As Passed by the Senate* 1
122nd General Assembly 4
Regular Session Sub. S. B. No. 102 5
1997-1998 6
SENATORS DIX-GILLMOR-B. JOHNSON-BLESSING-CARNES-CUPP- 8
DRAKE-FINAN-GAETH-GARDNER-HORN-KEARNS-LATTA-NEIN- 9
RAY-SCHAFRATH-WHITE-WATTS 10
12
A B I L L
To amend sections 133.06, 3313.372, 3318.01, 14
3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 16
3318.051, 3318.06, 3318.07, 3318.08, 3318.081,
3318.091, 3318.10, 3318.111, 3318.12, 3318.13, 17
3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 18
3318.19, 3318.22, 3318.23, 3318.24, 3318.25, 19
3318.26, 3318.27, 3318.29, and 4115.04 and to
enact sections 3318.041, 3318.082, 3318.30, 20
3318.31, and 3318.35 of the Revised Code to
create the Ohio School Facilities Commission, to 22
transfer responsibility for the Classroom 23
Facilities Assistance Program from the State
Board of Education to the Commission, to make 24
other changes to the Classroom Facilities 25
Assistance Law, to exempt from prevailing wage
law public improvements and construction 26
undertaken by school districts and educational 27
service centers, to change the approval
requirements for certain school districts to 28
receive Classroom Facilities Assistance during
1997, and to make an appropriation. 30
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 32
Section 1. That sections 133.06, 3313.372, 3318.01, 34
3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 3318.051, 3318.06, 36
2
3318.07, 3318.08, 3318.081, 3318.091, 3318.10, 3318.111, 3318.12, 37
3318.13, 3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 3318.19, 38
3318.22, 3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 3318.29, 39
and 4115.04 be amended and sections 3318.041, 3318.082, 3318.30, 41
3318.31, and 3318.35 of the Revised Code be enacted to read as 42
follows:
Sec. 133.06. (A) A school district shall not incur, 51
without a vote of the electors, net indebtedness that exceeds an 52
amount equal to one-tenth of one per cent of its tax valuation 53
except as provided in divisions (G) and (H) of this section and 55
in division (C) of section 3313.372 of the Revised Code. 56
(B) Except as provided in divisions (E) and (F) of this 58
section, a school district shall not incur net indebtedness that 59
exceeds an amount equal to nine per cent of its tax valuation. 60
(C) A school district shall not submit to a vote of the 62
electors the question of the issuance of securities in an amount 63
that will make the district's net indebtedness after the issuance 64
of the securities exceed an amount equal to four per cent of its 65
tax valuation, unless the superintendent of public instruction, 66
acting under policies adopted by the state board of education, 67
and the tax commissioner, acting under written policies of the 68
commissioner, consent to the submission. A request for the 69
consents shall be made at least thirty days prior to the election 70
at which the question is to be submitted except that the 71
superintendent of public instruction and the tax commissioner may 72
waive this thirty-day deadline or grant their consents after the 73
election if the school district shows good cause for such waiver 74
or consent after the election. 75
(D) In calculating the net indebtedness of a school 77
district none of the following shall be considered: 78
(1) Securities issued to acquire school buses and other 80
equipment used in transporting pupils or issued pursuant to 81
division (D) of section 133.10 of the Revised Code; 82
(2) Securities issued under division (F) of this section, 84
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under section 133.301 of the Revised Code, and, to the extent in 85
excess of the limitation stated in division (B) of this section, 86
under division (E) of this section; 87
(3) Indebtedness resulting from the dissolution of a joint 89
vocational school district under section 3311.217 of the Revised 90
Code, evidenced by outstanding securities of that joint 91
vocational school district; 92
(4) Loans, evidenced by any securities, received under 94
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the 95
Revised Code; 96
(5) Debt incurred under section 3313.374 of the Revised 98
Code;
(6) Debt incurred pursuant to division (B)(5) of section 101
3313.37 of the Revised Code to acquire computers and related
hardware.
(E) A school district may become a special needs district 103
as to certain securities as provided in this division (E). 104
(1) A board of education, by resolution, may declare its 106
school district to be a special needs district by determining 107
both of the following: 108
(a) The student population is not being adequately 110
serviced by the existing permanent improvements of the district. 111
(b) The district cannot obtain sufficient funds by the 113
issuance of securities within the limitation of division (B) of 114
this section to provide additional or improved needed permanent 115
improvements in time to meet the needs. 116
(2) The board of education shall certify a copy of that 118
resolution to the superintendent of public instruction with a 119
statistical report showing all of the following: 120
(a) A history of and a projection of the growth of the 122
student population; 123
(b) The history of and a projection of the growth of the 125
tax valuation; 126
(c) The projected needs; 128
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(d) The estimated cost of permanent improvements proposed 130
to meet such projected needs. 131
(3) The superintendent of public instruction shall certify 133
the district as an approved special needs district if the 134
superintendent finds both of the following: 135
(a) The district does not have available sufficient 137
additional funds from state or federal sources to meet the 138
projected needs. 139
(b) The projection of the potential average growth of tax 141
valuation during the next five years, according to the 142
information certified to the superintendent and any other 143
information the superintendent obtains, indicates a likelihood of 144
potential average growth of tax valuation of the district during 145
the next five years of an average of not less than three per cent 146
per year. The findings and certification of the superintendent 147
shall be conclusive. 148
(4) An approved special needs district may incur net 150
indebtedness by the issuance of securities in accordance with the 151
provisions of this chapter in an amount that does not exceed an 152
amount equal to the greater of the following: 153
(a) Nine per cent of the sum of its tax valuation plus an 155
amount that is the product of multiplying that tax valuation by 156
the percentage by which the tax valuation has increased over the 157
tax valuation on the first day of the sixtieth month preceding 158
the month in which its board determines to submit to the electors 159
the question of issuing the proposed securities; 160
(b) Nine per cent of the sum of its tax valuation plus an 162
amount that is the product of multiplying that tax valuation by 163
the percentage, determined by the superintendent of public 164
instruction, by which that tax valuation is projected to increase 165
during the next ten years. 166
(F) A school district may issue securities for emergency 168
purposes, in a principal amount that does not exceed an amount 169
equal to three per cent of its tax valuation, as provided in this 170
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division. 171
(1) A board of education, by resolution, may declare an 173
emergency if it determines both of the following: 174
(a) School buildings or other necessary school facilities 176
in the district have been wholly or partially destroyed, or 177
condemned by a constituted public authority, or that such 178
buildings or facilities are partially constructed, or so 179
constructed or planned as to require additions and improvements 180
to them before the buildings or facilities are usable for their 181
intended purpose, or that corrections to permanent improvements 182
are necessary to remove or prevent health or safety hazards. 183
(b) Existing fiscal and net indebtedness limitations make 185
adequate replacement, additions, or improvements impossible. 186
(2) Upon the declaration of an emergency, the board of 188
education may, by resolution, submit to the electors of the 189
district pursuant to section 133.18 of the Revised Code the 190
question of issuing securities for the purpose of paying the 191
cost, in excess of any insurance or condemnation proceeds 192
received by the district, of permanent improvements to respond to 193
the emergency need. 194
(3) The procedures for the election shall be as provided 196
in section 133.18 of the Revised Code, except that: 197
(a) The form of the ballot shall describe the emergency 199
existing, refer to this division as the authority under which the 200
emergency is declared, and state that the amount of the proposed 201
securities exceeds the limitations prescribed by division (B) of 202
this section; 203
(b) The resolution required by division (B) of section 205
133.18 of the Revised Code shall be certified to the county 206
auditor and the board of elections at least seventy-five days 207
prior to the election; 208
(c) The county auditor shall advise and, not later than 210
sixty-five days before the election, confirm that advice by 211
certification to, the board of education of the information 212
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required by division (C) of section 133.18 of the Revised Code; 213
(d) The board of education shall then certify its 215
resolution and the information required by division (D) of 216
section 133.18 of the Revised Code to the board of elections not 217
less than sixty days prior to the election. 218
(4) Notwithstanding division (B) of section 133.21 of the 220
Revised Code, the first principal payment of securities issued 221
under this division may be set at any date not later than sixty 222
months after the earliest possible principal payment otherwise 223
provided for in that division. 224
(G) The board of education may contract with an architect, 226
professional engineer, or other person experienced in the design 227
and implementation of energy conservation measures for an 228
analysis and recommendations pertaining to installations, 229
modifications of installations, or remodeling that would 230
significantly reduce energy consumption in buildings owned by the 231
district. The report shall include estimates of all costs of 232
such installations, modifications, or remodeling including costs 233
of design, engineering, installation, maintenance, repairs and 234
debt service, and estimates of the amounts by which energy 235
consumption and resultant operational and maintenance costs, as 236
defined by the department of education OHIO SCHOOL FACILITIES 237
COMMISSION, would be reduced. 238
If the board finds after receiving the report that the 240
amount of money the district would spend on such installations, 241
modifications, or remodeling is not likely to exceed the amount 242
of money it would save in energy and resultant operational and 243
maintenance costs over the ensuing ten years, the board may 245
submit to the department of education COMMISSION a copy of its 246
findings and a request for approval to incur indebtedness to 248
finance the making or modification of installations or the
remodeling of buildings for the purpose of significantly reducing 249
energy consumption. 250
If the department COMMISSION determines that the board's 252
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findings are reasonable, it shall approve the board's request. 254
Upon receipt of the department's COMMISSION'S approval, the 255
district may issue securities without a vote of the electors in a 257
principal amount not to exceed nine-tenths of one per cent of its 258
tax valuation for the purpose of making such installations, or 259
modifications, or remodeling, but the total net indebtedness of 260
the district without a vote of the electors incurred under this 261
and all other sections of the Revised Code shall not exceed one 262
per cent of the district's tax valuation. 263
So long as any securities issued under this division (G) 265
remain outstanding, the board of education shall monitor the 266
energy consumption and resultant operational and maintenance 267
costs of buildings in which installations or modifications have 269
been made or remodeling has been done pursuant to this division 270
(G) and shall maintain and annually update a report documenting 271
the reductions in energy consumption and resultant operational 272
and maintenance cost savings attributable to such installations, 273
modifications, or remodeling. The report shall be certified by 274
an architect or engineer independent of any person that provided 275
goods or services to the board in connection with the energy 276
conservation measures that are the subject of the report. The 277
resultant operational and maintenance cost savings shall be 278
certified by the school district treasurer. The report shall be 279
made available to the department of education COMMISSION upon 281
request.
(H) With the consent of the superintendent of public 283
instruction, a school district may incur without a vote of the 284
electors net indebtedness that exceeds the amounts stated in 285
divisions (A) and (G) of this section for the purpose of paying 287
costs of permanent improvements, if and to the extent that both 288
of the following conditions are satisfied: 289
(1) The fiscal officer of the school district estimates 291
that receipts of the school district from compensation derived 292
from or under agreements entered into pursuant to section 5709.82 293
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of the Revised Code, or distributions under division (C) of 294
section 5709.43 of the Revised Code, or any combination thereof, 295
are, after accounting for any appropriate coverage requirements, 296
sufficient in time and amount, and are committed by the 297
proceedings, to pay the debt charges on the securities issued to 298
evidence that indebtedness and payable from those receipts, and 299
the taxing authority of the district confirms the fiscal 300
officer's estimate, which confirmation is approved by the 301
superintendent of public instruction; 302
(2) The fiscal officer of the school district certifies, 304
and the taxing authority of the district confirms, that the 305
district, at the time of the certification and confirmation, 306
reasonably expects to have sufficient revenue available for the 307
purpose of operating such permanent improvements for their 308
intended purpose upon acquisition or completion thereof, and the 309
superintendent of public instruction approves the taxing 310
authority's confirmation. 311
The maximum maturity of securities issued under division 313
(H) of this section shall be the lesser of twenty years or the 314
maximum maturity calculated under section 133.20 of the Revised 315
Code. 316
Sec. 3313.372. (A) As used in this section, "energy 325
conservation measure" means an installation or modification of an 326
installation in, or remodeling of, a building, to reduce energy 327
consumption. It includes: 328
(1) Insulation of the building structure and systems 330
within the building; 331
(2) Storm windows and doors, multiglazed windows and 333
doors, heat absorbing or heat reflective glazed and coated window 334
and door systems, additional glazing, reductions in glass area, 335
and other window and door system modifications that reduce energy 336
consumption; 337
(3) Automatic energy control systems; 339
(4) Heating, ventilating, or air conditioning system 341
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modifications or replacements; 342
(5) Caulking and weatherstripping; 344
(6) Replacement or modification of lighting fixtures to 346
increase the energy efficiency of the system without increasing 347
the overall illumination of a facility, unless such increase in 348
illumination is necessary to conform to the applicable state or 349
local building code for the proposed lighting system; 350
(7) Energy recovery systems; 352
(8) Cogeneration systems that produce steam or forms of 354
energy such as heat, as well as electricity, for use primarily 355
within a building or complex of buildings; 356
(9) Any other modification, installation, or remodeling 358
approved by the department of education OHIO SCHOOL FACILITIES 360
COMMISSION as an energy conservation measure. 361
(B) A board of education of a city, exempted village, 363
local, or joint vocational school district may enter into an 364
installment payment contract for the purchase and installation of 365
energy conservation measures. The provisions of such installment 366
payment contracts dealing with interest charges and financing 367
terms shall not be subject to the competitive bidding 368
requirements of section 3313.46 of the Revised Code, and shall be 369
on the following terms: 370
(1) Not less than one-tenth of the costs thereof shall be 373
paid within two years from the date of purchase. 374
(2) The remaining balance of the costs thereof shall be 376
paid within ten years from the date of purchase. 377
An installment payment contract entered into by a board of 380
education under this section shall require the board to contract 381
in accordance with division (A) of section 3313.46 of the Revised
Code for the installation, modification, or remodeling of energy 383
conservation measures unless division (A) of section 3313.46 of 384
the Revised Code does not apply pursuant to division (B)(3) of 385
that section.
(C) The board may issue the notes of the school district 387
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signed by the president and the treasurer of the board and 388
specifying the terms of the purchase and securing the deferred 389
payments provided in this section, payable at the times provided 390
and bearing interest at a rate not exceeding the rate determined 391
as provided in section 9.95 of the Revised Code. The notes may 392
contain an option for prepayment and shall not be subject to 393
Chapter 133. of the Revised Code. In the resolution authorizing 394
the notes, the board may provide, without the vote of the 395
electors of the district, for annually levying and collecting 396
taxes in amounts sufficient to pay the interest on and retire the 397
notes, except that the total net indebtedness of the district 398
without a vote of the electors incurred under this and all other 399
sections of the Revised Code shall not exceed one per cent of the
district's tax valuation. Revenues derived from local taxes or 401
otherwise, for the purpose of conserving energy or for defraying 402
the current operating expenses of the district, may be applied to 403
the payment of interest and the retirement of such notes. The 404
notes may be sold at private sale or given to the contractor 405
under the installment payment contract authorized by division (B) 406
of this section.
(D) Debt incurred under this section shall not be included 408
in the calculation of the net indebtedness of a school district 409
under section 133.06 of the Revised Code. 410
(E) No school district board shall enter into an 412
installment payment contract under division (B) of this section 413
unless it first obtains a report of the costs of the energy 414
conservation measures and the savings thereof as described under 415
division (G) of section 133.06 of the Revised Code as a 416
requirement for issuing energy securities, makes a finding that 417
the amount spent on such measures is not likely to exceed the 418
amount of money it would save in energy costs and resultant 419
operational and maintenance costs as described in that division, 420
and the department of education OHIO SCHOOL FACILITIES COMMISSION 422
determines that the district board's findings are reasonable and 423
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approves the contract as described in that division. 424
The district board shall monitor the savings and maintain a 426
report of those savings, which shall be available to the 427
department COMMISSION in the same manner as required by division 429
(G) of section 133.06 of the Revised Code in the case of energy 430
securities.
Sec. 3318.01. As used in sections 3318.01 to 3318.20 of 439
the Revised Code: 440
(A) "State board OHIO SCHOOL FACILITIES COMMISSION" means 443
the state board of education COMMISSION created pursuant to 444
Section 4 of Article VI, Ohio Constitution, acting for itself and 446
on behalf of the state department of education, as agencies of 447
state government SECTION 3318.30 OF THE REVISED CODE.
(B) "Classroom facilities" means rooms in which pupils 449
regularly assemble in public school buildings to receive 450
instruction and education and such facilities and building 451
improvements for the operation and use of such rooms as may be 452
needed in order to provide a complete educational program, AND 453
MAY INCLUDE SPACE WITHIN WHICH A CHILD DAY-CARE FACILITY OR A 454
COMMUNITY RESOURCE CENTER IS HOUSED. 455
(C) "Project" means a project to construct or acquire 457
classroom facilities, or to reconstruct or make additions to 459
existent EXISTING classroom facilities, to be used for housing 460
the applicable school district and its functions.
(D) "School district" means a local, exempted village, or 462
city school district as such districts are defined in Chapter 463
3311. of the Revised Code, acting as an agency of state 464
government, performing essential governmental functions of state 465
government pursuant to sections 3318.01 and 3318.20 of the 466
Revised Code.
(E) "School district board" means the board of education 468
of a school district. 469
(F) "Net bonded indebtedness" means the difference between 471
the SUM OF THE par value of all outstanding and unpaid bonds and 472
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notes which a school district board is obligated to pay, together 474
with ANY AMOUNTS THE SCHOOL DISTRICT IS OBLIGATED TO PAY UNDER 475
LEASE-PURCHASE AGREEMENTS ENTERED INTO UNDER SECTION 3313.375 OF 476
THE REVISED CODE, AND the par value of bonds authorized by the 477
electors but not yet issued, the proceeds of which can lawfully 478
be used for the project, and the amount held in the sinking fund 479
and other indebtedness retirement funds for their redemption. 480
Notes issued for school buses in accordance with section 3327.08 481
of the Revised Code, notes issued in anticipation of the 482
collection of current revenues, and bonds issued to pay final 483
judgments shall not be considered in calculating the net bonded 484
indebtedness.
"Net bonded indebtedness" does not include indebtedness 486
arising from the acquisition of land to provide a site for 487
classroom facilities constructed, acquired, or added to pursuant 488
to sections 3318.01 to 3318.20 of the Revised Code. 489
(G) "Board of elections" means the board of elections of 491
the county containing the most populous portion of the school 492
district. 493
(H) "County auditor" means the auditor of the county in 495
which the greatest value of taxable property of such school 496
district is located. 497
(I) "Tax duplicates" means the general tax lists and 499
duplicates prescribed by sections 319.28 and 319.29 of the 500
Revised Code. 501
(J) "Required level of indebtedness" means: 503
(1) In, IN the case of a school district contained in the 506
first quartile of the most recent ranking of school districts
according to adjusted valuation per pupil compiled by the 507
department of education pursuant to section 3318.011 of the 508
Revised Code, five per cent of the total value of all property in 509
the district as listed and assessed for taxation on the tax 510
duplicates. 511
(2) In the case of a school district contained in the 513
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second quartile of such ranking, six per cent of such total value 514
of all property DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE 515
HUNDREDTH PERCENTILES, FIVE PER CENT OF VALUATION PLUS [TWO 517
ONE-HUNDREDTHS OF ONE PER CENT MULTIPLIED BY (THE PERCENTILE IN 519
WHICH THE DISTRICT RANKS MINUS ONE)<.
(3) In the case of all other school districts, seven per 521
cent of such total value of all property. 522
(K) "Required percentage of the basic project costs" 524
means:
(1) In, IN the case of a district contained in the first 527
decile of the most recent ranking of school districts according
to adjusted valuation per pupil compiled by the department of 528
education pursuant to section 3318.011 of the Revised Code, an 529
amount equal to zero; 530
(2) In the case of a district contained in the second 532
decile of such ranking, an amount equal to ten per cent of the 533
basic project costs; 534
(3) In the case of a district contained in the third 536
decile of such ranking, an amount equal to twenty per cent of the 537
basic project costs; 538
(4) In the case of a district contained in the fourth 540
decile of such ranking, an amount equal to thirty per cent of the 541
basic project costs; 542
(5) In the case of a district contained in the fifth 544
decile of such ranking, an amount equal to forty per cent of the 545
basic project costs; 546
(6) In the case of a district contained in the sixth 548
decile of such ranking, an amount equal to fifty per cent of the 549
basic project costs; 550
(7) In the case of a district contained in the seventh 552
decile of such ranking, an amount equal to sixty per cent of the 553
basic project costs; 554
(8) In the case of a district contained in the eighth 556
decile of such ranking, an amount equal to seventy per cent of 557
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the basic project costs; 558
(9) In the case of a district contained in the ninth 560
decile of such ranking, an amount equal to eighty per cent of the 561
basic project costs; 562
(10) In the case of a district contained in the tenth 564
decile of such ranking, an amount equal to ninety per cent of the 565
basic project costs DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE 566
HUNDREDTH PERCENTILES, ONE PER CENT OF THE BASIC PROJECT COSTS 567
TIMES THE PERCENTILE IN WHICH THE DISTRICT RANKS. 568
(L) "Basic project cost" means a cost amount determined in 570
accordance with a written policy RULES adopted UNDER SECTION 572
111.15 OF THE REVISED CODE by the superintendent of public 573
instruction, the director of budget and management, and the 574
director of the legislative budget office of the legislative 575
service commission and agreed to by them OHIO SCHOOL FACILITIES 576
COMMISSION. The basic project cost calculation shall take into 577
consideration the square footage and cost per square foot 578
necessary for the grade levels to be housed in the classroom 579
facilities, the variation across the state in construction and
related costs, THE COST OF THE INSTALLATION OF SITE UTILITIES AND 580
SITE PREPARATION, the cost of insuring the project until it is 581
completed, and the professional planning, administration, and 583
design fees that a district may have to pay to undertake a 584
classroom facilities project.
(M) "CHILD DAY-CARE FACILITY" MEANS SPACE WITHIN A 587
CLASSROOM FACILITY IN WHICH THE NEEDS OF INFANTS, TODDLERS, 588
PRESCHOOL CHILDREN, AND SCHOOL CHILDREN ARE PROVIDED FOR BY 589
PERSONS OTHER THAN THE PARENT OR GUARDIAN OF SUCH CHILDREN FOR 590
ANY PART OF THE DAY, INCLUDING PERSONS NOT EMPLOYED BY THE SCHOOL
DISTRICT OPERATING SUCH CLASSROOM FACILITY. 591
(N) "COMMUNITY RESOURCE CENTER" MEANS SPACE WITHIN A 594
CLASSROOM FACILITY IN WHICH COMPREHENSIVE SERVICES THAT SUPPORT 595
THE NEEDS OF FAMILIES AND CHILDREN ARE PROVIDED BY COMMUNITY 596
BASED SOCIAL SERVICE PROVIDERS. 597
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(O) "VALUATION" MEANS THE TOTAL VALUE OF ALL PROPERTY IN 599
THE DISTRICT AS LISTED AND ASSESSED FOR TAXATION ON THE TAX 600
DUPLICATES.
(P) "PERCENTILE" MEANS THE PERCENTILE IN WHICH THE 602
DISTRICT IS RANKED PURSUANT TO DIVISION (C) OF SECTION 3318.011 603
OF THE REVISED CODE.
(Q) "INSTALLATION OF SITE UTILITIES" MEANS THE 605
INSTALLATION OF A SITE DOMESTIC WATER SYSTEM, SITE FIRE 606
PROTECTION SYSTEM, SITE GAS DISTRIBUTION SYSTEM, SITE SANITARY 607
SYSTEM, SITE STORM DRAINAGE SYSTEM, AND SITE TELEPHONE AND DATA 608
SYSTEM.
(R) "SITE PREPARATION" MEANS THE EARTHWORK NECESSARY FOR 611
PREPARATION OF THE BUILDING FOUNDATION SYSTEM, THE PAVED 612
PEDESTRIAN AND VEHICULAR CIRCULATION SYSTEM, PLAYGROUNDS ON THE 613
PROJECT SITE, AND LAWN AND PLANTING ON THE PROJECT SITE. 614
Sec. 3318.011. For purposes of providing assistance under 623
sections 3318.01 to 3318.20 of the Revised Code, the department 624
of education shall annually do all of the following: 625
(A) Calculate the adjusted valuation per pupil of each 627
city, local, and exempted village school district according to 628
the formula set forth in section 3317.0213 of the Revised Code; 629
(B) Rank all such districts in order of adjusted valuation 631
per pupil from the district with the lowest adjusted valuation 632
per pupil to the district with the highest adjusted valuation per 633
pupil; 634
(C) Divide such ranking into quartiles with the first 636
quartile containing those twenty-five per cent of school 637
districts having the lowest adjusted valuation per pupil and the 638
fourth quartile containing those twenty-five per cent of school 639
districts having the highest adjusted valuation per pupil DIVIDE 640
SUCH RANKING INTO PERCENTILES WITH THE FIRST PERCENTILE 641
CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS HAVING THE LOWEST 642
ADJUSTED VALUATION PER PUPIL AND THE ONE-HUNDREDTH PERCENTILE 643
CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS HAVING THE 644
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HIGHEST ADJUSTED VALUATION PER PUPIL;
(D) Divide such ranking into deciles with the first decile 646
containing those ten per cent of school districts having the 647
lowest adjusted valuation per pupil and the tenth quartile 648
containing those ten per cent of school districts having the 649
highest adjusted valuation per pupil. 650
(E) Determine the school districts that have an adjusted 652
valuation per pupil that is greater than the median adjusted 653
valuation per pupil for all school districts in the state; 654
(E) CERTIFY THE INFORMATION DESCRIBED IN DIVISIONS (A) TO 657
(D) OF THIS SECTION TO THE OHIO SCHOOL FACILITIES COMMISSION. 658
Sec. 3318.02. (A) For purposes of Chapter 3318. SECTIONS 667
3318.01 TO 3318.31 of the Revised Code, the state board of 669
education OHIO SCHOOL FACILITIES COMMISSION shall periodically 670
perform an assessment of the classroom facility needs in the 671
state to identify school districts in need of additional 672
classroom facilities, or replacement or reconstruction of
existent classroom facilities, and the cost to each such district 673
of constructing or acquiring such additional facilities or making 674
such renovations.
(B) Based upon the most recent assessment conducted 676
pursuant to division (A) of this section, the state board of 677
education COMMISSION shall, in ascending order of the most 679
current ranking of school districts under division (B) of section
3318.011 of the Revised Code, conduct on-site visits to school 680
districts identified as having classroom facilities FACILITY 681
needs and to confirm DO BOTH OF THE FOLLOWING: 682
(1) CONFIRM the findings of the periodic assessment and to 685
further evaluate the facilities CLASSROOM FACILITY needs of the 686
district. The evaluation shall assess the district's need to 687
construct or acquire new classroom facilities and may include an 688
assessment of the district's need for building additions or for 689
the reconstruction of existent buildings in lieu of constructing 690
or acquiring replacement buildings.
17
In (2) EVALUATE THE PRACTICABILITY OF THE DISTRICT MEETING 693
ITS CLASSROOM FACILITY NEEDS THROUGH SPLIT SESSIONS, YEAR-ROUND
CLASSES, JOINT USE OF SCHOOL FACILITIES WITH ONE OR MORE OTHER 694
SCHOOL DISTRICTS, AND ANY OTHER MEANS THE COMMISSION CONSIDERS 695
PRACTICABLE FOR THE DISTRICT, AS WELL AS THE POTENTIAL EFFECTS 696
THAT MEETING THE DISTRICT'S FACILITY NEEDS BY SUCH MEANS WOULD 698
HAVE ON THE EDUCATION OF THE STUDENTS AFFECTED. 699
THE FIRST ROUND OF ON-SITE VISITS FIRST SUCCEEDING THE 701
EFFECTIVE DATE OF THIS AMENDMENT SHALL BE LIMITED TO THE SCHOOL 702
DISTRICTS IN THE FIRST THROUGH TWENTY-FIFTH PERCENTILES, 703
EXCLUDING DISTRICTS THAT ARE INELIGIBLE FOR FUNDING UNDER THIS 704
CHAPTER PURSUANT TO SECTION 3318.04 OF THE REVISED CODE. THE 706
SECOND ROUND OF ON-SITE VISITS SHALL BE LIMITED TO THE SCHOOL 707
DISTRICTS IN THE FIRST THROUGH THIRTIETH PERCENTILES, EXCLUDING 708
DISTRICTS THAT ARE INELIGIBLE FOR FUNDING UNDER THIS CHAPTER 709
PURSUANT TO SECTION 3318.04 OF THE REVISED CODE. EACH SUCCEEDING 710
ROUND OF ON-SITE VISITS SHALL BE LIMITED TO THE PERCENTILES 711
INCLUDED IN THE IMMEDIATELY PRECEDING ROUND OF ON-SITE VISITS 712
PLUS THE NEXT FIVE PERCENTILES. EXCEPT FOR THE FIRST ROUND OF 713
ON-SITE VISITS, NO ROUND OF ON-SITE VISITS SHALL COMMENCE UNLESS 714
EIGHTY PER CENT OF THE DISTRICTS FOR WHICH ON-SITE VISITS WERE 715
PERFORMED DURING THE IMMEDIATELY PRECEDING ROUND, HAVE HAD 716
PROJECTS APPROVED UNDER SECTION 3318.04 OF THE REVISED CODE. 718
(C) NOTWITHSTANDING DIVISION (B) OF THIS SECTION, IN any 722
biennium, the state board COMMISSION may limit the number of 723
districts for which it conducts on-site visits based upon its 724
projections of the moneys available and moneys necessary to 725
undertake projects under this chapter SECTIONS 3318.01 TO 3318.31 726
OF THE REVISED CODE for the current biennium. 727
Sec. 3318.03. Upon conducting the on-site evaluation under 736
section 3318.02 of the Revised Code, the department of education 737
OHIO SCHOOL FACILITIES COMMISSION shall make a determination of 739
THE PRACTICABILITY OF MEETING THE DISTRICT'S CLASSROOM FACILITY 740
NEEDS AS INDICATED IN DIVISION (B)(2) OF SECTION 3318.02 OF THE 741
18
REVISED CODE; the needs of the school district for additional
classroom facilities; the number of classroom facilities to be 743
included in a project and the basic project cost of constructing, 744
acquiring, reconstructing, or making additions to each such 745
facility; IF THE SCHOOL DISTRICT IS RANKED IN THE ELEVENTH
THROUGH ONE-HUNDREDTH PERCENTILES, the amount of such cost that 746
the school district can supply from available funds, by the 749
issuance of bonds previously authorized by the electors of the 750
school district the proceeds of which can lawfully be used for 751
the project, and by the issuance of bonds under section 3318.05 752
of the Revised Code; and the remaining amount of such cost that 753
shall be supplied by the state. The state board COMMISSION shall 754
make a favorable determination IN FAVOR OF CONSTRUCTING, 755
ACQUIRING, RECONSTRUCTING, OR MAKING ADDITIONS TO A CLASSROOM 756
FACILITY only upon evidence that the proposed project conforms to 758
sound educational practice, that it is in keeping with the 759
orderly process of school district reorganization and 760
consolidation, and that the actual or projected enrollment in 761
each classroom facility proposed to be included in the project is 763
at least three hundred fifty pupils. Exceptions shall be
authorized only in those districts where topography, sparcity of 765
population, and other factors make larger schools impracticable. 766
Sections 125.81 and 153.04 of the Revised Code shall not 768
apply to classroom facilities constructed under sections 3318.01 769
to 3318.20 of the Revised Code. 770
Sec. 3318.04. If the state board of education OHIO SCHOOL 780
FACILITIES COMMISSION makes a determination under section 3318.03 781
of the Revised Code in favor of the proposed project 782
CONSTRUCTING, ACQUIRING, RECONSTRUCTING, OR MAKING ADDITIONS TO A 783
CLASSROOM FACILITY, the project shall be conditionally approved 784
and the state board COMMISSION thereupon shall reserve and 785
encumber from the total funds appropriated for the purpose of 787
sections 3318.01 to 3318.20 of the Revised Code, the estimated 788
amount of the state's portion of the basic project cost. Such 789
19
conditional approval shall be submitted to the controlling board 790
for approval thereof. The controlling board shall forthwith 791
approve or reject the state board's COMMISSION'S determination, 792
conditional approval, and the estimated amount of the state's 794
portion of the basic project cost. In the event of approval 795
thereof by the controlling board, the superintendent of public 796
instruction COMMISSION shall certify such conditional approval to 798
the school district board.
THE BASIC PROJECT COST FOR A PROJECT APPROVED UNDER THIS 801
SECTION SHALL NOT EXCEED THE COST THAT WOULD OTHERWISE HAVE TO BE
INCURRED IF THE CLASSROOM FACILITIES TO BE CONSTRUCTED, ACQUIRED, 802
OR RECONSTRUCTED, OR THE ADDITIONS TO BE MADE TO CLASSROOM 803
FACILITIES, UNDER SUCH PROJECT MEET, BUT DO NOT EXCEED, THE 804
SPECIFICATIONS OF STANDARD BUILDING DESIGNS THAT SHALL BE ADOPTED 805
BY THE COMMISSION. NO SCHOOL DISTRICT GIVEN CONDITIONAL APPROVAL 806
FOR A PROJECT UNDER THIS SECTION, AND WHICH IS RANKED IN THE 807
FIRST THROUGH TENTH PERCENTILES, SHALL BE REQUIRED TO PAY ANY 808
PORTION OF THE BASIC PROJECT COST. 809
From and after the date of such ANY certification OF 811
CONDITIONAL APPROVAL, no bonds or notes shall be issued by a 813
school district board without the approval of the state board 814
COMMISSION for the purpose of acquiring classroom facilities so 816
long as the state board's COMMISSION'S conditional approval of 818
such school district's project remains in effect.
NO SCHOOL DISTRICT THAT HAS PREVIOUSLY RECEIVED FUNDING 820
UNDER ANY VERSION OF SECTIONS 3318.01 TO 3318.20 OF THE REVISED 822
CODE SHALL HAVE A PROJECT CONDITIONALLY APPROVED PURSUANT TO THIS 823
SECTION FOR A PERIOD OF TEN YEARS AFTER THE DATE UPON WHICH THE 824
ELECTORS OF SUCH DISTRICT APPROVED A LEVY PURSUANT TO ANY VERSION 825
OF SECTION 3318.06 OF THE REVISED CODE. 826
Sec. 3318.041. A SCHOOL DISTRICT RANKED IN THE FIRST 828
THROUGH TWENTY-FIFTH PERCENTILES MAY ADOPT AND CERTIFY TO THE 829
OHIO SCHOOL FACILITIES COMMISSION A RESOLUTION SPECIFYING A 830
PROPOSED PROJECT THAT MEETS THE REQUIREMENTS OF THIS CHAPTER AND 831
20
THE NEEDS OF THE DISTRICT, AS CONFIRMED THROUGH AN ON-SITE VISIT 832
PURSUANT TO SECTION 3318.02 OF THE REVISED CODE. THE COMMISSION
SHALL CONSIDER SUCH PROJECTS FOR CONDITIONAL APPROVAL PURSUANT TO 833
SECTION 3318.03 AND SHALL ENCUMBER FUNDS PURSUANT TO SECTION 834
3318.04 OF THE REVISED CODE IN THE ORDER IN WHICH SUCH 835
RESOLUTIONS ARE RECEIVED.
Sec. 3318.05. The conditional approval of the state board 844
of education OHIO SCHOOL FACILITIES COMMISSION FOR A PROJECT OF A 846
SCHOOL DISTRICT RANKED IN THE FIRST THROUGH TENTH PERCENTILES
SHALL LAPSE AND THE AMOUNT RESERVED AND ENCUMBERED FOR SUCH 847
PROJECT SHALL BE RELEASED UNLESS THE SCHOOL DISTRICT BOARD 848
ACCEPTS SUCH CONDITIONAL APPROVAL WITHIN ONE HUNDRED TWENTY DAYS 849
OF THE DATE OF CERTIFICATION OF THE CONDITIONAL APPROVAL TO THE 850
SCHOOL DISTRICT BOARD AND THE ELECTORS OF THE SCHOOL DISTRICT
VOTE FAVORABLY ON THE PROPOSITION DESCRIBED IN DIVISION (B) OF 851
THIS SECTION WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. 852
THE CONDITIONAL APPROVAL OF THE OHIO SCHOOL FACILITIES COMMISSION 853
for a project OF A SCHOOL DISTRICT RANKED IN THE ELEVENTH THROUGH 854
ONE HUNDREDTH PERCENTILES shall lapse and the amount reserved and 856
encumbered for such project shall be released unless, THE SCHOOL 857
DISTRICT BOARD ACCEPTS SUCH CONDITIONAL APPROVAL within one
hundred twenty days following the date of certification of the 859
conditional approval to the school district board or such other 860
time as may be fixed by the state board for good cause shown, the 861
school district board accepts such conditional approval and the 862
electors of the school district vote favorably on both of the 863
propositions described in divisions (A) and (B) of this section, 864
which WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. THE 865
propositions DESCRIBED IN DIVISIONS (A) AND (B) OF THIS SECTION 866
shall be combined in a single proposal. The state board of 867
education may reconsider and reprioritize a school district's 868
project if IF the district board or the district's electors fail 869
to meet such requirements AND THE AMOUNT RESERVED AND ENCUMBERED 870
FOR THE DISTRICT'S PROJECT IS RELEASED, THE DISTRICT SHALL BE 871
21
GIVEN FIRST PRIORITY FOR PROJECT FUNDING AS SUCH FUNDS BECOME 872
AVAILABLE.
(A) On the question of issuing bonds of the school 874
district board, for the school district's portion of the basic 875
project cost, in either whatever amount may be necessary to raise 876
the net bonded indebtedness of the school district to within five 877
thousand dollars of the required level of indebtedness calculated 878
for the year preceding the year in which the resolution declaring 879
the necessity of the election is adopted or an amount equal to 880
the required percentage of the basic project costs, whichever is 881
greater; provided, that such question need not be submitted if at 882
the time of the passage of such resolution the net bonded 883
indebtedness of the school district (1) aggregates ninety-five 884
per cent or more of the required level of indebtedness, or (2) is 885
within twenty thousand dollars of such level and the required 886
percentage of the basic project costs is not greater than either 887
the amount necessary to raise the net bonded indebtedness of the 888
school district to within five thousand dollars of the required 889
level of indebtedness or twenty thousand dollars; and 890
(B) On the question of levying a tax the proceeds of which 893
shall be used to pay the cost of maintaining the classroom 894
facilities included in the project, except that in any year the
district's adjusted valuation per pupil is greater than the 895
state-wide median adjusted valuation per pupil one-half of the 896
proceeds of the tax shall be used for such maintenance and 897
one-half of such proceeds shall be used to pay the cost of the 898
purchase of the classroom facilities from the state under the 899
provisions of sections 3318.01 to 3318.20 of the Revised Code. 900
Such tax shall be at the rate of one-half mill for each dollar of 901
valuation except that in those years in which the state 902
superintendent of public instruction OHIO SCHOOL FACILITIES 903
COMMISSION, pursuant to section 3318.051 of the Revised Code, 905
requires the district to increase the tax rate to an amount 906
greater than one-half mill, but not in excess of four mills, 907
22
until the purchase price is paid but in no case longer than 908
twenty-three years. Proceeds of the tax to be used for
maintenance of the classroom facilities shall be deposited into a 909
separate fund established by the school district for such 910
purpose.
Sec. 3318.051. (A) The purpose of this section is to 919
ensure that no school district that constructs, acquires, 920
reconstructs, or makes additions to classroom facilities pursuant 921
to sections 3318.01 to 3318.20 of the Revised Code increases its 922
tax rate for debt service solely to avoid making payments as 923
described in division (B) of section 3318.05 of the Revised Code 924
in excess of one-half mill.
In furtherance of this public policy, the state 926
superintendent of public instruction OHIO SCHOOL FACILITIES 927
COMMISSION annually shall review the tax budget of each such 928
school district and such additional information as the state 929
superintendent COMMISSION may require from the school district 930
and make a determination as to whether the district's tax rate 932
for debt service, excluding the amount of debt service paid for 933
such classroom facilities under sections 3318.01 to 3318.20 of 935
the Revised Code, is reasonably necessary for the retirement of 936
the school district's bonded indebtedness. If the state 937
superintendent COMMISSION determines that the tax rate for debt 939
service excluding the amount paid for the construction, 940
acquisition, reconstruction, or additions to of classroom 941
facilities under such sections is not reasonably necessary for 942
the retirement of the district's bonded indebtedness, the state 943
superintendent COMMISSION may require the district to increase 944
its tax rate for the payments described under division (B) of 946
section 3318.05 of the Revised Code to an amount greater than
one-half mill, but not exceeding four mills. In determining the 947
tax rate necessary for the retirement of a school district's 948
bonded indebtedness, the state superintendent COMMISSION, in 949
accordance with the guidelines established pursuant to division 951
23
(B) of this section, may disregard that portion of the tax rate 952
to retire bonded indebtedness issued after the effective date of 953
that district's agreement to construct, acquire, reconstruct, or 955
make additions to classroom facilities under sections 3318.01 to 956
3318.20 of the Revised Code.
(B) The state superintendent COMMISSION shall establish 958
guidelines to conduct the review described in division (A) of 960
this section. In reviewing the tax budget of a school district 961
and determining the tax rate for the payments described under 962
division (B) of section 3318.05 of the Revised Code, the state 963
superintendent COMMISSION shall exempt any debt service payments 965
required for constructing, acquiring, reconstructing, or adding 966
to classroom facilities under sections 3318.01 to 3318.20 of the 967
Revised Code and may exempt debt service payments required for 968
any other purpose.
(C) For the period that payments under division (B) of 970
section 3318.05 of the Revised Code are required, each school 971
district shall annually submit a copy of its tax budget to the 972
state superintendent COMMISSION within five working days of its 974
adoption pursuant to section 5705.28 of the Revised Code. The 975
state superintendent COMMISSION shall make a determination in 977
accordance with this section within thirty days of the date upon 978
which a school district submits its tax budget.
(D) If a county budget commission considers it necessary 980
to modify any tax rate for debt service contained in the tax 981
budget of a school district constructing, acquiring, 982
reconstructing, or adding to classroom facilities from the state 984
pursuant to sections 3318.01 to 3318.20 of the Revised Code due 985
to a change in the district's tax duplicates or the issuance by 986
the district of new bonded indebtedness, the state superintendent 987
OHIO SCHOOL FACILITIES COMMISSION may review these changes in 988
accordance with division (B) of this section for the purpose of 989
reducing the district's tax rate for the payments described in 990
division (B) of section 3318.05 of the Revised Code, provided 991
24
such rate shall not be less than one-half mill. 992
Sec. 3318.06. After receipt of the conditional approval of 1,001
the state board of education OHIO SCHOOL FACILITIES COMMISSION, 1,003
the school district board by a majority of all of its members 1,004
shall, if it desires to proceed with the project, declare all of 1,005
the following by resolution:
(A) That IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH 1,007
ONE HUNDREDTH PERCENTILES, THAT with a net bonded indebtedness of 1,008
within five thousand dollars of the required level of 1,009
indebtedness or by issuing bonds in an amount equal to the 1,010
required percentage of the project costs, the district is unable 1,011
to provide adequate classroom facilities without assistance from 1,012
the state;
(B) That to qualify for such state assistance it is 1,014
necessary to levy a tax outside the ten-mill limitation the 1,015
proceeds of which shall be used to pay the cost of maintaining 1,017
the classroom facilities included in the project, except that in
any year the district's adjusted valuation per pupil is greater 1,018
than the state-wide median adjusted valuation per pupil one-half 1,019
of the proceeds of the tax shall be used for such maintenance and 1,020
one-half of such proceeds shall be used to pay the cost of the 1,021
purchase of the classroom facilities from the state; 1,022
(C) That the question of such tax levy shall be submitted 1,024
to the electors of the school district at the next general or 1,025
primary election, if there be a general or primary election not 1,026
less than seventy-five and not more than ninety-five days after 1,027
the day of the adoption of such resolution or, if not, at a 1,028
special election to be held at a time specified in the resolution 1,029
which shall be not less than seventy-five days after the day of 1,030
the adoption of the resolution and which shall be in accordance 1,031
with the requirements of section 3501.01 of the Revised Code. 1,032
Such resolution shall also state, if such be the case, that 1,034
the question of issuing bonds of the board shall be combined in a 1,035
single proposal with the question of such tax levy. More than 1,036
25
one election under this section may be held in any one calendar 1,037
year. Such resolution shall specify both of the following: 1,038
(1) That the rate which it is necessary to levy shall be 1,040
at the rate of one-half mill for each one dollar of valuation 1,041
except that in those years in which the state superintendent of 1,042
public instruction COMMISSION, pursuant to section 3318.051 of 1,044
the Revised Code, requires the district to increase the tax rate
to an amount greater than one-half mill, but not in excess of 1,045
four mills, and that such tax shall be levied until the purchase 1,046
price is paid but in no case longer than twenty-three years; 1,047
(2) That the proceeds of the tax shall be used to pay the 1,049
cost of maintaining the classroom facilities included in the 1,050
project, except in any year the district's adjusted valuation per 1,051
pupil is greater than the statewide median adjusted valuation per 1,052
pupil one-half of the proceeds of the tax shall be used for such 1,053
maintenance and one-half of the proceeds of the tax shall be used 1,054
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. 1,055
A copy of such resolution shall after its passage and not 1,057
less than seventy-five days prior to the date set therein for the 1,058
election be certified to the county board of elections. 1,059
If the question of issuing bonds of the board is to be 1,061
combined with the question of levying the tax, the resolution of 1,062
the school district board, in addition to meeting other 1,063
applicable requirements of section 133.18 of the Revised Code, 1,064
shall state that the amount of bonds to be issued will be either 1,065
whatever amount may be necessary to raise the net bonded 1,066
indebtedness of the school district to within five thousand 1,067
dollars of the required level of indebtedness calculated for the 1,068
year preceding the year in which such resolution is adopted or an 1,069
amount equal to the required percentage of the basic project 1,070
costs, whichever is greater and state that the maximum maturity 1,071
of the bonds which, notwithstanding section 133.20 of the Revised 1,072
Code, may be any number of years not exceeding twenty-three as 1,073
26
determined by the board. In estimating the amount of bonds to be 1,074
issued, the board shall take into consideration the amount of 1,075
moneys then in the bond retirement fund and the amount of moneys 1,076
to be collected for and disbursed from the bond retirement fund 1,077
during the remainder of the year in which the resolution of 1,078
necessity is adopted.
Notice of the election shall include the fact that the tax 1,080
levy shall be at the rate of one-half mill for each one dollar of 1,081
valuation except that in those years in which the superintendent 1,082
COMMISSION, pursuant to section 3318.051 of the Revised Code, 1,084
requires the district to increase the tax rate to an amount 1,085
greater than one-half mill, but not in excess of four mills, that 1,087
the levy shall be made until the purchase price is paid but in no 1,088
case longer than twenty-three years, and that the proceeds of the 1,089
tax shall be used to pay the cost of maintaining the classroom 1,090
facilities included in the project, except in any year the 1,091
district's adjusted valuation per pupil is greater than the
statewide median adjusted valuation per pupil one-half of the 1,092
proceeds of the tax shall be used for such maintenance and 1,093
one-half of the proceeds of the tax shall be used to pay the cost 1,094
of the purchase of the classroom facilities from the state under 1,095
sections 3318.01 to 3318.20 of the Revised Code.
The form of the ballot to be used at such election shall 1,097
be: 1,098
"A majority affirmative vote is necessary for passage. 1,100
Shall bonds be issued by the Board of Education of the 1,102
............ (here insert name of school district) for the 1,103
purpose of ............ (here insert purpose of bond issue) in 1,104
either an amount sufficient to raise the net indebtedness of the 1,105
school district to within five thousand dollars of ............ 1,106
(here insert five, six, or seven per cent depending on the 1,107
district's required level of indebtedness) of the total value of 1,108
all property in the school district as listed and assessed for 1,109
taxation on the tax duplicate for the year ............ (here 1,110
27
insert the year preceding the year in which the resolution 1,111
declaring the necessity of the election was adopted) or an amount 1,113
equal to ............ (here insert the required percentage of the 1,114
basic project costs), whichever is greater, and a levy of taxes 1,115
be made outside of the ten-mill limitation for a maximum period 1,116
of ............ (here insert longest maturity) years to pay the 1,117
principal and interest of such bonds, the amount of such bonds 1,118
being estimated to be ............ (here insert estimated amount 1,119
of bond issue) for which the levy of taxes is estimated by the 1,120
county auditor to average ............ (here insert number of 1,121
mills) mills for each one dollar of valuation, which amounts to 1,122
............ (here insert rate expressed in dollars and cents) 1,123
for each one hundred dollars of valuation?" 1,124
and 1,126
"Shall an additional levy of taxes be made for the benefit 1,128
of the ............ (name of school district), the proceeds of 1,129
which shall be used to pay the cost of maintaining the classroom 1,131
facilities included in the project, except that in any year the 1,132
district's adjusted valuation per pupil is greater than the
state-wide median adjusted valuation per pupil one-half of the 1,133
proceeds of the tax shall be used for such maintenance and 1,134
one-half of such proceeds shall be used to pay the cost of the 1,135
purchase of classroom facilities from the state, at the rate of 1,136
one-half mill for each one dollar of valuation except that in 1,137
those years in which the state superintendent of public 1,138
instruction OHIO SCHOOL FACILITIES COMMISSION, pursuant to 1,139
section 3318.051 of the Revised Code, requires the district to 1,140
increase the tax rate to an amount greater than one-half mill, 1,141
but not in excess of four mills, until the purchase price is paid 1,142
but in no case longer than twenty-three years? 1,143
28
_______________________________________________ 1,145
FOR THE BOND ISSUE AND TAX LEVY 1,146
_______________________________________________ 1,147
AGAINST THE BOND ISSUE AND TAX LEVY 1,148
_______________________________________________ " 1,149
Where it is not necessary to include the question of 1,152
issuing bonds of the school district board with the question of 1,153
levying the tax, the first paragraph of the foregoing ballot form 1,154
shall be omitted and the question to be voted on shall be "For 1,155
the Tax Levy" and "Against the Tax Levy." 1,156
(D) If it is necessary for the school district to acquire 1,158
a site for the classroom facilities to be acquired pursuant to 1,159
sections 3318.01 to 3318.20 of the Revised Code, the district 1,160
board may propose either to issue bonds of the board or to levy a 1,161
tax to pay for the acquisition of such site, and may combine the 1,162
question of doing so with the questions specified in division (C)
of this section. Bonds issued under this division for the 1,163
purpose of acquiring a site are a general obligation of the 1,164
school district and are Chapter 133. securities. 1,165
The form of that portion of the ballot to include the 1,167
question of either issuing bonds or levying a tax for site 1,168
acquisition purposes shall be one of the following: 1,169
(1) "Shall bonds be issued by the board of education of 1,171
the ......... (name of the school district) for the purpose of 1,172
.......... (purpose of the bond issue, which shall be for the 1,173
purpose of acquiring a site for classroom facilities) in the 1,174
principal amount of ........ (principal amount of the bond
issue), to be repaid annually over a maximum period of ......... 1,175
(maximum number of years over which the principal of the bonds 1,176
may be paid) years, and an annual levy of property taxes be made 1,177
outside the ten-mill limitation, estimated by the county auditor 1,178
to average over the repayment period of the bond issue ....... 1,179
(number of mills) mills for each one dollar of tax valuation, 1,180
which amount to ....... (rate expressed in dollars and cents) for
29
each one hundred dollars of valuation?" 1,181
(2) "Shall an additional levy of taxes be made for the 1,183
benefit of the ......... (name of the school district) ......... 1,184
for the purpose ......... (purpose of the levy, which shall be 1,185
for the purpose of acquiring a site for classroom facilities) in 1,186
the sum of ......... (annual amount the levy is to produce) and a 1,187
levy of taxes to be made outside of the ten-mill limitation 1,188
estimated by the county auditor to average ........ (number of 1,189
mills) mills for each one hundred dollars of valuation, for a
period of ......... (number of years the millage is to be 1,190
imposed) years?"
Where it is necessary to combine the question of issuing 1,192
bonds of the school district and levying a tax as described in 1,193
division (C) of this section with the question of issuing bonds 1,194
of the school district for acquisition of a site, the question 1,195
specified in division (C) of this section to be voted on shall be 1,196
"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 1,197
include the question of issuing bonds as described in division 1,198
(C) of this section, the question specified in that division to 1,199
be voted on shall be "For the Bond Issue and the Tax Levy" and 1,200
"Against the Bond Issue and the Tax Levy."
Where it is necessary to combine the question of issuing 1,202
bonds of the school district and levying a tax as described in 1,203
division (C) of this section with the question of levying a tax 1,204
for the acquisition of a site, the question specified in division 1,205
(C) of this section to be voted on shall be "For the Bond Issue 1,206
and the Tax Levies" and "Against the Bond Issue and the Tax
Levies." In the event it is not necessary to include the 1,207
question of issuing bonds as described in division (C) of this 1,208
section, the question specified in that division to be voted on 1,209
shall be "For the Tax Levies" and "Against the Tax Levies." 1,210
If a majority of those voting upon a proposition hereunder 1,212
which includes the question of issuing bonds vote in favor 1,213
30
thereof, and if the agreement provided for by section 3318.08 of 1,214
the Revised Code has been entered into, the school district board 1,215
may proceed under Chapter 133. of the Revised Code, with the 1,216
issuance of bonds or bond anticipation notes in accordance with 1,217
the terms of the agreement. 1,218
Sec. 3318.07. The board of elections shall certify the 1,227
result of the election to the tax commissioner, to the auditor of 1,228
the county or counties in which the school district is located, 1,229
to the treasurer of the school district board, and to the state 1,230
board of education OHIO SCHOOL FACILITIES COMMISSION. The 1,231
necessary tax levy for debt service on the bonds shall be 1,232
included in the annual tax budget that is certified to the county 1,233
budget commission.
Sec. 3318.08. If the requisite favorable vote on the 1,242
election is obtained, the state board of education OHIO SCHOOL 1,244
FACILITIES COMMISSION, upon certification of the results of the 1,245
election to it, shall enter into a written agreement with the 1,246
school district board for the construction and sale of the 1,247
project, which agreement shall include, but need not be limited 1,248
to, the following provisions:
(A) The IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH 1,250
ONE HUNDREDTH PERCENTILES, THE sale and issuance of bonds or 1,251
notes in anticipation thereof, as soon as practicable after the 1,252
execution of the agreement, in either an amount which will raise 1,253
the net bonded indebtedness of the school district, as of the 1,254
date of the resolution authorizing the issuance of such bonds or 1,255
notes, to within five thousand dollars of the required level of 1,256
indebtedness calculated for the year preceding the year in which 1,257
the resolution declaring the necessity of the election was 1,259
adopted or an amount equal to the required percentage of the 1,260
basic project costs, whichever is greater; provided, that if at 1,261
that time the county treasurer of each county in which the school 1,262
district is located has not commenced the collection of taxes on 1,263
the general duplicate of real and public utility property for 1,264
31
such year, the school district board shall authorize the issuance 1,265
of a first installment of bond anticipation notes in an amount 1,266
specified by the agreement, which amount shall not exceed an 1,267
amount necessary to raise the net bonded indebtedness of the 1,268
school district as to the date of such authorizing resolution to 1,269
within five thousand dollars of the required level of 1,270
indebtedness for the preceding year. In the event that a first 1,271
installment of bond anticipation notes is issued, the school 1,272
district board shall, as soon as practicable after the county 1,273
treasurer of each county in which the school district is located 1,274
has commenced the collection of taxes on the general duplicate of 1,275
real and public utility property for the year in which the 1,276
resolution declaring the necessity of the election was adopted, 1,277
authorize the issuance of a second and final installment of bond 1,278
anticipation notes or a first and final issue of bonds. The 1,279
combined value of the first and second installment of bond 1,280
anticipation notes or the value of the first and final issue of 1,281
bonds shall be equal to either an amount which will raise the net 1,282
indebtedness of the school district as of the date of such 1,283
authorizing resolution to within five thousand dollars of the 1,284
required level of indebtedness, or an amount equal to the 1,285
required percentage of the project costs, whichever is greater. 1,286
The proceeds of any such bonds shall be used first to retire any 1,287
bond anticipation notes. Otherwise, the proceeds of such bonds 1,288
and of any bond anticipation notes, except the premium and 1,289
accrued interest thereon, shall be deposited in the school
district's project construction fund. In determining the amount 1,290
of net indebtedness for the purpose of fixing the amount of an 1,291
issue of either bonds or bond anticipation notes, gross 1,292
indebtedness shall be reduced by moneys in the bond retirement 1,293
fund only to the extent of the moneys therein on the first day of 1,294
the year preceding the year in which the resolution authorizing 1,295
such bonds or notes is adopted. Should there be a decrease in 1,297
the tax valuation of the school district so that the amount of 1,298
32
indebtedness which can be incurred on the tax duplicates for the 1,299
year in which the resolution declaring the necessity of the 1,300
election was adopted is less than the amount of the first 1,301
installment of bond anticipation notes, there shall be paid from 1,302
the school district's project construction account to the school 1,303
district's bond retirement fund to be applied against such notes 1,304
an amount sufficient to cause the net indebtedness of the school 1,305
district, as of the first day of the year following the year in 1,306
which the resolution declaring the necessity of the election was 1,307
adopted, to be within five thousand dollars of the required level 1,308
of indebtedness for the year in which that resolution was 1,309
adopted. The maximum amount of indebtedness to be incurred by 1,310
any school district board as its share of the cost of the project 1,311
is either an amount which will cause its net indebtedness, as of 1,312
the first day of the year following the year in which the 1,313
resolution declaring the necessity of the bond issue was adopted, 1,314
to be within five thousand dollars of the required level of 1,315
indebtedness calculated for the year preceding the year in which 1,316
that resolution was adopted or an amount equal to the required 1,318
percentage of the basic project costs, whichever is greater. All 1,319
bonds and bond anticipation notes shall be issued in accordance 1,320
with Chapter 133. of the Revised Code, and notes may be renewed 1,321
as provided in section 133.22 of the Revised Code. 1,322
(B) The transfer of such funds of the school district 1,324
board available for the project, together with the proceeds of 1,325
the sale of the bonds or notes, except premium, accrued interest, 1,326
and interest included in the amount of the issue, to the school 1,327
district's project construction account in the school district's 1,328
depository; 1,329
(C) The levy of the tax authorized at the election for the 1,331
payment of maintenance costs or the cost of purchasing the 1,333
classroom facilities;
(D) Ownership of the project during the period of 1,335
construction, which shall be divided between the state COMMISSION 1,337
33
and the school district board in proportion to their respective 1,338
contributions to the school district's project construction 1,339
account; 1,340
(E) The transfer of the state's interest in the project to 1,342
the school district upon completion of the project; 1,343
(F) The insurance of the project by the school district 1,345
from the time there is an insurable interest therein and so long 1,346
as any part of the purchase price remains unpaid, in such amounts 1,347
and against such risks as the state board COMMISSION shall 1,348
require; provided, that the cost of any required insurance until 1,350
the project is completed shall be a part of the basic project 1,351
cost;
(G) The certification by the director of budget and 1,353
management that funds are available and have been set aside to 1,354
meet the state's share of the basic project cost as approved by 1,356
the controlling board pursuant to section 3318.04 of the Revised 1,357
Code, such certification to consider any necessary revision of 1,358
the state's share by the superintendent of public instruction 1,359
required by changes in the school district's ability to provide 1,360
more or less local funds than was estimated at the time of the 1,361
conditional approval under section 3318.04 of the Revised Code; 1,362
(H) Authorization of the school district board to 1,364
advertise for and receive construction bids for the project, for 1,365
and on behalf of the state board COMMISSION, and to award 1,366
contracts in the name of the state subject to approval by the 1,368
superintendent of public instruction COMMISSION; 1,369
(I) Provisions for the disbursement of moneys from the 1,371
school district's project account upon issuance by the 1,372
superintendent of public instruction COMMISSION of vouchers for 1,373
work done to be certified to the superintendent COMMISSION by the 1,375
treasurer of the school district board; 1,377
(J) Disposal of any balance left in the school district's 1,379
project construction account upon completion of the project; 1,380
(K) Prohibition against alienation of any interest in the 1,382
34
project by the school district board or its successor in interest 1,383
without the consent of the state board COMMISSION so long as any 1,384
part of the purchase price of the project remains unpaid, but in 1,386
no case longer than twenty-three years; 1,387
(L) Limitations upon use of the project or any part of it 1,389
so long as any part of the purchase price of the project remains 1,390
unpaid, but in no case longer than twenty-three years; 1,391
(M) Suspension of the power to issue bonds or notes by the 1,393
school district board for permanent improvements without the 1,394
prior consent of the state board COMMISSION for so long as any 1,395
part of the purchase price of the project remains unpaid, but in 1,397
no case longer than twenty-three years; 1,398
(N) Provision for vesting absolute interest in the project 1,400
in the school district board when the purchase price has been 1,401
paid or at the expiration of the period of twenty-three years; 1,402
(O) Provision for deposit of an executed copy of the 1,404
agreement in the office of the state board COMMISSION and the 1,405
office of the county recorder of the county or counties in which 1,407
the project is situated; 1,408
(P) Provision for termination of the contract and release 1,410
of the funds encumbered at the time of the conditional approval, 1,411
if the proceeds of the sale of the bonds of the school district 1,412
board are not paid into the school district's project 1,413
construction account and if bids for the construction of the 1,414
project have not been taken within such period after the 1,415
execution of the agreement as may be fixed by the state board 1,416
COMMISSION; 1,417
(Q) PROVISION FOR THE SCHOOL DISTRICT TO MAINTAIN THE 1,419
PROJECT IN ACCORDANCE WITH A PLAN APPROVED BY THE COMMISSION; 1,420
(R) PROVISION THAT ALL STATE FUNDS RESERVED AND ENCUMBERED 1,423
TO PAY THE STATE SHARE OF THE COST OF THE PROJECT PURSUANT TO 1,424
SECTION 3318.03 OF THE REVISED CODE BE SPENT ON THE CONSTRUCTION 1,426
OR ACQUISITION OF THE PROJECT PRIOR TO THE EXPENDITURE OF ANY 1,427
FUNDS PROVIDED BY THE SCHOOL DISTRICT TO PAY FOR ITS SHARE OF THE 1,428
35
PROJECT COST.
Sec. 3318.081. If the board of education of a school 1,437
district authorized to impose a tax pursuant to section 3318.06 1,438
of the Revised Code determines that taxable value of property 1,439
subject to the tax has increased to the extent it will not be 1,440
necessary to impose such tax for twenty-three years in order to 1,441
pay the purchase price, it may request the county auditor to 1,442
determine the amount of the purchase price remaining to be paid 1,443
and the estimated rate of taxation required each year to repay 1,444
such remainder in equal installments over the maximum number of 1,445
remaining years the tax may be in effect. The auditor shall make 1,446
such determination upon request and certify the results thereof 1,447
to the board of education. 1,448
Upon receipt of the auditor's determination, the board of 1,450
education may request the state board of education OHIO SCHOOL 1,452
FACILITIES COMMISSION to enter into a supplemental agreement 1,453
under which the district may repay the remainder of the purchase 1,454
price in annual amounts equal to the quotient obtained by 1,455
dividing the amount remaining to be paid by the maximum number of 1,456
remaining years the tax may be in effect. If such an agreement is 1,457
entered into, the state board COMMISSION shall certify a copy 1,459
thereof to the county auditor and the tax authorized by section 1,460
3318.06 of the Revised Code thereafter shall be levied at the 1,461
rate required to make the annual payments required by the 1,462
supplemental agreement rather than the rate required by such 1,463
section.
Sec. 3318.082. THE BOARD OF EDUCATION OF ANY SCHOOL 1,465
DISTRICT IMPOSING A TAX FOR THE PURPOSE OF PAYING THE COST OF THE 1,466
PURCHASE OF CLASSROOM FACILITIES FROM THE STATE PURSUANT TO 1,467
SECTION 3318.06 OF THE REVISED CODE PRIOR TO THE EFFECTIVE DATE
OF THE AMENDMENTS TO THAT SECTION BY AMENDED SUBSTITUTE HOUSE 1,469
BILL NO. 748 OF THE 121st GENERAL ASSEMBLY, MAY ENTER INTO A 1,470
SUPPLEMENTAL AGREEMENT WITH THE OHIO SCHOOL FACILITIES COMMISSION 1,471
UNDER WHICH THE PROCEEDS OF SUCH TAX SHALL BE DISTRIBUTED IN 1,473
36
ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3318.06 OF THE
REVISED CODE, AS AMENDED BY AMENDED SUBSTITUTE HOUSE BILL NO. 748 1,475
OF THE 121st GENERAL ASSEMBLY. 1,476
Sec. 3318.091. Promptly after the written agreement 1,485
between the school district board and the state board of 1,486
education OHIO SCHOOL FACILITIES COMMISSION has been entered 1,487
into, the school district board shall proceed with the issuance 1,489
of its bonds or notes in anticipation thereof pursuant to the 1,490
provision of such agreement required by division (A) of section 1,491
3318.08 of the Revised Code and the deposit of the proceeds 1,492
thereof in the school district's project construction account
pursuant to the provision of such agreement required by division 1,493
(B) of section 3318.08 of the Revised Code, and the school 1,494
district board, with the approval of the superintendent of public 1,495
instruction COMMISSION shall employ a qualified professional 1,498
person or firm to prepare preliminary plans, working drawings,
specifications, estimates of cost, and such data as the school 1,499
district board and the superintendent of public instruction 1,500
COMMISSION deem necessary for the project. When the preliminary 1,502
plans and preliminary estimates of cost have been prepared, and 1,503
approved by the school district board, they shall be submitted to 1,504
the superintendent of public instruction COMMISSION for approval, 1,505
modification, or rejection. The superintendent COMMISSION shall 1,506
ensure that the plans and materials proposed for use in the 1,508
project comply with specifications for plans and materials that 1,509
shall be established by the state board of education COMMISSION. 1,510
When such preliminary plans and preliminary estimates of cost and 1,512
any modifications thereof have been approved by the 1,513
superintendent of public instruction COMMISSION and the school 1,515
district board, the school district board shall cause such 1,517
qualified professional person or firm to prepare the working
drawings, specifications, and estimates of cost. 1,518
Sec. 3318.10. When such working drawings, specifications, 1,528
and estimates of cost have been approved by the school district 1,529
37
board and the superintendent of public instruction OHIO SCHOOL 1,531
FACILITIES COMMISSION, the treasurer of the school district board 1,532
shall advertise for construction bids for the project once a week 1,533
for four consecutive weeks in a newspaper published in and of 1,534
general circulation in the county in which the project is 1,535
located. Such notices shall state that plans and specifications 1,536
for the project are on file in the office of the state board of 1,537
education COMMISSION and such other place as may be designated in 1,539
such notice, and the time and place when and where bids therefor 1,540
will be received.
The form of proposal to be submitted by bidder BIDDERS 1,542
shall be supplied by the state board COMMISSION. Bidders may be 1,543
permitted to bid upon all the branches of work and materials to 1,545
be furnished and supplied, upon any branch thereof, or upon all 1,546
or any thereof.
A proposal shall be invalid and not considered unless it 1,548
meets the requirements of section 153.54 of the Revised Code. 1,549
When the construction bids for all branches of work and 1,551
materials have been tabulated, the superintendent of public 1,552
instruction COMMISSION shall cause to be prepared a revised 1,553
estimate of the basic project cost based upon the lowest 1,555
responsible bids received. If such revised estimate exceeds the 1,556
estimated basic project cost as approved by the controlling board 1,557
pursuant to section 3318.04 of the Revised Code as adjusted for 1,558
inflation from the time of such approval, no contracts may be 1,559
entered into pursuant to this section unless such revised 1,560
estimate is approved by the state board COMMISSION and by the 1,561
controlling board referred to in section 3318.04 of the Revised 1,563
Code. The adjustment for inflation shall be calculated and 1,564
agreed to by the superintendent of public instruction, the 1,565
director of the legislative budget office of the legislative 1,566
service commission, and the director of the office of budget and 1,567
management. When such revised estimate has been prepared, and 1,569
after such approvals are given, if necessary, and if the school 1,570
38
district board has caused to be transferred to the project 1,571
construction account the proceeds from the sale of the first or 1,572
first and final installment of its bonds or bond anticipation 1,573
notes pursuant to the provision of written agreement required by 1,574
division (B) of section 3318.08 of the Revised Code, and when the 1,575
director of budget and management has certified that there is a 1,576
balance in the appropriation, not otherwise obligated to pay 1,577
precedent obligations, pursuant to which the state's share of 1,578
such revised estimate is required to be paid, the contract for
all branches of work and materials to be furnished and supplied, 1,579
or for any branch thereof as determined by the school district 1,580
board, shall be awarded by the school district board to the 1,581
lowest responsible bidder subject to the approval of the 1,582
superintendent of public instruction COMMISSION. Such award 1,583
shall be made within thirty days after the date on which the bids 1,585
are opened, and the successful bidder shall enter into a contract 1,586
within ten days after the successful bidder is notified of the 1,587
award of the contract. 1,588
Subject to the approval of the superintendent of public 1,590
instruction COMMISSION, the school district board may reject all 1,591
bids and readvertise. Any contract made under this section shall 1,593
be made in the name of the state and executed on its behalf by 1,594
the president and treasurer of the school district board. 1,595
The provisions of sections 153.50 to 153.99 of the Revised 1,597
Code, which are applicable to construction contracts of boards of 1,598
education and which permit bids to be made for two or more trades 1,599
or kinds of work, shall apply to construction contracts for the 1,600
project to the exclusion of sections 153.01 to 153.20 of the 1,601
Revised Code applicable to state construction contracts. 1,602
The remedies afforded to any subcontractor, materialman 1,604
MATERIALS SUPPLIER, laborer, mechanic, or persons furnishing 1,606
material or machinery for the project under sections 1311.26 to 1,607
1311.32 of the Revised Code, shall apply to contracts entered 1,608
into under this section and the itemized statement required by 1,609
39
section 1311.26 of the Revised Code shall be filed with the 1,610
school district board.
Sec. 3318.111. The school district board shall have 1,619
authority, with the approval of the superintendent of public 1,620
instruction OHIO SCHOOL FACILITIES COMMISSION and notwithstanding 1,622
the provisions of sections 135.01 to 135.21, inclusive, of the 1,623
Revised Code, to invest funds on deposit in the project 1,625
construction account in bonds, notes, certificates of 1,626
indebtedness, treasury bills, or other securities issued by and 1,627
constituting direct obligations of the United States, or the
state of Ohio maturing, or redeemable at the option of the 1,628
holder, not later than the dates on which such funds will be 1,629
required to be disbursed from such account.
Sec. 3318.12. The superintendent of public instruction 1,639
OHIO SCHOOL FACILITIES COMMISSION shall cause to be transferred 1,640
to the school district's project construction account the 1,641
necessary amounts from amounts appropriated by the general 1,642
assembly and set aside for such purpose, from time to time as may 1,643
be necessary to pay obligations chargeable to such account when 1,644
due. The treasurer of the school district board shall disburse 1,645
funds from the school district's project construction account 1,646
only upon the approval of the superintendent of public 1,647
instruction COMMISSION. The superintendent of public instruction 1,649
COMMISSION or his THE COMMISSION'S designated representative 1,651
shall issue vouchers against such account, in such amounts, and
at such times as required by the contracts for construction of 1,652
the project.
Any surplus remaining in the school district's project 1,654
construction account after the project has been completed shall 1,655
be transferred to the state board of education COMMISSION for 1,656
expenditure pursuant to sections 3318.01 to 3318.20 of the 1,658
Revised Code; provided, that if the final cost of the project is 1,659
less than the amount of moneys paid into the school district's 1,660
project construction account by the school district board, the 1,661
40
amount by which the school district's contribution exceeds the 1,662
actual cost shall be returned to the school district board. 1,663
Sec. 3318.13. Notwithstanding any provision of sections 1,672
5705.27 to 5705.50 of the Revised Code, the tax to be levied on 1,673
all taxable property within a school district for the purpose of 1,674
paying the cost of maintaining the classroom facilities included 1,675
in the project or for paying the purchase price of the project to 1,676
the state under the agreement provided in section 3318.08 of the 1,677
Revised Code or the supplemental agreement provided in section 1,678
3318.081 of the Revised Code shall be included in the budget of 1,679
the school district for each year upon the certification to the 1,680
county budget commission or commissions of the county or counties 1,681
in which said school district is located, by the state board of 1,682
education OHIO SCHOOL FACILITIES COMMISSION of the balance due 1,684
the state under said agreement or supplemental agreement. Such 1,685
certification shall be made on or before the fifteenth day of 1,686
July in each year. Thereafter, the respective county budget 1,687
commissions shall treat such certification as an additional item 1,688
on the tax budget for the school district as to which such 1,689
certification has been made and shall provide for the levy 1,690
therefor in the manner provided in sections 5705.27 to 5705.50 of 1,691
the Revised Code for tax levies included directly in the budgets 1,692
of the subdivisions.
The levy of taxes shall be included in the next annual tax 1,694
budget that is certified to the county budget commission after 1,695
the execution of the agreement for the project. 1,696
Sec. 3318.14. Notwithstanding the provision of section 1,705
321.31 of the Revised Code, immediately after each settlement 1,706
with the county auditor, on presentation of the warrant of the 1,707
county auditor therefor, the county treasurer shall pay to the 1,708
school district the proceeds of the tax levy provided in section 1,709
3318.13 of the Revised Code to be used to pay the cost of
maintaining the classroom facilities included in the project and 1,711
pay to the state board OHIO SCHOOL FACILITIES COMMISSION any 1,713
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 1,714
project.
Sec. 3318.15. There is hereby created the public school 1,723
building fund within the state treasury consisting of all moneys 1,724
received from the sale of classroom facilities pursuant to 1,725
sections 3318.01 to 3318.20 of the Revised Code, any moneys 1,726
transferred or appropriated to the fund by the general assembly, 1,727
and any grants, gifts, or contributions received by the state 1,728
board of education OHIO SCHOOL FACILITIES COMMISSION to be used 1,729
for the purposes of the fund. 1,730
Moneys transferred or appropriated to the fund by the 1,732
general assembly and moneys in the fund from grants, gifts, and 1,733
contributions shall be used to acquire classroom facilities for 1,734
sale to school districts pursuant to sections 3318.01 to 3318.20 1,735
of the Revised Code. The moneys in the fund received from the 1,736
sale of classroom facilities shall be held in a separate account 1,737
in the fund. Such moneys may be used partially to acquire 1,738
additional classroom facilities for sale to school districts 1,739
pursuant to sections 3318.01 to 3318.20 and partially to pay bond 1,740
service charges as defined in division (C) of section 3318.21 of 1,741
the Revised Code on obligations, the proceeds of which are 1,742
deposited into the school districts facilities fund created in 1,743
section 3318.23 of the Revised Code. 1,744
Sec. 3318.16. Title to interests in real property 1,753
purchased with moneys in the school district's project 1,754
construction account shall be taken in the name of the state of 1,755
Ohio. Upon completion of the project, the title to such interest 1,756
in real property shall be conveyed to the school district board
and the president and the secretary of the state board OHIO 1,757
SCHOOL FACILITIES COMMISSION shall execute and deliver deeds to 1,759
complete the transfer of such interests.
Upon completion of the project, the interest of the state 1,761
in the project shall be transferred to the school district board, 1,762
42
which interest is equal to that portion of the final cost of the 1,763
project represented by funds contributed by the state for the 1,764
project. The purchase price to be paid by the school district 1,765
board for the state's interest in the project shall be the total
amount of funds contributed by the state for the project. 1,766
Sec. 3318.17. A school district board may purchase 1,775
classroom facilities from the state from time to time under the 1,776
procedure set forth in sections 3318.01 to 3318.12 of the Revised 1,777
Code. The levy of taxes required by section 3318.14 of the 1,778
Revised Code shall be at the rate of one-half mill for each one 1,780
dollar of valuation except that in those years in which the state 1,781
superintendent of public instruction OHIO SCHOOL FACILITIES 1,782
COMMISSION, pursuant to section 3318.051 of the Revised Code, 1,783
requires the district to increase the tax rate to an amount 1,784
greater than one-half mill, but not in excess of four mills, and 1,785
shall be for a maximum period of twenty-three years after the 1,786
last purchase and except in those years in which a supplemental 1,787
agreement authorized by section 3318.081 of the Revised Code is 1,788
in effect, the rate shall be as prescribed for such section for 1,789
the period during which such agreement is in effect. Where a 1,790
school district has purchased classroom facilities from the state 1,791
on which any portion of the purchase price remains unpaid and it 1,792
desires to purchase additional classroom facilities, the notice 1,793
of election and form of ballot set forth in section 3318.06 of 1,794
the Revised Code shall provide that the levy is an extension of 1,795
an existing levy for a maximum period of twenty-three years. 1,796
Where there has been more than one purchase of classroom 1,797
facilities from the state, any proceeds of the tax to be used to 1,798
pay the purchase price of such facilities shall be applied to the 1,799
unpaid purchase price of the projects in the order in which they 1,800
were purchased.
Sec. 3318.18. The unpaid purchase price of a project shall 1,809
constitute an indebtedness of the school district but shall not 1,810
be included in the calculation of indebtedness under sections 1,811
43
133.04 and 133.06 of the Revised Code. In the event all or a 1,812
portion of the territory comprising a school district, which has 1,813
outstanding an indebtedness to the state representing the unpaid 1,814
purchase price of a project or projects, is transferred to 1,815
another school district, or, if a new school district is created 1,816
to include all or a portion of such school district, the 1,817
outstanding indebtedness for each project shall be apportioned 1,818
between the acquiring school district and the original school 1,819
district in the ratio, as of the effective date of the transfer, 1,820
which the assessed valuation of the territory transferred to the 1,821
acquiring school district bears to the assessed valuation of the 1,822
original school district. 1,823
The amount of the indebtedness so assumed by the new school 1,825
district or acquiring school district shall be equal to one-half 1,826
mill multiplied by the total value of all property as listed and 1,827
assessed for taxation in the original school district or 1,828
territory transferred for each of the years remaining in the 1,829
agreement for payment of purchase price between the original 1,830
school district and the state board of education. On or before 1,831
the first day of July of each year, the department of taxation 1,832
shall certify to the state board of education OHIO SCHOOL 1,833
FACILITIES COMMISSION the amount of the tax duplicate of the 1,835
original school district or territory transferred for the 1,836
calendar year ending on the thirty-first day of December 1,837
immediately preceding. This tax duplicate shall be used in the 1,838
calculation of the indebtedness so assumed.
The acquiring school district shall levy a tax outside the 1,840
ten-mill limitation upon all property in the acquiring school 1,841
district to pay the indebtedness so assumed until the 1,842
indebtedness so assumed has been discharged but not longer than 1,843
twenty-three years after the original incurrence of the 1,844
indebtedness, provided, that the levy in the acquiring school 1,845
district in any year shall not exceed the levy in the original 1,846
school district to pay the purchase price of projects acquired 1,847
44
from the state. The proceeds of the aforesaid tax levy in the 1,848
acquiring school district shall be applied to the discharge of 1,849
indebtedness first incurred in point of time whether or not it be 1,850
an indebtedness assumed from another school district. 1,851
Sec. 3318.19. A complete detailed report of the 1,860
expenditure of funds pursuant to the provisions of sections 1,861
3318.01 to 3318.20, inclusive, of the Revised Code shall be made 1,863
by the state board OHIO SCHOOL FACILITIES COMMISSION biennially 1,864
to the general assembly. The report shall contain a detailed 1,865
statement of classroom facilities acquired in whole or in part by 1,866
the state and sold to school districts, the moneys received from 1,867
school districts for credit against their indebtedness to the
state, and such other information as will advise the general 1,868
assembly of the nature and progress of this program. 1,869
Sec. 3318.22. (A) The general assembly finds that many 1,878
school districts are prevented by their size, tax base, or other 1,879
conditions from performing their essential functions as agencies 1,880
of state government to provide adequate classroom facilities and 1,881
issuing securities under Chapter 133. of the Revised Code at 1,882
favorable interest rates or charges. Accordingly, the state 1,883
board of education OHIO SCHOOL FACILITIES COMMISSION is invested 1,885
with the powers and duties provided in sections 3318.21 to 1,886
3318.29 of the Revised Code in order to provide deserved 1,887
assistance and materially contribute to the educational 1,888
revitalization of such school districts and result in improving 1,889
the education and welfare of all the people of the state. 1,890
(B) Sections 3318.21 to 3318.29 of the Revised Code do not 1,892
authorize the state board of education COMMISSION or the issuing 1,893
authority to incur bonded indebtedness of the state or any 1,895
political subdivision of the state, or to obligate or pledge 1,896
moneys raised by taxation for the payment of any bonds or notes 1,897
issued pursuant to sections 3318.21 to 3318.29 of the Revised 1,898
Code.
Sec. 3318.23. (A) There is hereby created the school 1,907
45
districts facilities fund within the state treasury that shall 1,908
consist of the proceeds of obligations issued pursuant to section 1,909
3318.26 of the Revised Code for the purposes of such fund, which 1,910
obligations are payable, in part, from moneys in the public 1,911
school building fund created in section 3318.15 of the Revised 1,912
Code; moneys received by the state from sources specified in 1,913
section 3318.27 of the Revised Code; service or other charges 1,914
imposed pursuant to section 3318.24 of the Revised Code; any 1,915
grants, gifts, or contributions of money received by the state 1,916
board of education OHIO SCHOOL FACILITIES COMMISSION for use in 1,918
making loans from the fund pursuant to section 3318.24 of the 1,919
Revised Code; and all other moneys appropriated or transferred to 1,920
the fund; provided that the school districts facilities fund 1,921
shall not be comprised, in any part, of money raised by taxation. 1,922
(B) Moneys in the public school building fund that are 1,924
pledged receipts and that are, pursuant to section 3318.26 of the 1,925
Revised Code, made available by the state board of education 1,926
COMMISSION to pay bond service charges for obligations issued 1,928
pursuant to that section shall be credited to the school 1,929
facilities bond service fund created in division (S) of section 1,930
3318.26 of the Revised Code for each issuance of obligations 1,931
authorized under that section unless otherwise provided in the 1,932
applicable bond proceedings. 1,933
(C) Subject to the approval of the controlling board, all 1,935
moneys appropriated or transferred to the school districts 1,936
facilities fund may be released at the request of the state board 1,937
of education COMMISSION for the making of loans pursuant to 1,938
section 3318.24 of the Revised Code. 1,940
Sec. 3318.24. (A) The state board of education OHIO 1,949
SCHOOL FACILITIES COMMISSION shall adopt rules in accordance with 1,951
Chapter 119. of the Revised Code under which, in any fiscal year 1,952
for which moneys are available in the school districts facilities 1,953
fund, the state board COMMISSION, subject to the approval of the 1,955
controlling board, may make loans from the fund to school 1,956
46
districts for the purpose of paying the allowable costs of a 1,957
permanent improvement. The rules shall include, but need not be 1,958
limited to, all of the following:
(1) Application procedures, including the date by which 1,960
applications shall be made; 1,961
(2) Eligibility criteria, which shall include at least the 1,963
following provisions: 1,964
(a) A requirement that an applicant district demonstrate 1,966
need for additional or improved classroom facilities. Indicators 1,967
of need shall include, but need not be limited to, enrollment 1,968
levels and enrollment changes; ability of the district to 1,969
maintain minimum educational standards; the inability of the 1,970
district to finance the allowable costs of the permanent 1,971
improvement through ordinary financial channels upon reasonable 1,972
terms and at a reasonable interest rate or charge; and 1,973
demonstrated good faith efforts by the district to provide 1,974
classroom facilities by other means. 1,975
(b) A requirement that the loan will be adequately secured 1,977
by the issuance of general obligation bonds by the school 1,978
district as voted upon and approved by the district's electors 1,979
pursuant to section 133.18 of the Revised Code. 1,980
(c) A requirement that an applicant district demonstrate 1,982
the ability to repay the loan and interest charge within the 1,983
maximum period permitted by division (A)(4) of this section. 1,984
(3) Loan approval procedures and criteria, including 1,986
criteria for prioritizing eligible applications in accordance 1,987
with demonstrated need for additional or improved classroom 1,988
facilities. 1,989
(4) Provisions governing repayment of loans and interest 1,991
charges, including a provision that loans and interest charges be 1,992
repaid within a maximum of twenty-five years. 1,993
(5) Provisions governing the charging, altering, and 1,995
collection, by the state board COMMISSION, of fees or interest or 1,997
other charges for loans or service charges for the making of a 1,998
47
loan.
(B) The state board COMMISSION shall enter into a loan 2,000
agreement with each district it approves for a loan pursuant to 2,002
division (A) of this section. The agreement shall specify the 2,003
amount of the loan, the amount of the interest charged for the 2,004
loan, the purpose for which the loan is to be used, the duration 2,005
of the loan, and the repayment schedule. Every such agreement 2,006
shall contain a provision authorizing the state board COMMISSION 2,007
to deduct from payments due to the district under Chapter 3317. 2,009
of the Revised Code or from any other funds appropriated to the 2,010
district by the general assembly, the amount of any scheduled 2,011
loan payment due but not paid by the district. The state board 2,012
COMMISSION may take any necessary or appropriate action to 2,014
collect or otherwise deal with any loan made pursuant to this 2,015
section.
Sec. 3318.25. There is hereby created in the state 2,024
treasury the school building program assistance fund. The fund 2,025
shall consist of the proceeds of obligations issued for the 2,026
purposes of such fund pursuant to section 3318.26 of the Revised 2,027
Code that are payable from moneys in the lottery profits 2,028
education fund created in section 3770.06 of the Revised Code. 2,029
Moneys in the fund shall be used as directed by the state board 2,030
of education OHIO SCHOOL FACILITIES COMMISSION for the cost to 2,032
the state of acquiring classroom facilities for sale to school
districts pursuant to sections 3318.01 to 3318.20 of the Revised 2,033
Code. 2,034
Sec. 3318.26. (A) Subject to the limitations provided in 2,043
section 3318.29 of the Revised Code, the issuing authority, upon 2,044
the certification by the state board of education OHIO SCHOOL 2,046
FACILITIES COMMISSION to the issuing authority of the amount of 2,047
moneys or additional moneys needed in the school districts 2,048
facilities fund for the purpose of making loans for allowable 2,049
costs from such fund or in the school building program assistance 2,050
fund for the purposes of sections 3318.01 to 3318.20 of the 2,051
48
Revised Code, or needed for capitalized interest, for funding 2,052
reserves, and for paying costs and expenses incurred in 2,053
connection with the issuance, carrying, securing, paying, 2,054
redeeming, or retirement of the obligations or any obligations 2,055
refunded thereby, including payment of costs and expenses 2,056
relating to letters of credit, lines of credit, insurance, put 2,057
agreements, standby purchase agreements, indexing, marketing, 2,058
remarketing and administrative arrangements, interest swap or 2,059
hedging agreements, and any other credit enhancement, liquidity, 2,060
remarketing, renewal, or refunding arrangements, all of which are 2,061
authorized by this section, shall issue obligations of the state 2,062
under this section in the required amount. The proceeds of such 2,063
obligations, except for obligations issued to provide moneys for 2,065
the school building program assistance fund or except for such 2,066
portion to be deposited in special funds, including reserve 2,067
funds, as may be provided in the bond proceedings, shall as 2,068
provided in the bond proceedings be deposited by the treasurer of 2,069
state to the school districts facilities fund. The issuing 2,070
authority may appoint trustees, paying agents, and transfer 2,071
agents and may retain the services of financial advisors and 2,072
accounting experts and retain or contract for the services of 2,073
marketing, remarketing, indexing, and administrative agents, 2,074
other consultants, and independent contractors, including 2,075
printing services, as are necessary in the issuing authority's 2,076
judgment to carry out this section. The costs of such services 2,077
are payable from the school districts facilities fund, the school 2,078
building program assistance fund, or any special fund determined 2,079
by the issuing authority.
(B) The holders or owners of such obligations shall have 2,081
no right to have moneys raised by taxation obligated or pledged, 2,082
and moneys raised by taxation shall not be obligated or pledged, 2,083
for the payment of bond service charges. Such holders or owners 2,084
shall have no rights to payment of bond service charges from any 2,085
money or property received by the state board of education 2,086
49
COMMISSION, treasurer of state, or the state, or from any other 2,088
use of the proceeds of the sale of the obligations, and no such 2,089
moneys may be used for the payment of bond service charges, 2,090
except for accrued interest, capitalized interest, and reserves 2,091
funded from proceeds received upon the sale of the obligations 2,092
and except as otherwise expressly provided in the applicable bond 2,093
proceedings pursuant to written directions by the treasurer of 2,094
state. The right of such holders and owners to payment of bond 2,095
service charges shall be limited to all or that portion of the 2,096
pledged receipts and those special funds pledged thereto pursuant 2,097
to the bond proceedings in accordance with this section, and each 2,098
such obligation shall bear on its face a statement to that 2,099
effect.
(C) Obligations shall be authorized by resolution or order 2,101
of the issuing authority and the bond proceedings shall provide 2,102
for the purpose thereof and the principal amount or amounts, and 2,103
shall provide for or authorize the manner or agency for 2,104
determining the principal maturity or maturities, not exceeding 2,105
the limits specified in section 3318.29 of the Revised Code, the 2,106
interest rate or rates or the maximum interest rate, the date of 2,107
the obligations and the dates of payment of interest thereon, 2,108
their denomination, and the establishment within or without the 2,109
state of a place or places of payment of bond service charges. 2,110
Sections 9.98 to 9.983 of the Revised Code are applicable to 2,111
obligations issued under this section, subject to any applicable 2,112
limitation under section 3318.29 of the Revised Code. The 2,113
purpose of such obligations may be stated in the bond proceedings 2,114
in terms describing the general purpose or purposes to be served. 2,115
The bond proceedings shall also provide, subject to the 2,116
provisions of any other applicable bond proceedings, for the 2,117
pledge of all, or such part as the issuing authority may 2,118
determine, of the pledged receipts and the applicable special 2,119
fund or funds to the payment of bond service charges, which 2,120
pledges may be made either prior or subordinate to other 2,121
50
expenses, claims, or payments, and may be made to secure the 2,122
obligations on a parity with obligations theretofore or 2,123
thereafter issued, if and to the extent provided in the bond 2,124
proceedings. The pledged receipts and special funds so pledged 2,125
and thereafter received by the state are immediately subject to 2,126
the lien of such pledge without any physical delivery thereof or 2,127
further act, and the lien of any such pledges is valid and 2,128
binding against all parties having claims of any kind against the 2,129
state or any governmental agency of the state, irrespective of 2,130
whether such parties have notice thereof, and shall create a 2,131
perfected security interest for all purposes of Chapter 1309. of 2,132
the Revised Code, without the necessity for separation or 2,133
delivery of funds or for the filing or recording of the bond 2,134
proceedings by which such pledge is created or any certificate, 2,135
statement or other document with respect thereto; and the pledge 2,136
of such pledged receipts and special funds is effective and the 2,137
money therefrom and thereof may be applied to the purposes for 2,138
which pledged without necessity for any act of appropriation, 2,139
except as required by section 3770.06 of the Revised Code. Every 2,140
pledge, and every covenant and agreement made with respect 2,141
thereto, made in the bond proceedings may therein be extended to 2,142
the benefit of the owners and holders of obligations authorized 2,143
by this section, and to any trustee therefor, for the further 2,144
security of the payment of the bond service charges. 2,145
(D) The bond proceedings may contain additional provisions 2,147
as to: 2,148
(1) The redemption of obligations prior to maturity at the 2,150
option of the issuing authority at such price or prices and under 2,151
such terms and conditions as are provided in the bond 2,152
proceedings; 2,153
(2) Other terms of the obligations; 2,155
(3) Limitations on the issuance of additional obligations; 2,157
(4) The terms of any trust agreement or indenture securing 2,159
the obligations or under which the same may be issued; 2,160
51
(5) The deposit, investment and application of special 2,162
funds, and the safeguarding of moneys on hand or on deposit, 2,163
without regard to Chapter 131., 133., or 135. of the Revised 2,164
Code, but subject to any special provisions of sections 3318.21 2,165
to 3318.29 of the Revised Code, with respect to particular funds 2,166
or moneys, provided that any bank or trust company that acts as 2,167
depository of any moneys in the special funds may furnish such 2,168
indemnifying bonds or may pledge such securities as required by 2,169
the issuing authority; 2,170
(6) Any or every provision of the bond proceedings being 2,172
binding upon such officer, board, commission, authority, agency, 2,173
department, or other person or body as may from time to time have 2,174
the authority under law to take such actions as may be necessary 2,175
to perform all or any part of the duty required by such 2,176
provision; 2,177
(7) Any provision that may be made in a trust agreement or 2,180
indenture;
(8) The lease or sublease of any interest of the school 2,182
district or the state in one or more projects as defined in 2,183
division (C) of section 3318.01 of the Revised Code, or in one or 2,184
more permanent improvements, to or from the issuing authority, as 2,185
provided in one or more lease or sublease agreements between the
school or the state and the issuing authority; 2,186
(9) Any other or additional agreements with the holders of 2,188
the obligations, or the trustee therefor, relating to the 2,189
obligations or the security therefor, including in the case of 2,190
obligations issued to provide moneys for the school district 2,191
facilities fund the assignment of security obtained or to be 2,192
obtained for loans under section 3318.24 of the Revised Code. 2,193
(E) The obligations may have the great seal of the state 2,195
or a facsimile thereof affixed thereto or printed thereon. The 2,196
obligations and any coupons pertaining to obligations shall be 2,197
signed or bear the facsimile signature of the issuing authority. 2,198
Any obligations or coupons may be executed by the person who, on 2,199
52
the date of execution, is the proper issuing authority although 2,200
on the date of such bonds or coupons such person was not the 2,201
issuing authority. In case the issuing authority whose signature 2,202
or a facsimile of whose signature appears on any such obligation 2,203
or coupon ceases to be the issuing authority before delivery 2,204
thereof, such signature or facsimile is nevertheless valid and 2,205
sufficient for all purposes as if the issuing authority had 2,206
remained the issuing authority until such delivery; and in case 2,208
the seal to be affixed to obligations has been changed after a 2,209
facsimile of the seal has been imprinted on such obligations, 2,210
such facsimile seal shall continue to be sufficient as to such 2,211
obligations and obligations issued in substitution or exchange 2,212
therefor.
(F) All obligations are negotiable instruments and 2,214
securities under Chapter 1308. of the Revised Code, subject to 2,215
the provisions of the bond proceedings as to registration. The 2,216
obligations may be issued in coupon or in registered form, or 2,217
both, as the issuing authority determines. Provision may be made 2,218
for the registration of any obligations with coupons attached 2,219
thereto as to principal alone or as to both principal and 2,220
interest, their exchange for obligations so registered, and for 2,221
the conversion or reconversion into obligations with coupons 2,222
attached thereto of any obligations registered as to both 2,223
principal and interest, and for reasonable charges for such 2,224
registration, exchange, conversion, and reconversion. 2,225
(G) Obligations may be sold at public sale or at private 2,227
sale, as determined in the bond proceedings. 2,228
(H) Pending preparation of definitive obligations, the 2,230
issuing authority may issue interim receipts or certificates 2,231
which shall be exchanged for such definitive obligations. 2,232
(I) In the discretion of the issuing authority, 2,234
obligations may be secured additionally by a trust agreement or 2,235
indenture between the issuing authority and a corporate trustee 2,236
which may be any trust company or bank having its principal place 2,237
53
of business within the state. Any such agreement or indenture 2,238
may contain the resolution or order authorizing the issuance of 2,239
the obligations, any provisions that may be contained in any bond 2,240
proceedings, and other provisions that are customary or 2,241
appropriate in an agreement or indenture of such type, including, 2,242
but not limited to: 2,243
(1) Maintenance of each pledge, trust agreement, 2,245
indenture, or other instrument comprising part of the bond 2,246
proceedings until the state has fully paid the bond service 2,247
charges on the obligations secured thereby, or provision therefor 2,248
has been made; 2,249
(2) In the event of default in any payments required to be 2,251
made by the bond proceedings, or any other agreement of the 2,252
issuing authority made as a part of the contract under which the 2,253
obligations were issued, enforcement of such payments or 2,254
agreement by mandamus, the appointment of a receiver, suit in 2,255
equity, action at law, or any combination of the foregoing; 2,256
(3) The rights and remedies of the holders of obligations 2,258
and of the trustee, and provisions for protecting and enforcing 2,259
them, including limitations on rights of individual holders of 2,260
obligations; 2,261
(4) The replacement of any obligations that become 2,263
mutilated or are destroyed, lost, or stolen; 2,264
(5) Such other provisions as the trustee and the issuing 2,266
authority agree upon, including limitations, conditions, or 2,267
qualifications relating to any of the foregoing. 2,268
(J) Any holder of obligations or a trustee under the bond 2,270
proceedings, except to the extent that the holder's or trustee's 2,272
rights are restricted by the bond proceedings, may by any 2,273
suitable form of legal proceedings, protect and enforce any 2,274
rights under the laws of this state or granted by such bond 2,275
proceedings. Such rights include the right to compel the 2,276
performance of all duties of the issuing authority, the state 2,277
board of education COMMISSION, or the director of budget and 2,279
54
management required by sections 3318.21 to 3318.29 of the Revised 2,280
Code or the bond proceedings; to enjoin unlawful activities; and 2,281
in the event of default with respect to the payment of any bond 2,282
service charges on any obligations or in the performance of any 2,283
covenant or agreement on the part of the issuing authority, the 2,284
state board of education COMMISSION, or the director of budget 2,286
and management in the bond proceedings, to apply to a court 2,287
having jurisdiction of the cause to appoint a receiver to receive 2,288
and administer the pledged receipts and special funds, other than 2,289
those in the custody of the treasurer of state or the state board 2,290
of education COMMISSION, which are pledged to the payment of the 2,291
bond service charges on such obligations or which are the subject 2,292
of the covenant or agreement, with full power to pay, and to 2,293
provide for payment of bond service charges on, such obligations, 2,294
and with such powers, subject to the direction of the court, as 2,295
are accorded receivers in general equity cases, excluding any 2,296
power to pledge additional revenues or receipts or other income 2,297
or moneys of the issuing authority or the state or governmental 2,298
agencies of the state to the payment of such principal and 2,299
interest and excluding the power to take possession of, mortgage, 2,300
or cause the sale or otherwise dispose of any permanent 2,301
improvement. 2,302
Each duty of the issuing authority and the issuing 2,304
authority's officers and employees, and of each governmental 2,305
agency and its officers, members, or employees, undertaken 2,306
pursuant to the bond proceedings or any agreement or loan made 2,307
under authority of sections 3318.21 to 3318.29 of the Revised 2,308
Code, and in every agreement by or with the issuing authority, is 2,309
hereby established as a duty of the issuing authority, and of 2,310
each such officer, member, or employee having authority to 2,311
perform such duty, specifically enjoined by the law resulting 2,312
from an office, trust, or station within the meaning of section 2,313
2731.01 of the Revised Code. 2,314
The person who is at the time the issuing authority, or the 2,316
55
issuing authority's officers or employees, are not liable in 2,317
their personal capacities on any obligations issued by the 2,318
issuing authority or any agreements of or with the issuing 2,319
authority. 2,320
(K) The issuing authority may authorize and issue 2,322
obligations for the refunding, including funding and retirement, 2,323
and advance refunding with or without payment or redemption prior 2,324
to maturity, of any obligations previously issued by the issuing 2,325
authority. Such obligations may be issued in amounts sufficient 2,326
for payment of the principal amount of the prior obligations, any 2,327
redemption premiums thereon, principal maturities of any such 2,328
obligations maturing prior to the redemption of the remaining 2,329
obligations on a parity therewith, interest accrued or to accrue 2,330
to the maturity dates or dates of redemption of such obligations, 2,331
and any allowable costs including expenses incurred or to be 2,332
incurred in connection with such issuance and such refunding, 2,333
funding, and retirement. Subject to the bond proceedings 2,334
therefor, the portion of proceeds of the sale of obligations 2,335
issued under this division to be applied to bond service charges 2,336
on the prior obligations shall be credited to an appropriate 2,337
account held by the trustee for such prior or new obligations or 2,338
to the appropriate account in the bond service fund for such 2,339
obligations. Obligations authorized under this division shall be 2,340
deemed to be issued for those purposes for which such prior 2,341
obligations were issued and are subject to the provisions of this 2,342
section pertaining to other obligations, except as otherwise 2,343
provided in this section; provided that, unless otherwise 2,344
authorized by the general assembly, any limitations imposed by 2,345
the general assembly pursuant to this section with respect to 2,346
bond service charges applicable to the prior obligations shall be 2,347
applicable to the obligations issued under this division to 2,348
refund, fund, advance refund or retire such prior obligations. 2,349
(L) The authority to issue obligations under this section 2,351
includes authority to refund or refinance any obligations 2,352
56
previously issued by the state under sections 3318.21 to 3318.29 2,353
of the Revised Code. 2,354
The authority to issue obligations under this section also 2,356
includes authority to issue obligations in the form of bond 2,357
anticipation notes and to renew the same from time to time by the 2,358
issuance of new notes. The holders of such notes or interest 2,359
coupons pertaining thereto shall have a right to be paid solely 2,360
from the pledged receipts and special funds that may be pledged 2,361
to the payment of the bonds anticipated, or from the proceeds of 2,362
such bonds or renewal notes, or both, as the issuing authority 2,363
provides in the resolution or order authorizing such notes. Such 2,364
notes may be additionally secured by covenants of the issuing 2,365
authority to the effect that the issuing authority and the state 2,366
will do such or all things necessary for the issuance of such 2,367
bonds or renewal notes in appropriate amount, and apply the 2,368
proceeds thereof to the extent necessary, to make full payment of 2,369
the principal of and interest on such notes at the time or times 2,370
contemplated, as provided in such resolution or order. For such 2,371
purpose, the issuing authority may issue bonds or renewal notes 2,372
in such principal amount and upon such terms as may be necessary 2,373
to provide funds to pay when required the principal of and 2,374
interest on such notes, notwithstanding any limitations 2,375
prescribed by or for purposes of this section. Subject to this 2,376
division, all provisions for and references to obligations in 2,377
this section are applicable to notes authorized under this 2,378
division. 2,379
The issuing authority in the bond proceedings authorizing 2,381
the issuance of bond anticipation notes shall set forth for such 2,382
bonds an estimated interest rate and a schedule of principal 2,383
payments for such bonds and the annual maturity dates thereof, 2,384
and for purposes of any limitation on bond service charges 2,385
prescribed under section 3318.29 of the Revised Code, the amount 2,386
of bond service charges on such bond anticipation notes shall be 2,387
deemed to be the bond service charges for the bonds anticipated 2,388
57
thereby as set forth in the bond proceedings applicable to such 2,389
notes, but this provision does not modify any authority in this 2,390
section to pledge pledged receipts and special funds to, and 2,391
covenant to issue bonds to fund, the payment of principal of and 2,392
interest and any premium on such notes. 2,393
(M) Obligations issued under this section are lawful 2,395
investments for banks, societies for savings, savings and loan 2,396
associations, deposit guarantee associations, trust companies, 2,397
trustees, fiduciaries, insurance companies, including domestic 2,398
for life and domestic not for life, trustees or other officers 2,399
having charge of sinking and bond retirement or other special 2,400
funds of political subdivisions and taxing districts of this 2,401
state, the commissioners of the sinking fund of the state, the 2,402
administrator of workers' compensation, the state teachers 2,404
retirement system, the public employees retirement system, the 2,405
school employees retirement system, and the police and firemen's 2,406
disability and pension fund, notwithstanding any other provisions 2,407
of the Revised Code or rules adopted pursuant thereto by any 2,408
governmental agency of the state with respect to investments by 2,409
them, and also are acceptable as security for the deposit of 2,410
public moneys.
(N) Unless otherwise provided in any applicable bond 2,412
proceedings, moneys to the credit of or in the special funds 2,413
established by or pursuant to this section may be invested by or 2,414
on behalf of the issuing authority only in notes, bonds, or other 2,415
obligations of the United States, or of any agency or 2,416
instrumentality of the United States, obligations guaranteed as 2,418
to principal and interest by the United States, obligations of 2,419
this state or any political subdivision of this state, and 2,420
certificates of deposit of any national bank located in this 2,422
state and any bank, as defined in section 1101.01 of the Revised 2,423
Code, subject to inspection by the superintendent of financial 2,424
institutions. If the law or the instrument creating a trust 2,426
pursuant to division (I) of this section expressly permits 2,427
58
investment in direct obligations of the United States or an 2,428
agency of the United States, unless expressly prohibited by the 2,429
instrument, such moneys also may be invested in no front end load 2,430
money market mutual funds consisting exclusively of obligations 2,431
of the United States or an agency of the United States and in 2,432
repurchase agreements, including those issued by the fiduciary 2,433
itself, secured by obligations of the United States or an agency 2,434
of the United States; and in collective investment funds 2,435
established in accordance with section 1111.14 of the Revised 2,437
Code and consisting exclusively of any such securities, 2,438
notwithstanding division (A)(1)(c) of that section. The income 2,440
from such investments shall be credited to such funds as the 2,442
issuing authority determines, and such investments may be sold at 2,443
such times as the issuing authority determines or authorizes. 2,444
(O) Provision may be made in the applicable bond 2,446
proceedings for the establishment of separate accounts in the 2,447
bond service fund and for the application of such accounts only 2,448
to the specified bond service charges on obligations pertinent to 2,449
such accounts and bond service fund and for other accounts 2,450
therein within the general purposes of such fund. Unless 2,451
otherwise provided in any applicable bond proceedings, moneys to 2,452
the credit of or in the several special funds established 2,453
pursuant to this section shall be disbursed on the order of the 2,454
treasurer of state, provided that no such order is required for 2,455
the payment from the bond service fund when due of bond service 2,456
charges on obligations. 2,457
(P) The issuing authority may pledge all, or such portion 2,459
as the issuing authority determines, of the pledged receipts to 2,460
the payment of bond service charges on obligations issued under 2,461
this section, and for the establishment and maintenance of any 2,462
reserves, as provided in the bond proceedings, and make other 2,463
provisions therein with respect to pledged receipts as authorized 2,464
by this chapter, which provisions shall be controlling 2,465
notwithstanding any other provisions of law pertaining thereto. 2,466
59
(Q) The issuing authority may covenant in the bond 2,468
proceedings, and any such covenants shall be controlling 2,469
notwithstanding any other provision of law, that the state and 2,470
applicable officers and governmental agencies of the state, 2,471
including the general assembly, so long as any obligations are 2,473
outstanding, shall:
(1) Maintain statutory authority for and cause to be 2,475
operated the state lottery, including the transfers to and from 2,476
the lottery profits education fund created in section 3770.06 of 2,477
the Revised Code so that the pledged receipts shall be sufficient 2,478
in amount to meet bond service charges, and the establishment and 2,479
maintenance of any reserves and other requirements provided for 2,480
in the bond proceedings; 2,481
(2) Take or permit no action, by statute or otherwise, 2,483
that would impair the exclusion from gross income for federal 2,484
income tax purposes of the interest on any obligations designated 2,485
by the bond proceeding as tax-exempt obligations. 2,486
(R) There is hereby created the school building program 2,488
bond service fund, which shall be in the custody of the treasurer 2,489
of state but shall be separate and apart from and not a part of 2,490
the state treasury. All moneys received by or on account of the 2,491
issuing authority or state agencies and required by the 2,492
applicable bond proceedings, consistent with this section, to be 2,493
deposited, transferred, or credited to the school building 2,494
program bond service fund, and all other moneys transferred or 2,495
allocated to or received for the purposes of the fund, shall be 2,496
deposited and credited to such fund and to any separate accounts 2,497
therein, subject to applicable provisions of the bond 2,498
proceedings, but without necessity for any act of appropriation, 2,499
except as required by section 3770.06 of the Revised Code. 2,500
During the period beginning with the date of the first issuance 2,501
of obligations and continuing during such time as any such 2,502
obligations are outstanding, and so long as moneys in the school 2,503
building program bond service fund are insufficient to pay all 2,504
60
bond service charges on such obligations becoming due in each 2,505
year, a sufficient amount of the moneys from the lottery profits 2,506
education fund included in pledged receipts, subject to 2,507
appropriation for such purpose as provided in section 3770.06 of 2,508
the Revised Code, are committed and shall be paid to the school 2,509
building program bond service fund in each year for the purpose 2,510
of paying the bond service charges becoming due in that year. 2,511
The school building program bond service fund is a trust fund and 2,512
is hereby pledged to the payment of bond service charges solely 2,513
on obligations issued to provide moneys for the school building 2,514
program assistance fund to the extent provided in the applicable 2,515
bond proceedings, and payment thereof from such fund shall be 2,516
made or provided for by the treasurer of state in accordance with 2,517
such bond proceedings without necessity for any act of 2,518
appropriation except as required by section 3770.06 of the 2,519
Revised Code. 2,520
(S) There is hereby created the school facilities bond 2,522
service fund, which shall be in the custody of the treasurer of 2,523
state but shall be separate and apart from and not a part of the 2,524
state treasury. All moneys received by or on account of the 2,525
issuing authority or state agencies and required by the 2,526
applicable bond proceedings, consistent with this section, to be 2,527
deposited, transferred, or credited to the school facilities bond 2,528
service fund, and all other moneys transferred or allocated to or 2,529
received for the purposes of the fund, shall be deposited and 2,530
credited to such fund and to any separate accounts therein, 2,531
subject to applicable provisions of the bond proceedings, but 2,532
without necessity for any act of appropriation. During the 2,533
period beginning with the date of the first issuance of 2,534
obligations and continuing during such time as any such 2,535
obligations are outstanding, and so long as moneys in the school 2,536
facilities bond service fund are insufficient to pay all bond 2,537
service charges on such obligations becoming due in each year, a 2,538
sufficient amount of the moneys from the public school building 2,539
61
fund included in pledged receipts are committed and shall be paid 2,540
to the bond service fund in each year for the purpose of paying 2,541
the bond service charges becoming due in that year. The school 2,542
facilities bond service fund is a trust fund and is hereby 2,543
pledged to the payment of bond service charges on obligations 2,544
issued to provide moneys for the school districts facilities fund 2,545
to the extent provided in the applicable bond proceedings, and 2,546
payment thereof from such fund shall be made or provided for by 2,547
the treasurer of state in accordance with such bond proceedings 2,548
without necessity for any act or appropriation. 2,549
(T) The obligations, the transfer thereof, and the income 2,551
therefrom, including any profit made on the sale thereof, at all 2,553
times shall be free from taxation within the state.
Sec. 3318.27. There shall be credited to the school 2,562
facilities bond service fund the moneys received by the state 2,563
from the repayment of loans, including interest thereon, made 2,564
from the school districts facilities fund with moneys derived 2,565
from the proceeds of the sale of obligations under section 2,566
3318.26 of the Revised Code. Such moneys shall be applied as 2,567
provided in sections 3318.21 to 3318.29 of the Revised Code. 2,568
Accounts may be established by the state board of education OHIO 2,570
SCHOOL FACILITIES COMMISSION in the school districts facilities 2,571
fund for particular projects or otherwise. Income from the 2,572
investment of moneys in the school districts facilities fund 2,573
shall be credited to that fund and, as may be provided in bond 2,574
proceedings, to particular accounts therein. The treasurer of 2,575
state may withdraw from the school districts facilities fund or 2,576
the school building program assistance fund, or, subject to 2,577
provisions of the applicable bond proceedings, from any special 2,578
funds established pursuant to the bond proceedings, or from any 2,579
accounts in such funds, any amounts of investment income required 2,580
to be rebated and paid to the federal government in order to 2,581
maintain the exemption from federal income taxation of interest 2,582
on obligations issued under sections 3318.21 to 3318.29 of the 2,583
62
Revised Code, which withdrawal and payment may be made without 2,584
necessity for appropriation.
Sec. 3318.29. The maximum maturity of any obligations 2,593
issued pursuant to section 3318.26 of the Revised Code to provide 2,594
moneys for the school building program assistance fund shall be 2,595
ten years. The terms of the obligations shall be such that in 2,596
any fiscal year the aggregate amount of moneys from the lottery 2,597
profits education fund, and not from other sources, that are 2,598
pledged to pay bond service charges on obligations issued to 2,599
provide moneys for the school building program assistance fund 2,600
shall not exceed ten million dollars. 2,601
As used in this section, "other sources" includes the 2,603
annual investment income on special funds to the extent the 2,604
income will be available for payment of any bond service charges 2,605
in lieu of use of moneys from the lottery profits education fund. 2,606
The annual investment income shall be estimated on the basis of 2,607
the expected funding of those special funds and assumed 2,608
investment earnings thereon at a rate equal to the weighted 2,609
average yield on investments of those special funds determined as 2,610
of any date within sixty days immediately preceding the date of 2,611
issuance of the bonds in respect of which the determination is 2,612
being made. 2,613
The determinations required by this section shall be made 2,615
by the treasurer of state at the time of issuance of an issue of 2,616
obligations and shall be conclusive for purposes of such issuance 2,617
of obligations from and after their issuance and delivery. 2,618
The maximum maturity of obligations issued pursuant to 2,620
section 3318.26 of the Revised Code to provide moneys for the 2,621
school district facilities fund shall not exceed the maximum 2,622
maturity of the loan made from such fund pursuant to section 2,623
3318.24 of the Revised Code utilizing the proceeds of such 2,624
obligations or ten years, whichever is less. The terms of the 2,625
obligations shall be such that in any fiscal year the aggregate 2,626
amount of moneys from the public school building fund that are 2,627
63
pledged to pay bond service charges on obligations issued to 2,628
provide moneys for the school districts facilities fund shall not 2,629
exceed an amount which shall be established by the state board of 2,630
education OHIO SCHOOL FACILITIES COMMISSION. 2,631
Sec. 3318.30. (A) THERE IS HEREBY CREATED THE OHIO SCHOOL 2,634
FACILITIES COMMISSION. THE COMMISSION SHALL ADMINISTER THE 2,635
PROVISION OF FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS FOR THE 2,636
ACQUISITION OR CONSTRUCTION OF CLASSROOM FACILITIES IN ACCORDANCE 2,637
WITH SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,639
THE COMMISSION IS A BODY CORPORATE AND POLITIC, AN AGENCY 2,641
OF STATE GOVERNMENT AND AN INSTRUMENTALITY OF THE STATE, 2,642
PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS OF THIS STATE. THE 2,643
CARRYING OUT OF THE PURPOSES AND THE EXERCISE BY THE COMMISSION 2,644
OF ITS POWERS CONFERRED BY SECTIONS 3318.01 TO 3318.31 OF THE 2,646
REVISED CODE ARE ESSENTIAL PUBLIC FUNCTIONS AND PUBLIC PURPOSES 2,647
OF THE STATE. THE COMMISSION MAY, IN ITS OWN NAME, SUE AND BE 2,648
SUED, ENTER INTO CONTRACTS, AND PERFORM ALL THE POWERS AND DUTIES 2,649
GIVEN TO IT BY SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE 2,651
BUT IT DOES NOT HAVE AND SHALL NOT EXERCISE THE POWER OF EMINENT 2,652
DOMAIN.
(B) THE COMMISSION SHALL CONSIST OF SEVEN MEMBERS, THREE 2,655
OF WHOM ARE VOTING MEMBERS. THE VOTING MEMBERS OF THE COMMISSION 2,656
SHALL BE THE DIRECTOR OF THE OFFICE OF BUDGET AND MANAGEMENT, THE 2,657
DIRECTOR OF ADMINISTRATIVE SERVICES, AND THE SUPERINTENDENT OF 2,658
PUBLIC INSTRUCTION, OR THEIR DESIGNEES. OF THE NONVOTING 2,659
MEMBERS, TWO SHALL BE MEMBERS OF THE SENATE APPOINTED BY THE 2,660
PRESIDENT OF THE SENATE AND TWO SHALL BE MEMBERS OF THE HOUSE OF 2,661
REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE. EACH OF 2,662
THE APPOINTEES OF THE PRESIDENT, AND EACH OF THE APPOINTEES OF 2,663
THE SPEAKER, SHALL BE MEMBERS OF DIFFERENT POLITICAL PARTIES. 2,664
NONVOTING MEMBERS SHALL SERVE AS MEMBERS OF THE COMMISSION 2,666
DURING THE LEGISLATIVE BIENNIUM FOR WHICH THEY ARE APPOINTED, 2,667
EXCEPT THAT ANY SUCH MEMBER WHO CEASES TO BE A MEMBER OF THE 2,668
LEGISLATIVE HOUSE FROM WHICH THE MEMBER WAS APPOINTED SHALL CEASE 2,670
64
TO BE A MEMBER OF THE COMMISSION. EACH NONVOTING MEMBER SHALL BE 2,671
APPOINTED WITHIN THIRTY-ONE DAYS OF THE END OF THE TERM OF THAT 2,672
MEMBER'S PREDECESSOR. SUCH MEMBERS MAY BE REAPPOINTED.
VACANCIES OF NONVOTING MEMBERS SHALL BE FILLED IN THE MANNER 2,673
PROVIDED FOR ORIGINAL APPOINTMENTS. 2,674
MEMBERS OF THE COMMISSION SHALL SERVE WITHOUT COMPENSATION. 2,677
AFTER THE INITIAL NONVOTING MEMBERS OF THE COMMISSION HAVE 2,679
BEEN APPOINTED, THE COMMISSION SHALL MEET AND ORGANIZE BY 2,680
ELECTING VOTING MEMBERS AS THE CHAIRPERSON AND VICE-CHAIRPERSON 2,681
OF THE COMMISSION, WHO SHALL HOLD THEIR OFFICES UNTIL THE NEXT 2,683
ORGANIZATIONAL MEETING OF THE COMMISSION. ORGANIZATIONAL 2,684
MEETINGS OF THE COMMISSION SHALL BE HELD AT THE FIRST MEETING OF 2,685
EACH CALENDAR YEAR. AT EACH ORGANIZATIONAL MEETING, THE 2,686
COMMISSION SHALL ELECT FROM AMONG ITS VOTING MEMBERS A 2,687
CHAIRPERSON AND VICE-CHAIRPERSON, WHO SHALL SERVE UNTIL THE NEXT
ANNUAL ORGANIZATIONAL MEETING. THE COMMISSION SHALL ADOPT RULES 2,689
PURSUANT TO SECTION 111.15 OF THE REVISED CODE FOR THE CONDUCT OF 2,691
ITS INTERNAL BUSINESS AND SHALL KEEP A JOURNAL OF ITS 2,692
PROCEEDINGS. INCLUDING THE ORGANIZATIONAL MEETING, THE 2,693
COMMISSION SHALL MEET AT LEAST ONCE EACH CALENDAR QUARTER. 2,694
TWO VOTING MEMBERS OF THE COMMISSION CONSTITUTE A QUORUM, 2,696
AND THE AFFIRMATIVE VOTE OF TWO MEMBERS IS NECESSARY FOR APPROVAL 2,698
OF ANY ACTION TAKEN BY THE COMMISSION. A VACANCY IN THE 2,699
MEMBERSHIP OF THE COMMISSION DOES NOT IMPAIR A QUORUM FROM
EXERCISING ALL THE RIGHTS AND PERFORMING ALL THE DUTIES OF THE 2,700
COMMISSION. MEETINGS OF THE COMMISSION MAY BE HELD ANYWHERE IN 2,701
THE STATE, AND SHALL BE HELD IN COMPLIANCE WITH SECTION 121.22 OF 2,703
THE REVISED CODE.
(C) THE COMMISSION SHALL FILE AN ANNUAL REPORT OF ITS 2,706
ACTIVITIES AND FINANCES WITH THE GOVERNOR, SPEAKER OF THE HOUSE 2,707
OF REPRESENTATIVES, PRESIDENT OF THE SENATE, AND CHAIRPERSONS OF 2,708
THE HOUSE AND SENATE FINANCE COMMITTEES. 2,709
(D) THE COMMISSION SHALL BE EXEMPT FROM THE REQUIREMENTS 2,712
OF SECTIONS 101.82, 101.84, AND 101.86 OF THE REVISED CODE. 2,713
65
Sec. 3318.31. THE OHIO SCHOOL FACILITIES COMMISSION MAY 2,717
PERFORM ANY ACT AND ENSURE THE PERFORMANCE OF ANY FUNCTION 2,718
NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF, AND 2,719
EXERCISE THE POWERS GRANTED UNDER, SECTIONS 3318.01 TO 3318.31 OF 2,720
THE REVISED CODE, INCLUDING ANY OF THE FOLLOWING: 2,721
(A) EMPLOY AND FIX THE COMPENSATION OF SUCH EMPLOYEES AS 2,725
WILL FACILITATE THE ACTIVITIES AND PURPOSES OF THE COMMISSION, 2,726
AND WHO SHALL SERVE AT THE PLEASURE OF THE COMMISSION.
(B) ADOPT, AMEND, AND RESCIND, PURSUANT TO SECTION 111.15 2,729
OF THE REVISED CODE, RULES FOR THE ADMINISTRATION OF SECTIONS 2,731
3318.01 TO 3318.31 OF THE REVISED CODE. 2,732
(C) CONTRACT WITH, RETAIN THE SERVICES OF, OR DESIGNATE, 2,735
AND FIX THE COMPENSATION OF, SUCH AGENTS, ACCOUNTANTS, ATTORNEYS, 2,736
CONSULTANTS, ADVISERS, AND OTHER INDEPENDENT CONTRACTORS AS MAY 2,737
BE NECESSARY OR DESIRABLE TO CARRY OUT THE PURPOSES OF SECTIONS 2,738
3318.01 TO 3318.31 OF THE REVISED CODE. 2,739
(D) RECEIVE AND ACCEPT ANY GIFTS, GRANTS, DONATIONS, AND 2,742
PLEDGES, AND RECEIPTS THEREFROM, TO BE USED FOR THE PURPOSES OF 2,743
SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,744
(E) MAKE AND ENTER INTO ALL CONTRACTS, COMMITMENTS, AND 2,747
AGREEMENTS, AND EXECUTE ALL INSTRUMENTS, NECESSARY OR INCIDENTAL 2,748
TO THE PERFORMANCE OF ITS DUTIES AND THE EXECUTION OF ITS RIGHTS 2,749
AND POWERS UNDER SECTIONS 3318.01 TO 3318.31 OF THE REVISED CODE. 2,751
Sec. 3318.35. (A) AS USED IN THIS SECTION, "OHIO SCHOOL 2,755
FACILITIES COMMISSION" HAS THE SAME MEANING AS IN SECTION 3318.01 2,756
OF THE REVISED CODE.
(B) THE OHIO SCHOOL FACILITIES COMMISSION SHALL ESTABLISH 2,760
AND ADMINISTER THE EMERGENCY SCHOOL BUILDING REPAIR PROGRAM. 2,761
UNDER THE PROGRAM, THE COMMISSION SHALL DISTRIBUTE MONEYS 2,762
APPROPRIATED BY THE GENERAL ASSEMBLY FOR SUCH PURPOSE TO SCHOOL 2,763
DISTRICTS BEGINNING WITH THOSE DISTRICTS WITH AN ADJUSTED PER 2,764
PUPIL VALUATION LESS THAN THE THRESHOLD VALUATION DEFINED IN 2,765
SECTION 3317.0213 OF THE REVISED CODE. THE COMMISSION SHALL 2,766
DETERMINE AND CERTIFY TO THE CONTROLLING BOARD FOR ITS APPROVAL 2,767
66
ANY DETERMINATION THE COMMISSION MAKES AS TO THE NECESSITY OF 2,768
EMERGENCY REPAIRS BASED ON AN ON-SITE INSPECTION OF THE SCHOOL 2,770
BUILDINGS IN A SCHOOL DISTRICT. ANY SCHOOL DISTRICT THAT 2,771
RECEIVES MONEYS UNDER THIS SECTION SHALL EXPEND THEM ONLY TO 2,772
REPAIR THE FOLLOWING:
(1) HEATING SYSTEMS; 2,774
(2) FLOORS, ROOFS, AND EXTERIOR DOORS; 2,776
(3) AIR DUCTS AND OTHER AIR VENTILATION DEVICES; 2,779
(4) EMERGENCY EXIT OR EGRESS PASSAGEWAY LIGHTING; 2,781
(5) FIRE ALARM SYSTEMS; 2,783
(6) HANDICAPPED ACCESS NEEDS; 2,785
(7) SEWAGE SYSTEMS; 2,787
(8) WATER SUPPLIES; 2,789
(9) ASBESTOS REMOVAL; AND 2,791
(10) ANY OTHER REPAIRS TO A SCHOOL BUILDING THAT MEET THE 2,794
REQUIREMENTS OF THE LIFE SAFETY CODE, AS INTERPRETED BY THE 2,795
COMMISSION.
(C) NO MONEYS FOR EMERGENCY SCHOOL BUILDING REPAIR UNDER 2,798
THIS SECTION SHALL BE DISTRIBUTED TO A SCHOOL DISTRICT TO REPAIR 2,799
A SCHOOL BUILDING THAT THE COMMISSION REASONABLY BELIEVES WILL 2,800
NOT BE NEEDED BY THE DISTRICT OR WILL BE SUBSTANTIALLY REPLACED 2,802
WITHIN THE NEXT SEVEN FISCAL YEARS PURSUANT TO SECTIONS 3318.01 2,803
TO 3318.31 OF THE REVISED CODE. 2,804
(D) AFTER RECEIPT OF MONEYS FROM THE EMERGENCY SCHOOL 2,807
BUILDING REPAIR PROGRAM, NO SCHOOL DISTRICT SHALL BE ELIGIBLE TO 2,808
RECEIVE ADDITIONAL MONEYS FROM THE PROGRAM FOR THE FOLLOWING FIVE 2,809
FISCAL YEARS UNLESS A SCHOOL BUILDING IN THAT DISTRICT IS DAMAGED 2,810
DUE TO AN ACT OF GOD THAT COULD NOT HAVE BEEN PREVENTED BY 2,812
REASONABLE MAINTENANCE OF THAT BUILDING.
Sec. 4115.04. Every public authority authorized to 2,821
contract for or construct with its own forces a public 2,822
improvement, before advertising for bids or undertaking such 2,823
construction with its own forces, shall have the bureau of 2,824
employment services determine the prevailing rates of wages of 2,825
67
mechanics and laborers in accordance with section 4115.05 of the 2,826
Revised Code for the class of work called for by the public 2,827
improvement, in the locality where the work is to be performed. 2,828
Such schedule of wages shall be attached to and made part of the 2,829
specifications for the work, and shall be printed on the bidding 2,830
blanks where the work is done by contract. A copy of the bidding 2,831
blank shall be filed with the bureau before such contract is 2,832
awarded. A minimum rate of wages for common laborers, on work 2,834
coming under the jurisdiction of the department of 2,835
transportation, shall be fixed in each county of the state by 2,836
said department of transportation, in accordance with section 2,837
4115.05 of the Revised Code.
Sections 4115.03 to 4115.16 of the Revised Code do not 2,839
apply to:
(A) Public improvements in any case where the federal 2,841
government or any of its agencies furnishes by loan or grant all 2,843
or any part of the funds used in constructing such improvements, 2,844
provided the federal government or any of its agencies prescribes 2,845
predetermined minimum wages to be paid to mechanics and laborers 2,846
employed in the construction of such improvements; 2,847
(B) A participant of the subsidized employment program 2,849
established under section 5101.82 of the Revised Code or the work 2,850
experience program established under section 5101.83 of the 2,851
Revised Code when a public authority directly uses the labor of 2,853
the participant to construct a public improvement;
(C) PUBLIC IMPROVEMENTS UNDERTAKEN BY, OR UNDER CONTRACT 2,855
FOR, THE BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OR THE 2,856
GOVERNING BOARD OF ANY EDUCATIONAL SERVICE CENTER. 2,857
Section 2. That existing sections 133.06, 3313.372, 2,859
3318.01, 3318.011, 3318.02, 3318.03, 3318.04, 3318.05, 3318.051, 2,861
3318.06, 3318.07, 3318.08, 3318.081, 3318.091, 3318.10, 3318.111, 2,862
3318.12, 3318.13, 3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 2,863
3318.19, 3318.22, 3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 2,864
3318.29, and 4115.04 of the Revised Code are hereby repealed. 2,865
68
Section 3. All personnel, equipment, materials, assets, 2,867
liabilities, and records of the Department of Education, 2,868
irrespective of form or medium, deemed necessary by the Ohio 2,869
School Facilities Commission to implement the provisions of 2,870
Chapter 3318. of the Revised Code shall be transferred to the 2,871
Commission not later than one hundred twenty days after the 2,872
effective date of this section, in accordance with a transition
plan which shall be developed and appproved by the Commission in 2,873
consultation with the Department. 2,874
All appropriations, encumbrances, and funds of the 2,876
Department, including the Public School Building Fund (Fund 021) 2,877
and the School Building Assistance Fund (Fund 032), deemed 2,878
necessary by the Commission to implement the provisions of 2,879
Chapter 3318. of the Revised Code, shall be transferred to the 2,880
Commission not later than one hundred twenty days after the 2,881
effective date of this section in accordance with the transition 2,882
plan.
Any business commenced but not completed by the Department 2,884
on the effective date of this section relating to the 2,885
implementation of Chapter 3318. of the Revised Code and the 2,886
functions transferred by this act shall continue to be 2,887
administered by the Department for a period of one hundred twenty 2,889
days after the effective date of this section or until the 2,890
transition plan described in this section is approved by the Ohio 2,891
School Facilities Commission, whichever occurs first.
The Department shall provide the Commission whatever 2,893
administrative assistance the Commission requires during the 2,894
period of transition, which assistance shall be specified in the 2,895
transition plan described in this section. 2,896
Wherever any law, contract, or other document refers to the 2,898
Department, the State Board of Education, or the Superintendent 2,899
of Public Instruction in regard to the implementation or 2,900
administration of Chapter 3318. of the Revised Code, the 2,901
references shall be deemed to refer to the Commission or the 2,902
69
Director of the Commission. No action or proceeding pending on 2,903
the effective date of this act relating to the implementation or 2,904
administration of Chapter 3318. of the Revised Code is affected 2,905
by the transfer. In all such actions and proceedings, the 2,906
Commission or the Director shall be substituted as a party upon 2,907
application by the receiving entity to the court or other 2,908
appropriate tribunal. 2,909
Section 4. School building assistance projects proposed to 2,911
be funded pursuant to Chapter 3318. of the Revised Code that were 2,913
on a list approved by the State Board of Education as of January 2,914
1993, but which projects had not yet obtained voter approval by 2,915
September 17, 1996, shall be subject to all provisions of Chapter 2,916
3318. of the Revised Code in effect prior to September 17, 1996, 2,917
except that the provisions of division (B) of section 3318.05 of 2,918
the Revised Code, as that section existed after September 17, 2,919
1996, shall apply to those projects with respect to the 2,920
disposition of the half mill levy required by that section. 2,921
Section 5. SFC SCHOOL FACILITIES COMMISSION 2,923
General Revenue Fund 2,925
GRF 230-428 Lease Rental Payments $ 21,780,000 $ 36,030,000 2,929
TOTAL GRF General Revenue Fund $ 21,780,000 $ 36,030,000 2,931
State Special Revenue Fund 2,934
5E3 230-644 Operating Expenses $ 2,000,000 $ 2,400,000 2,939
Total SSR State Special Revenue $ 2,000,000 $ 2,400,000 2,943
Fund Group
TOTAL ALL BUDGET FUND GROUPS $ 23,780,000 $ 38,430,000 2,946
Operating Expenses 2,949
The foregoing appropriation item 230-644, Operating 2,951
Expenses, shall be used by the Ohio School Facilities Commission 2,952
to carry out its responsibilities pursuant to this section and 2,953
Chapter 3318. of the Revised Code. 2,954
There is hereby created in the state treasury the Ohio 2,956
School Facilities Commission Fund (Fund 5E3). The fund shall 2,957
consist of transfers of moneys authorized by the General 2,958
70
Assembly, grants and other revenues described in division (D) of 2,959
section 3318.31 of the Revised Code, and investment earnings of 2,960
the fund. Moneys credited to the fund may be used by the 2,961
commission for staffing and other administrative expenses, to 2,962
conduct evaluations of school facilities, to prepare building 2,963
design specifications, to provide project management services, 2,964
and for any other purposes deemed necessary by the commission 2,965
consistent with Chapter 3318. of the Revised Code. 2,966
Within 10 days of the effective date of this section, the 2,968
Director of Budget and Management shall transfer up to $2,000,000 2,969
by intrastate transfer voucher from the School Facilities 2,970
Commission's appropriation item 230-428, Lease Rental Payments, 2,971
to the Ohio School Facilities Commission Fund (Fund 5E3). In 2,972
fiscal year 1999, by July 10, 1998, the Director of Budget and 2,973
Management shall transfer up to $2,400,000 by intrastate transfer
voucher from the School Facilities Commission's line item 230-428 2,975
Lease Rental Payments to the Ohio School Facilities Commission 2,976
Fund (Fund 5E3). Investment earnings to the School Building 2,977
Assistance Fund (Fund 032) in excess of the amounts required to 2,978
meet estimated federal arbitrage rebate requirements may be 2,979
transferred at the request of the Ohio School Facilities
Commission by the Director of Budget and Management to the Ohio 2,980
School Facilities Commission Fund (Fund 5E3). Investment 2,981
earnings to the Public School Building Fund (Fund 021) and 2,982
repayments to the Public School Building Fund (Fund 021) made
pursuant to Chapter 3318. of the Revised Code may be tranferred 2,983
at the request of the Ohio School Facilities Commission by the 2,984
Director of Budget and Management to the Ohio School Facilities 2,985
Commission Fund (Fund 5E3).
Lease Rental Payments 2,987
After the transfers described in this section under the 2,989
heading, "Operating Expenses" are made, the remaining 2,990
appropriation shall be used by the School Facilities Commission 2,991
to meet all payments at the times required to be made during the 2,993
71
period from July 1, 1997, to June 30, 1999, to pay bond service 2,994
charges on obligations issued pursuant to Chapter 3318. of the 2,995
Revised Code.
Section 6. Debt Service Appropriations 2,997
General revenue appropriations to the School Facilities 2,999
Commission include $21,780,000 in fiscal year 1998 and 3,000
$36,030,000 in fiscal year 1999 for appropriation item 230-428, 3,002
Lease Rental Payments.
Of the $699,417,200 in fiscal year 1998 and $702,623,028 in 3,004
fiscal year 1999 that is estimated to be transferred from the 3,005
State Lottery Fund to the Lottery Profits Education Fund, up to 3,006
$21,280,000 in fiscal year 1998 and $31,530,000 in fiscal year 3,007
1999 shall first be transferred from the Lottery Profits 3,009
Education Fund to the General Revenue Fund for reimbursement of 3,010
funds spent under appropriation item 230-428, Lease Rental 3,011
Payments. These funds shall then be transferred by the Director 3,012
of Budget and Management to the School Building Program Bond 3,013
Service Fund pursuant to section 3770.06 of the Revised Code. 3,014
Section 7. All items set forth in this section are hereby 3,016
appropriated out of any moneys in the state treasury to the 3,017
credit of the School Building Program Assistance Fund (Fund 032). 3,019
Revenues to the School Building Program Assistance Fund shall 3,020
consist of proceeds of obligations authorized to pay costs of 3,021
capital facilities as defined in section 3318.21 of the Revised 3,022
Code.
Appropriations 3,024
SFC SCHOOL FACILITIES COMMISSION 3,025
CAP-737 School Building Program Assistance $ 300,000,000 3,029
Total School Facilities Commission $ 300,000,000 3,031
School Building Assistance 3,034
Of the foregoing appropriation item CAP-737, School 3,036
Building Program Assistance, up to $200,000,000 shall be used by 3,037
the Ohio School Facilities Commission to provide funds to schools 3,038
that receive conditional approval by the Ohio School Facilities 3,040
72
Commission pursuant to Chapter 3318. of the Revised Code.
Up to $50,000,000 of that amount shall be used by the Ohio 3,042
School Facilities Commission to administer the Emergency School 3,043
Building Repair Program, pursuant to section 3318.35 of the 3,044
Revised Code.
Of the foregoing appropriation item CAP-737, School 3,046
Building Program Assistance, notwithstanding Chapter 3318. of the 3,047
Revised Code, up to $100,000,000 shall be used by the Ohio School 3,048
Facilities Commission to provide funds to the big eight school 3,049
districts to be used for major renovations and repairs of school 3,052
facilities. Funds shall be allocated to the school districts on 3,053
a per pupil basis, based on fiscal year 1997 total average daily 3,054
membership as defined in section 3317.03 of the Revised Code. To 3,055
be eligible to receive these funds, each school district shall: 3,056
(1) Provide a 100 per cent match from funds that are 3,059
approved by the Ohio School Facilities Commission;
(2) Develop and submit a capital renovations plan for the 3,061
use of state and local funds subject to approval by the Ohio 3,062
School Facilities Commission. 3,063
As used in this section, "big eight school district" means 3,065
a school district that for fiscal year 1997 had a percentage of 3,066
children residing in the district and receiving Aid to Dependent 3,067
Children greater than thirty per cent, as reported pursuant to 3,068
section 3317.10 of the Revised Code, and had an average daily 3,069
membership greater than twelve thousand, as reported pursuant to 3,070
division (A) of section 3317.03 of the Revised Code. 3,072
Section 8. The Treasurer of State is hereby authorized to 3,074
issue and sell, in accordance with the provisions of Section 2i 3,075
of Article VIII, Ohio Constitution, and section 3318.26 of the 3,076
Revised Code, original obligations in an aggregate principal 3,077
amount not to exceed $300,000,000 in addition to the original 3,078
issuance of obligations heretofore authorized by prior acts of 3,079
the General Assembly. These authorized obligations shall be 3,080
issued to provide funds appropriated in this act for the School 3,081
73
Building Program Assistance Fund for the Ohio School Facilities 3,082
Commission to distribute pursuant to Chapter 3318. of the Revised 3,084
Code, the owners or holders of which shall have no right to have 3,085
excises or taxes levied by the General Assembly for the payment 3,086
of principal or interest thereon.
Section 9. The codified and uncodified sections of law 3,088
contained in this act, and the items of law of which the codified 3,090
and uncodified sections of law contained in this act are 3,091
composed, are not subject to the referendum. Therefore, under 3,092
Ohio Constitution, Article II, Section 1d and section 1.471 of 3,093
the Revised Code, the codified and uncodified sections of law 3,094
contained in this act, and the items of law of which the codified 3,095
and uncodified sections of law contained in this act are 3,096
composed, go into immediate effect when this act becomes law. 3,097
Section 10. Section 4115.04 of the Revised Code is 3,099
presented in this act as a composite of the section as amended by 3,100
both Sub. H.B. 167 and Am. Sub. S.B. 162 of the 121st General 3,101
Assembly, with the new language of neither of the acts shown in 3,103
capital letters. This is in recognition of the principle stated 3,104
in division (B) of section 1.52 of the Revised Code that such 3,105
amendments are to be harmonized where not substantively 3,106
irreconcilable and constitutes a legislative finding that such is 3,107
the resulting version in effect prior to the effective date of 3,108
this act.
Section 11. The Ohio School Facilities Commission shall 3,110
establish specifications for plans and materials for classroom 3,111
facilities to be constructed under Chapter 3318. of the Revised 3,112
Code, as required by section 3318.091 of the Revised Code, not 3,113
later than October 15, 1997.
Section 12. School building assistance projects of school 3,115
districts contained, as of the effective date of this section, in 3,116
the first through tenth percentiles as defined under division (P) 3,118
of section 3318.01 of the Revised Code, that were proposed and 3,119
conditionally approved before such effective date, but which 3,121
74
projects had not yet obtained voter approval on such effective
date, shall be subject to all provisions of Chapter 3318. of the 3,122
Revised Code in effect prior to such effective date, except that 3,123
the provision of section 3318.04 of the Revised Code, as amended 3,124
by this act, that prohibits school districts in the first through 3,125
tenth percentiles from being required to pay any portion of the 3,127
basic project cost shall apply to those projects.
Section 13. (A) Notwithstanding anything to the contrary 3,129
in Chapter 3318. of the Revised Code, the Ohio School Facilities 3,130
Commission shall first consider for approval and funding, without 3,131
regard to division (B)(2) of section 3318.02 of the Revised Code, 3,132
projects as defined under section 3318.01 of the Revised Code 3,133
proposed by a city, exempted village, or local school district 3,134
that notifies and certifies in writing to the Commission that the 3,135
district meets all of the following requirements: 3,136
(1) The district is contained in the first quartile of the 3,138
most recent ranking of school districts according to adjusted 3,139
valuation per pupil compiled pursuant to section 3318.011 of the 3,140
Revised Code;
(2) The district has an assessment of its classroom 3,142
facility needs performed by a professional person or firm 3,143
qualified to assess the facility needs of the district; 3,144
(3) The proposed project has been developed with input 3,146
from the community and has been approved by the district's 3,147
Business Advisory Council.
(B) For a school district proposing a project which meets 3,149
all of the requirements of division (A) of this section, the Ohio 3,150
School Facilities Commission shall reserve and encumber an amount 3,151
equal to the state's portion of the basic project cost as defined 3,152
under section 3318.01 of the Revised Code and computed in the 3,153
same manner as if the project were approved by the Commission 3,154
pursuant to the procedures specified under sections 3318.02 to
3318.05 of the Revised Code. The Commission shall reserve and 3,155
encumber such amount immediately upon the district's meeting all 3,156
75
such requirements and shall not release the amount for other 3,157
projects unless a majority affirmative vote is not obtained on 3,158
the tax levies, or on the bond issue and tax levies, as required 3,160
by section 3318.06 of the Revised Code, within one year after the
amount is reserved and encumbered. The Commission and the school 3,161
district shall comply with all other applicable requirements of 3,162
Chapter 3318. of the Revised Code with respect to the completion, 3,164
utilization, and payment for the classroom facilities acquired or
constructed under the project as if the project were approved 3,165
pursuant to the procedures specified under sections 3318.02 to 3,166
3318.05 of the Revised Code.
Section 14. A school district having a project that is 3,168
approved for funding under section 3318.04 of the Revised Code on 3,169
or after the effective date of this section, which district has 3,170
approved a tax levy for building maintenance of at least one-half 3,171
mill within the year prior to the effective date of this section, 3,172
shall not be required to levy the tax described under division
(B) of section 3318.06 of the Revised Code in order to qualify 3,173
for such project funding. 3,174