As Reported by the Senate Finance and 1
Financial Institutions Committee* 2
122nd General Assembly 5
Regular Session Sub. S. B. No. 102 6
1997-1998 7
SENATORS DIX-GILLMOR-B. JOHNSON-BLESSING-CARNES-CUPP- 9
DRAKE-FINAN-GAETH-GARDNER-HORN-KEARNS-LATTA-NEIN- 10
RAY-SCHAFRATH-WHITE-WATTS 11
13
A B I L L
To amend sections 133.06, 3313.372, 3318.01, 15
3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 17
3318.051, 3318.06, 3318.07, 3318.08, 3318.081,
3318.091, 3318.10, 3318.111, 3318.12, 3318.13, 18
3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 19
3318.19, 3318.22, 3318.23, 3318.24, 3318.25, 20
3318.26, 3318.27, 3318.29, and 4115.04 and to
enact sections 3318.041, 3318.082, 3318.30, 21
3318.31, and 3318.35 of the Revised Code to
create the Ohio School Facilities Commission, to 23
transfer responsibility for the Classroom 24
Facilities Assistance Program from the State
Board of Education to the Commission, to make 25
other changes to the Classroom Facilities 26
Assistance Law, to exempt from prevailing wage
law public improvements and construction 27
undertaken by school districts and educational 28
service centers, to change the approval
requirements for certain school districts to 29
receive Classroom Facilities Assistance during
1997, and to make an appropriation. 31
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 33
Section 1. That sections 133.06, 3313.372, 3318.01, 35
2
3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 3318.051, 3318.06, 37
3318.07, 3318.08, 3318.081, 3318.091, 3318.10, 3318.111, 3318.12, 38
3318.13, 3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 3318.19, 39
3318.22, 3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 3318.29, 40
and 4115.04 be amended and sections 3318.041, 3318.082, 3318.30, 42
3318.31, and 3318.35 of the Revised Code be enacted to read as 43
follows:
Sec. 133.06. (A) A school district shall not incur, 52
without a vote of the electors, net indebtedness that exceeds an 53
amount equal to one-tenth of one per cent of its tax valuation 54
except as provided in divisions (G) and (H) of this section and 56
in division (C) of section 3313.372 of the Revised Code. 57
(B) Except as provided in divisions (E) and (F) of this 59
section, a school district shall not incur net indebtedness that 60
exceeds an amount equal to nine per cent of its tax valuation. 61
(C) A school district shall not submit to a vote of the 63
electors the question of the issuance of securities in an amount 64
that will make the district's net indebtedness after the issuance 65
of the securities exceed an amount equal to four per cent of its 66
tax valuation, unless the superintendent of public instruction, 67
acting under policies adopted by the state board of education, 68
and the tax commissioner, acting under written policies of the 69
commissioner, consent to the submission. A request for the 70
consents shall be made at least thirty days prior to the election 71
at which the question is to be submitted except that the 72
superintendent of public instruction and the tax commissioner may 73
waive this thirty-day deadline or grant their consents after the 74
election if the school district shows good cause for such waiver 75
or consent after the election. 76
(D) In calculating the net indebtedness of a school 78
district none of the following shall be considered: 79
(1) Securities issued to acquire school buses and other 81
equipment used in transporting pupils or issued pursuant to 82
division (D) of section 133.10 of the Revised Code; 83
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(2) Securities issued under division (F) of this section, 85
under section 133.301 of the Revised Code, and, to the extent in 86
excess of the limitation stated in division (B) of this section, 87
under division (E) of this section; 88
(3) Indebtedness resulting from the dissolution of a joint 90
vocational school district under section 3311.217 of the Revised 91
Code, evidenced by outstanding securities of that joint 92
vocational school district; 93
(4) Loans, evidenced by any securities, received under 95
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the 96
Revised Code; 97
(5) Debt incurred under section 3313.374 of the Revised 99
Code;
(6) Debt incurred pursuant to division (B)(5) of section 102
3313.37 of the Revised Code to acquire computers and related
hardware.
(E) A school district may become a special needs district 104
as to certain securities as provided in this division (E). 105
(1) A board of education, by resolution, may declare its 107
school district to be a special needs district by determining 108
both of the following: 109
(a) The student population is not being adequately 111
serviced by the existing permanent improvements of the district. 112
(b) The district cannot obtain sufficient funds by the 114
issuance of securities within the limitation of division (B) of 115
this section to provide additional or improved needed permanent 116
improvements in time to meet the needs. 117
(2) The board of education shall certify a copy of that 119
resolution to the superintendent of public instruction with a 120
statistical report showing all of the following: 121
(a) A history of and a projection of the growth of the 123
student population; 124
(b) The history of and a projection of the growth of the 126
tax valuation; 127
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(c) The projected needs; 129
(d) The estimated cost of permanent improvements proposed 131
to meet such projected needs. 132
(3) The superintendent of public instruction shall certify 134
the district as an approved special needs district if the 135
superintendent finds both of the following: 136
(a) The district does not have available sufficient 138
additional funds from state or federal sources to meet the 139
projected needs. 140
(b) The projection of the potential average growth of tax 142
valuation during the next five years, according to the 143
information certified to the superintendent and any other 144
information the superintendent obtains, indicates a likelihood of 145
potential average growth of tax valuation of the district during 146
the next five years of an average of not less than three per cent 147
per year. The findings and certification of the superintendent 148
shall be conclusive. 149
(4) An approved special needs district may incur net 151
indebtedness by the issuance of securities in accordance with the 152
provisions of this chapter in an amount that does not exceed an 153
amount equal to the greater of the following: 154
(a) Nine per cent of the sum of its tax valuation plus an 156
amount that is the product of multiplying that tax valuation by 157
the percentage by which the tax valuation has increased over the 158
tax valuation on the first day of the sixtieth month preceding 159
the month in which its board determines to submit to the electors 160
the question of issuing the proposed securities; 161
(b) Nine per cent of the sum of its tax valuation plus an 163
amount that is the product of multiplying that tax valuation by 164
the percentage, determined by the superintendent of public 165
instruction, by which that tax valuation is projected to increase 166
during the next ten years. 167
(F) A school district may issue securities for emergency 169
purposes, in a principal amount that does not exceed an amount 170
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equal to three per cent of its tax valuation, as provided in this 171
division. 172
(1) A board of education, by resolution, may declare an 174
emergency if it determines both of the following: 175
(a) School buildings or other necessary school facilities 177
in the district have been wholly or partially destroyed, or 178
condemned by a constituted public authority, or that such 179
buildings or facilities are partially constructed, or so 180
constructed or planned as to require additions and improvements 181
to them before the buildings or facilities are usable for their 182
intended purpose, or that corrections to permanent improvements 183
are necessary to remove or prevent health or safety hazards. 184
(b) Existing fiscal and net indebtedness limitations make 186
adequate replacement, additions, or improvements impossible. 187
(2) Upon the declaration of an emergency, the board of 189
education may, by resolution, submit to the electors of the 190
district pursuant to section 133.18 of the Revised Code the 191
question of issuing securities for the purpose of paying the 192
cost, in excess of any insurance or condemnation proceeds 193
received by the district, of permanent improvements to respond to 194
the emergency need. 195
(3) The procedures for the election shall be as provided 197
in section 133.18 of the Revised Code, except that: 198
(a) The form of the ballot shall describe the emergency 200
existing, refer to this division as the authority under which the 201
emergency is declared, and state that the amount of the proposed 202
securities exceeds the limitations prescribed by division (B) of 203
this section; 204
(b) The resolution required by division (B) of section 206
133.18 of the Revised Code shall be certified to the county 207
auditor and the board of elections at least seventy-five days 208
prior to the election; 209
(c) The county auditor shall advise and, not later than 211
sixty-five days before the election, confirm that advice by 212
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certification to, the board of education of the information 213
required by division (C) of section 133.18 of the Revised Code; 214
(d) The board of education shall then certify its 216
resolution and the information required by division (D) of 217
section 133.18 of the Revised Code to the board of elections not 218
less than sixty days prior to the election. 219
(4) Notwithstanding division (B) of section 133.21 of the 221
Revised Code, the first principal payment of securities issued 222
under this division may be set at any date not later than sixty 223
months after the earliest possible principal payment otherwise 224
provided for in that division. 225
(G) The board of education may contract with an architect, 227
professional engineer, or other person experienced in the design 228
and implementation of energy conservation measures for an 229
analysis and recommendations pertaining to installations, 230
modifications of installations, or remodeling that would 231
significantly reduce energy consumption in buildings owned by the 232
district. The report shall include estimates of all costs of 233
such installations, modifications, or remodeling including costs 234
of design, engineering, installation, maintenance, repairs and 235
debt service, and estimates of the amounts by which energy 236
consumption and resultant operational and maintenance costs, as 237
defined by the department of education OHIO SCHOOL FACILITIES 238
COMMISSION, would be reduced. 239
If the board finds after receiving the report that the 241
amount of money the district would spend on such installations, 242
modifications, or remodeling is not likely to exceed the amount 243
of money it would save in energy and resultant operational and 244
maintenance costs over the ensuing ten years, the board may 246
submit to the department of education COMMISSION a copy of its 247
findings and a request for approval to incur indebtedness to 249
finance the making or modification of installations or the
remodeling of buildings for the purpose of significantly reducing 250
energy consumption. 251
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If the department COMMISSION determines that the board's 253
findings are reasonable, it shall approve the board's request. 255
Upon receipt of the department's COMMISSION'S approval, the 256
district may issue securities without a vote of the electors in a 258
principal amount not to exceed nine-tenths of one per cent of its 259
tax valuation for the purpose of making such installations, or 260
modifications, or remodeling, but the total net indebtedness of 261
the district without a vote of the electors incurred under this 262
and all other sections of the Revised Code shall not exceed one 263
per cent of the district's tax valuation. 264
So long as any securities issued under this division (G) 266
remain outstanding, the board of education shall monitor the 267
energy consumption and resultant operational and maintenance 268
costs of buildings in which installations or modifications have 270
been made or remodeling has been done pursuant to this division 271
(G) and shall maintain and annually update a report documenting 272
the reductions in energy consumption and resultant operational 273
and maintenance cost savings attributable to such installations, 274
modifications, or remodeling. The report shall be certified by 275
an architect or engineer independent of any person that provided 276
goods or services to the board in connection with the energy 277
conservation measures that are the subject of the report. The 278
resultant operational and maintenance cost savings shall be 279
certified by the school district treasurer. The report shall be 280
made available to the department of education COMMISSION upon 282
request.
(H) With the consent of the superintendent of public 284
instruction, a school district may incur without a vote of the 285
electors net indebtedness that exceeds the amounts stated in 286
divisions (A) and (G) of this section for the purpose of paying 288
costs of permanent improvements, if and to the extent that both 289
of the following conditions are satisfied: 290
(1) The fiscal officer of the school district estimates 292
that receipts of the school district from compensation derived 293
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from or under agreements entered into pursuant to section 5709.82 294
of the Revised Code, or distributions under division (C) of 295
section 5709.43 of the Revised Code, or any combination thereof, 296
are, after accounting for any appropriate coverage requirements, 297
sufficient in time and amount, and are committed by the 298
proceedings, to pay the debt charges on the securities issued to 299
evidence that indebtedness and payable from those receipts, and 300
the taxing authority of the district confirms the fiscal 301
officer's estimate, which confirmation is approved by the 302
superintendent of public instruction; 303
(2) The fiscal officer of the school district certifies, 305
and the taxing authority of the district confirms, that the 306
district, at the time of the certification and confirmation, 307
reasonably expects to have sufficient revenue available for the 308
purpose of operating such permanent improvements for their 309
intended purpose upon acquisition or completion thereof, and the 310
superintendent of public instruction approves the taxing 311
authority's confirmation. 312
The maximum maturity of securities issued under division 314
(H) of this section shall be the lesser of twenty years or the 315
maximum maturity calculated under section 133.20 of the Revised 316
Code. 317
Sec. 3313.372. (A) As used in this section, "energy 326
conservation measure" means an installation or modification of an 327
installation in, or remodeling of, a building, to reduce energy 328
consumption. It includes: 329
(1) Insulation of the building structure and systems 331
within the building; 332
(2) Storm windows and doors, multiglazed windows and 334
doors, heat absorbing or heat reflective glazed and coated window 335
and door systems, additional glazing, reductions in glass area, 336
and other window and door system modifications that reduce energy 337
consumption; 338
(3) Automatic energy control systems; 340
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(4) Heating, ventilating, or air conditioning system 342
modifications or replacements; 343
(5) Caulking and weatherstripping; 345
(6) Replacement or modification of lighting fixtures to 347
increase the energy efficiency of the system without increasing 348
the overall illumination of a facility, unless such increase in 349
illumination is necessary to conform to the applicable state or 350
local building code for the proposed lighting system; 351
(7) Energy recovery systems; 353
(8) Cogeneration systems that produce steam or forms of 355
energy such as heat, as well as electricity, for use primarily 356
within a building or complex of buildings; 357
(9) Any other modification, installation, or remodeling 359
approved by the department of education OHIO SCHOOL FACILITIES 361
COMMISSION as an energy conservation measure. 362
(B) A board of education of a city, exempted village, 364
local, or joint vocational school district may enter into an 365
installment payment contract for the purchase and installation of 366
energy conservation measures. The provisions of such installment 367
payment contracts dealing with interest charges and financing 368
terms shall not be subject to the competitive bidding 369
requirements of section 3313.46 of the Revised Code, and shall be 370
on the following terms: 371
(1) Not less than one-tenth of the costs thereof shall be 374
paid within two years from the date of purchase. 375
(2) The remaining balance of the costs thereof shall be 377
paid within ten years from the date of purchase. 378
An installment payment contract entered into by a board of 381
education under this section shall require the board to contract 382
in accordance with division (A) of section 3313.46 of the Revised
Code for the installation, modification, or remodeling of energy 384
conservation measures unless division (A) of section 3313.46 of 385
the Revised Code does not apply pursuant to division (B)(3) of 386
that section.
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(C) The board may issue the notes of the school district 388
signed by the president and the treasurer of the board and 389
specifying the terms of the purchase and securing the deferred 390
payments provided in this section, payable at the times provided 391
and bearing interest at a rate not exceeding the rate determined 392
as provided in section 9.95 of the Revised Code. The notes may 393
contain an option for prepayment and shall not be subject to 394
Chapter 133. of the Revised Code. In the resolution authorizing 395
the notes, the board may provide, without the vote of the 396
electors of the district, for annually levying and collecting 397
taxes in amounts sufficient to pay the interest on and retire the 398
notes, except that the total net indebtedness of the district 399
without a vote of the electors incurred under this and all other 400
sections of the Revised Code shall not exceed one per cent of the
district's tax valuation. Revenues derived from local taxes or 402
otherwise, for the purpose of conserving energy or for defraying 403
the current operating expenses of the district, may be applied to 404
the payment of interest and the retirement of such notes. The 405
notes may be sold at private sale or given to the contractor 406
under the installment payment contract authorized by division (B) 407
of this section.
(D) Debt incurred under this section shall not be included 409
in the calculation of the net indebtedness of a school district 410
under section 133.06 of the Revised Code. 411
(E) No school district board shall enter into an 413
installment payment contract under division (B) of this section 414
unless it first obtains a report of the costs of the energy 415
conservation measures and the savings thereof as described under 416
division (G) of section 133.06 of the Revised Code as a 417
requirement for issuing energy securities, makes a finding that 418
the amount spent on such measures is not likely to exceed the 419
amount of money it would save in energy costs and resultant 420
operational and maintenance costs as described in that division, 421
and the department of education OHIO SCHOOL FACILITIES COMMISSION 423
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determines that the district board's findings are reasonable and 424
approves the contract as described in that division. 425
The district board shall monitor the savings and maintain a 427
report of those savings, which shall be available to the 428
department COMMISSION in the same manner as required by division 430
(G) of section 133.06 of the Revised Code in the case of energy 431
securities.
Sec. 3318.01. As used in sections 3318.01 to 3318.20 of 440
the Revised Code: 441
(A) "State board OHIO SCHOOL FACILITIES COMMISSION" means 444
the state board of education COMMISSION created pursuant to 445
Section 4 of Article VI, Ohio Constitution, acting for itself and 447
on behalf of the state department of education, as agencies of 448
state government SECTION 3318.30 OF THE REVISED CODE.
(B) "Classroom facilities" means rooms in which pupils 450
regularly assemble in public school buildings to receive 451
instruction and education and such facilities and building 452
improvements for the operation and use of such rooms as may be 453
needed in order to provide a complete educational program, AND 454
MAY INCLUDE SPACE WITHIN WHICH A CHILD DAY-CARE FACILITY OR A 455
COMMUNITY RESOURCE CENTER IS HOUSED. 456
(C) "Project" means a project to construct or acquire 458
classroom facilities, or to reconstruct or make additions to 460
existent EXISTING classroom facilities, to be used for housing 461
the applicable school district and its functions.
(D) "School district" means a local, exempted village, or 463
city school district as such districts are defined in Chapter 464
3311. of the Revised Code, acting as an agency of state 465
government, performing essential governmental functions of state 466
government pursuant to sections 3318.01 and 3318.20 of the 467
Revised Code.
(E) "School district board" means the board of education 469
of a school district. 470
(F) "Net bonded indebtedness" means the difference between 472
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the SUM OF THE par value of all outstanding and unpaid bonds and 473
notes which a school district board is obligated to pay, together 475
with ANY AMOUNTS THE SCHOOL DISTRICT IS OBLIGATED TO PAY UNDER 476
LEASE-PURCHASE AGREEMENTS ENTERED INTO UNDER SECTION 3313.375 OF 477
THE REVISED CODE, AND the par value of bonds authorized by the 478
electors but not yet issued, the proceeds of which can lawfully 479
be used for the project, and the amount held in the sinking fund 480
and other indebtedness retirement funds for their redemption. 481
Notes issued for school buses in accordance with section 3327.08 482
of the Revised Code, notes issued in anticipation of the 483
collection of current revenues, and bonds issued to pay final 484
judgments shall not be considered in calculating the net bonded 485
indebtedness.
"Net bonded indebtedness" does not include indebtedness 487
arising from the acquisition of land to provide a site for 488
classroom facilities constructed, acquired, or added to pursuant 489
to sections 3318.01 to 3318.20 of the Revised Code. 490
(G) "Board of elections" means the board of elections of 492
the county containing the most populous portion of the school 493
district. 494
(H) "County auditor" means the auditor of the county in 496
which the greatest value of taxable property of such school 497
district is located. 498
(I) "Tax duplicates" means the general tax lists and 500
duplicates prescribed by sections 319.28 and 319.29 of the 501
Revised Code. 502
(J) "Required level of indebtedness" means: 504
(1) In, IN the case of a school district contained in the 507
first quartile of the most recent ranking of school districts
according to adjusted valuation per pupil compiled by the 508
department of education pursuant to section 3318.011 of the 509
Revised Code, five per cent of the total value of all property in 510
the district as listed and assessed for taxation on the tax 511
duplicates. 512
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(2) In the case of a school district contained in the 514
second quartile of such ranking, six per cent of such total value 515
of all property DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE 516
HUNDREDTH PERCENTILES, FIVE PER CENT OF VALUATION PLUS [TWO 518
ONE-HUNDREDTHS OF ONE PER CENT MULTIPLIED BY (THE PERCENTILE IN 520
WHICH THE DISTRICT RANKS MINUS ONE)<.
(3) In the case of all other school districts, seven per 522
cent of such total value of all property. 523
(K) "Required percentage of the basic project costs" 525
means:
(1) In, IN the case of a district contained in the first 528
decile of the most recent ranking of school districts according
to adjusted valuation per pupil compiled by the department of 529
education pursuant to section 3318.011 of the Revised Code, an 530
amount equal to zero; 531
(2) In the case of a district contained in the second 533
decile of such ranking, an amount equal to ten per cent of the 534
basic project costs; 535
(3) In the case of a district contained in the third 537
decile of such ranking, an amount equal to twenty per cent of the 538
basic project costs; 539
(4) In the case of a district contained in the fourth 541
decile of such ranking, an amount equal to thirty per cent of the 542
basic project costs; 543
(5) In the case of a district contained in the fifth 545
decile of such ranking, an amount equal to forty per cent of the 546
basic project costs; 547
(6) In the case of a district contained in the sixth 549
decile of such ranking, an amount equal to fifty per cent of the 550
basic project costs; 551
(7) In the case of a district contained in the seventh 553
decile of such ranking, an amount equal to sixty per cent of the 554
basic project costs; 555
(8) In the case of a district contained in the eighth 557
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decile of such ranking, an amount equal to seventy per cent of 558
the basic project costs; 559
(9) In the case of a district contained in the ninth 561
decile of such ranking, an amount equal to eighty per cent of the 562
basic project costs; 563
(10) In the case of a district contained in the tenth 565
decile of such ranking, an amount equal to ninety per cent of the 566
basic project costs DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE 567
HUNDREDTH PERCENTILES, ONE PER CENT OF THE BASIC PROJECT COSTS 568
TIMES THE PERCENTILE IN WHICH THE DISTRICT RANKS. 569
(L) "Basic project cost" means a cost amount determined in 571
accordance with a written policy RULES adopted UNDER SECTION 573
111.15 OF THE REVISED CODE by the superintendent of public 574
instruction, the director of budget and management, and the 575
director of the legislative budget office of the legislative 576
service commission and agreed to by them OHIO SCHOOL FACILITIES 577
COMMISSION. The basic project cost calculation shall take into 578
consideration the square footage and cost per square foot 579
necessary for the grade levels to be housed in the classroom 580
facilities, the variation across the state in construction and
related costs, THE COST OF THE INSTALLATION OF SITE UTILITIES AND 581
SITE PREPARATION, the cost of insuring the project until it is 582
completed, and the professional planning, administration, and 584
design fees that a district may have to pay to undertake a 585
classroom facilities project.
(M) "CHILD DAY-CARE FACILITY" MEANS SPACE WITHIN A 588
CLASSROOM FACILITY IN WHICH THE NEEDS OF INFANTS, TODDLERS, 589
PRESCHOOL CHILDREN, AND SCHOOL CHILDREN ARE PROVIDED FOR BY 590
PERSONS OTHER THAN THE PARENT OR GUARDIAN OF SUCH CHILDREN FOR 591
ANY PART OF THE DAY, INCLUDING PERSONS NOT EMPLOYED BY THE SCHOOL
DISTRICT OPERATING SUCH CLASSROOM FACILITY. 592
(N) "COMMUNITY RESOURCE CENTER" MEANS SPACE WITHIN A 595
CLASSROOM FACILITY IN WHICH COMPREHENSIVE SERVICES THAT SUPPORT 596
THE NEEDS OF FAMILIES AND CHILDREN ARE PROVIDED BY COMMUNITY 597
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BASED SOCIAL SERVICE PROVIDERS. 598
(O) "VALUATION" MEANS THE TOTAL VALUE OF ALL PROPERTY IN 600
THE DISTRICT AS LISTED AND ASSESSED FOR TAXATION ON THE TAX 601
DUPLICATES.
(P) "PERCENTILE" MEANS THE PERCENTILE IN WHICH THE 603
DISTRICT IS RANKED PURSUANT TO DIVISION (C) OF SECTION 3318.011 604
OF THE REVISED CODE.
(Q) "INSTALLATION OF SITE UTILITIES" MEANS THE 606
INSTALLATION OF A SITE DOMESTIC WATER SYSTEM, SITE FIRE 607
PROTECTION SYSTEM, SITE GAS DISTRIBUTION SYSTEM, SITE SANITARY 608
SYSTEM, SITE STORM DRAINAGE SYSTEM, AND SITE TELEPHONE AND DATA 609
SYSTEM.
(R) "SITE PREPARATION" MEANS THE EARTHWORK NECESSARY FOR 612
PREPARATION OF THE BUILDING FOUNDATION SYSTEM, THE PAVED 613
PEDESTRIAN AND VEHICULAR CIRCULATION SYSTEM, PLAYGROUNDS ON THE 614
PROJECT SITE, AND LAWN AND PLANTING ON THE PROJECT SITE. 615
Sec. 3318.011. For purposes of providing assistance under 624
sections 3318.01 to 3318.20 of the Revised Code, the department 625
of education shall annually do all of the following: 626
(A) Calculate the adjusted valuation per pupil of each 628
city, local, and exempted village school district according to 629
the formula set forth in section 3317.0213 of the Revised Code; 630
(B) Rank all such districts in order of adjusted valuation 632
per pupil from the district with the lowest adjusted valuation 633
per pupil to the district with the highest adjusted valuation per 634
pupil; 635
(C) Divide such ranking into quartiles with the first 637
quartile containing those twenty-five per cent of school 638
districts having the lowest adjusted valuation per pupil and the 639
fourth quartile containing those twenty-five per cent of school 640
districts having the highest adjusted valuation per pupil DIVIDE 641
SUCH RANKING INTO PERCENTILES WITH THE FIRST PERCENTILE 642
CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS HAVING THE LOWEST 643
ADJUSTED VALUATION PER PUPIL AND THE ONE-HUNDREDTH PERCENTILE 644
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CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS HAVING THE 645
HIGHEST ADJUSTED VALUATION PER PUPIL;
(D) Divide such ranking into deciles with the first decile 647
containing those ten per cent of school districts having the 648
lowest adjusted valuation per pupil and the tenth quartile 649
containing those ten per cent of school districts having the 650
highest adjusted valuation per pupil. 651
(E) Determine the school districts that have an adjusted 653
valuation per pupil that is greater than the median adjusted 654
valuation per pupil for all school districts in the state; 655
(E) CERTIFY THE INFORMATION DESCRIBED IN DIVISIONS (A) TO 658
(D) OF THIS SECTION TO THE OHIO SCHOOL FACILITIES COMMISSION. 659
Sec. 3318.02. (A) For purposes of Chapter 3318. SECTIONS 668
3318.01 TO 3318.31 of the Revised Code, the state board of 670
education OHIO SCHOOL FACILITIES COMMISSION shall periodically 671
perform an assessment of the classroom facility needs in the 672
state to identify school districts in need of additional 673
classroom facilities, or replacement or reconstruction of
existent classroom facilities, and the cost to each such district 674
of constructing or acquiring such additional facilities or making 675
such renovations.
(B) Based upon the most recent assessment conducted 677
pursuant to division (A) of this section, the state board of 678
education COMMISSION shall, in ascending order of the most 680
current ranking of school districts under division (B) of section
3318.011 of the Revised Code, conduct on-site visits to school 681
districts identified as having classroom facilities FACILITY 682
needs and to confirm DO BOTH OF THE FOLLOWING: 683
(1) CONFIRM the findings of the periodic assessment and to 686
further evaluate the facilities CLASSROOM FACILITY needs of the 687
district. The evaluation shall assess the district's need to 688
construct or acquire new classroom facilities and may include an 689
assessment of the district's need for building additions or for 690
the reconstruction of existent buildings in lieu of constructing 691
17
or acquiring replacement buildings.
In (2) EVALUATE THE PRACTICABILITY OF THE DISTRICT MEETING 694
ITS CLASSROOM FACILITY NEEDS THROUGH SPLIT SESSIONS, YEAR-ROUND
CLASSES, JOINT USE OF SCHOOL FACILITIES WITH ONE OR MORE OTHER 695
SCHOOL DISTRICTS, AND ANY OTHER MEANS THE COMMISSION CONSIDERS 696
PRACTICABLE FOR THE DISTRICT, AS WELL AS THE POTENTIAL EFFECTS 697
THAT MEETING THE DISTRICT'S FACILITY NEEDS BY SUCH MEANS WOULD 699
HAVE ON THE EDUCATION OF THE STUDENTS AFFECTED. 700
THE FIRST ROUND OF ON-SITE VISITS FIRST SUCCEEDING THE 702
EFFECTIVE DATE OF THIS AMENDMENT SHALL BE LIMITED TO THE SCHOOL 703
DISTRICTS IN THE FIRST THROUGH TWENTY-FIFTH PERCENTILES, 704
EXCLUDING DISTRICTS THAT ARE INELIGIBLE FOR FUNDING UNDER THIS 705
CHAPTER PURSUANT TO SECTION 3318.04 OF THE REVISED CODE. THE 707
SECOND ROUND OF ON-SITE VISITS SHALL BE LIMITED TO THE SCHOOL 708
DISTRICTS IN THE FIRST THROUGH THIRTIETH PERCENTILES, EXCLUDING 709
DISTRICTS THAT ARE INELIGIBLE FOR FUNDING UNDER THIS CHAPTER 710
PURSUANT TO SECTION 3318.04 OF THE REVISED CODE. EACH SUCCEEDING 711
ROUND OF ON-SITE VISITS SHALL BE LIMITED TO THE PERCENTILES 712
INCLUDED IN THE IMMEDIATELY PRECEDING ROUND OF ON-SITE VISITS 713
PLUS THE NEXT FIVE PERCENTILES. EXCEPT FOR THE FIRST ROUND OF 714
ON-SITE VISITS, NO ROUND OF ON-SITE VISITS SHALL COMMENCE UNLESS 715
EIGHTY PER CENT OF THE DISTRICTS FOR WHICH ON-SITE VISITS WERE 716
PERFORMED DURING THE IMMEDIATELY PRECEDING ROUND, HAVE HAD 717
PROJECTS APPROVED UNDER SECTION 3318.04 OF THE REVISED CODE. 719
(C) NOTWITHSTANDING DIVISION (B) OF THIS SECTION, IN any 723
biennium, the state board COMMISSION may limit the number of 724
districts for which it conducts on-site visits based upon its 725
projections of the moneys available and moneys necessary to 726
undertake projects under this chapter SECTIONS 3318.01 TO 3318.31 727
OF THE REVISED CODE for the current biennium. 728
Sec. 3318.03. Upon conducting the on-site evaluation under 737
section 3318.02 of the Revised Code, the department of education 738
OHIO SCHOOL FACILITIES COMMISSION shall make a determination of 740
THE PRACTICABILITY OF MEETING THE DISTRICT'S CLASSROOM FACILITY 741
18
NEEDS AS INDICATED IN DIVISION (B)(2) OF SECTION 3318.02 OF THE 742
REVISED CODE; the needs of the school district for additional
classroom facilities; the number of classroom facilities to be 744
included in a project and the basic project cost of constructing, 745
acquiring, reconstructing, or making additions to each such 746
facility; IF THE SCHOOL DISTRICT IS RANKED IN THE ELEVENTH
THROUGH ONE-HUNDREDTH PERCENTILES, the amount of such cost that 747
the school district can supply from available funds, by the 750
issuance of bonds previously authorized by the electors of the 751
school district the proceeds of which can lawfully be used for 752
the project, and by the issuance of bonds under section 3318.05 753
of the Revised Code; and the remaining amount of such cost that 754
shall be supplied by the state. The state board COMMISSION shall 755
make a favorable determination IN FAVOR OF CONSTRUCTING, 756
ACQUIRING, RECONSTRUCTING, OR MAKING ADDITIONS TO A CLASSROOM 757
FACILITY only upon evidence that the proposed project conforms to 759
sound educational practice, that it is in keeping with the 760
orderly process of school district reorganization and 761
consolidation, and that the actual or projected enrollment in 762
each classroom facility proposed to be included in the project is 764
at least three hundred fifty pupils. Exceptions shall be
authorized only in those districts where topography, sparcity of 766
population, and other factors make larger schools impracticable. 767
Sections 125.81 and 153.04 of the Revised Code shall not 769
apply to classroom facilities constructed under sections 3318.01 770
to 3318.20 of the Revised Code. 771
Sec. 3318.04. If the state board of education OHIO SCHOOL 781
FACILITIES COMMISSION makes a determination under section 3318.03 782
of the Revised Code in favor of the proposed project 783
CONSTRUCTING, ACQUIRING, RECONSTRUCTING, OR MAKING ADDITIONS TO A 784
CLASSROOM FACILITY, the project shall be conditionally approved 785
and the state board COMMISSION thereupon shall reserve and 786
encumber from the total funds appropriated for the purpose of 788
sections 3318.01 to 3318.20 of the Revised Code, the estimated 789
19
amount of the state's portion of the basic project cost. Such 790
conditional approval shall be submitted to the controlling board 791
for approval thereof. The controlling board shall forthwith 792
approve or reject the state board's COMMISSION'S determination, 793
conditional approval, and the estimated amount of the state's 795
portion of the basic project cost. In the event of approval 796
thereof by the controlling board, the superintendent of public 797
instruction COMMISSION shall certify such conditional approval to 799
the school district board.
THE BASIC PROJECT COST FOR A PROJECT APPROVED UNDER THIS 802
SECTION SHALL NOT EXCEED THE COST THAT WOULD OTHERWISE HAVE TO BE
INCURRED IF THE CLASSROOM FACILITIES TO BE CONSTRUCTED, ACQUIRED, 803
OR RECONSTRUCTED, OR THE ADDITIONS TO BE MADE TO CLASSROOM 804
FACILITIES, UNDER SUCH PROJECT MEET, BUT DO NOT EXCEED, THE 805
SPECIFICATIONS OF STANDARD BUILDING DESIGNS THAT SHALL BE ADOPTED 806
BY THE COMMISSION. NO SCHOOL DISTRICT GIVEN CONDITIONAL APPROVAL 807
FOR A PROJECT UNDER THIS SECTION, AND WHICH IS RANKED IN THE 808
FIRST THROUGH TENTH PERCENTILES, SHALL BE REQUIRED TO PAY ANY 809
PORTION OF THE BASIC PROJECT COST. 810
From and after the date of such ANY certification OF 812
CONDITIONAL APPROVAL, no bonds or notes shall be issued by a 814
school district board without the approval of the state board 815
COMMISSION for the purpose of acquiring classroom facilities so 817
long as the state board's COMMISSION'S conditional approval of 819
such school district's project remains in effect.
NO SCHOOL DISTRICT THAT HAS PREVIOUSLY RECEIVED FUNDING 821
UNDER ANY VERSION OF SECTIONS 3318.01 TO 3318.20 OF THE REVISED 823
CODE SHALL HAVE A PROJECT CONDITIONALLY APPROVED PURSUANT TO THIS 824
SECTION FOR A PERIOD OF TEN YEARS AFTER THE DATE UPON WHICH THE 825
ELECTORS OF SUCH DISTRICT APPROVED A LEVY PURSUANT TO ANY VERSION 826
OF SECTION 3318.06 OF THE REVISED CODE. 827
Sec. 3318.041. A SCHOOL DISTRICT RANKED IN THE FIRST 829
THROUGH TWENTY-FIFTH PERCENTILES MAY ADOPT AND CERTIFY TO THE 830
OHIO SCHOOL FACILITIES COMMISSION A RESOLUTION SPECIFYING A 831
20
PROPOSED PROJECT THAT MEETS THE REQUIREMENTS OF THIS CHAPTER AND 832
THE NEEDS OF THE DISTRICT, AS CONFIRMED THROUGH AN ON-SITE VISIT 833
PURSUANT TO SECTION 3318.02 OF THE REVISED CODE. THE COMMISSION
SHALL CONSIDER SUCH PROJECTS FOR CONDITIONAL APPROVAL PURSUANT TO 834
SECTION 3318.03 AND SHALL ENCUMBER FUNDS PURSUANT TO SECTION 835
3318.04 OF THE REVISED CODE IN THE ORDER IN WHICH SUCH 836
RESOLUTIONS ARE RECEIVED.
Sec. 3318.05. The conditional approval of the state board 845
of education OHIO SCHOOL FACILITIES COMMISSION FOR A PROJECT OF A 847
SCHOOL DISTRICT RANKED IN THE FIRST THROUGH TENTH PERCENTILES
SHALL LAPSE AND THE AMOUNT RESERVED AND ENCUMBERED FOR SUCH 848
PROJECT SHALL BE RELEASED UNLESS THE SCHOOL DISTRICT BOARD 849
ACCEPTS SUCH CONDITIONAL APPROVAL WITHIN ONE HUNDRED TWENTY DAYS 850
OF THE DATE OF CERTIFICATION OF THE CONDITIONAL APPROVAL TO THE 851
SCHOOL DISTRICT BOARD AND THE ELECTORS OF THE SCHOOL DISTRICT
VOTE FAVORABLY ON THE PROPOSITION DESCRIBED IN DIVISION (B) OF 852
THIS SECTION WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. 853
THE CONDITIONAL APPROVAL OF THE OHIO SCHOOL FACILITIES COMMISSION 854
for a project OF A SCHOOL DISTRICT RANKED IN THE ELEVENTH THROUGH 855
ONE HUNDREDTH PERCENTILES shall lapse and the amount reserved and 857
encumbered for such project shall be released unless, THE SCHOOL 858
DISTRICT BOARD ACCEPTS SUCH CONDITIONAL APPROVAL within one
hundred twenty days following the date of certification of the 860
conditional approval to the school district board or such other 861
time as may be fixed by the state board for good cause shown, the 862
school district board accepts such conditional approval and the 863
electors of the school district vote favorably on both of the 864
propositions described in divisions (A) and (B) of this section, 865
which WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. THE 866
propositions DESCRIBED IN DIVISIONS (A) AND (B) OF THIS SECTION 867
shall be combined in a single proposal. The state board of 868
education may reconsider and reprioritize a school district's 869
project if IF the district board or the district's electors fail 870
to meet such requirements AND THE AMOUNT RESERVED AND ENCUMBERED 871
21
FOR THE DISTRICT'S PROJECT IS RELEASED, THE DISTRICT SHALL BE 872
GIVEN FIRST PRIORITY FOR PROJECT FUNDING AS SUCH FUNDS BECOME 873
AVAILABLE.
(A) On the question of issuing bonds of the school 875
district board, for the school district's portion of the basic 876
project cost, in either whatever amount may be necessary to raise 877
the net bonded indebtedness of the school district to within five 878
thousand dollars of the required level of indebtedness calculated 879
for the year preceding the year in which the resolution declaring 880
the necessity of the election is adopted or an amount equal to 881
the required percentage of the basic project costs, whichever is 882
greater; provided, that such question need not be submitted if at 883
the time of the passage of such resolution the net bonded 884
indebtedness of the school district (1) aggregates ninety-five 885
per cent or more of the required level of indebtedness, or (2) is 886
within twenty thousand dollars of such level and the required 887
percentage of the basic project costs is not greater than either 888
the amount necessary to raise the net bonded indebtedness of the 889
school district to within five thousand dollars of the required 890
level of indebtedness or twenty thousand dollars; and 891
(B) On the question of levying a tax the proceeds of which 894
shall be used to pay the cost of maintaining the classroom 895
facilities included in the project, except that in any year the
district's adjusted valuation per pupil is greater than the 896
state-wide median adjusted valuation per pupil one-half of the 897
proceeds of the tax shall be used for such maintenance and 898
one-half of such proceeds shall be used to pay the cost of the 899
purchase of the classroom facilities from the state under the 900
provisions of sections 3318.01 to 3318.20 of the Revised Code. 901
Such tax shall be at the rate of one-half mill for each dollar of 902
valuation except that in those years in which the state 903
superintendent of public instruction OHIO SCHOOL FACILITIES 904
COMMISSION, pursuant to section 3318.051 of the Revised Code, 906
requires the district to increase the tax rate to an amount 907
22
greater than one-half mill, but not in excess of four mills, 908
until the purchase price is paid but in no case longer than 909
twenty-three years. Proceeds of the tax to be used for
maintenance of the classroom facilities shall be deposited into a 910
separate fund established by the school district for such 911
purpose.
Sec. 3318.051. (A) The purpose of this section is to 920
ensure that no school district that constructs, acquires, 921
reconstructs, or makes additions to classroom facilities pursuant 922
to sections 3318.01 to 3318.20 of the Revised Code increases its 923
tax rate for debt service solely to avoid making payments as 924
described in division (B) of section 3318.05 of the Revised Code 925
in excess of one-half mill.
In furtherance of this public policy, the state 927
superintendent of public instruction OHIO SCHOOL FACILITIES 928
COMMISSION annually shall review the tax budget of each such 929
school district and such additional information as the state 930
superintendent COMMISSION may require from the school district 931
and make a determination as to whether the district's tax rate 933
for debt service, excluding the amount of debt service paid for 934
such classroom facilities under sections 3318.01 to 3318.20 of 936
the Revised Code, is reasonably necessary for the retirement of 937
the school district's bonded indebtedness. If the state 938
superintendent COMMISSION determines that the tax rate for debt 940
service excluding the amount paid for the construction, 941
acquisition, reconstruction, or additions to of classroom 942
facilities under such sections is not reasonably necessary for 943
the retirement of the district's bonded indebtedness, the state 944
superintendent COMMISSION may require the district to increase 945
its tax rate for the payments described under division (B) of 947
section 3318.05 of the Revised Code to an amount greater than
one-half mill, but not exceeding four mills. In determining the 948
tax rate necessary for the retirement of a school district's 949
bonded indebtedness, the state superintendent COMMISSION, in 950
23
accordance with the guidelines established pursuant to division 952
(B) of this section, may disregard that portion of the tax rate 953
to retire bonded indebtedness issued after the effective date of 954
that district's agreement to construct, acquire, reconstruct, or 956
make additions to classroom facilities under sections 3318.01 to 957
3318.20 of the Revised Code.
(B) The state superintendent COMMISSION shall establish 959
guidelines to conduct the review described in division (A) of 961
this section. In reviewing the tax budget of a school district 962
and determining the tax rate for the payments described under 963
division (B) of section 3318.05 of the Revised Code, the state 964
superintendent COMMISSION shall exempt any debt service payments 966
required for constructing, acquiring, reconstructing, or adding 967
to classroom facilities under sections 3318.01 to 3318.20 of the 968
Revised Code and may exempt debt service payments required for 969
any other purpose.
(C) For the period that payments under division (B) of 971
section 3318.05 of the Revised Code are required, each school 972
district shall annually submit a copy of its tax budget to the 973
state superintendent COMMISSION within five working days of its 975
adoption pursuant to section 5705.28 of the Revised Code. The 976
state superintendent COMMISSION shall make a determination in 978
accordance with this section within thirty days of the date upon 979
which a school district submits its tax budget.
(D) If a county budget commission considers it necessary 981
to modify any tax rate for debt service contained in the tax 982
budget of a school district constructing, acquiring, 983
reconstructing, or adding to classroom facilities from the state 985
pursuant to sections 3318.01 to 3318.20 of the Revised Code due 986
to a change in the district's tax duplicates or the issuance by 987
the district of new bonded indebtedness, the state superintendent 988
OHIO SCHOOL FACILITIES COMMISSION may review these changes in 989
accordance with division (B) of this section for the purpose of 990
reducing the district's tax rate for the payments described in 991
24
division (B) of section 3318.05 of the Revised Code, provided 992
such rate shall not be less than one-half mill. 993
Sec. 3318.06. After receipt of the conditional approval of 1,002
the state board of education OHIO SCHOOL FACILITIES COMMISSION, 1,004
the school district board by a majority of all of its members 1,005
shall, if it desires to proceed with the project, declare all of 1,006
the following by resolution:
(A) That IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH 1,008
ONE HUNDREDTH PERCENTILES, THAT with a net bonded indebtedness of 1,009
within five thousand dollars of the required level of 1,010
indebtedness or by issuing bonds in an amount equal to the 1,011
required percentage of the project costs, the district is unable 1,012
to provide adequate classroom facilities without assistance from 1,013
the state;
(B) That to qualify for such state assistance it is 1,015
necessary to levy a tax outside the ten-mill limitation the 1,016
proceeds of which shall be used to pay the cost of maintaining 1,018
the classroom facilities included in the project, except that in
any year the district's adjusted valuation per pupil is greater 1,019
than the state-wide median adjusted valuation per pupil one-half 1,020
of the proceeds of the tax shall be used for such maintenance and 1,021
one-half of such proceeds shall be used to pay the cost of the 1,022
purchase of the classroom facilities from the state; 1,023
(C) That the question of such tax levy shall be submitted 1,025
to the electors of the school district at the next general or 1,026
primary election, if there be a general or primary election not 1,027
less than seventy-five and not more than ninety-five days after 1,028
the day of the adoption of such resolution or, if not, at a 1,029
special election to be held at a time specified in the resolution 1,030
which shall be not less than seventy-five days after the day of 1,031
the adoption of the resolution and which shall be in accordance 1,032
with the requirements of section 3501.01 of the Revised Code. 1,033
Such resolution shall also state, if such be the case, that 1,035
the question of issuing bonds of the board shall be combined in a 1,036
25
single proposal with the question of such tax levy. More than 1,037
one election under this section may be held in any one calendar 1,038
year. Such resolution shall specify both of the following: 1,039
(1) That the rate which it is necessary to levy shall be 1,041
at the rate of one-half mill for each one dollar of valuation 1,042
except that in those years in which the state superintendent of 1,043
public instruction COMMISSION, pursuant to section 3318.051 of 1,045
the Revised Code, requires the district to increase the tax rate
to an amount greater than one-half mill, but not in excess of 1,046
four mills, and that such tax shall be levied until the purchase 1,047
price is paid but in no case longer than twenty-three years; 1,048
(2) That the proceeds of the tax shall be used to pay the 1,050
cost of maintaining the classroom facilities included in the 1,051
project, except in any year the district's adjusted valuation per 1,052
pupil is greater than the statewide median adjusted valuation per 1,053
pupil one-half of the proceeds of the tax shall be used for such 1,054
maintenance and one-half of the proceeds of the tax shall be used 1,055
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. 1,056
A copy of such resolution shall after its passage and not 1,058
less than seventy-five days prior to the date set therein for the 1,059
election be certified to the county board of elections. 1,060
If the question of issuing bonds of the board is to be 1,062
combined with the question of levying the tax, the resolution of 1,063
the school district board, in addition to meeting other 1,064
applicable requirements of section 133.18 of the Revised Code, 1,065
shall state that the amount of bonds to be issued will be either 1,066
whatever amount may be necessary to raise the net bonded 1,067
indebtedness of the school district to within five thousand 1,068
dollars of the required level of indebtedness calculated for the 1,069
year preceding the year in which such resolution is adopted or an 1,070
amount equal to the required percentage of the basic project 1,071
costs, whichever is greater and state that the maximum maturity 1,072
of the bonds which, notwithstanding section 133.20 of the Revised 1,073
26
Code, may be any number of years not exceeding twenty-three as 1,074
determined by the board. In estimating the amount of bonds to be 1,075
issued, the board shall take into consideration the amount of 1,076
moneys then in the bond retirement fund and the amount of moneys 1,077
to be collected for and disbursed from the bond retirement fund 1,078
during the remainder of the year in which the resolution of 1,079
necessity is adopted.
Notice of the election shall include the fact that the tax 1,081
levy shall be at the rate of one-half mill for each one dollar of 1,082
valuation except that in those years in which the superintendent 1,083
COMMISSION, pursuant to section 3318.051 of the Revised Code, 1,085
requires the district to increase the tax rate to an amount 1,086
greater than one-half mill, but not in excess of four mills, that 1,088
the levy shall be made until the purchase price is paid but in no 1,089
case longer than twenty-three years, and that the proceeds of the 1,090
tax shall be used to pay the cost of maintaining the classroom 1,091
facilities included in the project, except in any year the 1,092
district's adjusted valuation per pupil is greater than the
statewide median adjusted valuation per pupil one-half of the 1,093
proceeds of the tax shall be used for such maintenance and 1,094
one-half of the proceeds of the tax shall be used to pay the cost 1,095
of the purchase of the classroom facilities from the state under 1,096
sections 3318.01 to 3318.20 of the Revised Code.
The form of the ballot to be used at such election shall 1,098
be: 1,099
"A majority affirmative vote is necessary for passage. 1,101
Shall bonds be issued by the Board of Education of the 1,103
............ (here insert name of school district) for the 1,104
purpose of ............ (here insert purpose of bond issue) in 1,105
either an amount sufficient to raise the net indebtedness of the 1,106
school district to within five thousand dollars of ............ 1,107
(here insert five, six, or seven per cent depending on the 1,108
district's required level of indebtedness) of the total value of 1,109
all property in the school district as listed and assessed for 1,110
27
taxation on the tax duplicate for the year ............ (here 1,111
insert the year preceding the year in which the resolution 1,112
declaring the necessity of the election was adopted) or an amount 1,114
equal to ............ (here insert the required percentage of the 1,115
basic project costs), whichever is greater, and a levy of taxes 1,116
be made outside of the ten-mill limitation for a maximum period 1,117
of ............ (here insert longest maturity) years to pay the 1,118
principal and interest of such bonds, the amount of such bonds 1,119
being estimated to be ............ (here insert estimated amount 1,120
of bond issue) for which the levy of taxes is estimated by the 1,121
county auditor to average ............ (here insert number of 1,122
mills) mills for each one dollar of valuation, which amounts to 1,123
............ (here insert rate expressed in dollars and cents) 1,124
for each one hundred dollars of valuation?" 1,125
and 1,127
"Shall an additional levy of taxes be made for the benefit 1,129
of the ............ (name of school district), the proceeds of 1,130
which shall be used to pay the cost of maintaining the classroom 1,132
facilities included in the project, except that in any year the 1,133
district's adjusted valuation per pupil is greater than the
state-wide median adjusted valuation per pupil one-half of the 1,134
proceeds of the tax shall be used for such maintenance and 1,135
one-half of such proceeds shall be used to pay the cost of the 1,136
purchase of classroom facilities from the state, at the rate of 1,137
one-half mill for each one dollar of valuation except that in 1,138
those years in which the state superintendent of public 1,139
instruction OHIO SCHOOL FACILITIES COMMISSION, pursuant to 1,140
section 3318.051 of the Revised Code, requires the district to 1,141
increase the tax rate to an amount greater than one-half mill, 1,142
but not in excess of four mills, until the purchase price is paid 1,143
but in no case longer than twenty-three years? 1,144
28
_______________________________________________ 1,146
FOR THE BOND ISSUE AND TAX LEVY 1,147
_______________________________________________ 1,148
AGAINST THE BOND ISSUE AND TAX LEVY 1,149
_______________________________________________ " 1,150
Where it is not necessary to include the question of 1,153
issuing bonds of the school district board with the question of 1,154
levying the tax, the first paragraph of the foregoing ballot form 1,155
shall be omitted and the question to be voted on shall be "For 1,156
the Tax Levy" and "Against the Tax Levy." 1,157
(D) If it is necessary for the school district to acquire 1,159
a site for the classroom facilities to be acquired pursuant to 1,160
sections 3318.01 to 3318.20 of the Revised Code, the district 1,161
board may propose either to issue bonds of the board or to levy a 1,162
tax to pay for the acquisition of such site, and may combine the 1,163
question of doing so with the questions specified in division (C)
of this section. Bonds issued under this division for the 1,164
purpose of acquiring a site are a general obligation of the 1,165
school district and are Chapter 133. securities. 1,166
The form of that portion of the ballot to include the 1,168
question of either issuing bonds or levying a tax for site 1,169
acquisition purposes shall be one of the following: 1,170
(1) "Shall bonds be issued by the board of education of 1,172
the ......... (name of the school district) for the purpose of 1,173
.......... (purpose of the bond issue, which shall be for the 1,174
purpose of acquiring a site for classroom facilities) in the 1,175
principal amount of ........ (principal amount of the bond
issue), to be repaid annually over a maximum period of ......... 1,176
(maximum number of years over which the principal of the bonds 1,177
may be paid) years, and an annual levy of property taxes be made 1,178
outside the ten-mill limitation, estimated by the county auditor 1,179
to average over the repayment period of the bond issue ....... 1,180
(number of mills) mills for each one dollar of tax valuation, 1,181
which amount to ....... (rate expressed in dollars and cents) for
29
each one hundred dollars of valuation?" 1,182
(2) "Shall an additional levy of taxes be made for the 1,184
benefit of the ......... (name of the school district) ......... 1,185
for the purpose ......... (purpose of the levy, which shall be 1,186
for the purpose of acquiring a site for classroom facilities) in 1,187
the sum of ......... (annual amount the levy is to produce) and a 1,188
levy of taxes to be made outside of the ten-mill limitation 1,189
estimated by the county auditor to average ........ (number of 1,190
mills) mills for each one hundred dollars of valuation, for a
period of ......... (number of years the millage is to be 1,191
imposed) years?"
Where it is necessary to combine the question of issuing 1,193
bonds of the school district and levying a tax as described in 1,194
division (C) of this section with the question of issuing bonds 1,195
of the school district for acquisition of a site, the question 1,196
specified in division (C) of this section to be voted on shall be 1,197
"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 1,198
include the question of issuing bonds as described in division 1,199
(C) of this section, the question specified in that division to 1,200
be voted on shall be "For the Bond Issue and the Tax Levy" and 1,201
"Against the Bond Issue and the Tax Levy."
Where it is necessary to combine the question of issuing 1,203
bonds of the school district and levying a tax as described in 1,204
division (C) of this section with the question of levying a tax 1,205
for the acquisition of a site, the question specified in division 1,206
(C) of this section to be voted on shall be "For the Bond Issue 1,207
and the Tax Levies" and "Against the Bond Issue and the Tax
Levies." In the event it is not necessary to include the 1,208
question of issuing bonds as described in division (C) of this 1,209
section, the question specified in that division to be voted on 1,210
shall be "For the Tax Levies" and "Against the Tax Levies." 1,211
If a majority of those voting upon a proposition hereunder 1,213
which includes the question of issuing bonds vote in favor 1,214
30
thereof, and if the agreement provided for by section 3318.08 of 1,215
the Revised Code has been entered into, the school district board 1,216
may proceed under Chapter 133. of the Revised Code, with the 1,217
issuance of bonds or bond anticipation notes in accordance with 1,218
the terms of the agreement. 1,219
Sec. 3318.07. The board of elections shall certify the 1,228
result of the election to the tax commissioner, to the auditor of 1,229
the county or counties in which the school district is located, 1,230
to the treasurer of the school district board, and to the state 1,231
board of education OHIO SCHOOL FACILITIES COMMISSION. The 1,232
necessary tax levy for debt service on the bonds shall be 1,233
included in the annual tax budget that is certified to the county 1,234
budget commission.
Sec. 3318.08. If the requisite favorable vote on the 1,243
election is obtained, the state board of education OHIO SCHOOL 1,245
FACILITIES COMMISSION, upon certification of the results of the 1,246
election to it, shall enter into a written agreement with the 1,247
school district board for the construction and sale of the 1,248
project, which agreement shall include, but need not be limited 1,249
to, the following provisions:
(A) The IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH 1,251
ONE HUNDREDTH PERCENTILES, THE sale and issuance of bonds or 1,252
notes in anticipation thereof, as soon as practicable after the 1,253
execution of the agreement, in either an amount which will raise 1,254
the net bonded indebtedness of the school district, as of the 1,255
date of the resolution authorizing the issuance of such bonds or 1,256
notes, to within five thousand dollars of the required level of 1,257
indebtedness calculated for the year preceding the year in which 1,258
the resolution declaring the necessity of the election was 1,260
adopted or an amount equal to the required percentage of the 1,261
basic project costs, whichever is greater; provided, that if at 1,262
that time the county treasurer of each county in which the school 1,263
district is located has not commenced the collection of taxes on 1,264
the general duplicate of real and public utility property for 1,265
31
such year, the school district board shall authorize the issuance 1,266
of a first installment of bond anticipation notes in an amount 1,267
specified by the agreement, which amount shall not exceed an 1,268
amount necessary to raise the net bonded indebtedness of the 1,269
school district as to the date of such authorizing resolution to 1,270
within five thousand dollars of the required level of 1,271
indebtedness for the preceding year. In the event that a first 1,272
installment of bond anticipation notes is issued, the school 1,273
district board shall, as soon as practicable after the county 1,274
treasurer of each county in which the school district is located 1,275
has commenced the collection of taxes on the general duplicate of 1,276
real and public utility property for the year in which the 1,277
resolution declaring the necessity of the election was adopted, 1,278
authorize the issuance of a second and final installment of bond 1,279
anticipation notes or a first and final issue of bonds. The 1,280
combined value of the first and second installment of bond 1,281
anticipation notes or the value of the first and final issue of 1,282
bonds shall be equal to either an amount which will raise the net 1,283
indebtedness of the school district as of the date of such 1,284
authorizing resolution to within five thousand dollars of the 1,285
required level of indebtedness, or an amount equal to the 1,286
required percentage of the project costs, whichever is greater. 1,287
The proceeds of any such bonds shall be used first to retire any 1,288
bond anticipation notes. Otherwise, the proceeds of such bonds 1,289
and of any bond anticipation notes, except the premium and 1,290
accrued interest thereon, shall be deposited in the school
district's project construction fund. In determining the amount 1,291
of net indebtedness for the purpose of fixing the amount of an 1,292
issue of either bonds or bond anticipation notes, gross 1,293
indebtedness shall be reduced by moneys in the bond retirement 1,294
fund only to the extent of the moneys therein on the first day of 1,295
the year preceding the year in which the resolution authorizing 1,296
such bonds or notes is adopted. Should there be a decrease in 1,298
the tax valuation of the school district so that the amount of 1,299
32
indebtedness which can be incurred on the tax duplicates for the 1,300
year in which the resolution declaring the necessity of the 1,301
election was adopted is less than the amount of the first 1,302
installment of bond anticipation notes, there shall be paid from 1,303
the school district's project construction account to the school 1,304
district's bond retirement fund to be applied against such notes 1,305
an amount sufficient to cause the net indebtedness of the school 1,306
district, as of the first day of the year following the year in 1,307
which the resolution declaring the necessity of the election was 1,308
adopted, to be within five thousand dollars of the required level 1,309
of indebtedness for the year in which that resolution was 1,310
adopted. The maximum amount of indebtedness to be incurred by 1,311
any school district board as its share of the cost of the project 1,312
is either an amount which will cause its net indebtedness, as of 1,313
the first day of the year following the year in which the 1,314
resolution declaring the necessity of the bond issue was adopted, 1,315
to be within five thousand dollars of the required level of 1,316
indebtedness calculated for the year preceding the year in which 1,317
that resolution was adopted or an amount equal to the required 1,319
percentage of the basic project costs, whichever is greater. All 1,320
bonds and bond anticipation notes shall be issued in accordance 1,321
with Chapter 133. of the Revised Code, and notes may be renewed 1,322
as provided in section 133.22 of the Revised Code. 1,323
(B) The transfer of such funds of the school district 1,325
board available for the project, together with the proceeds of 1,326
the sale of the bonds or notes, except premium, accrued interest, 1,327
and interest included in the amount of the issue, to the school 1,328
district's project construction account in the school district's 1,329
depository; 1,330
(C) The levy of the tax authorized at the election for the 1,332
payment of maintenance costs or the cost of purchasing the 1,334
classroom facilities;
(D) Ownership of the project during the period of 1,336
construction, which shall be divided between the state COMMISSION 1,338
33
and the school district board in proportion to their respective 1,339
contributions to the school district's project construction 1,340
account; 1,341
(E) The transfer of the state's interest in the project to 1,343
the school district upon completion of the project; 1,344
(F) The insurance of the project by the school district 1,346
from the time there is an insurable interest therein and so long 1,347
as any part of the purchase price remains unpaid, in such amounts 1,348
and against such risks as the state board COMMISSION shall 1,349
require; provided, that the cost of any required insurance until 1,351
the project is completed shall be a part of the basic project 1,352
cost;
(G) The certification by the director of budget and 1,354
management that funds are available and have been set aside to 1,355
meet the state's share of the basic project cost as approved by 1,357
the controlling board pursuant to section 3318.04 of the Revised 1,358
Code, such certification to consider any necessary revision of 1,359
the state's share by the superintendent of public instruction 1,360
required by changes in the school district's ability to provide 1,361
more or less local funds than was estimated at the time of the 1,362
conditional approval under section 3318.04 of the Revised Code; 1,363
(H) Authorization of the school district board to 1,365
advertise for and receive construction bids for the project, for 1,366
and on behalf of the state board COMMISSION, and to award 1,367
contracts in the name of the state subject to approval by the 1,369
superintendent of public instruction COMMISSION; 1,370
(I) Provisions for the disbursement of moneys from the 1,372
school district's project account upon issuance by the 1,373
superintendent of public instruction COMMISSION of vouchers for 1,374
work done to be certified to the superintendent COMMISSION by the 1,376
treasurer of the school district board; 1,378
(J) Disposal of any balance left in the school district's 1,380
project construction account upon completion of the project; 1,381
(K) Prohibition against alienation of any interest in the 1,383
34
project by the school district board or its successor in interest 1,384
without the consent of the state board COMMISSION so long as any 1,385
part of the purchase price of the project remains unpaid, but in 1,387
no case longer than twenty-three years; 1,388
(L) Limitations upon use of the project or any part of it 1,390
so long as any part of the purchase price of the project remains 1,391
unpaid, but in no case longer than twenty-three years; 1,392
(M) Suspension of the power to issue bonds or notes by the 1,394
school district board for permanent improvements without the 1,395
prior consent of the state board COMMISSION for so long as any 1,396
part of the purchase price of the project remains unpaid, but in 1,398
no case longer than twenty-three years; 1,399
(N) Provision for vesting absolute interest in the project 1,401
in the school district board when the purchase price has been 1,402
paid or at the expiration of the period of twenty-three years; 1,403
(O) Provision for deposit of an executed copy of the 1,405
agreement in the office of the state board COMMISSION and the 1,406
office of the county recorder of the county or counties in which 1,408
the project is situated; 1,409
(P) Provision for termination of the contract and release 1,411
of the funds encumbered at the time of the conditional approval, 1,412
if the proceeds of the sale of the bonds of the school district 1,413
board are not paid into the school district's project 1,414
construction account and if bids for the construction of the 1,415
project have not been taken within such period after the 1,416
execution of the agreement as may be fixed by the state board 1,417
COMMISSION; 1,418
(Q) PROVISION FOR THE SCHOOL DISTRICT TO MAINTAIN THE 1,420
PROJECT IN ACCORDANCE WITH A PLAN APPROVED BY THE COMMISSION; 1,421
(R) PROVISION THAT ALL STATE FUNDS RESERVED AND ENCUMBERED 1,424
TO PAY THE STATE SHARE OF THE COST OF THE PROJECT PURSUANT TO 1,425
SECTION 3318.03 OF THE REVISED CODE BE SPENT ON THE CONSTRUCTION 1,427
OR ACQUISITION OF THE PROJECT PRIOR TO THE EXPENDITURE OF ANY 1,428
FUNDS PROVIDED BY THE SCHOOL DISTRICT TO PAY FOR ITS SHARE OF THE 1,429
35
PROJECT COST.
Sec. 3318.081. If the board of education of a school 1,438
district authorized to impose a tax pursuant to section 3318.06 1,439
of the Revised Code determines that taxable value of property 1,440
subject to the tax has increased to the extent it will not be 1,441
necessary to impose such tax for twenty-three years in order to 1,442
pay the purchase price, it may request the county auditor to 1,443
determine the amount of the purchase price remaining to be paid 1,444
and the estimated rate of taxation required each year to repay 1,445
such remainder in equal installments over the maximum number of 1,446
remaining years the tax may be in effect. The auditor shall make 1,447
such determination upon request and certify the results thereof 1,448
to the board of education. 1,449
Upon receipt of the auditor's determination, the board of 1,451
education may request the state board of education OHIO SCHOOL 1,453
FACILITIES COMMISSION to enter into a supplemental agreement 1,454
under which the district may repay the remainder of the purchase 1,455
price in annual amounts equal to the quotient obtained by 1,456
dividing the amount remaining to be paid by the maximum number of 1,457
remaining years the tax may be in effect. If such an agreement is 1,458
entered into, the state board COMMISSION shall certify a copy 1,460
thereof to the county auditor and the tax authorized by section 1,461
3318.06 of the Revised Code thereafter shall be levied at the 1,462
rate required to make the annual payments required by the 1,463
supplemental agreement rather than the rate required by such 1,464
section.
Sec. 3318.082. THE BOARD OF EDUCATION OF ANY SCHOOL 1,466
DISTRICT IMPOSING A TAX FOR THE PURPOSE OF PAYING THE COST OF THE 1,467
PURCHASE OF CLASSROOM FACILITIES FROM THE STATE PURSUANT TO 1,468
SECTION 3318.06 OF THE REVISED CODE PRIOR TO THE EFFECTIVE DATE
OF THE AMENDMENTS TO THAT SECTION BY AMENDED SUBSTITUTE HOUSE 1,470
BILL NO. 748 OF THE 121st GENERAL ASSEMBLY, MAY ENTER INTO A 1,471
SUPPLEMENTAL AGREEMENT WITH THE OHIO SCHOOL FACILITIES COMMISSION 1,472
UNDER WHICH THE PROCEEDS OF SUCH TAX SHALL BE DISTRIBUTED IN 1,474
36
ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3318.06 OF THE
REVISED CODE, AS AMENDED BY AMENDED SUBSTITUTE HOUSE BILL NO. 748 1,476
OF THE 121st GENERAL ASSEMBLY. 1,477
Sec. 3318.091. Promptly after the written agreement 1,486
between the school district board and the state board of 1,487
education OHIO SCHOOL FACILITIES COMMISSION has been entered 1,488
into, the school district board shall proceed with the issuance 1,490
of its bonds or notes in anticipation thereof pursuant to the 1,491
provision of such agreement required by division (A) of section 1,492
3318.08 of the Revised Code and the deposit of the proceeds 1,493
thereof in the school district's project construction account
pursuant to the provision of such agreement required by division 1,494
(B) of section 3318.08 of the Revised Code, and the school 1,495
district board, with the approval of the superintendent of public 1,496
instruction COMMISSION shall employ a qualified professional 1,499
person or firm to prepare preliminary plans, working drawings,
specifications, estimates of cost, and such data as the school 1,500
district board and the superintendent of public instruction 1,501
COMMISSION deem necessary for the project. When the preliminary 1,503
plans and preliminary estimates of cost have been prepared, and 1,504
approved by the school district board, they shall be submitted to 1,505
the superintendent of public instruction COMMISSION for approval, 1,506
modification, or rejection. The superintendent COMMISSION shall 1,507
ensure that the plans and materials proposed for use in the 1,509
project comply with specifications for plans and materials that 1,510
shall be established by the state board of education COMMISSION. 1,511
When such preliminary plans and preliminary estimates of cost and 1,513
any modifications thereof have been approved by the 1,514
superintendent of public instruction COMMISSION and the school 1,516
district board, the school district board shall cause such 1,518
qualified professional person or firm to prepare the working
drawings, specifications, and estimates of cost. 1,519
Sec. 3318.10. When such working drawings, specifications, 1,529
and estimates of cost have been approved by the school district 1,530
37
board and the superintendent of public instruction OHIO SCHOOL 1,532
FACILITIES COMMISSION, the treasurer of the school district board 1,533
shall advertise for construction bids for the project once a week 1,534
for four consecutive weeks in a newspaper published in and of 1,535
general circulation in the county in which the project is 1,536
located. Such notices shall state that plans and specifications 1,537
for the project are on file in the office of the state board of 1,538
education COMMISSION and such other place as may be designated in 1,540
such notice, and the time and place when and where bids therefor 1,541
will be received.
The form of proposal to be submitted by bidder BIDDERS 1,543
shall be supplied by the state board COMMISSION. Bidders may be 1,544
permitted to bid upon all the branches of work and materials to 1,546
be furnished and supplied, upon any branch thereof, or upon all 1,547
or any thereof.
A proposal shall be invalid and not considered unless it 1,549
meets the requirements of section 153.54 of the Revised Code. 1,550
When the construction bids for all branches of work and 1,552
materials have been tabulated, the superintendent of public 1,553
instruction COMMISSION shall cause to be prepared a revised 1,554
estimate of the basic project cost based upon the lowest 1,556
responsible bids received. If such revised estimate exceeds the 1,557
estimated basic project cost as approved by the controlling board 1,558
pursuant to section 3318.04 of the Revised Code as adjusted for 1,559
inflation from the time of such approval, no contracts may be 1,560
entered into pursuant to this section unless such revised 1,561
estimate is approved by the state board COMMISSION and by the 1,562
controlling board referred to in section 3318.04 of the Revised 1,564
Code. The adjustment for inflation shall be calculated and 1,565
agreed to by the superintendent of public instruction, the 1,566
director of the legislative budget office of the legislative 1,567
service commission, and the director of the office of budget and 1,568
management. When such revised estimate has been prepared, and 1,570
after such approvals are given, if necessary, and if the school 1,571
38
district board has caused to be transferred to the project 1,572
construction account the proceeds from the sale of the first or 1,573
first and final installment of its bonds or bond anticipation 1,574
notes pursuant to the provision of written agreement required by 1,575
division (B) of section 3318.08 of the Revised Code, and when the 1,576
director of budget and management has certified that there is a 1,577
balance in the appropriation, not otherwise obligated to pay 1,578
precedent obligations, pursuant to which the state's share of 1,579
such revised estimate is required to be paid, the contract for
all branches of work and materials to be furnished and supplied, 1,580
or for any branch thereof as determined by the school district 1,581
board, shall be awarded by the school district board to the 1,582
lowest responsible bidder subject to the approval of the 1,583
superintendent of public instruction COMMISSION. Such award 1,584
shall be made within thirty days after the date on which the bids 1,586
are opened, and the successful bidder shall enter into a contract 1,587
within ten days after the successful bidder is notified of the 1,588
award of the contract. 1,589
Subject to the approval of the superintendent of public 1,591
instruction COMMISSION, the school district board may reject all 1,592
bids and readvertise. Any contract made under this section shall 1,594
be made in the name of the state and executed on its behalf by 1,595
the president and treasurer of the school district board. 1,596
The provisions of sections 153.50 to 153.99 of the Revised 1,598
Code, which are applicable to construction contracts of boards of 1,599
education and which permit bids to be made for two or more trades 1,600
or kinds of work, shall apply to construction contracts for the 1,601
project to the exclusion of sections 153.01 to 153.20 of the 1,602
Revised Code applicable to state construction contracts. 1,603
The remedies afforded to any subcontractor, materialman 1,605
MATERIALS SUPPLIER, laborer, mechanic, or persons furnishing 1,607
material or machinery for the project under sections 1311.26 to 1,608
1311.32 of the Revised Code, shall apply to contracts entered 1,609
into under this section and the itemized statement required by 1,610
39
section 1311.26 of the Revised Code shall be filed with the 1,611
school district board.
Sec. 3318.111. The school district board shall have 1,620
authority, with the approval of the superintendent of public 1,621
instruction OHIO SCHOOL FACILITIES COMMISSION and notwithstanding 1,623
the provisions of sections 135.01 to 135.21, inclusive, of the 1,624
Revised Code, to invest funds on deposit in the project 1,626
construction account in bonds, notes, certificates of 1,627
indebtedness, treasury bills, or other securities issued by and 1,628
constituting direct obligations of the United States, or the
state of Ohio maturing, or redeemable at the option of the 1,629
holder, not later than the dates on which such funds will be 1,630
required to be disbursed from such account.
Sec. 3318.12. The superintendent of public instruction 1,640
OHIO SCHOOL FACILITIES COMMISSION shall cause to be transferred 1,641
to the school district's project construction account the 1,642
necessary amounts from amounts appropriated by the general 1,643
assembly and set aside for such purpose, from time to time as may 1,644
be necessary to pay obligations chargeable to such account when 1,645
due. The treasurer of the school district board shall disburse 1,646
funds from the school district's project construction account 1,647
only upon the approval of the superintendent of public 1,648
instruction COMMISSION. The superintendent of public instruction 1,650
COMMISSION or his THE COMMISSION'S designated representative 1,652
shall issue vouchers against such account, in such amounts, and
at such times as required by the contracts for construction of 1,653
the project.
Any surplus remaining in the school district's project 1,655
construction account after the project has been completed shall 1,656
be transferred to the state board of education COMMISSION for 1,657
expenditure pursuant to sections 3318.01 to 3318.20 of the 1,659
Revised Code; provided, that if the final cost of the project is 1,660
less than the amount of moneys paid into the school district's 1,661
project construction account by the school district board, the 1,662
40
amount by which the school district's contribution exceeds the 1,663
actual cost shall be returned to the school district board. 1,664
Sec. 3318.13. Notwithstanding any provision of sections 1,673
5705.27 to 5705.50 of the Revised Code, the tax to be levied on 1,674
all taxable property within a school district for the purpose of 1,675
paying the cost of maintaining the classroom facilities included 1,676
in the project or for paying the purchase price of the project to 1,677
the state under the agreement provided in section 3318.08 of the 1,678
Revised Code or the supplemental agreement provided in section 1,679
3318.081 of the Revised Code shall be included in the budget of 1,680
the school district for each year upon the certification to the 1,681
county budget commission or commissions of the county or counties 1,682
in which said school district is located, by the state board of 1,683
education OHIO SCHOOL FACILITIES COMMISSION of the balance due 1,685
the state under said agreement or supplemental agreement. Such 1,686
certification shall be made on or before the fifteenth day of 1,687
July in each year. Thereafter, the respective county budget 1,688
commissions shall treat such certification as an additional item 1,689
on the tax budget for the school district as to which such 1,690
certification has been made and shall provide for the levy 1,691
therefor in the manner provided in sections 5705.27 to 5705.50 of 1,692
the Revised Code for tax levies included directly in the budgets 1,693
of the subdivisions.
The levy of taxes shall be included in the next annual tax 1,695
budget that is certified to the county budget commission after 1,696
the execution of the agreement for the project. 1,697
Sec. 3318.14. Notwithstanding the provision of section 1,706
321.31 of the Revised Code, immediately after each settlement 1,707
with the county auditor, on presentation of the warrant of the 1,708
county auditor therefor, the county treasurer shall pay to the 1,709
school district the proceeds of the tax levy provided in section 1,710
3318.13 of the Revised Code to be used to pay the cost of
maintaining the classroom facilities included in the project and 1,712
pay to the state board OHIO SCHOOL FACILITIES COMMISSION any 1,714
41
proceeds of the tax levy provided in section 3318.13 of the
Revised Code to be applied to the unpaid purchase price of the 1,715
project.
Sec. 3318.15. There is hereby created the public school 1,724
building fund within the state treasury consisting of all moneys 1,725
received from the sale of classroom facilities pursuant to 1,726
sections 3318.01 to 3318.20 of the Revised Code, any moneys 1,727
transferred or appropriated to the fund by the general assembly, 1,728
and any grants, gifts, or contributions received by the state 1,729
board of education OHIO SCHOOL FACILITIES COMMISSION to be used 1,730
for the purposes of the fund. 1,731
Moneys transferred or appropriated to the fund by the 1,733
general assembly and moneys in the fund from grants, gifts, and 1,734
contributions shall be used to acquire classroom facilities for 1,735
sale to school districts pursuant to sections 3318.01 to 3318.20 1,736
of the Revised Code. The moneys in the fund received from the 1,737
sale of classroom facilities shall be held in a separate account 1,738
in the fund. Such moneys may be used partially to acquire 1,739
additional classroom facilities for sale to school districts 1,740
pursuant to sections 3318.01 to 3318.20 and partially to pay bond 1,741
service charges as defined in division (C) of section 3318.21 of 1,742
the Revised Code on obligations, the proceeds of which are 1,743
deposited into the school districts facilities fund created in 1,744
section 3318.23 of the Revised Code. 1,745
Sec. 3318.16. Title to interests in real property 1,754
purchased with moneys in the school district's project 1,755
construction account shall be taken in the name of the state of 1,756
Ohio. Upon completion of the project, the title to such interest 1,757
in real property shall be conveyed to the school district board
and the president and the secretary of the state board OHIO 1,758
SCHOOL FACILITIES COMMISSION shall execute and deliver deeds to 1,760
complete the transfer of such interests.
Upon completion of the project, the interest of the state 1,762
in the project shall be transferred to the school district board, 1,763
42
which interest is equal to that portion of the final cost of the 1,764
project represented by funds contributed by the state for the 1,765
project. The purchase price to be paid by the school district 1,766
board for the state's interest in the project shall be the total
amount of funds contributed by the state for the project. 1,767
Sec. 3318.17. A school district board may purchase 1,776
classroom facilities from the state from time to time under the 1,777
procedure set forth in sections 3318.01 to 3318.12 of the Revised 1,778
Code. The levy of taxes required by section 3318.14 of the 1,779
Revised Code shall be at the rate of one-half mill for each one 1,781
dollar of valuation except that in those years in which the state 1,782
superintendent of public instruction OHIO SCHOOL FACILITIES 1,783
COMMISSION, pursuant to section 3318.051 of the Revised Code, 1,784
requires the district to increase the tax rate to an amount 1,785
greater than one-half mill, but not in excess of four mills, and 1,786
shall be for a maximum period of twenty-three years after the 1,787
last purchase and except in those years in which a supplemental 1,788
agreement authorized by section 3318.081 of the Revised Code is 1,789
in effect, the rate shall be as prescribed for such section for 1,790
the period during which such agreement is in effect. Where a 1,791
school district has purchased classroom facilities from the state 1,792
on which any portion of the purchase price remains unpaid and it 1,793
desires to purchase additional classroom facilities, the notice 1,794
of election and form of ballot set forth in section 3318.06 of 1,795
the Revised Code shall provide that the levy is an extension of 1,796
an existing levy for a maximum period of twenty-three years. 1,797
Where there has been more than one purchase of classroom 1,798
facilities from the state, any proceeds of the tax to be used to 1,799
pay the purchase price of such facilities shall be applied to the 1,800
unpaid purchase price of the projects in the order in which they 1,801
were purchased.
Sec. 3318.18. The unpaid purchase price of a project shall 1,810
constitute an indebtedness of the school district but shall not 1,811
be included in the calculation of indebtedness under sections 1,812
43
133.04 and 133.06 of the Revised Code. In the event all or a 1,813
portion of the territory comprising a school district, which has 1,814
outstanding an indebtedness to the state representing the unpaid 1,815
purchase price of a project or projects, is transferred to 1,816
another school district, or, if a new school district is created 1,817
to include all or a portion of such school district, the 1,818
outstanding indebtedness for each project shall be apportioned 1,819
between the acquiring school district and the original school 1,820
district in the ratio, as of the effective date of the transfer, 1,821
which the assessed valuation of the territory transferred to the 1,822
acquiring school district bears to the assessed valuation of the 1,823
original school district. 1,824
The amount of the indebtedness so assumed by the new school 1,826
district or acquiring school district shall be equal to one-half 1,827
mill multiplied by the total value of all property as listed and 1,828
assessed for taxation in the original school district or 1,829
territory transferred for each of the years remaining in the 1,830
agreement for payment of purchase price between the original 1,831
school district and the state board of education. On or before 1,832
the first day of July of each year, the department of taxation 1,833
shall certify to the state board of education OHIO SCHOOL 1,834
FACILITIES COMMISSION the amount of the tax duplicate of the 1,836
original school district or territory transferred for the 1,837
calendar year ending on the thirty-first day of December 1,838
immediately preceding. This tax duplicate shall be used in the 1,839
calculation of the indebtedness so assumed.
The acquiring school district shall levy a tax outside the 1,841
ten-mill limitation upon all property in the acquiring school 1,842
district to pay the indebtedness so assumed until the 1,843
indebtedness so assumed has been discharged but not longer than 1,844
twenty-three years after the original incurrence of the 1,845
indebtedness, provided, that the levy in the acquiring school 1,846
district in any year shall not exceed the levy in the original 1,847
school district to pay the purchase price of projects acquired 1,848
44
from the state. The proceeds of the aforesaid tax levy in the 1,849
acquiring school district shall be applied to the discharge of 1,850
indebtedness first incurred in point of time whether or not it be 1,851
an indebtedness assumed from another school district. 1,852
Sec. 3318.19. A complete detailed report of the 1,861
expenditure of funds pursuant to the provisions of sections 1,862
3318.01 to 3318.20, inclusive, of the Revised Code shall be made 1,864
by the state board OHIO SCHOOL FACILITIES COMMISSION biennially 1,865
to the general assembly. The report shall contain a detailed 1,866
statement of classroom facilities acquired in whole or in part by 1,867
the state and sold to school districts, the moneys received from 1,868
school districts for credit against their indebtedness to the
state, and such other information as will advise the general 1,869
assembly of the nature and progress of this program. 1,870
Sec. 3318.22. (A) The general assembly finds that many 1,879
school districts are prevented by their size, tax base, or other 1,880
conditions from performing their essential functions as agencies 1,881
of state government to provide adequate classroom facilities and 1,882
issuing securities under Chapter 133. of the Revised Code at 1,883
favorable interest rates or charges. Accordingly, the state 1,884
board of education OHIO SCHOOL FACILITIES COMMISSION is invested 1,886
with the powers and duties provided in sections 3318.21 to 1,887
3318.29 of the Revised Code in order to provide deserved 1,888
assistance and materially contribute to the educational 1,889
revitalization of such school districts and result in improving 1,890
the education and welfare of all the people of the state. 1,891
(B) Sections 3318.21 to 3318.29 of the Revised Code do not 1,893
authorize the state board of education COMMISSION or the issuing 1,894
authority to incur bonded indebtedness of the state or any 1,896
political subdivision of the state, or to obligate or pledge 1,897
moneys raised by taxation for the payment of any bonds or notes 1,898
issued pursuant to sections 3318.21 to 3318.29 of the Revised 1,899
Code.
Sec. 3318.23. (A) There is hereby created the school 1,908
45
districts facilities fund within the state treasury that shall 1,909
consist of the proceeds of obligations issued pursuant to section 1,910
3318.26 of the Revised Code for the purposes of such fund, which 1,911
obligations are payable, in part, from moneys in the public 1,912
school building fund created in section 3318.15 of the Revised 1,913
Code; moneys received by the state from sources specified in 1,914
section 3318.27 of the Revised Code; service or other charges 1,915
imposed pursuant to section 3318.24 of the Revised Code; any 1,916
grants, gifts, or contributions of money received by the state 1,917
board of education OHIO SCHOOL FACILITIES COMMISSION for use in 1,919
making loans from the fund pursuant to section 3318.24 of the 1,920
Revised Code; and all other moneys appropriated or transferred to 1,921
the fund; provided that the school districts facilities fund 1,922
shall not be comprised, in any part, of money raised by taxation. 1,923
(B) Moneys in the public school building fund that are 1,925
pledged receipts and that are, pursuant to section 3318.26 of the 1,926
Revised Code, made available by the state board of education 1,927
COMMISSION to pay bond service charges for obligations issued 1,929
pursuant to that section shall be credited to the school 1,930
facilities bond service fund created in division (S) of section 1,931
3318.26 of the Revised Code for each issuance of obligations 1,932
authorized under that section unless otherwise provided in the 1,933
applicable bond proceedings. 1,934
(C) Subject to the approval of the controlling board, all 1,936
moneys appropriated or transferred to the school districts 1,937
facilities fund may be released at the request of the state board 1,938
of education COMMISSION for the making of loans pursuant to 1,939
section 3318.24 of the Revised Code. 1,941
Sec. 3318.24. (A) The state board of education OHIO 1,950
SCHOOL FACILITIES COMMISSION shall adopt rules in accordance with 1,952
Chapter 119. of the Revised Code under which, in any fiscal year 1,953
for which moneys are available in the school districts facilities 1,954
fund, the state board COMMISSION, subject to the approval of the 1,956
controlling board, may make loans from the fund to school 1,957
46
districts for the purpose of paying the allowable costs of a 1,958
permanent improvement. The rules shall include, but need not be 1,959
limited to, all of the following:
(1) Application procedures, including the date by which 1,961
applications shall be made; 1,962
(2) Eligibility criteria, which shall include at least the 1,964
following provisions: 1,965
(a) A requirement that an applicant district demonstrate 1,967
need for additional or improved classroom facilities. Indicators 1,968
of need shall include, but need not be limited to, enrollment 1,969
levels and enrollment changes; ability of the district to 1,970
maintain minimum educational standards; the inability of the 1,971
district to finance the allowable costs of the permanent 1,972
improvement through ordinary financial channels upon reasonable 1,973
terms and at a reasonable interest rate or charge; and 1,974
demonstrated good faith efforts by the district to provide 1,975
classroom facilities by other means. 1,976
(b) A requirement that the loan will be adequately secured 1,978
by the issuance of general obligation bonds by the school 1,979
district as voted upon and approved by the district's electors 1,980
pursuant to section 133.18 of the Revised Code. 1,981
(c) A requirement that an applicant district demonstrate 1,983
the ability to repay the loan and interest charge within the 1,984
maximum period permitted by division (A)(4) of this section. 1,985
(3) Loan approval procedures and criteria, including 1,987
criteria for prioritizing eligible applications in accordance 1,988
with demonstrated need for additional or improved classroom 1,989
facilities. 1,990
(4) Provisions governing repayment of loans and interest 1,992
charges, including a provision that loans and interest charges be 1,993
repaid within a maximum of twenty-five years. 1,994
(5) Provisions governing the charging, altering, and 1,996
collection, by the state board COMMISSION, of fees or interest or 1,998
other charges for loans or service charges for the making of a 1,999
47
loan.
(B) The state board COMMISSION shall enter into a loan 2,001
agreement with each district it approves for a loan pursuant to 2,003
division (A) of this section. The agreement shall specify the 2,004
amount of the loan, the amount of the interest charged for the 2,005
loan, the purpose for which the loan is to be used, the duration 2,006
of the loan, and the repayment schedule. Every such agreement 2,007
shall contain a provision authorizing the state board COMMISSION 2,008
to deduct from payments due to the district under Chapter 3317. 2,010
of the Revised Code or from any other funds appropriated to the 2,011
district by the general assembly, the amount of any scheduled 2,012
loan payment due but not paid by the district. The state board 2,013
COMMISSION may take any necessary or appropriate action to 2,015
collect or otherwise deal with any loan made pursuant to this 2,016
section.
Sec. 3318.25. There is hereby created in the state 2,025
treasury the school building program assistance fund. The fund 2,026
shall consist of the proceeds of obligations issued for the 2,027
purposes of such fund pursuant to section 3318.26 of the Revised 2,028
Code that are payable from moneys in the lottery profits 2,029
education fund created in section 3770.06 of the Revised Code. 2,030
Moneys in the fund shall be used as directed by the state board 2,031
of education OHIO SCHOOL FACILITIES COMMISSION for the cost to 2,033
the state of acquiring classroom facilities for sale to school
districts pursuant to sections 3318.01 to 3318.20 of the Revised 2,034
Code. 2,035
Sec. 3318.26. (A) Subject to the limitations provided in 2,044
section 3318.29 of the Revised Code, the issuing authority, upon 2,045
the certification by the state board of education OHIO SCHOOL 2,047
FACILITIES COMMISSION to the issuing authority of the amount of 2,048
moneys or additional moneys needed in the school districts 2,049
facilities fund for the purpose of making loans for allowable 2,050
costs from such fund or in the school building program assistance 2,051
fund for the purposes of sections 3318.01 to 3318.20 of the 2,052
48
Revised Code, or needed for capitalized interest, for funding 2,053
reserves, and for paying costs and expenses incurred in 2,054
connection with the issuance, carrying, securing, paying, 2,055
redeeming, or retirement of the obligations or any obligations 2,056
refunded thereby, including payment of costs and expenses 2,057
relating to letters of credit, lines of credit, insurance, put 2,058
agreements, standby purchase agreements, indexing, marketing, 2,059
remarketing and administrative arrangements, interest swap or 2,060
hedging agreements, and any other credit enhancement, liquidity, 2,061
remarketing, renewal, or refunding arrangements, all of which are 2,062
authorized by this section, shall issue obligations of the state 2,063
under this section in the required amount. The proceeds of such 2,064
obligations, except for obligations issued to provide moneys for 2,066
the school building program assistance fund or except for such 2,067
portion to be deposited in special funds, including reserve 2,068
funds, as may be provided in the bond proceedings, shall as 2,069
provided in the bond proceedings be deposited by the treasurer of 2,070
state to the school districts facilities fund. The issuing 2,071
authority may appoint trustees, paying agents, and transfer 2,072
agents and may retain the services of financial advisors and 2,073
accounting experts and retain or contract for the services of 2,074
marketing, remarketing, indexing, and administrative agents, 2,075
other consultants, and independent contractors, including 2,076
printing services, as are necessary in the issuing authority's 2,077
judgment to carry out this section. The costs of such services 2,078
are payable from the school districts facilities fund, the school 2,079
building program assistance fund, or any special fund determined 2,080
by the issuing authority.
(B) The holders or owners of such obligations shall have 2,082
no right to have moneys raised by taxation obligated or pledged, 2,083
and moneys raised by taxation shall not be obligated or pledged, 2,084
for the payment of bond service charges. Such holders or owners 2,085
shall have no rights to payment of bond service charges from any 2,086
money or property received by the state board of education 2,087
49
COMMISSION, treasurer of state, or the state, or from any other 2,089
use of the proceeds of the sale of the obligations, and no such 2,090
moneys may be used for the payment of bond service charges, 2,091
except for accrued interest, capitalized interest, and reserves 2,092
funded from proceeds received upon the sale of the obligations 2,093
and except as otherwise expressly provided in the applicable bond 2,094
proceedings pursuant to written directions by the treasurer of 2,095
state. The right of such holders and owners to payment of bond 2,096
service charges shall be limited to all or that portion of the 2,097
pledged receipts and those special funds pledged thereto pursuant 2,098
to the bond proceedings in accordance with this section, and each 2,099
such obligation shall bear on its face a statement to that 2,100
effect.
(C) Obligations shall be authorized by resolution or order 2,102
of the issuing authority and the bond proceedings shall provide 2,103
for the purpose thereof and the principal amount or amounts, and 2,104
shall provide for or authorize the manner or agency for 2,105
determining the principal maturity or maturities, not exceeding 2,106
the limits specified in section 3318.29 of the Revised Code, the 2,107
interest rate or rates or the maximum interest rate, the date of 2,108
the obligations and the dates of payment of interest thereon, 2,109
their denomination, and the establishment within or without the 2,110
state of a place or places of payment of bond service charges. 2,111
Sections 9.98 to 9.983 of the Revised Code are applicable to 2,112
obligations issued under this section, subject to any applicable 2,113
limitation under section 3318.29 of the Revised Code. The 2,114
purpose of such obligations may be stated in the bond proceedings 2,115
in terms describing the general purpose or purposes to be served. 2,116
The bond proceedings shall also provide, subject to the 2,117
provisions of any other applicable bond proceedings, for the 2,118
pledge of all, or such part as the issuing authority may 2,119
determine, of the pledged receipts and the applicable special 2,120
fund or funds to the payment of bond service charges, which 2,121
pledges may be made either prior or subordinate to other 2,122
50
expenses, claims, or payments, and may be made to secure the 2,123
obligations on a parity with obligations theretofore or 2,124
thereafter issued, if and to the extent provided in the bond 2,125
proceedings. The pledged receipts and special funds so pledged 2,126
and thereafter received by the state are immediately subject to 2,127
the lien of such pledge without any physical delivery thereof or 2,128
further act, and the lien of any such pledges is valid and 2,129
binding against all parties having claims of any kind against the 2,130
state or any governmental agency of the state, irrespective of 2,131
whether such parties have notice thereof, and shall create a 2,132
perfected security interest for all purposes of Chapter 1309. of 2,133
the Revised Code, without the necessity for separation or 2,134
delivery of funds or for the filing or recording of the bond 2,135
proceedings by which such pledge is created or any certificate, 2,136
statement or other document with respect thereto; and the pledge 2,137
of such pledged receipts and special funds is effective and the 2,138
money therefrom and thereof may be applied to the purposes for 2,139
which pledged without necessity for any act of appropriation, 2,140
except as required by section 3770.06 of the Revised Code. Every 2,141
pledge, and every covenant and agreement made with respect 2,142
thereto, made in the bond proceedings may therein be extended to 2,143
the benefit of the owners and holders of obligations authorized 2,144
by this section, and to any trustee therefor, for the further 2,145
security of the payment of the bond service charges. 2,146
(D) The bond proceedings may contain additional provisions 2,148
as to: 2,149
(1) The redemption of obligations prior to maturity at the 2,151
option of the issuing authority at such price or prices and under 2,152
such terms and conditions as are provided in the bond 2,153
proceedings; 2,154
(2) Other terms of the obligations; 2,156
(3) Limitations on the issuance of additional obligations; 2,158
(4) The terms of any trust agreement or indenture securing 2,160
the obligations or under which the same may be issued; 2,161
51
(5) The deposit, investment and application of special 2,163
funds, and the safeguarding of moneys on hand or on deposit, 2,164
without regard to Chapter 131., 133., or 135. of the Revised 2,165
Code, but subject to any special provisions of sections 3318.21 2,166
to 3318.29 of the Revised Code, with respect to particular funds 2,167
or moneys, provided that any bank or trust company that acts as 2,168
depository of any moneys in the special funds may furnish such 2,169
indemnifying bonds or may pledge such securities as required by 2,170
the issuing authority; 2,171
(6) Any or every provision of the bond proceedings being 2,173
binding upon such officer, board, commission, authority, agency, 2,174
department, or other person or body as may from time to time have 2,175
the authority under law to take such actions as may be necessary 2,176
to perform all or any part of the duty required by such 2,177
provision; 2,178
(7) Any provision that may be made in a trust agreement or 2,181
indenture;
(8) The lease or sublease of any interest of the school 2,183
district or the state in one or more projects as defined in 2,184
division (C) of section 3318.01 of the Revised Code, or in one or 2,185
more permanent improvements, to or from the issuing authority, as 2,186
provided in one or more lease or sublease agreements between the
school or the state and the issuing authority; 2,187
(9) Any other or additional agreements with the holders of 2,189
the obligations, or the trustee therefor, relating to the 2,190
obligations or the security therefor, including in the case of 2,191
obligations issued to provide moneys for the school district 2,192
facilities fund the assignment of security obtained or to be 2,193
obtained for loans under section 3318.24 of the Revised Code. 2,194
(E) The obligations may have the great seal of the state 2,196
or a facsimile thereof affixed thereto or printed thereon. The 2,197
obligations and any coupons pertaining to obligations shall be 2,198
signed or bear the facsimile signature of the issuing authority. 2,199
Any obligations or coupons may be executed by the person who, on 2,200
52
the date of execution, is the proper issuing authority although 2,201
on the date of such bonds or coupons such person was not the 2,202
issuing authority. In case the issuing authority whose signature 2,203
or a facsimile of whose signature appears on any such obligation 2,204
or coupon ceases to be the issuing authority before delivery 2,205
thereof, such signature or facsimile is nevertheless valid and 2,206
sufficient for all purposes as if the issuing authority had 2,207
remained the issuing authority until such delivery; and in case 2,209
the seal to be affixed to obligations has been changed after a 2,210
facsimile of the seal has been imprinted on such obligations, 2,211
such facsimile seal shall continue to be sufficient as to such 2,212
obligations and obligations issued in substitution or exchange 2,213
therefor.
(F) All obligations are negotiable instruments and 2,215
securities under Chapter 1308. of the Revised Code, subject to 2,216
the provisions of the bond proceedings as to registration. The 2,217
obligations may be issued in coupon or in registered form, or 2,218
both, as the issuing authority determines. Provision may be made 2,219
for the registration of any obligations with coupons attached 2,220
thereto as to principal alone or as to both principal and 2,221
interest, their exchange for obligations so registered, and for 2,222
the conversion or reconversion into obligations with coupons 2,223
attached thereto of any obligations registered as to both 2,224
principal and interest, and for reasonable charges for such 2,225
registration, exchange, conversion, and reconversion. 2,226
(G) Obligations may be sold at public sale or at private 2,228
sale, as determined in the bond proceedings. 2,229
(H) Pending preparation of definitive obligations, the 2,231
issuing authority may issue interim receipts or certificates 2,232
which shall be exchanged for such definitive obligations. 2,233
(I) In the discretion of the issuing authority, 2,235
obligations may be secured additionally by a trust agreement or 2,236
indenture between the issuing authority and a corporate trustee 2,237
which may be any trust company or bank having its principal place 2,238
53
of business within the state. Any such agreement or indenture 2,239
may contain the resolution or order authorizing the issuance of 2,240
the obligations, any provisions that may be contained in any bond 2,241
proceedings, and other provisions that are customary or 2,242
appropriate in an agreement or indenture of such type, including, 2,243
but not limited to: 2,244
(1) Maintenance of each pledge, trust agreement, 2,246
indenture, or other instrument comprising part of the bond 2,247
proceedings until the state has fully paid the bond service 2,248
charges on the obligations secured thereby, or provision therefor 2,249
has been made; 2,250
(2) In the event of default in any payments required to be 2,252
made by the bond proceedings, or any other agreement of the 2,253
issuing authority made as a part of the contract under which the 2,254
obligations were issued, enforcement of such payments or 2,255
agreement by mandamus, the appointment of a receiver, suit in 2,256
equity, action at law, or any combination of the foregoing; 2,257
(3) The rights and remedies of the holders of obligations 2,259
and of the trustee, and provisions for protecting and enforcing 2,260
them, including limitations on rights of individual holders of 2,261
obligations; 2,262
(4) The replacement of any obligations that become 2,264
mutilated or are destroyed, lost, or stolen; 2,265
(5) Such other provisions as the trustee and the issuing 2,267
authority agree upon, including limitations, conditions, or 2,268
qualifications relating to any of the foregoing. 2,269
(J) Any holder of obligations or a trustee under the bond 2,271
proceedings, except to the extent that the holder's or trustee's 2,273
rights are restricted by the bond proceedings, may by any 2,274
suitable form of legal proceedings, protect and enforce any 2,275
rights under the laws of this state or granted by such bond 2,276
proceedings. Such rights include the right to compel the 2,277
performance of all duties of the issuing authority, the state 2,278
board of education COMMISSION, or the director of budget and 2,280
54
management required by sections 3318.21 to 3318.29 of the Revised 2,281
Code or the bond proceedings; to enjoin unlawful activities; and 2,282
in the event of default with respect to the payment of any bond 2,283
service charges on any obligations or in the performance of any 2,284
covenant or agreement on the part of the issuing authority, the 2,285
state board of education COMMISSION, or the director of budget 2,287
and management in the bond proceedings, to apply to a court 2,288
having jurisdiction of the cause to appoint a receiver to receive 2,289
and administer the pledged receipts and special funds, other than 2,290
those in the custody of the treasurer of state or the state board 2,291
of education COMMISSION, which are pledged to the payment of the 2,292
bond service charges on such obligations or which are the subject 2,293
of the covenant or agreement, with full power to pay, and to 2,294
provide for payment of bond service charges on, such obligations, 2,295
and with such powers, subject to the direction of the court, as 2,296
are accorded receivers in general equity cases, excluding any 2,297
power to pledge additional revenues or receipts or other income 2,298
or moneys of the issuing authority or the state or governmental 2,299
agencies of the state to the payment of such principal and 2,300
interest and excluding the power to take possession of, mortgage, 2,301
or cause the sale or otherwise dispose of any permanent 2,302
improvement. 2,303
Each duty of the issuing authority and the issuing 2,305
authority's officers and employees, and of each governmental 2,306
agency and its officers, members, or employees, undertaken 2,307
pursuant to the bond proceedings or any agreement or loan made 2,308
under authority of sections 3318.21 to 3318.29 of the Revised 2,309
Code, and in every agreement by or with the issuing authority, is 2,310
hereby established as a duty of the issuing authority, and of 2,311
each such officer, member, or employee having authority to 2,312
perform such duty, specifically enjoined by the law resulting 2,313
from an office, trust, or station within the meaning of section 2,314
2731.01 of the Revised Code. 2,315
The person who is at the time the issuing authority, or the 2,317
55
issuing authority's officers or employees, are not liable in 2,318
their personal capacities on any obligations issued by the 2,319
issuing authority or any agreements of or with the issuing 2,320
authority. 2,321
(K) The issuing authority may authorize and issue 2,323
obligations for the refunding, including funding and retirement, 2,324
and advance refunding with or without payment or redemption prior 2,325
to maturity, of any obligations previously issued by the issuing 2,326
authority. Such obligations may be issued in amounts sufficient 2,327
for payment of the principal amount of the prior obligations, any 2,328
redemption premiums thereon, principal maturities of any such 2,329
obligations maturing prior to the redemption of the remaining 2,330
obligations on a parity therewith, interest accrued or to accrue 2,331
to the maturity dates or dates of redemption of such obligations, 2,332
and any allowable costs including expenses incurred or to be 2,333
incurred in connection with such issuance and such refunding, 2,334
funding, and retirement. Subject to the bond proceedings 2,335
therefor, the portion of proceeds of the sale of obligations 2,336
issued under this division to be applied to bond service charges 2,337
on the prior obligations shall be credited to an appropriate 2,338
account held by the trustee for such prior or new obligations or 2,339
to the appropriate account in the bond service fund for such 2,340
obligations. Obligations authorized under this division shall be 2,341
deemed to be issued for those purposes for which such prior 2,342
obligations were issued and are subject to the provisions of this 2,343
section pertaining to other obligations, except as otherwise 2,344
provided in this section; provided that, unless otherwise 2,345
authorized by the general assembly, any limitations imposed by 2,346
the general assembly pursuant to this section with respect to 2,347
bond service charges applicable to the prior obligations shall be 2,348
applicable to the obligations issued under this division to 2,349
refund, fund, advance refund or retire such prior obligations. 2,350
(L) The authority to issue obligations under this section 2,352
includes authority to refund or refinance any obligations 2,353
56
previously issued by the state under sections 3318.21 to 3318.29 2,354
of the Revised Code. 2,355
The authority to issue obligations under this section also 2,357
includes authority to issue obligations in the form of bond 2,358
anticipation notes and to renew the same from time to time by the 2,359
issuance of new notes. The holders of such notes or interest 2,360
coupons pertaining thereto shall have a right to be paid solely 2,361
from the pledged receipts and special funds that may be pledged 2,362
to the payment of the bonds anticipated, or from the proceeds of 2,363
such bonds or renewal notes, or both, as the issuing authority 2,364
provides in the resolution or order authorizing such notes. Such 2,365
notes may be additionally secured by covenants of the issuing 2,366
authority to the effect that the issuing authority and the state 2,367
will do such or all things necessary for the issuance of such 2,368
bonds or renewal notes in appropriate amount, and apply the 2,369
proceeds thereof to the extent necessary, to make full payment of 2,370
the principal of and interest on such notes at the time or times 2,371
contemplated, as provided in such resolution or order. For such 2,372
purpose, the issuing authority may issue bonds or renewal notes 2,373
in such principal amount and upon such terms as may be necessary 2,374
to provide funds to pay when required the principal of and 2,375
interest on such notes, notwithstanding any limitations 2,376
prescribed by or for purposes of this section. Subject to this 2,377
division, all provisions for and references to obligations in 2,378
this section are applicable to notes authorized under this 2,379
division. 2,380
The issuing authority in the bond proceedings authorizing 2,382
the issuance of bond anticipation notes shall set forth for such 2,383
bonds an estimated interest rate and a schedule of principal 2,384
payments for such bonds and the annual maturity dates thereof, 2,385
and for purposes of any limitation on bond service charges 2,386
prescribed under section 3318.29 of the Revised Code, the amount 2,387
of bond service charges on such bond anticipation notes shall be 2,388
deemed to be the bond service charges for the bonds anticipated 2,389
57
thereby as set forth in the bond proceedings applicable to such 2,390
notes, but this provision does not modify any authority in this 2,391
section to pledge pledged receipts and special funds to, and 2,392
covenant to issue bonds to fund, the payment of principal of and 2,393
interest and any premium on such notes. 2,394
(M) Obligations issued under this section are lawful 2,396
investments for banks, societies for savings, savings and loan 2,397
associations, deposit guarantee associations, trust companies, 2,398
trustees, fiduciaries, insurance companies, including domestic 2,399
for life and domestic not for life, trustees or other officers 2,400
having charge of sinking and bond retirement or other special 2,401
funds of political subdivisions and taxing districts of this 2,402
state, the commissioners of the sinking fund of the state, the 2,403
administrator of workers' compensation, the state teachers 2,405
retirement system, the public employees retirement system, the 2,406
school employees retirement system, and the police and firemen's 2,407
disability and pension fund, notwithstanding any other provisions 2,408
of the Revised Code or rules adopted pursuant thereto by any 2,409
governmental agency of the state with respect to investments by 2,410
them, and also are acceptable as security for the deposit of 2,411
public moneys.
(N) Unless otherwise provided in any applicable bond 2,413
proceedings, moneys to the credit of or in the special funds 2,414
established by or pursuant to this section may be invested by or 2,415
on behalf of the issuing authority only in notes, bonds, or other 2,416
obligations of the United States, or of any agency or 2,417
instrumentality of the United States, obligations guaranteed as 2,419
to principal and interest by the United States, obligations of 2,420
this state or any political subdivision of this state, and 2,421
certificates of deposit of any national bank located in this 2,423
state and any bank, as defined in section 1101.01 of the Revised 2,424
Code, subject to inspection by the superintendent of financial 2,425
institutions. If the law or the instrument creating a trust 2,427
pursuant to division (I) of this section expressly permits 2,428
58
investment in direct obligations of the United States or an 2,429
agency of the United States, unless expressly prohibited by the 2,430
instrument, such moneys also may be invested in no front end load 2,431
money market mutual funds consisting exclusively of obligations 2,432
of the United States or an agency of the United States and in 2,433
repurchase agreements, including those issued by the fiduciary 2,434
itself, secured by obligations of the United States or an agency 2,435
of the United States; and in collective investment funds 2,436
established in accordance with section 1111.14 of the Revised 2,438
Code and consisting exclusively of any such securities, 2,439
notwithstanding division (A)(1)(c) of that section. The income 2,441
from such investments shall be credited to such funds as the 2,443
issuing authority determines, and such investments may be sold at 2,444
such times as the issuing authority determines or authorizes. 2,445
(O) Provision may be made in the applicable bond 2,447
proceedings for the establishment of separate accounts in the 2,448
bond service fund and for the application of such accounts only 2,449
to the specified bond service charges on obligations pertinent to 2,450
such accounts and bond service fund and for other accounts 2,451
therein within the general purposes of such fund. Unless 2,452
otherwise provided in any applicable bond proceedings, moneys to 2,453
the credit of or in the several special funds established 2,454
pursuant to this section shall be disbursed on the order of the 2,455
treasurer of state, provided that no such order is required for 2,456
the payment from the bond service fund when due of bond service 2,457
charges on obligations. 2,458
(P) The issuing authority may pledge all, or such portion 2,460
as the issuing authority determines, of the pledged receipts to 2,461
the payment of bond service charges on obligations issued under 2,462
this section, and for the establishment and maintenance of any 2,463
reserves, as provided in the bond proceedings, and make other 2,464
provisions therein with respect to pledged receipts as authorized 2,465
by this chapter, which provisions shall be controlling 2,466
notwithstanding any other provisions of law pertaining thereto. 2,467
59
(Q) The issuing authority may covenant in the bond 2,469
proceedings, and any such covenants shall be controlling 2,470
notwithstanding any other provision of law, that the state and 2,471
applicable officers and governmental agencies of the state, 2,472
including the general assembly, so long as any obligations are 2,474
outstanding, shall:
(1) Maintain statutory authority for and cause to be 2,476
operated the state lottery, including the transfers to and from 2,477
the lottery profits education fund created in section 3770.06 of 2,478
the Revised Code so that the pledged receipts shall be sufficient 2,479
in amount to meet bond service charges, and the establishment and 2,480
maintenance of any reserves and other requirements provided for 2,481
in the bond proceedings; 2,482
(2) Take or permit no action, by statute or otherwise, 2,484
that would impair the exclusion from gross income for federal 2,485
income tax purposes of the interest on any obligations designated 2,486
by the bond proceeding as tax-exempt obligations. 2,487
(R) There is hereby created the school building program 2,489
bond service fund, which shall be in the custody of the treasurer 2,490
of state but shall be separate and apart from and not a part of 2,491
the state treasury. All moneys received by or on account of the 2,492
issuing authority or state agencies and required by the 2,493
applicable bond proceedings, consistent with this section, to be 2,494
deposited, transferred, or credited to the school building 2,495
program bond service fund, and all other moneys transferred or 2,496
allocated to or received for the purposes of the fund, shall be 2,497
deposited and credited to such fund and to any separate accounts 2,498
therein, subject to applicable provisions of the bond 2,499
proceedings, but without necessity for any act of appropriation, 2,500
except as required by section 3770.06 of the Revised Code. 2,501
During the period beginning with the date of the first issuance 2,502
of obligations and continuing during such time as any such 2,503
obligations are outstanding, and so long as moneys in the school 2,504
building program bond service fund are insufficient to pay all 2,505
60
bond service charges on such obligations becoming due in each 2,506
year, a sufficient amount of the moneys from the lottery profits 2,507
education fund included in pledged receipts, subject to 2,508
appropriation for such purpose as provided in section 3770.06 of 2,509
the Revised Code, are committed and shall be paid to the school 2,510
building program bond service fund in each year for the purpose 2,511
of paying the bond service charges becoming due in that year. 2,512
The school building program bond service fund is a trust fund and 2,513
is hereby pledged to the payment of bond service charges solely 2,514
on obligations issued to provide moneys for the school building 2,515
program assistance fund to the extent provided in the applicable 2,516
bond proceedings, and payment thereof from such fund shall be 2,517
made or provided for by the treasurer of state in accordance with 2,518
such bond proceedings without necessity for any act of 2,519
appropriation except as required by section 3770.06 of the 2,520
Revised Code. 2,521
(S) There is hereby created the school facilities bond 2,523
service fund, which shall be in the custody of the treasurer of 2,524
state but shall be separate and apart from and not a part of the 2,525
state treasury. All moneys received by or on account of the 2,526
issuing authority or state agencies and required by the 2,527
applicable bond proceedings, consistent with this section, to be 2,528
deposited, transferred, or credited to the school facilities bond 2,529
service fund, and all other moneys transferred or allocated to or 2,530
received for the purposes of the fund, shall be deposited and 2,531
credited to such fund and to any separate accounts therein, 2,532
subject to applicable provisions of the bond proceedings, but 2,533
without necessity for any act of appropriation. During the 2,534
period beginning with the date of the first issuance of 2,535
obligations and continuing during such time as any such 2,536
obligations are outstanding, and so long as moneys in the school 2,537
facilities bond service fund are insufficient to pay all bond 2,538
service charges on such obligations becoming due in each year, a 2,539
sufficient amount of the moneys from the public school building 2,540
61
fund included in pledged receipts are committed and shall be paid 2,541
to the bond service fund in each year for the purpose of paying 2,542
the bond service charges becoming due in that year. The school 2,543
facilities bond service fund is a trust fund and is hereby 2,544
pledged to the payment of bond service charges on obligations 2,545
issued to provide moneys for the school districts facilities fund 2,546
to the extent provided in the applicable bond proceedings, and 2,547
payment thereof from such fund shall be made or provided for by 2,548
the treasurer of state in accordance with such bond proceedings 2,549
without necessity for any act or appropriation. 2,550
(T) The obligations, the transfer thereof, and the income 2,552
therefrom, including any profit made on the sale thereof, at all 2,554
times shall be free from taxation within the state.
Sec. 3318.27. There shall be credited to the school 2,563
facilities bond service fund the moneys received by the state 2,564
from the repayment of loans, including interest thereon, made 2,565
from the school districts facilities fund with moneys derived 2,566
from the proceeds of the sale of obligations under section 2,567
3318.26 of the Revised Code. Such moneys shall be applied as 2,568
provided in sections 3318.21 to 3318.29 of the Revised Code. 2,569
Accounts may be established by the state board of education OHIO 2,571
SCHOOL FACILITIES COMMISSION in the school districts facilities 2,572
fund for particular projects or otherwise. Income from the 2,573
investment of moneys in the school districts facilities fund 2,574
shall be credited to that fund and, as may be provided in bond 2,575
proceedings, to particular accounts therein. The treasurer of 2,576
state may withdraw from the school districts facilities fund or 2,577
the school building program assistance fund, or, subject to 2,578
provisions of the applicable bond proceedings, from any special 2,579
funds established pursuant to the bond proceedings, or from any 2,580
accounts in such funds, any amounts of investment income required 2,581
to be rebated and paid to the federal government in order to 2,582
maintain the exemption from federal income taxation of interest 2,583
on obligations issued under sections 3318.21 to 3318.29 of the 2,584
62
Revised Code, which withdrawal and payment may be made without 2,585
necessity for appropriation.
Sec. 3318.29. The maximum maturity of any obligations 2,594
issued pursuant to section 3318.26 of the Revised Code to provide 2,595
moneys for the school building program assistance fund shall be 2,596
ten years. The terms of the obligations shall be such that in 2,597
any fiscal year the aggregate amount of moneys from the lottery 2,598
profits education fund, and not from other sources, that are 2,599
pledged to pay bond service charges on obligations issued to 2,600
provide moneys for the school building program assistance fund 2,601
shall not exceed ten million dollars. 2,602
As used in this section, "other sources" includes the 2,604
annual investment income on special funds to the extent the 2,605
income will be available for payment of any bond service charges 2,606
in lieu of use of moneys from the lottery profits education fund. 2,607
The annual investment income shall be estimated on the basis of 2,608
the expected funding of those special funds and assumed 2,609
investment earnings thereon at a rate equal to the weighted 2,610
average yield on investments of those special funds determined as 2,611
of any date within sixty days immediately preceding the date of 2,612
issuance of the bonds in respect of which the determination is 2,613
being made. 2,614
The determinations required by this section shall be made 2,616
by the treasurer of state at the time of issuance of an issue of 2,617
obligations and shall be conclusive for purposes of such issuance 2,618
of obligations from and after their issuance and delivery. 2,619
The maximum maturity of obligations issued pursuant to 2,621
section 3318.26 of the Revised Code to provide moneys for the 2,622
school district facilities fund shall not exceed the maximum 2,623
maturity of the loan made from such fund pursuant to section 2,624
3318.24 of the Revised Code utilizing the proceeds of such 2,625
obligations or ten years, whichever is less. The terms of the 2,626
obligations shall be such that in any fiscal year the aggregate 2,627
amount of moneys from the public school building fund that are 2,628
63
pledged to pay bond service charges on obligations issued to 2,629
provide moneys for the school districts facilities fund shall not 2,630
exceed an amount which shall be established by the state board of 2,631
education OHIO SCHOOL FACILITIES COMMISSION. 2,632
Sec. 3318.30. (A) THERE IS HEREBY CREATED THE OHIO SCHOOL 2,635
FACILITIES COMMISSION. THE COMMISSION SHALL ADMINISTER THE 2,636
PROVISION OF FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS FOR THE 2,637
ACQUISITION OR CONSTRUCTION OF CLASSROOM FACILITIES IN ACCORDANCE 2,638
WITH SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,640
THE COMMISSION IS A BODY CORPORATE AND POLITIC, AN AGENCY 2,642
OF STATE GOVERNMENT AND AN INSTRUMENTALITY OF THE STATE, 2,643
PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS OF THIS STATE. THE 2,644
CARRYING OUT OF THE PURPOSES AND THE EXERCISE BY THE COMMISSION 2,645
OF ITS POWERS CONFERRED BY SECTIONS 3318.01 TO 3318.31 OF THE 2,647
REVISED CODE ARE ESSENTIAL PUBLIC FUNCTIONS AND PUBLIC PURPOSES 2,648
OF THE STATE. THE COMMISSION MAY, IN ITS OWN NAME, SUE AND BE 2,649
SUED, ENTER INTO CONTRACTS, AND PERFORM ALL THE POWERS AND DUTIES 2,650
GIVEN TO IT BY SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE 2,652
BUT IT DOES NOT HAVE AND SHALL NOT EXERCISE THE POWER OF EMINENT 2,653
DOMAIN.
(B) THE COMMISSION SHALL CONSIST OF SEVEN MEMBERS, THREE 2,656
OF WHOM ARE VOTING MEMBERS. THE VOTING MEMBERS OF THE COMMISSION 2,657
SHALL BE THE DIRECTOR OF THE OFFICE OF BUDGET AND MANAGEMENT, THE 2,658
DIRECTOR OF ADMINISTRATIVE SERVICES, AND THE SUPERINTENDENT OF 2,659
PUBLIC INSTRUCTION, OR THEIR DESIGNEES. OF THE NONVOTING 2,660
MEMBERS, TWO SHALL BE MEMBERS OF THE SENATE APPOINTED BY THE 2,661
PRESIDENT OF THE SENATE AND TWO SHALL BE MEMBERS OF THE HOUSE OF 2,662
REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE. EACH OF 2,663
THE APPOINTEES OF THE PRESIDENT, AND EACH OF THE APPOINTEES OF 2,664
THE SPEAKER, SHALL BE MEMBERS OF DIFFERENT POLITICAL PARTIES. 2,665
NONVOTING MEMBERS SHALL SERVE AS MEMBERS OF THE COMMISSION 2,667
DURING THE LEGISLATIVE BIENNIUM FOR WHICH THEY ARE APPOINTED, 2,668
EXCEPT THAT ANY SUCH MEMBER WHO CEASES TO BE A MEMBER OF THE 2,669
LEGISLATIVE HOUSE FROM WHICH THE MEMBER WAS APPOINTED SHALL CEASE 2,671
64
TO BE A MEMBER OF THE COMMISSION. EACH NONVOTING MEMBER SHALL BE 2,672
APPOINTED WITHIN THIRTY-ONE DAYS OF THE END OF THE TERM OF THAT 2,673
MEMBER'S PREDECESSOR. SUCH MEMBERS MAY BE REAPPOINTED.
VACANCIES OF NONVOTING MEMBERS SHALL BE FILLED IN THE MANNER 2,674
PROVIDED FOR ORIGINAL APPOINTMENTS. 2,675
MEMBERS OF THE COMMISSION SHALL SERVE WITHOUT COMPENSATION. 2,678
AFTER THE INITIAL NONVOTING MEMBERS OF THE COMMISSION HAVE 2,680
BEEN APPOINTED, THE COMMISSION SHALL MEET AND ORGANIZE BY 2,681
ELECTING VOTING MEMBERS AS THE CHAIRPERSON AND VICE-CHAIRPERSON 2,682
OF THE COMMISSION, WHO SHALL HOLD THEIR OFFICES UNTIL THE NEXT 2,684
ORGANIZATIONAL MEETING OF THE COMMISSION. ORGANIZATIONAL 2,685
MEETINGS OF THE COMMISSION SHALL BE HELD AT THE FIRST MEETING OF 2,686
EACH CALENDAR YEAR. AT EACH ORGANIZATIONAL MEETING, THE 2,687
COMMISSION SHALL ELECT FROM AMONG ITS VOTING MEMBERS A 2,688
CHAIRPERSON AND VICE-CHAIRPERSON, WHO SHALL SERVE UNTIL THE NEXT
ANNUAL ORGANIZATIONAL MEETING. THE COMMISSION SHALL ADOPT RULES 2,690
PURSUANT TO SECTION 111.15 OF THE REVISED CODE FOR THE CONDUCT OF 2,692
ITS INTERNAL BUSINESS AND SHALL KEEP A JOURNAL OF ITS 2,693
PROCEEDINGS. INCLUDING THE ORGANIZATIONAL MEETING, THE 2,694
COMMISSION SHALL MEET AT LEAST ONCE EACH CALENDAR QUARTER. 2,695
TWO VOTING MEMBERS OF THE COMMISSION CONSTITUTE A QUORUM, 2,697
AND THE AFFIRMATIVE VOTE OF TWO MEMBERS IS NECESSARY FOR APPROVAL 2,699
OF ANY ACTION TAKEN BY THE COMMISSION. A VACANCY IN THE 2,700
MEMBERSHIP OF THE COMMISSION DOES NOT IMPAIR A QUORUM FROM
EXERCISING ALL THE RIGHTS AND PERFORMING ALL THE DUTIES OF THE 2,701
COMMISSION. MEETINGS OF THE COMMISSION MAY BE HELD ANYWHERE IN 2,702
THE STATE, AND SHALL BE HELD IN COMPLIANCE WITH SECTION 121.22 OF 2,704
THE REVISED CODE.
(C) THE COMMISSION SHALL FILE AN ANNUAL REPORT OF ITS 2,707
ACTIVITIES AND FINANCES WITH THE GOVERNOR, SPEAKER OF THE HOUSE 2,708
OF REPRESENTATIVES, PRESIDENT OF THE SENATE, AND CHAIRPERSONS OF 2,709
THE HOUSE AND SENATE FINANCE COMMITTEES. 2,710
(D) THE COMMISSION SHALL BE EXEMPT FROM THE REQUIREMENTS 2,713
OF SECTIONS 101.82, 101.84, AND 101.86 OF THE REVISED CODE. 2,714
65
Sec. 3318.31. THE OHIO SCHOOL FACILITIES COMMISSION MAY 2,718
PERFORM ANY ACT AND ENSURE THE PERFORMANCE OF ANY FUNCTION 2,719
NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF, AND 2,720
EXERCISE THE POWERS GRANTED UNDER, SECTIONS 3318.01 TO 3318.31 OF 2,721
THE REVISED CODE, INCLUDING ANY OF THE FOLLOWING: 2,722
(A) EMPLOY AND FIX THE COMPENSATION OF SUCH EMPLOYEES AS 2,726
WILL FACILITATE THE ACTIVITIES AND PURPOSES OF THE COMMISSION, 2,727
AND WHO SHALL SERVE AT THE PLEASURE OF THE COMMISSION.
(B) ADOPT, AMEND, AND RESCIND, PURSUANT TO SECTION 111.15 2,730
OF THE REVISED CODE, RULES FOR THE ADMINISTRATION OF SECTIONS 2,732
3318.01 TO 3318.31 OF THE REVISED CODE. 2,733
(C) CONTRACT WITH, RETAIN THE SERVICES OF, OR DESIGNATE, 2,736
AND FIX THE COMPENSATION OF, SUCH AGENTS, ACCOUNTANTS, ATTORNEYS, 2,737
CONSULTANTS, ADVISERS, AND OTHER INDEPENDENT CONTRACTORS AS MAY 2,738
BE NECESSARY OR DESIRABLE TO CARRY OUT THE PURPOSES OF SECTIONS 2,739
3318.01 TO 3318.31 OF THE REVISED CODE. 2,740
(D) RECEIVE AND ACCEPT ANY GIFTS, GRANTS, DONATIONS, AND 2,743
PLEDGES, AND RECEIPTS THEREFROM, TO BE USED FOR THE PURPOSES OF 2,744
SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,745
(E) MAKE AND ENTER INTO ALL CONTRACTS, COMMITMENTS, AND 2,748
AGREEMENTS, AND EXECUTE ALL INSTRUMENTS, NECESSARY OR INCIDENTAL 2,749
TO THE PERFORMANCE OF ITS DUTIES AND THE EXECUTION OF ITS RIGHTS 2,750
AND POWERS UNDER SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,752
Sec. 3318.35. (A) AS USED IN THIS SECTION, "OHIO SCHOOL 2,756
FACILITIES COMMISSION" HAS THE SAME MEANING AS IN SECTION 3318.01 2,757
OF THE REVISED CODE.
(B) THE OHIO SCHOOL FACILITIES COMMISSION SHALL ESTABLISH 2,761
AND ADMINISTER THE EMERGENCY SCHOOL BUILDING REPAIR PROGRAM. 2,762
UNDER THE PROGRAM, THE COMMISSION SHALL DISTRIBUTE MONEYS 2,763
APPROPRIATED BY THE GENERAL ASSEMBLY FOR SUCH PURPOSE TO SCHOOL 2,764
DISTRICTS BEGINNING WITH THOSE DISTRICTS WITH AN ADJUSTED PER 2,765
PUPIL VALUATION LESS THAN THE THRESHOLD VALUATION DEFINED IN 2,766
SECTION 3317.0213 OF THE REVISED CODE. THE COMMISSION SHALL 2,767
DETERMINE AND CERTIFY TO THE CONTROLLING BOARD FOR ITS APPROVAL 2,768
66
ANY DETERMINATION THE COMMISSION MAKES AS TO THE NECESSITY OF 2,769
EMERGENCY REPAIRS BASED ON AN ON-SITE INSPECTION OF THE SCHOOL 2,771
BUILDINGS IN A SCHOOL DISTRICT. ANY SCHOOL DISTRICT THAT 2,772
RECEIVES MONEYS UNDER THIS SECTION SHALL EXPEND THEM ONLY TO 2,773
REPAIR THE FOLLOWING:
(1) HEATING SYSTEMS; 2,775
(2) FLOORS, ROOFS, AND EXTERIOR DOORS; 2,777
(3) AIR DUCTS AND OTHER AIR VENTILATION DEVICES; 2,780
(4) EMERGENCY EXIT OR EGRESS PASSAGEWAY LIGHTING; 2,782
(5) FIRE ALARM SYSTEMS; 2,784
(6) HANDICAPPED ACCESS NEEDS; 2,786
(7) SEWAGE SYSTEMS; 2,788
(8) WATER SUPPLIES; 2,790
(9) ASBESTOS REMOVAL; AND 2,792
(10) ANY OTHER REPAIRS TO A SCHOOL BUILDING THAT MEET THE 2,795
REQUIREMENTS OF THE LIFE SAFETY CODE, AS INTERPRETED BY THE 2,796
COMMISSION.
(C) NO MONEYS FOR EMERGENCY SCHOOL BUILDING REPAIR UNDER 2,799
THIS SECTION SHALL BE DISTRIBUTED TO A SCHOOL DISTRICT TO REPAIR 2,800
A SCHOOL BUILDING THAT THE COMMISSION REASONABLY BELIEVES WILL 2,801
NOT BE NEEDED BY THE DISTRICT OR WILL BE SUBSTANTIALLY REPLACED 2,803
WITHIN THE NEXT SEVEN FISCAL YEARS PURSUANT TO SECTIONS 3318.01 2,804
TO 3318.31 OF THE REVISED CODE. 2,805
(D) AFTER RECEIPT OF MONEYS FROM THE EMERGENCY SCHOOL 2,808
BUILDING REPAIR PROGRAM, NO SCHOOL DISTRICT SHALL BE ELIGIBLE TO 2,809
RECEIVE ADDITIONAL MONEYS FROM THE PROGRAM FOR THE FOLLOWING FIVE 2,810
FISCAL YEARS UNLESS A SCHOOL BUILDING IN THAT DISTRICT IS DAMAGED 2,811
DUE TO AN ACT OF GOD THAT COULD NOT HAVE BEEN PREVENTED BY 2,813
REASONABLE MAINTENANCE OF THAT BUILDING.
Sec. 4115.04. Every public authority authorized to 2,822
contract for or construct with its own forces a public 2,823
improvement, before advertising for bids or undertaking such 2,824
construction with its own forces, shall have the bureau of 2,825
employment services determine the prevailing rates of wages of 2,826
67
mechanics and laborers in accordance with section 4115.05 of the 2,827
Revised Code for the class of work called for by the public 2,828
improvement, in the locality where the work is to be performed. 2,829
Such schedule of wages shall be attached to and made part of the 2,830
specifications for the work, and shall be printed on the bidding 2,831
blanks where the work is done by contract. A copy of the bidding 2,832
blank shall be filed with the bureau before such contract is 2,833
awarded. A minimum rate of wages for common laborers, on work 2,835
coming under the jurisdiction of the department of 2,836
transportation, shall be fixed in each county of the state by 2,837
said department of transportation, in accordance with section 2,838
4115.05 of the Revised Code.
Sections 4115.03 to 4115.16 of the Revised Code do not 2,840
apply to:
(A) Public improvements in any case where the federal 2,842
government or any of its agencies furnishes by loan or grant all 2,844
or any part of the funds used in constructing such improvements, 2,845
provided the federal government or any of its agencies prescribes 2,846
predetermined minimum wages to be paid to mechanics and laborers 2,847
employed in the construction of such improvements; 2,848
(B) A participant of the subsidized employment program 2,850
established under section 5101.82 of the Revised Code or the work 2,851
experience program established under section 5101.83 of the 2,852
Revised Code when a public authority directly uses the labor of 2,854
the participant to construct a public improvement;
(C) PUBLIC IMPROVEMENTS UNDERTAKEN BY, OR UNDER CONTRACT 2,856
FOR, THE BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OR THE 2,857
GOVERNING BOARD OF ANY EDUCATIONAL SERVICE CENTER. 2,858
Section 2. That existing sections 133.06, 3313.372, 2,860
3318.01, 3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 3318.051, 2,862
3318.06, 3318.07, 3318.08, 3318.081, 3318.091, 3318.10, 3318.111, 2,863
3318.12, 3318.13, 3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 2,864
3318.19, 3318.22, 3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 2,865
3318.29, and 4115.04 of the Revised Code are hereby repealed. 2,866
68
Section 3. All personnel, equipment, materials, assets, 2,868
liabilities, and records of the Department of Education, 2,869
irrespective of form or medium, deemed necessary by the Ohio 2,870
School Facilities Commission to implement the provisions of 2,871
Chapter 3318. of the Revised Code shall be transferred to the 2,872
Commission not later than one hundred twenty days after the 2,873
effective date of this section, in accordance with a transition
plan which shall be developed and appproved by the Commission in 2,874
consultation with the Department. 2,875
All appropriations, encumbrances, and funds of the 2,877
Department, including the Public School Building Fund (Fund 021) 2,878
and the School Building Assistance Fund (Fund 032), deemed 2,879
necessary by the Commission to implement the provisions of 2,880
Chapter 3318. of the Revised Code, shall be transferred to the 2,881
Commission not later than one hundred twenty days after the 2,882
effective date of this section in accordance with the transition 2,883
plan.
Any business commenced but not completed by the Department 2,885
on the effective date of this section relating to the 2,886
implementation of Chapter 3318. of the Revised Code and the 2,887
functions transferred by this act shall continue to be 2,888
administered by the Department for a period of one hundred twenty 2,890
days after the effective date of this section or until the 2,891
transition plan described in this section is approved by the Ohio 2,892
School Facilities Commission, whichever occurs first.
The Department shall provide the Commission whatever 2,894
administrative assistance the Commission requires during the 2,895
period of transition, which assistance shall be specified in the 2,896
transition plan described in this section. 2,897
Wherever any law, contract, or other document refers to the 2,899
Department, the State Board of Education, or the Superintendent 2,900
of Public Instruction in regard to the implementation or 2,901
administration of Chapter 3318. of the Revised Code, the 2,902
references shall be deemed to refer to the Commission or the 2,903
69
Director of the Commission. No action or proceeding pending on 2,904
the effective date of this act relating to the implementation or 2,905
administration of Chapter 3318. of the Revised Code is affected 2,906
by the transfer. In all such actions and proceedings, the 2,907
Commission or the Director shall be substituted as a party upon 2,908
application by the receiving entity to the court or other 2,909
appropriate tribunal. 2,910
Section 4. School building assistance projects proposed to 2,912
be funded pursuant to Chapter 3318. of the Revised Code that were 2,914
on a list approved by the State Board of Education as of January 2,915
1993, but which projects had not yet obtained voter approval by 2,916
September 17, 1996, shall be subject to all provisions of Chapter 2,917
3318. of the Revised Code in effect prior to September 17, 1996, 2,918
except that the provisions of division (B) of section 3318.05 of 2,919
the Revised Code, as that section existed after September 17, 2,920
1996, shall apply to those projects with respect to the 2,921
disposition of the half mill levy required by that section. 2,922
Section 5. SFC SCHOOL FACILITIES COMMISSION 2,924
General Revenue Fund 2,926
GRF 230-428 Lease Rental Payments $ 21,780,000 $ 36,030,000 2,930
TOTAL GRF General Revenue Fund $ 21,780,000 $ 36,030,000 2,932
State Special Revenue Fund 2,935
5E3 230-644 Operating Expenses $ 2,000,000 $ 2,400,000 2,940
Total SSR State Special Revenue $ 2,000,000 $ 2,400,000 2,944
Fund Group
TOTAL ALL BUDGET FUND GROUPS $ 23,780,000 $ 38,430,000 2,947
Operating Expenses 2,950
The foregoing appropriation item 230-644, Operating 2,952
Expenses, shall be used by the Ohio School Facilities Commission 2,953
to carry out its responsibilities pursuant to this section and 2,954
Chapter 3318. of the Revised Code. 2,955
There is hereby created in the state treasury the Ohio 2,957
School Facilities Commission Fund (Fund 5E3). The fund shall 2,958
consist of transfers of moneys authorized by the General 2,959
70
Assembly, grants and other revenues described in division (D) of 2,960
section 3318.31 of the Revised Code, and investment earnings of 2,961
the fund. Moneys credited to the fund may be used by the 2,962
commission for staffing and other administrative expenses, to 2,963
conduct evaluations of school facilities, to prepare building 2,964
design specifications, to provide project management services, 2,965
and for any other purposes deemed necessary by the commission 2,966
consistent with Chapter 3318. of the Revised Code. 2,967
Within 10 days of the effective date of this section, the 2,969
Director of Budget and Management shall transfer up to $2,000,000 2,970
by intrastate transfer voucher from the School Facilities 2,971
Commission's appropriation item 230-428, Lease Rental Payments, 2,972
to the Ohio School Facilities Commission Fund (Fund 5E3). In 2,973
fiscal year 1999, by July 10, 1998, the Director of Budget and 2,974
Management shall transfer up to $2,400,000 by intrastate transfer
voucher from the School Facilities Commission's line item 230-428 2,976
Lease Rental Payments to the Ohio School Facilities Commission 2,977
Fund (Fund 5E3). Investment earnings to the School Building 2,978
Assistance Fund (Fund 032) in excess of the amounts required to 2,979
meet estimated federal arbitrage rebate requirements may be 2,980
transferred at the request of the Ohio School Facilities
Commission by the Director of Budget and Management to the Ohio 2,981
School Facilities Commission Fund (Fund 5E3). Investment 2,982
earnings to the Public School Building Fund (Fund 021) and 2,983
repayments to the Public School Building Fund (Fund 021) made
pursuant to Chapter 3318. of the Revised Code may be tranferred 2,984
at the request of the Ohio School Facilities Commission by the 2,985
Director of Budget and Management to the Ohio School Facilities 2,986
Commission Fund (Fund 5E3).
Lease Rental Payments 2,988
After the transfers described in this section under the 2,990
heading, "Operating Expenses" are made, the remaining 2,991
appropriation shall be used by the School Facilities Commission 2,992
to meet all payments at the times required to be made during the 2,994
71
period from July 1, 1997, to June 30, 1999, to pay bond service 2,995
charges on obligations issued pursuant to Chapter 3318. of the 2,996
Revised Code.
Section 6. Debt Service Appropriations 2,998
General revenue appropriations to the School Facilities 3,000
Commission include $21,780,000 in fiscal year 1998 and 3,001
$36,030,000 in fiscal year 1999 for appropriation item 230-428, 3,003
Lease Rental Payments.
Of the $699,417,200 in fiscal year 1998 and $702,623,028 in 3,005
fiscal year 1999 that is estimated to be transferred from the 3,006
State Lottery Fund to the Lottery Profits Education Fund, up to 3,007
$21,280,000 in fiscal year 1998 and $31,530,000 in fiscal year 3,008
1999 shall first be transferred from the Lottery Profits 3,010
Education Fund to the General Revenue Fund for reimbursement of 3,011
funds spent under appropriation item 230-428, Lease Rental 3,012
Payments. These funds shall then be transferred by the Director 3,013
of Budget and Management to the School Building Program Bond 3,014
Service Fund pursuant to section 3770.06 of the Revised Code. 3,015
Section 7. All items set forth in this section are hereby 3,017
appropriated out of any moneys in the state treasury to the 3,018
credit of the School Building Program Assistance Fund (Fund 032). 3,020
Revenues to the School Building Program Assistance Fund shall 3,021
consist of proceeds of obligations authorized to pay costs of 3,022
capital facilities as defined in section 3318.21 of the Revised 3,023
Code.
Appropriations 3,025
SFC SCHOOL FACILITIES COMMISSION 3,026
CAP-737 School Building Program Assistance $ 300,000,000 3,030
Total School Facilities Commission $ 300,000,000 3,032
School Building Assistance 3,035
Of the foregoing appropriation item CAP-737, School 3,037
Building Program Assistance, up to $200,000,000 shall be used by 3,038
the Ohio School Facilities Commission to provide funds to schools 3,039
that receive conditional approval by the Ohio School Facilities 3,041
72
Commission pursuant to Chapter 3318. of the Revised Code.
Up to $50,000,000 of that amount shall be used by the Ohio 3,043
School Facilities Commission to administer the Emergency School 3,044
Building Repair Program, pursuant to section 3318.35 of the 3,045
Revised Code.
Of the foregoing appropriation item CAP-737, School 3,047
Building Program Assistance, notwithstanding Chapter 3318. of the 3,048
Revised Code, up to $100,000,000 shall be used by the Ohio School 3,049
Facilities Commission to provide funds to the big eight school 3,050
districts to be used for major renovations and repairs of school 3,053
facilities. Funds shall be allocated to the school districts on 3,054
a per pupil basis, based on fiscal year 1997 total average daily 3,055
membership as defined in section 3317.03 of the Revised Code. To 3,056
be eligible to receive these funds, each school district shall: 3,057
(1) Provide a 100 per cent match from funds that are 3,060
approved by the Ohio School Facilities Commission;
(2) Develop and submit a capital renovations plan for the 3,062
use of state and local funds subject to approval by the Ohio 3,063
School Facilities Commission. 3,064
As used in this section, "big eight school district" means 3,066
a school district that for fiscal year 1997 had a percentage of 3,067
children residing in the district and receiving Aid to Dependent 3,068
Children greater than thirty per cent, as reported pursuant to 3,069
section 3317.10 of the Revised Code, and had an average daily 3,070
membership greater than twelve thousand, as reported pursuant to 3,071
division (A) of section 3317.03 of the Revised Code. 3,073
Section 8. The Treasurer of State is hereby authorized to 3,075
issue and sell, in accordance with the provisions of Section 2i 3,076
of Article VIII, Ohio Constitution, and section 3318.26 of the 3,077
Revised Code, original obligations in an aggregate principal 3,078
amount not to exceed $300,000,000 in addition to the original 3,079
issuance of obligations heretofore authorized by prior acts of 3,080
the General Assembly. These authorized obligations shall be 3,081
issued to provide funds appropriated in this act for the School 3,082
73
Building Program Assistance Fund for the Ohio School Facilities 3,083
Commission to distribute pursuant to Chapter 3318. of the Revised 3,085
Code, the owners or holders of which shall have no right to have 3,086
excises or taxes levied by the General Assembly for the payment 3,087
of principal or interest thereon.
Section 9. The codified and uncodified sections of law 3,089
contained in this act, and the items of law of which the codified 3,091
and uncodified sections of law contained in this act are 3,092
composed, are not subject to the referendum. Therefore, under 3,093
Ohio Constitution, Article II, Section 1d and section 1.471 of 3,094
the Revised Code, the codified and uncodified sections of law 3,095
contained in this act, and the items of law of which the codified 3,096
and uncodified sections of law contained in this act are 3,097
composed, go into immediate effect when this act becomes law. 3,098
Section 10. Section 4115.04 of the Revised Code is 3,100
presented in this act as a composite of the section as amended by 3,101
both Sub. H.B. 167 and Am. Sub. S.B. 162 of the 121st General 3,102
Assembly, with the new language of neither of the acts shown in 3,104
capital letters. This is in recognition of the principle stated 3,105
in division (B) of section 1.52 of the Revised Code that such 3,106
amendments are to be harmonized where not substantively 3,107
irreconcilable and constitutes a legislative finding that such is 3,108
the resulting version in effect prior to the effective date of 3,109
this act.
Section 11. The Ohio School Facilities Commission shall 3,111
establish specifications for plans and materials for classroom 3,112
facilities to be constructed under Chapter 3318. of the Revised 3,113
Code, as required by section 3318.091 of the Revised Code, not 3,114
later than October 15, 1997.
Section 12. School building assistance projects of school 3,116
districts contained, as of the effective date of this section, in 3,117
the first through tenth percentiles as defined under division (P) 3,119
of section 3318.01 of the Revised Code, that were proposed and 3,120
conditionally approved before such effective date, but which 3,122
74
projects had not yet obtained voter approval on such effective
date, shall be subject to all provisions of Chapter 3318. of the 3,123
Revised Code in effect prior to such effective date, except that 3,124
the provision of section 3318.04 of the Revised Code, as amended 3,125
by this act, that prohibits school districts in the first through 3,126
tenth percentiles from being required to pay any portion of the 3,128
basic project cost shall apply to those projects.
Section 13. (A) Notwithstanding anything to the contrary 3,130
in Chapter 3318. of the Revised Code, the Ohio School Facilities 3,131
Commission shall first consider for approval and funding, without 3,132
regard to division (B)(2) of section 3318.02 of the Revised Code, 3,133
projects as defined under section 3318.01 of the Revised Code 3,134
proposed by a city, exempted village, or local school district 3,135
that notifies and certifies in writing to the Commission that the 3,136
district meets all of the following requirements: 3,137
(1) The district is contained in the first quartile of the 3,139
most recent ranking of school districts according to adjusted 3,140
valuation per pupil compiled pursuant to section 3318.011 of the 3,141
Revised Code;
(2) The district has an assessment of its classroom 3,143
facility needs performed by a professional person or firm 3,144
qualified to assess the facility needs of the district; 3,145
(3) The proposed project has been developed with input 3,147
from the community and has been approved by the district's 3,148
Business Advisory Council.
(B) For a school district proposing a project which meets 3,150
all of the requirements of division (A) of this section, the Ohio 3,151
School Facilities Commission shall reserve and encumber an amount 3,152
equal to the state's portion of the basic project cost as defined 3,153
under section 3318.01 of the Revised Code and computed in the 3,154
same manner as if the project were approved by the Commission 3,155
pursuant to the procedures specified under sections 3318.02 to
3318.05 of the Revised Code. The Commission shall reserve and 3,156
encumber such amount immediately upon the district's meeting all 3,157
75
such requirements and shall not release the amount for other 3,158
projects unless a majority affirmative vote is not obtained on 3,159
the tax levies, or on the bond issue and tax levies, as required 3,161
by section 3318.06 of the Revised Code, within one year after the
amount is reserved and encumbered. The Commission and the school 3,162
district shall comply with all other applicable requirements of 3,163
Chapter 3318. of the Revised Code with respect to the completion, 3,165
utilization, and payment for the classroom facilities acquired or
constructed under the project as if the project were approved 3,166
pursuant to the procedures specified under sections 3318.02 to 3,167
3318.05 of the Revised Code.
Section 14. A school district having a project that is 3,169
approved for funding under section 3318.04 of the Revised Code on 3,170
or after the effective date of this section, which district has 3,171
approved a tax levy for building maintenance of at least one-half 3,172
mill within the year prior to the effective date of this section, 3,173
shall not be required to levy the tax described under division
(B) of section 3318.06 of the Revised Code in order to qualify 3,174
for such project funding. 3,175