As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                                 H. B. No. 220   5            

      1999-2000                                                    6            


     REPRESENTATIVES HOUSEHOLDER-WILLAMOWSKI-BENDER-MOTTLEY-       8            

      CATES-JACOBSON-CORBIN-MEAD-WILLIAMS-HOLLISTER-KREBS-         9            

                    TERWILLEGER-EVANS-PADGETT                      10           


_________________________________________________________________   11           

                          A   B I L L                                           

             To amend sections 9.38, 133.06, 135.12, 3313.31,      14           

                3313.37, 3313.375, and 3313.46 and to enact        15           

                section 3313.291 of the Revised Code to permit     17           

                school districts to establish petty cash accounts  18           

                to be accessed by district officials by check or   19           

                debit card, to change the time period for local    20           

                public officials to deposit public moneys, to      23           

                decrease the frequency with which subdivisions                  

                must designate their public depositories, to       24           

                permit subdivisions to change the designated                    

                depositories under certain circumstances, to       25           

                exempt school-district-issued securities from                   

                debt limits to the extent certain payments in      26           

                lieu of taxes are pledged to repaying the          27           

                securities, to require school boards to advertise  29           

                for bids for construction contracts at least two                

                consecutive weeks instead of four consecutive      31           

                weeks, to modify the terms of school district                   

                lease-purchase agreements for buildings, and to    32           

                permit joint vocational school districts to enter  33           

                into such agreements.                                           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        35           

      Section 1.  That sections 9.38, 133.06, 135.12, 3313.31,     38           

3313.37, 3313.375, and 3313.46 be amended and section 3313.291 of  40           

                                                          2      


                                                                 
the Revised Code be enacted to read as follows:                    41           

      Sec. 9.38.  As used in this section and section 9.39 of the  50           

Revised Code, "color of office," "public office," and "public      51           

official" have the same meanings as in section 117.01 of the       52           

Revised Code.                                                      53           

      A PERSON WHO IS A state officer, employee, or agent shall    55           

pay to the treasurer of state all public moneys received by him    56           

THAT PERSON as required by rule of the treasurer of state adopted  58           

pursuant to section 113.09 of the Revised Code.  A PERSON WHO IS   59           

A public official other than a state officer, employee, or agent   61           

shall deposit all public moneys received by him THAT PERSON with   62           

the treasurer of the public office or properly designated          63           

depository once every twenty-four consecutive hours ON THE         65           

BUSINESS DAY NEXT FOLLOWING THE DAY OF RECEIPT, IF THE TOTAL                    

AMOUNT OF SUCH MONEYS RECEIVED EXCEEDS ONE THOUSAND DOLLARS.  IF   67           

THE TOTAL AMOUNT OF THE PUBLIC MONEYS SO RECEIVED DOES NOT EXCEED  68           

ONE THOUSAND DOLLARS, THE PERSON SHALL DEPOSIT THE MONEYS ON THE   69           

BUSINESS DAY NEXT FOLLOWING THE DAY OF RECEIPT, UNLESS THE PUBLIC  71           

OFFICE OF WHICH THAT PERSON IS A PUBLIC OFFICIAL ADOPTS A POLICY   72           

PERMITTING A DIFFERENT TIME PERIOD, NOT TO EXCEED THREE BUSINESS                

DAYS NEXT FOLLOWING THE DAY OF RECEIPT, FOR MAKING SUCH DEPOSITS,  74           

AND THE PERSON IS ABLE TO SAFEGUARD THE MONEYS UNTIL SUCH TIME AS  76           

THE MONEYS ARE DEPOSITED.  THE POLICY SHALL INCLUDE PROVISIONS                  

AND PROCEDURES TO SAFEGUARD THE PUBLIC MONEYS UNTIL THEY ARE       78           

DEPOSITED.  IF THE PUBLIC OFFICE OF WHICH THE PERSON IS A PUBLIC   79           

OFFICIAL IS GOVERNED BY A LEGISLATIVE AUTHORITY, ONLY THE          80           

LEGISLATIVE AUTHORITY MAY ADOPT SUCH A POLICY.  If a PERSON WHO    81           

IS A public official receives public moneys for a public office    83           

of which he THAT PERSON is not a public official, he THAT PERSON   84           

shall, during the first business day of the next week, pay to the  85           

proper public official of the proper public office the moneys so   86           

received during the current week.                                  87           

      Sec. 133.06.  (A)  A school district shall not incur,        96           

without a vote of the electors, net indebtedness that exceeds an   97           

                                                          3      


                                                                 
amount equal to one-tenth of one per cent of its tax valuation,    98           

except as provided in divisions (G) and (H) of this section and    100          

in division (C) of section 3313.372 of the Revised Code.           101          

      (B)  Except as provided in divisions (E) and (F) of this     103          

section, a school district shall not incur net indebtedness that   104          

exceeds an amount equal to nine per cent of its tax valuation.     105          

      (C)  A school district shall not submit to a vote of the     107          

electors the question of the issuance of securities in an amount   108          

that will make the district's net indebtedness after the issuance  109          

of the securities exceed an amount equal to four per cent of its   110          

tax valuation, unless the superintendent of public instruction,    111          

acting under policies adopted by the state board of education,     112          

and the tax commissioner, acting under written policies of the     113          

commissioner, consent to the submission.  A request for the        114          

consents shall be made at least thirty days prior to the election  115          

at which the question is to be submitted, except that the          116          

superintendent of public instruction and the tax commissioner may  117          

waive this thirty-day deadline or grant their consents after the   118          

election if the school district shows good cause for such waiver   119          

or consent after the election.                                     120          

      (D)  In calculating the net indebtedness of a school         122          

district, none of the following shall be considered:               123          

      (1)  Securities issued to acquire school buses and other     125          

equipment used in transporting pupils or issued pursuant to        126          

division (D) of section 133.10 of the Revised Code;                127          

      (2)  Securities issued under division (F) of this section,   129          

under section 133.301 of the Revised Code, and, to the extent in   130          

excess of the limitation stated in division (B) of this section,   131          

under division (E) of this section;                                132          

      (3)  Indebtedness resulting from the dissolution of a joint  134          

vocational school district under section 3311.217 of the Revised   135          

Code, evidenced by outstanding securities of that joint            136          

vocational school district;                                        137          

      (4)  Loans, evidenced by any securities, received under      139          

                                                          4      


                                                                 
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the        140          

Revised Code;                                                      141          

      (5)  Debt incurred under section 3313.374 of the Revised     143          

Code;                                                                           

      (6)  Debt incurred pursuant to division (B)(5) of section    146          

3313.37 of the Revised Code to acquire computers and related                    

hardware.                                                                       

      (E)  A school district may become a special needs district   148          

as to certain securities as provided in division (E) of this       149          

section.                                                           150          

      (1)  A board of education, by resolution, may declare its    152          

school district to be a special needs district by determining      153          

both of the following:                                             154          

      (a)  The student population is not being adequately          156          

serviced by the existing permanent improvements of the district.   157          

      (b)  The district cannot obtain sufficient funds by the      159          

issuance of securities within the limitation of division (B) of    160          

this section to provide additional or improved needed permanent    161          

improvements in time to meet the needs.                            162          

      (2)  The board of education shall certify a copy of that     164          

resolution to the superintendent of public instruction with a      165          

statistical report showing all of the following:                   166          

      (a)  A history of and a projection of the growth of the      168          

student population;                                                169          

      (b)  The history of and a projection of the growth of the    171          

tax valuation;                                                     172          

      (c)  The projected needs;                                    174          

      (d)  The estimated cost of permanent improvements proposed   176          

to meet such projected needs.                                      177          

      (3)  The superintendent of public instruction shall certify  179          

the district as an approved special needs district if the          180          

superintendent finds both of the following:                        181          

      (a)  The district does not have available sufficient         183          

additional funds from state or federal sources to meet the         184          

                                                          5      


                                                                 
projected needs.                                                   185          

      (b)  The projection of the potential average growth of tax   187          

valuation during the next five years, according to the             188          

information certified to the superintendent and any other          189          

information the superintendent obtains, indicates a likelihood of  190          

potential average growth of tax valuation of the district during   191          

the next five years of an average of not less than three per cent  192          

per year.  The findings and certification of the superintendent    193          

shall be conclusive.                                               194          

      (4)  An approved special needs district may incur net        196          

indebtedness by the issuance of securities in accordance with the  197          

provisions of this chapter in an amount that does not exceed an    198          

amount equal to the greater of the following:                      199          

      (a)  Nine per cent of the sum of its tax valuation plus an   201          

amount that is the product of multiplying that tax valuation by    202          

the percentage by which the tax valuation has increased over the   203          

tax valuation on the first day of the sixtieth month preceding     204          

the month in which its board determines to submit to the electors  205          

the question of issuing the proposed securities;                   206          

      (b)  Nine per cent of the sum of its tax valuation plus an   208          

amount that is the product of multiplying that tax valuation by    209          

the percentage, determined by the superintendent of public         210          

instruction, by which that tax valuation is projected to increase  211          

during the next ten years.                                         212          

      (F)  A school district may issue securities for emergency    214          

purposes, in a principal amount that does not exceed an amount     215          

equal to three per cent of its tax valuation, as provided in this  216          

division.                                                          217          

      (1)  A board of education, by resolution, may declare an     219          

emergency if it determines both of the following:                  220          

      (a)  School buildings or other necessary school facilities   222          

in the district have been wholly or partially destroyed, or        223          

condemned by a constituted public authority, or that such          224          

buildings or facilities are partially constructed, or so           225          

                                                          6      


                                                                 
constructed or planned as to require additions and improvements    226          

to them before the buildings or facilities are usable for their    227          

intended purpose, or that corrections to permanent improvements    228          

are necessary to remove or prevent health or safety hazards.       229          

      (b)  Existing fiscal and net indebtedness limitations make   231          

adequate replacement, additions, or improvements impossible.       232          

      (2)  Upon the declaration of an emergency, the board of      234          

education may, by resolution, submit to the electors of the        235          

district pursuant to section 133.18 of the Revised Code the        236          

question of issuing securities for the purpose of paying the       237          

cost, in excess of any insurance or condemnation proceeds          238          

received by the district, of permanent improvements to respond to  239          

the emergency need.                                                240          

      (3)  The procedures for the election shall be as provided    242          

in section 133.18 of the Revised Code, except that:                243          

      (a)  The form of the ballot shall describe the emergency     245          

existing, refer to this division as the authority under which the  246          

emergency is declared, and state that the amount of the proposed   247          

securities exceeds the limitations prescribed by division (B) of   248          

this section;                                                      249          

      (b)  The resolution required by division (B) of section      251          

133.18 of the Revised Code shall be certified to the county        252          

auditor and the board of elections at least seventy-five days      253          

prior to the election;                                             254          

      (c)  The county auditor shall advise and, not later than     256          

sixty-five days before the election, confirm that advice by        257          

certification to, the board of education of the information        258          

required by division (C) of section 133.18 of the Revised Code;    259          

      (d)  The board of education shall then certify its           261          

resolution and the information required by division (D) of         262          

section 133.18 of the Revised Code to the board of elections not   263          

less than sixty days prior to the election.                        264          

      (4)  Notwithstanding division (B) of section 133.21 of the   266          

Revised Code, the first principal payment of securities issued     267          

                                                          7      


                                                                 
under this division may be set at any date not later than sixty    268          

months after the earliest possible principal payment otherwise     269          

provided for in that division.                                     270          

      (G)  The board of education may contract with an architect,  272          

professional engineer, or other person experienced in the design   273          

and implementation of energy conservation measures for an          274          

analysis and recommendations pertaining to installations,          275          

modifications of installations, or remodeling that would           276          

significantly reduce energy consumption in buildings owned by the  277          

district.  The report shall include estimates of all costs of      278          

such installations, modifications, or remodeling, including costs  279          

of design, engineering, installation, maintenance, repairs, and    280          

debt service, and estimates of the amounts by which energy         281          

consumption and resultant operational and maintenance costs, as    282          

defined by the Ohio school facilities commission, would be         284          

reduced.                                                                        

      If the board finds after receiving the report that the       286          

amount of money the district would spend on such installations,    287          

modifications, or remodeling is not likely to exceed the amount    288          

of money it would save in energy and resultant operational and     289          

maintenance costs over the ensuing fifteen years, the board may    291          

submit to the commission a copy of its findings and a request for  292          

approval to incur indebtedness to finance the making or            294          

modification of installations or the remodeling of buildings for   295          

the purpose of significantly reducing energy consumption.          296          

      If the commission determines that the board's findings are   299          

reasonable, it shall approve the board's request.  Upon receipt    300          

of the commission's approval, the district may issue securities    302          

without a vote of the electors in a principal amount not to        303          

exceed nine-tenths of one per cent of its tax valuation for the    304          

purpose of making such installations, modifications, or            305          

remodeling, but the total net indebtedness of the district         306          

without a vote of the electors incurred under this and all other   307          

sections of the Revised Code shall not exceed one per cent of the  308          

                                                          8      


                                                                 
district's tax valuation.                                          309          

      So long as any securities issued under division (G) of this  312          

section remain outstanding, the board of education shall monitor                

the energy consumption and resultant operational and maintenance   313          

costs of buildings in which installations or modifications have    315          

been made or remodeling has been done pursuant to division (G) of  316          

this section and shall maintain and annually update a report       318          

documenting the reductions in energy consumption and resultant     319          

operational and maintenance cost savings attributable to such      320          

installations, modifications, or remodeling.  The report shall be  321          

certified by an architect or engineer independent of any person    322          

that provided goods or services to the board in connection with    323          

the energy conservation measures that are the subject of the       324          

report.  The resultant operational and maintenance cost savings    325          

shall be certified by the school district treasurer.  The report   326          

shall be made available to the commission upon request.            327          

      (H)  With the consent of the superintendent of public        329          

instruction, a school district may incur without a vote of the     330          

electors net indebtedness that exceeds the amounts stated in       331          

divisions (A) and (G) of this section for the purpose of paying    333          

costs of permanent improvements, if and to the extent that both    334          

of the following conditions are satisfied:                         335          

      (1)  The fiscal officer of the school district estimates     337          

that receipts of the school district from payments made under OR   338          

PURSUANT TO agreements entered into pursuant to division (F) of    341          

section 725.02, 1728.10, 3735.671, 5709.081 or section, 5709.082,  342          

5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78,    343          

OR 5709.82 of the Revised Code, or distributions under division    344          

(C) of section 5709.43 of the Revised Code, or any combination     345          

thereof, are, after accounting for any appropriate coverage        346          

requirements, sufficient in time and amount, and are committed by  347          

the proceedings, to pay the debt charges on the securities issued  348          

to evidence that indebtedness and payable from those receipts,     349          

and the taxing authority of the district confirms the fiscal       350          

                                                          9      


                                                                 
officer's estimate, which confirmation is approved by the          351          

superintendent of public instruction;                              352          

      (2)  The fiscal officer of the school district certifies,    354          

and the taxing authority of the district confirms, that the        355          

district, at the time of the certification and confirmation,       356          

reasonably expects to have sufficient revenue available for the    357          

purpose of operating such permanent improvements for their         358          

intended purpose upon acquisition or completion thereof, and the   359          

superintendent of public instruction approves the taxing           360          

authority's confirmation.                                          361          

      The maximum maturity of securities issued under division     363          

(H) of this section shall be the lesser of twenty years or the     364          

maximum maturity calculated under section 133.20 of the Revised    365          

Code.                                                              366          

      Sec. 135.12.  The state board of deposit shall meet on the   376          

third Monday of March in the odd-numbered years for the purpose    377          

of designating the public depositories of the public moneys of     378          

the state, and at such meeting or any adjourned session thereof    379          

shall designate such public depositories and award the public      380          

moneys of the state to and among the public depositories so        381          

designated for the period of two years commencing on the first     382          

Monday of April next following.                                    383          

      Each other governing board shall meet every two FIVE years   385          

on the third Monday or such regularly scheduled meeting date of    386          

the month next preceding the date of the expiration of its         387          

designation of depositories for the purpose of designating the     388          

public depositories of the public moneys of the subdivision, and   389          

at such meeting or any adjourned session thereof, shall designate  390          

such public depositories and award the public moneys of the        391          

subdivision to and among the public depositories so designated     392          

for the period of two FIVE years commencing on the date of the     393          

expiration of the next preceding designation. Such designation     395          

and award shall be made in duplicate; one copy shall be retained   396          

by the governing board of the subdivision and one copy shall be    397          

                                                          10     


                                                                 
certified to the treasurer.                                                     

      IF A GOVERNING BOARD OTHER THAN THE STATE BOARD OF DEPOSIT   399          

DETERMINES, DURING A DESIGNATION PERIOD, THAT A PUBLIC DEPOSITORY  400          

DESIGNATED UNDER THIS SECTION IS INSOLVENT OR OPERATING IN AN      401          

UNSOUND OR UNSAFE MANNER, THE GOVERNING BOARD MAY MEET AND         402          

DESIGNATE A DIFFERENT PUBLIC DEPOSITORY OF THE PUBLIC MONEYS OF    403          

THE SUBDIVISION FOR THE REMAINDER OF THE DESIGNATION PERIOD.                    

      Whenever, by amendment or enactment of any state or federal  405          

law or the amendment or adoption of any valid regulation           406          

thereunder, the terms of a designation or award, lawful at the     407          

beginning of any DESIGNATION period of designation, cease to be    408          

lawful during such period, and if such change of law or            410          

regulation requires, the DESIGNATION period of designation shall   411          

be limited so as not to extend beyond the date when such change    413          

becomes effective.  In such case, the proper governing board       414          

shall meet and designate the public depositories of the public     415          

moneys of the state or of the subdivision for the remainder of     416          

the DESIGNATION period of two years.                               417          

      Sec. 3313.291.  THE BOARD OF EDUCATION OF A SCHOOL DISTRICT  420          

MAY ADOPT A RESOLUTION ESTABLISHING A PETTY CASH ACCOUNT FROM      421          

WHICH A DESIGNATED DISTRICT OFFICIAL MAY DRAW MONEYS BY CHECK      422          

SIGNED BY THAT OFFICIAL OR BY DEBIT CARD FOR PURCHASES MADE        423          

WITHIN THE DISTRICT.  THE RESOLUTION ESTABLISHING THE ACCOUNT      424          

SHALL SPECIFY THE MAXIMUM AMOUNT OF MONEY THAT MAY BE PLACED IN    425          

THE ACCOUNT; DESIGNATE THE DISTRICT OFFICIALS WHO MAY DRAW MONEYS  426          

FROM THE ACCOUNT, OR REQUIRE THE TREASURER OF SUCH BOARD TO        427          

DESIGNATE SUCH OFFICIALS; AND SPECIFY THE REQUIREMENTS AND         428          

PROCEDURES FOR REPLENISHING THE ACCOUNT.                                        

      Sec. 3313.31.  All the duties and obligations of the county  437          

auditor, county treasurer, or other officer or person relating to  438          

the moneys of a school district shall be complied with by dealing  439          

with the treasurer of the board of education thereof.              440          

      THE TREASURER SHALL BE THE CHIEF FISCAL OFFICER OF THE       442          

SCHOOL DISTRICT AND SHALL BE RESPONSIBLE FOR THE FINANCIAL         443          

                                                          11     


                                                                 
AFFAIRS OF THE DISTRICT, SUBJECT TO THE DIRECTION OF THE DISTRICT  444          

BOARD OF EDUCATION.  EXCEPT AS OTHERWISE REQUIRED BY LAW, NO       445          

TREASURER SHALL BE REQUIRED TO VERIFY THE ACCURACY OF              446          

NONFINANCIAL INFORMATION OR DATA OF THE SCHOOL DISTRICT.           448          

      Sec. 3313.37.  (A)  The board of education of any city,      457          

local, or exempted village school district may build, enlarge,     458          

repair, and furnish the necessary schoolhouses, purchase or lease  459          

sites therefor, or rights-of-way thereto, or purchase or lease     460          

real estate to be used as playgrounds for children or rent         461          

suitable schoolrooms, either within or without the district, and   462          

provide the necessary apparatus and make all other necessary       463          

provisions for the schools under its control.  The governing       464          

board of any educational service center may build, enlarge,        466          

repair, and furnish the necessary facilities for conducting        467          

special education programs and driver education courses, purchase  468          

or lease sites therefor, or rights-of-way thereto, or purchase or  470          

lease real estate or rent suitable facilities to be used for such  471          

purposes and provide the necessary apparatus and make all other    472          

necessary provisions for such facilities as are under its          473          

control.                                                           474          

      (B)(1)  Boards of education of city, local, and exempted     476          

village SCHOOL districts may acquire land by gift or devise, by    479          

purchase, or by appropriation.  Lands purchased may be purchased   480          

for cash, by installment payments, with or without a mortgage, by  481          

entering into lease-purchase agreements, or by lease with an       482          

option to purchase, provided that if the purchase price is to be   483          

paid over a period of time, such payments shall not extend for a   484          

period of more than five years, and a.  A special tax levy shall   485          

MAY be authorized by the voters of the school district in          486          

accordance with section 5705.21 of the Revised Code to provide a   487          

special fund to meet the future time payments.                     488          

      (2)  For the purposes of section 5705.21 of the Revised      490          

Code, acquisition of land under the provisions of this division    491          

shall be considered a necessary requirement of the school          492          

                                                          12     


                                                                 
district.                                                          493          

      (3)  Boards of education of city, local, and exempted        495          

village SCHOOL districts may acquire federal land at a discount    497          

by a lease-purchase agreement for use as a site for the                         

construction of educational facilities or for other related        498          

purposes.  External administrative and other costs pertaining to   499          

the acquisition of federal land at a discount may be paid from     500          

funds available to the school district for operating purposes.     501          

Such boards of education may also acquire federal land by          502          

lease-purchase agreements, by negotiation, or otherwise.           503          

      (4)  As used in this division:                               505          

      (a)  "Office equipment" includes but is not limited to       507          

typewriters, copying and duplicating equipment, and computer and   508          

data processing equipment.                                         509          

      (b)  "Software for instructional purposes" includes          511          

computer programs usable for computer assisted instruction,        512          

computer managed instruction, drill and practice, and problem      513          

simulations.                                                       514          

      A board of education or governing board of an  educational   516          

service center may acquire the necessary office equipment, and     518          

computer hardware and software for instructional purposes, for     519          

the schools under its control by purchase, by lease, by            520          

installment payments, by entering into lease-purchase agreements,  521          

or by lease with an option to purchase.  In the case of a city,    522          

exempted village, or local school district, if the purchase price  523          

is to be paid over a period of time, the contract setting forth    524          

the terms of such purchase shall be considered a continuing        525          

contract pursuant to section 5705.41 of the Revised Code.          526          

Payments shall not extend for a period of more than five years.    528          

Costs relating to the acquisition of necessary apparatus may be    529          

paid from funds available to the school district or educational    530          

service center for operating purposes.                                          

      (5)  A board of education or governing board of an           532          

educational service center may acquire the necessary equipment     533          

                                                          13     


                                                                 
for the maintenance or physical upkeep of facilities and land      534          

under its control by entering into lease-purchase agreements.  If  535          

payments under the lease-purchase agreement are to be made over a  536          

period of time, the agreement shall be considered a continuing     537          

contract pursuant to section 5705.41 of the Revised Code, and      538          

such payments shall not extend for a period of more than five      539          

years.                                                                          

      Sec. 3313.375.  The board of education of a city, local, or  548          

exempted village, OR JOINT VOCATIONAL school district may enter    549          

into a lease-purchase agreement providing for the construction,;   551          

ENLARGING OR OTHER IMPROVEMENT, FURNISHING, AND EQUIPPING;         553          

lease,; and eventual acquisition of a building for any school      554          

district purpose.  The agreement shall provide for a lease for a   555          

term of SERIES OF ONE-YEAR RENEWABLE LEASE TERMS TOTALING not      556          

more than thirty years.  The agreement shall provide that at the                

end of the SERIES OF lease TERMS PROVIDED FOR IN THE AGREEMENT     557          

the title to the buildings, together with the land on which the    559          

building is situated, LEASED PROPERTY shall be vested in the                    

school district, IF ALL OBLIGATIONS OF THE SCHOOL DISTRICT         560          

PROVIDED FOR IN THE AGREEMENT HAVE BEEN SATISFIED.  The agreement  562          

may, in addition to the rental payments made by the school                      

district under the lease, require the school district to pay the   564          

lessor a lump-sum amount at the end of the lease as a condition    565          

of obtaining title to the building and land.  The agreement shall  566          

permit a school district to cancel the lease and cease making      568          

rental payments without penalty or additional cost if the          569          

district notifies the lessor of its intention to cancel the lease  570          

not more than one year prior to the date upon which such           571          

cancellation takes effect LEASED PROPERTY.  In conjunction with    572          

the lease-purchase agreement, the board of education may grant     573          

leases, easements, or licenses for UNDERLYING land OR FACILITIES   574          

under the board's control for a like period.  Contracts governing  575          

lease-purchase agreements authorized by this section are           576          

continuing contracts under section 5705.41 of the Revised Code     577          

                                                          14     


                                                                 
PERIODS.  PAYMENTS UNDER THE AGREEMENT MAY BE DEEMED TO BE, AND    578          

PAID AS, CURRENT OPERATING EXPENSES.                                            

      The obligations of UNDER a lease-purchase agreement entered  580          

into pursuant to this section shall not be construed as            582          

CONSIDERED TO BE net indebtedness of a school district pursuant    584          

to UNDER section 133.06 of the Revised Code.                                    

      Sec. 3313.46.  (A)  In addition to any other law governing   593          

the bidding for contracts by the board of education of any school  594          

district, when any such board determines to build, repair,         595          

enlarge, improve, or demolish any school building, the cost of     597          

which will exceed twenty-five thousand dollars, except in cases    598          

of urgent necessity, or for the security and protection of school  599          

property, and except as otherwise provided in division (D) of      600          

section 713.23 and in section 125.04 of the Revised Code, all of                

the following shall apply:                                         601          

      (1)  The board shall cause to be prepared the plans,         603          

specifications, and related information as required in divisions   604          

(A), (B), and (D) of section 153.01 of the Revised Code unless     605          

the board  determines that other information is sufficient to      606          

inform any bidders of the board's requirements.  However, if the   607          

board determines that such other information is sufficient for     608          

bidding a project, the board shall not engage in the construction  609          

of any such project involving the practice of professional                      

engineering, professional surveying, or architecture, for which    610          

plans, specifications, and estimates have not been made by, and    611          

the construction thereof inspected by, a licensed professional     612          

engineer, licensed professional surveyor, or registered            613          

architect.                                                                      

      (2)  The board shall advertise for bids once each week for   615          

a period of four AT LEAST TWO consecutive weeks in a newspaper of  617          

general circulation in the district not later than fifteen days    618          

prior to the date specified by the board for receiving bids.       620          

      (3)  Unless the board extends the time for the opening of    622          

bids they shall be opened at the time and place specified by the   623          

                                                          15     


                                                                 
board in the advertisement for the bids.                           624          

      (4)  Each bid shall contain the name of every person         626          

interested therein.  Each bid shall meet the requirements of       627          

section 153.54 of the Revised Code.                                628          

      (5)  When both labor and materials are embraced in the work  630          

bid for, the board may require that each be separately stated in   631          

the bid, with the price thereof, or may require that bids be       632          

submitted without such separation.                                 633          

      (6)  None but the lowest responsible bid shall be accepted.  635          

The board may reject all the bids, or accept any bid for both      636          

labor and material for such improvement or repair, which is the    637          

lowest in the aggregate.  In all other respects, the award of      638          

contracts for improvement or repair, but not for purchases made    639          

under section 3327.08 of the Revised Code, shall be pursuant to    640          

section 153.12 of the Revised Code.                                641          

      (7)  The contract shall be between the board and the         643          

bidders.  The board shall pay the contract price for the work      644          

pursuant to sections 153.13 and 153.14 of the Revised Code.  The   645          

board shall approve and retain the estimates referred to in        646          

section 153.13 of the Revised Code and make them available to the  647          

auditor of state upon request.                                     648          

      (8)  When two or more bids are equal, in the whole, or in    650          

any part thereof, and are lower than any others, either may be     651          

accepted, but in no case shall the work be divided between such    652          

bidders.                                                           653          

      (9)  When there is reason to believe there is collusion or   655          

combination among the bidders, or any number of them, the bids of  656          

those concerned therein shall be rejected.                         657          

      (B)  Division (A) of this section does not apply to the      659          

board of education of any school district in any of the following  660          

situations:                                                                     

      (1)  The acquisition of educational materials used in        662          

teaching.                                                                       

      (2)  If the board determines and declares by resolution      664          

                                                          16     


                                                                 
adopted by two-thirds of all its members that any item is          665          

available and can be acquired only from a single source.           666          

      (3)  If the board declares by resolution adopted by          668          

two-thirds of all its members that division (A) of this section    669          

does not apply to any installation, modification, or remodeling    670          

involved in any energy conservation measure undertaken through an  671          

installment payment contract under section 3313.372 of the         672          

Revised Code or undertaken pursuant to division (G) of section                  

133.06 of the Revised Code.                                        673          

      (4)  The acquisition of computer software for instructional  675          

purposes and computer hardware for instructional purposes          676          

pursuant to division (B)(4) of section 3313.37 of the Revised      678          

Code.                                                              679          

      (C)  No resolution adopted pursuant to division (B)(2) or    681          

(3) of this section shall have any effect on whether sections      682          

153.12 to 153.14 and 153.54 of the Revised Code apply to the       683          

board of education of any school district with regard to any       684          

item.                                                                           

      Section 2.  That existing sections 9.38, 133.06, 135.12,     686          

3313.31, 3313.37, 3313.375, and 3313.46 of the Revised Code are    688          

hereby repealed.