As Passed by the House                        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-AMSTUTZ-JOLIVETTE-DISTEL-         10           

       SCHULER-VERICH-PATTON-BUCHY-O'BRIEN-HAINES-WINKLER-         11           

            HARTNETT-AUSTRIA-PETERSON-BRADING-BUEHRER              12           


_________________________________________________________________   13           

                          A   B I L L                                           

             To amend sections 9.38, 133.06, 135.12, 3313.31,      16           

                3313.37, 3313.375, and 3313.46 and to enact        17           

                section 3313.291 of the Revised Code to permit     19           

                school districts to establish petty cash accounts  20           

                to be accessed by district officials by check or   21           

                debit card, to change the time period for local    22           

                public officials to deposit public moneys, to      25           

                decrease the frequency with which subdivisions                  

                must designate their public depositories, to       26           

                permit subdivisions to change the designated                    

                depositories under certain circumstances, to       27           

                exempt school-district-issued securities from                   

                debt limits to the extent certain payments in      28           

                lieu of taxes are pledged to repaying the          29           

                securities, to require school boards to advertise  31           

                for bids for construction contracts at least two                

                consecutive weeks instead of four consecutive      33           

                weeks, to modify the terms of school district                   

                lease-purchase agreements for buildings, and to    34           

                permit joint vocational school districts to enter  35           

                into such agreements.                                           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        37           

                                                          2      


                                                                 
      Section 1.  That sections 9.38, 133.06, 135.12, 3313.31,     40           

3313.37, 3313.375, and 3313.46 be amended and section 3313.291 of  42           

the Revised Code be enacted to read as follows:                    43           

      Sec. 9.38.  As used in this section and section 9.39 of the  52           

Revised Code, "color of office," "public office," and "public      53           

official" have the same meanings as in section 117.01 of the       54           

Revised Code.                                                      55           

      A PERSON WHO IS A state officer, employee, or agent shall    57           

pay to the treasurer of state all public moneys received by him    58           

THAT PERSON as required by rule of the treasurer of state adopted  60           

pursuant to section 113.09 of the Revised Code.  A PERSON WHO IS   61           

A public official other than a state officer, employee, or agent   63           

shall deposit all public moneys received by him THAT PERSON with   64           

the treasurer of the public office or properly designated          65           

depository once every twenty-four consecutive hours ON THE         67           

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

AMOUNT OF SUCH MONEYS RECEIVED EXCEEDS ONE THOUSAND DOLLARS.  IF   69           

THE TOTAL AMOUNT OF THE PUBLIC MONEYS SO RECEIVED DOES NOT EXCEED  70           

ONE THOUSAND DOLLARS, THE PERSON SHALL DEPOSIT THE MONEYS ON THE   71           

BUSINESS DAY NEXT FOLLOWING THE DAY OF RECEIPT, UNLESS THE PUBLIC  73           

OFFICE OF WHICH THAT PERSON IS A PUBLIC OFFICIAL ADOPTS A POLICY   74           

PERMITTING A DIFFERENT TIME PERIOD, NOT TO EXCEED THREE BUSINESS                

DAYS NEXT FOLLOWING THE DAY OF RECEIPT, FOR MAKING SUCH DEPOSITS,  76           

AND THE PERSON IS ABLE TO SAFEGUARD THE MONEYS UNTIL SUCH TIME AS  78           

THE MONEYS ARE DEPOSITED.  THE POLICY SHALL INCLUDE PROVISIONS                  

AND PROCEDURES TO SAFEGUARD THE PUBLIC MONEYS UNTIL THEY ARE       80           

DEPOSITED.  IF THE PUBLIC OFFICE OF WHICH THE PERSON IS A PUBLIC   81           

OFFICIAL IS GOVERNED BY A LEGISLATIVE AUTHORITY, ONLY THE          82           

LEGISLATIVE AUTHORITY MAY ADOPT SUCH A POLICY.  If a PERSON WHO    83           

IS A public official receives public moneys for a public office    85           

of which he THAT PERSON is not a public official, he THAT PERSON   86           

shall, during the first business day of the next week, pay to the  87           

proper public official of the proper public office the moneys so   88           

received during the current week.                                  89           

                                                          3      


                                                                 
      Sec. 133.06.  (A)  A school district shall not incur,        98           

without a vote of the electors, net indebtedness that exceeds an   99           

amount equal to one-tenth of one per cent of its tax valuation,    100          

except as provided in divisions (G) and (H) of this section and    102          

in division (C) of section 3313.372 of the Revised Code.           103          

      (B)  Except as provided in divisions (E) and (F) of this     105          

section, a school district shall not incur net indebtedness that   106          

exceeds an amount equal to nine per cent of its tax valuation.     107          

      (C)  A school district shall not submit to a vote of the     109          

electors the question of the issuance of securities in an amount   110          

that will make the district's net indebtedness after the issuance  111          

of the securities exceed an amount equal to four per cent of its   112          

tax valuation, unless the superintendent of public instruction,    113          

acting under policies adopted by the state board of education,     114          

and the tax commissioner, acting under written policies of the     115          

commissioner, consent to the submission.  A request for the        116          

consents shall be made at least thirty days prior to the election  117          

at which the question is to be submitted, except that the          118          

superintendent of public instruction and the tax commissioner may  119          

waive this thirty-day deadline or grant their consents after the   120          

election if the school district shows good cause for such waiver   121          

or consent after the election.                                     122          

      (D)  In calculating the net indebtedness of a school         124          

district, none of the following shall be considered:               125          

      (1)  Securities issued to acquire school buses and other     127          

equipment used in transporting pupils or issued pursuant to        128          

division (D) of section 133.10 of the Revised Code;                129          

      (2)  Securities issued under division (F) of this section,   131          

under section 133.301 of the Revised Code, and, to the extent in   132          

excess of the limitation stated in division (B) of this section,   133          

under division (E) of this section;                                134          

      (3)  Indebtedness resulting from the dissolution of a joint  136          

vocational school district under section 3311.217 of the Revised   137          

Code, evidenced by outstanding securities of that joint            138          

                                                          4      


                                                                 
vocational school district;                                        139          

      (4)  Loans, evidenced by any securities, received under      141          

sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the        142          

Revised Code;                                                      143          

      (5)  Debt incurred under section 3313.374 of the Revised     145          

Code;                                                                           

      (6)  Debt incurred pursuant to division (B)(5) of section    148          

3313.37 of the Revised Code to acquire computers and related                    

hardware.                                                                       

      (E)  A school district may become a special needs district   150          

as to certain securities as provided in division (E) of this       151          

section.                                                           152          

      (1)  A board of education, by resolution, may declare its    154          

school district to be a special needs district by determining      155          

both of the following:                                             156          

      (a)  The student population is not being adequately          158          

serviced by the existing permanent improvements of the district.   159          

      (b)  The district cannot obtain sufficient funds by the      161          

issuance of securities within the limitation of division (B) of    162          

this section to provide additional or improved needed permanent    163          

improvements in time to meet the needs.                            164          

      (2)  The board of education shall certify a copy of that     166          

resolution to the superintendent of public instruction with a      167          

statistical report showing all of the following:                   168          

      (a)  A history of and a projection of the growth of the      170          

student population;                                                171          

      (b)  The history of and a projection of the growth of the    173          

tax valuation;                                                     174          

      (c)  The projected needs;                                    176          

      (d)  The estimated cost of permanent improvements proposed   178          

to meet such projected needs.                                      179          

      (3)  The superintendent of public instruction shall certify  181          

the district as an approved special needs district if the          182          

superintendent finds both of the following:                        183          

                                                          5      


                                                                 
      (a)  The district does not have available sufficient         185          

additional funds from state or federal sources to meet the         186          

projected needs.                                                   187          

      (b)  The projection of the potential average growth of tax   189          

valuation during the next five years, according to the             190          

information certified to the superintendent and any other          191          

information the superintendent obtains, indicates a likelihood of  192          

potential average growth of tax valuation of the district during   193          

the next five years of an average of not less than three per cent  194          

per year.  The findings and certification of the superintendent    195          

shall be conclusive.                                               196          

      (4)  An approved special needs district may incur net        198          

indebtedness by the issuance of securities in accordance with the  199          

provisions of this chapter in an amount that does not exceed an    200          

amount equal to the greater of the following:                      201          

      (a)  Nine per cent of the sum of its tax valuation plus an   203          

amount that is the product of multiplying that tax valuation by    204          

the percentage by which the tax valuation has increased over the   205          

tax valuation on the first day of the sixtieth month preceding     206          

the month in which its board determines to submit to the electors  207          

the question of issuing the proposed securities;                   208          

      (b)  Nine per cent of the sum of its tax valuation plus an   210          

amount that is the product of multiplying that tax valuation by    211          

the percentage, determined by the superintendent of public         212          

instruction, by which that tax valuation is projected to increase  213          

during the next ten years.                                         214          

      (F)  A school district may issue securities for emergency    216          

purposes, in a principal amount that does not exceed an amount     217          

equal to three per cent of its tax valuation, as provided in this  218          

division.                                                          219          

      (1)  A board of education, by resolution, may declare an     221          

emergency if it determines both of the following:                  222          

      (a)  School buildings or other necessary school facilities   224          

in the district have been wholly or partially destroyed, or        225          

                                                          6      


                                                                 
condemned by a constituted public authority, or that such          226          

buildings or facilities are partially constructed, or so           227          

constructed or planned as to require additions and improvements    228          

to them before the buildings or facilities are usable for their    229          

intended purpose, or that corrections to permanent improvements    230          

are necessary to remove or prevent health or safety hazards.       231          

      (b)  Existing fiscal and net indebtedness limitations make   233          

adequate replacement, additions, or improvements impossible.       234          

      (2)  Upon the declaration of an emergency, the board of      236          

education may, by resolution, submit to the electors of the        237          

district pursuant to section 133.18 of the Revised Code the        238          

question of issuing securities for the purpose of paying the       239          

cost, in excess of any insurance or condemnation proceeds          240          

received by the district, of permanent improvements to respond to  241          

the emergency need.                                                242          

      (3)  The procedures for the election shall be as provided    244          

in section 133.18 of the Revised Code, except that:                245          

      (a)  The form of the ballot shall describe the emergency     247          

existing, refer to this division as the authority under which the  248          

emergency is declared, and state that the amount of the proposed   249          

securities exceeds the limitations prescribed by division (B) of   250          

this section;                                                      251          

      (b)  The resolution required by division (B) of section      253          

133.18 of the Revised Code shall be certified to the county        254          

auditor and the board of elections at least seventy-five days      255          

prior to the election;                                             256          

      (c)  The county auditor shall advise and, not later than     258          

sixty-five days before the election, confirm that advice by        259          

certification to, the board of education of the information        260          

required by division (C) of section 133.18 of the Revised Code;    261          

      (d)  The board of education shall then certify its           263          

resolution and the information required by division (D) of         264          

section 133.18 of the Revised Code to the board of elections not   265          

less than sixty days prior to the election.                        266          

                                                          7      


                                                                 
      (4)  Notwithstanding division (B) of section 133.21 of the   268          

Revised Code, the first principal payment of securities issued     269          

under this division may be set at any date not later than sixty    270          

months after the earliest possible principal payment otherwise     271          

provided for in that division.                                     272          

      (G)  The board of education may contract with an architect,  274          

professional engineer, or other person experienced in the design   275          

and implementation of energy conservation measures for an          276          

analysis and recommendations pertaining to installations,          277          

modifications of installations, or remodeling that would           278          

significantly reduce energy consumption in buildings owned by the  279          

district.  The report shall include estimates of all costs of      280          

such installations, modifications, or remodeling, including costs  281          

of design, engineering, installation, maintenance, repairs, and    282          

debt service, and estimates of the amounts by which energy         283          

consumption and resultant operational and maintenance costs, as    284          

defined by the Ohio school facilities commission, would be         286          

reduced.                                                                        

      If the board finds after receiving the report that the       288          

amount of money the district would spend on such installations,    289          

modifications, or remodeling is not likely to exceed the amount    290          

of money it would save in energy and resultant operational and     291          

maintenance costs over the ensuing fifteen years, the board may    293          

submit to the commission a copy of its findings and a request for  294          

approval to incur indebtedness to finance the making or            296          

modification of installations or the remodeling of buildings for   297          

the purpose of significantly reducing energy consumption.          298          

      If the commission determines that the board's findings are   301          

reasonable, it shall approve the board's request.  Upon receipt    302          

of the commission's approval, the district may issue securities    304          

without a vote of the electors in a principal amount not to        305          

exceed nine-tenths of one per cent of its tax valuation for the    306          

purpose of making such installations, modifications, or            307          

remodeling, but the total net indebtedness of the district         308          

                                                          8      


                                                                 
without a vote of the electors incurred under this and all other   309          

sections of the Revised Code shall not exceed one per cent of the  310          

district's tax valuation.                                          311          

      So long as any securities issued under division (G) of this  314          

section remain outstanding, the board of education shall monitor                

the energy consumption and resultant operational and maintenance   315          

costs of buildings in which installations or modifications have    317          

been made or remodeling has been done pursuant to division (G) of  318          

this section and shall maintain and annually update a report       320          

documenting the reductions in energy consumption and resultant     321          

operational and maintenance cost savings attributable to such      322          

installations, modifications, or remodeling.  The report shall be  323          

certified by an architect or engineer independent of any person    324          

that provided goods or services to the board in connection with    325          

the energy conservation measures that are the subject of the       326          

report.  The resultant operational and maintenance cost savings    327          

shall be certified by the school district treasurer.  The report   328          

shall be made available to the commission upon request.            329          

      (H)  With the consent of the superintendent of public        331          

instruction, a school district may incur without a vote of the     332          

electors net indebtedness that exceeds the amounts stated in       333          

divisions (A) and (G) of this section for the purpose of paying    335          

costs of permanent improvements, if and to the extent that both    336          

of the following conditions are satisfied:                         337          

      (1)  The fiscal officer of the school district estimates     339          

that receipts of the school district from payments made under OR   340          

PURSUANT TO agreements entered into pursuant to division (F) of    343          

section 725.02, 1728.10, 3735.671, 5709.081 or section, 5709.082,  344          

5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78,    345          

OR 5709.82 of the Revised Code, or distributions under division    346          

(C) of section 5709.43 of the Revised Code, or any combination     347          

thereof, are, after accounting for any appropriate coverage        348          

requirements, sufficient in time and amount, and are committed by  349          

the proceedings, to pay the debt charges on the securities issued  350          

                                                          9      


                                                                 
to evidence that indebtedness and payable from those receipts,     351          

and the taxing authority of the district confirms the fiscal       352          

officer's estimate, which confirmation is approved by the          353          

superintendent of public instruction;                              354          

      (2)  The fiscal officer of the school district certifies,    356          

and the taxing authority of the district confirms, that the        357          

district, at the time of the certification and confirmation,       358          

reasonably expects to have sufficient revenue available for the    359          

purpose of operating such permanent improvements for their         360          

intended purpose upon acquisition or completion thereof, and the   361          

superintendent of public instruction approves the taxing           362          

authority's confirmation.                                          363          

      The maximum maturity of securities issued under division     365          

(H) of this section shall be the lesser of twenty years or the     366          

maximum maturity calculated under section 133.20 of the Revised    367          

Code.                                                              368          

      Sec. 135.12.  The state board of deposit shall meet on the   378          

third Monday of March in the odd-numbered years for the purpose    379          

of designating the public depositories of the public moneys of     380          

the state, and at such meeting or any adjourned session thereof    381          

shall designate such public depositories and award the public      382          

moneys of the state to and among the public depositories so        383          

designated for the period of two years commencing on the first     384          

Monday of April next following.                                    385          

      Each other governing board shall meet every two FIVE years   387          

on the third Monday or such regularly scheduled meeting date of    388          

the month next preceding the date of the expiration of its         389          

designation of depositories for the purpose of designating the     390          

public depositories of the public moneys of the subdivision, and   391          

at such meeting or any adjourned session thereof, shall designate  392          

such public depositories and award the public moneys of the        393          

subdivision to and among the public depositories so designated     394          

for the period of two FIVE years commencing on the date of the     395          

expiration of the next preceding designation. Such designation     397          

                                                          10     


                                                                 
and award shall be made in duplicate; one copy shall be retained   398          

by the governing board of the subdivision and one copy shall be    399          

certified to the treasurer.                                                     

      IF A GOVERNING BOARD OTHER THAN THE STATE BOARD OF DEPOSIT   401          

DETERMINES, DURING A DESIGNATION PERIOD, THAT A PUBLIC DEPOSITORY  402          

DESIGNATED UNDER THIS SECTION IS INSOLVENT OR OPERATING IN AN      403          

UNSOUND OR UNSAFE MANNER, THE GOVERNING BOARD MAY MEET AND         404          

DESIGNATE A DIFFERENT PUBLIC DEPOSITORY OF THE PUBLIC MONEYS OF    405          

THE SUBDIVISION FOR THE REMAINDER OF THE DESIGNATION PERIOD.                    

      Whenever, by amendment or enactment of any state or federal  407          

law or the amendment or adoption of any valid regulation           408          

thereunder, the terms of a designation or award, lawful at the     409          

beginning of any DESIGNATION period of designation, cease to be    410          

lawful during such period, and if such change of law or            412          

regulation requires, the DESIGNATION period of designation shall   413          

be limited so as not to extend beyond the date when such change    415          

becomes effective.  In such case, the proper governing board       416          

shall meet and designate the public depositories of the public     417          

moneys of the state or of the subdivision for the remainder of     418          

the DESIGNATION period of two years.                               419          

      Sec. 3313.291.  THE BOARD OF EDUCATION OF A SCHOOL DISTRICT  422          

MAY ADOPT A RESOLUTION ESTABLISHING A PETTY CASH ACCOUNT FROM      423          

WHICH A DESIGNATED DISTRICT OFFICIAL MAY DRAW MONEYS BY CHECK      424          

SIGNED BY THAT OFFICIAL OR BY DEBIT CARD FOR PURCHASES MADE        425          

WITHIN THE DISTRICT.  THE RESOLUTION ESTABLISHING THE ACCOUNT      426          

SHALL SPECIFY THE MAXIMUM AMOUNT OF MONEY THAT MAY BE PLACED IN    427          

THE ACCOUNT; DESIGNATE THE DISTRICT OFFICIALS WHO MAY DRAW MONEYS  428          

FROM THE ACCOUNT, OR REQUIRE THE TREASURER OF SUCH BOARD TO        429          

DESIGNATE SUCH OFFICIALS; AND SPECIFY THE REQUIREMENTS AND         430          

PROCEDURES FOR REPLENISHING THE ACCOUNT.                                        

      Sec. 3313.31.  All the duties and obligations of the county  439          

auditor, county treasurer, or other officer or person relating to  440          

the moneys of a school district shall be complied with by dealing  441          

with the treasurer of the board of education thereof.              442          

                                                          11     


                                                                 
      THE TREASURER SHALL BE THE CHIEF FISCAL OFFICER OF THE       444          

SCHOOL DISTRICT AND SHALL BE RESPONSIBLE FOR THE FINANCIAL         445          

AFFAIRS OF THE DISTRICT, SUBJECT TO THE DIRECTION OF THE DISTRICT  446          

BOARD OF EDUCATION.  EXCEPT AS OTHERWISE REQUIRED BY LAW, NO       447          

TREASURER SHALL BE REQUIRED TO VERIFY THE ACCURACY OF              448          

NONFINANCIAL INFORMATION OR DATA OF THE SCHOOL DISTRICT.           450          

      Sec. 3313.37.  (A)  The board of education of any city,      459          

local, or exempted village school district may build, enlarge,     460          

repair, and furnish the necessary schoolhouses, purchase or lease  461          

sites therefor, or rights-of-way thereto, or purchase or lease     462          

real estate to be used as playgrounds for children or rent         463          

suitable schoolrooms, either within or without the district, and   464          

provide the necessary apparatus and make all other necessary       465          

provisions for the schools under its control.  The governing       466          

board of any educational service center may build, enlarge,        468          

repair, and furnish the necessary facilities for conducting        469          

special education programs and driver education courses, purchase  470          

or lease sites therefor, or rights-of-way thereto, or purchase or  472          

lease real estate or rent suitable facilities to be used for such  473          

purposes and provide the necessary apparatus and make all other    474          

necessary provisions for such facilities as are under its          475          

control.                                                           476          

      (B)(1)  Boards of education of city, local, and exempted     478          

village SCHOOL districts may acquire land by gift or devise, by    481          

purchase, or by appropriation.  Lands purchased may be purchased   482          

for cash, by installment payments, with or without a mortgage, by  483          

entering into lease-purchase agreements, or by lease with an       484          

option to purchase, provided that if the purchase price is to be   485          

paid over a period of time, such payments shall not extend for a   486          

period of more than five years, and a.  A special tax levy shall   487          

MAY be authorized by the voters of the school district in          488          

accordance with section 5705.21 of the Revised Code to provide a   489          

special fund to meet the future time payments.                     490          

      (2)  For the purposes of section 5705.21 of the Revised      492          

                                                          12     


                                                                 
Code, acquisition of land under the provisions of this division    493          

shall be considered a necessary requirement of the school          494          

district.                                                          495          

      (3)  Boards of education of city, local, and exempted        497          

village SCHOOL districts may acquire federal land at a discount    499          

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

construction of educational facilities or for other related        500          

purposes.  External administrative and other costs pertaining to   501          

the acquisition of federal land at a discount may be paid from     502          

funds available to the school district for operating purposes.     503          

Such boards of education may also acquire federal land by          504          

lease-purchase agreements, by negotiation, or otherwise.           505          

      (4)  As used in this division:                               507          

      (a)  "Office equipment" includes but is not limited to       509          

typewriters, copying and duplicating equipment, and computer and   510          

data processing equipment.                                         511          

      (b)  "Software for instructional purposes" includes          513          

computer programs usable for computer assisted instruction,        514          

computer managed instruction, drill and practice, and problem      515          

simulations.                                                       516          

      A board of education or governing board of an  educational   518          

service center may acquire the necessary office equipment, and     520          

computer hardware and software for instructional purposes, for     521          

the schools under its control by purchase, by lease, by            522          

installment payments, by entering into lease-purchase agreements,  523          

or by lease with an option to purchase.  In the case of a city,    524          

exempted village, or local school district, if the purchase price  525          

is to be paid over a period of time, the contract setting forth    526          

the terms of such purchase shall be considered a continuing        527          

contract pursuant to section 5705.41 of the Revised Code.          528          

Payments shall not extend for a period of more than five years.    530          

Costs relating to the acquisition of necessary apparatus may be    531          

paid from funds available to the school district or educational    532          

service center for operating purposes.                                          

                                                          13     


                                                                 
      (5)  A board of education or governing board of an           534          

educational service center may acquire the necessary equipment     535          

for the maintenance or physical upkeep of facilities and land      536          

under its control by entering into lease-purchase agreements.  If  537          

payments under the lease-purchase agreement are to be made over a  538          

period of time, the agreement shall be considered a continuing     539          

contract pursuant to section 5705.41 of the Revised Code, and      540          

such payments shall not extend for a period of more than five      541          

years.                                                                          

      Sec. 3313.375.  The board of education of a city, local, or  550          

exempted village, OR JOINT VOCATIONAL school district may enter    551          

into a lease-purchase agreement providing for the construction,;   553          

ENLARGING OR OTHER IMPROVEMENT, FURNISHING, AND EQUIPPING;         555          

lease,; and eventual acquisition of a building for any school      556          

district purpose.  The agreement shall provide for a lease for a   557          

term of SERIES OF ONE-YEAR RENEWABLE LEASE TERMS TOTALING not      558          

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

end of the SERIES OF lease TERMS PROVIDED FOR IN THE AGREEMENT     559          

the title to the buildings, together with the land on which the    561          

building is situated, LEASED PROPERTY shall be vested in the                    

school district, IF ALL OBLIGATIONS OF THE SCHOOL DISTRICT         562          

PROVIDED FOR IN THE AGREEMENT HAVE BEEN SATISFIED.  The agreement  564          

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

district under the lease, require the school district to pay the   566          

lessor a lump-sum amount at the end of the lease as a condition    567          

of obtaining title to the building and land.  The agreement shall  568          

permit a school district to cancel the lease and cease making      570          

rental payments without penalty or additional cost if the          571          

district notifies the lessor of its intention to cancel the lease  572          

not more than one year prior to the date upon which such           573          

cancellation takes effect LEASED PROPERTY.  In conjunction with    574          

the lease-purchase agreement, the board of education may grant     575          

leases, easements, or licenses for UNDERLYING land OR FACILITIES   576          

under the board's control for a like period.  Contracts governing  577          

                                                          14     


                                                                 
lease-purchase agreements authorized by this section are           578          

continuing contracts under section 5705.41 of the Revised Code     579          

PERIODS.  PAYMENTS UNDER THE AGREEMENT MAY BE DEEMED TO BE, AND    580          

PAID AS, CURRENT OPERATING EXPENSES.                                            

      The obligations of UNDER a lease-purchase agreement entered  582          

into pursuant to this section shall not be construed as            584          

CONSIDERED TO BE net indebtedness of a school district pursuant    586          

to UNDER section 133.06 of the Revised Code.                                    

      Sec. 3313.46.  (A)  In addition to any other law governing   595          

the bidding for contracts by the board of education of any school  596          

district, when any such board determines to build, repair,         597          

enlarge, improve, or demolish any school building, the cost of     599          

which will exceed twenty-five thousand dollars, except in cases    600          

of urgent necessity, or for the security and protection of school  601          

property, and except as otherwise provided in division (D) of      602          

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

the following shall apply:                                         603          

      (1)  The board shall cause to be prepared the plans,         605          

specifications, and related information as required in divisions   606          

(A), (B), and (D) of section 153.01 of the Revised Code unless     607          

the board  determines that other information is sufficient to      608          

inform any bidders of the board's requirements.  However, if the   609          

board determines that such other information is sufficient for     610          

bidding a project, the board shall not engage in the construction  611          

of any such project involving the practice of professional                      

engineering, professional surveying, or architecture, for which    612          

plans, specifications, and estimates have not been made by, and    613          

the construction thereof inspected by, a licensed professional     614          

engineer, licensed professional surveyor, or registered            615          

architect.                                                                      

      (2)  The board shall advertise for bids once each week for   617          

a period of four AT LEAST TWO consecutive weeks in a newspaper of  619          

general circulation in the district not later than fifteen days    620          

prior to the date specified by the board for receiving bids.       622          

                                                          15     


                                                                 
      (3)  Unless the board extends the time for the opening of    624          

bids they shall be opened at the time and place specified by the   625          

board in the advertisement for the bids.                           626          

      (4)  Each bid shall contain the name of every person         628          

interested therein.  Each bid shall meet the requirements of       629          

section 153.54 of the Revised Code.                                630          

      (5)  When both labor and materials are embraced in the work  632          

bid for, the board may require that each be separately stated in   633          

the bid, with the price thereof, or may require that bids be       634          

submitted without such separation.                                 635          

      (6)  None but the lowest responsible bid shall be accepted.  637          

The board may reject all the bids, or accept any bid for both      638          

labor and material for such improvement or repair, which is the    639          

lowest in the aggregate.  In all other respects, the award of      640          

contracts for improvement or repair, but not for purchases made    641          

under section 3327.08 of the Revised Code, shall be pursuant to    642          

section 153.12 of the Revised Code.                                643          

      (7)  The contract shall be between the board and the         645          

bidders.  The board shall pay the contract price for the work      646          

pursuant to sections 153.13 and 153.14 of the Revised Code.  The   647          

board shall approve and retain the estimates referred to in        648          

section 153.13 of the Revised Code and make them available to the  649          

auditor of state upon request.                                     650          

      (8)  When two or more bids are equal, in the whole, or in    652          

any part thereof, and are lower than any others, either may be     653          

accepted, but in no case shall the work be divided between such    654          

bidders.                                                           655          

      (9)  When there is reason to believe there is collusion or   657          

combination among the bidders, or any number of them, the bids of  658          

those concerned therein shall be rejected.                         659          

      (B)  Division (A) of this section does not apply to the      661          

board of education of any school district in any of the following  662          

situations:                                                                     

      (1)  The acquisition of educational materials used in        664          

                                                          16     


                                                                 
teaching.                                                                       

      (2)  If the board determines and declares by resolution      666          

adopted by two-thirds of all its members that any item is          667          

available and can be acquired only from a single source.           668          

      (3)  If the board declares by resolution adopted by          670          

two-thirds of all its members that division (A) of this section    671          

does not apply to any installation, modification, or remodeling    672          

involved in any energy conservation measure undertaken through an  673          

installment payment contract under section 3313.372 of the         674          

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

133.06 of the Revised Code.                                        675          

      (4)  The acquisition of computer software for instructional  677          

purposes and computer hardware for instructional purposes          678          

pursuant to division (B)(4) of section 3313.37 of the Revised      680          

Code.                                                              681          

      (C)  No resolution adopted pursuant to division (B)(2) or    683          

(3) of this section shall have any effect on whether sections      684          

153.12 to 153.14 and 153.54 of the Revised Code apply to the       685          

board of education of any school district with regard to any       686          

item.                                                                           

      Section 2.  That existing sections 9.38, 133.06, 135.12,     688          

3313.31, 3313.37, 3313.375, and 3313.46 of the Revised Code are    690          

hereby repealed.