

General Assembly finds it advisable to establish a pilot project   11,561       

in the Lucas County area which will permit the operation of        11,562       

community schools in a limited area of the state in order to       11,563       

provide for the evaluation and measurement of the effects of       11,564       

these schools.                                                                  

      No more than twenty start-up school contracts may be in      11,567       

effect at any time under this section.  The Superintendent of the  11,569       

Lucas County Educational Service Center shall be responsible for   11,570       

ensuring that the twenty start-up schools represent diverse                     

educational missions, are intended to serve a number of different  11,572       

grade levels, and will appeal to students with a variety of        11,573       

interests or characteristics in order to provide for a range of    11,574       

educational experiments within the pilot project schools.  Upon    11,575       

entering into a preliminary agreement pursuant to Subsection 4 of  11,576       

this section, the potential sponsor of a community school shall    11,577       

file a copy of the preliminary agreement with the Superintendent   11,578       

of the Lucas County Educational Service Center.  Within            11,579       

twenty-four hours of receipt of the preliminary agreement for a    11,580       

start-up school, the Superintendent shall determine whether the    11,581       

proposed school will add to the diversity of the pilot project     11,582       

schools through offering a unique educational mission, serving     11,583       

grade levels of students or students with certain characteristics  11,584       

or interests not yet being served by other community schools, or   11,585       

offering innovative instructional methods.  If the school will     11,586       

                                                          264    

                                                                 
not add to the diversity of the pilot project schools and would    11,587       

be overserving students of a certain type or grade level, the      11,588       

Superintendent may reject the school's preliminary agreement and   11,589       

shall immediately notify the sponsor and the proposing group or    11,590       

individual.  Upon entering into a community school contract, the   11,592       

sponsor shall file a copy of the approved contract with that       11,593       

Superintendent.  Within twenty-four hours of the filing of the     11,594       

contract, the Superintendent shall notify the sponsor whether      11,595       

twenty start-up school contracts were already in effect at the     11,596       

time of the filing.  If twenty such contracts were in effect, the  11,597       

contract filed by the sponsor shall be voided.                     11,598       

      Within twenty-four hours of a request of any person, the     11,600       

Superintendent shall indicate the number of preliminary            11,601       

agreements for start-up schools currently outstanding and the      11,602       

number of contracts currently in effect.                           11,603       

      (C)  No start-up or converted community school shall begin   11,605       

operation under this section after June 30, 2000.                  11,607       

      (D)  Within ninety days of the effective date of this        11,609       

section NOT LATER THAN SEPTEMBER 28, 1997, the Director of the     11,610       

Legislative Office of Education Oversight, in consultation with    11,611       

the Superintendent of the Lucas County Educational Service         11,612       

Center, a classroom teacher appointed by the board of the Ohio     11,613       

Education Association, a classroom teacher appointed by the board  11,614       

of the Ohio Federation of Teachers, and a classroom teacher who    11,615       

is a member of neither of these organizations selected by that     11,616       

Superintendent, shall develop a study design for the evaluation    11,617       

of the pilot project schools and the overall effects of the        11,618       

community school pilot project.  The study design shall include    11,619       

the criteria that the Office will use to determine the positive    11,620       

and negative effects of the project overall, and the success or    11,621       

failure of individual community schools.  The design shall         11,622       

include a description of the data that must be collected by the    11,623       

Superintendent and by each community school and sponsor and a      11,624       

timeline for the collection of the data.  THE DIRECTOR SHALL                    

                                                          265    

                                                                 
ADAPT THE STUDY DESIGN PREPARED UNDER THIS SUBSECTION FOR USE IN   11,625       

EVALUATING COMMUNITY SCHOOLS ESTABLISHED UNDER CHAPTER 3314. OF    11,626       

THE REVISED CODE, AS WELL AS THE LUCAS COUNTY PILOT PROJECT        11,627       

COMMUNITY SCHOOLS.  THE OFFICE SHALL NOTIFY EACH COMMUNITY SCHOOL  11,628       

OF THE DATA THAT MUST BE COLLECTED AND THE TIMELINE FOR            11,629       

COLLECTION OF THE DATA.  Data shall be collected at regular        11,630       

intervals, but no evaluation of the results of data collected      11,631       

shall be made by the Office prior to June 2001.  A preliminary     11,632       

report, together with any recommendations to improve the project   11,633       

COMMUNITY SCHOOLS, shall be issued to the Speaker of the House of  11,634       

Representatives and the President of the Senate by June 30, 2001.  11,635       

A final report, with recommendations as to the future of           11,636       

community schools in Ohio, shall be made to the Speaker and        11,637       

President by June 1, 2003.                                                      

      Sec. 50.52.4.  (A)  As used in this section, "sponsor"       11,640       

means a school district located in the Lucas County area, the      11,641       

Lucas County Educational Service Center, or the University of      11,642       

Toledo College of Education BOARD OF TRUSTEES OR ITS DESIGNEE      11,643       

with which the governing authority of a proposed community school  11,644       

enters into a contract pursuant to this subsection.                11,645       

      (B)(1)  Any individual or group of individuals may propose   11,647       

the establishment of a community school to the board of education  11,648       

of the Lucas County area city, local, or exempted village school   11,649       

district in which the community school is proposed to be located.  11,651       

If such city, local, or exempted village board wishes to sponsor   11,652       

the school, the board and the proposing individual or group shall  11,653       

sign a preliminary agreement pursuant to division (B)(4) of this   11,654       

subsection and the board shall enter into negotiations for the     11,655       

contract required by division (C) of this subsection.              11,656       

      If such city, local, or exempted village board does not      11,658       

enter into a preliminary agreement within thirty calendar days of  11,659       

the date on which the initial proposal was made to it by the       11,660       

proposing individual or group, or if the board directly notifies   11,661       

the proposing individual or group at any time that it does not     11,662       

                                                          266    

                                                                 
wish to sponsor the community school, the individual or group may  11,663       

instead propose the establishment of a community school to either  11,664       

ANY of the following public entities:                              11,665       

      (a)  THE BOARD OF EDUCATION OF ANY LUCAS COUNTY AREA CITY,   11,668       

LOCAL, OR EXEMPTED VILLAGE SCHOOL DISTRICT IN WHICH THE COMMUNITY               

SCHOOL IS PROPOSED TO BE LOCATED, OR, IF THE PROPOSED COMMUNITY    11,670       

SCHOOL WOULD UTILIZE A FACILITY LOCATED OUTSIDE THE LUCAS COUNTY   11,673       

AREA BUT WITHIN A COUNTY CONTIGUOUS TO LUCAS COUNTY AS PERMITTED   11,675       

IN SUBSECTION 7 OF THIS SECTION, TO THE BOARD OF EDUCATION OF ANY  11,676       

LUCAS COUNTY AREA CITY, LOCAL, OR EXEMPTED VILLAGE SCHOOL          11,679       

DISTRICT;                                                          11,680       

      (b)  The Governing Board of the Lucas County Educational     11,682       

Service Center;                                                    11,683       

      (b)(c)  The governing A SPONSORING authority DESIGNATED BY   11,686       

THE BOARD OF TRUSTEES of the University of Toledo College of       11,688       

Education OR THE BOARD ITSELF.                                                  

      Such BOARD OF EDUCATION, governing board, or SPONSORING      11,691       

authority may enter into a preliminary agreement pursuant to       11,692       

division (B)(4)(2) of this subsection with the proposing person    11,695       

or group AND ENTER INTO NEGOTIATIONS FOR THE CONTRACT REQUIRED BY  11,696       

DIVISION (C) OF THIS SUBSECTION.                                                

      ANY PUBLIC ENTITY TO WHICH AN INDIVIDUAL OR A GROUP OF       11,698       

INDIVIDUALS PROPOSES THE ESTABLISHMENT OF A COMMUNITY SCHOOL       11,699       

PURSUANT TO THIS SECTION SHALL NOTIFY THAT INDIVIDUAL OR GROUP OF  11,700       

INDIVIDUALS WITHIN THIRTY CALENDAR DAYS AFTER THE INDIVIDUAL OR    11,701       

GROUP OF INDIVIDUALS HAS DELIVERED ITS PROPOSAL OF THE ENTITY'S                 

DECISION WHETHER OR NOT TO ENTER INTO A PRELIMINARY AGREEMENT TO   11,703       

ESTABLISH THE PROPOSED COMMUNITY SCHOOL.                                        

      (2)  An employee or group of employees of the Lucas County   11,705       

Educational Service Center may propose the establishment of a      11,706       

community school to the Governing Board of the Center.  If the     11,707       

Board wishes to sponsor the school, the Board and any proposing    11,708       

employees shall sign a preliminary agreement pursuant to division  11,710       

(B)(4) of this subsection and the Board shall enter into                        

                                                          267    

                                                                 
negotiations for the contract required by division (C) of this     11,711       

subsection.                                                        11,712       

      (3)  An employee or group of employees of the University of  11,714       

Toledo College of Education may propose the establishment of a     11,716       

community school to the governing authority of the College.  If    11,717       

the authority wishes to sponsor the school, the authority and any  11,718       

proposing employees shall sign a preliminary agreement pursuant    11,719       

to division (B)(4) of this subsection and the authority shall      11,720       

enter into negotiations for the contract required by division (C)  11,721       

of this subsection.                                                             

      (4)  A preliminary agreement indicates the intention of a    11,723       

public entity described in this subsection to sponsor the          11,725       

community school.  Unless the Superintendent of the Lucas County   11,726       

Educational Service Center rejects the preliminary agreement       11,727       

pursuant to Subsection 2 of this section, a proposing individual   11,728       

or group that has such a preliminary agreement may proceed to      11,729       

finalize plans for the school, establish a governing authority     11,730       

for the school, and negotiate a contract with the public entity.   11,731       

Provided the proposing individual or group adheres to the          11,732       

preliminary agreement and all provisions of this section, the      11,733       

public entity shall negotiate in good faith to enter into a        11,734       

contract in accordance with division (C) of this subsection.       11,735       

      (5)(3)  At any time after the expiration of a                11,737       

sixty-calendar-day period following the signing of a preliminary   11,739       

agreement by a city, local, or exempted village board AN ENTITY    11,740       

and a proposing individual or group, the proposing individual or   11,742       

group may cancel the preliminary agreement and may instead         11,743       

propose the establishment of the school to the Lucas County        11,744       

Educational Service Center or the University of Toledo College of  11,745       

Education ANOTHER ENTITY unless one of the following occurs:       11,747       

      (a)  The school district board ENTITY and the governing      11,749       

authority of the proposed community school mutually agree to and   11,751       

sign a contract meeting the requirements of Subsection 5 of this   11,752       

section;                                                                        

                                                          268    

                                                                 
      (b)  The school district board ENTITY and the individual or  11,754       

group proposing the school mutually agree to extend the period     11,756       

for negotiation of a contract meeting the requirements of          11,757       

Subsection 5 of this section.                                      11,758       

      (C)  A majority vote of the appropriate public entity and a  11,761       

majority vote of the members of the governing authority of a       11,762       

community school shall be required to adopt a contract and         11,763       

establish the community school.  Except as limited in Subsection   11,764       

2 of this section, an unlimited number of community schools may    11,765       

be established in any one school district provided that a          11,766       

contract is entered into for each community school pursuant to     11,767       

this section.                                                                   

      (D)  Prior to entering into a contract under this section,   11,769       

a potential sponsor shall determine whether the proposed           11,770       

community school consists of a facility and governing board that   11,771       

is substantially the same as the facility and governing board of   11,772       

a nonpublic school in existence on January 1, 1997.  If the        11,773       

potential sponsor determines the facility and board to be          11,774       

substantially the same, it shall not enter into a contract with    11,775       

the governing authority of the school.  Upon request of a          11,776       

potential sponsor, the Office of the Secretary of State shall      11,777       

provide any records filed with that office that are relevant to a  11,778       

determination under this subsection.  The Secretary of State may   11,780       

charge the potential sponsor a reasonable fee for any information  11,781       

provided under this division.                                      11,782       

      Sec. 50.52.7.  Any facility used for a community school      11,784       

shall meet all health and safety standards established by law for  11,786       

school buildings.                                                               

      In the case where a community school is proposed to be       11,788       

located in a facility owned by a school district or the Lucas      11,789       

County Educational Service Center, the facility may not be used    11,790       

for such community school unless the district or service center    11,791       

board owning the facility enters into an agreement to lease the    11,792       

facility to the governing authority of the community school.       11,793       

                                                          269    

                                                                 
Such lease may be under any terms and conditions agreed to by the  11,794       

district or service center board and the school.                   11,795       

      A COMMUNITY SCHOOL OPERATED PURSUANT TO THIS SECTION MAY     11,797       

UTILIZE ANY FACILITY LOCATED ANYWHERE WITHIN THE LUCAS COUNTY      11,800       

AREA AS DEFINED IN THIS SECTION OR ANYWHERE WITHIN ANY COUNTY      11,801       

CONTIGUOUS TO LUCAS COUNTY.                                        11,803       

      Sec. 50.52.9.  (A)  The expiration of the contract for a     11,805       

community school between a sponsor and a school shall be the date  11,807       

provided in the contract.  A successor contract may be entered     11,808       

into unless the contract is terminated or not renewed pursuant to               

this subsection.  However, no contract shall extend beyond June    11,809       

30, 2003.                                                                       

      (B)(1)  A sponsor may choose not to renew a contract at its  11,811       

expiration or may choose to terminate a contract prior to its      11,812       

expiration for any of the following reasons:                       11,813       

      (a)  Failure to meet student performance requirements        11,816       

stated in the contract;                                                         

      (b)  Failure to meet generally accepted standards of fiscal  11,818       

management;                                                        11,819       

      (c)  Violation of any provision of the contract or           11,822       

applicable state or federal law;                                                

      (d)  Other good cause.                                       11,824       

      A termination shall be effective only at the conclusion of   11,826       

the instructional year.                                            11,827       

      (2)  At least sixty ONE HUNDRED EIGHTY days prior to the     11,829       

termination or nonrenewal of a contract, the sponsor shall notify  11,831       

the school of the proposed action in writing.  The notice shall    11,832       

include the reasons for the proposed action in detail and that     11,833       

the school may, within fourteen days of receiving the notice,      11,834       

request an informal hearing before the sponsor.  Such request      11,835       

must be in writing.                                                11,836       

      (3)  A decision by a sponsoring board of education or the    11,838       

University of Toledo College of Education to terminate a           11,839       

community school contract may be appealed to the Superintendent    11,840       

                                                          270    

                                                                 
of the Lucas County Educational Service Center.  A decision by     11,841       

the Lucas County Educational Service Center to terminate a         11,842       

contract of a school it sponsors may be appealed to the State                   

Board of Education.  The decision by the Superintendent or the     11,844       

State Board, as applicable, pertaining to an appeal under this     11,845       

division is final.                                                              

      (C)  A child attending a community school whose contract     11,847       

has been terminated or nonrenewed or that closes for any reason    11,849       

shall be admitted to the schools of the district in which the      11,850       

child is entitled to attend under section 3313.64 or 3313.65 of    11,851       

the Revised Code.  Any deadlines established for the purpose of    11,852       

admitting students under section 3313.97 or 3313.98 of the         11,853       

Revised Code shall be waived for students to whom this division    11,854       

pertains.                                                                       

      (D)  Notwithstanding anything to the contrary in section     11,856       

2744.02 of the Revised Code, a sponsor of a community school and   11,857       

the officers, directors, or employees of such a sponsor are not    11,858       

liable in damages in a tort or other civil action for harm         11,859       

allegedly arising from either of the following:                                 

      (1)  A failure of the community school or any of its         11,861       

officers, directors, or employees to perform any statutory or      11,862       

common law duty or responsibility or any other legal obligation;   11,863       

      (2)  An action or omission of the community school or any    11,865       

of its officers, directors, or employees that results in harm.     11,866       

      (E)  As used in this subsection:                             11,868       

      (1)  "Harm" means injury, death, or loss to person or        11,870       

property.                                                                       

      (2)  "Tort action" means a civil action for damages for      11,872       

injury, death, or loss to person or property other than a civil    11,873       

action for damages for a breach of contract or another agreement   11,874       

between persons.                                                                

      Sec. 58.  EPA  ENVIRONMENTAL PROTECTION AGENCY               11,876       

General Revenue Fund                                               11,878       

GRF 716-321 Central                                                11,881       

                                                          271    

                                                                 
            Administration        $    3,688,765 $    3,780,221    11,883       

                                                      3,865,221    11,884       

GRF 717-321 Water Quality                                          11,886       

            Planning and                                                        

            Assessment            $    7,783,614 $    8,133,514    11,888       

                                       7,748,614                   11,889       

GRF 718-321 Ground Water          $    1,035,597 $    1,098,797    11,893       

GRF 719-321 Air Pollution Control $    2,608,893 $    2,673,946    11,897       

GRF 721-321 Public Water System                                    11,899       

            Supervision           $    2,857,608 $    2,939,948    11,901       

GRF 724-321 Pollution Prevention  $      630,799 $      630,799    11,905       

GRF 725-321 Laboratory            $    1,116,505 $    1,145,330    11,909       

GRF 726-321 Corrective Actions    $      304,462 $      281,279    11,913       

GRF 715-501 Local Air Pollution                                    11,915       

            Control               $    1,398,489 $    1,437,647    11,917       

GRF 715-503 Science Advisory                                       11,919       

            Program               $      500,000 $      500,000    11,921       

                                         450,000                   11,922       

GRF 715-504 Special Sanitary                                       11,924       

            District Distress                                                   

            Fund                  $    3,000,000 $            0    11,926       

TOTAL GRF General Revenue Fund    $   24,924,732 $   22,621,481    11,929       

                                      24,839,732     22,706,481    11,930       

General Services Fund Group                                        11,933       

199 715-602 Laboratory Services   $      700,000 $      700,000    11,938       

4A1 715-640 Sale of Goods and                                      11,940       

            Services              $    3,148,826 $    3,148,680    11,942       

491 715-665 MOVING EXPENSES       $            0 $    1,358,168    11,946       

TOTAL GSF General Services                                         11,947       

   Fund Group                     $    3,848,826 $    3,848,680    11,950       

                                                      5,206,848    11,951       

Federal Special Revenue Fund Group                                 11,954       

3F2 715-630 State Revolving Loan                                   11,957       

            Fund - Operating                                                    

                                                          272    

                                                                 
            Expenses              $    3,733,024 $    3,821,161    11,959       

3F3 715-632 PCB Toxics            $    3,584,637 $    3,571,485    11,963       

3F4 715-633 Water Quality                                          11,965       

            Management            $      934,238 $      624,238    11,967       

3F5 715-641 Nonpoint Source                                        11,969       

            Pollution Management  $    4,339,154 $    4,197,440    11,971       

3J1 715-620 Urban Stormwater      $      461,309 $      589,109    11,975       

3J5 715-615 Maumee River          $    1,183,511 $      600,734    11,979       

3K2 715-628 Clean Water Act 106   $    2,535,049 $    2,784,249    11,983       

3K3 715-637 DOE Agreement in                                       11,985       

            Principle             $    1,932,687 $    1,988,973    11,987       

3K4 715-634 DOD Base                                               11,989       

            Realignment/Closure                                                 

            Grant                 $      861,500 $      861,500    11,991       

3K6 715-639 Remedial Action Plan  $      510,493 $      723,887    11,995       

3M5 715-652 Haz Mat Transport                                      11,997       

            Uniform Safety        $      268,745 $      276,707    11,999       

3N1 715-655 Pollution Prevention                                   12,001       

            Grants                $       90,000 $       90,000    12,003       

3N4 715-657 DOE Cost Recovery                                      12,005       

            Grants                $    3,098,920 $    3,137,675    12,007       

352 715-611 Wastewater Pollution  $      349,132 $      395,000    12,011       

353 715-612 Public Water Supply   $    2,308,500 $    2,308,500    12,015       

354 715-614 Hazardous Waste                                        12,017       

            Management            $    4,678,123 $    4,678,123    12,019       

356 715-616 Indirect Costs        $    3,600,000 $    3,600,000    12,023       

357 715-619 Air Pollution Control $    3,074,005 $    2,876,047    12,027       

362 715-605 Underground Injection                                  12,029       

            Control               $      119,000 $      119,000    12,031       

TOTAL FED Federal Special Revenue                                  12,032       

   Fund Group                     $   37,662,027 $   37,243,828    12,035       

State Special Revenue Fund Group                                   12,038       

4C3 715-647 Central Support                                        12,041       

            Indirect              $    7,254,006 $    7,437,442    12,043       

                                                          273    

                                                                 
4D7 715-603 Natural Resources                                      12,045       

            Damage Assessment     $       86,610 $       86,610    12,047       

4G3 715-618 Jennison Wright                                        12,049       

            Cleanup               $      140,352 $      140,352    12,051       

4J0 715-638 Underground Injection                                  12,053       

            Control               $      321,139 $      329,488    12,055       

4K2 715-648 Clean Air             $    1,863,000 $    1,863,000    12,059       

4K3 715-649 Solid Waste           $    9,960,931 $    9,037,732    12,063       

4K4 715-650 Surface Water                                          12,065       

            Protection            $    6,985,194 $    6,985,194    12,067       

4K5 715-651 Drinking Water                                         12,069       

            Protection            $    4,799,522 $    3,945,546    12,071       

4P5 715-654 Cozart Landfill       $      130,000 $      130,000    12,075       

4R5 715-656 Scrap Tire Management $    4,255,459 $    4,243,359    12,079       

4R9 715-658 Voluntary Action                                       12,081       

            Program               $    1,345,567 $    1,269,754    12,083       

4T3 715-659 Title V Permit                                         12,085       

            Program               $   11,000,000 $   10,900,000    12,087       

4U7 715-660 Construction &                                         12,089       

            Demolition Debris     $      300,160 $      300,160    12,091       

4V8 715-663 Microdot Settlement   $       40,000 $            0    12,095       

500 715-608 Immediate Removal                                      12,097       

            Special Account       $      591,800 $      599,639    12,099       

503 715-621 Hazardous Waste                                        12,101       

            Facility Management   $    7,580,537 $    7,901,421    12,103       

503 715-661 Hazardous Waste                                        12,105       

            Facility Cleanup      $    3,123,667 $    3,173,266    12,107       

503 715-662 Hazardous Waste                                        12,109       

            Facility Board        $      796,573 $      810,122    12,111       

505 715-623 Hazardous Waste                                        12,113       

            Clean-up              $   18,444,873 $   17,852,771    12,115       

6A1 715-645 Environmental                                          12,117       

            Education             $    2,119,976 $    2,125,114    12,119       

602 715-626 Motor Vehicle                                          12,121       

                                                          274    

                                                                 
            Inspection and                                                      

            Maintenance           $    2,301,013 $    2,390,569    12,123       

644 715-631 ER Radiological                                        12,125       

            Safety                $      198,095 $      190,451    12,127       

660 715-629 Infectious Wastes                                      12,129       

            Management            $      179,630 $      120,480    12,131       

678 715-635 Air Toxic Release     $      272,236 $      290,016    12,135       

679 715-636 Emergency Planning    $    1,799,000 $    1,849,372    12,139       

676 715-642 Water Pollution                                        12,141       

            Control Loan                                                        

            Administration        $            0 $    1,060,000    12,143       

696 715-643 Air Pollution Control                                  12,145       

            Administration        $      740,000 $      750,000    12,147       

699 715-644 Water Pollution                                        12,149       

            Control                                                             

            Administration        $      500,000 $      500,000    12,151       

TOTAL SSR State Special Revenue                                    12,152       

   Fund Group                     $   87,129,340 $   86,281,858    12,155       

TOTAL ALL BUDGET FUND GROUPS      $  153,564,925 $  149,995,847    12,158       

                                     153,479,925    151,439,015    12,159       

      Cash Transfer from Hazardous Waste Funds to Solid Waste      12,162       

Fund                                                                            

      Notwithstanding any other provision of law to the contrary,  12,164       

the Director of Budget and Management shall transfer $882,619      12,165       

cash from Fund 503, Hazardous Waste Facility Management and        12,166       

$882,619 from Fund 505, Hazardous Waste Clean-up, to Fund 4K3,     12,168       

Solid Waste.                                                                    

      Special Sanitary District Distress Fund                      12,170       

      Of the foregoing appropriation item, GRF 715-504, Special    12,172       

Sanitary District Distress Fund, $3,000,000 in fiscal year 1998    12,173       

shall be used exclusively to abate or correct unsanitary           12,174       

conditions in a special sanitary district created under section    12,175       

1541.21 of the Revised Code concerning which the Director of       12,176       

Environmental Protection has issued proposed Administrative        12,177       

                                                          275    

                                                                 
Orders prior to April 1994, but has not issued Final               12,178       

Administrative Orders.  The Special Sanitary District Distress     12,179       

Fund shall be abolished on June 30, 1999, or whenever the balance  12,181       

in the fund is $0, whichever occurs earlier.                                    

      Area-Wide Planning Agencies                                  12,183       

      Of the foregoing appropriation item, GRF 717-321, Water      12,185       

Quality Planning and Assessment, $450,000 in fiscal year 1998 and  12,186       

$450,000 in fiscal year 1999 shall be divided evenly between the   12,187       

following six area-wide planning agencies: Eastgate Development    12,188       

and Transportation Agency, Toledo Metropolitan Area Council of     12,189       

Governments, Northeast Ohio Four County Regional Planning and      12,190       

Development Organization, Northeast Ohio Areawide Coordinating     12,191       

Agency, Ohio-Kentucky-Indiana Regional Council of Governments,     12,192       

and Miami Valley Regional Planning Commission.                     12,193       

      Hazardous Waste Study Committee                              12,195       

      The Director of Environmental Protection shall review the    12,197       

funding needs and program activities of the Division of Hazardous  12,199       

Waste Management and the Division of Emergency and Remedial        12,200       

Response and present that information to an advisory committee     12,201       

established by the Director.  The committee shall be composed of   12,202       

three representatives of the Environmental Protection Agency, two  12,203       

representatives of permitted hazardous waste facilities, two       12,204       

representatives of industry involved in emergency and remedial     12,205       

response, and two representatives of state-wide environmental      12,206       

advocacy organizations.  The committee shall make recommendations  12,207       

to the Director regarding funding needs and program activities.    12,208       

The Director shall report the committee's recommendations to the   12,209       

Speaker of the House of Representatives and the President of the   12,210       

Senate not later than October 1, 1998.                             12,211       

      Scrap Tire Program                                           12,213       

      Of the foregoing appropriation item Fund 4R5, 715-656 Scrap  12,215       

Tire Management, $400,000 in fiscal year 1998 and $400,000 in      12,216       

fiscal year 1999 shall be used to fund a tire development and      12,217       

reprocessing project.                                              12,218       

                                                          276    

                                                                 
      Harrison County Garage Environmental Assessment              12,220       

      Of the foregoing appropriation item GRF 726-321, Corrective  12,223       

Actions, $30,000 in fiscal year 1998 shall be used to fund the     12,224       

Harrison County Garage environmental assessment.                                

      MOVING EXPENSES                                              12,226       

      THERE IS HEREBY CREATED IN THE STATE TREASURY THE MOVING     12,229       

EXPENSES FUND.  THE FUND SHALL CONSIST OF CASH BALANCES                         

TRANSFERRED FROM EXISTING FUNDS NOT ALREADY OBLIGATED TO PAY       12,230       

EXISTING OBLIGATIONS.  THE FUND SHALL BE USED TO PAY THE MOVING    12,231       

EXPENSES OF THE ENVIRONMENTAL PROTECTION AGENCY INTO NEW           12,232       

FACILITIES.                                                        12,233       

      NOTWITHSTANDING ANY PROVISION OF THE LAW TO THE CONTRARY,    12,235       

THE DIRECTOR OF ENVIRONMENTAL PROTECTION, WITH THE APPROVAL OF     12,237       

THE DIRECTOR OF BUDGET AND MANAGEMENT, MAY TRANSFER CASH BALANCES  12,238       

NOT ALREADY OBLIGATED TO OTHER OBLIGATIONS INTO THE MOVING         12,239       

EXPENSES FUND.                                                                  

      Sec. 62.01.  Child and Family Health Services                12,241       

      Of the foregoing appropriation item 440-416, Child and       12,243       

Family Health Services, $1,300,000 in each fiscal year shall be    12,244       

used for family planning services.  None of the funds received     12,246       

through these family planning grants shall be used to provide      12,248       

abortion services.  None of the funds received through these                    

family planning grants shall be used for referrals for abortion,   12,249       

except in the case of a medical emergency.  These funds shall be   12,250       

distributed on the basis of the relative need in the community     12,251       

served by the Director of Health to family planning programs,      12,252       

which shall include family planning programs funded under Title V  12,253       

of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A.     12,255       

301, as amended, and Title X of the "Public Health Services Act,"  12,256       

58 Stat. 682 (1946), 42 U.S.C.A. 201, as amended, as well as to    12,257       

other family planning programs which the Department of Health      12,258       

also determines will provide services that do not include                       

referrals for abortion, other than in the case of medical          12,259       

emergency, with state funds, but that otherwise substantially      12,260       

                                                          277    

                                                                 
comply with the quality standards for such programs under Title V  12,261       

and Title X.                                                                    

      The Director of Health shall, by regulation, provide         12,263       

reasonable methods by which a grantee wishing to be eligible for   12,264       

federal funding may comply with these requirements for state       12,265       

funding without losing its eligibility for federal funding.        12,266       

      Of the foregoing appropriation item 440-416, Child and       12,268       

Family Health Services, $25,000 in fiscal year 1998 shall be used  12,269       

by the Preble County Commission to conduct a study to determine    12,270       

if a Wellness Center should be established in Preble County.  Any  12,271       

unused funds shall be credited to appropriation item 440-416,      12,272       

Child and Family Health Services.                                  12,273       

      Of the foregoing appropriation item 440-416, Child and       12,275       

Family Health Services, $47,000 in fiscal year 1998 shall be used  12,276       

by the Monroe County Health Planning Council.                      12,277       

      Of the foregoing appropriation item 440-416, Child and       12,279       

Family Health Services, $150,000 in each fiscal year shall be      12,280       

used to provide malpractice insurance for physicians and other     12,282       

health professionals providing prenatal services in programs       12,283       

funded by the Ohio Department of Health.                           12,284       

      Of the foregoing appropriation item 440-416, Child and       12,286       

Family Health Services, $650,000 in each fiscal year shall be      12,288       

used for the Help Me Grow program.                                              

      Of the foregoing appropriation item 440-416, Child and       12,290       

Family Health Services, $200,000 shall be used in each fiscal      12,292       

year for the OPTIONS dental care access program.                   12,293       

      Of the foregoing appropriation item 440-416, Child and       12,295       

Family Health Services, $25,000 shall be used by the Carroll       12,296       

County Health Department.                                                       

      Of the foregoing appropriation item 440-416, Child and       12,298       

Family Health Services, $50,000 in each fiscal year shall be used  12,300       

by the Cuyahoga County Health Department for the development of a  12,301       

Pulmonary Hemosiderosis Prevention Program.                                     

      Prevention                                                   12,303       

                                                          278    

                                                                 
      Of the foregoing appropriation item 440-451, Prevention,     12,305       

$100,000 shall be used in each fiscal year for rape prevention     12,307       

programs.                                                                       

      Of the foregoing appropriation item 440-451, Prevention,     12,309       

$54,500 in fiscal year 1998 and $49,820 in fiscal year 1999 shall  12,311       

be used by the Miami Valley Youth Health Improvement Coalition to  12,312       

prevent youths from cigarette or marijuana use and from alcohol    12,313       

consumption. These funds shall be made available for use in the    12,314       

following counties: Champaign, Clark, Darke, Greene, Miami,        12,315       

Montgomery, Preble, and Shelby.                                                 

      Hemophilia AIDS Prevention                                   12,317       

      Of the foregoing appropriation, 440-406, Hemophilia          12,319       

Services, $235,000 in fiscal year 1998 and $245,000 in fiscal      12,320       

year 1999 shall be used by the Ohio Department of Health to        12,321       

provide grants to the nine hemophilia treatment centers to         12,322       

provide prevention services for persons with hemophilia and their  12,323       

family members affected by AIDS and other bloodborne pathogens.    12,324       

      HIV/AIDS Prevention/Protease Inhibitors                      12,326       

      Of the foregoing appropriation item 440-444, AIDS            12,328       

Prevention/AZT, $3.0 million in fiscal year 1998 and $3.9 million  12,329       

in fiscal year 1999 shall be used to assist persons with HIV/AIDS  12,331       

in acquiring protease inhibitor drugs.                                          

      Hemophilia Insurance Pilot Project                           12,333       

      Of the foregoing appropriation item 440-406, Hemophilia      12,335       

Services, $205,000 in each fiscal year shall be used to implement  12,336       

the Hemophilia Insurance Pilot Project.                            12,337       

      Maternal Child Health Block Grant                            12,339       

      Of the foregoing appropriation item 440-601, Maternal Child  12,341       

Health Block Grant (Fund 320), $2,091,299 shall be used in each    12,342       

fiscal year for the purposes of abstinence-only education.  The    12,343       

Director of Health shall develop guidelines for the establishment  12,344       

of abstinence programs for teenagers with the purpose of                        

decreasing unplanned pregnancies and abortion.  Such guidelines    12,345       

shall be pursuant to Title V of the "Social Security Act," 42      12,346       

                                                          279    

                                                                 
U.S.C.A. 510 and shall include, but are not limited to,            12,347       

advertising campaigns and direct training in schools and other     12,348       

locations.                                                                      

      Medically Handicapped Children Audit                         12,350       

      The Medically Handicapped Children Audit Fund (Fund 477)     12,352       

shall receive revenue from audits of hospitals and recoveries      12,353       

from third-party payors.  Funds may be expended for payment of     12,354       

audit settlements and for costs directly related to obtaining      12,355       

recoveries from third-party payors and for encouraging Program     12,356       

for Medically Handicapped Children recipients to apply for         12,357       

third-party benefits.  Funds also may be expended for payments     12,358       

for diagnostic and treatment services on behalf of medically       12,359       

handicapped children, as defined in division (A) of section        12,360       

3701.022 of the Revised Code, Ohio residents who are twenty-one    12,361       

or more years of age and who are suffering from cystic fibrosis.   12,362       

      Medically Handicapped Children - County Assessments          12,365       

      The foregoing appropriation item, 440-607, Medically         12,367       

Handicapped Children - County Assessments, shall be used to make   12,368       

payments pursuant to division (E) of section 3701.023 of the       12,369       

Revised Code.                                                      12,370       

      Sickle Cell Fund                                             12,372       

      The foregoing State Special Revenue Fund Group               12,374       

appropriation item 440-610, Sickle Cell Disease Control (Fund      12,375       

4F9), shall be used by the Department of Health to administer      12,376       

programs authorized by section 3701.131 of the Revised Code.  The  12,377       

source of the funds is as specified in section 3701.23 of the      12,378       

Revised Code.                                                      12,379       

      Cancer Registry System                                       12,381       

      The foregoing appropriation item 440-412, Cancer Incidence   12,383       

Surveillance System, shall be used to establish and maintain a     12,384       

cancer registry system within the Department of Health pursuant    12,385       

to sections 3701.261 to 3701.263 of the Revised Code.  In each     12,386       

fiscal year of the biennium, $50,000 of line item 440-412 shall                 

be used as an operating subsidy for the Cleveland Cancer Data      12,387       

                                                          280    

                                                                 
Systems.                                                                        

      Genetics Services                                            12,389       

      The foregoing State Special Revenue Fund Group               12,391       

appropriation item 440-608, Genetics Services (Fund 4D6), shall    12,392       

be used by the Department of Health to administer programs         12,393       

authorized by sections 3701.501 and 3701.502 of the Revised Code.  12,394       

      Sudden Infant Death Syndrome                                 12,396       

      A portion of the foregoing appropriation item 440-601,       12,398       

Maternal and Child Health Block Grant (Fund 320), shall be used    12,399       

to ensure that current information on sudden infant death          12,400       

syndrome is available for distribution by local health districts.  12,401       

      Poison Control Network                                       12,403       

      Of the foregoing appropriation, 440-504, Poison Control      12,405       

Network, all available funds in each fiscal year shall be used by  12,406       

the Ohio Department of Health for grants to the consolidated Ohio  12,407       

Poison Control Center to provide poison control services to Ohio   12,409       

citizens.                                                                       

      Of the foregoing appropriation item 440-504, Poison Control  12,412       

Network, $250,000 in fiscal year 1998 and $250,000 in fiscal year  12,413       

1999 shall be used to consolidate the poison control centers in    12,414       

Ohio in a single location in Hamilton County.                                   

      Tuberculosis                                                 12,416       

      The foregoing appropriation item 440-506, Tuberculosis,      12,418       

shall be used to make payments to counties pursuant to section     12,419       

339.43 of the Revised Code.                                                     

      Child and Family Health Services ISTV                        12,421       

      The Director of Budget and Management shall transfer cash    12,423       

from Fund 3P8, Disproportionate Share, to the Department of        12,424       

Health Fund 5E1, Health Services, in an amount of $14,800,000.     12,425       

This amount shall be used for the following purposes: $4,900,000   12,426       

shall be used in fiscal years 1998 and 1999 for rabies             12,427       

prevention; $1,000,000 in each fiscal year shall be disbursed to   12,428       

the local Child and Family Health Services Clinics to provide      12,430       

services to uninsured low-income persons; $1,500,000 in each       12,431       

                                                          281    

                                                                 
fiscal year to Federally Qualified Health Centers and federally    12,432       

designated look-alikes to provide services to uninsured            12,433       

low-income persons; $1,000,000 in each fiscal year shall be used   12,434       

for the diagnosis and treatment of sexually transmitted diseases;  12,435       

and $700,000 in each fiscal year for family planning services.     12,437       

None of the funds received through family planning grants under    12,438       

appropriation item 440-624, Health Services (Fund 5E1), shall be                

used to provide abortion services.  None of the funds received     12,439       

through family planning grants under appropriation item 440-624,   12,440       

Health Services (Fund 5E1), shall be used for referrals for        12,441       

abortion, except in the case of a medical emergency.  These funds  12,442       

shall be distributed on the basis of the relative need in the      12,444       

community served by the Director of Health to family planning                   

programs, which shall include family planning programs funded      12,445       

under Title V of the "Social Security Act," 49 Stat. 620 (1935),   12,446       

42 U.S.C.A. 301, as amended, and Title X of the "Public Health     12,447       

Services Act," 58 Stat. 682 (1946), 42 U.S.C.A. 201, as amended,   12,448       

as well as to other family planning programs which the Department  12,449       

of Health also determines will provide services that do not        12,450       

include referrals for abortion, other than in the case of medical  12,451       

emergency, with state funds, but that otherwise substantially      12,452       

comply with the quality standards for such programs under Title V  12,453       

and Title X.                                                                    

      The Director of Health shall, by regulation, provide         12,455       

reasonable methods by which a grantee wishing to be eligible for   12,456       

federal funding may comply with these requirements for state       12,457       

funding without losing its eligibility for federal funding.  The   12,458       

Director of Health shall adopt rules for the use of these funds    12,459       

by September 30, 1997.                                                          

      The Director of Health shall require recipients of these     12,461       

funds to acknowledge that Fund 5E1, Health Services, does not      12,462       

have a revenue source beyond this biennium and that there is no    12,463       

assurance that funding for these initiatives will continue in the  12,465       

next biennium.                                                                  

                                                          282    

                                                                 
      Public Health                                                12,467       

      Of the foregoing appropriation item 440-624, Health          12,469       

Services, $500,000 in fiscal year 1998 and $1,000,000 in fiscal    12,470       

year 1999 shall be transferred to the Ohio State University        12,471       

College of Medicine and Public Health.  The funds shall support    12,472       

the development of statewide public health initiatives that are    12,473       

consistent with the "Ohio Public Health Plan:  Strategies to       12,474       

Implement the Five Point Plan," including the development of data  12,476       

collection mechanisms and data processes to track and evaluate     12,477       

public health programs and outcomes.  The College of Medicine and  12,478       

Public Health shall work in collaboration with the Department of   12,479       

Health and the local departments of health to provide              12,480       

consultative program development and design services in health     12,481       

behavior, health promotion, epidemiology, biometrics, health       12,482       

services and management, and environmental health sciences.        12,483       

Measurable outcome-based initiatives shall be developed in a       12,484       

minimum of the following areas:  childhood immunizations;          12,485       

emerging infectious diseases; women's health issues; the           12,486       

prevention of teenage pregnancy; improved outcomes of pregnancy;   12,487       

and the value of nutritional education and dietary modification    12,488       

as a strategy for the prevention of heart disease and cancer.      12,489       

      The Director of Health shall require The Ohio State          12,491       

University College of Medicine and Public Health to acknowledge    12,492       

that Fund 5E1, Health Services, does not have a revenue source     12,493       

beyond this biennium and that there is no assurance that funding   12,494       

for these initiatives will continue in the next biennium.          12,495       

      AIDS Drug Reimbursement Program                              12,497       

      Of the foregoing appropriation item 440-444, AIDS            12,499       

Prevention/AZT, $124,500 in fiscal years 1998 and 1999 shall be    12,500       

used for the AIDS Drug Reimbursement Program and section 3701.241  12,502       

of the Revised Code and Title XXVI of the "Public Health Services  12,503       

Act," 104 Stat. 576 (1990), 42 U.S.C.A. 2601, as amended.  The     12,504       

Department of Health is authorized to promulgate rules pursuant    12,505       

to section 111.15 and Chapter 119. of the Revised Code as          12,506       

                                                          283    

                                                                 
necessary for the administration of the program.                   12,507       

      Ohio Early Start Program                                     12,509       

      The foregoing appropriation item 440-459, Ohio Early Start,  12,511       

shall be used to provide services to children under age three who  12,512       

are at risk of developmental delay or child abuse and neglect.     12,513       

Funds shall be allocated with the approval of the Family and       12,514       

Children First Cabinet Council and pursuant to rules adopted in    12,515       

accordance with Chapter 119. of the Revised Code.                               

      Ohio Health Care Data System                                 12,517       

      Of the foregoing appropriation item, 440-413, Ohio Health    12,519       

Care Data System, the Director of Health may distribute up to      12,521       

$450,000 in each fiscal year to the Ohio Corporation for Health    12,522       

Information to expand the electronic data interchange effort and   12,523       

for special projects.                                                           

      Transfer of Laboratory Services                              12,525       

      The Director of Health shall contract with The Ohio State    12,528       

University to perform the state laboratory testing, analytical     12,529       

duties and any other related functions currently performed by the  12,530       

Bureau of Laboratories at the Department of Health.                12,531       

      Osteoporosis Awareness Program                               12,533       

      Grants from pharmaceutical companies, and others, that are   12,535       

credited to appropriation item 440-609, Non-Governmental Revenue   12,536       

(Fund 4L3), for the purpose of osteoporosis awareness and          12,537       

appropriations in line item 440-402, Osteoporosis Awareness, are   12,538       

to be used by the Office of Women's Health Initiatives to          12,539       

implement an Osteoporosis Awareness Program.                                    

      CENTRAL SUPPORT INDIRECT FUND CASH TRANSFER                  12,544       

      ON OR BEFORE JUNE 30, 1998, AT THE REQUEST OF THE DIRECTOR   12,547       

OF HEALTH, THE DIRECTOR OF BUDGET AND MANAGEMENT MAY TRANSFER      12,549       

CASH IN AN AMOUNT UP TO $600,000 FROM THE CENTRAL SUPPORT          12,550       

INDIRECT FUND (FUND 211) TO THE LAB HANDLING FEE FUND (FUND 473)   12,552       

AND INCREASE APPROPRIATION ITEM 440-622, LAB HANDLING FEE, BY AN   12,553       

EQUIVALENT AMOUNT.                                                              

      CERTIFICATE OF NEED FUND USES                                12,556       

                                                          284    

                                                                 
      IN ADDITION TO USES CITED IN DIVISION (B) OF SECTION         12,558       

3702.52 OF THE REVISED CODE, IN FISCAL YEAR 1999 THE DIRECTOR OF   12,559       

HEALTH MAY USE THE CERTIFICATE OF NEED FUND (FUND 471) TO          12,560       

ADMINISTER SECTIONS 3702.11 TO 3702.20 AND 3702.30 OF THE REVISED  12,561       

CODE.                                                                           

      Sec. 67.08.  Study on Transfer of Assets and the Medicaid    12,565       

Estate Recovery Program                                            12,566       

      The Department of Human Services shall conduct a study, or   12,568       

contract for a study to be conducted, for the purpose of           12,569       

determining the extent to which applicants for nursing home        12,570       

services paid for through the Medicaid program are transferring    12,571       

their assets for less than fair market value as a means of         12,572       

avoiding depletion of their assets for their own support prior to  12,574       

becoming eligible for Medicaid.  The study shall include an                     

analysis of the Medicaid estate recovery program, including a      12,575       

compilation of data regarding the follwing FOLLOWING:  the         12,576       

frequency of homestead property being available for recovery, the  12,577       

amount spent on the estate recovery program in comparison to the   12,578       

amount actually recovered, and the experience of other states in   12,580       

operating Medicaid estate recovery programs.  The study shall      12,581       

include any recommendations for legislative changes that would     12,582       

either deter the occurrence of pre-eligibility asset transfers or  12,583       

enhance the efficacy of the Department's Medicaid estate recovery  12,584       

program.  Results of the study shall be filed by January 1, 1999,  12,585       

with the Governor, the Speaker of the House of Representatives,    12,586       

and the President of the Senate.                                   12,587       

      FUNDING FOR THE EARLY START WELCOME VISITS PROGRAM           12,591       

      IN FISCAL YEAR 1999, UPON THE REQUEST OF THE DIRECTOR OF     12,594       

HUMAN SERVICES, THE CONTROLLING BOARD MAY TRANSFER UP TO $4        12,595       

MILLION IN STATE SHARE GENERAL REVENUE FUND APPROPRIATIONS FROM    12,596       

THE DEPARTMENT OF HUMAN SERVICES TO THE DEPARTMENT OF HEALTH       12,597       

APPROPRIATION ITEM 440-459, OHIO EARLY START, TO PROVIDE           12,598       

FINANCIAL SUPPORT FOR THE EARLY START WELCOME VISITS PROGRAM.      12,601       

THE DIRECTOR OF BUDGET AND MANAGEMENT MAY REDUCE THE APPROPRIATE   12,602       

                                                          285    

                                                                 
LINE ITEM IN THE DEPARTMENT OF HUMAN SERVICES' BUDGET BY THE       12,603       

AMOUNT OF CORRESPONDING FEDERAL MATCHING FUNDS.                    12,604       

      Sec. 101.  RSC  REHABILITATION SERVICES COMMISSION           12,606       

General Revenue Fund                                               12,608       

GRF 415-100 Personal Services     $    6,974,196 $    7,147,615    12,613       

GRF 415-401 Personal Care                                          12,615       

            Assistance            $      778,680 $      778,680    12,617       

GRF 415-402 Independent Living                                     12,619       

            Council               $      270,600 $      396,218    12,621       

GRF 415-403 Mental Health                                          12,623       

            Services              $      750,000 $      750,000    12,625       

GRF 415-404 MR/DD Services        $    1,286,281 $    1,318,438    12,628       

GRF 415-405 Vocational                                             12,630       

            Rehabilitation/Human                                                

            Services              $      561,450 $      561,450    12,632       

GRF 415-431 Office for People                                      12,634       

            with Head Injury      $      192,672 $      195,452    12,636       

GRF 415-506 Case Services for                                      12,638       

            People with                                                         

            Disabilities          $   10,865,916 $   11,227,308    12,640       

GRF 415-508 Services for People                                    12,642       

            who are Deaf          $       48,854 $       48,854    12,644       

GRF 415-509 Services for People                                    12,646       

            who are Elderly       $      365,567 $      375,803    12,648       

GRF 415-520 Independent Living                                     12,650       

            Centers or Services   $       58,948 $       60,716    12,652       

TOTAL GRF General Revenue Fund    $   22,153,164 $   22,860,534    12,655       

General Services Fund Group                                        12,657       

4W5 415-606 Indirect Costs        $   15,629,694 $   16,307,149    12,662       

467 415-609 Stand Concessions     $    1,571,770 $    1,629,834    12,666       

TOTAL GSF General Services                                         12,667       

   Fund Group                     $   17,201,464 $   17,936,983    12,670       

Federal Special Revenue Fund Group                                 12,672       

317 415-620 Disability                                             12,675       

                                                          286    

                                                                 
            Determination         $   59,462,014 $   61,382,614    12,677       

3L1 415-601 Social Security                                        12,679       

            Personal Care                                                       

            Assistance            $    3,027,000 $    3,027,000    12,681       

3L1 415-605 Social Security                                        12,683       

            Community Centers for                                               

            People who are Deaf   $    1,100,000 $    1,100,000    12,685       

3L1 415-607 Social Security                                        12,687       

            Administration Cost   $      123,292 $      125,823    12,689       

3L1 415-608 Social Security                                        12,691       

            Special                                                             

            Programs/Assistance   $    1,330,981 $    1,343,818    12,693       

3L1 415-610 Social Security                                        12,695       

            Vocational                                                          

            Rehabilitation        $    1,302,000 $    1,302,000    12,697       

3L1 415-614 Social Security                                        12,699       

            Independent Living    $      285,979 $      285,979    12,701       

3L4 415-611 Federal-Independent                                    12,703       

            Living Council        $      185,400 $      190,962    12,705       

3L4 415-612 Federal-Independent                                    12,707       

            Living Centers or                                                   

            Services              $      530,532 $      546,444    12,709       

3L4 415-615 Federal - Supported                                    12,711       

            Employment            $    2,064,125 $    2,110,656    12,713       

3L4 415-617 Federal Special                                        12,715       

            Vocational                                                          

            Rehabilitation                                                      

            Programs              $      494,453 $      499,177    12,717       

379 415-616 Federal-Vocational                                     12,719       

            Rehabilitation        $  105,202,487 $  110,562,781    12,721       

TOTAL FED Federal Special                                          12,722       

   Revenue Fund Group             $175,108,263   $182,477,254      12,725       

State Special Revenue Fund Group                                   12,727       

4L1 415-619 Services for                                           12,729       

                                                          287    

                                                                 
            Rehabilitation        $    1,800,000 $    1,800,000    12,731       

468 415-618 Third Party Funding   $    6,138,409 $    6,191,365    12,735       

TOTAL SSR State Special                                            12,736       

   Revenue Fund Group             $    7,938,409 $    7,991,365    12,739       

TOTAL ALL BUDGET FUND GROUPS      $  222,401,300 $  231,266,136    12,742       

      Stand Concessions Fund--Crediting of Income                  12,745       

      In crediting interest and other income earned on moneys      12,747       

deposited in the Stand Concessions Fund (Fund 467), the Treasurer  12,748       

of State and Director of Budget and Management shall ensure that   12,749       

the requirements of section 3304.35 of the Revised Code are met.   12,750       

      Personal Care Assistance                                     12,752       

      The foregoing appropriation item 415-401, Personal Care      12,754       

Assistance, shall be used in addition to the federal Social        12,755       

Security reimbursement funds used to provide personal care         12,756       

assistance services.  These funds shall not be used in lieu of     12,757       

the Social Security reimbursement funds.                           12,758       

      MR/DD Services                                               12,760       

      The foregoing appropriation item 415-404, MR/DD Services,    12,762       

shall be used as state matching funds to provide vocational        12,763       

rehabilitation services to mutually eligible clients between the   12,764       

Rehabilitation Services Commission and the Ohio Department of      12,765       

Mental Retardation and Developmental Disabilities.  The            12,766       

Rehabilitation Services Commission shall report to the Ohio        12,767       

Department of Mental Retardation and Developmental Disabilities,   12,768       

as outlined in an interagency agreement, on the number and status  12,770       

of mutually eligible clients and the status of the funds and       12,771       

expenditures for these clients.                                                 

      Vocational Rehabilitation/Human Services                     12,773       

      The foregoing appropriation item 415-405, Vocational         12,775       

Rehabilitation/Human Services, shall be used as state matching     12,776       

funds to provide vocational rehabilitation services to mutually    12,777       

eligible clients between the Rehabilitation Services Commission    12,778       

and the Ohio Department of Human Services.  The Rehabilitation     12,779       

Services Commission shall report to the Ohio Department of Human   12,780       

                                                          288    

                                                                 
Services, as outlined in an interagency agreement, on the number                

and status of mutually eligible clients and the status of the      12,781       

funds and expenditures for these clients.                          12,782       

      Office for People with Head Injury                           12,784       

      Of the foregoing appropriation item 415-431, Office for      12,786       

People with Head Injury, $100,000 in each fiscal year 1999 shall   12,787       

be used for the state match for a federal grant awarded through    12,789       

P.L. 104-166, The Traumatic Brain Injury Act.  The remaining       12,790       

appropriations in this item shall be used to plan and coordinate                

head injury-related services provided by state agencies and other  12,792       

government or private entities, to assess the needs for such       12,793       

services and to set priorities in this area.                       12,794       

      Services for People who are Deaf                             12,796       

      The foregoing appropriation item 415-508, Services for       12,798       

People who are Deaf, shall be used to supplement the federal       12,799       

Social Security reimbursement funds used to provide grants to      12,800       

community centers for the deaf.  These funds shall not be used in  12,801       

lieu of Social Security reimbursement funds.                       12,802       

      Services for People who are Elderly                          12,804       

      The foregoing appropriation item 415-509, Services for       12,806       

People who are Elderly, shall be used as matching funds for        12,807       

vocational rehabilitation services for eligible elderly citizens   12,808       

with a disability.                                                 12,809       

      Social Security Reimbursement Funds                          12,811       

      Reimbursement funds received from the Social Security        12,813       

Administration, U.S. Department of Health and Human Services, for  12,814       

the costs of providing services and training to return disability  12,815       

recipients to gainful employment, shall be used in the Social      12,816       

Security Reimbursement Fund (Fund 3L1), as follows:                12,818       

      (A)  Appropriation item 415-601, Social Security Personal    12,820       

Care Assistance, to provide personal care services in accordance   12,822       

with section 3304.41 of the Revised Code.                                       

      (B)  Appropriation item 415-605, Social Security Community   12,824       

Centers for People who are Deaf, to provide grants to community    12,826       

                                                          289    

                                                                 
centers for the deaf in Ohio for services to individuals with      12,827       

hearing impairments.                                                            

      (C)  Appropriation item 415-607, Social Security             12,829       

Administrative Cost, to provide administrative services needed to  12,831       

administer the Social Security reimbursement program.              12,832       

      (D)  Appropriation item 415-610, Social Security Vocational  12,834       

Rehabilitation, to provide vocational rehabilitation services to   12,836       

individuals with severe disabilities to achieve a noncompetitive   12,837       

employment goal such as homemaker.                                              

      (E)  The foregoing appropriation item 415-614, Social        12,839       

Security Independent Living, to cover projected shortfall in       12,840       

federal funding for fiscal years 1998 and 1999.                    12,841       

      (F)  Appropriation item 415-608, Social Security Special     12,843       

Programs/Assistance, to provide vocational rehabilitation          12,844       

services to individuals with severe disabilities, who are Social   12,845       

Security beneficiaries, to achieve competitive employment.  This   12,846       

item also includes funds to assist the Personal Care Assistance,   12,847       

Community Centers for the Deaf, and Independent Living programs                 

to pay their share of indirect costs as mandated by federal OMB    12,848       

Circular A-87.                                                     12,849       

      Indirect Costs                                               12,851       

      The foregoing appropriation item 415-606, Indirect Costs,    12,854       

shall be used to support the administrative functions of the       12,855       

commission related to the provision of vocational rehabilitation,  12,856       

disability determination services, and ancillary programs.                      

      Independent Living Council                                   12,858       

      The foregoing appropriation items 415-402, Independent       12,860       

Living Council, and 415-611, Federal-Independent Living Council,   12,861       

shall be used to fund the operations of the State Independent      12,862       

Living Council.                                                                 

      Mental Health Services                                       12,864       

      The foregoing appropriation item 415-403, Mental Health      12,866       

Services, shall be used for the provision of vocational            12,867       

rehabilitation services to mutually eligible consumers of the      12,868       

                                                          290    

                                                                 
Rehabilitation Services Commission and the Department of Mental    12,870       

Health.                                                                         

      The Department of Mental Health shall receive a quarterly    12,872       

report from the Rehabilitation Services Commission stating the     12,873       

numbers served, numbers placed in employment, average hourly       12,875       

wage, and average hours worked.                                                 

      Independent Living Centers or Services                       12,877       

      The foregoing appropriation items 415-520, Independent       12,879       

Living Centers or Services, and 415-612, Federal-Independent       12,880       

Living Centers or Services, shall be used to support state         12,882       

independent living centers or independent living services          12,883       

pursuant to Title VII-Independent Living Services and Centers for               

Independent Living of the Rehabilitation Act Amendments of 1992,   12,884       

106 Stat. 4344, 29 U.S.C.A. 796d.                                  12,885       

      Federal - Special Vocational Rehabilitation Programs         12,887       

      The foregoing appropriation item 415-617, Federal-Special    12,889       

Vocational Rehabilitation Programs, shall be used to support       12,890       

vocational rehabilitation programs including, but not limited to,  12,891       

Projects with Industry and Training Grants.                        12,892       

      Sec. 119.  OVH  OHIO VETERANS' HOME                          12,894       

General Revenue Fund                                               12,896       

GRF 430-100 Personal Services     $   10,334,362 $   11,039,285    12,901       

GRF 430-200 Maintenance           $    4,676,165 $    5,007,942    12,905       

TOTAL GRF General Revenue Fund    $   15,010,527 $   16,047,227    12,908       

Federal Special Revenue Fund Group                                 12,911       

3L2 430-601 Federal Grants        $    6,690,000 $    7,034,267    12,916       

TOTAL FED Federal Special Revenue                                  12,917       

   Fund Group                     $    6,690,000 $    7,034,267    12,920       

State Special Revenue Fund Group                                   12,923       

4E2 430-602 Veterans Home                                          12,926       

            Operating             $    3,082,672 $    3,320,470    12,928       

                                                      3,480,942    12,929       

484 430-603 RENTAL AND SERVICE                                     12,931       

            REVENUE               $            0 $      100,000    12,933       

                                                          291    

                                                                 
604 430-604 Veterans Home                                          12,935       

            Improvement           $      466,192 $      579,839    12,937       

TOTAL SSR State Special Revenue                                    12,938       

  Fund Group                      $    3,548,864 $    3,900,309    12,941       

                                                      4,160,781    12,942       

TOTAL ALL BUDGET FUND GROUPS      $   25,249,391 $   26,981,803    12,945       

                                                     27,242,275    12,946       

      CASH TRANSFER FROM VETERANS HOME FUND TO OPERATING FUNDDIRECTOR OF BUDGET AND MANAGEMENT MAY TRANSFER CASH IN   12,957       

AN AMOUNT EQUAL TO A ONE PER CENT REDUCTION IN THE OHIO VETERANS   12,958       

HOME GENERAL REVENUE FUND OPERATING LINE ITEMS, AS PROVIDED IN     12,960       

AM. SUB. H. B. 650 OF THE 122nd GENERAL ASSEMBLY, FROM THE         12,962       

VETERANS HOME FUND (FUND 604) TO THE VETERANS HOME OPERATING FUND  12,963       

(FUND 4E2).                                                        12,964       

      Sec. 190.  Ohio Departments Building                         12,966       

      (A)  As used in this section:                                12,968       

      (1)  "Repair and renovate" and "repair and renovation"       12,970       

include, but are not limited to, planning, programming, design,    12,971       

constructions, furnishing, and equipping of the Ohio Departments   12,972       

Building;                                                                       

      (2)  "Appropriation" means appropriation items CAP-815 and   12,974       

CAP-849 in Section 28 of Am. H.B. 748 of the 121st General         12,975       

Assembly, appropriation items CIR-825, CIR-815, and CIR-831 in     12,977       

Section 15.02 of Am. Sub. S.B. 264 of the 121st General Assembly,               

and any subsequent appropriations made to or for the benefit of    12,979       

the Supreme Court for the repair and renovation of the Ohio        12,980       

Departments Building.                                                           

      (B)  The appropriation shall be used by or at the direction  12,982       

of the Supreme Court of Ohio for the repair and renovation of the  12,983       

Ohio Departments Building as follows:                              12,984       

      (1)  A portion shall be used by the Department of            12,986       

Administrative Services for the repair and renovation of the       12,987       

exterior, roof, and grounds of the Ohio Departments Building;      12,988       

      (2)  The remaining portion shall be used after January 1,    12,990       

                                                          292    

                                                                 
1998 by the Ohio Building Authority for other expenses associated  12,991       

with the repair and renovation of the Ohio Departments Building,   12,992       

including, but not limited to, the interior and grounds of the     12,993       

Building.                                                                       

      (C)  The Ohio Building Authority, with the prior approval    12,995       

of the Supreme Court, shall submit a plan and cost estimate of     12,996       

repair and renovation set forth in division (B)(2) of this         12,997       

section to the Department of Administrative Services.  Based upon  12,998       

the plan, the Director of Administrative Services shall request    12,999       

the Director of Budget and Management to release from the                       

appropriation the estimated amount.  The Director of Budget and    13,000       

Management may release the funds APPROPRIATION and, upon their     13,001       

THAT release, the Director of Administrative Services shall        13,003       

transfer the amount released to the Ohio Building Authority,                    

which shall use the funds MONEYS, and any investment earnings on   13,004       

the funds MONEYS and other available receipts as defined in        13,006       

section 152.09 of the Revised Code, to pay the costs of the        13,007       

repair and renovation.                                                          

      (D)  Upon completion of the repair and renovation:           13,009       

      (1)  Any funds MONEYS received by the Ohio Building          13,011       

Authority for the repair and renovation that have not been used    13,012       

shall be refunded to the Department of Administrative Services     13,013       

for deposit into Fund 026;                                         13,014       

      (2)  The Supreme Court shall own, operate, and manage the    13,016       

Ohio Departments funds received by the Ohio Building Authority     13,018       

for the repair and renovation that have not been used shall be     13,019       

refunded to the Department of Administrative Services for deposit  13,020       

into Fund 026 Building.                                            13,021       

      (E)  The Supreme Court may enter into contracts or other     13,023       

agreements with the Department of Administrative Services, the     13,024       

Ohio Building Authority, another state entity, or a private        13,025       

contractor to operate and manage the Ohio Departments Building.    13,026       

      (F)  To assist the Ohio Building Authority, the Department   13,028       

of Administrative Services and the Supreme Court may assign,       13,029       

                                                          293    

                                                                 
amend, or enter into any necessary or appropriate leases,          13,030       

contracts, or agreements relating to the Ohio Departments          13,031       

Building to or with the Ohio Building Authority upon terms         13,032       

satisfactory to all parties.                                                    

      (G)  REPAIRS AND RENOVATIONS THAT ARE MADE USING THE         13,034       

APPROPRIATION ARE EXEMPT FROM SECTION 3379.10 OF THE REVISED       13,036       

CODE, THE PER CENT FOR ARTS PROGRAM.                                            

      Sec. 210.  Sections 5733.02, 5733.022, 5733.03, 5733.042,    13,038       

5733.05, 5733.051, 5733.052, 5733.053, 5733.055, 5733.06,          13,039       

5733.061, 5733.065, 5733.066, 5733.067, 5733.068, 5733.069,        13,040       

5733.0611, 5733.09, 5733.12, 5733.31, 5733.311, 5733.32, 5733.33,  13,041       

and 5733.98 of the Revised Code, as amended or enacted by this     13,042       

act AM. SUB. H.B. 215 OF THE 122nd GENERAL ASSEMBLY, apply to tax  13,044       

years 1999 and thereafter, except as otherwise provided in         13,046       

division (A) of section 5733.05 and divisions (A)(6) through (8)   13,048       

of section 5733.98 of the Revised Code.  NOTHING IN AM. SUB. H.B.  13,049       

215 OF THE 122nd GENERAL ASSEMBLY AMENDS OR REPEALS ALL OR ANY     13,051       

PORTION OF THESE SECTIONS FOR THE PURPOSES OF TAX YEAR 1998 WITH                

REGARD TO CORPORATIONS OTHER THAN FINANCIAL INSTITUTIONS.          13,052       

      THE AMENDMENT OF THIS SECTION IS SUBJECT TO THE              13,054       

REFERENDUM."                                                                    

      Section 4.  That existing Sections 20.05, 47.13, 50.52,      13,056       

50.52.2, 50.52.4, 50.52.7, 50.52.9, 58, 62.01, 67.08, 101, 119,    13,057       

190, and 210 of Am. Sub. H.B. 215 of the 122nd General Assembly    13,058       

are hereby repealed.                                                            

      Section 5.  That Section 67.05 of Am. Sub. H.B. 215 of the   13,060       

122nd General Assembly, as amended by Sub. H.B. 446 of the 122nd   13,061       

General Assembly, be amended to read as follows:                   13,063       

      "Sec. 67.05.  Transfer of Funds                              13,065       

      The Ohio Department of Human Services shall transfer         13,067       

through intrastate transfer vouchers, cash from State Special      13,068       

Revenue Fund 4K1, ICF/MR Bed Assessments, to fund 4K8, Home and    13,069       

Community-Based Services, in the Ohio Department of Mental         13,070       

Retardation and Developmental Disabilities.  The sum of the        13,071       

                                                          294    

                                                                 
transfers shall be equal to the amounts appropriated per fiscal    13,072       

year in line item 322-604, Waiver - Match.  The transfer may       13,073       

occur on a quarterly basis or on a schedule developed and agreed                

to by both Departments.                                            13,074       

      The Ohio Department of Human Services shall transfer,        13,076       

through intrastate transfer vouchers, cash from the State Special  13,077       

Revenue Fund 4J5, Home and Community-Based Services for the Aged,  13,078       

to Fund 4J4, PASSPORT, in the Ohio Department of Aging.  The sum   13,079       

of the transfers shall be equal to the amount appropriated per     13,080       

fiscal year in line item 490-610, PASSPORT/Residential State       13,082       

Supplement.  The transfer may occur on a quarterly basis or on a   13,083       

schedule developed and agreed to by both departments.                           

      Day Care for Foster Parents                                  13,085       

      Of the foregoing appropriation item 400-527, Child           13,087       

Protective Services, not more than $1,400,000 in fiscal year 1998  13,089       

and not more than $1,400,000 in fiscal year 1999, may be used to   13,090       

reimburse counties for child day care services purchased in        13,091       

behalf of children in foster care.  Such funds may be used as                   

matching funds for federal funds that may be available for this    13,092       

purpose.  The Department of Human Services shall adopt rules, in   13,093       

accordance with section 111.15 of the Revised Code, establishing   13,094       

reimbursement procedures and conditions to be followed by          13,095       

counties.                                                                       

      Transfer from the Children's Trust Fund to the Wellness      13,097       

Block Grant Fund                                                                

      The Director of Budget and Management shall transfer         13,099       

$1,000,000 in fiscal year 1998 and $1,000,000 in fiscal year 1999  13,100       

from Fund 198, Children's Trust Fund, to Fund 4N7, Wellness Block  13,101       

Grant, within the Department of Human Services' budget.            13,102       

      Foster Care Liability Coverage                               13,104       

      On behalf of public children services agencies and in        13,106       

consultation with the Department of Insurance and the Office of    13,107       

State Purchasing, the Department of Human Services may seek and    13,108       

accept proposals for a uniform and statewide insurance policy to   13,109       

                                                          295    

                                                                 
indemnify foster parents for personal injury and property damage   13,110       

suffered by them due to the care of a foster child.  Premiums for               

such a policy shall be the sole responsibility of each public      13,111       

children services agency that agrees to purchase the insurance     13,112       

policy.                                                                         

      Protective Services Incentive Funding                        13,114       

      Notwithstanding the formula in section 5101.14 of the        13,116       

Revised Code, from the foregoing appropriation item 400-527,       13,117       

Child Protective Services, the Department of Human Services may    13,118       

use no more than $2 million in fiscal year 1999 as incentive       13,119       

funding for public children services agencies to promote                        

innovative practice standards and efficiencies in service          13,120       

delivery.  The department shall develop a process for the release  13,121       

of these funds and may adopt rules in accordance with section      13,122       

111.15 of the Revised Code governing the distribution, release,    13,123       

and use of these funds.                                                         

      Day Care/Head Start Collaborations                           13,125       

      The Department of Human Services and the county departments  13,127       

of human services shall work to develop collaborative efforts      13,128       

between Head Start and child care providers.  The Department of    13,129       

Human Services may use the foregoing appropriation items 400-413,  13,131       

Day Care Match/Maintenance of Effort, and 400-617, Day Care                     

Federal, to support collaborative efforts between Head Start and   13,132       

child day care centers.                                            13,133       

      Day Care Funding for Latchkey Children                       13,135       

      The Department of Human Services shall use not less than     13,137       

$5,000,000 in fiscal year 1998 and not less than $5,000,000 in     13,138       

fiscal year 1999 of the Child Care Development Block Grant         13,139       

moneys to support low-income families who need assistance in the   13,140       

provision of before-school and after-school care for their         13,141       

children.  The Department of Human Services shall establish rules  13,142       

determining eligibility for these dollars adopted in accordance    13,143       

with section 111.15 of the Revised Code.                           13,144       

      Evening and Night Time Child Care                            13,146       

                                                          296    

                                                                 
      When the Department of Human Services adopts rules           13,148       

establishing a procedure for determining the rates of maximum      13,149       

reimbursement for publicly funded child care, the department       13,150       

shall adopt an enhanced rate to encourage the development of       13,151       

child care for parent(s) who work nontraditional hours.            13,152       

      Human Services Staff Reduction                               13,154       

      From staffing levels that existed on January 1, 1997, the    13,157       

Department of Human Services is required to reduce its full-time                

equivalent positions by 150 by July 1, 1999.  At least             13,158       

thirty-nine positions must be eliminated by January 1, 1998.  The  13,159       

remaining positions must be eliminated by July 1, 1999.            13,160       

      Child Protective Services Information System                 13,162       

      (A)  From the foregoing appropriation item 400-416,          13,164       

Computer Projects, the Department of Human Services shall expend   13,165       

at least $6,000,000 in fiscal year 1998 and at least $6,000,000    13,166       

in fiscal year 1999 to contract with a vendor to develop a         13,168       

statewide automated child welfare information system (SACWIS) and  13,169       

support the 88 public children services agencies' implementation   13,170       

of the SACWIS.  The department shall select a vendor by using a    13,172       

competitively bid request for proposal process.  For a vendor to   13,174       

be eligible to contract with the department, all of the following  13,175       

must apply:                                                                     

      (1)  The vendor must have developed a SACWIS for another     13,178       

state and assisted that state with the successful implementation   13,179       

of the SACWIS;                                                     13,180       

      (2)  The vendor must be able to do either of the following:  13,183       

      (a)  Revise the SACWIS developed for the other state to      13,187       

comply with Ohio and federal law and successfully interface with   13,188       

the Support Enforcement Tracking System (SETS) and Client          13,190       

Registry and Information System-Enhanced (CRIS-E);                 13,191       

      (b)  Develop a new SACWIS that complies with Ohio and        13,195       

federal law and successfully interfaces with SETS and CRIS-E;      13,197       

      (3)  The vendor must be able to have the SACWIS operational  13,200       

in all 88 public children services agencies by June 30, 1999.      13,201       

                                                          297    

                                                                 
      (B)  The Department of Human Services shall do both of the   13,203       

following:                                                                      

      (1)   Provide training and system support for the county     13,205       

employees who will use the SACWIS;                                 13,206       

      (2)  Provide for the maintenance and general upkeep of the   13,208       

SACWIS.                                                            13,209       

      Adoption Assistance                                          13,211       

      Of the foregoing appropriation item 400-528, Title IV-E and  13,213       

State Adoption Services, not more than $3,700,000 in fiscal year   13,214       

1998 and not more than $3,700,000 in fiscal year 1999 shall be     13,215       

used in support of post finalization adoption services offered     13,216       

pursuant to section 5153.163 of the Revised Code.  The Department  13,218       

of Human Services shall adopt rules and procedures pursuant to     13,219       

section 111.15 of the Revised Code to set payment levels and       13,220       

limit eligibility for post finalization adoption services as       13,221       

necessary to limit program expenditures to the amounts set forth   13,222       

in this section, based on factors, including but not limited to,   13,223       

any or all of the following:  type, or extent, of the adopted      13,224       

child's disability or special need; and resources available to     13,225       

the adoptive family to meet the child's service needs.             13,226       

      Social Service Block Grant (SSBG) Earmark for Day Care       13,228       

Services                                                           13,229       

      Of the foregoing appropriation item 400-620, Social          13,231       

Services Block Grant, no less than $15,000,000 in fiscal year      13,232       

1998 and $15,000,000 in fiscal year 1999 shall be used for child   13,233       

day care services.  The remainder of the SSBG funding may be used  13,234       

to provide social services as authorized in section 5101.465       13,235       

5101.46 of the Revised Code, including adult day care.             13,236       

      Child Support Collections/TANF MOE                           13,238       

      The foregoing appropriation item 400-658, Child Support      13,240       

Collections, shall be used by the Department of Human Services to  13,241       

meet the TANF Maintenance of Effort requirements of Pub. L. No.    13,242       

104-193.  After the state has met the maintenance of effort        13,243       

requirement, the Department of Human Services may use funds from   13,244       

                                                          298    

                                                                 
line item 400-658 to support public assistance activities.                      

      Transfer of Unspent Funds from Fiscal Year 1998 to Fiscal    13,247       

Year 1999                                                                       

      Upon the request of the Department of Human Services, the    13,250       

Controlling Board may transfer any remaining unspent fiscal year   13,251       

1998 funds from appropriation item 400-410, TANF State, to                      

appropriations for fiscal year 1999 so that the state of Ohio      13,252       

will be able to meet the Maintenance of Effort requirements for    13,253       

the Temporary Assistance for Needy Families Block.                 13,254       

      Upon the request of the Department of Human Services, the    13,256       

Controlling Board may transfer any remaining unspent fiscal year   13,257       

1998 funds from appropriation item 400-413, Day Care/Maintenance   13,258       

of Effort, to appropriations for fiscal year 1999 so that the      13,259       

state of Ohio will be able to meet the Maintenance of Effort       13,260       

requirements for the Child Care Development Block Grant.           13,261       

      Upon the request of the Department of Human Services, the    13,263       

Controlling Board may transfer any remaining unspent fiscal year   13,264       

1998 funds from individual county consolidations from              13,265       

appropriation item 400-527, Child Protective Services, to          13,266       

appropriations for fiscal year 1999 so that the counties may meet  13,268       

the obligations for services funded through that line item.                     

      Upon the request of the Department of Human Services, the    13,270       

Controlling Board may transfer any remaining unspent fiscal year   13,271       

1998 funds from the Post Finalization Special Adoption Services    13,272       

portion of appropriation item 400-528, Adoption Services, to       13,273       

appropriations for fiscal year 1999 so that counties may meet the  13,275       

obligations for services funded through that portion of the line   13,276       

item.                                                                           

      Upon the request of the Department of Human Services, the    13,278       

Controlling Board may transfer any remaining unspent fiscal year   13,279       

1998 funds from appropriation item 400-409, Wellness Block Grant,  13,281       

to appropriations for fiscal year 1999 so that the counties may    13,282       

meet the obligations for services funded through that line.        13,283       

      Private Child Care Agencies Training                         13,285       

                                                          299    

                                                                 
      The foregoing appropriation item 400-615, Private Child      13,287       

Care Agencies Training, shall be used by the Department of Human   13,288       

Services to provide the state match for federal Title IV-E         13,289       

training dollars for private child placing agencies and private    13,290       

noncustodial agencies.  Revenues shall consist of moneys derived   13,291       

from fees established under section 5101.112 5101.143 of the       13,292       

Revised Code and paid by private child placing agencies and        13,293       

private noncustodial agencies.                                                  

      Funding for Emergency Food Distribution Programs             13,295       

      Of the foregoing appropriation item 400-610, Food Stamps     13,297       

and State Administration, $1.5 million in fiscal year 1998 and     13,298       

$1.5 million in fiscal year 1999 shall be used by the Department   13,299       

of Human Services to purchase commodities and distribute those     13,300       

commodities to supplement the emergency food distribution          13,301       

programs.  Agencies receiving commodities under this program       13,302       

shall provide reports in accordance with rules developed by the    13,303       

Department of Human Services.                                      13,304       

      Transfers for Lead Assessments                               13,306       

      Of the foregoing appropriation item 400-525, Health          13,308       

Care/Medicaid, $77,790 (state share only) in fiscal year 1998,     13,309       

and $111,477 (state share only) in fiscal year 1999 shall be used  13,311       

to transfer funds from the General Revenue Fund to the General     13,312       

Operations Fund (Fund 142) of the Department of Health.  Transfer  13,313       

of the funds shall be made through intrastate transfer vouchers    13,314       

pursuant to an interagency agreement for the purpose of                         

performing environmental lead assessments in the homes of          13,315       

Medicaid Healthcheck recipients.                                   13,316       

      Transfer IMD/DSH Cash                                        13,318       

      The Director of Budget and Management may transfer cash      13,320       

from the Disproportionate Share Fund (3P8) in the Department of    13,321       

Human Services to the OhioCare Fund (4X5) in the Department of     13,322       

Mental Health, the Behavioral Health Medicaid Services Fund (4X4)  13,324       

in the Department of Alcohol and Drug Addiction Services, and the               

Medicaid Program Support Fund - State (5C9) in the Department of   13,325       

                                                          300    

                                                                 
Human Services and shall transfer cash in the amount of            13,326       

$14,800,000 to the Health Services Fund (5E1) in the Department    13,327       

of Health.                                                                      

      Interagency Agreement on Specified Medicaid Services         13,329       

      Based on an interagency agreement, the Department of Human   13,331       

Services may delegate authority to the Department of Alcohol and   13,332       

Drug Addiction Services and the Department of Mental Health to     13,333       

administer specified Medicaid services.  Monthly reimbursement     13,334       

shall be made by intrastate transfer voucher from the Department   13,335       

of Human Services' appropriation items 400-525, Health             13,336       

Care/Medicaid, and 400-655, Interagency Reimbursement, to the      13,337       

Department of Drug and Alcohol Addiction Services' Behavioral      13,338       

Health Medicaid Services Fund (4X4) and the Department of Mental   13,340       

Health's OhioCare Fund (4X5).                                                   

      Medicaid Program Support Fund-State                          13,342       

      The Department of Human Services' Medicaid Program Support   13,344       

Fund-State (5C9) is hereby created in the state treasury.  The     13,345       

Fund shall be used to receive earned federal reimbursement         13,346       

generated by the Institutions for Mental                                        

Diseases/Disproportionate Share Hospital Program.  The foregoing   13,347       

appropriation item 400-671, Medicaid Program Support, may be used  13,349       

for the following purposes:  to pay for Medicaid services to       13,350       

eligible children under age nineteen, whose family income does     13,351       

not exceed 150 per cent of the federal poverty level; to pay for   13,352       

a new Medicaid home and community-based waiver program for         13,353       

non-aged persons with chronic, long-term disabilities; and, to     13,354       

make residual payments associated with the specified Medicaid      13,355       

services transferred to the Department of Alcohol and Drug         13,356       

Addiction Services and the Department of Mental Health.            13,357       

      The foregoing appropriation item 400-672, Medicaid           13,359       

Services, may be used by the Department of Human Services to pay   13,360       

for Medicaid services or to transfer moneys by intrastate          13,361       

transfer voucher to the Department of Mental Health's OhioCare     13,363       

Fund (4X5) in accordance with an interagency agreement which       13,364       

                                                          301    

                                                                 
delegates authority from the Department of Human Services to the   13,365       

Department of Alcohol and Drug Addiction Services and the                       

Department of Mental Health to administer specified Medicaid       13,366       

services.                                                          13,367       

      Medicaid Program Support Fund-Federal                        13,369       

      The Department of Human Services' Medicaid Program Support   13,371       

Fund-Federal (3P7) is hereby created in the state treasury.  The   13,372       

foregoing appropriation item 400-668, Medicaid Program Support,    13,373       

may be used to pay for Medicaid services to eligible children      13,375       

under age nineteen, whose family income does not exceed 150 per    13,376       

cent of the federal poverty level; and for a new Medicaid home                  

and community-based waiver program for non-aged persons with       13,377       

chronic, long-term disabilities.  Funds also may be used for       13,378       

residual payments associated with the specified Medicaid services  13,379       

transferred to the Department of Alcohol and Drug Addiction        13,380       

Services and the Department of Mental Health.                                   

      The foregoing appropriation item 400-672, Medicaid           13,382       

Services, may be used by the Department of Human Services to pay   13,383       

for Medicaid services and contracts.                               13,384       

      OhioCare Start-up Fund Name Change                           13,386       

      The name of the Department of Human Services' OhioCare       13,388       

Start-up Fund (3P7) is hereby changed to the Medicaid Program      13,389       

Support Fund-Federal.                                                           

      Rural Medicaid Managed Care Pilot Programs                   13,391       

      The Director of Human Services may contract with one or      13,393       

more organizations to develop and/or implement Medicaid Managed    13,394       

Care Pilot Programs in rural sections of Ohio.                     13,395       

      Medicaid Managed Care Reimbursement Study Committee          13,397       

      The Medicaid Managed Care Reimbursement Study Committee      13,399       

shall meet by August 1, 1997, to begin reviewing the               13,400       

appropriateness of the negotiated Medicaid reimbursement rates     13,401       

paid to managed care organizations for services provided to        13,402       

Medicaid recipients in fiscal year 1998.  By November 1, 1997,     13,403       

the Committee must report its findings and/or recommendations      13,404       

                                                          302    

                                                                 
concerning the fiscal year 1998 rates to the Governor, the         13,405       

Speaker of the House of Representatives, and the President of the  13,406       

Senate.                                                                         

      Medicaid Managed Care for Individuals with MR/DD             13,408       

      In preparing the budget for medical assistance for state     13,410       

fiscal years 2000 and 2001, as it pertains to services provided    13,411       

to individuals with mental retardation and developmental           13,412       

disabilities, the Office of Budget and Management and the          13,413       

Department of Human Services shall review the results of any       13,414       

study regarding the use of a managed care system that is prepared  13,416       

and submitted to it by the Hattie Larlham Foundation, the Ohio                  

Department of Mental Retardation and Developmental Disabilities    13,417       

Action Committee, the Ohio Private Residential Association, the    13,418       

Ohio Coalition for Services to Persons with Mental Retardation     13,419       

and Developmental Disabilities, or any other entity.               13,420       

      Transfer Lapsed Funds in Fund 4A6 to GRF                     13,422       

      The Department of Human Services shall certify the cash      13,424       

balance of Fund 4A6 to the Director of Budget and Management who   13,425       

shall transfer the remaining unexpended, unobligated balance in    13,426       

Fund 4A6 to the General Revenue Fund.                                           

      Holding Account Redistribution Group                         13,428       

      The foregoing appropriation items 400-643 and 400-644,       13,430       

Holding Account Redistribution Fund Group, shall be used to hold   13,431       

revenues until they are directed to the appropriate accounts or    13,432       

until they are refunded.  If it is determined that additional      13,433       

appropriation authority is necessary, such amounts are hereby      13,434       

appropriated.                                                                   

      Agency Fund Group                                            13,436       

      The foregoing appropriation items 400-646, 400-601, and      13,438       

400-642, Agency Fund Group, shall be used to hold revenues until   13,439       

they are directed to the appropriate accounts or until they are    13,440       

directed to the appropriate governmental agency other than the     13,441       

Department of Human Services.  If it is determined that                         

additional appropriation authority is necessary, such amounts are  13,442       

                                                          303    

                                                                 
hereby appropriated.                                               13,443       

      State Special Revenue Fund Group                             13,445       

      The foregoing appropriation items that appear in the         13,447       

Department of Human Services' State Special Revenue Fund Group     13,448       

shall be used to collect revenue from various sources and use the  13,449       

revenue to support programs administered by the Department of      13,450       

Human Services.  If it is determined that additional                            

appropriations are necessary, the department shall notify the      13,451       

Director of Budget and Management on forms prescribed by the       13,453       

Controlling Board.  If the director agrees that the additional     13,454       

appropriation is necessary in order to perform the functions                    

allowable in the appropriation item then such amounts are hereby   13,455       

appropriated.  The Director of Budget and Management shall notify  13,456       

the Controlling Board at their next regularly scheduled meeting    13,457       

as to the action taken."                                                        

      Section 6.  That existing Section 67.05 of Am. Sub. H.B.     13,459       

215 of the 122nd General Assembly, as amended by Sub. H.B. 446 of  13,460       

the 122nd General Assembly, is hereby repealed.                    13,461       

      Section 7.  That Sections 50, 50.07, 50.08, 50.09, 50.10,    13,463       

50.12, 50.13, 50.14, 50.24, 50.44, 50.52.5, and 50.52.10 of Am.    13,464       

Sub. H.B. 215 of the 122nd General Assembly, as amended by Am.     13,465       

Sub. H.B. 650 of the 122nd General Assembly, be amended to read    13,467       

as follows:                                                                     

      "Sec. 50.  EDU  DEPARTMENT OF EDUCATION                      13,472       

General Revenue Fund                                               13,474       

GRF 200-100 Personal Services     $   10,744,925 $   10,756,210    13,479       

                                                     11,256,210    13,480       

GRF 200-200 Maintenance           $    8,691,111 $    4,597,207    13,484       

                                       3,991,111      6,797,207    13,485       

GRF 200-300 Equipment             $      117,449 $      116,773    13,489       

                                                      2,116,773    13,490       

GRF 200-405 Primary and Secondary                                  13,492       

            Education Funding     $            0 $            0    13,494       

GRF 200-406 Head Start            $   83,739,058 $   92,562,977    13,498       

                                                          304    

                                                                 
GRF 200-408 Public Preschool      $   17,468,094 $   17,904,796    13,502       

GRF 200-410 Professional                                           13,504       

            Development           $            0 $   29,649,944    13,506       

GRF 200-411 Family and Children                                    13,508       

            First                 $    8,500,500 $   10,642,188    13,510       

GRF 200-412 Driver Education                                       13,512       

            Administration        $      143,429 $      142,605    13,514       

GRF 200-415 Consumer Education    $      500,000 $      500,000    13,518       

GRF 200-416 Vocational Education                                   13,520       

            Match                 $    2,245,026 $    2,248,664    13,522       

GRF 200-417 Professional                                           13,524       

            Development           $   14,370,077 $            0    13,526       

GRF 200-422 School Management                                      13,528       

            Assistance            $      800,596 $      841,563    13,530       

GRF 200-423 Teacher Recruitment   $    1,289,067 $            0    13,534       

GRF 200-424 Simulation System     $      449,796 $      447,210    13,538       

GRF 200-426 Ohio Educational                                       13,540       

            Computer Network      $   21,698,858 $   22,228,079    13,542       

GRF 200-429 Local Professional                                     13,544       

            Development Block                                                   

            Grants                $    9,259,713 $            0    13,546       

GRF 200-431 School Improvement                                     13,548       

            Models                $   16,450,000 $   11,525,000    13,550       

GRF 200-432 School Conflict                                        13,552       

            Management            $      392,575 $      402,390    13,554       

GRF 200-437 Student Proficiency   $   10,555,476 $   11,798,788    13,558       

GRF 200-441 American Sign                                          13,560       

            Language              $      226,245 $      226,245    13,562       

GRF 200-442 Child Care Licensing  $    1,359,171 $    1,438,172    13,566       

GRF 200-446 Education Management                                   13,568       

            Information System    $   12,060,657 $   10,299,674    13,570       

GRF 200-447 GED Testing/Adult                                      13,572       

            High School           $    1,939,001 $    1,987,475    13,574       

GRF 200-455 Charter Schools       $    1,200,000 $    2,300,000    13,578       

                                                          305    

                                                                 
GRF 200-500 School Finance Equity $  109,405,982 $   66,957,250    13,582       

GRF 200-501 Base Cost Funding     $2,202,851,688 $2,986,915,811    13,586       

                                                  3,047,415,811    13,588       

GRF 200-502 Pupil Transportation  $  179,702,987 $  231,595,463    13,592       

GRF 200-503 Bus Purchase                                           13,594       

            Allowance             $   36,365,821 $   37,274,967    13,596       

GRF 200-504 Special Education     $  556,029,126 $            0    13,600       

GRF 200-505 School Lunch Match    $    9,450,000 $    9,450,000    13,604       

GRF 200-507 Vocational Education  $  317,612,847 $            0    13,608       

GRF 200-509 Adult Literacy                                         13,610       

            Education             $    8,928,273 $    9,151,480    13,612       

GRF 200-511 Auxiliary Services    $   95,956,267 $  101,617,687    13,616       

GRF 200-512 Driver Education      $    6,026,070 $    6,206,852    13,620       

GRF 200-514 Post-Secondary/Adult                                   13,622       

            Vocational Education  $   20,695,861 $   20,695,861    13,624       

GRF 200-520 Disadvantaged Pupil                                    13,626       

            Impact Aid            $  277,205,650 $  386,618,741    13,628       

GRF 200-521 Gifted Pupil Program  $   34,383,349 $   36,326,043    13,632       

GRF 200-524 Educational                                            13,634       

            Excellence and                                                      

            Competency            $    9,528,000 $    9,168,000    13,636       

GRF 200-526 Vocational Education                                   13,638       

            Equipment Replacement $    4,941,622 $            0    13,640       

GRF 200-532 Nonpublic                                              13,642       

            Administrative Cost                                                 

            Reimbursement         $   41,829,125 $   44,297,043    13,644       

GRF 200-533 School-Age Child Care $    1,046,647 $    1,046,647    13,648       

GRF 200-534 Desegregation Costs   $   50,400,000 $   50,400,000    13,652       

GRF 200-540 Special Education                                      13,654       

            Enhancements          $            0 $  136,286,490    13,657       

                                                     75,786,490    13,659       

GRF 200-541 Peer Review           $    1,840,000 $            0    13,663       

GRF 200-542 National Board                                         13,665       

            Certification         $    1,600,000 $            0    13,667       

                                                          306    

                                                                 
GRF 200-543 Entry Year Program    $    2,396,205 $            0    13,671       

GRF 200-544 Individual Career                                      13,673       

            Plan & Passport       $    5,708,968 $            0    13,675       

GRF 200-545 Vocational Education                                   13,677       

            Enhancements          $            0 $  184,298,314    13,680       

                                                    201,991,432    13,681       

GRF 200-546 Charge-Off Supplement $            0 $   11,000,000    13,684       

GRF 200-547 Power Equalization    $            0 $   12,500,000    13,687       

GRF 200-551 Reading Improvement   $    1,666,133 $    1,666,133    13,691       

GRF 200-552 County MR/DD Boards                                    13,693       

            Vehicle Purchases     $    1,551,774 $    1,590,569    13,695       

GRF 200-553 County MR/DD Boards                                    13,697       

            Transportation                                                      

            Operating             $    6,611,623 $    6,876,088    13,699       

GRF 200-558 Emergency Loan                                         13,702       

            Interest Subsidy      $            0 $    8,490,374    13,704       

GRF 200-577 Preschool Special                                      13,706       

            Education             $   62,268,535 $            0    13,708       

GRF 200-589 Special Education                                      13,710       

            Aides                 $    1,635,157 $            0    13,712       

GRF 200-901 Property Tax                                           13,714       

            Allocation -                                                        

            Education             $  566,800,000 $  600,800,000    13,716       

GRF 200-906 Tangible Tax                                           13,718       

            Exemption - Education $   61,320,000 $   63,210,000    13,720       

TOTAL GRF General Revenue Fund    $4,899,958,534 $5,257,055,773    13,723       

                                   4,895,258,534  5,279,448,891    13,724       

General Services Fund Group                                        13,727       

4D1 200-602 Ohio                                                   13,730       

            Prevention/Education                                                

            Resource Center       $      277,560 $      285,332    13,732       

138 200-606 Computer Services     $    4,036,728 $    4,143,201    13,736       

452 200-638 Fees and Gifts        $    1,788,862 $    1,838,335    13,740       

596 200-656 Ohio Career                                            13,742       

                                                          307    

                                                                 
            Information System    $      647,156 $      660,812    13,744       

4P1 200-629 Adult Literacy                                         13,746       

            Education             $    2,364,400 $    2,430,603    13,748       

4L2 200-681 Teacher Certification                                  13,750       

            and Licensure         $    3,580,741 $    3,675,311    13,752       

TOTAL GSF General Services                                         13,753       

   Fund Group                     $   12,695,447 $   13,033,594    13,756       

Federal Special Revenue Fund Group                                 13,759       

309 200-601 Educationally                                          13,762       

            Disadvantaged         $   12,486,104 $   12,904,245    13,764       

366 200-604 Adult Basic Education $   16,300,000 $   18,000,000    13,768       

3H9 200-605 Head Start                                             13,770       

            Collaboration Project $      200,000 $      200,000    13,772       

367 200-607 School Food Services  $    9,290,000 $   10,160,000    13,776       

368 200-614 Veterans' Training    $      565,232 $      593,493    13,780       

369 200-616 Vocational Education  $   10,556,971 $   10,787,320    13,784       

3L6 200-617 Federal School Lunch  $  159,570,000 $  167,550,000    13,788       

3L7 200-618 Federal School                                         13,790       

            Breakfast             $   29,818,000 $   31,607,000    13,792       

3L8 200-619 Child and Adult Care                                   13,794       

            Programs              $   58,600,000 $   59,800,000    13,796       

3L9 200-621 Vocational Education                                   13,798       

            Basic Grant           $   54,122,121 $   54,122,121    13,800       

3M0 200-623 ESEA Chapter One      $  356,669,568 $  374,503,047    13,804       

370 200-624 Education of All                                       13,806       

            Handicapped Children  $   12,902,838 $   12,902,838    13,808       

3N7 200-627 School-to-Work        $   18,000,000 $   13,500,000    13,812       

371 200-631 EEO Title IV          $      364,655 $      377,850    13,815       

372 200-635 Federal Driver                                         13,817       

            Education Projects    $       84,500 $       84,500    13,819       

373 200-642 Pupil Transportation                                   13,821       

            Safety Project        $       81,000 $       81,000    13,823       

374 200-647 E.S.E.A. Consolidated                                  13,825       

            Grants                $      260,301 $      265,624    13,827       

                                                          308    

                                                                 
375 200-652 Technical Assistance                                   13,829       

            for Educational                                                     

            Mobility              $      216,720 $      227,556    13,831       

376 200-653 J.T.P.A.              $    5,000,000 $    5,034,523    13,835       

3R3 200-654 Goals 2000            $   19,789,214 $   22,000,000    13,839       

377 200-657 Sex Equity            $      125,685 $      131,969    13,843       

378 200-660 Math/Science                                           13,845       

            Technology                                                          

            Investments           $   10,802,634 $   12,000,000    13,847       

3D1 200-664 Drug Free Schools     $   17,410,259 $   19,500,000    13,851       

3D2 200-667 Honors Scholarship                                     13,853       

            Program               $    1,231,979 $    1,231,979    13,855       

3E2 200-668 AIDS Education                                         13,857       

            Project               $      718,734 $      620,775    13,859       

3M1 200-678 ESEA Chapter Two      $   13,478,447 $   14,152,369    13,863       

3M2 200-680 Ind W/Disab Education                                  13,865       

            Act                   $   91,825,830 $   91,825,830    13,867       

TOTAL FED Federal Special                                          13,868       

   Revenue Fund Group             $  900,470,792 $  934,164,039    13,871       

State Special Revenue Fund Group                                   13,874       

454 200-610 Guidance and Testing  $      490,662 $      503,912    13,879       

455 200-608 Commodity Foods       $    8,000,000 $    8,000,000    13,883       

4V7 200-633 Interagency                                            13,885       

            Vocational Support    $      514,000 $      528,392    13,887       

5F8 200-645 Textbooks/Instructional                                13,888       

            Materials             $   25,000,000 $   25,000,000    13,891       

598 200-659 Auxiliary Services                                     13,893       

            Mobile Units          $    1,224,444 $    1,258,728    13,895       

5H3 200-687 School District                                        13,897       

            Solvency Assistance   $            0 $   30,000,000    13,899       

4R7 200-695 Indirect Cost                                          13,901       

            Recovery              $    1,357,434 $    1,393,146    13,903       

TOTAL SSR State Special Revenue                                    13,904       

   Fund Group                     $   36,586,540 $   66,684,178    13,907       

                                                          309    

                                                                 
Lottery Profits Education Fund Group                               13,910       

017 200-682 Lease Rental Payment                                   13,913       

            Reimbursement         $   21,105,000 $   32,780,000    13,915       

017 200-610 Base Cost Funding     $            0 $  666,093,028    13,919       

017 200-670 School Foundation -                                    13,921       

            Basic Allowance       $  584,137,200 $            0    13,923       

017 200-671 Special Education     $   44,000,000 $            0    13,927       

017 200-672 Vocational Education  $   30,000,000 $            0    13,931       

017 200-673 Primary and Secondary                                  13,933       

            Lottery Funding       $            0 $            0    13,935       

017 200-694 Bus Purchase One Time                                  13,937       

            Supplement            $   10,000,000 $            0    13,939       

018 200-669  Judgment Loan        $    5,650,000 $            0    13,947       

Total 017 and 018                                                  13,948       

   LPE Lottery Profits Education                                   13,949       

   Fund Group                     $  694,892,200 $  698,873,028    13,952       

Education Improvement Fund                                         13,955       

006 200-689 Hazardous Waste                                        13,958       

            Removal               $    1,500,000 $    1,443,401    13,960       

TOTAL Education Improvement Fund  $    1,500,000 $    1,443,401    13,963       

TOTAL ALL BUDGET FUND GROUPS      $6,546,103,513 $6,969,810,612    13,966       

                                   6,541,403,513  6,992,203,730    13,967       

      Professional Development                                     13,970       

      Of the foregoing appropriation item 200-410, Professional    13,972       

Development, $5,997,829 shall be used by the Department of         13,973       

Education to develop a statewide comprehensive system of twelve    13,975       

professional development centers that support local educators'     13,977       

ability to foster academic achievement in the students they                     

serve.  The centers shall include training teachers on site-based  13,979       

management concepts to encourage teachers to become involved in    13,980       

the management of their schools.  Each fiscal year, up to          13,981       

$450,000 of the appropriation item shall be used to continue Ohio  13,982       

leadership academies to develop and train superintendents,         13,983       

principals, other administrators, and board members in new                      

                                                          310    

                                                                 
leadership and management practices to support high performance    13,984       

schools.  This training shall be coordinated with other locally    13,985       

administered leadership programs.                                  13,986       

      Of the foregoing appropriation item 200-410, Professional    13,988       

Development, $50,000 each year shall be distributed to the Ohio    13,990       

Geographical Alliance at such time as matching funds are provided  13,991       

by the National Geographical Society.  These moneys shall be used  13,993       

by the Ohio Geographical Alliance to provide inservice geography   13,995       

training to Ohio public school teachers.                           13,996       

      Of the foregoing appropriation item 200-410, Professional    13,998       

Development, $75,000 in each fiscal year shall be distributed by   14,000       

the Department of Education to the Ohio University Leadership      14,002       

Project.                                                                        

      Of the foregoing appropriation item 200-410, Professional    14,004       

Development, up to $500,000 each year shall be used by the         14,006       

Department of Education to work with school districts in           14,007       

coordinating and improving the training and performance of         14,009       

classroom teachers.                                                             

      Of the foregoing appropriation item 200-410, Professional    14,011       

Development, $25,000 in each fiscal year shall be used by the      14,013       

Lake County Educational Service Center and $25,000 in each fiscal  14,015       

year shall be used by the Geauga County Educational Service        14,016       

Center.  Both projects shall be used for professional teacher      14,018       

development of innovative teaching practices in science and math.               

      Of the foregoing appropriation item 200-410, Professional    14,020       

Development, $500,000 in each fiscal year shall be used by the     14,022       

Rural Appalachian Initiative to create professional development    14,023       

academies for teachers, principals, and superintendents in the     14,025       

Appalachian region.                                                             

      Of the foregoing appropriation item 200-410, Professional    14,027       

Development, up to $1,800,000 in fiscal year 1999 shall be used    14,029       

by the Department of Education in cooperation with the Regional    14,030       

Professional Development Centers to train mentor teachers and      14,032       

provide stipends of $1,500 per year to each mentor teacher to      14,033       

                                                          311    

                                                                 
assist in the professional development of beginning teachers.      14,034       

      Of the foregoing appropriation item 200-410, Professional    14,036       

Development, up to $1,000,000 in fiscal year 1999 shall be used    14,037       

by the Department of Education in cooperation with the Regional    14,039       

Professional Development Centers to train teacher assessors and    14,041       

provide stipends of $2,500 per year to each teacher assessor to    14,042       

assist in the evaluation of the classroom performance of           14,043       

beginning teachers.                                                14,044       

      Of the foregoing appropriation item 200-410, Professional    14,046       

Development, $1,321,292 shall be used by the Department of         14,047       

Education to establish programs targeted at recruiting             14,048       

under-represented populations into the teaching profession.  In    14,049       

each year, the appropriation item shall be used by the department  14,050       

to include, but not be limited to, alternative teacher licensure   14,051       

or certification programs emphasizing the recruitment of highly    14,053       

qualified minority candidates into teaching, including                          

emphasizing the recruitment of highly qualified minority           14,054       

candidates into teaching positions in schools which have a high    14,055       

percentage of minority students.  The recruitment programs shall   14,057       

also target recruiting qualified candidates available as a result               

of downsizing of the military and business sectors.  Funding       14,058       

shall also be targeted to statewide, regional, and local programs  14,059       

that are competitively selected as promising programs              14,060       

demonstrating the potential of significantly increasing Ohio's     14,061       

minority teaching force.                                                        

      Of the foregoing appropriation item 200-410, Professional    14,063       

Development, $500,000 in each fiscal year shall be used to         14,065       

establish or enhance alternative disciplinary schools by           14,066       

providing grants of $100,000 annually to each of the following     14,068       

programs:  Wood County Alternative School Program, Interval        14,069       

Opportunity School in Summit County, Portage County Opportunity    14,071       

School in Ravenna, Auglaize County Alternative School Program,     14,073       

and Licking County Alternative School Program.  Such pilot         14,075       

programs shall encourage collaborative relationships with                       

                                                          312    

                                                                 
juvenile courts and other agencies to develop effective teaching   14,076       

and learning programs.                                                          

      Of the foregoing appropriation item 200-410, Professional    14,078       

Development, $200,000 in each fiscal year shall be provided to     14,080       

the Stark County Schools Teacher Technical Training Center.        14,082       

      Of the foregoing appropriation item 200-410, Professional    14,084       

Development, $9,659,713 shall be distributed on a per teacher      14,085       

basis to all school districts, joint vocational school districts,  14,087       

and chartered nonpublic schools for locally developed teacher                   

training and professional development and for the establishment    14,089       

of local professional development committees.  School districts    14,090       

and joint vocational school districts shall not be precluded from  14,091       

using these funds for cooperative activities on a county or        14,092       

regional basis.                                                                 

      Of the foregoing appropriation item 200-410, Professional    14,094       

Development, $2,875,000 shall be used by the Department of         14,095       

Education to develop a peer review program for teachers, to        14,096       

provide training, and to implement the peer review program in      14,097       

school districts on a pilot basis in fiscal year 1998.  Funds for  14,098       

fiscal year 1999 shall be awarded on a competitive basis to        14,099       

school districts wishing to implement peer review programs.  In    14,100       

each fiscal year, $640,000 shall be distributed to the Regional    14,101       

Professional Development Centers to provide training for mentor    14,102       

teachers and for leadership teams from districts implementing      14,103       

peer review programs.                                              14,104       

      Of the foregoing appropriation item 200-410, Professional    14,106       

Development, $125,000 in each fiscal year shall be used by the     14,107       

Rural Appalachian Initiative to develop a peer review and          14,109       

coaching model whereby teachers coach one another.  In addition,   14,110       

the funds shall be used to train and provide stipends for teacher               

coaches and mentors, and to develop training modules for           14,111       

professional improvement through establishing and attaining        14,112       

goals.                                                                          

      Of the foregoing appropriation item 200-410, Professional    14,114       

                                                          313    

                                                                 
Development, $1,650,000 shall be used by the Department of         14,116       

Education to pay the application fee for teachers from public and  14,118       

chartered nonpublic schools applying to the National Board for     14,119       

Professional Teaching Standards for professional teaching          14,122       

certificates or licenses that the board offers, and to provide     14,123       

grants in each fiscal year to recognize and reward teachers who    14,124       

become certified by the board pursuant to section 3319.55 of the                

Revised Code.                                                      14,125       

      In each fiscal year, the appropriation item shall be used    14,127       

to pay for the first 400 applications received by the department.  14,129       

Each prospective applicant for certification or licensure shall    14,130       

submit an application to the Department of Education.  When the    14,131       

department has collected a group of applications, but no later                  

than 30 days after receipt of the first application in a group,    14,132       

it shall send the applications to the National Board for           14,133       

Professional Teaching Standards along with a check to cover the    14,135       

cost of the application fee for all applicants in that group.      14,136       

      Of the foregoing appropriation item 200-410, Professional    14,138       

Development, up to $300,000 shall be used each fiscal year by the  14,139       

Department of Education to support the connection of teacher       14,140       

applicants to university programs that enhance applicant learning  14,142       

and professional development during the National Board             14,143       

Certification process.                                                          

      Of the foregoing appropriation item 200-410, Professional    14,145       

Development, $2,456,110 shall be used by the Department of         14,147       

Education to expand the pilot residency programs established       14,148       

pursuant to provisions of Am. Sub. H.B. 152 of the 120th General   14,150       

Assembly.                                                                       

      The Department of Education shall select eligible beginning  14,153       

teachers to participate in a year-long entry year program which    14,154       

provides for guidance and coaching by experienced school district  14,155       

and university faculty and regular teacher performance             14,156       

assessment.  The program is designed to assess each beginning      14,157       

teacher with the Education Testing Service's Praxis III            14,158       

                                                          314    

                                                                 
examination.  These funds shall be used to support the             14,159       

supervisory, teaching, and assessment services associated with     14,160       

the pilot residency program in urban, suburban, and rural sites.   14,161       

      Sec. 50.07.  Potential Value Recomputation                   14,166       

      (A)  Notwithstanding division (A)(2) of section 3317.022 of  14,168       

the Revised Code in:                                               14,169       

      (A)  IN fiscal year 1999 the Department of Education shall   14,172       

first calculate all state basic aid payments to school districts   14,173       

required under Chapter 3317. of the Revised Code and other         14,174       

sections of Am. Sub. H.B. 215 and Am. Sub. H.B. 650 of the 122nd   14,176       

General Assembly under which payments are made from appropriation  14,178       

items 200-501, School Foundation Basic Allowance BASE COST         14,179       

FUNDING, and 200-670, School Foundation Basic Allowance BASE COST  14,181       

FUNDING, as if such division (A)(2) OF SECTION 3317.022 OF THE     14,182       

REVISED CODE had not been enacted.  Such calculated amounts shall  14,184       

be paid to school districts in accordance with section 3317.01 of  14,185       

the Revised Code and Am. Sub. H.B. 650 of the 122nd General        14,187       

Assembly.                                                                       

      (B)  After the calculation required by division (A) of this  14,189       

section, the department shall recalculate all state basic aid      14,190       

payments to school districts required under Chapter 3317. of the   14,191       

Revised Code and other sections of Am. Sub. H.B. 215 and Am. Sub.  14,192       

H.B. 650 of the 122nd General Assembly, utilizing in such          14,193       

recalculation the provisions of division (A)(2) of section         14,194       

3317.022 of the Revised Code.  From the additional available       14,195       

money, the THE department shall pay each district FROM             14,196       

APPROPRIATION ITEM 200-501, BASE COST FUNDING, OR 200-670, BASE    14,198       

COST FUNDING, an amount equal to the difference between its        14,200       

calculated amount of basic aid under division (A) of this section  14,201       

and its recalculated amount under this division.  If there is not  14,202       

enough additional money to pay such amounts to all school          14,203       

districts, the department shall pay each district a percentage of  14,204       

such amount equal to the percentage the total amount of            14,205       

additional available money represents of the total amount of       14,206       

                                                          315    

                                                                 
money that would be necessary to make the payments prescribed      14,207       

under this division to all districts.                                           

      THE PAYMENT DETERMINED FOR A DISTRICT PURSUANT TO DIVISION   14,209       

(B) OF THIS SECTION SHALL BE MADE WITHOUT REGARD TO ANY            14,211       

LIMITATION IMPOSED ON PAYMENTS TO DISTRICTS PURSUANT TO DIVISION   14,212       

(B),(C),(D), OR (E) OF SECTION 18 OF AM. SUB. H.B. 650 OF THE      14,216       

122nd GENERAL ASSEMBLY, AS AMENDED BY H.B. 770 OF THE 122nd        14,218       

GENERAL ASSEMBLY.                                                               

      Sec. 50.08.  Pupil Transportation                            14,220       

      Of the foregoing appropriation item 200-502, Pupil           14,222       

Transportation, up to $680,000 may be used by the Department of    14,223       

Education each year for training prospective and experienced       14,224       

school bus drivers in accordance with training programs            14,225       

prescribed by the department; up to $63,500 of the item shall be   14,226       

used each fiscal year for school bus rider safety programs         14,227       

pursuant to sections 3327.16 and 5126.061 of the Revised Code; UP  14,229       

TO $90,000 IN EACH FISCAL YEAR SHALL BE USED FOR THE PUPIL         14,230       

TRANSPORTATION PILOT PROJECT TO DEMONSTRATE INNOVATIVE,            14,231       

EFFICIENT, AND COST-REDUCING COOPERATIVE METHODS OF TRANSPORTING                

PUPILS ON A COUNTYWIDE BASIS; and up to $25,725,000 in fiscal      14,234       

year 1998 and $27,010,000 in fiscal year 1999 shall be used for    14,235       

handicapped transportation; and the remainder shall be used for    14,236       

the state reimbursement of public school districts' costs in       14,237       

transporting pupils to and from the school to which they attend    14,238       

in accordance with the district's policy, State Board of           14,239       

Education standards, and the Revised Code.                                      

      Bus Purchase Allowance                                       14,241       

      The foregoing appropriation item 200-503, Bus Purchase       14,243       

Allowance, shall be distributed to school districts and            14,244       

educational service centers pursuant to rules adopted under        14,246       

section 3317.07 of the Revised Code.  Up to 25 per cent of the     14,247       

amount appropriated may be used to reimburse school districts and  14,248       

educational service centers for the purchase of buses to                        

transport handicapped and nonpublic school students.               14,250       

                                                          316    

                                                                 
      School Lunch                                                 14,252       

      The foregoing appropriation item 200-505, School Lunch       14,254       

Match, shall be used to provide matching funds to obtain federal   14,255       

funds for the school lunch program.                                14,256       

      Sec. 50.09.  Adult Literacy Education                        14,261       

      The foregoing appropriation item 200-509, Adult Literacy     14,263       

Education, shall be used to support Adult Basic and Literacy       14,264       

Education instructional programs, the State Literacy Resource      14,265       

Center program, and the State Advisory Council on Adult Education  14,266       

and Literacy.                                                      14,267       

      Of the foregoing appropriation item 200-509, Adult Literacy  14,270       

Education, up to $410,000 in fiscal year 1998 and $512,500 in      14,271       

fiscal year 1999 shall be used to satisfy state match              14,272       

requirements for the support and operation of the State Literacy   14,273       

Resource Center and the State Advisory Council on Adult Education  14,274       

and Literacy.                                                                   

      Of the foregoing appropriation item 200-509, Adult Literacy  14,277       

Education, up to $50,000 in each fiscal year shall be used to      14,278       

provide funds to literacy councils that have not previously        14,279       

received funding.  Each of these councils, in order to receive     14,280       

funds, shall have its plan of service approved by the local        14,281       

Family and Children First council.                                              

      The remainder shall be used to continue to satisfy the       14,283       

state match requirement for the support and operation of the Ohio  14,284       

Department of Education administered instructional grant program   14,285       

for Adult Basic and Literacy Education in accordance with the      14,286       

department's state plan for Adult Basic and Literacy Education as  14,287       

approved by the State Board of Education and the Secretary of the  14,288       

United States Department of Education.                             14,289       

      Auxiliary Services                                           14,291       

      The foregoing appropriation item 200-511, Auxiliary          14,293       

Services, shall be used by the State Board of Education for the    14,294       

purpose of implementing section 3317.06 of the Revised Code.  Of   14,295       

the appropriation, up to $1,000,000 in each fiscal year of the     14,296       

                                                          317    

                                                                 
biennium may be used for payment of the Post-Secondary Enrollment  14,297       

Options Program for nonpublic students pursuant to section         14,298       

3365.10 of the Revised Code.                                       14,299       

      Driver Education                                             14,301       

      The foregoing appropriation item 200-512, Driver Education,  14,303       

shall be used by the State Board of Education for subsidizing      14,304       

driver education courses for which the State Board of Education    14,305       

prescribes minimum standards pursuant to section 3301.07 of the    14,306       

Revised Code and courses for students released by high school      14,307       

principals to attend commercial driver training schools licensed   14,308       

under Chapter 4508. of the Revised Code.                           14,309       

      Post-Secondary/Adult Vocational Education                    14,311       

      The foregoing appropriation item 200-514,                    14,313       

Post-Secondary/Adult Vocational Education, shall be used by the    14,314       

State Board of Education to provide post-secondary/adult           14,315       

vocational education pursuant to sections 3313.52 and 3313.53 of   14,316       

the Revised Code.                                                  14,317       

      Of the foregoing appropriation item 200-514,                 14,319       

Post-Secondary/Adult Vocational Education, up to $500,000 in each  14,321       

fiscal year shall be allocated for the Ohio Career Information     14,322       

System (OCIS) and used for the dissemination of career             14,323       

information data to public schools, libraries, rehabilitation      14,324       

centers, two- and four-year colleges and universities, and other   14,325       

governmental units.                                                14,326       

      Of the foregoing appropriation item 200-514,                 14,328       

Post-Secondary/Adult Vocational Education, up to $30,000 in each   14,329       

fiscal year shall be used for the statewide coordination of the    14,330       

activities of the Ohio Young Farmers.                                           

      Disadvantaged Pupil Impact Aid                               14,332       

      The foregoing appropriation item 200-520, Disadvantaged      14,334       

Pupil Impact Aid, shall be distributed to school districts         14,335       

according to the provisions of section 3317.029 of the Revised     14,337       

Code.  However, no money shall be distributed for all-day          14,339       

kindergarten to any school district whose three-year average       14,340       

                                                          318    

                                                                 
formula ADM exceeds 17,500 but whose DPIA index is not at least    14,341       

equal to 1.00, unless the Department of Education certifies that   14,342       

sufficient funds exist in this appropriation to make all other     14,344       

payments required by section 3317.029 of the Revised Code.         14,345       

      THE DEPARTMENT OF EDUCATION SHALL PAY TO COMMUNITY SCHOOLS   14,348       

AN AMOUNT FOR ALL-DAY KINDERGARTEN IF THE SCHOOL DISTRICT IN                    

WHICH THE STUDENT IS ENTITLED TO ATTEND SCHOOL IS ELIGIBLE BUT     14,349       

DOES NOT RECEIVE A PAYMENT FOR ALL-DAY KINDERGARTEN, PURSUANT TO   14,350       

DIVISION (B) OF SECTION 3314.13 OF THE REVISED CODE, AND THE       14,351       

STUDENT IS REPORTED BY THE COMMUNITY SCHOOL AS ENROLLED IN         14,352       

ALL-DAY KINDERGARTEN AT THE COMMUNITY SCHOOL.                      14,353       

      Annually, $1,450,000 shall be used by the Department of      14,355       

Education to provide state matching funds to implement the         14,356       

federal building based Effective School Program.                   14,357       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,359       

Pupil Impact Aid, up to $3,000,000 in each year of the biennium    14,360       

shall be used for school breakfast programs.  Of the $3,000,000,   14,361       

UP TO $500,000 shall be used each year by the Department of        14,363       

Education to provide start-up grants to rural school districts     14,364       

that start school breakfast programs.  The remainder of the        14,365       

$3,000,000 shall be used to:  (1) partially reimburse school       14,366       

buildings within school districts that are required to have a                   

school breakfast program pursuant to section 3313.813 of the       14,367       

Revised Code, at a rate decided upon by the department, for each   14,368       

breakfast served to any pupil enrolled in the district; (2)        14,369       

partially reimburse districts participating in the National        14,370       

School Lunch Program that have at least 20 per cent of students                 

who are eligible for free and reduced meals according to federal   14,371       

standards, at a rate decided upon by the department; and (3) to    14,372       

partially reimburse districts participating in the National        14,373       

School Lunch Program for breakfast served to children eligible     14,374       

for free and reduced meals enrolled in the district, at a rate     14,375       

decided upon by the department.                                                 

      Of the portion of the funds distributed to the Cleveland     14,377       

                                                          319    

                                                                 
City School District under section 3317.029 of the Revised Code    14,378       

calculated under division (F)(2) of that section, up to            14,379       

$8,700,000 in fiscal year 1999 shall be used to operate the pilot  14,380       

school choice program in the Cleveland City School District        14,381       

pursuant to sections 3313.974 to 3313.979 of the Revised Code.     14,382       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,384       

Pupil Impact Aid, $8,750,000 in fiscal year 1999 shall be used     14,386       

for competitive discipline intervention grants for the 21 urban                 

school districts as defined in division (O) of section 3317.02 of  14,388       

the Revised Code as it existed prior to July 1, 1998.  The grants  14,389       

shall be administered by the Ohio Department of Education and      14,390       

designed to reduce problems with student attendance, truancy,      14,391       

dropouts, and discipline.                                                       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,393       

Pupil Impact Aid, $250,000 in fiscal year 1999 shall be            14,394       

distributed to the Franklin County Educational Council to provide  14,395       

a cross district alternative learning environment for students     14,396       

with alternative learning requirements, in collaboration with      14,397       

member districts and community services.                           14,398       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,400       

Pupil Impact Aid, $900,000 each year shall be used to support      14,401       

dropout recovery programs administered by the Ohio Department of   14,402       

Education, Jobs for Ohio's Graduates program.                      14,403       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,405       

Pupil Impact Aid, up to $1,000,000 in each year of the biennium    14,406       

shall be used to fund grants to improve reading performance,       14,407       

using programs such as Failure Free Reading, Slavin's Success for  14,408       

All, and other programs that have a demonstrated record of         14,409       

improving reading comprehension.  The grants shall be made by the               

Department of Education to 20 schools in which at least 50 per     14,410       

cent of fourth grade students failed to pass at least four parts   14,411       

of the fourth grade proficiency test.  The grants shall be made    14,412       

in the amount of $50,000 for each school.                          14,413       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,415       

                                                          320    

                                                                 
Pupil Impact Aid, the Department shall distribute $75,000 in each  14,416       

fiscal year to the Collinwood Community Center to continue         14,417       

outreach work on the Parents' Pledge of Responsibility in the      14,418       

Cleveland City School District.  This distribution shall come      14,419       

from the Cleveland City School District's Disadvantaged Pupil      14,420       

Impact Aid.                                                        14,421       

      Of the foregoing appropriation item 200-520, Disadvantaged   14,424       

Pupil Impact Aid, up to $500,000 in each fiscal year shall be      14,425       

used by the Department of Education to encourage school districts  14,426       

to set high academic standards and provide a helping hand for      14,427       

students striving to meet them.   A Summer Proficiency Academy                  

shall be any school district's summer school program that is       14,429       

conducted for students who have been enrolled in the fourth and    14,430       

sixth grades, whether district-wide, in several school buildings   14,431       

or within a cluster of school buildings, that addresses the needs  14,433       

of students who did not pass at least three of the five parts of   14,434       

either the fourth-grade or sixth-grade proficiency test, that is   14,435       

of at least six weeks' duration, and that provides an innovative,  14,436       

enriching educational experience.  The department shall use the    14,437       

funds indicated in this paragraph to make grants to those school   14,438       

districts that conduct such Summer Proficiency Academies and that  14,439       

have valuation per pupil less than 150 per cent of the statewide   14,440       

average valuation per pupil, to defray 75 per cent of the costs    14,441       

of conducting such academies.  The amount of each grant shall not  14,442       

exceed $150,000 and each school district shall be eligible for up  14,443       

to four grants in each fiscal year.  Grants shall be made to       14,444       

school districts based on the percentage of students failing       14,445       

three or more tests, with first priority given to districts with   14,446       

the highest failure rates.  As used in this paragraph, "valuation  14,447       

per pupil" has the same meaning as in division (A)(4) of section   14,449       

3317.0212 of the Revised Code as it existed prior to July 1,       14,450       

1998.                                                                           

      Sec. 50.10.  Gifted Pupil Program                            14,455       

      The foregoing appropriation item 200-521, Gifted Pupil       14,457       

                                                          321    

                                                                 
Program, shall be used for gifted education units not to exceed    14,458       

927 in fiscal year 1998 and 950 in fiscal year 1999.  Up to        14,459       

$70,000 per year shall be used for the operation and support of    14,461       

the Ohio Summer School for the Gifted.  Up to $600,000 per year    14,462       

shall be used for research and demonstration projects.             14,463       

      Notwithstanding the prohibition in section 3317.05 of the    14,465       

Revised Code that the State Board of Education annually approve    14,466       

for school districts and educational service centers no more than  14,467       

the number of gifted education units for which it determines       14,469       

appropriations have been made and notwithstanding the amounts      14,470       

required to be annually paid to school districts and educational   14,471       

service centers for approved gifted education units under          14,472       

division (Q)(P) of section 3317.024 AND DIVISION (B) OF SECTION    14,473       

3317.162 of the Revised Code, if the foregoing appropriation item  14,475       

is not sufficient to fund the maximum allowable number of funded   14,476       

gifted education units in fiscal year 1999 in accordance with      14,478       

division (Q)(P) of section 3317.024 AND DIVISION (B) OF SECTION    14,479       

3317.162 of the Revised Code, the State Board of Education may     14,480       

approve up to the maximum allowable number of funded gifted        14,481       

education units in each fiscal year of the biennium and, in lieu   14,482       

of the amounts required to be paid for approved units under        14,483       

division (Q)(P) of section 3317.024 AND DIVISION (B) OF SECTION    14,485       

3317.162 of the Revised Code, shall proportionately reduce those   14,486       

amounts so that the total amount the State Board and educational   14,487       

service centers pays to school districts for all approved units    14,488       

does not exceed the amount of funds available in the foregoing     14,489       

appropriation item for such units.  During the course of each      14,490       

fiscal year, the State Board may alter its determination of any    14,491       

reduction under this section for that fiscal year.                 14,492       

      Of the foregoing appropriation item 200-521, Gifted Pupil    14,494       

Program, the Department of Education shall be authorized to        14,495       

expend up to $1,000,000 each year for the Summer Honors Institute  14,496       

for gifted freshmen and sophomore high school students.            14,497       

      Of the foregoing appropriation item 200-521, Gifted Pupil    14,499       

                                                          322    

                                                                 
Program, up to $200,000 each year shall be used for the W.E.B.     14,501       

DuBois Talented Tenth Teacher Training Academy.  The program will  14,502       

provide a summer honors program to promising minority students     14,503       

identified by their school districts as potential future           14,504       

teachers, pursuant to section 3313.608 of the Revised Code.        14,505       

      Sec. 50.12.  Educational Excellence and Competency           14,510       

      Of the foregoing appropriation item 200-524, Educational     14,512       

Excellence and Competency, up to $35,000 in each year of the       14,513       

biennium shall be reserved for the Ohio Science Olympiad and up    14,514       

to $35,000 in each year of the biennium shall be reserved for the  14,515       

International Science and Engineering Fair.  In each year of the   14,516       

biennium, $250,000 shall be reserved for a Math and Science        14,517       

Initiative to enhance math and science education for elementary    14,518       

students in a county-wide collaborative.                           14,519       

      The Department of Education shall distribute $100,000 in     14,521       

fiscal year 1998 and $150,000 in fiscal year 1999 to the           14,522       

Christopher Project.  The department shall distribute $120,000 in  14,523       

each fiscal year to the Regional District/University Consortium    14,524       

to Validate At-Risk Programs for Rural School Districts.  The      14,525       

Department shall distribute $75,000 in each fiscal year to the     14,526       

Cincinnati Artworks Project.  In fiscal year 1998, $100,000 shall  14,527       

be used for the Fairborn Community Vision and $300,000 in fiscal   14,528       

year 1998 and $100,000 in fiscal year 1999 shall be used for       14,529       

Ledgemont Education Excellency.  In addition, the department                    

shall distribute $275,000 in each fiscal year to the Summit        14,530       

County Technology Project.                                         14,531       

      In each fiscal year, $300,000 shall be used for a pilot      14,533       

project for the integration and implementation of distance         14,534       

learning, virtual reality, and computer technology to prepare      14,535       

students for careers in industry.  Of this amount, $65,000 in      14,536       

each fiscal year shall be distributed to the Math, Science and     14,537       

Industrial Technology Institute at Kent State University-Trumbull  14,538       

Campus for purposes of this pilot project and $235,000 in each     14,539       

fiscal year shall be distributed to the Trumbull County            14,540       

                                                          323    

                                                                 
Educational Service Center for the Industrial Technology Career    14,541       

Academy pilot project.  In each fiscal year, $140,000 shall be     14,542       

used for the Crouse School Readiness Program.                      14,543       

      Of the foregoing appropriation item 200-524, Educational     14,545       

Excellence and Competency, $90,000 in fiscal year 1998 shall be    14,546       

used for the Cleveland Language pilot program; and $20,000 in      14,547       

fiscal year 1998 shall be used for the Columbus Language pilot     14,548       

program.                                                                        

      Of the foregoing appropriation item 200-524, Educational     14,551       

Excellence and Competency, $850,000 in fiscal year 1998 and        14,552       

$850,000 in fiscal year 1999 shall be used to assist local school  14,553       

districts in the implementation of financial literacy programs as  14,554       

part of the school curriculum in kindergarten through grade six.   14,555       

The funds shall be used to purchase financial literacy             14,556       

instructional materials, including student books, hands-on         14,557       

material, and supporting teacher guides, which promote economic    14,558       

awareness by addressing fundamental life skills such as earning                 

money, saving money, and spending money wisely.  The financial     14,559       

literacy curriculum shall also introduce students to the concepts  14,560       

of economic interdependence, profit, loss, investment, and supply  14,561       

and demand.  In fiscal year 1999, each school district shall be    14,562       

eligible for one $1,000 grant for each kindergarten through sixth  14,563       

grade level in each school building.  A school building with five  14,565       

or more classes per grade level may receive up to $2,000 for that  14,566       

grade level.                                                                    

      The remainder of the appropriation shall be used by the      14,568       

Department of Education to fund programs for at-risk students      14,569       

each year as follows:                                              14,570       

      Earn and Learn                            $1,030,000         14,572       

      Trumbull County "Make Learning Fun"          $75,000         14,573       

      LEAF                                         $65,000         14,574       

      Coventry                                     $25,000         14,575       

      Columbus Youth Corp                          $50,000         14,576       

      Montgomery County Summer Math program       $215,000         14,577       

                                                          324    

                                                                 
      Columbus City District's "I Know I Can"     $645,000         14,578       

      Dayton-Montgomery County Scholarship                         14,579       

      Program                                     $645,000                      

      Cleveland Scholarship                       $500,000         14,580       

      Cleveland Initiative for Education          $360,000         14,581       

      Cincinnati Project Succeed Academy          $100,000         14,582       

      Cincinnati Scholarship Foundation           $645,000         14,583       

      Improved Solutions for Urban Systems                         14,584       

      (ISUS)                                      $100,000                      

      Lorain County Access                        $150,000         14,585       

      Amer-I-Can                                  $850,000         14,586       

      London Learns                               $100,000         14,587       

      Project Succeed                           $1,000,000         14,588       

      Greater Toledo School-To-Work                                14,589       

      Consortium                                  $100,000                      

      Muskingum Valley Services Center            $100,000         14,590       

      For the Cleveland Initiative in Education program, the       14,593       

grant shall support its mentoring and advocacy program.            14,594       

      Of the foregoing appropriation item 200-524, Educational     14,596       

Excellence and Competency, $83,000 in fiscal year 1998 and         14,597       

$83,000 in fiscal year 1999 shall be used for the Shaker Heights   14,598       

Educational Mobility program.                                      14,599       

      Each program or entity that receives funds under the         14,601       

foregoing appropriation item 200-524, Educational Excellence and   14,603       

Competency, shall submit annually to the chairpersons of the       14,604       

education committees of the House of Representatives and the       14,605       

Senate and to the Department of Education a report that includes   14,606       

a description of the services supported by the funds, a            14,607       

description of the results achieved by those services, an          14,608       

analysis of the effectiveness of the program, and an opinion as    14,609       

to the program's applicability to other school districts.  No      14,610       

funds shall be provided by the Department of Education to a        14,611       

district for the fiscal year 1999 until its report for the fiscal  14,613       

year 1998 has been submitted.                                                   

                                                          325    

                                                                 
      Nonpublic Administrative Cost Reimbursement                  14,615       

      The foregoing appropriation item 200-532, Nonpublic          14,617       

Administrative Cost Reimbursement, shall be used by the State      14,618       

Board of Education for the purpose of implementing section         14,619       

3317.063 of the Revised Code.                                      14,620       

      School-Age Child Care                                        14,623       

      Of the foregoing appropriation item 200-533, School-Age      14,625       

Child Care, up to $200,000 in each fiscal year shall be used for   14,626       

the "Training Ohio's Parents for Success" program.  Up to          14,627       

$500,000 in each fiscal year shall be used for the "Parents as     14,629       

Teachers" program.                                                              

      Of the foregoing appropriation item 200-533, School-Age      14,631       

Child Care, up to $62,500 in each fiscal year shall be used by     14,632       

the Cincinnati YWCA for its Home Instruction Program for           14,633       

Preschool Youngsters (HIPPY).                                                   

      As used under this heading "school-age child care" means a   14,635       

program of child care conducted outside of regular school hours    14,636       

for school age children.                                           14,637       

      The remainder of the foregoing appropriation item 200-533,   14,639       

School-Age Child Care, shall be used by the Department of          14,640       

Education to provide grants to city, local, and exempted village   14,641       

school districts and educational service centers for school-age    14,642       

child care programs.  In each fiscal year, the department shall    14,643       

make grants.  All grants shall be awarded by the department on     14,645       

the basis of project proposals submitted by school district        14,646       

boards of education or educational service center governing                     

boards.  The board of education of each district or governing      14,648       

board of each educational service center that receives a grant     14,649       

shall keep a record of how the grant is used, and issue a report   14,650       

at the end of the school year for which the grant was made         14,651       

explaining the goals and objectives determined, the activities     14,652       

implemented, and the progress made toward achieving goals and      14,653       

objectives.                                                                     

      Desegregation Costs                                          14,655       

                                                          326    

                                                                 
      The foregoing appropriation item 200-534, Desegregation      14,657       

Costs, shall be used to pay desegregation costs.                   14,658       

      (A)  Notwithstanding any section of law to the contrary, if  14,661       

in each fiscal year, due to federal court order, the Department    14,662       

of Education is obligated to pay for desegregation costs in any    14,663       

school district, the costs shall be paid from the foregoing        14,664       

appropriation item 200-534, Desegregation Costs.                   14,665       

      Of the foregoing appropriation item 200-534, Desegregation   14,667       

Costs, up to $900,000 in fiscal year 1998 and up to $1,000,000 in  14,669       

fiscal year 1999 may be used to cover the legal fees associated    14,670       

with desegregation cases brought against the state.                14,671       

      OF THE FOREGOING APPROPRIATION ITEM 200-534, DESEGREGATION   14,673       

COSTS, IN FISCAL YEAR 1999 ANY UNOBLIGATED BALANCES MAY BE USED    14,674       

TO COVER THE LEGAL FEES ASSOCIATED WITH DESEGREGATION CASES        14,675       

BROUGHT AGAINST THE STATE.                                         14,676       

      By May 1 of each year, the Department of Education will      14,678       

determine if the appropriation exceeds the state's obligation for  14,679       

desegregation costs.  Any appropriations in excess of the state's  14,680       

obligation shall be transferred to appropriation item 200-406,     14,681       

Head Start, by the Director of Budget and Management.              14,682       

      (B)  As part of managing state desegregation costs, any      14,684       

board of education of a school district subject to a federal       14,685       

court desegregation order that requires the district board to bus  14,686       

students for the purpose of racial balance shall, within one year  14,687       

of the effective date of Am. Sub. H.B. 215 of the 122nd General    14,688       

Assembly:                                                                       

      (1)  Update its plan required under Am. Sub. H.B. 298 of     14,690       

the 119th General Assembly designed to satisfy the court so as to  14,691       

obtain release from the court's desegregation order; and           14,692       

      (2)  Submit an updated copy of the plan to the State Board   14,694       

of Education.                                                      14,695       

Upon request of the district board, the State Board shall provide  14,698       

technical assistance to the school district board in developing a  14,699       

plan.                                                                           

                                                          327    

                                                                 
      Within ninety days of the date on which the plan is          14,701       

submitted to the State Board of Education, the district board, or  14,702       

the district board and the State Board of Education jointly if     14,704       

both are parties to the desegregation case, shall submit the plan  14,706       

to the court and apply for release from the court's desegregation  14,707       

order.                                                                          

      Of the foregoing appropriation item 200-534, Desegregation   14,709       

Costs, Cleveland City Schools shall receive $40,000,000 in fiscal  14,710       

year 1998 and $38,200,000 in fiscal year 1999; Dayton City         14,712       

Schools shall receive at least $4,500,000 in each of fiscal year                

1998 and fiscal year 1999.                                         14,713       

      Of the foregoing appropriation item 200-534, Desegregation   14,716       

Costs, $5,000,000 in each fiscal year shall be used by the         14,717       

Department of Education to support the Cincinnati Magnet School    14,718       

Program.                                                                        

      Sec. 50.13.  Special Education Enhancements                  14,723       

      Of the foregoing appropriation item 200-540, Special         14,725       

Education Enhancements, up to $42,000,000 shall be used to fund    14,727       

up to 894 special education classroom and related services units                

at MR/DD boards and institutions.                                  14,728       

      Of the foregoing appropriation item 200-540, Special         14,730       

Education Enhancements, up to $22,000,000 in each fiscal year      14,732       

1998 SHALL BE USED FOR HOME INSTRUCTION AND SPECIAL INSTRUCTIONAL  14,734       

SERVICES FOR HANDICAPPED CHILDREN AND $3,000,000 IN FISCAL YEAR    14,735       

1999 shall be used for home instruction and special instructional  14,737       

services for handicapped children; up to $2,000,000 may be used    14,738       

in each fiscal year 1998 for occupational and physical therapy     14,740       

contract services, including services provided by physical                      

therapy assistants and certified occupational therapy assistants;  14,741       

up to $1,000,000 in fiscal year 1998 and up to $1,150,000 in       14,743       

fiscal year 1999 shall be used for parent mentoring programs; and  14,744       

$100,000 shall be expended in each year of the biennium for        14,746       

teacher training; AND UP TO $2,500,000 MAY BE USED IN FISCAL YEAR  14,748       

1999 FOR SCHOOL PSYCHOLOGY INTERNS.                                             

                                                          328    

                                                                 
      Of the foregoing appropriation item 200-540, Special         14,750       

Education Enhancements, $1,684,212 in fiscal year 1999 shall be    14,752       

used by the Department of Education to assist school districts in  14,753       

funding aides pursuant to paragraph (A)(3)(c)(i)(b) of Rule        14,754       

3301-51-04 of the Administrative Code.                             14,755       

      Of the foregoing appropriation item 200-540, Special         14,757       

Education Enhancements, $67,352,278 shall be distributed by the    14,759       

Department of Education to county boards of mental retardation     14,760       

and developmental disabilities, educational service centers, and   14,761       

school districts for preschool special education units and         14,762       

preschool supervisory units in accordance with section 3317.161    14,763       

of the Revised Code.  The department may reimburse county boards   14,764       

of mental retardation and developmental disabilities, educational  14,765       

service centers, and school districts for related services as      14,766       

defined in Rule 3301-01-05 of the Ohio Administrative Code, for    14,767       

preschool occupational and physical therapy services provided by   14,768       

a physical therapy assistant and certified occupational therapy    14,769       

assistant, and for an instructional assistant.  To the greatest    14,770       

extent possible, the Department of Education shall allocate these  14,771       

units to school districts and educational service centers.  The    14,772       

Controlling Board may approve the transfer of unallocated funds    14,773       

from appropriation item 200-501, Base Cost Funding, to             14,774       

appropriation item 200-540, Special Education Enhancements, to     14,776       

fully fund existing units as necessary or to fully fund            14,777       

additional units.  The Controlling Board may approve the transfer  14,778       

of unallocated funds from appropriation item 200-540, Special      14,780       

Education Enhancements, to appropriation item 200-501, Base Cost   14,781       

Funding, to fully fund existing units, as necessary, or to fully   14,783       

fund additional units.                                                          

      Sec. 50.14.  Vocational Education Enhancements               14,788       

      Of the foregoing appropriation item 200-545, Vocational      14,790       

Education Enhancements, up to $125,000,000 $134,000,000 shall be   14,792       

used to fund up to 2,800 3,000 vocational education units,         14,793       

INCLUSIVE OF GRADS UNITS, at joint vocational school districts     14,796       

                                                          329    

                                                                 
and up to $2,300,000 shall be used to fund up to 51 vocational                  

education units at institutions.  Up to $7,500,000 in fiscal year  14,798       

1999 may be used for nonvocational units necessary for graduation  14,799       

pursuant to section 3317.16 of the Revised Code, up to $6,500,000  14,800       

in fiscal year 1999 shall be used for joint vocational school      14,802       

equalization pursuant to section 3317.16 of the Revised Code, up   14,803       

to $300,000 shall be distributed to the Toledo Technology Academy  14,804       

each fiscal year, up to $9,500,000 in fiscal year 1999 shall be    14,805       

used to fund the Jobs for Ohio Graduates (JOG) program, up to      14,806       

$2,205,000 in fiscal year 1999 may be used to support tech prep    14,808       

consortia, and up to $7,193,118 in fiscal year 1999 shall be used  14,810       

to fund the Graduation, Reality, and Dual Role Skills (GRADS)      14,811       

program according to that program's rules, which shall be          14,812       

developed by the Superintendent of Public Instruction.  Up to      14,813       

$3,100,000 $4,600,000 may be used to pay for special education     14,814       

classroom and related services units at joint vocational schools.  14,815       

      Funds for nonvocational units necessary for graduation       14,817       

shall be distributed according to rules adopted by the State       14,818       

Board of Education.  If federal funds for vocational education     14,820       

cannot be used for local school district leadership without being  14,821       

matched by state funds, then an amount as determined by the                     

Superintendent of Public Instruction shall be made available from  14,823       

state funds appropriated for vocational education.  If any state   14,824       

funds are used for this purpose, federal funds in an equal amount  14,825       

shall be distributed for vocational education in accordance with   14,826       

authorization of the state plan for vocational education for Ohio  14,827       

as approved by the Secretary of the United States Department of    14,829       

Education.                                                                      

      The Legislative Office of Education Oversight shall study    14,832       

the various programs designed to serve at-risk high school         14,833       

students.  Differences and possible overlaps of purposes, goals,   14,834       

objectives and strategies among such programs as Jobs for Ohio     14,836       

Graduates (JOG), Graduation, Reality, and Dual Role Skills         14,839       

(GRADS), Occupational Work Experience (OWE), and Occupational      14,840       

                                                          330    

                                                                 
Work Adjustment (OWA) will be identified.                          14,841       

      Of the foregoing appropriation item 200-545, Vocational      14,843       

Education Enhancements, $100,000 in fiscal year 1998 shall be      14,845       

used for the Cuyahoga County Vocational Apprenticeship Program,    14,847       

which provides funding for training in the building trades of      14,849       

eligible residents of the City of Cleveland.  The program          14,850       

utilizes new housing development and rehabilitation programs of    14,851       

four nonprofit neighborhood development corporations as the focus  14,852       

of the skills training apprenticeship program.  The four           14,853       

neighborhood development corporations participating in the         14,854       

program are the Glenville Development Corporation, Northeastern    14,856       

Neighborhood Development Corporation, Bell, Burton, and Carr       14,857       

Development Corporation, and the Buckeye Area Development          14,859       

Corporation.                                                                    

      Of the foregoing appropriation item 200-545, Vocational      14,861       

Education Enhancements, $5,851,692 in fiscal year 1999 shall be    14,863       

used to enable students to develop career plans, to identify       14,864       

initial educational and career goals, and to develop a career                   

passport which provides a clear understanding of the student's     14,865       

knowledge, skills, and credentials to present to future            14,866       

employers, universities, and other training institutes.            14,867       

      The amount of $5,851,692 shall be allocated to school        14,869       

districts pursuant to guidelines developed by the Department of    14,871       

Education for programs described in section 3313.607 of the        14,873       

Revised Code for children in the kindergarten through twelfth      14,874       

grades.  Funds so allocated shall be used for educational          14,875       

materials, services, career information, curriculum development,                

staff development, mentorships, career exploration, and career     14,876       

assessment instruments as needed to develop individualized career  14,877       

plans and passports.                                                            

      Of the foregoing appropriation item 200-545, Vocational      14,879       

Education Enhancements, $4,941,622 shall be used to provide an     14,881       

amount to each eligible school district for the replacement or                  

updating of equipment essential for the instruction of students    14,882       

                                                          331    

                                                                 
in job skills taught as part of a vocational program or programs   14,883       

approved for such instruction by the State Board of Education.     14,885       

School districts replacing or updating vocational education        14,886       

equipment may purchase or lease such equipment.  The Department    14,887       

of Education shall review and approve all equipment requests and   14,888       

may allot appropriated funds to eligible school districts on the   14,890       

basis of the number of units of vocational education in all        14,891       

eligible districts making application for funds.                   14,892       

      The State Board of Education may adopt standards of need     14,895       

for equipment allocation.  Pursuant to the adoption of any such                 

standards of need by the State Board of Education, appropriated    14,897       

funds may be allotted to eligible districts according to such                   

standards.  Equipment funds allotted under either process shall    14,898       

be provided to a school district on a 40, 50, or 60 per cent of    14,899       

cost on the basis of a district vocational priority index rating   14,900       

developed by the Department of Education for all districts each    14,902       

year.  The vocational priority index shall give preference to                   

districts with a large percentage of disadvantaged students and    14,903       

shall include other socio-economic factors as determined by the    14,904       

State Board of Education.                                          14,905       

      Of the foregoing appropriation item 200-545, Vocational      14,907       

Education Enhancements, up to $17,000,000 $24,193,118 in fiscal    14,909       

year 1999 shall be used for the Vocational Education Programs      14,911       

set-aside, from which moneys shall be distributed PROVIDE FUNDS    14,913       

to school districts for vocational education programs in           14,914       

comprehensive high schools AND WHICH SHALL INCLUDE THE             14,915       

GRADUATION, REALITY AND DUAL ROLE SKILLS (GRADS) PROGRAM           14,916       

ACCORDING TO THAT PROGRAM'S RULES, WHICH SHALL BE DEVELOPED BY     14,917       

THE SUPERINTENDENT OF PUBLIC INSTRUCTION.  In addition to any      14,919       

other payments made under Chapter 3317. of the Revised Code, any                

city, local, or exempted village school district providing an      14,920       

approved vocational education program may receive a supplemental   14,921       

vocational education payment from the set-aside for the purpose    14,922       

of meeting additional costs of providing vocational education.     14,923       

                                                          332    

                                                                 
The moneys shall be distributed in accordance with rules adopted   14,924       

by the Superintendent of Public Instruction.  The rules shall                   

specify the vocational education related purposes for which the    14,925       

moneys received may be expended and may establish a system of      14,926       

prioritizing the distribution of moneys.                           14,927       

      Reading Improvement                                          14,929       

      The foregoing appropriation item 200-551, Reading            14,931       

Improvement, shall be used by the Department of Education to fund  14,932       

the Reading Recovery training network, to cover the cost of        14,933       

release time for the teacher trainers, and to provide grants to    14,934       

districts to implement other reading improvement programs on a     14,936       

pilot basis.  Funds for this appropriation item may also be used   14,938       

to conduct evaluations of the impact and effectiveness of Reading  14,939       

Recovery and other reading improvement programs.                   14,940       

      In addition, the Department of Education shall report to     14,942       

the General Assembly and the Governor each fiscal year on the      14,943       

progress that has been made in implementing these programs,        14,944       

including an evaluation of the effectiveness of the programs.      14,945       

      Twenty per cent of the foregoing appropriation item          14,947       

200-551, Reading Improvement, shall be used for the continuation   14,948       

of a phonics demonstration project as described in Sub. H.B. 81    14,949       

of the 121st General Assembly.  The Department of Education may    14,951       

make a portion of the funds for the demonstration project          14,952       

available to additional school districts that want to participate  14,953       

in the program that did not receive funding under the original     14,954       

project authorized in Sub. H.B. 81 of the 121st General Assembly.  14,955       

      County MR/DD Boards-Vehicle Purchases                        14,957       

      The foregoing appropriation item 200-552, County MR/DD       14,959       

Boards-Vehicle Purchases, shall be used to provide financial       14,960       

assistance to MR/DD boards for the purchase of vehicles as         14,961       

permitted in section 3317.07 of the Revised Code.                  14,962       

      The foregoing appropriation item 200-553, County MR/DD       14,964       

Boards-Transportation Operating, shall be used to provide          14,965       

financial assistance for transportation operating costs as         14,966       

                                                          333    

                                                                 
provided in section 3317.024 of the Revised Code.                  14,967       

      Emergency Loan Interest Subsidy                              14,969       

      The foregoing appropriation item 200-558, Emergency Loan     14,971       

Interest Subsidy, shall be used to provide a subsidy to school     14,973       

districts receiving emergency school loans pursuant to section                  

3313.484 of the Revised Code.  The subsidy shall be used to pay    14,974       

these districts the difference between the amount of interest the  14,976       

district is paying on an emergency loan, and the interest that     14,977       

the district would have paid if the interest rate on the loan had  14,978       

been two per cent.                                                              

      Auxiliary Services Mobile Repair                             14,980       

      Notwithstanding section 3317.064 of the Revised Code, if     14,982       

the unobligated cash balance is sufficient then the Treasurer of   14,983       

State shall transfer $1,500,000 in fiscal year 1998 within thirty  14,984       

days of the effective date of this section and $1,500,000 in       14,985       

fiscal year 1999 by August 1, 1998, from the Auxiliary Services    14,986       

Personnel Unemployment Compensation Fund to the Department of      14,987       

Education's Auxiliary Services Mobile Repair Fund (Fund 598).      14,988       

      Sec. 50.24.  Lottery Profits                                 14,993       

      (A)  There is hereby created the Lottery Profits Education   14,995       

Reserve Fund (Fund 018) in the State Treasury.  At no time shall   14,996       

the amount to the credit of the fund exceed $50,000,000.           14,998       

Investment earnings of the Lottery Profits Education Reserve Fund  14,999       

shall be credited to the fund.  Notwithstanding any provisions of  15,000       

law to the contrary, for fiscal years 1998 and 1999, there is      15,002       

hereby appropriated to the Department of Education, from the       15,003       

Lottery Profits Education Reserve Fund, an amount necessary to     15,004       

make loans authorized by sections 3317.0210, 3317.0211, and        15,005       

3317.62 of the Revised Code.  All loan repayments from loans made  15,006       

in fiscal years 1992, 1993, 1994, 1995, 1996, 1997, or 1998 shall  15,007       

be deposited into the credit of the Lottery Profits Education      15,009       

Reserve Fund.                                                                   

      (B)  On or before July 15, 1998, the Director of Budget and  15,011       

Management shall determine the amount by which lottery profit      15,012       

                                                          334    

                                                                 
transfers received by the Lottery Profits Education Fund for       15,013       

fiscal year 1998 exceed $679,417,200.  The amount so determined    15,014       

shall be distributed in fiscal year 1999 pursuant to divisions     15,015       

(C)(E) and (D)(F) of this section.                                 15,016       

      The Director of Budget and Management shall annually         15,018       

certify the amounts determined pursuant to this section to the     15,019       

Speaker of the House of Representatives and the President of the   15,020       

Senate.                                                            15,021       

      (C)  NOT LATER THAN JANUARY 16, 1998, THE DEPARTMENT OF      15,025       

EDUCATION, IN CONSULTATION WITH THE DIRECTOR OF BUDGET AND         15,027       

MANAGEMENT, SHALL DETERMINE, BASED UPON ESTIMATES, IF A                         

REALLOCATION OF FUNDS AS DESCRIBED IN THE SECTION TITLED           15,029       

"REALLOCATION OF FUNDS" OF AM. SUB. H.B. 215 OF THE 122nd GENERAL  15,030       

ASSEMBLY IS REQUIRED.                                              15,031       

      IF A REALLOCATION OF FUNDS IS REQUIRED, THEN THE             15,034       

SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL REQUEST CONTROLLING     15,036       

BOARD APPROVAL FOR A RELEASE OF ANY BALANCES IN THE LOTTERY        15,037       

PROFITS EDUCATION FUND AVAILABLE FOR THE PURPOSE OF THIS DIVISION  15,038       

AND PURSUANT TO DIVISIONS (C)(1) AND (2) OF THE SECTION TITLED     15,040       

"REALLOCATION OF FUNDS" OF AM. SUB. H.B. 215.  ANY MONEYS SO       15,042       

RELEASED ARE HEREBY APPROPRIATED.                                  15,043       

      (D)  IN FISCAL YEAR 1998, IF THE DEPARTMENT OF EDUCATION     15,046       

DOES NOT DETERMINE THAT A REALLOCATION OF FUNDS IS NECESSARY BY    15,048       

JANUARY 16, AS PROVIDED IN DIVISION (C) OF THIS SECTION, OR IF     15,049       

THERE IS A BALANCE IN THE LOTTERY PROFITS EDUCATION FUND AFTER     15,051       

THE RELEASE OF ANY AMOUNT NEEDED TO PRECLUDE A REALLOCATION OF     15,052       

FUNDS AS PROVIDED IN DIVISION (C) OF THIS SECTION, THE MONEYS IN   15,053       

THE LOTTERY PROFITS EDUCATION FUND SHALL BE ALLOCATED AS PROVIDED  15,055       

IN THIS DIVISION.  ANY AMOUNTS SO ALLOCATED ARE HEREBY             15,056       

APPROPRIATED.                                                      15,057       

      (1)  AN AMOUNT EQUAL TO FIVE PER CENT OF THE ESTIMATED       15,059       

LOTTERY PROFITS OF $661,200,000 IN FISCAL YEAR 1997 OR THE AMOUNT  15,060       

REMAINING IN THE FUND, WHICHEVER IS THE LESSER AMOUNT, SHALL BE    15,061       

TRANSFERRED TO THE LOTTERY PROFITS EDUCATION RESERVE FUND WITHIN   15,063       

                                                          335    

                                                                 
THE LIMITATIONS SPECIFIED IN DIVISION (A) OF THIS SECTION AND BE   15,064       

RESERVED AND SHALL NOT BE AVAILABLE FOR ALLOCATION OR              15,065       

DISTRIBUTION DURING FISCAL YEAR 1998.  ANY AMOUNTS EXCEEDING       15,066       

$50,000,000 SHALL BE DISTRIBUTED PURSUANT TO DIVISIONS (D)(2),     15,067       

(3), AND (4) OF THIS SECTION.                                      15,068       

      (2)  AFTER RESERVING THE REQUIRED AMOUNT UNDER DIVISION      15,071       

(D)(1) OF THIS SECTION, AN AMOUNT EQUAL TO $25,000,000 OR THE                   

UNRESERVED AMOUNT REMAINING IN THE FUND, WHICHEVER IS THE LESSER   15,072       

AMOUNT, SHALL BE TRANSFERRED TO THE PUBLIC SCHOOL BUILDING FUND    15,075       

(FUND 021) TO BE ALLOCATED AND DISTRIBUTED IN ACCORDANCE WITH      15,076       

CHAPTER 3318. OF THE REVISED CODE.  THE SCHOOL FACILITIES          15,077       

COMMISSION SHALL SUBMIT ANNUALLY A REPORT TO THE GOVERNOR AND      15,078       

GENERAL ASSEMBLY ON THE USE OF THESE FUNDS.  THE REPORT SHALL      15,079       

INCLUDE FOR EACH PROJECT, A DESCRIPTION OF THE NEED FOR THE        15,080       

PROJECT, THE TOTAL COST, THE STATE AND LOCAL SHARE OF THE COST,    15,081       

AND THE PROJECT REPAYMENT SCHEDULE.                                15,082       

      (3)  AFTER THE ALLOCATION UNDER DIVISION (D)(2) OF THIS      15,084       

SECTION, AN AMOUNT EQUAL TO $20,000,000 OR THE UNRESERVED AMOUNT   15,085       

REMAINING IN THE FUND, WHICHEVER IS THE LESSER AMOUNT, SHALL BE    15,086       

ALLOCATED TO THE SCHOOL FACILITIES COMMISSION TO ASSIST SCHOOL     15,088       

DISTRICTS IN COMPLYING WITH FEDERAL REGULATIONS ON ASBESTOS        15,089       

ABATEMENT AND REMOVAL AND TO ASSIST SCHOOL DISTRICTS IN MAKING     15,090       

SCHOOL BUILDINGS ACCESSIBLE TO THE HANDICAPPED.                    15,091       

      (4)  AFTER THE ALLOCATION UNDER DIVISION (D)(3) OF THIS      15,093       

SECTION, THE UNRESERVED AMOUNT REMAINING IN THE FUND SHALL BE      15,094       

DISTRIBUTED PURSUANT TO DIVISION (G) OF THIS SECTION.              15,095       

      (E)  Not later than January 16, 1999, the Department of      15,097       

Education, in consultation with the Director of Budget and         15,098       

Management, shall determine, based upon estimates, if a            15,099       

reallocation of funds as described in the section titled           15,100       

"Reallocation of Funds" of Am. Sub. H.B. 215 of the 122nd General  15,101       

Assembly is required.                                              15,102       

      If a reallocation of funds is required, then the             15,104       

Superintendent of Public Instruction shall request Controlling     15,105       

                                                          336    

                                                                 
Board approval for a release of any balances in the Lottery        15,106       

Profits Education Fund available for the purpose of this division  15,107       

and pursuant to divisions (C)(1) and (2) of the section titled     15,108       

"Reallocation of Funds" of AM. SUB. H.B. 215.  Any moneys so       15,110       

released are hereby appropriated.                                               

      (D)(F)  In fiscal year 1999, if the Department of Education  15,112       

does not determine that a reallocation of funds is necessary by    15,113       

January 16, as provided in division (C)(E) of this section, or if  15,115       

there is a balance in the Lottery Profits Education Fund after                  

the release of any amount needed to preclude a reallocation of     15,116       

funds as provided in division (C)(E) of this section, the moneys   15,118       

in the Lottery Profits Education Fund shall be allocated as                     

provided in this division.  Any amounts so allocated are hereby    15,119       

appropriated.                                                                   

      (1)  An amount equal to five per cent of the estimated       15,121       

lottery profits transfers of $679,417,200 in fiscal year 1998 or   15,122       

the amount remaining in the fund, whichever is the lesser amount,  15,123       

shall be transferred to the Lottery Profits Education Reserve      15,124       

Fund within the limitations specified in division (A) of this      15,125       

section and be reserved and shall not be available for allocation  15,126       

or distribution during fiscal year 1999.  Any amounts exceeding    15,127       

$50,000,000 shall be distributed pursuant to divisions (D)(F)(2),  15,129       

(3), and (4) of this section.                                                   

      (2)  After reserving the required amount under division      15,132       

(D)(F)(1) of this section, an amount equal to $25,000,000 or the   15,133       

unreserved amount remaining in the fund, whichever is the lesser   15,134       

amount, shall be transferred to the School Building Fund (Fund     15,135       

021) to be allocated and distributed in accordance with Chapter    15,136       

3318. of the Revised Code.  The School Facilities Commission       15,138       

shall submit annually a report to the Governor and General         15,139       

Assembly on the use of these funds.  The report shall include for  15,140       

each project, a description of the need for the project, the       15,141       

total cost, the state and local share of the cost, and the         15,142       

project repayment schedule.                                        15,143       

                                                          337    

                                                                 
      (3)  After the allocation under division (D)(F)(2) of this   15,145       

section, an amount equal to $20,000,000 or the unreserved amount   15,146       

remaining in the fund, whichever is the lesser amount, shall be    15,147       

allocated to the School Facilities Commission to assist school     15,149       

districts in complying with federal regulations on asbestos        15,150       

abatement and removal and to assist school districts in making     15,151       

school buildings accessible to the handicapped.                    15,152       

      (4)  After the allocation under division (D)(F)(3) of this   15,154       

section, the amount remaining in the fund shall be distributed     15,155       

pursuant to division (E)(G) of this section.                       15,156       

      (E)(G)  In the appropriate fiscal year, any remaining        15,158       

amounts after the operations required by division (C)(D) or        15,160       

(D)(F) of this section, respectively, shall be available for       15,161       

distribution in accordance with this division.                     15,162       

      (1)  As used in this division:                               15,164       

      (a)  "State basic aid" means the amount computed for a       15,167       

district under sections 3317.022, 3317.023, and 3317.025 to                     

3317.028 of the Revised Code, plus any amount computed for the     15,169       

district under section 3317.0212 of the Revised Code Basic Aid     15,170       

Guarantee" of this act or any amount computed under section        15,171       

3317.16 of the Revised Code.                                                    

      (b)  "ADM" means:                                            15,173       

      (i)  In the case of a city, local, or exempted village       15,175       

school district, the district's formula ADM as defined in section  15,177       

3317.02 of the Revised Code, minus the portion of ADM computed     15,178       

under division (A)(3) of section 3317.03 of the Revised Code for   15,179       

students that are enrolled in a joint vocational school district;               

      (ii)  In the case of a joint vocational school district,     15,181       

the sum of the number of pupils enrolled in that joint vocational  15,182       

school district.                                                   15,183       

      (2)  Ninety-seven and forty-three one-hundredths per cent    15,185       

of the amount made available for distribution under this division  15,186       

in each fiscal year shall be distributed to city, local, joint     15,187       

vocational, and exempted village school districts eligible to      15,189       

                                                          338    

                                                                 
receive funds pursuant to Chapter 3317. of the Revised Code in     15,190       

proportion to the percentage that the ADM of each such district    15,191       

is of the ADM of all such districts and shall be for the use of    15,193       

the public schools of the district.  Two and fifty-seven           15,194       

one-hundredths per cent of such amount made available for          15,195       

distribution under this division in each fiscal year shall be      15,196       

distributed to nonpublic schools for the purposes of section       15,197       

3317.063 of the Revised Code.  Not later than the first day of     15,198       

March of each fiscal year, the Department of Education shall       15,199       

compute each school district's share for that year of the amount   15,201       

to be distributed under this division and shall, subject to        15,202       

Controlling Board approval, distribute the shares so determined.   15,203       

      Amounts distributed to school districts pursuant to this     15,206       

division shall be used solely to purchase textbooks and            15,207       

equipment.  If funds have been appropriated by a board for any     15,208       

purposes permitted under this section, the amounts distributed to  15,209       

the district or educational service center under this division                  

shall be used for additional expenditures for such purposes and    15,211       

shall not be substituted for funds previously appropriated by the  15,212       

board.                                                                          

      (3)  Districts and nonpublic schools shall report to the     15,215       

Department of Education no later than the last day of May of each  15,216       

fiscal year on the usage of funds received under this division.    15,217       

The Department of Education shall compile district data and        15,218       

report on the usage of all funds distributed under this division   15,220       

to the Controlling Board by the last day of June of each fiscal    15,221       

year.  If the department determines that a district used funds     15,222       

distributed pursuant to this division for purposes not permitted,  15,223       

it shall reduce the district's state basic aid payments for the    15,224       

ensuing fiscal year by the amount improperly used.                 15,225       

      It is the intent of the General Assembly that moneys         15,227       

distributed pursuant to this section shall not be included in any  15,228       

spending base calculations when appropriations for the 1999-2000   15,229       

biennium are being considered.                                     15,230       

                                                          339    

                                                                 
      Sec. 50.44.  (A)  There is hereby created the Teacher        15,233       

Professional Development Task Force.  The purpose of the task      15,234       

force shall be to develop a comprehensive structure for the                     

delivery of continuing professional development for teachers       15,235       

employed in the state's primary, secondary, vocational, and        15,236       

special educational system.  On or before August 1, 1998 JANUARY   15,238       

1, 1999, the task force shall issue to the President of the        15,239       

Senate, the Speaker of the House of Representatives, and the       15,240       

State Superintendent of Public Instruction a report outlining a    15,241       

comprehensive structure for the delivery of continuing             15,242       

professional development to such school teachers.  On the date of  15,244       

the issuance of its report, the task force is abolished.                        

      (B)  The task force shall be composed of six legislators,    15,247       

three appointed by the President of the Senate and three by the    15,248       

Speaker of the House of Representatives.  No more than two of the  15,249       

appointed members from each house shall be members of the same     15,250       

political party.  From among these six appointed members, the      15,251       

President of the Senate and the Speaker of the House of            15,252       

Representatives jointly shall appoint a chair of the Task Force.   15,253       

Ex-officio nonvoting members of the task force shall include the   15,254       

State Superintendent of Public Instruction, or the                 15,255       

Superintendent's designee; the Director of Budget and Management,  15,256       

or the Director's designee; a member appointed by the head         15,257       

official of the Ohio State School Boards Association; a member     15,258       

appointed by the head official of the Ohio Association of          15,259       

Educational Service Center Superintendents; a member appointed by  15,260       

the head official of the Ohio Education Association; a member      15,261       

appointed by the head official of the Ohio Federation of           15,262       

Teachers; a member appointed by the head official of the Buckeye   15,263       

Association of School Administrators; and two members of the       15,264       

institutions of higher education that have teacher education       15,265       

colleges, one member of which shall be from such a public          15,266       

institution appointed by the Chancellor of the Board of Regents    15,267       

and the other shall be from such a private institution appointed   15,268       

                                                          340    

                                                                 
by the head official of the Association of Independent Colleges    15,269       

and Universities of Ohio.  The voting members of the task force    15,270       

may appoint, by a majority vote, additional ex-officio nonvoting   15,271       

members to serve on the task force.  The Legislative Service       15,272       

Commission and the Legislative Budget Office shall provide staff   15,273       

and services to the task force.                                    15,274       

      Sec. 50.52.5.  Each contract entered into between a sponsor  15,276       

and the governing authority of a community school shall specify    15,277       

the following:                                                     15,278       

      (A)  That the school shall be established as a nonprofit     15,280       

corporation established under Chapter 1702. of the Revised Code;   15,282       

      (B)  The education program of the school, including the      15,284       

school's mission, the characteristics of the students the school   15,285       

is expected to attract, the ages and grades of students, and the   15,286       

focus of the curriculum;                                           15,287       

      (C)  Performance standards and assessments by which the      15,289       

success of the school will be evaluated by the sponsor, which      15,290       

shall include the statewide proficiency tests;                     15,291       

      (D)  The admission standards of Subsection 8 of this         15,293       

section;                                                           15,294       

      (E)  Dismissal procedures;                                   15,296       

      (F)  The ways by which the school will achieve racial and    15,298       

ethnic balance reflective of the community it serves;              15,299       

      (G)  Requirements and procedures for program and financial   15,302       

audits, including audits by the Auditor of State and the           15,303       

Department of Education.  The contract shall require financial     15,305       

records of the school to be maintained in the same manner as are                

financial records of school districts, pursuant to rules of the    15,306       

Auditor of State, AND THE AUDITS SHALL BE CONDUCTED IN ACCORDANCE  15,307       

WITH SECTION 117.10 OF THE REVISED CODE.                           15,308       

      (H)  Facilities to be used, their location, and their        15,310       

method of acquisition;                                                          

      (I)  Qualifications of teachers, including a requirement     15,312       

that the school's classroom teachers be certificated in            15,313       

                                                          341    

                                                                 
accordance with sections 3319.22 to 3319.31 of the Revised Code,   15,314       

except that a community school may engage noncertificated persons  15,316       

to teach up to twelve hours per week pursuant to section 3319.301               

of the Revised Code;                                               15,317       

      (J)  That the school will comply with the following          15,319       

requirements:                                                      15,320       

      (1)  The school will provide learning opportunities to a     15,322       

minimum of twenty-five students for a minimum of nine hundred      15,324       

twenty hours per school year;                                                   

      (2)  The governing authority will purchase liability         15,327       

insurance, or otherwise provide for the potential liability of     15,328       

the school;                                                                     

      (3)  The school will be nonsectarian in its programs,        15,331       

admission policies, employment practices, and all other            15,332       

operations, and will not be operated by a sectarian school or      15,333       

religious institution;                                                          

      (4)  The school will comply with sections 9.90, 9.91,        15,335       

109.65, 121.22, 149.43, 2151.358, 2151.421, 2313.18, 3301.0710,    15,337       

3301.0711, 3301.0714, 3313.33, 3313.50, 3313.643, 3313.66,         15,338       

3313.661, 3313.662, 3313.67, 3313.672, 3313.673, 3313.69,          15,339       

3313.71, 3313.80, 3313.96, 3319.321, 3319.39, 3321.01, 3327.10,    15,340       

4111.17, and 4113.52 and Chapters 102., 117., 1347., 2744.,        15,342       

4112., 4123., 4141., and 4167. of the Revised Code as if it were   15,344       

a school district;                                                 15,345       

      (5)  The school will comply with sections 3313.61 and        15,347       

3313.611 of the Revised Code, except that the requirement in       15,350       

those sections that a person must successfully complete the        15,351       

curriculum in any high school prior to receiving a high school     15,352       

diploma may be met by completing the curriculum adopted by the                  

governing authority of the community school rather than the        15,354       

curriculum specified in Title XXXIII of the Revised Code or any    15,355       

rules of the state board of education;                                          

      (6)  The school governing authority will submit an annual    15,357       

report of its activities and progress in meeting the goals and     15,358       

                                                          342    

                                                                 
standards of division (C) of this subsection and its financial     15,359       

status to the sponsor and to, the parents of all students          15,360       

enrolled in the school, AND THE LEGISLATIVE OFFICE OF EDUCATION    15,361       

OVERSIGHT.  The financial statement shall be in such form as       15,362       

shall be prescribed by the Auditor of State.                       15,363       

      (K)  Arrangements for providing health and other benefits    15,365       

to employees;                                                      15,366       

      (L)  The length of the contract, which shall not exceed      15,368       

five years nor extend beyond June 30, 2003;                        15,369       

      (M)  The governing authority of the school, which shall be   15,371       

responsible for carrying out the provisions of the contract, and   15,372       

a description of the process by which the governing authority      15,373       

will be selected in the future;                                    15,374       

      (N)  A financial plan detailing an estimated school budget   15,376       

for each year of the period of the contract and specifying the     15,377       

total estimated per pupil expenditure amount for each such year.   15,378       

The plan shall specify for each year the base formula amount that  15,380       

will be used for purposes of funding calculations under section                 

3314.08 of the Revised Code.  This base formula amount for any     15,381       

year shall not exceed the formula amount defined under division    15,383       

(B) of section 3317.02 of the Revised Code.                        15,384       

      (O)(1)  Requirements and procedures regarding the            15,386       

disposition of employees, equipment, materials, supplies, and      15,387       

facilities of the school in the event the contract is terminated   15,388       

or not renewed pursuant to this section;                                        

      (2)  Provisions to ensure that, if for any reason a school   15,391       

must close prior to June 30, 2003, the school will be kept open    15,392       

for students to attend until the end of the school year in which   15,393       

it is determined that the school must close;                                    

      (3) Provisions establishing procedures for resolving         15,395       

disputes or differences of opinion between the sponsor and the     15,396       

governing authority of the community school.                       15,397       

      (P)  Whether or not the school is to be created by           15,399       

converting all or part of an existing public school and, if it     15,400       

                                                          343    

                                                                 
is, specification of any duties or responsibilities of an          15,401       

employer that the board of education that operated the school      15,402       

before conversion is delegating to the governing authority of the               

community school with respect to all or any specified group of     15,403       

employees provided the delegation is not prohibited by a           15,405       

collective bargaining agreement applicable to such employees.      15,406       

      (Q)  Any additional details concerning the management and    15,408       

administration of the school;                                      15,409       

      (R)  If the proposed community school is a currently         15,411       

existing public school, alternative arrangements, approved by the  15,413       

board of education of the school district in which the school is                

located, for current public school students who choose not to      15,415       

attend the school and teachers who choose not to teach in the      15,416       

school after conversion;                                                        

      (S)  THAT THE SCHOOL SHALL BE THE CUSTODIAN OF ALL MONEY     15,418       

RECEIVED DURING THE FIRST FULL FISCAL YEAR OF ITS OPERATION AND    15,419       

DURING SUBSEQUENT YEARS UNLESS ANOTHER CUSTODIAN IS DESIGNATED IN  15,420       

THE CONTRACT TO RECEIVE AND MAINTAIN THE FIRST-YEAR REVENUE.       15,421       

      Sec. 50.52.10.  (A)  As used in this subsection:             15,425       

      (1)  "Base formula amount" means the amount specified as     15,428       

such in a community school's financial plan for a school year      15,429       

pursuant to Subsection 5 of this section.                                       

      (2)  "Cost-of-doing-business factor" has the same meaning    15,431       

as in section 3317.02 of the Revised Code.                         15,433       

      (3)  "IEP" means an individualized education program         15,436       

defined by division (E) of section 3323.01 of the Revised Code.    15,437       

      (4)  "Actual AVERAGE COUNTY cost" means the actual cost,     15,440       

AVERAGED AMONG SCHOOL DISTRICTS WITHIN A COUNTY, of providing      15,441       

special education and related services to a special education      15,442       

student pursuant to an IEP in the school district where that       15,443       

student is entitled to attend school pursuant to sections 3313.64               

and 3313.65 of the Revised Code SIMILARLY HANDICAPPED CHILDREN,    15,444       

as calculated in a manner acceptable to the Superintendent of      15,446       

Public Instruction.                                                             

                                                          344    

                                                                 
      (5)  "Basic aid" means the amount computed for a district    15,448       

under divisions (A) and (C) of section 3317.022 of the Revised     15,451       

Code.                                                                           

      (6)  "Guarantee funds" means any payments received by a      15,453       

school district pursuant to section 3317.0212 of the Revised       15,454       

Code.                                                                           

      (7)  "Per pupil state funds" for a district means the        15,456       

figure obtained when the sum of the district's total annual basic  15,457       

aid payments plus guarantee funds is divided by the district's     15,458       

formula ADM as certified in section 3317.03 of the Revised Code.   15,462       

      (8)  "Entitled to attend school in the district" means a     15,464       

student is entitled to attend school in a district pursuant to     15,465       

the provisions of section 3313.64 or 3313.65 of the Revised Code.  15,466       

      (B)  The state board of education shall adopt rules          15,468       

requiring both of the following:                                   15,469       

      (1)  The board of education of each city, exempted village,  15,471       

and local school district in the Lucas County area to annually     15,472       

report the number of students entitled to attend school in the     15,473       

district pursuant to section 3313.64 or 3313.65 of the Revised     15,475       

Code IN GRADES ONE THROUGH TWELVE, AND ONE-HALF OF THE             15,476       

KINDERGARTEN STUDENTS, who are enrolled in a community school      15,477       

established under this chapter SECTION and for each child, both    15,478       

of the following:                                                  15,479       

      (a)  The community school in which the child is enrolled.    15,482       

In addition, for each such child receiving special education and   15,483       

related services in a community school pursuant to an IEP the      15,484       

board shall report the actual AVERAGE COUNTY cost for such child.  15,486       

      (b)  If the district receives disadvantaged pupil impact     15,488       

aid for the child pursuant to DIVISION (B) OR DIVISIONS (C) AND    15,490       

(E) OF section 3317.029 of the Revised Code, the amount received   15,492       

for such child.                                                    15,493       

      (2)  The governing authority of each community school        15,495       

established under this section to annually report the number of    15,496       

students IN GRADES ONE THROUGH TWELVE, AND ONE-HALF OF THE         15,497       

                                                          345    

                                                                 
KINDERGARTEN STUDENTS, enrolled in kindergarten through grade      15,498       

twelve in the school who are not receiving special education and   15,500       

related services pursuant to an IEP, the number of enrolled        15,503       

students in kindergarten through grade GRADES ONE THROUGH twelve   15,504       

AND ONE-HALF OF THE KINDERGARTEN STUDENTS who are receiving        15,505       

special education and related services pursuant to an IEP, the     15,506       

number of enrolled preschool students counted in a unit approved   15,508       

by the State Board of Education under section 3317.05 of the       15,510       

Revised Code, the community school's base formula amount, and for  15,512       

each student, the city, exempted village, or local school          15,513       

district the student is entitled to attend under section 3313.64   15,514       

or 3313.65 of the Revised Code.                                    15,515       

      (C)  From the payments made to a city, exempted village, or  15,517       

local school district under Chapter 3317. and, if necessary,       15,519       

sections 321.14 and 323.156 of the Revised Code, the Department    15,520       

of Education shall annually subtract all of the following:         15,521       

      (1)  An amount equal to the sum of the amounts obtained      15,523       

when, for each community school where the district's students are  15,524       

enrolled, the number of the district's students reported under     15,526       

division (B)(2) of this subsection IN GRADES ONE THROUGH TWELVE,   15,527       

AND ONE-HALF OF THE KINDERGARTEN STUDENTS, who are enrolled in     15,528       

kindergarten through grade twelve in that community school and     15,529       

are not receiving special education and related services pursuant  15,530       

to an IEP is multiplied by the base formula amount of that         15,531       

community school as adjusted by the school district's              15,532       

cost-of-doing-business factor.                                                  

      (2)  The sum of the actual AVERAGE COUNTY costs for all      15,534       

district students reported under division (B)(2) of this           15,536       

subsection who are to be receiving special education and related   15,537       

services pursuant to an IEP in their respective community          15,538       

schools, less the sum of the prorated share for each such          15,539       

preschool handicapped student of any amounts received from state   15,541       

funded units or from any federal funds to provide special          15,542       

education and related services to students in kindergarten         15,543       

                                                          346    

                                                                 
through grade twelve in the respective community schools.  This    15,544       

prorated share of state unit funding or federal funds received     15,545       

for each such student shall be determined on the basis of all      15,547       

such funds received by a community school for students receiving   15,548       

similar services, as calculated in a manner acceptable to the                   

Superintendent of Public Instruction.                              15,549       

      (3)  An amount equal to the sum of the amounts obtained      15,551       

when, for each community school where the district's students are  15,552       

enrolled, the number of the district's students enrolled in that   15,553       

community school and residing in the district in a family          15,554       

participating in Ohio works first under Chapter 5107. of the       15,556       

Revised Code is multiplied by the per pupil amount of                           

disadvantaged pupil impact aid the school district receives that   15,558       

year under DIVISION (B) OR DIVISIONS (C) AND (E) OF section        15,559       

3317.029 of the Revised Code.                                                   

      (D)  The Department shall annually pay to a community        15,562       

school, or to the Lucas County Educational Service Center on       15,563       

behalf of a start-up school for which the Service Center's                      

Treasurer is the chief financial officer and ANY custodian of its  15,564       

funds DESIGNATED pursuant to subsection 12 5 of this section, all  15,566       

of the following:                                                               

      (1)  An amount equal to the sum of the amounts obtained      15,569       

when, for each school district where the community school's        15,570       

students are entitled to attend school under section 3313.64 or                 

3313.65 of the Revised Code, the number of students enrolled in    15,571       

kindergarten GRADES ONE through grade twelve PLUS ONE-HALF OF THE  15,573       

KINDERGARTEN STUDENTS in the school as reported under division     15,574       

(B)(2) of this subsection who are not receiving special education  15,575       

and related services pursuant to an IEP is multiplied by the       15,576       

community school's base formula amount, as adjusted by that        15,577       

school district's cost-of-doing-business factor;                                

      (2)  For each student enrolled in the school receiving       15,580       

special education and related services pursuant to an IEP, an      15,581       

amount equal to the actual AVERAGE COUNTY cost for such student,   15,582       

                                                          347    

                                                                 
less a prorated share for a preschool handicapped student of any   15,583       

amount received from state funded units or for any student, a      15,584       

prorated share of any federal funds to provide special education   15,586       

and related services to students in the community school.  This    15,587       

prorated share shall be determined as described under division     15,588       

(C)(2) of this subsection.                                                      

      (3)  An amount equal to the sum of the amounts obtained      15,590       

when, for each school district where the community school's        15,591       

students are entitled to attend school under section 3313.64 or    15,592       

3313.65 of the Revised Code, the number of that district's         15,593       

students enrolled in the community school and participating in     15,594       

Ohio works first is multiplied by the per pupil amount of          15,595       

disadvantaged pupil impact aid that school district receives that  15,597       

year under DIVISION (B) OR DIVISIONS (C) AND (E) OF section        15,598       

3317.029 of the Revised Code.                                                   

      (E)  For purposes of counting students in average daily      15,600       

membership under section 3317.03 of the Revised Code, prior to     15,602       

the first day of classes each year in any community school         15,603       

established under this section, the parent, guardian, or           15,604       

custodian of each student who is enrolled or intends to enroll     15,605       

that year in the community school shall register the student's     15,606       

name and address with the superintendent of the school district    15,607       

in which the student is entitled to attend school.  The                         

superintendent shall include all such students in the district's   15,608       

average daily membership as if the students were enrolled during   15,609       

the first full week of October in that school year.                15,610       

      (F)  During the first year of operation of a community       15,612       

school under this section, in addition to all other payments made  15,613       

to any school district in which a student enrolled in the          15,614       

community school is entitled to attend school pursuant to Chapter  15,616       

3317. of the Revised Code, the Department of Education shall pay   15,617       

such school district for each student enrolled in the community    15,619       

school who is otherwise entitled to attend school in the district  15,620       

an amount equal to 50 per cent of the district's per pupil state   15,621       

                                                          348    

                                                                 
funds.                                                                          

      (G)  A community school may apply to the Department of       15,623       

Education for preschool handicapped or gifted unit funding the     15,625       

school would receive if it were a school district.  Upon request   15,627       

of its governing authority, a community school that received unit  15,628       

funding as a school district-operated school before it was         15,629       

converted to a community school shall retain any units awarded to  15,630       

it as a school district-operated school, provided the school       15,631       

continues to meet eligibility standards for the unit.              15,632       

      A community school shall be considered a school district     15,634       

and its governing authority shall be considered a board of         15,635       

education for the purpose of applying to any state or federal      15,636       

agency for grants that a school district may receive under         15,637       

federal or state law or any appropriations act of the General      15,638       

Assembly.  The governing authority of a community school may       15,639       

apply to any private entity for additional funds.                  15,640       

      (H)  A board of education sponsoring a community school may  15,642       

utilize local funds to make enhancement grants to the school or    15,643       

may agree, either as part of the contract or separately, to        15,644       

provide any specific services to the community school at no cost   15,645       

to the school.                                                                  

      (I)  A community school may not levy taxes or issue bonds    15,647       

secured by tax revenues.                                           15,649       

      (J)  No community school shall charge tuition for the        15,651       

enrollment of any student.                                         15,653       

      (K)  A community school may borrow money to pay any          15,655       

necessary and actual expenses of the school in anticipation of     15,657       

the receipt of any portion of the payments to be received by the   15,658       

school pursuant to division (D) of this subsection.  The school    15,659       

may issue notes to evidence such borrowing to mature no later      15,660       

than the end of the fiscal year in which such money was borrowed.  15,661       

The proceeds of the notes shall be used only for the purposes for  15,663       

which the anticipated receipts may be lawfully expended by the     15,664       

school.                                                                         

                                                          349    

                                                                 
      (L)  For purposes of determining the number of students for  15,666       

which division (D)(3) of this subsection applies in any school     15,668       

year, a community school may submit to the state Department of     15,670       

Human Services, no later than the first day of March, a list of    15,671       

the students enrolled in the school.  For each student on the      15,672       

list, the community school shall indicate the student's name,      15,673       

address, and date of birth and the school district where the                    

student is entitled to attend school under section 3313.64 or      15,674       

3313.65 of the Revised Code.  Upon receipt of a list under this    15,675       

division, the Department of Human Services shall determine, for    15,676       

each school district where one or more students on the list are    15,677       

entitled to attend school under section 3313.64 or 3313.65 of the  15,678       

Revised Code, the number of students residing in that school                    

district who were included in the Department's report required by  15,680       

section 3317.10 of the Revised Code.  The Department shall make    15,681       

this determination on the basis of information readily available   15,682       

to it.  Upon making this determination and no later than ninety    15,683       

days after submission of the list by the community school, the     15,684       

Department shall report to the state Department of Education the                

number of students on the list who reside in each school district  15,685       

who were included in the Department's report made pursuant to      15,686       

section 3317.10 of the Revised Code.  In complying with this       15,688       

division, the Department of Human Services shall not report to     15,689       

the state Department of Education any personally identifiable      15,690       

information on any student."                                                    

      Section 8.  That existing Sections 50, 50.07, 50.08, 50.09,  15,692       

50.10, 50.12, 50.13, 50.14, 50.24, 50.44, 50.52.5, and 50.52.10    15,693       

of Am. Sub. H.B. 215 of the 122nd General Assembly, as amended by  15,694       

Am. Sub. H.B. 650 of the 122nd General Assembly, are hereby        15,695       

repealed.                                                                       

      Section 9.  That Sections 18 and 19 of Am. Sub. H.B. 650 of  15,697       

the 122nd General Assembly be amended to read as follows:          15,699       

      "Sec. 18.  (A)  As used in this section:                     15,701       

      (1)  "FY 1998 state aid" means the total amount of state     15,703       

                                                          350    

                                                                 
money received by a school district under sections 3317.022,       15,704       

3317.023, and 3317.025 to 3317.028 of the Revised Code, prior to   15,705       

any deductions or credits required by division (G), (I), (J), or   15,706       

(K) of section 3317.023, plus any amounts for which the district   15,707       

was eligible pursuant to divisions (K), (M), (N), and (O) of       15,709       

section 3317.024 and sections 3317.0212 and 3317.0213 of the       15,710       

Revised Code, as those divisions and sections existed in fiscal    15,711       

year 1998 AS REPORTED ON THE DEPARTMENT OF EDUCATION'S FORM        15,713       

"SF-12," ADJUSTED AS FOLLOWS:                                      15,714       

      (a)  MINUS ANY AMOUNTS FOR APPROVED PRESCHOOL HANDICAPPED    15,717       

UNITS;                                                                          

      (b)  MINUS ANY ADDITIONAL AMOUNT ATTRIBUTABLE TO THE         15,720       

REAPPRAISAL GUARANTEE OF DIVISION (C) OF SECTION 3317.04 OF THE    15,721       

REVISED CODE;                                                                   

      (c)  PLUS THE AMOUNT DEDUCTED FOR PAYMENTS TO AN             15,723       

EDUCATIONAL SERVICE CENTER;                                        15,724       

      (d)  PLUS AN ESTIMATED PORTION OF THE STATE MONEY            15,726       

DISTRIBUTED IN FISCAL YEAR 1998 TO OTHER SCHOOL DISTRICTS OR       15,727       

EDUCATIONAL SERVICE CENTERS FOR APPROVED UNITS, OTHER THAN         15,728       

PRESCHOOL HANDICAPPED OR GIFTED EDUCATION UNITS, ATTRIBUTABLE TO   15,729       

THE COSTS OF PROVIDING SERVICES IN THOSE UNITS TO STUDENTS         15,730       

ENTITLED TO ATTEND SCHOOL IN THE DISTRICT;                         15,731       

      (e)  MINUS AN ESTIMATED PORTION OF THE STATE MONEY           15,733       

DISTRIBUTED TO THE SCHOOL DISTRICT IN FISCAL YEAR 1998 FOR         15,734       

APPROVED UNITS, OTHER THAN PRESCHOOL HANDICAPPED UNITS OR GIFTED   15,735       

EDUCATION UNITS, ATTRIBUTABLE TO THE COSTS OF PROVIDING SERVICES   15,736       

IN THOSE UNITS TO STUDENTS ENTITLED TO ATTEND SCHOOL IN ANOTHER    15,737       

SCHOOL DISTRICT;                                                   15,738       

      (f)  PLUS ANY ADDITIONAL AMOUNT PAID PURSUANT TO THE         15,741       

VOCATIONAL EDUCATION RECOMPUTATION REQUIRED BY FORMER SECTION      15,742       

50.22 OF AM. SUB. H.B. NO. 215 OF THE 122nd GENERAL ASSEMBLY;      15,744       

      (g)  PLUS ANY ADDITIONAL AMOUNT PAID PURSUANT TO THE         15,747       

SPECIAL EDUCATION RECOMPUTATION REQUIRED BY FORMER DIVISION (I)    15,748       

OF SECTION 3317.023 OF THE REVISED CODE;                           15,749       

                                                          351    

                                                                 
      (h)  PLUS ANY AMOUNT PAID FOR EQUITY AID UNDER SECTION       15,752       

3317.0213 OF THE REVISED CODE.                                     15,753       

      (2)  "FY 1999 state aid," "FY 2000 state aid," "FY 2001      15,756       

state aid," and "FY 2002 state aid" mean the total amount of       15,757       

state money a school district is eligible to receive for the       15,758       

applicable fiscal year under sections DIVISIONS (A), (C)(1), AND   15,760       

(D) OF SECTION 3317.022, 3317.023, AND SECTIONS 3317.025 to        15,762       

3317.028, 3317.029, 3317.0212, and 3317.0213 of the Revised Code,  15,764       

plus any amount for which the district is eligible pursuant to     15,765       

division (Q)(C) OF SECTION 3317.023, DIVISIONS (G) AND (P) of      15,766       

section 1317.024, AND DIVISION (B) OF SECTION 3317.162 of the      15,768       

Revised Code, and prior to any deductions or credits required by   15,770       

division (B), (D), (E), (F), (G), (H), or (I), (J), OR (K) of      15,772       

section 3317.023 OR DIVISION (J) OF SECTION 3317.029 of the        15,774       

Revised Code, as those sections are enacted and amended by this    15,775       

act.                                                                            

      (3)  "FY 1999 actual aid," "FY 2000 actual aid," "FY 2001    15,778       

actual aid," and "FY 2002 actual aid" means the amount of the      15,779       

state aid described in division (A)(2) of this section that was    15,780       

actually paid to a school district in the applicable fiscal year   15,781       

after the application of divisions (B) to (E) of this section.     15,782       

      (4)  "FY 1998 ADM" has the meaning prescribed in section     15,784       

3317.0212 of the Revised Code.                                     15,785       

      (5)  "Formula amount" has the meaning," "FORMULA ADM," AND   15,788       

"THREE-YEAR AVERAGE FORMULA ADM" HAVE THE MEANINGS prescribed in   15,789       

section 3317.02 of the Revised Code.                               15,790       

      (5)  "ALL-DAY KINDERGARTEN" HAS THE MEANING PRESCRIBED IN    15,792       

SECTION 3317.029 OF THE REVISED CODE.                              15,793       

      (B)  In fiscal year 1999, notwithstanding any provision of   15,796       

law to the contrary, no school district shall receive FY 1999                   

state aid that is equal to more than THE GREATER OF THE            15,797       

FOLLOWING:                                                                      

      (1)  110 per cent of FY 1998 state aid.  If;                 15,799       

      (2)  [1.06 X (FY 1998 STATE AID/FY 1998 ADM< X THE GREATER   15,802       

                                                          352    

                                                                 
OF FISCAL YEAR 1999 FORMULA ADM OR THREE-YEAR AVERAGE FORMULA      15,803       

ADM.                                                                            

      IF a district's projected FY 1999 state aid is more than     15,805       

110 per cent of its FY 1998 state aid THE GREATER OF DIVISION      15,807       

(B)(1) OR (2) OF THIS SECTION, such district shall receive only    15,808       

110 per cent of its FY 1998 state aid THE GREATER OF DIVISION      15,809       

(B)(1) OR (2) OF THIS SECTION in fiscal year 1999.                 15,810       

      (C)  In fiscal year 2000, notwithstanding any provision of   15,813       

law to the contrary, no school district shall receive FY 2000                   

state aid that is equal to more than THE GREATER OF THE            15,814       

FOLLOWING:                                                                      

      (1)  110 per cent of FY 1999 actual aid.  If;                15,817       

      (2)  [1.06 X (FY 1999 ACTUAL AID/FISCAL YEAR 1999 FORMULA    15,820       

ADM< X THE GREATER OF FISCAL YEAR 2000 FORMULA ADM OR THREE-YEAR   15,821       

AVERAGE FORMULA ADM.                                                            

      IF a district's projected FY 2000 state aid is more than     15,823       

110 per cent of its FY 1999 actual aid THE GREATER OF DIVISION     15,826       

(C)(1) OR (2) OF THIS SECTION, such district shall receive only    15,827       

110 per cent of its FY 1999 actual aid THE GREATER OF DIVISION     15,828       

(C)(1) OR (2) OF THIS SECTION in fiscal year 2000.                 15,829       

      (D)  In fiscal year 2001, notwithstanding any provision of   15,832       

law to the contrary, no school district shall receive FY 2001                   

state aid that is equal to more than THE GREATER OF THE            15,833       

FOLLOWING:                                                                      

      (1)  110 per cent of FY 2000 actual aid.  If;                15,836       

      (2)  [1.06 X (FY 2000 ACTUAL AID/FISCAL YEAR 2000 FORMULA    15,839       

ADM< X THE GREATER OF FISCAL YEAR 2001 FORMULA ADM OR THREE-YEAR   15,840       

AVERAGE FORMULA ADM.                                                            

      IF a district's projected FY 2001 state aid is more than     15,842       

110 per cent of its FY 2000 actual aid THE GREATER OF DIVISION     15,845       

(D)(1) OR (2) OF THIS SECTION, such district shall receive only    15,846       

110 per cent of its FY 2000 actual aid THE GREATER OF DIVISION     15,848       

(D)(1) OR (2) OF THIS SECTION in fiscal year 2001.                              

      (E)  In fiscal year 2002, notwithstanding any provision of   15,851       

                                                          353    

                                                                 
law to the contrary, no school district shall receive FY 2002                   

state aid that is equal to more than THE GREATER OF THE            15,852       

FOLLOWING:                                                                      

      (1)  110 per cent of FY 2001 actual aid.  If;                15,855       

      (2)  [1.06 X (FY 2001 ACTUAL AID/FISCAL YEAR 2001 FORMULA    15,858       

ADM< X THE GREATER OF FISCAL YEAR 2002 FORMULA ADM OR THREE-YEAR   15,859       

AVERAGE FORMULA ADM.                                                            

      IF a district's projected FY 2002 state aid is more than     15,861       

110 per cent of its FY 2001 actual aid THE GREATER OF DIVISION     15,864       

(E)(1) OR (2) OF THIS SECTION, such district shall receive only    15,865       

110 per cent of its FY 2001 actual aid THE GREATER OF DIVISION     15,866       

(E)(1) OR (2) OF THIS SECTION in fiscal year 2002.                 15,867       

      (F)  Notwithstanding any provision of law to the contrary:   15,869       

      (1)  The amount by which a school district's FY 1999 actual  15,872       

aid exceeds its FY 1998 state aid is hereby deemed to first        15,873       

consist of the disadvantaged pupil impact aid (DPIA) calculated    15,875       

under section 3317.029 of the Revised Code.  In fiscal year 1999,  15,877       

each district shall spend for the purposes set forth in section    15,878       

3317.029 of the Revised Code at least the lesser of the amount     15,879       

calculated under that section or the amount by which its FY 1999   15,880       

actual aid exceeds its FY 1998 state aid.                          15,882       

      (2)  The amount by which a school district's FY 2000 actual  15,885       

aid exceeds its FY 1999 actual aid is hereby deemed to first       15,887       

consist of the DPIA calculated under section 3317.029 of the       15,888       

Revised Code.  In fiscal year 2000, each district shall spend for  15,889       

the purposes set forth in section 3317.029 of the Revised Code at  15,890       

least the lesser of the amount calculated under that section or    15,891       

the amount by which its FY 2000 actual aid exceeds its FY 1999     15,893       

actual aid.                                                        15,894       

      (3)  The amount by which a school district's FY 2001 actual  15,897       

aid exceeds its FY 2000 actual aid is hereby deemed to first       15,899       

consist of the DPIA calculated under section 3317.029 of the       15,900       

Revised Code.  In fiscal year 2001, each district shall spend for  15,901       

the purposes set forth in section 3317.029 of the Revised Code at  15,902       

                                                          354    

                                                                 
least the lesser of the amount calculated under that section or    15,903       

the amount by which its FY 2001 actual aid exceeds its FY 2000     15,905       

actual aid.                                                        15,906       

      (4)  The amount by which a school district's FY 2002 actual  15,909       

aid exceeds its FY 2001 actual aid is hereby deemed to first       15,911       

consist of the DPIA calculated under section 3317.029 of the       15,912       

Revised Code.  In fiscal year 2002, each district shall spend for  15,913       

the purposes set forth in section 3317.029 of the Revised Code at  15,914       

least the lesser of the amount calculated under that section or    15,915       

the amount by which its FY 2002 actual aid exceeds its FY 2001     15,917       

actual aid.                                                        15,918       

      (G)(1)  In lieu of the limitation on the amount of aid a     15,920       

district may receive in fiscal year 1999 provided in division (B)  15,921       

of this section, the district may receive an amount calculated     15,923       

under the following formula, if such amount is greater than the    15,924       

amount provided in division (B) of this section:                                

1.06 times minus (the district's FY 1998 state aid/district's FY   15,928       

1998 ADM)} times the district's FY 1999 formula ADM                15,930       

      (2)  In lieu of the limitation on the amount of aid a        15,932       

district may receive in fiscal year 2000 provided in division (C)  15,934       

of this section, the district may receive an amount calculated     15,935       

under the following formula, if such amount is greater than the    15,936       

amount provided in division (C) of this section:                                

1.06 times minus (the district's FY 1999 actual aid/district's FY  15,940       

1999 formula ADM)} times the district's FY 2000 formula ADM        15,942       

      (3)  In lieu of the limitation on the amount of aid a        15,944       

district may receive in fiscal year 2001 provided in division (D)  15,945       

of this section, the district may receive an amount calculated     15,946       

under the following formula, if such amount is greater than the    15,947       

amount provided in division (D) of this section:                                

1.06 times minus (the district's FY 2000 actual aid/district's FY  15,951       

2000 formula ADM)} times the district's FY 2001 formula ADM        15,953       

      (4)  In lieu of the limitation on the amount of aid a        15,955       

district may receive in fiscal year 2002 provided in division (E)  15,956       

                                                          355    

                                                                 
of this section, the district may receive an amount calculated     15,957       

under the following formula, if such amount is greater than the    15,958       

amount provided in division (E) of this section:                                

1.06 times minus (the district's FY 2001 actual aid/district's FY  15,960       

2001 formula ADM)} times the district's FY 2002 formula ADM THIS   15,962       

DIVISION AND DIVISION (G) OF THIS SECTION APPLY ONLY TO DISTRICTS  15,963       

SUBJECT TO DIVISION (F) OF SECTION 3317.029 OF THE REVISED CODE.                

AS USED IN THIS DIVISION AND DIVISIONS (G) AND (H) OF THIS         15,964       

SECTION:                                                                        

      (1)  "CAPPED DISTRICT" MEANS A DISTRICT THAT PURSUANT TO     15,966       

DIVISION (B), (C), (D), OR (E) OF THIS SECTION WILL NOT RECEIVE    15,968       

THE FULL AMOUNT OF FY 1999, FY 2000, FY 2001, OR FY 2002 STATE     15,969       

AID.                                                                            

      (2)  "DPIA FUNDS" MEANS:                                     15,971       

      (a)  IN FY 1998, THE AMOUNT CALCULATED FOR THE DISTRICT      15,973       

PURSUANT TO DIVISION (B) OF SECTION 3317.023 OF THE REVISED CODE   15,974       

AS IT EXISTED IN THAT FISCAL YEAR;                                 15,975       

      (b)  IN ANY FISCAL YEAR AFTER FY 1998, THE TOTAL AMOUNT      15,977       

CALCULATED FOR THE DISTRICT FOR THAT FISCAL YEAR PURSUANT TO       15,978       

SECTION 3317.029 OF THE REVISED CODE.                              15,979       

      (3)  "EXEMPT DPIA PORTION" MEANS:                            15,981       

      (a)  IN THE CASE OF ANY DISTRICT OTHER THAN A CAPPED         15,983       

DISTRICT, AN AMOUNT EQUAL TO ZERO;                                 15,984       

      (b)  IN THE CASE OF A CAPPED DISTRICT, THE AMOUNT RESULTING  15,986       

FROM THE APPLICATION OF THE FOLLOWING FORMULA:                     15,987       

             (THE DISTRICT'S DPIA FUNDS FOR THE YEAR               15,989       

          OF THE CALCULATION MINUS THE DISTRICT'S DPIA             15,990       

                    FUNDS FOR FY 1998) MINUS                       15,991       

(THE DISTRICT'S ACTUAL AID FOR THE YEAR OF THE CALCULATION MINUS   15,992       

                 THE DISTRICT'S FY 98 STATE AID)                   15,993       

      HOWEVER, IF THIS FORMULA PRODUCES A NEGATIVE NUMBER, THE     15,995       

DISTRICT'S EXEMPT DPIA PORTION IS ZERO.                            15,996       

      (4)  "REQUIRED ALL-DAY KINDERGARTEN" FOR A DISTRICT MEANS    15,998       

THE PROVISION OF ALL-DAY KINDERGARTEN TO THE NUMBER OF STUDENTS    15,999       

                                                          356    

                                                                 
IN THE DISTRICT'S KINDERGARTEN PERCENTAGE SPECIFIED PURSUANT TO    16,000       

DIVISION (H)(1) OF SECTION 3317.029 OF THE REVISED CODE.           16,001       

      (5)  "BUILDINGS WITH THE HIGHEST CONCENTRATION OF NEED" AND  16,003       

"DPIA INDEX" HAVE THE SAME MEANINGS AS IN SECTION 3317.029 OF THE  16,005       

REVISED CODE.                                                      16,006       

      (G)  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY:   16,008       

      (1)  IN THE CASE OF ANY DISTRICT, THE DISTRICT'S DPIA FUNDS  16,010       

ARE HEREBY DEEMED TO FIRST CONSIST OF ANY DISADVANTAGED PUPIL      16,011       

IMPACT AID CALCULATED FOR THE DISTRICT FOR ALL-DAY KINDERGARTEN    16,012       

UNDER DIVISION (D) OF SECTION 3317.029 OF THE REVISED CODE, AND    16,013       

TO NEXT CONSIST OF ANY DISADVANTAGED PUPIL IMPACT AID CALCULATED   16,014       

FOR THE DISTRICT UNDER DIVISIONS (C) AND (E) OF SECTION 3317.029   16,015       

OF THE REVISED CODE.  EACH DISTRICT SHALL EXPEND WHATEVER FUNDS    16,016       

NECESSARY TO ENSURE PROVISION OF ITS REQUIRED ALL-DAY                           

KINDERGARTEN.                                                      16,017       

      (2)  IN FY 1999, A DISTRICT SHALL EXPEND FOR THE PURPOSES    16,019       

OF SECTION 3317.029 OF THE REVISED CODE AN AMOUNT EQUAL TO AT      16,020       

LEAST FIFTY PER CENT OF THE RESULTANT DERIVED FROM SUBTRACTING     16,021       

THE DISTRICT'S EXEMPT DPIA PORTION FROM THE AMOUNT CALCULATED FOR  16,022       

THE DISTRICT UNDER DIVISIONS (C) AND (E) OF SECTION 3317.029 OF    16,023       

THE REVISED CODE.                                                               

      (3)  IN FY 2000, A DISTRICT SHALL EXPEND FOR THE PURPOSES    16,025       

OF SECTION 3317.029 OF THE REVISED CODE AN AMOUNT EQUAL TO AT      16,026       

LEAST SEVENTY-FIVE PER CENT OF THE RESULTANT DERIVED FROM          16,027       

SUBTRACTING THE DISTRICT'S EXEMPT DPIA PORTION FROM THE AMOUNT     16,028       

CALCULATED FOR THE DISTRICT UNDER DIVISIONS (C) AND (E) OF         16,029       

SECTION 3317.029 OF THE REVISED CODE.                                           

      (4)  IN FY 2001 AND THEREAFTER, A DISTRICT SHALL EXPEND ONE  16,031       

HUNDRED PER CENT OF ITS DPIA FUNDS FOR THE PURPOSES OF SECTION     16,032       

3317.029 OF THE REVISED CODE.                                      16,033       

      (5)  DISTRICTS SHALL COMPLY WITH THE REQUIREMENTS OF         16,035       

DIVISION (G) OF SECTION 3317.029 OF THE REVISED CODE.              16,036       

      (H)  THIS DIVISION APPLIES ONLY TO SCHOOL DISTRICTS WITH A   16,038       

DPIA INDEX GREATER THAN FOUR.                                      16,040       

                                                          357    

                                                                 
      IN ANY FISCAL YEAR, EXCLUDING ANY AMOUNTS EXPENDED TO        16,042       

PROVIDE THE DISTRICT'S REQUIRED ALL-DAY KINDERGARTEN, THE AMOUNTS  16,043       

THAT A DISTRICT IS REQUIRED TO EXPEND PURSUANT TO DIVISION         16,044       

(G)(2), (3), (4), OR (5) OF THIS SECTION SHALL BE USED TO LOWER    16,045       

THE RATIO OF INSTRUCTIONAL PERSONNEL TO STUDENTS TO ONE TO         16,046       

FIFTEEN IN THE CASE OF THE DISTRICT'S REQUIRED ALL-DAY                          

KINDERGARTEN STUDENTS SERVED IN THE BUILDINGS WITH THE HIGHEST     16,048       

CONCENTRATION OF NEED.                                                          

      Sec. 19.  There is hereby established a pupil                16,050       

transportation pilot project to demonstrate innovative,            16,051       

efficient, and cost-reducing cooperative methods of transporting   16,052       

pupils on a countywide basis.  The Superintendent of Public        16,054       

Instruction shall receive proposals from educational service       16,055       

centers and shall approve two locations for the pupil              16,056       

transportation pilot project.  One location shall be an            16,057       

educational service center with a majority of its territory        16,058       

included in the same county as a big eight school district; the    16,059       

other location shall be an educational service center serving      16,061       

three or more school districts in a small, rural county.  The                   

Superintendent of Public Instruction shall select an educational   16,062       

service center to participate only if a majority of the            16,063       

superintendents of the school districts receiving services from    16,064       

the educational service center agree to participate in the         16,065       

project and only if the participating school districts are         16,066       

contiguous.                                                        16,067       

      Under the supervision of the educational service center,     16,069       

WITH THE APPROVAL OF A MAJORITY OF the superintendents of the      16,071       

participating school districts, THE STATE SUPERINTENDENT shall     16,072       

cooperatively develop CONTRACT WITH AN INDIVIDUAL, BUSINESS,       16,073       

PARTNERSHIP, CORPORATION, OR ORGANIZATION WITH EXPERTISE IN THE    16,074       

AREA OF TRANSPORTATION PLANNING FOR THE DEVELOPMENT OF a plan for  16,075       

the transportation of pupils by the most efficient method          16,077       

designed to effect savings in the aggregate transportation costs   16,078       

of all the participating school districts.  The plan may propose   16,080       

                                                          358    

                                                                 
the cooperative operation of the equipment and use of the          16,081       

personnel of any participating school district and other agreed    16,082       

to alternative methods of transporting pupils designed to achieve  16,083       

efficiency.  Provided however, that every pupil entitled under     16,084       

Chapter 3327. of the Revised Code to receive transportation shall  16,085       

continue to be transported.                                                     

      The Legislative Office of Education Oversight shall monitor  16,087       

the implementation of the pilot project to determine whether the   16,088       

programs suggest innovative, effective cooperative ways to deal    16,089       

with the transportation of pupils that may be applicable beyond    16,090       

the pilot project locations.                                       16,091       

      As used in this section, "big eight school district" has     16,093       

the same meaning as in section 3314.02 of the Revised Code."       16,094       

      Section 10.  That existing Sections 18 and 19 of Am. Sub.    16,096       

H.B. 650 of the 122nd General Assembly are hereby repealed.        16,098       

      Section 11.  That Section 50.06 of Am. Sub. H.B. 215 of the  16,100       

122nd General Assembly, as amended by Am. Sub. H.B. 182 and Am.    16,101       

Sub. H.B. 650 of the 122nd General Assembly, be amended to read    16,102       

as follows:                                                                     

      "Sec. 50.06.  School Foundation Basic Allowance Base Cost    16,109       

Funding                                                            16,110       

      Of the foregoing appropriation item 200-501, Base Cost       16,112       

Funding, up to $6,000,000 in each year of the biennium shall be    16,114       

expended by the State Board of Education for the extended service  16,115       

allowance which shall be the teachers' salaries pursuant to the    16,116       

schedule contained in section 3317.13 of the Revised Code, plus    16,117       

fifteen per cent for retirement and sick leave; up to $425,000     16,119       

shall be expended in each year of the biennium for court payments  16,120       

pursuant to section 2151.357 of the Revised Code; up to $150,000   16,121       

in each year of the biennium shall be expended pursuant to         16,122       

section 3313.64 of the Revised Code; THE SUPERINTENDENT OF PUBLIC  16,123       

INSTRUCTION SHALL EXPEND IN FISCAL YEAR 1998 THE AMOUNT NECESSARY  16,124       

FOR THE PURPOSE OF MAKING PAYMENTS FOR THE VOCATIONAL EDUCATION    16,125       

PUPIL RECOMPUTATION PURSUANT TO DIVISION (M) OF SECTION 3317.024   16,126       

                                                          359    

                                                                 
OF THE REVISED CODE AND THE PROVISIONS UNDER THE SECTION HEADED    16,128       

"VOCATIONAL EDUCATION PUPIL RECOMPUTATION" IN AM. SUB. H.B. 215    16,130       

OF THE 122nd GENERAL ASSEMBLY AND THE SPECIAL EDUCATION PUPIL      16,131       

RECOMPUTATION PURSUANT TO DIVISION (I) OF SECTION 3317.023 OF THE  16,132       

REVISED CODE; up to $100,000 shall be expended in each year of     16,135       

the biennium for supplemental payments pursuant to the section     16,136       

headed "Supplemental Payment" of Am. Sub. H.B. 215 of the 122nd    16,138       

General Assembly; an amount shall be available each year of the    16,140       

biennium for the cost of the reappraisal guarantee pursuant to     16,141       

section 3317.04 of the Revised Code; up to $9,000,000 in each      16,142       

year of the biennium shall be reserved for payments pursuant to    16,143       

sections 3317.026, 3317.027, and 3317.028 of the Revised Code      16,144       

EXCEPT THAT THE CONTROLLING BOARD MAY INCREASE THE $9,000,000      16,145       

AMOUNT IF PRESENTED WITH SUCH A REQUEST FROM THE DEPARTMENT OF     16,146       

EDUCATION.  OF THE FOREGOING APPROPRIATION LINE ITEM 200-501,      16,147       

BASE COST FUNDING, UP TO $13,861,282 SHALL BE USED IN FISCAL YEAR  16,148       

1999 TO PROVIDE ADDITIONAL STATE AID TO SCHOOL DISTRICTS FOR       16,149       

STUDENTS IN CATEGORY THREE SPECIAL EDUCATION ADM PURSUANT TO       16,150       

DIVISION (C)(4) OF SECTION 3317.022 OF THE REVISED CODE; up to     16,151       

$2,000,000 in each year of the biennium shall be reserved for      16,153       

Youth Services tuition payments pursuant to section 3317.024 of    16,154       

the Revised Code,; up to $1,300,000 in fiscal year 1998 and        16,155       

$1,300,000 in fiscal year 1999 for small district aid; for         16,156       

districts with an ADM of less than 100, in addition to other       16,157       

funds, an amount shall be paid equal to the amount above the       16,158       

actual fiscal year 1996 and 1997 amounts for basic aid, including  16,159       

any guarantee aid the district would have received in fiscal       16,160       

years 1996 and 1997 had the amendments to divisions (D) and (E)    16,161       

of section 3317.0212 of the Revised Code, as amended in Am. Sub.   16,162       

H.B. 215 of the 122nd General Assembly, been in effect; up to      16,164       

$500,000 in each fiscal year shall be used to make payments to     16,165       

school districts that lose enrollment due to the implementation    16,166       

of the community schools program pursuant to Am. Sub. H.B. 215 of  16,167       

the 122nd General Assembly; $500,000 shall be transferred each     16,168       

                                                          360    

                                                                 
year by the Director of Budget and Management to appropriation     16,170       

item 200-422, School Management Assistance, to help the            16,171       

Department of Education administer, monitor, and implement the                  

fiscal emergency and fiscal watch provisions under Chapter 3316.   16,172       

of the Revised Code.  Up; UP to $45,330,000 in fiscal year 1998    16,173       

and up to $47,795,600 in fiscal year 1999 shall be reserved to     16,175       

fund the state reimbursement of educational service centers                     

pursuant to section 3317.11 of the Revised Code; and up to         16,176       

$1,260,000 in fiscal year 1998 shall be used by the                16,178       

Superintendent of Public Instruction to make incentive payments    16,179       

in any amounts the superintendent deems necessary to joint         16,180       

educational service centers established pursuant to section        16,181       

3311.053 of the Revised Code.  These supplemental payments may be  16,182       

made in fiscal year 1998 to defray the direct or indirect          16,183       

expenses of dissolving participating educational service centers.               

Each joint educational service center seeking a supplemental       16,184       

payment in fiscal year 1998 shall submit to the Superintendent of  16,185       

Public Instruction any documents and information that the          16,186       

Superintendent may require no later than December 31, 1997.        16,187       

      Notwithstanding any contrary provision of section 3313.843   16,189       

or 3317.11 of the Revised Code as amended by Amended Substitute    16,190       

House Bill No. 650 of the 122nd general assembly GENERAL           16,192       

ASSEMBLY, students receiving special education programs or         16,193       

related services in fiscal year 1998 through a state-funded        16,194       

special education classroom unit or a state-funded special         16,195       

education related services unit operated by an educational                      

service center shall receive that program or those services from   16,196       

that educational service center in fiscal year 1999 through a      16,197       

contract entered into between the educational service center and   16,198       

the students' school district of enrollment unless the service     16,199       

center and district mutually agree that it is in the best                       

interests of students to provide the program or services in a      16,200       

different manner.  The contract for fiscal year 1999 shall         16,201       

provide for payment to the service center by the students' school  16,202       

                                                          361    

                                                                 
district of enrollment for the program or services provided by     16,203       

the service center.  If the service center and school district     16,204       

fail to agree on a payment amount for the students, they shall                  

notify the department of education and the department shall        16,205       

determine the amount to be paid.  If the service center and the    16,206       

district disagree that it is in the best interests of students to  16,207       

have the students receive the program or services in fiscal year   16,208       

1999 from the service center, the district or service center       16,209       

shall notify the department of education and, prior to March 31,   16,210       

1998, the department shall determine what manner of program or                  

services in fiscal year 1999 is in the best interests of the       16,211       

students.                                                                       

      Of the foregoing appropriation item 200-501, Base Cost       16,213       

Funding, up to $1,000,000 in each fiscal year shall be used by     16,215       

the Department of Education for a pilot program to pay for         16,216       

educational services for youth who have been assigned by a                      

juvenile court or other authorized agency to any of the            16,217       

facilities described in division (A) of the section titled         16,218       

"Private Treatment Facility Pilot Project."                        16,219       

      OF THE FOREGOING APPROPRIATION ITEM 200-501, BASE COST       16,222       

FUNDING, AN AMOUNT NO GREATER THAN $40,000,000 IN FISCAL YEAR                   

1999 SHALL BE DEDUCTED FROM SCHOOL DISTRICTS ON A PRO RATA BASIS   16,224       

AND PAID TO COUNTY BOARDS OF MR/DD AND INSTITUTIONS PURSUANT TO    16,225       

DIVISION (E) OF 3317.20 OF THE REVISED CODE; AN AMOUNT SHALL BE    16,227       

AVAILABLE IN FISCAL YEAR 1999 FOR SCHOOL PSYCHOLOGICAL SERVICES    16,229       

AND FOR SPEECH-LANGUAGE SERVICES PURSUANT TO SECTIONS (C) AND (D)  16,230       

OF 3317.20 OF THE REVISED CODE.                                    16,231       

      The remaining portion of this appropriation item shall be    16,233       

expended for base cost funding for the public schools of city,     16,235       

local, and exempted village school districts pursuant to           16,236       

divisions (A) and (C) of section 3317.022 of the Revised Code.     16,237       

Any amounts which were encumbered in fiscal year 1997 by the       16,238       

Department of Education from appropriation item 200-501, School    16,239       

Foundation Basic Allowance, for any of the uses described in       16,241       

                                                          362    

                                                                 
Section 45.05 of Am. Sub. H.B. 117 of the 121st General Assembly,               

but which, on the effective date of this amendment of this         16,242       

section, remain unexpended, may be used by the Department of       16,243       

Education to make payments for the purposes of sections 3317.027   16,244       

and 3317.028 of the Revised Code in excess of the amounts          16,245       

specified in Section 45.05 of Am. Sub. H.B. 117 of the 121st                    

General Assembly, for fiscal year 1997 obligations pursuant to     16,246       

sections 3317.027 and 3317.028 of the Revised Code."               16,247       

      Section 12.  That existing Section 50.06 of Am. Sub. H.B.    16,249       

215 of the 122nd General Assembly, as amended by Am. Sub. H.B.     16,250       

182 and Am. Sub. H.B. 650 of the 122nd General Assembly, is        16,251       

hereby repealed.                                                                

      Section 13.  That Section 7 of Am. Sub. S.B. 102 of the      16,253       

122nd General Assembly be amended to read as follows:              16,254       

      "Sec. 7.  All items set forth in this section are hereby     16,258       

appropriated out of any moneys in the state treasury to the        16,259       

credit of the School Building Program Assistance Fund (Fund 032).  16,261       

Revenues to the School Building Program Assistance Fund shall      16,262       

consist of proceeds of obligations authorized to pay costs of      16,263       

capital facilities as defined in section 3318.21 of the Revised    16,264       

Code.                                                                           

                                                   Appropriations  16,266       

                SFC  SCHOOL FACILITIES COMMISSION                  16,267       

CAP-737  School Building Program Assistance     $  300,000,000     16,271       

Total School Facilities Commission              $  300,000,000     16,273       

      School Building Assistance                                   16,276       

      Of the foregoing appropriation item CAP-737, School          16,278       

Building Program Assistance, up to $200,000,000 shall be used by   16,279       

the Ohio School Facilities Commission to provide funds to schools  16,280       

that receive conditional approval by the Ohio School Facilities    16,282       

Commission pursuant to Chapter 3318. of the Revised Code.                       

      Up to $50,000,000 of that amount shall be used by the Ohio   16,284       

School Facilities Commission to administer the Emergency School    16,285       

Building Repair Program, pursuant to section 3318.35 of the        16,286       

                                                          363    

                                                                 
Revised Code.                                                                   

      Of the foregoing appropriation item CAP-737, School          16,288       

Building Program Assistance, notwithstanding Chapter 3318. of the  16,289       

Revised Code, up to $100,000,000 shall be used by the Ohio School  16,290       

Facilities Commission to provide funds to the big eight school     16,291       

districts to be used for major renovations, ADDITIONS, and         16,293       

repairs of school facilities.  Funds shall be allocated to the     16,294       

school districts on a per pupil basis, based on fiscal year 1997   16,295       

total average daily membership as defined in section 3317.03 of    16,296       

the Revised Code.  To be eligible to receive these funds, each     16,297       

school district shall:                                             16,298       

      (1)  Provide a 100 per cent match from funds that are        16,301       

approved by the Ohio School Facilities Commission;                              

      (2)  Develop and submit a capital renovations plan for the   16,303       

use of state and local funds subject to approval by the Ohio       16,304       

School Facilities Commission.                                      16,305       

      As used in this section, "big eight school district" means   16,307       

a school district that for fiscal year 1997 had a percentage of    16,308       

children residing in the district and receiving Aid to Dependent   16,309       

Children greater than thirty per cent, as reported pursuant to     16,310       

section 3317.10 of the Revised Code, and had an average daily      16,311       

membership greater than twelve thousand, as reported pursuant to   16,312       

division (A) of section 3317.03 of the Revised Code."              16,313       

      Section 14.  That existing Section 7 of Am. Sub. S.B. 102    16,315       

of the 122nd General Assembly is hereby repealed.                  16,316       

      Section 15.  That Section 50.52.12 of Am. Sub. H.B. 215 of   16,318       

the 122nd General Assembly is hereby repealed.                     16,319       

      Section 16.  Any school district that is part of an          16,321       

educational service center compact that has erroneously filed its  16,322       

average daily membership count by not recording its vocational     16,323       

students as "vocational education out-of-district" students,       16,324       

shall have fifteen years beginning in fiscal year 2000 to repay                 

the Department of Education for overpayments made by the           16,325       

Department of Education to such districts during FY 1997.  Such    16,326       

                                                          364    

                                                                 
districts shall not be liable for erroneous payments in previous   16,327       

years.  The repayments shall be made in equal yearly installments  16,328       

and shall be interest free.  The repayments shall be in the form   16,329       

of funds withheld from state basic aid made to the school                       

districts pursuant to section 3317.022 of the Revised Code by the  16,330       

Department of Education.                                           16,331       

      Section 17.  The enactment by this act of R.C. 3345.122 is   16,333       

intended to confirm the enactment of the section by Am. Sub. H.B.  16,335       

215 of the 122nd General Assembly, the biennial operating budget   16,336       

measure.  The Statement of the Reasons for the Veto of Items in    16,337       

Amended Substitute House Bill 215, Item Number Three, states that  16,338       

the Governor disapproved the enactment of the section, R.C.        16,339       

3345.182, that immediately follows R.C. 3345.122 in Am. Sub. H.B.  16,340       

215.  In boxing R.C. 3345.182 to indicate this disapproval,        16,341       

however, the Governor also boxed R.C. 3345.122.  The Statement of  16,342       

the Reasons for the Veto of Items, Item Number Three, indicates    16,343       

no intention to disapprove R.C. 3345.122.  And neither do the      16,344       

Governor's disapprovals in the enacting clauses of the title and   16,345       

Section 1 of Am. Sub. H.B. 215, where the Governor boxed the       16,346       

intention to enact R.C. 3345.182, but not the intention to enact   16,347       

R.C. 3345.122.                                                                  

      This section is subject to the referendum.                   16,349       

      Section 18.  Notwithstanding anything to the contrary in     16,351       

Chapter 3318. of the Revised Code:                                 16,352       

      (A)  The Ohio School Facilities Commission may complete      16,354       

on-site visits pursuant to section 3318.02 of the Revised Code     16,356       

and may make the project determinations specified in section       16,357       

3318.03 of the Revised Code for up to twelve more school                        

districts than the number of districts for whose projects the      16,358       

Commission projects sufficient funds have been appropriated for    16,359       

the biennium ending June 30, 1999.                                 16,360       

      (B)  The Ohio School Facilities Commission may               16,362       

conditionally approve and submit projects for such twelve school   16,364       

districts to the Controlling Board for approval and the            16,366       

                                                          365    

                                                                 
Controlling Board may approve such projects, but no state funds                 

shall be encumbered for the projects.                              16,367       

      (C)  A school district whose project is conditionally        16,369       

approved under division (B) of this section may accept the         16,370       

conditional approval and may submit the proposals required by      16,371       

division (A) and (B) of section 3318.05 of the Revised Code to     16,372       

the voters at the general election to be held November 3, 1998,                 

in the manner required by that section and section 3318.06 of the  16,373       

Revised Code.  However, no school district whose electors approve  16,374       

such proposals shall proceed to levy the tax or issue bonds        16,375       

authorized by the electorate until the state has encumbered funds  16,376       

for the project covered by the proposals and the district and the  16,377       

state have entered into the agreement required by section 3318.08               

of the Revised Code.                                               16,378       

      (D)  This section is not subject to the referendum and       16,380       

expires on June 30, 2000.                                          16,381       

      Section 19.  The amendment by this act of section 718.01     16,383       

and the enactment by this act of section 715.013 of the Revised    16,384       

Code shall be construed to effect the General Assembly's           16,386       

intention and understanding, prior to the decision of the Ohio     16,387       

Supreme Court in Cincinnati Bell Tel. Co. v. Cincinnati (1998),    16,388       

_____ Ohio St.3d _____ (No. 97-310, Decided May 13, 1998), that                 

the levy of each of the taxes enumerated in section 715.013 of     16,389       

the Revised Code preempted the authority of municipal              16,391       

corporations to levy any tax on the same or similar subjects for   16,392       

the respective periods of time during which the taxes so                        

enumerated were levied, pursuant to Cincinnati v. Am. Tel. & Tel.  16,393       

Co. (1925), 112 Ohio St. 493; Haefner v. Youngstown (1946), 147    16,394       

Ohio St. 58; and E. Ohio Gas Co. v. Akron (1966), 7 Ohio St.2d     16,396       

73.  Therefore, to the extent authorized by the Ohio               16,397       

Constitution, the General Assembly hereby prohibits municipal      16,398       

corporations from assessing or collecting any tax levied by        16,399       

municipal corporations that had not been assessed prior to May     16,400       

13, 1998, against subjects that are the same as or similar to                   

                                                          366    

                                                                 
those that are subject to the taxes enumerated in section 715.013  16,401       

of the Revised Code.  To the extent such prohibition is not        16,402       

authorized under the Ohio Constitution, any claim by a municipal   16,403       

corporation for a tax levied by a municipal corporation that had   16,404       

not been assessed prior to the effective date of this section                   

against subjects that are the same as or similar to those that     16,405       

are subject to the taxes enumerated in section 715.013 of the      16,406       

Revised Code shall be asserted not later than thirty days after    16,407       

the effective date of this section.  Nothing in this section       16,408       

shall be construed to abate or modify any person's liability for                

taxes that may be due as a result of the finding by the Ohio       16,409       

Supreme Court in Cincinnati Bell Tel. Co. v. Cincinnati.           16,410       

      This section is subject to the referendum.                   16,412       

      Section 20.  Section 5733.04 of the Revised Code is          16,414       

presented in this act as a composite of the section as amended by  16,415       

both Am. Sub. H.B. 215 and Sub. H.B. 408 of the 122nd General      16,416       

Assembly, with the new language of neither of the acts shown in    16,418       

capital letters.  This is in recognition of the principle stated   16,419       

in division (B) of section 1.52 of the Revised Code that such      16,420       

amendments are to be harmonized where not substantively            16,421       

irreconcilable and constitutes a legislative finding that such is  16,422       

the resulting version in effect prior to the effective date of     16,423       

this act.                                                                       

      Section 21.  Section 5747.01 of the Revised Code is          16,425       

presented in this act as a composite of the section as amended by  16,426       

both Am. Sub. H.B. 215 and Sub. H.B. 408 of the 122nd General      16,427       

Assembly, with the new language of neither of the acts shown in    16,429       

capital letters.  This is in recognition of the principle stated   16,430       

in division (B) of section 1.52 of the Revised Code that such      16,431       

amendments are to be harmonized where not substantively            16,432       

irreconcilable and constitutes a legislative finding that such is  16,433       

the resulting version in effect prior to the effective date of     16,434       

this act.                                                                       

      Section 22.  Except as otherwise specifically provided in    16,436       

                                                          367    

                                                                 
this act, the codified and uncodified sections of law contained    16,437       

in this act, and the items of law of which the codified and        16,438       

uncodified sections of law contained in this act are composed,     16,439       

are not subject to the referendum.  Therefore, under Ohio          16,440       

Constitution, Article II, Section 1d and section 1.471 of the      16,441       

Revised Code, the codified and uncodified sections and items of    16,442       

law contained in this act, except as otherwise specifically        16,443       

provided in this act, go into immediate effect when this act       16,444       

becomes law.                                                       16,445       

      Section 23.  Sections 3313.646, 3313.841, 3313.842,          16,447       

3313.975, 3313.98, 3314.02, 3314.03, 3314.06, 3314.07, 3314.08,    16,448       

3314.12, 3314.13, 3317.01, 3317.013, 3317.02, 3317.021, 3317.022,  16,450       

3317.023, 3317.024, 3317.029, 3317.0212, 3317.0213, 3317.0214,     16,451       

3317.0215, 3317.0216, 3317.03, 3317.05, 3317.051, 3317.06,         16,452       

3317.082, 3317.10, 3317.11, 3317.161, 3317.19, 3317.20, 3318.06,   16,453       

3318.08, 3318.10, 3319.22, 3323.091, and 3323.12 of the Revised    16,454       

Code; Section 50.11 of Am. Sub. H.B. 215 of the 122nd General      16,455       

Assembly (renumbered as section 3317.162 of the Revised Code);     16,456       

Sections 50.52, 50.52.2, 50.52.4, 50.52.7, 50.52.9, and 50.52.12   16,457       

of Am. Sub. H.B. 215 of the 122nd General Assembly; Sections       16,458       

50.44 and 50.52.5 of Am. Sub. H.B. 215 of the 122nd General                     

Assembly as amended by Am. Sub. H.B. 650 of the 122nd General      16,459       

Assembly; Section 19 of Am. Sub. H.B. 650 of the 122nd General     16,460       

Assembly; and Section 18 of this act, as contained in this act,    16,461       

and the items of law of which such sections as contained in this   16,463       

act are composed, are not subject to the referendum.  Therefore,   16,464       

under Ohio Constitution, Article II, Section 1d and section 1.471  16,465       

of the Revised Code, such sections and items of law are entitled   16,466       

to go into immediate effect when this act becomes law.  However,   16,467       

such sections and items of law take effect on July 1, 1998, or     16,468       

the day this act becomes law, whichever is later.                  16,469       

      Section 24.  Sections 101.68, 126.14, 131.35, 133.06,        16,472       

325.19, 715.013, 718.01, 3315.171, 3315.181, 3345.122, 3734.57,    16,473       

3734.82, 4123.40, 4701.10, 4701.20, 4743.05, 4745.01, 4981.091,    16,474       

                                                          368    

                                                                 
5101.93, 5104.32, 5104.34, 5104.35, 5104.38, 5711.22, 5733.04,     16,475       

5733.05, 5733.057, 5733.058, 5733.0611, 5733.12, 5733.40,          16,477       

5733.401, 5733.402, 5733.98, 5747.01, 5747.08, 5747.401, 5747.43,  16,478       

5747.452, 5747.98, and 5907.15 of the Revised Code, as contained   16,479       

in this act, and the items of law of which such sections as        16,480       

contained in this act are composed, are subject to the             16,481       

referendum.  Therefore, under Ohio Constitution, Article II,                    

Section 1c and section 1.471 of the Revised Code, such sections    16,482       

and items of law take effect on the ninety-first day after this    16,483       

act is filed with the Secretary of State.  If, however, a          16,484       

referendum petition is filed against any such section or item of   16,485       

law, the section or item of law, unless rejected at the            16,486       

referendum, takes effect at the earliest time permitted by law.    16,487       

      Section 25.  Uncodified sections of law contained in this    16,489       

act, and items of law contained within the uncodified sections of  16,491       

law contained in this act, that explicitly state they are subject  16,492       

to the referendum are subject to the referendum.  Therefore,       16,493       

under Ohio Constitution, Article II, Section 1c and section 1.471  16,494       

of the Revised Code, the uncodified sections and items of law      16,495       

that explicitly state they are subject to the referendum take      16,496       

effect on the ninety-first day after this act is filed with the    16,497       

Secretary of State.  If, however, a referendum petition is filed   16,498       

against an uncodified section or item of law that explicitly       16,499       

states it is subject to the referendum, the uncodified section or  16,500       

item of law, unless rejected at the referendum, takes effect at    16,501       

the earliest time permitted by law.                                             

      This section defines the effect of an uncodified section or  16,503       

item of law explicitly stating that it is subject to the           16,504       

referendum, but this section is not itself to be considered        16,505       

explicitly to state that it is subject to the referendum.          16,506