As Introduced* 1
122nd General Assembly 4
Regular Session S. B. No. 102 5
1997-1998 6
SENATORS DIX-GILLMOR-B. JOHNSON-BLESSING-CARNES-CUPP- 8
DRAKE-FINAN-GAETH-GARDNER-HORN-KEARNS-LATTA-NEIN- 9
RAY-SCHAFRATH-WHITE 10
12
A B I L L
To amend sections 133.06, 3313.372, 3318.01, 14
3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 16
3318.051, 3318.06, 3318.07, 3318.08, 3318.081,
3318.091, 3318.10, 3318.111, 3318.12, 3318.13, 17
3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 18
3318.19, 3318.22, 3318.23, 3318.24, 3318.25, 19
3318.26, 3318.27, 3318.29, and 4115.04 and to
enact sections 3318.041, 3318.082, 3318.30, 20
3318.31, and 3318.35 to create the Ohio School 21
Facilities Commission, to transfer responsibility
for the Classroom Facilities Assistance Program 22
from the State Board of Education to the 23
Commission, to make other changes to the 24
Classroom Facilities Assistance Law, to exempt
from prevailing wage law public improvements and 25
construction undertaken by school districts and
educational service centers, and to make an 26
appropriation. 27
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 29
Section 1. That sections 133.06, 3313.372, 3318.01, 31
3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 3318.051, 3318.06, 33
3318.07, 3318.08, 3318.081, 3318.091, 3318.10, 3318.111, 3318.12, 34
3318.13, 3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 3318.19, 35
3318.22, 3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 3318.29, 36
2
and 4115.04 be amended and sections 3318.041, 3318.082, 3318.30, 38
3318.31, and 3318.35 of the Revised Code be enacted to read as 39
follows:
Sec. 133.06. (A) A school district shall not incur, 48
without a vote of the electors, net indebtedness that exceeds an 49
amount equal to one-tenth of one per cent of its tax valuation 50
except as provided in divisions (G) and (H) of this section and 52
in division (C) of section 3313.372 of the Revised Code. 53
(B) Except as provided in divisions (E) and (F) of this 55
section, a school district shall not incur net indebtedness that 56
exceeds an amount equal to nine per cent of its tax valuation. 57
(C) A school district shall not submit to a vote of the 59
electors the question of the issuance of securities in an amount 60
that will make the district's net indebtedness after the issuance 61
of the securities exceed an amount equal to four per cent of its 62
tax valuation, unless the superintendent of public instruction, 63
acting under policies adopted by the state board of education, 64
and the tax commissioner, acting under written policies of the 65
commissioner, consent to the submission. A request for the 66
consents shall be made at least thirty days prior to the election 67
at which the question is to be submitted except that the 68
superintendent of public instruction and the tax commissioner may 69
waive this thirty-day deadline or grant their consents after the 70
election if the school district shows good cause for such waiver 71
or consent after the election. 72
(D) In calculating the net indebtedness of a school 74
district none of the following shall be considered: 75
(1) Securities issued to acquire school buses and other 77
equipment used in transporting pupils or issued pursuant to 78
division (D) of section 133.10 of the Revised Code; 79
(2) Securities issued under division (F) of this section, 81
under section 133.301 of the Revised Code, and, to the extent in 82
excess of the limitation stated in division (B) of this section, 83
under division (E) of this section; 84
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(3) Indebtedness resulting from the dissolution of a joint 86
vocational school district under section 3311.217 of the Revised 87
Code, evidenced by outstanding securities of that joint 88
vocational school district; 89
(4) Loans, evidenced by any securities, received under 91
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the 92
Revised Code; 93
(5) Debt incurred under section 3313.374 of the Revised 95
Code;
(6) Debt incurred pursuant to division (B)(5) of section 98
3313.37 of the Revised Code to acquire computers and related
hardware.
(E) A school district may become a special needs district 100
as to certain securities as provided in this division (E). 101
(1) A board of education, by resolution, may declare its 103
school district to be a special needs district by determining 104
both of the following: 105
(a) The student population is not being adequately 107
serviced by the existing permanent improvements of the district. 108
(b) The district cannot obtain sufficient funds by the 110
issuance of securities within the limitation of division (B) of 111
this section to provide additional or improved needed permanent 112
improvements in time to meet the needs. 113
(2) The board of education shall certify a copy of that 115
resolution to the superintendent of public instruction with a 116
statistical report showing all of the following: 117
(a) A history of and a projection of the growth of the 119
student population; 120
(b) The history of and a projection of the growth of the 122
tax valuation; 123
(c) The projected needs; 125
(d) The estimated cost of permanent improvements proposed 127
to meet such projected needs. 128
(3) The superintendent of public instruction shall certify 130
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the district as an approved special needs district if the 131
superintendent finds both of the following: 132
(a) The district does not have available sufficient 134
additional funds from state or federal sources to meet the 135
projected needs. 136
(b) The projection of the potential average growth of tax 138
valuation during the next five years, according to the 139
information certified to the superintendent and any other 140
information the superintendent obtains, indicates a likelihood of 141
potential average growth of tax valuation of the district during 142
the next five years of an average of not less than three per cent 143
per year. The findings and certification of the superintendent 144
shall be conclusive. 145
(4) An approved special needs district may incur net 147
indebtedness by the issuance of securities in accordance with the 148
provisions of this chapter in an amount that does not exceed an 149
amount equal to the greater of the following: 150
(a) Nine per cent of the sum of its tax valuation plus an 152
amount that is the product of multiplying that tax valuation by 153
the percentage by which the tax valuation has increased over the 154
tax valuation on the first day of the sixtieth month preceding 155
the month in which its board determines to submit to the electors 156
the question of issuing the proposed securities; 157
(b) Nine per cent of the sum of its tax valuation plus an 159
amount that is the product of multiplying that tax valuation by 160
the percentage, determined by the superintendent of public 161
instruction, by which that tax valuation is projected to increase 162
during the next ten years. 163
(F) A school district may issue securities for emergency 165
purposes, in a principal amount that does not exceed an amount 166
equal to three per cent of its tax valuation, as provided in this 167
division. 168
(1) A board of education, by resolution, may declare an 170
emergency if it determines both of the following: 171
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(a) School buildings or other necessary school facilities 173
in the district have been wholly or partially destroyed, or 174
condemned by a constituted public authority, or that such 175
buildings or facilities are partially constructed, or so 176
constructed or planned as to require additions and improvements 177
to them before the buildings or facilities are usable for their 178
intended purpose, or that corrections to permanent improvements 179
are necessary to remove or prevent health or safety hazards. 180
(b) Existing fiscal and net indebtedness limitations make 182
adequate replacement, additions, or improvements impossible. 183
(2) Upon the declaration of an emergency, the board of 185
education may, by resolution, submit to the electors of the 186
district pursuant to section 133.18 of the Revised Code the 187
question of issuing securities for the purpose of paying the 188
cost, in excess of any insurance or condemnation proceeds 189
received by the district, of permanent improvements to respond to 190
the emergency need. 191
(3) The procedures for the election shall be as provided 193
in section 133.18 of the Revised Code, except that: 194
(a) The form of the ballot shall describe the emergency 196
existing, refer to this division as the authority under which the 197
emergency is declared, and state that the amount of the proposed 198
securities exceeds the limitations prescribed by division (B) of 199
this section; 200
(b) The resolution required by division (B) of section 202
133.18 of the Revised Code shall be certified to the county 203
auditor and the board of elections at least seventy-five days 204
prior to the election; 205
(c) The county auditor shall advise and, not later than 207
sixty-five days before the election, confirm that advice by 208
certification to, the board of education of the information 209
required by division (C) of section 133.18 of the Revised Code; 210
(d) The board of education shall then certify its 212
resolution and the information required by division (D) of 213
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section 133.18 of the Revised Code to the board of elections not 214
less than sixty days prior to the election. 215
(4) Notwithstanding division (B) of section 133.21 of the 217
Revised Code, the first principal payment of securities issued 218
under this division may be set at any date not later than sixty 219
months after the earliest possible principal payment otherwise 220
provided for in that division. 221
(G) The board of education may contract with an architect, 223
professional engineer, or other person experienced in the design 224
and implementation of energy conservation measures for an 225
analysis and recommendations pertaining to installations, 226
modifications of installations, or remodeling that would 227
significantly reduce energy consumption in buildings owned by the 228
district. The report shall include estimates of all costs of 229
such installations, modifications, or remodeling including costs 230
of design, engineering, installation, maintenance, repairs and 231
debt service, and estimates of the amounts by which energy 232
consumption and resultant operational and maintenance costs, as 233
defined by the department of education OHIO SCHOOL FACILITIES 234
COMMISSION, would be reduced. 235
If the board finds after receiving the report that the 237
amount of money the district would spend on such installations, 238
modifications, or remodeling is not likely to exceed the amount 239
of money it would save in energy and resultant operational and 240
maintenance costs over the ensuing ten years, the board may 242
submit to the department of education COMMISSION a copy of its 243
findings and a request for approval to incur indebtedness to 245
finance the making or modification of installations or the
remodeling of buildings for the purpose of significantly reducing 246
energy consumption. 247
If the department COMMISSION determines that the board's 249
findings are reasonable, it shall approve the board's request. 251
Upon receipt of the department's COMMISSION'S approval, the 252
district may issue securities without a vote of the electors in a 254
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principal amount not to exceed nine-tenths of one per cent of its 255
tax valuation for the purpose of making such installations, or 256
modifications, or remodeling, but the total net indebtedness of 257
the district without a vote of the electors incurred under this 258
and all other sections of the Revised Code shall not exceed one 259
per cent of the district's tax valuation. 260
So long as any securities issued under this division (G) 262
remain outstanding, the board of education shall monitor the 263
energy consumption and resultant operational and maintenance 264
costs of buildings in which installations or modifications have 266
been made or remodeling has been done pursuant to this division 267
(G) and shall maintain and annually update a report documenting 268
the reductions in energy consumption and resultant operational 269
and maintenance cost savings attributable to such installations, 270
modifications, or remodeling. The report shall be certified by 271
an architect or engineer independent of any person that provided 272
goods or services to the board in connection with the energy 273
conservation measures that are the subject of the report. The 274
resultant operational and maintenance cost savings shall be 275
certified by the school district treasurer. The report shall be 276
made available to the department of education COMMISSION upon 278
request.
(H) With the consent of the superintendent of public 280
instruction, a school district may incur without a vote of the 281
electors net indebtedness that exceeds the amounts stated in 282
divisions (A) and (G) of this section for the purpose of paying 284
costs of permanent improvements, if and to the extent that both 285
of the following conditions are satisfied: 286
(1) The fiscal officer of the school district estimates 288
that receipts of the school district from compensation derived 289
from or under agreements entered into pursuant to section 5709.82 290
of the Revised Code, or distributions under division (C) of 291
section 5709.43 of the Revised Code, or any combination thereof, 292
are, after accounting for any appropriate coverage requirements, 293
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sufficient in time and amount, and are committed by the 294
proceedings, to pay the debt charges on the securities issued to 295
evidence that indebtedness and payable from those receipts, and 296
the taxing authority of the district confirms the fiscal 297
officer's estimate, which confirmation is approved by the 298
superintendent of public instruction; 299
(2) The fiscal officer of the school district certifies, 301
and the taxing authority of the district confirms, that the 302
district, at the time of the certification and confirmation, 303
reasonably expects to have sufficient revenue available for the 304
purpose of operating such permanent improvements for their 305
intended purpose upon acquisition or completion thereof, and the 306
superintendent of public instruction approves the taxing 307
authority's confirmation. 308
The maximum maturity of securities issued under division 310
(H) of this section shall be the lesser of twenty years or the 311
maximum maturity calculated under section 133.20 of the Revised 312
Code. 313
Sec. 3313.372. (A) As used in this section, "energy 322
conservation measure" means an installation or modification of an 323
installation in, or remodeling of, a building, to reduce energy 324
consumption. It includes: 325
(1) Insulation of the building structure and systems 327
within the building; 328
(2) Storm windows and doors, multiglazed windows and 330
doors, heat absorbing or heat reflective glazed and coated window 331
and door systems, additional glazing, reductions in glass area, 332
and other window and door system modifications that reduce energy 333
consumption; 334
(3) Automatic energy control systems; 336
(4) Heating, ventilating, or air conditioning system 338
modifications or replacements; 339
(5) Caulking and weatherstripping; 341
(6) Replacement or modification of lighting fixtures to 343
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increase the energy efficiency of the system without increasing 344
the overall illumination of a facility, unless such increase in 345
illumination is necessary to conform to the applicable state or 346
local building code for the proposed lighting system; 347
(7) Energy recovery systems; 349
(8) Cogeneration systems that produce steam or forms of 351
energy such as heat, as well as electricity, for use primarily 352
within a building or complex of buildings; 353
(9) Any other modification, installation, or remodeling 355
approved by the department of education OHIO SCHOOL FACILITIES 357
COMMISSION as an energy conservation measure. 358
(B) A board of education of a city, exempted village, 360
local, or joint vocational school district may enter into an 361
installment payment contract for the purchase and installation of 362
energy conservation measures. The provisions of such installment 363
payment contracts dealing with interest charges and financing 364
terms shall not be subject to the competitive bidding 365
requirements of section 3313.46 of the Revised Code, and shall be 366
on the following terms: 367
(1) Not less than one-tenth of the costs thereof shall be 370
paid within two years from the date of purchase. 371
(2) The remaining balance of the costs thereof shall be 373
paid within ten years from the date of purchase. 374
An installment payment contract entered into by a board of 377
education under this section shall require the board to contract 378
in accordance with division (A) of section 3313.46 of the Revised
Code for the installation, modification, or remodeling of energy 380
conservation measures unless division (A) of section 3313.46 of 381
the Revised Code does not apply pursuant to division (B)(3) of 382
that section.
(C) The board may issue the notes of the school district 384
signed by the president and the treasurer of the board and 385
specifying the terms of the purchase and securing the deferred 386
payments provided in this section, payable at the times provided 387
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and bearing interest at a rate not exceeding the rate determined 388
as provided in section 9.95 of the Revised Code. The notes may 389
contain an option for prepayment and shall not be subject to 390
Chapter 133. of the Revised Code. In the resolution authorizing 391
the notes, the board may provide, without the vote of the 392
electors of the district, for annually levying and collecting 393
taxes in amounts sufficient to pay the interest on and retire the 394
notes, except that the total net indebtedness of the district 395
without a vote of the electors incurred under this and all other 396
sections of the Revised Code shall not exceed one per cent of the
district's tax valuation. Revenues derived from local taxes or 398
otherwise, for the purpose of conserving energy or for defraying 399
the current operating expenses of the district, may be applied to 400
the payment of interest and the retirement of such notes. The 401
notes may be sold at private sale or given to the contractor 402
under the installment payment contract authorized by division (B) 403
of this section.
(D) Debt incurred under this section shall not be included 405
in the calculation of the net indebtedness of a school district 406
under section 133.06 of the Revised Code. 407
(E) No school district board shall enter into an 409
installment payment contract under division (B) of this section 410
unless it first obtains a report of the costs of the energy 411
conservation measures and the savings thereof as described under 412
division (G) of section 133.06 of the Revised Code as a 413
requirement for issuing energy securities, makes a finding that 414
the amount spent on such measures is not likely to exceed the 415
amount of money it would save in energy costs and resultant 416
operational and maintenance costs as described in that division, 417
and the department of education OHIO SCHOOL FACILITIES COMMISSION 419
determines that the district board's findings are reasonable and 420
approves the contract as described in that division. 421
The district board shall monitor the savings and maintain a 423
report of those savings, which shall be available to the 424
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department COMMISSION in the same manner as required by division 426
(G) of section 133.06 of the Revised Code in the case of energy 427
securities.
Sec. 3318.01. As used in sections 3318.01 to 3318.20 of 436
the Revised Code: 437
(A) "State board OHIO SCHOOL FACILITIES COMMISSION" means 440
the state board of education COMMISSION created pursuant to 441
Section 4 of Article VI, Ohio Constitution, acting for itself and 443
on behalf of the state department of education, as agencies of 444
state government SECTION 3318.30 OF THE REVISED CODE.
(B) "Classroom facilities" means rooms in which pupils 446
regularly assemble in public school buildings to receive 447
instruction and education and such facilities and building 448
improvements for the operation and use of such rooms as may be 449
needed in order to provide a complete educational program, AND 450
MAY INCLUDE SPACE WITHIN WHICH A CHILD DAY-CARE FACILITY OR A 451
COMMUNITY RESOURCE CENTER IS HOUSED. 452
(C) "Project" means a project to construct or acquire 454
classroom facilities, or to reconstruct or make additions to 456
existent EXISTING classroom facilities, to be used for housing 457
the applicable school district and its functions.
(D) "School district" means a local, exempted village, or 459
city school district as such districts are defined in Chapter 460
3311. of the Revised Code, acting as an agency of state 461
government, performing essential governmental functions of state 462
government pursuant to sections 3318.01 and 3318.20 of the 463
Revised Code.
(E) "School district board" means the board of education 465
of a school district. 466
(F) "Net bonded indebtedness" means the difference between 468
the SUM OF THE par value of all outstanding and unpaid bonds and 469
notes which a school district board is obligated to pay, together 471
with ANY AMOUNTS THE SCHOOL DISTRICT IS OBLIGATED TO PAY UNDER 472
LEASE-PURCHASE AGREEMENTS ENTERED INTO UNDER SECTION 3313.375 OF 473
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THE REVISED CODE, AND the par value of bonds authorized by the 474
electors but not yet issued, the proceeds of which can lawfully 475
be used for the project, and the amount held in the sinking fund 476
and other indebtedness retirement funds for their redemption. 477
Notes issued for school buses in accordance with section 3327.08 478
of the Revised Code, notes issued in anticipation of the 479
collection of current revenues, and bonds issued to pay final 480
judgments shall not be considered in calculating the net bonded 481
indebtedness.
"Net bonded indebtedness" does not include indebtedness 483
arising from the acquisition of land to provide a site for 484
classroom facilities constructed, acquired, or added to pursuant 485
to sections 3318.01 to 3318.20 of the Revised Code. 486
(G) "Board of elections" means the board of elections of 488
the county containing the most populous portion of the school 489
district. 490
(H) "County auditor" means the auditor of the county in 492
which the greatest value of taxable property of such school 493
district is located. 494
(I) "Tax duplicates" means the general tax lists and 496
duplicates prescribed by sections 319.28 and 319.29 of the 497
Revised Code. 498
(J) "Required level of indebtedness" means: 500
(1) In, IN the case of a school district contained in the 503
first quartile of the most recent ranking of school districts
according to adjusted valuation per pupil compiled by the 504
department of education pursuant to section 3318.011 of the 505
Revised Code, five per cent of the total value of all property in 506
the district as listed and assessed for taxation on the tax 507
duplicates. 508
(2) In the case of a school district contained in the 510
second quartile of such ranking, six per cent of such total value 511
of all property DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE 512
HUNDREDTH PERCENTILES, FIVE PER CENT OF VALUATION PLUS [TWO 514
13
ONE-HUNDREDTHS OF ONE PER CENT MULTIPLIED BY (THE PERCENTILE IN 516
WHICH THE DISTRICT RANKS MINUS ONE)<.
(3) In the case of all other school districts, seven per 518
cent of such total value of all property. 519
(K) "Required percentage of the basic project costs" 521
means:
(1) In, IN the case of a district contained in the first 524
decile of the most recent ranking of school districts according
to adjusted valuation per pupil compiled by the department of 525
education pursuant to section 3318.011 of the Revised Code, an 526
amount equal to zero; 527
(2) In the case of a district contained in the second 529
decile of such ranking, an amount equal to ten per cent of the 530
basic project costs; 531
(3) In the case of a district contained in the third 533
decile of such ranking, an amount equal to twenty per cent of the 534
basic project costs; 535
(4) In the case of a district contained in the fourth 537
decile of such ranking, an amount equal to thirty per cent of the 538
basic project costs; 539
(5) In the case of a district contained in the fifth 541
decile of such ranking, an amount equal to forty per cent of the 542
basic project costs; 543
(6) In the case of a district contained in the sixth 545
decile of such ranking, an amount equal to fifty per cent of the 546
basic project costs; 547
(7) In the case of a district contained in the seventh 549
decile of such ranking, an amount equal to sixty per cent of the 550
basic project costs; 551
(8) In the case of a district contained in the eighth 553
decile of such ranking, an amount equal to seventy per cent of 554
the basic project costs; 555
(9) In the case of a district contained in the ninth 557
decile of such ranking, an amount equal to eighty per cent of the 558
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basic project costs; 559
(10) In the case of a district contained in the tenth 561
decile of such ranking, an amount equal to ninety per cent of the 562
basic project costs DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE 563
HUNDREDTH PERCENTILES, ONE PER CENT OF THE BASIC PROJECT COSTS 564
TIMES THE PERCENTILE IN WHICH THE DISTRICT RANKS. 565
(L) "Basic project cost" means a cost amount determined in 567
accordance with a written policy RULES adopted UNDER SECTION 569
111.15 OF THE REVISED CODE by the superintendent of public 570
instruction, the director of budget and management, and the 571
director of the legislative budget office of the legislative 572
service commission and agreed to by them OHIO SCHOOL FACILITIES 573
COMMISSION. The basic project cost calculation shall take into 574
consideration the square footage and cost per square foot 575
necessary for the grade levels to be housed in the classroom 576
facilities, the variation across the state in construction and
related costs, THE COST OF THE INSTALLATION OF SITE UTILITIES AND 577
SITE PREPARATION, the cost of insuring the project until it is 578
completed, and the professional planning, administration, and 580
design fees that a district may have to pay to undertake a 581
classroom facilities project.
(M) "CHILD DAY-CARE FACILITY" MEANS SPACE WITHIN A 584
CLASSROOM FACILITY IN WHICH THE NEEDS OF INFANTS, TODDLERS, 585
PRESCHOOL CHILDREN, AND SCHOOL CHILDREN ARE PROVIDED FOR BY 586
PERSONS OTHER THAN THE PARENT OR GUARDIAN OF SUCH CHILDREN FOR 587
ANY PART OF THE DAY, INCLUDING PERSONS NOT EMPLOYED BY THE SCHOOL
DISTRICT OPERATING SUCH CLASSROOM FACILITY. 588
(N) "COMMUNITY RESOURCE CENTER" MEANS SPACE WITHIN A 591
CLASSROOM FACILITY IN WHICH COMPREHENSIVE SERVICES THAT SUPPORT 592
THE NEEDS OF FAMILIES AND CHILDREN ARE PROVIDED BY COMMUNITY 593
BASED SOCIAL SERVICE PROVIDERS. 594
(O) "VALUATION" MEANS THE TOTAL VALUE OF ALL PROPERTY IN 596
THE DISTRICT AS LISTED AND ASSESSED FOR TAXATION ON THE TAX 597
DUPLICATES.
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(P) "PERCENTILE" MEANS THE PERCENTILE IN WHICH THE 599
DISTRICT IS RANKED PURSUANT TO DIVISION (C) OF SECTION 3318.011 600
OF THE REVISED CODE.
(Q) "INSTALLATION OF SITE UTILITIES" MEANS THE 602
INSTALLATION OF A SITE DOMESTIC WATER SYSTEM, SITE FIRE 603
PROTECTION SYSTEM, SITE GAS DISTRIBUTION SYSTEM, SITE SANITARY 604
SYSTEM, SITE STORM DRAINAGE SYSTEM, AND SITE TELEPHONE AND DATA 605
SYSTEM.
(R) "SITE PREPARATION" MEANS THE EARTHWORK NECESSARY FOR 608
PREPARATION OF THE BUILDING FOUNDATION SYSTEM, THE PAVED 609
PEDESTRIAN AND VEHICULAR CIRCULATION SYSTEM, PLAYGROUNDS ON THE 610
PROJECT SITE, AND LAWN AND PLANTING ON THE PROJECT SITE. 611
Sec. 3318.011. For purposes of providing assistance under 620
sections 3318.01 to 3318.20 of the Revised Code, the department 621
of education shall annually do all of the following: 622
(A) Calculate the adjusted valuation per pupil of each 624
city, local, and exempted village school district according to 625
the formula set forth in section 3317.0213 of the Revised Code; 626
(B) Rank all such districts in order of adjusted valuation 628
per pupil from the district with the lowest adjusted valuation 629
per pupil to the district with the highest adjusted valuation per 630
pupil; 631
(C) Divide such ranking into quartiles with the first 633
quartile containing those twenty-five per cent of school 634
districts having the lowest adjusted valuation per pupil and the 635
fourth quartile containing those twenty-five per cent of school 636
districts having the highest adjusted valuation per pupil DIVIDE 637
SUCH RANKING INTO PERCENTILES WITH THE FIRST PERCENTILE 638
CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS HAVING THE LOWEST 639
ADJUSTED VALUATION PER PUPIL AND THE ONE-HUNDREDTH PERCENTILE 640
CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS HAVING THE 641
HIGHEST ADJUSTED VALUATION PER PUPIL;
(D) Divide such ranking into deciles with the first decile 643
containing those ten per cent of school districts having the 644
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lowest adjusted valuation per pupil and the tenth quartile 645
containing those ten per cent of school districts having the 646
highest adjusted valuation per pupil. 647
(E) Determine the school districts that have an adjusted 649
valuation per pupil that is greater than the median adjusted 650
valuation per pupil for all school districts in the state; 651
(E) CERTIFY THE INFORMATION DESCRIBED IN DIVISIONS (A) TO 654
(D) OF THIS SECTION TO THE OHIO SCHOOL FACILITIES COMMISSION. 655
Sec. 3318.02. (A) For purposes of Chapter 3318. SECTIONS 664
3318.01 TO 3318.31 of the Revised Code, the state board of 666
education OHIO SCHOOL FACILITIES COMMISSION shall periodically 667
perform an assessment of the classroom facility needs in the 668
state to identify school districts in need of additional 669
classroom facilities, or replacement or reconstruction of
existent classroom facilities, and the cost to each such district 670
of constructing or acquiring such additional facilities or making 671
such renovations.
(B) Based upon the most recent assessment conducted 673
pursuant to division (A) of this section, the state board of 674
education COMMISSION shall, in ascending order of the most 676
current ranking of school districts under division (B) of section
3318.011 of the Revised Code, conduct on-site visits to school 677
districts identified as having classroom facilities needs and to 678
confirm the findings of the periodic assessment and to further 679
evaluate the facilities needs of the district. The evaluation 680
shall assess the district's need to construct or acquire new 681
classroom facilities and may include an assessment of the
district's need for building additions or for the reconstruction 682
of existent buildings in lieu of constructing or acquiring 683
replacement buildings.
In THE FIRST ROUND OF ON-SITE VISITS FIRST SUCCEEDING THE 685
EFFECTIVE DATE OF THIS AMENDMENT SHALL BE LIMITED TO THE SCHOOL 686
DISTRICTS IN THE FIRST THROUGH FIFTH PERCENTILES, EXCLUDING 687
DISTRICTS THAT ARE INELIGIBLE FOR FUNDING UNDER THIS CHAPTER 688
17
PURSUANT TO SECTION 3318.04 OF THE REVISED CODE. THE SECOND 690
ROUND OF ON-SITE VISITS SHALL BE LIMITED TO THE SCHOOL DISTRICTS 691
IN THE FIRST THROUGH TENTH PERCENTILES, EXCLUDING DISTRICTS THAT 692
ARE INELIGIBLE FOR FUNDING UNDER THIS CHAPTER PURSUANT TO SECTION 693
3318.04 OF THE REVISED CODE. EACH SUCCEEDING ROUND OF ON-SITE 694
VISITS SHALL BE LIMITED TO THE PERCENTILES INCLUDED IN THE 695
IMMEDIATELY PRECEDING ROUND OF ON-SITE VISITS PLUS THE NEXT FIVE 696
PERCENTILES. EXCEPT FOR THE FIRST ROUND OF ON-SITE VISITS, NO 697
ROUND OF ON-SITE VISITS SHALL COMMENCE UNLESS EIGHTY PER CENT OF 698
THE DISTRICTS FOR WHICH ON-SITE VISITS WERE PERFORMED DURING THE 699
IMMEDIATELY PRECEDING ROUND, AND FOR WHICH A PROJECT WAS APPROVED 701
UNDER SECTION 3318.04 OF THE REVISED CODE, HAVE AT LEAST 702
COMMENCED CONSTRUCTION OR ACQUISITION OF THE APPROVED PROJECT. 703
(C) NOTWITHSTANDING DIVISION (B) OF THIS SECTION, IN any 707
biennium, the state board COMMISSION may limit the number of 708
districts for which it conducts on-site visits based upon its 709
projections of the moneys available and moneys necessary to 710
undertake projects under this chapter SECTIONS 3318.01 TO 3318.31 711
OF THE REVISED CODE for the current biennium. 712
Sec. 3318.03. Upon conducting the on-site evaluation under 721
section 3318.02 of the Revised Code, the department of education 722
OHIO SCHOOL FACILITIES COMMISSION shall make a determination of 724
the needs of the school district for additional classroom 725
facilities; the number of classroom facilities to be included in 726
a project and the basic project cost of constructing, acquiring, 727
reconstructing, or making additions to each such facility; IF THE 728
SCHOOL DISTRICT IS RANKED IN THE ELEVENTH THROUGH ONE-HUNDREDTH 729
PERCENTILES, the amount of such cost that the school district can 730
supply from available funds, by the issuance of bonds previously 732
authorized by the electors of the school district the proceeds of 733
which can lawfully be used for the project, and by the issuance 734
of bonds under section 3318.05 of the Revised Code; and the 735
remaining amount of such cost that shall be supplied by the 736
state. The state board COMMISSION shall make a favorable 738
18
determination only upon evidence that the proposed project 739
conforms to sound educational practice, that it is in keeping 740
with the orderly process of school district reorganization and 741
consolidation, and that the actual or projected enrollment in 742
each classroom facility proposed to be included in the project is 744
at least three hundred fifty pupils. Exceptions shall be
authorized only in those districts where topography, sparcity of 746
population, and other factors make larger schools impracticable. 747
Sections 125.81 and 153.04 of the Revised Code shall not 749
apply to classroom facilities constructed under sections 3318.01 750
to 3318.20 of the Revised Code. 751
Sec. 3318.04. If the state board of education OHIO SCHOOL 761
FACILITIES COMMISSION makes a determination under section 3318.03 762
of the Revised Code in favor of the proposed project, the project 764
shall be conditionally approved and the state board COMMISSION 765
thereupon shall reserve and encumber from the total funds 767
appropriated for the purpose of sections 3318.01 to 3318.20 of 768
the Revised Code, the estimated amount of the state's portion of 769
the basic project cost. Such conditional approval shall be 770
submitted to the controlling board for approval thereof. The
controlling board shall forthwith approve or reject the state 771
board's COMMISSION'S determination, conditional approval, and the 772
estimated amount of the state's portion of the basic project 774
cost. In the event of approval thereof by the controlling board, 776
the superintendent of public instruction COMMISSION shall certify 777
such conditional approval to the school district board. 778
NO SCHOOL DISTRICT GIVEN CONDITIONAL APPROVAL FOR A PROJECT 781
UNDER THIS SECTION, AND WHICH IS RANKED IN THE FIRST THROUGH 782
TENTH PERCENTILES, SHALL BE REQUIRED TO PAY ANY PORTION OF THE 783
BASIC PROJECT COST.
From and after the date of such certification, no bonds or 785
notes shall be issued by a school district board without the 786
approval of the state board COMMISSION for the purpose of 787
acquiring classroom facilities so long as the state board's 789
19
COMMISSION'S conditional approval of such school district's 791
project remains in effect.
NO SCHOOL DISTRICT THAT HAS PREVIOUSLY RECEIVED FUNDING 793
UNDER ANY VERSION OF SECTIONS 3318.01 TO 3318.20 OF THE REVISED 795
CODE SHALL HAVE A PROJECT CONDITIONALLY APPROVED PURSUANT TO THIS 796
SECTION FOR A PERIOD OF TEN YEARS AFTER THE DATE UPON WHICH THE 797
ELECTORS OF SUCH DISTRICT APPROVED A LEVY PURSUANT TO ANY VERSION 798
OF SECTION 3318.06 OF THE REVISED CODE. 799
Sec. 3318.041. A SCHOOL DISTRICT RANKED IN THE FIRST 801
THROUGH FIFTH PERCENTILES MAY ADOPT AND CERTIFY TO THE OHIO 802
SCHOOL FACILITIES COMMISSION A RESOLUTION SPECIFYING A PROPOSED 803
PROJECT THAT MEETS THE REQUIREMENTS OF THIS CHAPTER AND THE NEEDS 804
OF THE DISTRICT, AS CONFIRMED THROUGH AN ON-SITE VISIT PURSUANT 805
TO SECTION 3318.02 OF THE REVISED CODE. THE COMMISSION SHALL 806
CONSIDER SUCH PROJECTS FOR CONDITIONAL APPROVAL PURSUANT TO
SECTION 3318.03 AND SHALL ENCUMBER FUNDS PURSUANT TO SECTION 807
3318.04 OF THE REVISED CODE IN THE ORDER IN WHICH SUCH 808
RESOLUTIONS ARE RECEIVED.
Sec. 3318.05. The conditional approval of the state board 817
of education OHIO SCHOOL FACILITIES COMMISSION FOR A PROJECT OF A 819
SCHOOL DISTRICT RANKED IN THE FIRST THROUGH TENTH PERCENTILES
SHALL LAPSE AND THE AMOUNT RESERVED AND ENCUMBERED FOR SUCH 820
PROJECT SHALL BE RELEASED UNLESS THE SCHOOL DISTRICT BOARD 821
ACCEPTS SUCH CONDITIONAL APPROVAL WITHIN ONE HUNDRED TWENTY DAYS 822
OF THE DATE OF CERTIFICATION OF THE CONDITIONAL APPROVAL TO THE 823
SCHOOL DISTRICT BOARD AND THE ELECTORS OF THE SCHOOL DISTRICT
VOTE FAVORABLY ON THE PROPOSITION DESCRIBED IN DIVISION (B) OF 824
THIS SECTION WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. 825
THE CONDITIONAL APPROVAL OF THE OHIO SCHOOL FACILITIES COMMISSION 826
for a project OF A SCHOOL DISTRICT RANKED IN THE ELEVENTH THROUGH 827
ONE HUNDREDTH PERCENTILES shall lapse and the amount reserved and 829
encumbered for such project shall be released unless, THE SCHOOL 830
DISTRICT BOARD ACCEPTS SUCH CONDITIONAL APPROVAL within one
hundred twenty days following the date of certification of the 832
20
conditional approval to the school district board or such other 833
time as may be fixed by the state board for good cause shown, the 834
school district board accepts such conditional approval and the 835
electors of the school district vote favorably on both of the 836
propositions described in divisions (A) and (B) of this section, 837
which WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. THE 838
propositions DESCRIBED IN DIVISIONS (A) AND (B) OF THIS SECTION 839
shall be combined in a single proposal. The state board of 840
education may reconsider and reprioritize a school district's 841
project if IF the district board or the district's electors fail 842
to meet such requirements AND THE AMOUNT RESERVED AND ENCUMBERED 843
FOR THE DISTRICT'S PROJECT IS RELEASED, THE DISTRICT SHALL BE 844
GIVEN FIRST PRIORITY FOR PROJECT FUNDING AS SUCH FUNDS BECOME 845
AVAILABLE.
(A) On the question of issuing bonds of the school 847
district board, for the school district's portion of the basic 848
project cost, in either whatever amount may be necessary to raise 849
the net bonded indebtedness of the school district to within five 850
thousand dollars of the required level of indebtedness calculated 851
for the year preceding the year in which the resolution declaring 852
the necessity of the election is adopted or an amount equal to 853
the required percentage of the basic project costs, whichever is 854
greater; provided, that such question need not be submitted if at 855
the time of the passage of such resolution the net bonded 856
indebtedness of the school district (1) aggregates ninety-five 857
per cent or more of the required level of indebtedness, or (2) is 858
within twenty thousand dollars of such level and the required 859
percentage of the basic project costs is not greater than either 860
the amount necessary to raise the net bonded indebtedness of the 861
school district to within five thousand dollars of the required 862
level of indebtedness or twenty thousand dollars; and 863
(B) On the question of levying a tax the proceeds of which 866
shall be used to pay the cost of maintaining the classroom 867
facilities included in the project, except that in any year the
21
district's adjusted valuation per pupil is greater than the 868
state-wide median adjusted valuation per pupil one-half of the 869
proceeds of the tax shall be used for such maintenance and 870
one-half of such proceeds shall be used to pay the cost of the 871
purchase of the classroom facilities from the state under the 872
provisions of sections 3318.01 to 3318.20 of the Revised Code. 873
Such tax shall be at the rate of one-half mill for each dollar of 874
valuation except that in those years in which the state 875
superintendent of public instruction OHIO SCHOOL FACILITIES 876
COMMISSION, pursuant to section 3318.051 of the Revised Code, 878
requires the district to increase the tax rate to an amount 879
greater than one-half mill, but not in excess of four mills, 880
until the purchase price is paid but in no case longer than 881
twenty-three years. Proceeds of the tax to be used for
maintenance of the classroom facilities shall be deposited into a 882
separate fund established by the school district for such 883
purpose.
Sec. 3318.051. (A) The purpose of this section is to 892
ensure that no school district that constructs, acquires, 893
reconstructs, or makes additions to classroom facilities pursuant 894
to sections 3318.01 to 3318.20 of the Revised Code increases its 895
tax rate for debt service solely to avoid making payments as 896
described in division (B) of section 3318.05 of the Revised Code 897
in excess of one-half mill.
In furtherance of this public policy, the state 899
superintendent of public instruction OHIO SCHOOL FACILITIES 900
COMMISSION annually shall review the tax budget of each such 901
school district and such additional information as the state 902
superintendent COMMISSION may require from the school district 903
and make a determination as to whether the district's tax rate 905
for debt service, excluding the amount of debt service paid for 906
such classroom facilities under sections 3318.01 to 3318.20 of 908
the Revised Code, is reasonably necessary for the retirement of 909
the school district's bonded indebtedness. If the state 910
22
superintendent COMMISSION determines that the tax rate for debt 912
service excluding the amount paid for the construction, 913
acquisition, reconstruction, or additions to of classroom 914
facilities under such sections is not reasonably necessary for 915
the retirement of the district's bonded indebtedness, the state 916
superintendent COMMISSION may require the district to increase 917
its tax rate for the payments described under division (B) of 919
section 3318.05 of the Revised Code to an amount greater than
one-half mill, but not exceeding four mills. In determining the 920
tax rate necessary for the retirement of a school district's 921
bonded indebtedness, the state superintendent COMMISSION, in 922
accordance with the guidelines established pursuant to division 924
(B) of this section, may disregard that portion of the tax rate 925
to retire bonded indebtedness issued after the effective date of 926
that district's agreement to construct, acquire, reconstruct, or 928
make additions to classroom facilities under sections 3318.01 to 929
3318.20 of the Revised Code.
(B) The state superintendent COMMISSION shall establish 931
guidelines to conduct the review described in division (A) of 933
this section. In reviewing the tax budget of a school district 934
and determining the tax rate for the payments described under 935
division (B) of section 3318.05 of the Revised Code, the state 936
superintendent COMMISSION shall exempt any debt service payments 938
required for constructing, acquiring, reconstructing, or adding 939
to classroom facilities under sections 3318.01 to 3318.20 of the 940
Revised Code and may exempt debt service payments required for 941
any other purpose.
(C) For the period that payments under division (B) of 943
section 3318.05 of the Revised Code are required, each school 944
district shall annually submit a copy of its tax budget to the 945
state superintendent COMMISSION within five working days of its 947
adoption pursuant to section 5705.28 of the Revised Code. The 948
state superintendent COMMISSION shall make a determination in 950
accordance with this section within thirty days of the date upon 951
23
which a school district submits its tax budget.
(D) If a county budget commission considers it necessary 953
to modify any tax rate for debt service contained in the tax 954
budget of a school district constructing, acquiring, 955
reconstructing, or adding to classroom facilities from the state 957
pursuant to sections 3318.01 to 3318.20 of the Revised Code due 958
to a change in the district's tax duplicates or the issuance by 959
the district of new bonded indebtedness, the state superintendent 960
OHIO SCHOOL FACILITIES COMMISSION may review these changes in 961
accordance with division (B) of this section for the purpose of 962
reducing the district's tax rate for the payments described in 963
division (B) of section 3318.05 of the Revised Code, provided 964
such rate shall not be less than one-half mill. 965
Sec. 3318.06. After receipt of the conditional approval of 974
the state board of education OHIO SCHOOL FACILITIES COMMISSION, 976
the school district board by a majority of all of its members 977
shall, if it desires to proceed with the project, declare all of 978
the following by resolution:
(A) That IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH 980
ONE HUNDREDTH PERCENTILES, THAT with a net bonded indebtedness of 981
within five thousand dollars of the required level of 982
indebtedness or by issuing bonds in an amount equal to the 983
required percentage of the project costs, the district is unable 984
to provide adequate classroom facilities without assistance from 985
the state;
(B) That to qualify for such state assistance it is 987
necessary to levy a tax outside the ten-mill limitation the 988
proceeds of which shall be used to pay the cost of maintaining 990
the classroom facilities included in the project, except that in
any year the district's adjusted valuation per pupil is greater 991
than the state-wide median adjusted valuation per pupil one-half 992
of the proceeds of the tax shall be used for such maintenance and 993
one-half of such proceeds shall be used to pay the cost of the 994
purchase of the classroom facilities from the state; 995
24
(C) That the question of such tax levy shall be submitted 997
to the electors of the school district at the next general or 998
primary election, if there be a general or primary election not 999
less than seventy-five and not more than ninety-five days after 1,000
the day of the adoption of such resolution or, if not, at a 1,001
special election to be held at a time specified in the resolution 1,002
which shall be not less than seventy-five days after the day of 1,003
the adoption of the resolution and which shall be in accordance 1,004
with the requirements of section 3501.01 of the Revised Code. 1,005
Such resolution shall also state, if such be the case, that 1,007
the question of issuing bonds of the board shall be combined in a 1,008
single proposal with the question of such tax levy. More than 1,009
one election under this section may be held in any one calendar 1,010
year. Such resolution shall specify both of the following: 1,011
(1) That the rate which it is necessary to levy shall be 1,013
at the rate of one-half mill for each one dollar of valuation 1,014
except that in those years in which the state superintendent of 1,015
public instruction COMMISSION, pursuant to section 3318.051 of 1,017
the Revised Code, requires the district to increase the tax rate
to an amount greater than one-half mill, but not in excess of 1,018
four mills, and that such tax shall be levied until the purchase 1,019
price is paid but in no case longer than twenty-three years; 1,020
(2) That the proceeds of the tax shall be used to pay the 1,022
cost of maintaining the classroom facilities included in the 1,023
project, except in any year the district's adjusted valuation per 1,024
pupil is greater than the statewide median adjusted valuation per 1,025
pupil one-half of the proceeds of the tax shall be used for such 1,026
maintenance and one-half of the proceeds of the tax shall be used 1,027
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. 1,028
A copy of such resolution shall after its passage and not 1,030
less than seventy-five days prior to the date set therein for the 1,031
election be certified to the county board of elections. 1,032
If the question of issuing bonds of the board is to be 1,034
25
combined with the question of levying the tax, the resolution of 1,035
the school district board, in addition to meeting other 1,036
applicable requirements of section 133.18 of the Revised Code, 1,037
shall state that the amount of bonds to be issued will be either 1,038
whatever amount may be necessary to raise the net bonded 1,039
indebtedness of the school district to within five thousand 1,040
dollars of the required level of indebtedness calculated for the 1,041
year preceding the year in which such resolution is adopted or an 1,042
amount equal to the required percentage of the basic project 1,043
costs, whichever is greater and state that the maximum maturity 1,044
of the bonds which, notwithstanding section 133.20 of the Revised 1,045
Code, may be any number of years not exceeding twenty-three as 1,046
determined by the board. In estimating the amount of bonds to be 1,047
issued, the board shall take into consideration the amount of 1,048
moneys then in the bond retirement fund and the amount of moneys 1,049
to be collected for and disbursed from the bond retirement fund 1,050
during the remainder of the year in which the resolution of 1,051
necessity is adopted.
Notice of the election shall include the fact that the tax 1,053
levy shall be at the rate of one-half mill for each one dollar of 1,054
valuation except that in those years in which the superintendent 1,055
COMMISSION, pursuant to section 3318.051 of the Revised Code, 1,057
requires the district to increase the tax rate to an amount 1,058
greater than one-half mill, but not in excess of four mills, that 1,060
the levy shall be made until the purchase price is paid but in no 1,061
case longer than twenty-three years, and that the proceeds of the 1,062
tax shall be used to pay the cost of maintaining the classroom 1,063
facilities included in the project, except in any year the 1,064
district's adjusted valuation per pupil is greater than the
statewide median adjusted valuation per pupil one-half of the 1,065
proceeds of the tax shall be used for such maintenance and 1,066
one-half of the proceeds of the tax shall be used to pay the cost 1,067
of the purchase of the classroom facilities from the state under 1,068
sections 3318.01 to 3318.20 of the Revised Code.
26
The form of the ballot to be used at such election shall 1,070
be: 1,071
"A majority affirmative vote is necessary for passage. 1,073
Shall bonds be issued by the Board of Education of the 1,075
............ (here insert name of school district) for the 1,076
purpose of ............ (here insert purpose of bond issue) in 1,077
either an amount sufficient to raise the net indebtedness of the 1,078
school district to within five thousand dollars of ............ 1,079
(here insert five, six, or seven per cent depending on the 1,080
district's required level of indebtedness) of the total value of 1,081
all property in the school district as listed and assessed for 1,082
taxation on the tax duplicate for the year ............ (here 1,083
insert the year preceding the year in which the resolution 1,084
declaring the necessity of the election was adopted) or an amount 1,086
equal to ............ (here insert the required percentage of the 1,087
basic project costs), whichever is greater, and a levy of taxes 1,088
be made outside of the ten-mill limitation for a maximum period 1,089
of ............ (here insert longest maturity) years to pay the 1,090
principal and interest of such bonds, the amount of such bonds 1,091
being estimated to be ............ (here insert estimated amount 1,092
of bond issue) for which the levy of taxes is estimated by the 1,093
county auditor to average ............ (here insert number of 1,094
mills) mills for each one dollar of valuation, which amounts to 1,095
............ (here insert rate expressed in dollars and cents) 1,096
for each one hundred dollars of valuation?" 1,097
and 1,099
"Shall an additional levy of taxes be made for the benefit 1,101
of the ............ (name of school district), the proceeds of 1,102
which shall be used to pay the cost of maintaining the classroom 1,104
facilities included in the project, except that in any year the 1,105
district's adjusted valuation per pupil is greater than the
state-wide median adjusted valuation per pupil one-half of the 1,106
proceeds of the tax shall be used for such maintenance and 1,107
one-half of such proceeds shall be used to pay the cost of the 1,108
27
purchase of classroom facilities from the state, at the rate of 1,109
one-half mill for each one dollar of valuation except that in 1,110
those years in which the state superintendent of public 1,111
instruction OHIO SCHOOL FACILITIES COMMISSION, pursuant to 1,112
section 3318.051 of the Revised Code, requires the district to 1,113
increase the tax rate to an amount greater than one-half mill, 1,114
but not in excess of four mills, until the purchase price is paid 1,115
but in no case longer than twenty-three years? 1,116
_______________________________________________ 1,118
FOR THE BOND ISSUE AND TAX LEVY 1,119
_______________________________________________ 1,120
AGAINST THE BOND ISSUE AND TAX LEVY 1,121
_______________________________________________ " 1,122
Where it is not necessary to include the question of 1,125
issuing bonds of the school district board with the question of 1,126
levying the tax, the first paragraph of the foregoing ballot form 1,127
shall be omitted and the question to be voted on shall be "For 1,128
the Tax Levy" and "Against the Tax Levy." 1,129
(D) If it is necessary for the school district to acquire 1,131
a site for the classroom facilities to be acquired pursuant to 1,132
sections 3318.01 to 3318.20 of the Revised Code, the district 1,133
board may propose either to issue bonds of the board or to levy a 1,134
tax to pay for the acquisition of such site, and may combine the 1,135
question of doing so with the questions specified in division (C)
of this section. Bonds issued under this division for the 1,136
purpose of acquiring a site are a general obligation of the 1,137
school district and are Chapter 133. securities. 1,138
The form of that portion of the ballot to include the 1,140
question of either issuing bonds or levying a tax for site 1,141
acquisition purposes shall be one of the following: 1,142
(1) "Shall bonds be issued by the board of education of 1,144
the ......... (name of the school district) for the purpose of 1,145
.......... (purpose of the bond issue, which shall be for the 1,146
purpose of acquiring a site for classroom facilities) in the 1,147
28
principal amount of ........ (principal amount of the bond
issue), to be repaid annually over a maximum period of ......... 1,148
(maximum number of years over which the principal of the bonds 1,149
may be paid) years, and an annual levy of property taxes be made 1,150
outside the ten-mill limitation, estimated by the county auditor 1,151
to average over the repayment period of the bond issue ....... 1,152
(number of mills) mills for each one dollar of tax valuation, 1,153
which amount to ....... (rate expressed in dollars and cents) for
each one hundred dollars of valuation?" 1,154
(2) "Shall an additional levy of taxes be made for the 1,156
benefit of the ......... (name of the school district) ......... 1,157
for the purpose ......... (purpose of the levy, which shall be 1,158
for the purpose of acquiring a site for classroom facilities) in 1,159
the sum of ......... (annual amount the levy is to produce) and a 1,160
levy of taxes to be made outside of the ten-mill limitation 1,161
estimated by the county auditor to average ........ (number of 1,162
mills) mills for each one hundred dollars of valuation, for a
period of ......... (number of years the millage is to be 1,163
imposed) years?"
Where it is necessary to combine the question of issuing 1,165
bonds of the school district and levying a tax as described in 1,166
division (C) of this section with the question of issuing bonds 1,167
of the school district for acquisition of a site, the question 1,168
specified in division (C) of this section to be voted on shall be 1,169
"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 1,170
include the question of issuing bonds as described in division 1,171
(C) of this section, the question specified in that division to 1,172
be voted on shall be "For the Bond Issue and the Tax Levy" and 1,173
"Against the Bond Issue and the Tax Levy."
Where it is necessary to combine the question of issuing 1,175
bonds of the school district and levying a tax as described in 1,176
division (C) of this section with the question of levying a tax 1,177
for the acquisition of a site, the question specified in division 1,178
29
(C) of this section to be voted on shall be "For the Bond Issue 1,179
and the Tax Levies" and "Against the Bond Issue and the Tax
Levies." In the event it is not necessary to include the 1,180
question of issuing bonds as described in division (C) of this 1,181
section, the question specified in that division to be voted on 1,182
shall be "For the Tax Levies" and "Against the Tax Levies." 1,183
If a majority of those voting upon a proposition hereunder 1,185
which includes the question of issuing bonds vote in favor 1,186
thereof, and if the agreement provided for by section 3318.08 of 1,187
the Revised Code has been entered into, the school district board 1,188
may proceed under Chapter 133. of the Revised Code, with the 1,189
issuance of bonds or bond anticipation notes in accordance with 1,190
the terms of the agreement. 1,191
Sec. 3318.07. The board of elections shall certify the 1,200
result of the election to the tax commissioner, to the auditor of 1,201
the county or counties in which the school district is located, 1,202
to the treasurer of the school district board, and to the state 1,203
board of education OHIO SCHOOL FACILITIES COMMISSION. The 1,204
necessary tax levy for debt service on the bonds shall be 1,205
included in the annual tax budget that is certified to the county 1,206
budget commission.
Sec. 3318.08. If the requisite favorable vote on the 1,215
election is obtained, the state board of education OHIO SCHOOL 1,217
FACILITIES COMMISSION, upon certification of the results of the 1,218
election to it, shall enter into a written agreement with the 1,219
school district board for the construction and sale of the 1,220
project, which agreement shall include, but need not be limited 1,221
to, the following provisions:
(A) The IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH 1,223
ONE HUNDREDTH PERCENTILES, THE sale and issuance of bonds or 1,224
notes in anticipation thereof, as soon as practicable after the 1,225
execution of the agreement, in either an amount which will raise 1,226
the net bonded indebtedness of the school district, as of the 1,227
date of the resolution authorizing the issuance of such bonds or 1,228
30
notes, to within five thousand dollars of the required level of 1,229
indebtedness calculated for the year preceding the year in which 1,230
the resolution declaring the necessity of the election was 1,232
adopted or an amount equal to the required percentage of the 1,233
basic project costs, whichever is greater; provided, that if at 1,234
that time the county treasurer of each county in which the school 1,235
district is located has not commenced the collection of taxes on 1,236
the general duplicate of real and public utility property for 1,237
such year, the school district board shall authorize the issuance 1,238
of a first installment of bond anticipation notes in an amount 1,239
specified by the agreement, which amount shall not exceed an 1,240
amount necessary to raise the net bonded indebtedness of the 1,241
school district as to the date of such authorizing resolution to 1,242
within five thousand dollars of the required level of 1,243
indebtedness for the preceding year. In the event that a first 1,244
installment of bond anticipation notes is issued, the school 1,245
district board shall, as soon as practicable after the county 1,246
treasurer of each county in which the school district is located 1,247
has commenced the collection of taxes on the general duplicate of 1,248
real and public utility property for the year in which the 1,249
resolution declaring the necessity of the election was adopted, 1,250
authorize the issuance of a second and final installment of bond 1,251
anticipation notes or a first and final issue of bonds. The 1,252
combined value of the first and second installment of bond 1,253
anticipation notes or the value of the first and final issue of 1,254
bonds shall be equal to either an amount which will raise the net 1,255
indebtedness of the school district as of the date of such 1,256
authorizing resolution to within five thousand dollars of the 1,257
required level of indebtedness, or an amount equal to the 1,258
required percentage of the project costs, whichever is greater. 1,259
The proceeds of any such bonds shall be used first to retire any 1,260
bond anticipation notes. Otherwise, the proceeds of such bonds 1,261
and of any bond anticipation notes, except the premium and 1,262
accrued interest thereon, shall be deposited in the school
31
district's project construction fund. In determining the amount 1,263
of net indebtedness for the purpose of fixing the amount of an 1,264
issue of either bonds or bond anticipation notes, gross 1,265
indebtedness shall be reduced by moneys in the bond retirement 1,266
fund only to the extent of the moneys therein on the first day of 1,267
the year preceding the year in which the resolution authorizing 1,268
such bonds or notes is adopted. Should there be a decrease in 1,270
the tax valuation of the school district so that the amount of 1,271
indebtedness which can be incurred on the tax duplicates for the 1,272
year in which the resolution declaring the necessity of the 1,273
election was adopted is less than the amount of the first 1,274
installment of bond anticipation notes, there shall be paid from 1,275
the school district's project construction account to the school 1,276
district's bond retirement fund to be applied against such notes 1,277
an amount sufficient to cause the net indebtedness of the school 1,278
district, as of the first day of the year following the year in 1,279
which the resolution declaring the necessity of the election was 1,280
adopted, to be within five thousand dollars of the required level 1,281
of indebtedness for the year in which that resolution was 1,282
adopted. The maximum amount of indebtedness to be incurred by 1,283
any school district board as its share of the cost of the project 1,284
is either an amount which will cause its net indebtedness, as of 1,285
the first day of the year following the year in which the 1,286
resolution declaring the necessity of the bond issue was adopted, 1,287
to be within five thousand dollars of the required level of 1,288
indebtedness calculated for the year preceding the year in which 1,289
that resolution was adopted or an amount equal to the required 1,291
percentage of the basic project costs, whichever is greater. All 1,292
bonds and bond anticipation notes shall be issued in accordance 1,293
with Chapter 133. of the Revised Code, and notes may be renewed 1,294
as provided in section 133.22 of the Revised Code. 1,295
(B) The transfer of such funds of the school district 1,297
board available for the project, together with the proceeds of 1,298
the sale of the bonds or notes, except premium, accrued interest, 1,299
32
and interest included in the amount of the issue, to the school 1,300
district's project construction account in the school district's 1,301
depository; 1,302
(C) The levy of the tax authorized at the election for the 1,304
payment of maintenance costs or the cost of purchasing the 1,306
classroom facilities;
(D) Ownership of the project during the period of 1,308
construction, which shall be divided between the state COMMISSION 1,310
and the school district board in proportion to their respective 1,311
contributions to the school district's project construction 1,312
account; 1,313
(E) The transfer of the state's interest in the project to 1,315
the school district upon completion of the project; 1,316
(F) The insurance of the project by the school district 1,318
from the time there is an insurable interest therein and so long 1,319
as any part of the purchase price remains unpaid, in such amounts 1,320
and against such risks as the state board COMMISSION shall 1,321
require; provided, that the cost of any required insurance until 1,323
the project is completed shall be a part of the basic project 1,324
cost;
(G) The certification by the director of budget and 1,326
management that funds are available and have been set aside to 1,327
meet the state's share of the basic project cost as approved by 1,329
the controlling board pursuant to section 3318.04 of the Revised 1,330
Code, such certification to consider any necessary revision of 1,331
the state's share by the superintendent of public instruction 1,332
required by changes in the school district's ability to provide 1,333
more or less local funds than was estimated at the time of the 1,334
conditional approval under section 3318.04 of the Revised Code; 1,335
(H) Authorization of the school district board to 1,337
advertise for and receive construction bids for the project, for 1,338
and on behalf of the state board COMMISSION, and to award 1,339
contracts in the name of the state subject to approval by the 1,341
superintendent of public instruction COMMISSION; 1,342
33
(I) Provisions for the disbursement of moneys from the 1,344
school district's project account upon issuance by the 1,345
superintendent of public instruction COMMISSION of vouchers for 1,346
work done to be certified to the superintendent COMMISSION by the 1,348
treasurer of the school district board; 1,350
(J) Disposal of any balance left in the school district's 1,352
project construction account upon completion of the project; 1,353
(K) Prohibition against alienation of any interest in the 1,355
project by the school district board or its successor in interest 1,356
without the consent of the state board COMMISSION so long as any 1,357
part of the purchase price of the project remains unpaid, but in 1,359
no case longer than twenty-three years; 1,360
(L) Limitations upon use of the project or any part of it 1,362
so long as any part of the purchase price of the project remains 1,363
unpaid, but in no case longer than twenty-three years; 1,364
(M) Suspension of the power to issue bonds or notes by the 1,366
school district board for permanent improvements without the 1,367
prior consent of the state board COMMISSION for so long as any 1,368
part of the purchase price of the project remains unpaid, but in 1,370
no case longer than twenty-three years; 1,371
(N) Provision for vesting absolute interest in the project 1,373
in the school district board when the purchase price has been 1,374
paid or at the expiration of the period of twenty-three years; 1,375
(O) Provision for deposit of an executed copy of the 1,377
agreement in the office of the state board COMMISSION and the 1,378
office of the county recorder of the county or counties in which 1,380
the project is situated; 1,381
(P) Provision for termination of the contract and release 1,383
of the funds encumbered at the time of the conditional approval, 1,384
if the proceeds of the sale of the bonds of the school district 1,385
board are not paid into the school district's project 1,386
construction account and if bids for the construction of the 1,387
project have not been taken within such period after the 1,388
execution of the agreement as may be fixed by the state board 1,389
34
COMMISSION; 1,390
(Q) PROVISION FOR THE SCHOOL DISTRICT TO MAINTAIN THE 1,392
PROJECT IN ACCORDANCE WITH A PLAN APPROVED BY THE COMMISSION; 1,393
(R) PROVISION THAT ALL STATE FUNDS RESERVED AND ENCUMBERED 1,396
TO PAY THE STATE SHARE OF THE COST OF THE PROJECT PURSUANT TO 1,397
SECTION 3318.03 OF THE REVISED CODE BE SPENT ON THE CONSTRUCTION 1,399
OR ACQUISITION OF THE PROJECT PRIOR TO THE EXPENDITURE OF ANY 1,400
FUNDS PROVIDED BY THE SCHOOL DISTRICT TO PAY FOR ITS SHARE OF THE 1,401
PROJECT COST.
Sec. 3318.081. If the board of education of a school 1,410
district authorized to impose a tax pursuant to section 3318.06 1,411
of the Revised Code determines that taxable value of property 1,412
subject to the tax has increased to the extent it will not be 1,413
necessary to impose such tax for twenty-three years in order to 1,414
pay the purchase price, it may request the county auditor to 1,415
determine the amount of the purchase price remaining to be paid 1,416
and the estimated rate of taxation required each year to repay 1,417
such remainder in equal installments over the maximum number of 1,418
remaining years the tax may be in effect. The auditor shall make 1,419
such determination upon request and certify the results thereof 1,420
to the board of education. 1,421
Upon receipt of the auditor's determination, the board of 1,423
education may request the state board of education OHIO SCHOOL 1,425
FACILITIES COMMISSION to enter into a supplemental agreement 1,426
under which the district may repay the remainder of the purchase 1,427
price in annual amounts equal to the quotient obtained by 1,428
dividing the amount remaining to be paid by the maximum number of 1,429
remaining years the tax may be in effect. If such an agreement is 1,430
entered into, the state board COMMISSION shall certify a copy 1,432
thereof to the county auditor and the tax authorized by section 1,433
3318.06 of the Revised Code thereafter shall be levied at the 1,434
rate required to make the annual payments required by the 1,435
supplemental agreement rather than the rate required by such 1,436
section.
35
Sec. 3318.082. THE BOARD OF EDUCATION OF ANY SCHOOL 1,438
DISTRICT IMPOSING A TAX FOR THE PURPOSE OF PAYING THE COST OF THE 1,439
PURCHASE OF CLASSROOM FACILITIES FROM THE STATE PURSUANT TO 1,440
SECTION 3318.06 OF THE REVISED CODE PRIOR TO THE EFFECTIVE DATE
OF THE AMENDMENTS TO THAT SECTION BY AMENDED SUBSTITUTE HOUSE 1,442
BILL NO. 748 OF THE 121st GENERAL ASSEMBLY, MAY ENTER INTO A 1,443
SUPPLEMENTAL AGREEMENT WITH THE OHIO SCHOOL FACILITIES COMMISSION 1,444
UNDER WHICH THE PROCEEDS OF SUCH TAX SHALL BE DISTRIBUTED IN 1,446
ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3318.06 OF THE
REVISED CODE, AS AMENDED BY AMENDED SUBSTITUTE HOUSE BILL NO. 748 1,448
OF THE 121st GENERAL ASSEMBLY. 1,449
Sec. 3318.091. Promptly after the written agreement 1,458
between the school district board and the state board of 1,459
education OHIO SCHOOL FACILITIES COMMISSION has been entered 1,460
into, the school district board shall proceed with the issuance 1,462
of its bonds or notes in anticipation thereof pursuant to the 1,463
provision of such agreement required by division (A) of section 1,464
3318.08 of the Revised Code and the deposit of the proceeds 1,465
thereof in the school district's project construction account
pursuant to the provision of such agreement required by division 1,466
(B) of section 3318.08 of the Revised Code, and the school 1,467
district board, with the approval of the superintendent of public 1,468
instruction COMMISSION shall employ a qualified professional 1,471
person or firm to prepare preliminary plans, working drawings,
specifications, estimates of cost, and such data as the school 1,472
district board and the superintendent of public instruction 1,473
COMMISSION deem necessary for the project. When the preliminary 1,475
plans and preliminary estimates of cost have been prepared, and 1,476
approved by the school district board, they shall be submitted to 1,477
the superintendent of public instruction COMMISSION for approval, 1,478
modification, or rejection. The superintendent COMMISSION shall 1,479
ensure that the plans and materials proposed for use in the 1,481
project comply with specifications for plans and materials that 1,482
shall be established by the state board of education COMMISSION. 1,483
36
When such preliminary plans and preliminary estimates of cost and 1,485
any modifications thereof have been approved by the 1,486
superintendent of public instruction COMMISSION and the school 1,488
district board, the school district board shall cause such 1,490
qualified professional person or firm to prepare the working
drawings, specifications, and estimates of cost. 1,491
Sec. 3318.10. When such working drawings, specifications, 1,501
and estimates of cost have been approved by the school district 1,502
board and the superintendent of public instruction OHIO SCHOOL 1,504
FACILITIES COMMISSION, the treasurer of the school district board 1,505
shall advertise for construction bids for the project once a week 1,506
for four consecutive weeks in a newspaper published in and of 1,507
general circulation in the county in which the project is 1,508
located. Such notices shall state that plans and specifications 1,509
for the project are on file in the office of the state board of 1,510
education COMMISSION and such other place as may be designated in 1,512
such notice, and the time and place when and where bids therefor 1,513
will be received.
The form of proposal to be submitted by bidder BIDDERS 1,515
shall be supplied by the state board COMMISSION. Bidders may be 1,516
permitted to bid upon all the branches of work and materials to 1,518
be furnished and supplied, upon any branch thereof, or upon all 1,519
or any thereof.
A proposal shall be invalid and not considered unless it 1,521
meets the requirements of section 153.54 of the Revised Code. 1,522
When the construction bids for all branches of work and 1,524
materials have been tabulated, the superintendent of public 1,525
instruction COMMISSION shall cause to be prepared a revised 1,526
estimate of the basic project cost based upon the lowest 1,528
responsible bids received. If such revised estimate exceeds the 1,529
estimated basic project cost as approved by the controlling board 1,530
pursuant to section 3318.04 of the Revised Code as adjusted for 1,531
inflation from the time of such approval, no contracts may be 1,532
entered into pursuant to this section unless such revised 1,533
37
estimate is approved by the state board COMMISSION and by the 1,534
controlling board referred to in section 3318.04 of the Revised 1,536
Code. The adjustment for inflation shall be calculated and 1,537
agreed to by the superintendent of public instruction, the 1,538
director of the legislative budget office of the legislative 1,539
service commission, and the director of the office of budget and 1,540
management. When such revised estimate has been prepared, and 1,542
after such approvals are given, if necessary, and if the school 1,543
district board has caused to be transferred to the project 1,544
construction account the proceeds from the sale of the first or 1,545
first and final installment of its bonds or bond anticipation 1,546
notes pursuant to the provision of written agreement required by 1,547
division (B) of section 3318.08 of the Revised Code, and when the 1,548
director of budget and management has certified that there is a 1,549
balance in the appropriation, not otherwise obligated to pay 1,550
precedent obligations, pursuant to which the state's share of 1,551
such revised estimate is required to be paid, the contract for
all branches of work and materials to be furnished and supplied, 1,552
or for any branch thereof as determined by the school district 1,553
board, shall be awarded by the school district board to the 1,554
lowest responsible bidder subject to the approval of the 1,555
superintendent of public instruction COMMISSION. Such award 1,556
shall be made within thirty days after the date on which the bids 1,558
are opened, and the successful bidder shall enter into a contract 1,559
within ten days after the successful bidder is notified of the 1,560
award of the contract. 1,561
Subject to the approval of the superintendent of public 1,563
instruction COMMISSION, the school district board may reject all 1,564
bids and readvertise. Any contract made under this section shall 1,566
be made in the name of the state and executed on its behalf by 1,567
the president and treasurer of the school district board. 1,568
The provisions of sections 153.50 to 153.99 of the Revised 1,570
Code, which are applicable to construction contracts of boards of 1,571
education and which permit bids to be made for two or more trades 1,572
38
or kinds of work, shall apply to construction contracts for the 1,573
project to the exclusion of sections 153.01 to 153.20 of the 1,574
Revised Code applicable to state construction contracts. 1,575
The remedies afforded to any subcontractor, materialman 1,577
MATERIALS SUPPLIER, laborer, mechanic, or persons furnishing 1,579
material or machinery for the project under sections 1311.26 to 1,580
1311.32 of the Revised Code, shall apply to contracts entered 1,581
into under this section and the itemized statement required by 1,582
section 1311.26 of the Revised Code shall be filed with the 1,583
school district board.
Sec. 3318.111. The school district board shall have 1,592
authority, with the approval of the superintendent of public 1,593
instruction OHIO SCHOOL FACILITIES COMMISSION and notwithstanding 1,595
the provisions of sections 135.01 to 135.21, inclusive, of the 1,596
Revised Code, to invest funds on deposit in the project 1,598
construction account in bonds, notes, certificates of 1,599
indebtedness, treasury bills, or other securities issued by and 1,600
constituting direct obligations of the United States, or the
state of Ohio maturing, or redeemable at the option of the 1,601
holder, not later than the dates on which such funds will be 1,602
required to be disbursed from such account.
Sec. 3318.12. The superintendent of public instruction 1,612
OHIO SCHOOL FACILITIES COMMISSION shall cause to be transferred 1,613
to the school district's project construction account the 1,614
necessary amounts from amounts appropriated by the general 1,615
assembly and set aside for such purpose, from time to time as may 1,616
be necessary to pay obligations chargeable to such account when 1,617
due. The treasurer of the school district board shall disburse 1,618
funds from the school district's project construction account 1,619
only upon the approval of the superintendent of public 1,620
instruction COMMISSION. The superintendent of public instruction 1,622
COMMISSION or his THE COMMISSION'S designated representative 1,624
shall issue vouchers against such account, in such amounts, and
at such times as required by the contracts for construction of 1,625
39
the project.
Any surplus remaining in the school district's project 1,627
construction account after the project has been completed shall 1,628
be transferred to the state board of education COMMISSION for 1,629
expenditure pursuant to sections 3318.01 to 3318.20 of the 1,631
Revised Code; provided, that if the final cost of the project is 1,632
less than the amount of moneys paid into the school district's 1,633
project construction account by the school district board, the 1,634
amount by which the school district's contribution exceeds the 1,635
actual cost shall be returned to the school district board. 1,636
Sec. 3318.13. Notwithstanding any provision of sections 1,645
5705.27 to 5705.50 of the Revised Code, the tax to be levied on 1,646
all taxable property within a school district for the purpose of 1,647
paying the cost of maintaining the classroom facilities included 1,648
in the project or for paying the purchase price of the project to 1,649
the state under the agreement provided in section 3318.08 of the 1,650
Revised Code or the supplemental agreement provided in section 1,651
3318.081 of the Revised Code shall be included in the budget of 1,652
the school district for each year upon the certification to the 1,653
county budget commission or commissions of the county or counties 1,654
in which said school district is located, by the state board of 1,655
education OHIO SCHOOL FACILITIES COMMISSION of the balance due 1,657
the state under said agreement or supplemental agreement. Such 1,658
certification shall be made on or before the fifteenth day of 1,659
July in each year. Thereafter, the respective county budget 1,660
commissions shall treat such certification as an additional item 1,661
on the tax budget for the school district as to which such 1,662
certification has been made and shall provide for the levy 1,663
therefor in the manner provided in sections 5705.27 to 5705.50 of 1,664
the Revised Code for tax levies included directly in the budgets 1,665
of the subdivisions.
The levy of taxes shall be included in the next annual tax 1,667
budget that is certified to the county budget commission after 1,668
the execution of the agreement for the project. 1,669
40
Sec. 3318.14. Notwithstanding the provision of section 1,678
321.31 of the Revised Code, immediately after each settlement 1,679
with the county auditor, on presentation of the warrant of the 1,680
county auditor therefor, the county treasurer shall pay to the 1,681
school district the proceeds of the tax levy provided in section 1,682
3318.13 of the Revised Code to be used to pay the cost of
maintaining the classroom facilities included in the project and 1,684
pay to the state board OHIO SCHOOL FACILITIES COMMISSION any 1,686
proceeds of the tax levy provided in section 3318.13 of the
Revised Code to be applied to the unpaid purchase price of the 1,687
project.
Sec. 3318.15. There is hereby created the public school 1,696
building fund within the state treasury consisting of all moneys 1,697
received from the sale of classroom facilities pursuant to 1,698
sections 3318.01 to 3318.20 of the Revised Code, any moneys 1,699
transferred or appropriated to the fund by the general assembly, 1,700
and any grants, gifts, or contributions received by the state 1,701
board of education OHIO SCHOOL FACILITIES COMMISSION to be used 1,702
for the purposes of the fund. 1,703
Moneys transferred or appropriated to the fund by the 1,705
general assembly and moneys in the fund from grants, gifts, and 1,706
contributions shall be used to acquire classroom facilities for 1,707
sale to school districts pursuant to sections 3318.01 to 3318.20 1,708
of the Revised Code. The moneys in the fund received from the 1,709
sale of classroom facilities shall be held in a separate account 1,710
in the fund. Such moneys may be used partially to acquire 1,711
additional classroom facilities for sale to school districts 1,712
pursuant to sections 3318.01 to 3318.20 and partially to pay bond 1,713
service charges as defined in division (C) of section 3318.21 of 1,714
the Revised Code on obligations, the proceeds of which are 1,715
deposited into the school districts facilities fund created in 1,716
section 3318.23 of the Revised Code. 1,717
Sec. 3318.16. Title to interests in real property 1,726
purchased with moneys in the school district's project 1,727
41
construction account shall be taken in the name of the state of 1,728
Ohio. Upon completion of the project, the title to such interest 1,729
in real property shall be conveyed to the school district board
and the president and the secretary of the state board OHIO 1,730
SCHOOL FACILITIES COMMISSION shall execute and deliver deeds to 1,732
complete the transfer of such interests.
Upon completion of the project, the interest of the state 1,734
in the project shall be transferred to the school district board, 1,735
which interest is equal to that portion of the final cost of the 1,736
project represented by funds contributed by the state for the 1,737
project. The purchase price to be paid by the school district 1,738
board for the state's interest in the project shall be the total
amount of funds contributed by the state for the project. 1,739
Sec. 3318.17. A school district board may purchase 1,748
classroom facilities from the state from time to time under the 1,749
procedure set forth in sections 3318.01 to 3318.12 of the Revised 1,750
Code. The levy of taxes required by section 3318.14 of the 1,751
Revised Code shall be at the rate of one-half mill for each one 1,753
dollar of valuation except that in those years in which the state 1,754
superintendent of public instruction OHIO SCHOOL FACILITIES 1,755
COMMISSION, pursuant to section 3318.051 of the Revised Code, 1,756
requires the district to increase the tax rate to an amount 1,757
greater than one-half mill, but not in excess of four mills, and 1,758
shall be for a maximum period of twenty-three years after the 1,759
last purchase and except in those years in which a supplemental 1,760
agreement authorized by section 3318.081 of the Revised Code is 1,761
in effect, the rate shall be as prescribed for such section for 1,762
the period during which such agreement is in effect. Where a 1,763
school district has purchased classroom facilities from the state 1,764
on which any portion of the purchase price remains unpaid and it 1,765
desires to purchase additional classroom facilities, the notice 1,766
of election and form of ballot set forth in section 3318.06 of 1,767
the Revised Code shall provide that the levy is an extension of 1,768
an existing levy for a maximum period of twenty-three years. 1,769
42
Where there has been more than one purchase of classroom 1,770
facilities from the state, any proceeds of the tax to be used to 1,771
pay the purchase price of such facilities shall be applied to the 1,772
unpaid purchase price of the projects in the order in which they 1,773
were purchased.
Sec. 3318.18. The unpaid purchase price of a project shall 1,782
constitute an indebtedness of the school district but shall not 1,783
be included in the calculation of indebtedness under sections 1,784
133.04 and 133.06 of the Revised Code. In the event all or a 1,785
portion of the territory comprising a school district, which has 1,786
outstanding an indebtedness to the state representing the unpaid 1,787
purchase price of a project or projects, is transferred to 1,788
another school district, or, if a new school district is created 1,789
to include all or a portion of such school district, the 1,790
outstanding indebtedness for each project shall be apportioned 1,791
between the acquiring school district and the original school 1,792
district in the ratio, as of the effective date of the transfer, 1,793
which the assessed valuation of the territory transferred to the 1,794
acquiring school district bears to the assessed valuation of the 1,795
original school district. 1,796
The amount of the indebtedness so assumed by the new school 1,798
district or acquiring school district shall be equal to one-half 1,799
mill multiplied by the total value of all property as listed and 1,800
assessed for taxation in the original school district or 1,801
territory transferred for each of the years remaining in the 1,802
agreement for payment of purchase price between the original 1,803
school district and the state board of education. On or before 1,804
the first day of July of each year, the department of taxation 1,805
shall certify to the state board of education OHIO SCHOOL 1,806
FACILITIES COMMISSION the amount of the tax duplicate of the 1,808
original school district or territory transferred for the 1,809
calendar year ending on the thirty-first day of December 1,810
immediately preceding. This tax duplicate shall be used in the 1,811
calculation of the indebtedness so assumed.
43
The acquiring school district shall levy a tax outside the 1,813
ten-mill limitation upon all property in the acquiring school 1,814
district to pay the indebtedness so assumed until the 1,815
indebtedness so assumed has been discharged but not longer than 1,816
twenty-three years after the original incurrence of the 1,817
indebtedness, provided, that the levy in the acquiring school 1,818
district in any year shall not exceed the levy in the original 1,819
school district to pay the purchase price of projects acquired 1,820
from the state. The proceeds of the aforesaid tax levy in the 1,821
acquiring school district shall be applied to the discharge of 1,822
indebtedness first incurred in point of time whether or not it be 1,823
an indebtedness assumed from another school district. 1,824
Sec. 3318.19. A complete detailed report of the 1,833
expenditure of funds pursuant to the provisions of sections 1,834
3318.01 to 3318.20, inclusive, of the Revised Code shall be made 1,836
by the state board OHIO SCHOOL FACILITIES COMMISSION biennially 1,837
to the general assembly. The report shall contain a detailed 1,838
statement of classroom facilities acquired in whole or in part by 1,839
the state and sold to school districts, the moneys received from 1,840
school districts for credit against their indebtedness to the
state, and such other information as will advise the general 1,841
assembly of the nature and progress of this program. 1,842
Sec. 3318.22. (A) The general assembly finds that many 1,851
school districts are prevented by their size, tax base, or other 1,852
conditions from performing their essential functions as agencies 1,853
of state government to provide adequate classroom facilities and 1,854
issuing securities under Chapter 133. of the Revised Code at 1,855
favorable interest rates or charges. Accordingly, the state 1,856
board of education OHIO SCHOOL FACILITIES COMMISSION is invested 1,858
with the powers and duties provided in sections 3318.21 to 1,859
3318.29 of the Revised Code in order to provide deserved 1,860
assistance and materially contribute to the educational 1,861
revitalization of such school districts and result in improving 1,862
the education and welfare of all the people of the state. 1,863
44
(B) Sections 3318.21 to 3318.29 of the Revised Code do not 1,865
authorize the state board of education COMMISSION or the issuing 1,866
authority to incur bonded indebtedness of the state or any 1,868
political subdivision of the state, or to obligate or pledge 1,869
moneys raised by taxation for the payment of any bonds or notes 1,870
issued pursuant to sections 3318.21 to 3318.29 of the Revised 1,871
Code.
Sec. 3318.23. (A) There is hereby created the school 1,880
districts facilities fund within the state treasury that shall 1,881
consist of the proceeds of obligations issued pursuant to section 1,882
3318.26 of the Revised Code for the purposes of such fund, which 1,883
obligations are payable, in part, from moneys in the public 1,884
school building fund created in section 3318.15 of the Revised 1,885
Code; moneys received by the state from sources specified in 1,886
section 3318.27 of the Revised Code; service or other charges 1,887
imposed pursuant to section 3318.24 of the Revised Code; any 1,888
grants, gifts, or contributions of money received by the state 1,889
board of education OHIO SCHOOL FACILITIES COMMISSION for use in 1,891
making loans from the fund pursuant to section 3318.24 of the 1,892
Revised Code; and all other moneys appropriated or transferred to 1,893
the fund; provided that the school districts facilities fund 1,894
shall not be comprised, in any part, of money raised by taxation. 1,895
(B) Moneys in the public school building fund that are 1,897
pledged receipts and that are, pursuant to section 3318.26 of the 1,898
Revised Code, made available by the state board of education 1,899
COMMISSION to pay bond service charges for obligations issued 1,901
pursuant to that section shall be credited to the school 1,902
facilities bond service fund created in division (S) of section 1,903
3318.26 of the Revised Code for each issuance of obligations 1,904
authorized under that section unless otherwise provided in the 1,905
applicable bond proceedings. 1,906
(C) Subject to the approval of the controlling board, all 1,908
moneys appropriated or transferred to the school districts 1,909
facilities fund may be released at the request of the state board 1,910
45
of education COMMISSION for the making of loans pursuant to 1,911
section 3318.24 of the Revised Code. 1,913
Sec. 3318.24. (A) The state board of education OHIO 1,922
SCHOOL FACILITIES COMMISSION shall adopt rules in accordance with 1,924
Chapter 119. of the Revised Code under which, in any fiscal year 1,925
for which moneys are available in the school districts facilities 1,926
fund, the state board COMMISSION, subject to the approval of the 1,928
controlling board, may make loans from the fund to school 1,929
districts for the purpose of paying the allowable costs of a 1,930
permanent improvement. The rules shall include, but need not be 1,931
limited to, all of the following:
(1) Application procedures, including the date by which 1,933
applications shall be made; 1,934
(2) Eligibility criteria, which shall include at least the 1,936
following provisions: 1,937
(a) A requirement that an applicant district demonstrate 1,939
need for additional or improved classroom facilities. Indicators 1,940
of need shall include, but need not be limited to, enrollment 1,941
levels and enrollment changes; ability of the district to 1,942
maintain minimum educational standards; the inability of the 1,943
district to finance the allowable costs of the permanent 1,944
improvement through ordinary financial channels upon reasonable 1,945
terms and at a reasonable interest rate or charge; and 1,946
demonstrated good faith efforts by the district to provide 1,947
classroom facilities by other means. 1,948
(b) A requirement that the loan will be adequately secured 1,950
by the issuance of general obligation bonds by the school 1,951
district as voted upon and approved by the district's electors 1,952
pursuant to section 133.18 of the Revised Code. 1,953
(c) A requirement that an applicant district demonstrate 1,955
the ability to repay the loan and interest charge within the 1,956
maximum period permitted by division (A)(4) of this section. 1,957
(3) Loan approval procedures and criteria, including 1,959
criteria for prioritizing eligible applications in accordance 1,960
46
with demonstrated need for additional or improved classroom 1,961
facilities. 1,962
(4) Provisions governing repayment of loans and interest 1,964
charges, including a provision that loans and interest charges be 1,965
repaid within a maximum of twenty-five years. 1,966
(5) Provisions governing the charging, altering, and 1,968
collection, by the state board COMMISSION, of fees or interest or 1,970
other charges for loans or service charges for the making of a 1,971
loan.
(B) The state board COMMISSION shall enter into a loan 1,973
agreement with each district it approves for a loan pursuant to 1,975
division (A) of this section. The agreement shall specify the 1,976
amount of the loan, the amount of the interest charged for the 1,977
loan, the purpose for which the loan is to be used, the duration 1,978
of the loan, and the repayment schedule. Every such agreement 1,979
shall contain a provision authorizing the state board COMMISSION 1,980
to deduct from payments due to the district under Chapter 3317. 1,982
of the Revised Code or from any other funds appropriated to the 1,983
district by the general assembly, the amount of any scheduled 1,984
loan payment due but not paid by the district. The state board 1,985
COMMISSION may take any necessary or appropriate action to 1,987
collect or otherwise deal with any loan made pursuant to this 1,988
section.
Sec. 3318.25. There is hereby created in the state 1,997
treasury the school building program assistance fund. The fund 1,998
shall consist of the proceeds of obligations issued for the 1,999
purposes of such fund pursuant to section 3318.26 of the Revised 2,000
Code that are payable from moneys in the lottery profits 2,001
education fund created in section 3770.06 of the Revised Code. 2,002
Moneys in the fund shall be used as directed by the state board 2,003
of education OHIO SCHOOL FACILITIES COMMISSION for the cost to 2,005
the state of acquiring classroom facilities for sale to school
districts pursuant to sections 3318.01 to 3318.20 of the Revised 2,006
Code. 2,007
47
Sec. 3318.26. (A) Subject to the limitations provided in 2,016
section 3318.29 of the Revised Code, the issuing authority, upon 2,017
the certification by the state board of education OHIO SCHOOL 2,019
FACILITIES COMMISSION to the issuing authority of the amount of 2,020
moneys or additional moneys needed in the school districts 2,021
facilities fund for the purpose of making loans for allowable 2,022
costs from such fund or in the school building program assistance 2,023
fund for the purposes of sections 3318.01 to 3318.20 of the 2,024
Revised Code, or needed for capitalized interest, for funding 2,025
reserves, and for paying costs and expenses incurred in 2,026
connection with the issuance, carrying, securing, paying, 2,027
redeeming, or retirement of the obligations or any obligations 2,028
refunded thereby, including payment of costs and expenses 2,029
relating to letters of credit, lines of credit, insurance, put 2,030
agreements, standby purchase agreements, indexing, marketing, 2,031
remarketing and administrative arrangements, interest swap or 2,032
hedging agreements, and any other credit enhancement, liquidity, 2,033
remarketing, renewal, or refunding arrangements, all of which are 2,034
authorized by this section, shall issue obligations of the state 2,035
under this section in the required amount. The proceeds of such 2,036
obligations, except for obligations issued to provide moneys for 2,038
the school building program assistance fund or except for such 2,039
portion to be deposited in special funds, including reserve 2,040
funds, as may be provided in the bond proceedings, shall as 2,041
provided in the bond proceedings be deposited by the treasurer of 2,042
state to the school districts facilities fund. The issuing 2,043
authority may appoint trustees, paying agents, and transfer 2,044
agents and may retain the services of financial advisors and 2,045
accounting experts and retain or contract for the services of 2,046
marketing, remarketing, indexing, and administrative agents, 2,047
other consultants, and independent contractors, including 2,048
printing services, as are necessary in the issuing authority's 2,049
judgment to carry out this section. The costs of such services 2,050
are payable from the school districts facilities fund, the school 2,051
48
building program assistance fund, or any special fund determined 2,052
by the issuing authority.
(B) The holders or owners of such obligations shall have 2,054
no right to have moneys raised by taxation obligated or pledged, 2,055
and moneys raised by taxation shall not be obligated or pledged, 2,056
for the payment of bond service charges. Such holders or owners 2,057
shall have no rights to payment of bond service charges from any 2,058
money or property received by the state board of education 2,059
COMMISSION, treasurer of state, or the state, or from any other 2,061
use of the proceeds of the sale of the obligations, and no such 2,062
moneys may be used for the payment of bond service charges, 2,063
except for accrued interest, capitalized interest, and reserves 2,064
funded from proceeds received upon the sale of the obligations 2,065
and except as otherwise expressly provided in the applicable bond 2,066
proceedings pursuant to written directions by the treasurer of 2,067
state. The right of such holders and owners to payment of bond 2,068
service charges shall be limited to all or that portion of the 2,069
pledged receipts and those special funds pledged thereto pursuant 2,070
to the bond proceedings in accordance with this section, and each 2,071
such obligation shall bear on its face a statement to that 2,072
effect.
(C) Obligations shall be authorized by resolution or order 2,074
of the issuing authority and the bond proceedings shall provide 2,075
for the purpose thereof and the principal amount or amounts, and 2,076
shall provide for or authorize the manner or agency for 2,077
determining the principal maturity or maturities, not exceeding 2,078
the limits specified in section 3318.29 of the Revised Code, the 2,079
interest rate or rates or the maximum interest rate, the date of 2,080
the obligations and the dates of payment of interest thereon, 2,081
their denomination, and the establishment within or without the 2,082
state of a place or places of payment of bond service charges. 2,083
Sections 9.98 to 9.983 of the Revised Code are applicable to 2,084
obligations issued under this section, subject to any applicable 2,085
limitation under section 3318.29 of the Revised Code. The 2,086
49
purpose of such obligations may be stated in the bond proceedings 2,087
in terms describing the general purpose or purposes to be served. 2,088
The bond proceedings shall also provide, subject to the 2,089
provisions of any other applicable bond proceedings, for the 2,090
pledge of all, or such part as the issuing authority may 2,091
determine, of the pledged receipts and the applicable special 2,092
fund or funds to the payment of bond service charges, which 2,093
pledges may be made either prior or subordinate to other 2,094
expenses, claims, or payments, and may be made to secure the 2,095
obligations on a parity with obligations theretofore or 2,096
thereafter issued, if and to the extent provided in the bond 2,097
proceedings. The pledged receipts and special funds so pledged 2,098
and thereafter received by the state are immediately subject to 2,099
the lien of such pledge without any physical delivery thereof or 2,100
further act, and the lien of any such pledges is valid and 2,101
binding against all parties having claims of any kind against the 2,102
state or any governmental agency of the state, irrespective of 2,103
whether such parties have notice thereof, and shall create a 2,104
perfected security interest for all purposes of Chapter 1309. of 2,105
the Revised Code, without the necessity for separation or 2,106
delivery of funds or for the filing or recording of the bond 2,107
proceedings by which such pledge is created or any certificate, 2,108
statement or other document with respect thereto; and the pledge 2,109
of such pledged receipts and special funds is effective and the 2,110
money therefrom and thereof may be applied to the purposes for 2,111
which pledged without necessity for any act of appropriation, 2,112
except as required by section 3770.06 of the Revised Code. Every 2,113
pledge, and every covenant and agreement made with respect 2,114
thereto, made in the bond proceedings may therein be extended to 2,115
the benefit of the owners and holders of obligations authorized 2,116
by this section, and to any trustee therefor, for the further 2,117
security of the payment of the bond service charges. 2,118
(D) The bond proceedings may contain additional provisions 2,120
as to: 2,121
50
(1) The redemption of obligations prior to maturity at the 2,123
option of the issuing authority at such price or prices and under 2,124
such terms and conditions as are provided in the bond 2,125
proceedings; 2,126
(2) Other terms of the obligations; 2,128
(3) Limitations on the issuance of additional obligations; 2,130
(4) The terms of any trust agreement or indenture securing 2,132
the obligations or under which the same may be issued; 2,133
(5) The deposit, investment and application of special 2,135
funds, and the safeguarding of moneys on hand or on deposit, 2,136
without regard to Chapter 131., 133., or 135. of the Revised 2,137
Code, but subject to any special provisions of sections 3318.21 2,138
to 3318.29 of the Revised Code, with respect to particular funds 2,139
or moneys, provided that any bank or trust company that acts as 2,140
depository of any moneys in the special funds may furnish such 2,141
indemnifying bonds or may pledge such securities as required by 2,142
the issuing authority; 2,143
(6) Any or every provision of the bond proceedings being 2,145
binding upon such officer, board, commission, authority, agency, 2,146
department, or other person or body as may from time to time have 2,147
the authority under law to take such actions as may be necessary 2,148
to perform all or any part of the duty required by such 2,149
provision; 2,150
(7) Any provision that may be made in a trust agreement or 2,153
indenture;
(8) The lease or sublease of any interest of the school 2,155
district or the state in one or more projects as defined in 2,156
division (C) of section 3318.01 of the Revised Code, or in one or 2,157
more permanent improvements, to or from the issuing authority, as 2,158
provided in one or more lease or sublease agreements between the
school or the state and the issuing authority; 2,159
(9) Any other or additional agreements with the holders of 2,161
the obligations, or the trustee therefor, relating to the 2,162
obligations or the security therefor, including in the case of 2,163
51
obligations issued to provide moneys for the school district 2,164
facilities fund the assignment of security obtained or to be 2,165
obtained for loans under section 3318.24 of the Revised Code. 2,166
(E) The obligations may have the great seal of the state 2,168
or a facsimile thereof affixed thereto or printed thereon. The 2,169
obligations and any coupons pertaining to obligations shall be 2,170
signed or bear the facsimile signature of the issuing authority. 2,171
Any obligations or coupons may be executed by the person who, on 2,172
the date of execution, is the proper issuing authority although 2,173
on the date of such bonds or coupons such person was not the 2,174
issuing authority. In case the issuing authority whose signature 2,175
or a facsimile of whose signature appears on any such obligation 2,176
or coupon ceases to be the issuing authority before delivery 2,177
thereof, such signature or facsimile is nevertheless valid and 2,178
sufficient for all purposes as if the issuing authority had 2,179
remained the issuing authority until such delivery; and in case 2,181
the seal to be affixed to obligations has been changed after a 2,182
facsimile of the seal has been imprinted on such obligations, 2,183
such facsimile seal shall continue to be sufficient as to such 2,184
obligations and obligations issued in substitution or exchange 2,185
therefor.
(F) All obligations are negotiable instruments and 2,187
securities under Chapter 1308. of the Revised Code, subject to 2,188
the provisions of the bond proceedings as to registration. The 2,189
obligations may be issued in coupon or in registered form, or 2,190
both, as the issuing authority determines. Provision may be made 2,191
for the registration of any obligations with coupons attached 2,192
thereto as to principal alone or as to both principal and 2,193
interest, their exchange for obligations so registered, and for 2,194
the conversion or reconversion into obligations with coupons 2,195
attached thereto of any obligations registered as to both 2,196
principal and interest, and for reasonable charges for such 2,197
registration, exchange, conversion, and reconversion. 2,198
(G) Obligations may be sold at public sale or at private 2,200
52
sale, as determined in the bond proceedings. 2,201
(H) Pending preparation of definitive obligations, the 2,203
issuing authority may issue interim receipts or certificates 2,204
which shall be exchanged for such definitive obligations. 2,205
(I) In the discretion of the issuing authority, 2,207
obligations may be secured additionally by a trust agreement or 2,208
indenture between the issuing authority and a corporate trustee 2,209
which may be any trust company or bank having its principal place 2,210
of business within the state. Any such agreement or indenture 2,211
may contain the resolution or order authorizing the issuance of 2,212
the obligations, any provisions that may be contained in any bond 2,213
proceedings, and other provisions that are customary or 2,214
appropriate in an agreement or indenture of such type, including, 2,215
but not limited to: 2,216
(1) Maintenance of each pledge, trust agreement, 2,218
indenture, or other instrument comprising part of the bond 2,219
proceedings until the state has fully paid the bond service 2,220
charges on the obligations secured thereby, or provision therefor 2,221
has been made; 2,222
(2) In the event of default in any payments required to be 2,224
made by the bond proceedings, or any other agreement of the 2,225
issuing authority made as a part of the contract under which the 2,226
obligations were issued, enforcement of such payments or 2,227
agreement by mandamus, the appointment of a receiver, suit in 2,228
equity, action at law, or any combination of the foregoing; 2,229
(3) The rights and remedies of the holders of obligations 2,231
and of the trustee, and provisions for protecting and enforcing 2,232
them, including limitations on rights of individual holders of 2,233
obligations; 2,234
(4) The replacement of any obligations that become 2,236
mutilated or are destroyed, lost, or stolen; 2,237
(5) Such other provisions as the trustee and the issuing 2,239
authority agree upon, including limitations, conditions, or 2,240
qualifications relating to any of the foregoing. 2,241
53
(J) Any holder of obligations or a trustee under the bond 2,243
proceedings, except to the extent that the holder's or trustee's 2,245
rights are restricted by the bond proceedings, may by any 2,246
suitable form of legal proceedings, protect and enforce any 2,247
rights under the laws of this state or granted by such bond 2,248
proceedings. Such rights include the right to compel the 2,249
performance of all duties of the issuing authority, the state 2,250
board of education COMMISSION, or the director of budget and 2,252
management required by sections 3318.21 to 3318.29 of the Revised 2,253
Code or the bond proceedings; to enjoin unlawful activities; and 2,254
in the event of default with respect to the payment of any bond 2,255
service charges on any obligations or in the performance of any 2,256
covenant or agreement on the part of the issuing authority, the 2,257
state board of education COMMISSION, or the director of budget 2,259
and management in the bond proceedings, to apply to a court 2,260
having jurisdiction of the cause to appoint a receiver to receive 2,261
and administer the pledged receipts and special funds, other than 2,262
those in the custody of the treasurer of state or the state board 2,263
of education COMMISSION, which are pledged to the payment of the 2,264
bond service charges on such obligations or which are the subject 2,265
of the covenant or agreement, with full power to pay, and to 2,266
provide for payment of bond service charges on, such obligations, 2,267
and with such powers, subject to the direction of the court, as 2,268
are accorded receivers in general equity cases, excluding any 2,269
power to pledge additional revenues or receipts or other income 2,270
or moneys of the issuing authority or the state or governmental 2,271
agencies of the state to the payment of such principal and 2,272
interest and excluding the power to take possession of, mortgage, 2,273
or cause the sale or otherwise dispose of any permanent 2,274
improvement. 2,275
Each duty of the issuing authority and the issuing 2,277
authority's officers and employees, and of each governmental 2,278
agency and its officers, members, or employees, undertaken 2,279
pursuant to the bond proceedings or any agreement or loan made 2,280
54
under authority of sections 3318.21 to 3318.29 of the Revised 2,281
Code, and in every agreement by or with the issuing authority, is 2,282
hereby established as a duty of the issuing authority, and of 2,283
each such officer, member, or employee having authority to 2,284
perform such duty, specifically enjoined by the law resulting 2,285
from an office, trust, or station within the meaning of section 2,286
2731.01 of the Revised Code. 2,287
The person who is at the time the issuing authority, or the 2,289
issuing authority's officers or employees, are not liable in 2,290
their personal capacities on any obligations issued by the 2,291
issuing authority or any agreements of or with the issuing 2,292
authority. 2,293
(K) The issuing authority may authorize and issue 2,295
obligations for the refunding, including funding and retirement, 2,296
and advance refunding with or without payment or redemption prior 2,297
to maturity, of any obligations previously issued by the issuing 2,298
authority. Such obligations may be issued in amounts sufficient 2,299
for payment of the principal amount of the prior obligations, any 2,300
redemption premiums thereon, principal maturities of any such 2,301
obligations maturing prior to the redemption of the remaining 2,302
obligations on a parity therewith, interest accrued or to accrue 2,303
to the maturity dates or dates of redemption of such obligations, 2,304
and any allowable costs including expenses incurred or to be 2,305
incurred in connection with such issuance and such refunding, 2,306
funding, and retirement. Subject to the bond proceedings 2,307
therefor, the portion of proceeds of the sale of obligations 2,308
issued under this division to be applied to bond service charges 2,309
on the prior obligations shall be credited to an appropriate 2,310
account held by the trustee for such prior or new obligations or 2,311
to the appropriate account in the bond service fund for such 2,312
obligations. Obligations authorized under this division shall be 2,313
deemed to be issued for those purposes for which such prior 2,314
obligations were issued and are subject to the provisions of this 2,315
section pertaining to other obligations, except as otherwise 2,316
55
provided in this section; provided that, unless otherwise 2,317
authorized by the general assembly, any limitations imposed by 2,318
the general assembly pursuant to this section with respect to 2,319
bond service charges applicable to the prior obligations shall be 2,320
applicable to the obligations issued under this division to 2,321
refund, fund, advance refund or retire such prior obligations. 2,322
(L) The authority to issue obligations under this section 2,324
includes authority to refund or refinance any obligations 2,325
previously issued by the state under sections 3318.21 to 3318.29 2,326
of the Revised Code. 2,327
The authority to issue obligations under this section also 2,329
includes authority to issue obligations in the form of bond 2,330
anticipation notes and to renew the same from time to time by the 2,331
issuance of new notes. The holders of such notes or interest 2,332
coupons pertaining thereto shall have a right to be paid solely 2,333
from the pledged receipts and special funds that may be pledged 2,334
to the payment of the bonds anticipated, or from the proceeds of 2,335
such bonds or renewal notes, or both, as the issuing authority 2,336
provides in the resolution or order authorizing such notes. Such 2,337
notes may be additionally secured by covenants of the issuing 2,338
authority to the effect that the issuing authority and the state 2,339
will do such or all things necessary for the issuance of such 2,340
bonds or renewal notes in appropriate amount, and apply the 2,341
proceeds thereof to the extent necessary, to make full payment of 2,342
the principal of and interest on such notes at the time or times 2,343
contemplated, as provided in such resolution or order. For such 2,344
purpose, the issuing authority may issue bonds or renewal notes 2,345
in such principal amount and upon such terms as may be necessary 2,346
to provide funds to pay when required the principal of and 2,347
interest on such notes, notwithstanding any limitations 2,348
prescribed by or for purposes of this section. Subject to this 2,349
division, all provisions for and references to obligations in 2,350
this section are applicable to notes authorized under this 2,351
division. 2,352
56
The issuing authority in the bond proceedings authorizing 2,354
the issuance of bond anticipation notes shall set forth for such 2,355
bonds an estimated interest rate and a schedule of principal 2,356
payments for such bonds and the annual maturity dates thereof, 2,357
and for purposes of any limitation on bond service charges 2,358
prescribed under section 3318.29 of the Revised Code, the amount 2,359
of bond service charges on such bond anticipation notes shall be 2,360
deemed to be the bond service charges for the bonds anticipated 2,361
thereby as set forth in the bond proceedings applicable to such 2,362
notes, but this provision does not modify any authority in this 2,363
section to pledge pledged receipts and special funds to, and 2,364
covenant to issue bonds to fund, the payment of principal of and 2,365
interest and any premium on such notes. 2,366
(M) Obligations issued under this section are lawful 2,368
investments for banks, societies for savings, savings and loan 2,369
associations, deposit guarantee associations, trust companies, 2,370
trustees, fiduciaries, insurance companies, including domestic 2,371
for life and domestic not for life, trustees or other officers 2,372
having charge of sinking and bond retirement or other special 2,373
funds of political subdivisions and taxing districts of this 2,374
state, the commissioners of the sinking fund of the state, the 2,375
administrator of workers' compensation, the state teachers 2,377
retirement system, the public employees retirement system, the 2,378
school employees retirement system, and the police and firemen's 2,379
disability and pension fund, notwithstanding any other provisions 2,380
of the Revised Code or rules adopted pursuant thereto by any 2,381
governmental agency of the state with respect to investments by 2,382
them, and also are acceptable as security for the deposit of 2,383
public moneys.
(N) Unless otherwise provided in any applicable bond 2,385
proceedings, moneys to the credit of or in the special funds 2,386
established by or pursuant to this section may be invested by or 2,387
on behalf of the issuing authority only in notes, bonds, or other 2,388
obligations of the United States, or of any agency or 2,389
57
instrumentality of the United States, obligations guaranteed as 2,391
to principal and interest by the United States, obligations of 2,392
this state or any political subdivision of this state, and 2,393
certificates of deposit of any national bank located in this 2,395
state and any bank, as defined in section 1101.01 of the Revised 2,396
Code, subject to inspection by the superintendent of financial 2,397
institutions. If the law or the instrument creating a trust 2,399
pursuant to division (I) of this section expressly permits 2,400
investment in direct obligations of the United States or an 2,401
agency of the United States, unless expressly prohibited by the 2,402
instrument, such moneys also may be invested in no front end load 2,403
money market mutual funds consisting exclusively of obligations 2,404
of the United States or an agency of the United States and in 2,405
repurchase agreements, including those issued by the fiduciary 2,406
itself, secured by obligations of the United States or an agency 2,407
of the United States; and in collective investment funds 2,408
established in accordance with section 1111.14 of the Revised 2,410
Code and consisting exclusively of any such securities, 2,411
notwithstanding division (A)(1)(c) of that section. The income 2,413
from such investments shall be credited to such funds as the 2,415
issuing authority determines, and such investments may be sold at 2,416
such times as the issuing authority determines or authorizes. 2,417
(O) Provision may be made in the applicable bond 2,419
proceedings for the establishment of separate accounts in the 2,420
bond service fund and for the application of such accounts only 2,421
to the specified bond service charges on obligations pertinent to 2,422
such accounts and bond service fund and for other accounts 2,423
therein within the general purposes of such fund. Unless 2,424
otherwise provided in any applicable bond proceedings, moneys to 2,425
the credit of or in the several special funds established 2,426
pursuant to this section shall be disbursed on the order of the 2,427
treasurer of state, provided that no such order is required for 2,428
the payment from the bond service fund when due of bond service 2,429
charges on obligations. 2,430
58
(P) The issuing authority may pledge all, or such portion 2,432
as the issuing authority determines, of the pledged receipts to 2,433
the payment of bond service charges on obligations issued under 2,434
this section, and for the establishment and maintenance of any 2,435
reserves, as provided in the bond proceedings, and make other 2,436
provisions therein with respect to pledged receipts as authorized 2,437
by this chapter, which provisions shall be controlling 2,438
notwithstanding any other provisions of law pertaining thereto. 2,439
(Q) The issuing authority may covenant in the bond 2,441
proceedings, and any such covenants shall be controlling 2,442
notwithstanding any other provision of law, that the state and 2,443
applicable officers and governmental agencies of the state, 2,444
including the general assembly, so long as any obligations are 2,446
outstanding, shall:
(1) Maintain statutory authority for and cause to be 2,448
operated the state lottery, including the transfers to and from 2,449
the lottery profits education fund created in section 3770.06 of 2,450
the Revised Code so that the pledged receipts shall be sufficient 2,451
in amount to meet bond service charges, and the establishment and 2,452
maintenance of any reserves and other requirements provided for 2,453
in the bond proceedings; 2,454
(2) Take or permit no action, by statute or otherwise, 2,456
that would impair the exclusion from gross income for federal 2,457
income tax purposes of the interest on any obligations designated 2,458
by the bond proceeding as tax-exempt obligations. 2,459
(R) There is hereby created the school building program 2,461
bond service fund, which shall be in the custody of the treasurer 2,462
of state but shall be separate and apart from and not a part of 2,463
the state treasury. All moneys received by or on account of the 2,464
issuing authority or state agencies and required by the 2,465
applicable bond proceedings, consistent with this section, to be 2,466
deposited, transferred, or credited to the school building 2,467
program bond service fund, and all other moneys transferred or 2,468
allocated to or received for the purposes of the fund, shall be 2,469
59
deposited and credited to such fund and to any separate accounts 2,470
therein, subject to applicable provisions of the bond 2,471
proceedings, but without necessity for any act of appropriation, 2,472
except as required by section 3770.06 of the Revised Code. 2,473
During the period beginning with the date of the first issuance 2,474
of obligations and continuing during such time as any such 2,475
obligations are outstanding, and so long as moneys in the school 2,476
building program bond service fund are insufficient to pay all 2,477
bond service charges on such obligations becoming due in each 2,478
year, a sufficient amount of the moneys from the lottery profits 2,479
education fund included in pledged receipts, subject to 2,480
appropriation for such purpose as provided in section 3770.06 of 2,481
the Revised Code, are committed and shall be paid to the school 2,482
building program bond service fund in each year for the purpose 2,483
of paying the bond service charges becoming due in that year. 2,484
The school building program bond service fund is a trust fund and 2,485
is hereby pledged to the payment of bond service charges solely 2,486
on obligations issued to provide moneys for the school building 2,487
program assistance fund to the extent provided in the applicable 2,488
bond proceedings, and payment thereof from such fund shall be 2,489
made or provided for by the treasurer of state in accordance with 2,490
such bond proceedings without necessity for any act of 2,491
appropriation except as required by section 3770.06 of the 2,492
Revised Code. 2,493
(S) There is hereby created the school facilities bond 2,495
service fund, which shall be in the custody of the treasurer of 2,496
state but shall be separate and apart from and not a part of the 2,497
state treasury. All moneys received by or on account of the 2,498
issuing authority or state agencies and required by the 2,499
applicable bond proceedings, consistent with this section, to be 2,500
deposited, transferred, or credited to the school facilities bond 2,501
service fund, and all other moneys transferred or allocated to or 2,502
received for the purposes of the fund, shall be deposited and 2,503
credited to such fund and to any separate accounts therein, 2,504
60
subject to applicable provisions of the bond proceedings, but 2,505
without necessity for any act of appropriation. During the 2,506
period beginning with the date of the first issuance of 2,507
obligations and continuing during such time as any such 2,508
obligations are outstanding, and so long as moneys in the school 2,509
facilities bond service fund are insufficient to pay all bond 2,510
service charges on such obligations becoming due in each year, a 2,511
sufficient amount of the moneys from the public school building 2,512
fund included in pledged receipts are committed and shall be paid 2,513
to the bond service fund in each year for the purpose of paying 2,514
the bond service charges becoming due in that year. The school 2,515
facilities bond service fund is a trust fund and is hereby 2,516
pledged to the payment of bond service charges on obligations 2,517
issued to provide moneys for the school districts facilities fund 2,518
to the extent provided in the applicable bond proceedings, and 2,519
payment thereof from such fund shall be made or provided for by 2,520
the treasurer of state in accordance with such bond proceedings 2,521
without necessity for any act or appropriation. 2,522
(T) The obligations, the transfer thereof, and the income 2,524
therefrom, including any profit made on the sale thereof, at all 2,526
times shall be free from taxation within the state.
Sec. 3318.27. There shall be credited to the school 2,535
facilities bond service fund the moneys received by the state 2,536
from the repayment of loans, including interest thereon, made 2,537
from the school districts facilities fund with moneys derived 2,538
from the proceeds of the sale of obligations under section 2,539
3318.26 of the Revised Code. Such moneys shall be applied as 2,540
provided in sections 3318.21 to 3318.29 of the Revised Code. 2,541
Accounts may be established by the state board of education OHIO 2,543
SCHOOL FACILITIES COMMISSION in the school districts facilities 2,544
fund for particular projects or otherwise. Income from the 2,545
investment of moneys in the school districts facilities fund 2,546
shall be credited to that fund and, as may be provided in bond 2,547
proceedings, to particular accounts therein. The treasurer of 2,548
61
state may withdraw from the school districts facilities fund or 2,549
the school building program assistance fund, or, subject to 2,550
provisions of the applicable bond proceedings, from any special 2,551
funds established pursuant to the bond proceedings, or from any 2,552
accounts in such funds, any amounts of investment income required 2,553
to be rebated and paid to the federal government in order to 2,554
maintain the exemption from federal income taxation of interest 2,555
on obligations issued under sections 3318.21 to 3318.29 of the 2,556
Revised Code, which withdrawal and payment may be made without 2,557
necessity for appropriation.
Sec. 3318.29. The maximum maturity of any obligations 2,566
issued pursuant to section 3318.26 of the Revised Code to provide 2,567
moneys for the school building program assistance fund shall be 2,568
ten years. The terms of the obligations shall be such that in 2,569
any fiscal year the aggregate amount of moneys from the lottery 2,570
profits education fund, and not from other sources, that are 2,571
pledged to pay bond service charges on obligations issued to 2,572
provide moneys for the school building program assistance fund 2,573
shall not exceed ten million dollars. 2,574
As used in this section, "other sources" includes the 2,576
annual investment income on special funds to the extent the 2,577
income will be available for payment of any bond service charges 2,578
in lieu of use of moneys from the lottery profits education fund. 2,579
The annual investment income shall be estimated on the basis of 2,580
the expected funding of those special funds and assumed 2,581
investment earnings thereon at a rate equal to the weighted 2,582
average yield on investments of those special funds determined as 2,583
of any date within sixty days immediately preceding the date of 2,584
issuance of the bonds in respect of which the determination is 2,585
being made. 2,586
The determinations required by this section shall be made 2,588
by the treasurer of state at the time of issuance of an issue of 2,589
obligations and shall be conclusive for purposes of such issuance 2,590
of obligations from and after their issuance and delivery. 2,591
62
The maximum maturity of obligations issued pursuant to 2,593
section 3318.26 of the Revised Code to provide moneys for the 2,594
school district facilities fund shall not exceed the maximum 2,595
maturity of the loan made from such fund pursuant to section 2,596
3318.24 of the Revised Code utilizing the proceeds of such 2,597
obligations or ten years, whichever is less. The terms of the 2,598
obligations shall be such that in any fiscal year the aggregate 2,599
amount of moneys from the public school building fund that are 2,600
pledged to pay bond service charges on obligations issued to 2,601
provide moneys for the school districts facilities fund shall not 2,602
exceed an amount which shall be established by the state board of 2,603
education OHIO SCHOOL FACILITIES COMMISSION. 2,604
Sec. 3318.30. (A) THERE IS HEREBY CREATED THE OHIO SCHOOL 2,607
FACILITIES COMMISSION. THE COMMISSION SHALL ADMINISTER THE 2,608
PROVISION OF FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS FOR THE 2,609
ACQUISITION OR CONSTRUCTION OF CLASSROOM FACILITIES IN ACCORDANCE 2,610
WITH SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,612
THE COMMISSION IS A BODY CORPORATE AND POLITIC, AN AGENCY 2,614
OF STATE GOVERNMENT AND AN INSTRUMENTALITY OF THE STATE, 2,615
PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS OF THIS STATE. THE 2,616
CARRYING OUT OF THE PURPOSES AND THE EXERCISE BY THE COMMISSION 2,617
OF ITS POWERS CONFERRED BY SECTIONS 3318.01 TO 3318.31 OF THE 2,619
REVISED CODE ARE ESSENTIAL PUBLIC FUNCTIONS AND PUBLIC PURPOSES 2,620
OF THE STATE. THE COMMISSION MAY, IN ITS OWN NAME, SUE AND BE 2,621
SUED, ENTER INTO CONTRACTS, AND PERFORM ALL THE POWERS AND DUTIES 2,622
GIVEN TO IT BY SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE 2,624
BUT IT DOES NOT HAVE AND SHALL NOT EXERCISE THE POWER OF EMINENT 2,625
DOMAIN.
(B) THE COMMISSION SHALL CONSIST OF FIVE MEMBERS, THREE OF 2,628
WHOM ARE VOTING MEMBERS. THE VOTING MEMBERS OF THE COMMISSION 2,629
SHALL BE THE DIRECTOR OF THE OFFICE OF BUDGET AND MANAGEMENT, THE 2,630
DIRECTOR OF ADMINISTRATIVE SERVICES, AND THE SUPERINTENDENT OF 2,631
PUBLIC INSTRUCTION, OR THEIR DESIGNEES. OF THE NONVOTING 2,632
MEMBERS, ONE SHALL BE A MEMBER OF THE SENATE APPOINTED BY THE 2,633
63
PRESIDENT OF THE SENATE AND ONE SHALL BE A MEMBER OF THE HOUSE OF 2,634
REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE. 2,635
NONVOTING MEMBERS SHALL SERVE AS MEMBERS OF THE COMMISSION 2,637
DURING THE LEGISLATIVE BIENNIUM FOR WHICH THEY ARE APPOINTED, 2,638
EXCEPT THAT ANY SUCH MEMBER WHO CEASES TO BE A MEMBER OF THE 2,639
LEGISLATIVE HOUSE FROM WHICH THE MEMBER WAS APPOINTED SHALL CEASE 2,641
TO BE A MEMBER OF THE COMMISSION. EACH NONVOTING MEMBER SHALL BE 2,642
APPOINTED WITHIN THIRTY-ONE DAYS OF THE END OF THE TERM OF THAT 2,643
MEMBER'S PREDECESSOR. SUCH MEMBERS MAY BE REAPPOINTED.
VACANCIES OF NONVOTING MEMBERS SHALL BE FILLED IN THE MANNER 2,644
PROVIDED FOR ORIGINAL APPOINTMENTS. 2,645
MEMBERS OF THE COMMISSION SHALL SERVE WITHOUT COMPENSATION. 2,648
AFTER THE INITIAL NONVOTING MEMBERS OF THE COMMISSION HAVE 2,650
BEEN APPOINTED, THE COMMISSION SHALL MEET AND ORGANIZE BY 2,651
ELECTING VOTING MEMBERS AS THE CHAIRPERSON AND VICE-CHAIRPERSON 2,652
OF THE COMMISSION, WHO SHALL HOLD THEIR OFFICES UNTIL THE NEXT 2,654
ORGANIZATIONAL MEETING OF THE COMMISSION. ORGANIZATIONAL 2,655
MEETINGS OF THE COMMISSION SHALL BE HELD AT THE FIRST MEETING OF 2,656
EACH CALENDAR YEAR. AT EACH ORGANIZATIONAL MEETING, THE 2,657
COMMISSION SHALL ELECT FROM AMONG ITS VOTING MEMBERS A 2,658
CHAIRPERSON AND VICE-CHAIRPERSON, WHO SHALL SERVE UNTIL THE NEXT
ANNUAL ORGANIZATIONAL MEETING. THE COMMISSION SHALL ADOPT RULES 2,660
PURSUANT TO SECTION 111.15 OF THE REVISED CODE FOR THE CONDUCT OF 2,662
ITS INTERNAL BUSINESS AND SHALL KEEP A JOURNAL OF ITS 2,663
PROCEEDINGS. INCLUDING THE ORGANIZATIONAL MEETING, THE 2,664
COMMISSION SHALL MEET AT LEAST ONCE EACH CALENDAR QUARTER. 2,665
TWO VOTING MEMBERS OF THE COMMISSION CONSTITUTE A QUORUM, 2,667
AND THE AFFIRMATIVE VOTE OF TWO MEMBERS IS NECESSARY FOR APPROVAL 2,669
OF ANY ACTION TAKEN BY THE COMMISSION. A VACANCY IN THE 2,670
MEMBERSHIP OF THE COMMISSION DOES NOT IMPAIR A QUORUM FROM
EXERCISING ALL THE RIGHTS AND PERFORMING ALL THE DUTIES OF THE 2,671
COMMISSION. MEETINGS OF THE COMMISSION MAY BE HELD ANYWHERE IN 2,672
THE STATE, AND SHALL BE HELD IN COMPLIANCE WITH SECTION 121.22 OF 2,674
THE REVISED CODE.
64
(C) THE COMMISSION SHALL FILE AN ANNUAL REPORT OF ITS 2,677
ACTIVITIES AND FINANCES WITH THE GOVERNOR, SPEAKER OF THE HOUSE 2,678
OF REPRESENTATIVES, PRESIDENT OF THE SENATE, AND CHAIRPERSONS OF 2,679
THE HOUSE AND SENATE FINANCE COMMITTEES. 2,680
(D) THE COMMISSION SHALL BE EXEMPT FROM THE REQUIREMENTS 2,683
OF SECTIONS 101.82, 101.84, AND 101.86 OF THE REVISED CODE. 2,684
Sec. 3318.31. THE OHIO SCHOOL FACILITIES COMMISSION MAY 2,688
PERFORM ANY ACT AND ENSURE THE PERFORMANCE OF ANY FUNCTION 2,689
NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF, AND 2,690
EXERCISE THE POWERS GRANTED UNDER, SECTIONS 3318.01 TO 3318.31 OF 2,691
THE REVISED CODE, INCLUDING ANY OF THE FOLLOWING: 2,692
(A) EMPLOY AND FIX THE COMPENSATION OF SUCH EMPLOYEES AS 2,696
WILL FACILITATE THE ACTIVITIES AND PURPOSES OF THE COMMISSION, 2,697
AND WHO SHALL SERVE AT THE PLEASURE OF THE COMMISSION.
(B) ADOPT, AMEND, AND RESCIND, PURSUANT TO SECTION 111.15 2,700
OF THE REVISED CODE, RULES FOR THE ADMINISTRATION OF SECTIONS 2,702
3318.01 TO 3318.31 OF THE REVISED CODE. 2,703
(C) CONTRACT WITH, RETAIN THE SERVICES OF, OR DESIGNATE, 2,706
AND FIX THE COMPENSATION OF, SUCH AGENTS, ACCOUNTANTS, ATTORNEYS, 2,707
CONSULTANTS, ADVISERS, AND OTHER INDEPENDENT CONTRACTORS AS MAY 2,708
BE NECESSARY OR DESIRABLE TO CARRY OUT THE PURPOSES OF SECTIONS 2,709
3318.01 TO 3318.31 OF THE REVISED CODE. 2,710
(D) RECEIVE AND ACCEPT ANY GIFTS, GRANTS, DONATIONS, AND 2,713
PLEDGES, AND RECEIPTS THEREFROM, TO BE USED FOR THE PURPOSES OF 2,714
SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,715
(E) MAKE AND ENTER INTO ALL CONTRACTS, COMMITMENTS, AND 2,718
AGREEMENTS, AND EXECUTE ALL INSTRUMENTS, NECESSARY OR INCIDENTAL 2,719
TO THE PERFORMANCE OF ITS DUTIES AND THE EXECUTION OF ITS RIGHTS 2,720
AND POWERS UNDER SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,722
Sec. 3318.35. (A) AS USED IN THIS SECTION, "OHIO SCHOOL 2,726
FACILITIES COMMISSION" HAS THE SAME MEANING AS IN SECTION 3318.01 2,727
OF THE REVISED CODE.
(B) THE OHIO SCHOOL FACILITIES COMMISSION SHALL ESTABLISH 2,731
AND ADMINISTER THE EMERGENCY SCHOOL BUILDING REPAIR PROGRAM. 2,732
65
UNDER THE PROGRAM, THE COMMISSION SHALL DISTRIBUTE MONEYS 2,733
APPROPRIATED BY THE GENERAL ASSEMBLY FOR SUCH PURPOSE TO SCHOOL 2,734
DISTRICTS BEGINNING WITH THOSE DISTRICTS WITH AN ADJUSTED PER 2,735
PUPIL VALUATION LESS THAN THE THRESHOLD VALUATION DEFINED IN 2,736
SECTION 3317.0213 OF THE REVISED CODE. THE COMMISSION SHALL 2,737
DETERMINE THE NECESSITY OF EMERGENCY REPAIRS BASED ON AN ON-SITE 2,738
INSPECTION OF THE SCHOOL BUILDINGS IN A SCHOOL DISTRICT. ANY 2,739
SCHOOL DISTRICT THAT RECEIVES MONEYS UNDER THIS SECTION SHALL 2,740
EXPEND THEM ONLY TO REPAIR THE FOLLOWING: 2,741
(1) HEATING SYSTEMS; 2,743
(2) FLOORS, ROOFS, AND EXTERIOR DOORS; 2,745
(3) AIR DUCTS AND OTHER AIR VENTILATION DEVICES; 2,748
(4) EMERGENCY EXIT OR EGRESS PASSAGEWAY LIGHTING; 2,750
(5) FIRE ALARM SYSTEMS; 2,752
(6) HANDICAPPED ACCESS NEEDS; 2,754
(7) SEWAGE SYSTEMS; 2,756
(8) WATER SUPPLIES; 2,758
(9) ASBESTOS REMOVAL; AND 2,760
(10) ANY OTHER REPAIRS TO A SCHOOL BUILDING THAT MEET THE 2,763
REQUIREMENTS OF THE LIFE SAFETY CODE, AS INTERPRETED BY THE 2,764
COMMISSION.
(C) NO MONEYS FOR EMERGENCY SCHOOL BUILDING REPAIR UNDER 2,767
THIS SECTION SHALL BE DISTRIBUTED TO A SCHOOL DISTRICT TO REPAIR 2,768
A SCHOOL BUILDING THAT THE COMMISSION REASONABLY BELIEVES WILL BE 2,769
SUBSTANTIALLY REPLACED WITHIN THE NEXT SEVEN FISCAL YEARS 2,770
PURSUANT TO SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,772
(D) AFTER RECEIPT OF MONEYS FROM THE EMERGENCY SCHOOL 2,775
BUILDING REPAIR PROGRAM, NO SCHOOL DISTRICT SHALL BE ELIGIBLE TO 2,776
RECEIVE ADDITIONAL MONEYS FROM THE PROGRAM FOR THE FOLLOWING FIVE 2,777
FISCAL YEARS UNLESS A SCHOOL BUILDING IN THAT DISTRICT IS DAMAGED 2,778
DUE TO AN ACT OF GOD THAT COULD NOT HAVE BEEN PREVENTED BY 2,780
REASONABLE MAINTENANCE OF THAT BUILDING.
Sec. 4115.04. Every public authority authorized to 2,789
contract for or construct with its own forces a public 2,790
66
improvement, before advertising for bids or undertaking such 2,791
construction with its own forces, shall have the bureau of 2,792
employment services determine the prevailing rates of wages of 2,793
mechanics and laborers in accordance with section 4115.05 of the 2,794
Revised Code for the class of work called for by the public 2,795
improvement, in the locality where the work is to be performed. 2,796
Such schedule of wages shall be attached to and made part of the 2,797
specifications for the work, and shall be printed on the bidding 2,798
blanks where the work is done by contract. A copy of the bidding 2,799
blank shall be filed with the bureau before such contract is 2,800
awarded. A minimum rate of wages for common laborers, on work 2,802
coming under the jurisdiction of the department of 2,803
transportation, shall be fixed in each county of the state by 2,804
said department of transportation, in accordance with section 2,805
4115.05 of the Revised Code.
Sections 4115.03 to 4115.16 of the Revised Code do not 2,807
apply to:
(A) Public improvements in any case where the federal 2,809
government or any of its agencies furnishes by loan or grant all 2,811
or any part of the funds used in constructing such improvements, 2,812
provided the federal government or any of its agencies prescribes 2,813
predetermined minimum wages to be paid to mechanics and laborers 2,814
employed in the construction of such improvements; 2,815
(B) A participant of the subsidized employment program 2,817
established under section 5101.82 of the Revised Code or the work 2,818
experience program established under section 5101.83 of the 2,819
Revised Code when a public authority directly uses the labor of 2,821
the participant to construct a public improvement;
(C) PUBLIC IMPROVEMENTS UNDERTAKEN BY, OR UNDER CONTRACT 2,823
FOR, THE BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OR THE 2,824
GOVERNING BOARD OF ANY EDUCATIONAL SERVICE CENTER. 2,825
Section 2. That existing sections 133.06, 3313.372, 2,827
3318.01, 3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 3318.051, 2,829
3318.06, 3318.07, 3318.08, 3318.081, 3318.091, 3318.10, 3318.111, 2,830
67
3318.12, 3318.13, 3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 2,831
3318.19, 3318.22, 3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 2,832
3318.29, and 4115.04 of the Revised Code are hereby repealed. 2,833
Section 3. All personnel, equipment, materials, assets, 2,835
liabilities, and records of the Department of Education, 2,836
irrespective of form or medium, deemed necessary by the Ohio 2,837
School Facilities Commission to implement the provisions of 2,838
Chapter 3318. of the Revised Code shall be transferred to the 2,839
Commission not later than one hundred twenty days after the 2,840
effective date of this section, in accordance with a transition
plan which shall be developed and appproved by the Commission in 2,841
consultation with the Department. 2,842
All appropriations, encumbrances, and funds of the 2,844
Department, including the Public School Building Fund (Fund 021) 2,845
and the School Building Assistance Fund (Fund 032), deemed 2,846
necessary by the Commission to implement the provisions of 2,847
Chapter 3318. of the Revised Code, shall be transferred to the 2,848
Commission not later than one hundred twenty days after the 2,849
effective date of this section in accordance with the transition 2,850
plan.
Any business commenced but not completed by the Department 2,852
on the effective date of this section relating to the 2,853
implementation of Chapter 3318. of the Revised Code and the 2,854
functions transferred by this act shall continue to be 2,855
administered by the Department for a period of one hundred twenty 2,857
days after the effective date of this section or until the 2,858
transition plan described in this section is approved by the Ohio 2,859
School Facilities Commission, whichever occurs first.
The Department shall provide the Commission whatever 2,861
administrative assistance the Commission requires during the 2,862
period of transition, which assistance shall be specified in the 2,863
transition plan described in this section. 2,864
Wherever any law, contract, or other document refers to the 2,866
Department, the State Board of Education, or the Superintendent 2,867
68
of Public Instruction in regard to the implementation or 2,868
administration of Chapter 3318. of the Revised Code, the 2,869
references shall be deemed to refer to the Commission or the 2,870
Director of the Commission. No action or proceeding pending on 2,871
the effective date of this act relating to the implementation or 2,872
administration of Chapter 3318. of the Revised Code is affected 2,873
by the transfer. In all such actions and proceedings, the 2,874
Commission or the Director shall be substituted as a party upon 2,875
application by the receiving entity to the court or other 2,876
appropriate tribunal. 2,877
Section 4. School building assistance projects proposed to 2,879
be funded pursuant to Chapter 3318. of the Revised Code that were 2,881
on a list approved by the State Board of Education as of January 2,882
1993, but which projects had not yet obtained voter approval by 2,883
September 17, 1996, shall be subject to all provisions of Chapter 2,884
3318. of the Revised Code in effect prior to September 17, 1996, 2,885
except that the provisions of division (B) of section 3318.05 of 2,886
the Revised Code, as that section existed after September 17, 2,887
1996, shall apply to those projects with respect to the 2,888
disposition of the half mill levy required by that section. 2,889
Section 5. SFC SCHOOL FACILITIES COMMISSION 2,891
General Revenue Fund 2,893
GRF 230-428 Lease Rental Payments $ 21,780,000 $ 36,030,000 2,897
TOTAL GRF General Revenue Fund $ 21,780,000 $ 36,030,000 2,899
State Special Revenue Fund 2,902
5E3 230-644 Operating Expenses $ 2,000,000 $ 2,400,000 2,907
Total SSR State Special Revenue $ 2,000,000 $ 2,400,000 2,911
Fund Group
TOTAL ALL BUDGET FUND GROUPS $ 23,780,000 $ 38,430,000 2,914
Operating Expenses 2,917
The foregoing appropriation item 230-644, Operating 2,919
Expenses, shall be used by the Ohio School Facilities Commission 2,920
to carry out its responsibilities pursuant to this section and 2,921
Chapter 3318. of the Revised Code. 2,922
69
There is hereby created in the state treasury the Ohio 2,924
School Facilities Commission Fund (Fund 5E3). The fund shall 2,925
consist of transfers of moneys authorized by the General 2,926
Assembly, grants and other revenues described in division (D) of 2,927
section 3318.31 of the Revised Code, and investment earnings of 2,928
the fund. Moneys credited to the fund may be used by the 2,929
commission for staffing and other administrative expenses, to 2,930
conduct evaluations of school facilities, to prepare building 2,931
design specifications, to provide project management services, 2,932
and for any other purposes deemed necessary by the commission 2,933
consistent with Chapter 3318. of the Revised Code. 2,934
Within 10 days of the effective date of this section, the 2,936
Director of Budget and Management shall transfer $2,000,000 by 2,937
intrastate transfer voucher from the School Facilities 2,938
Commission's appropriation item 230-428, Lease Rental Payments, 2,939
to the Ohio School Facilities Commission Fund (Fund 5E3). In 2,940
fiscal year 1999, by July 10, 1998, the Director of Budget and 2,941
Management shall transfer $2,400,000 by intrastate transfer
voucher from the School Facilities Commission's line item 230-428 2,942
Lease Rental Payments to the Ohio School Facilities Commission 2,943
Fund (Fund 5E3). Investment earnings to the School Building 2,944
Assistance Fund (Fund 032) in excess of the amounts required to 2,945
meet estimated federal arbitrage rebate requirements may be 2,946
transferred at the request of the Ohio School Facilities
Commission by the Director of Budget and Management to the Ohio 2,947
School Facilities Commission Fund (Fund 5E3). Investment 2,948
earnings to the Public School Building Fund (Fund 021) and 2,949
repayments to the Public School Building Fund (Fund 021) made
pursuant to Chapter 3318. of the Revised Code may be tranferred 2,950
at the request of the Ohio School Facilities Commission by the 2,951
Director of Budget and Management to the Ohio School Facilities 2,952
Commission Fund (Fund 5E3).
Lease Rental Payments 2,954
After the transfers described in this section under the 2,956
70
heading, "Operating Expenses" are made, the remaining 2,957
appropriation shall be used by the School Facilities Commission 2,958
to meet all payments at the times required to be made during the 2,960
period from July 1, 1997, to June 30, 1999, to pay bond service 2,961
charges on obligations issued pursuant to Chapter 3318. of the 2,962
Revised Code.
Section 6. Debt Service Appropriations 2,964
General revenue appropriations to the School Facilities 2,966
Commission include $21,780,000 in fiscal year 1998 and 2,967
$36,030,000 in fiscal year 1999 for appropriation item 230-428, 2,969
Lease Rental Payments.
Of the $699,417,200 in fiscal year 1998 and $702,623,028 in 2,971
fiscal year 1999 that is estimated to be transferred from the 2,972
State Lottery Fund to the Lottery Profits Education Fund, up to 2,973
$21,280,000 in fiscal year 1998 and $31,530,000 in fiscal year 2,974
1999 shall first be transferred from the Lottery Profits 2,976
Education Fund to the General Revenue Fund for reimbursement of 2,977
funds spent under appropriation item 230-428, Lease Rental 2,978
Payments. These funds shall then be transferred by the Director 2,979
of Budget and Management to the School Building Program Bond 2,980
Service Fund pursuant to section 3770.06 of the Revised Code. 2,981
Section 7. All items set forth in this section are hereby 2,983
appropriated out of any moneys in the state treasury to the 2,984
credit of the School Building Program Assistance Fund (Fund 032). 2,986
Revenues to the School Building Program Assistance Fund shall 2,987
consist of proceeds of obligations authorized to pay costs of 2,988
capital facilities as defined in section 3318.21 of the Revised 2,989
Code.
Appropriations 2,991
SFC SCHOOL FACILITIES COMMISSION 2,992
CAP-737 School Building Program Assistance $ 300,000,000 2,996
Total School Facilities Commission $ 300,000,000 2,998
School Building Assistance 3,001
Of the foregoing appropriation item CAP-737, School 3,003
71
Building Program Assistance, up to $200,000,000 shall be used by 3,004
the Ohio School Facilities Commission to provide funds to schools 3,005
that receive conditional approval by the Ohio School Facilities 3,007
Commission pursuant to Chapter 3318. of the Revised Code.
Of the foregoing appropriation item CAP-737, School 3,009
Building Program Assistance, up to $50,000,000 shall be used by 3,010
the Ohio School Facilities Commission to administer the Emergency 3,011
School Building Repair Program, pursuant to section 3318.35 of 3,012
the Revised Code.
Of the foregoing appropriation item CAP-737, School 3,014
Building Program Assistance, notwithstanding Chapter 3318. of the 3,015
Revised Code, up to $100,000,000 shall be used by the Ohio School 3,016
Facilities Commission to provide funds to the big eight school 3,017
districts to be used for major renovations and repairs of school 3,020
facilities. Funds shall be allocated to the school districts on 3,021
a per pupil basis, based on fiscal year 1997 total average daily 3,022
membership as defined in section 3317.03 of the Revised Code. To 3,023
be eligible to receive these funds, each school district shall: 3,024
(1) Provide a 100 per cent match from funds that are 3,027
approved by the Ohio School Facilities Commission;
(2) Develop and submit a capital renovations plan for the 3,029
use of state and local funds subject to approval by the Ohio 3,030
School Facilities Commission. 3,031
As used in this section, "big eight school district" means 3,033
a school district that for fiscal year 1997 had a percentage of 3,034
children residing in the district and receiving Aid to Dependent 3,035
Children greater than thirty per cent, as reported pursuant to 3,036
section 3317.10 of the Revised Code, and had an average daily 3,037
membership greater than twelve thousand, as reported pursuant to 3,038
division (A) of section 3317.03 of the Revised Code. 3,040
Section 8. The Treasurer of State is hereby authorized to 3,042
issue and sell, in accordance with the provisions of Section 2i 3,043
of Article VIII, Ohio Constitution, and section 3318.26 of the 3,044
Revised Code, original obligations in an aggregate principal 3,045
72
amount not to exceed $300,000,000 in addition to the original 3,046
issuance of obligations heretofore authorized by prior acts of 3,047
the General Assembly. These authorized obligations shall be 3,048
issued to provide funds appropriated in this act for the School 3,049
Building Program Assistance Fund for the Ohio School Facilities 3,050
Commission to distribute pursuant to Chapter 3318. of the Revised 3,052
Code, the owners or holders of which shall have no right to have 3,053
excises or taxes levied by the General Assembly for the payment 3,054
of principal or interest thereon.
Section 9. The codified and uncodified sections of law 3,056
contained in this act, and the items of law of which the codified 3,058
and uncodified sections of law contained in this act are 3,059
composed, are not subject to the referendum. Therefore, under 3,060
Ohio Constitution, Article II, Section 1d and section 1.471 of 3,061
the Revised Code, the codified and uncodified sections of law 3,062
contained in this act, and the items of law of which the codified 3,063
and uncodified sections of law contained in this act are 3,064
composed, go into immediate effect when this act becomes law. 3,065
Section 10. Section 4115.04 of the Revised Code is 3,067
presented in this act as a composite of the section as amended by 3,068
both Sub. H.B. 167 and Am. Sub. S.B. 162 of the 121st General 3,069
Assembly, with the new language of neither of the acts shown in 3,071
capital letters. This is in recognition of the principle stated 3,072
in division (B) of section 1.52 of the Revised Code that such 3,073
amendments are to be harmonized where not substantively 3,074
irreconcilable and constitutes a legislative finding that such is 3,075
the resulting version in effect prior to the effective date of 3,076
this act.