As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                                  S. B. No. 272  5            

      1999-2000                                                    6            


                          SENATOR CUPP                             8            


_________________________________________________________________   10           

                          A   B I L L                                           

             To amend sections 3318.021, 3318.04, and 3318.36 and  12           

                to enact sections 3318.084, 3318.311, and 3318.37  13           

                of the Revised Code to permanently set aside       14           

                school facilities assistance moneys for school     15           

                districts with exceptional needs, to phase-in an                

                increased number of school districts that          16           

                annually may participate in the School Building    17           

                Assistance Expedited Local Partnership Program,    18           

                and to make other changes to the Classroom         19           

                Facilities Assistance Program.                                  




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        21           

      Section 1.  That sections 3318.021, 3318.04, and 3318.36 be  23           

amended and sections 3318.084, 3318.311, and 3318.37 of the        24           

Revised Code be enacted to read as follows:                        25           

      Sec. 3318.021.  Notwithstanding section 3318.02 of the       34           

Revised Code, IN EACH CALENDAR YEAR PRIOR TO 2005 the Ohio school  35           

facilities commission annually may conduct on-site visits to no    37           

more than five school districts in the twentieth to fortieth       39           

percentiles, AND IN CALENDAR YEAR 2005 AND IN EACH CALENDAR YEAR   40           

THEREAFTER THE COMMISSION MAY CONDUCT ON-SITE VISITS TO SCHOOL                  

DISTRICTS IN THE TWENTIETH TO FIFTIETH PERCENTILES, as determined  41           

under section 3318.011 of the Revised Code, if a district board    44           

adopts a resolution certifying to the commission the board's                    

intent to participate in the school building assistance expedited  46           

local partnership program under section 3318.36 of the Revised     47           

Code.                                                              48           

                                                          2      


                                                                 
      Sec. 3318.04.  (A)  If the Ohio school facilities            57           

commission makes a determination under section 3318.03 of the      58           

Revised Code in favor of constructing, acquiring, reconstructing,  60           

or making additions to a classroom facility, the project shall be  61           

conditionally approved.  Such conditional approval shall be        62           

submitted to the controlling board for approval thereof.  The                   

controlling board shall forthwith approve or reject the            63           

commission's determination, conditional approval, the amount of    65           

the state's portion of the basic project cost, and, if the                      

state's portion exceeds forty million dollars, the amount of the   66           

state's portion to be encumbered in the current fiscal biennium.   67           

In the event of approval thereof by the controlling board, the     69           

commission shall certify such conditional approval to the school   70           

district board and shall encumber from the total funds             71           

appropriated for the purpose of sections 3318.01 to 3318.20 of     72           

the Revised Code the amount of the state's portion of the basic                 

project cost or, if the state's portion exceeds forty million      73           

dollars, the amount approved under this section to be encumbered   74           

in the current fiscal biennium.                                    75           

      The basic project cost for a project approved under this     78           

section shall not exceed the cost that would otherwise have to be               

incurred if the classroom facilities to be constructed, acquired,  79           

or reconstructed, or the additions to be made to classroom         80           

facilities, under such project meet, but do not exceed, the        81           

specifications for plans and materials for classroom facilities    82           

adopted by the commission.                                                      

      (B)(1)  No school district shall have a project              84           

conditionally approved pursuant to this section if the project     86           

includes the reconstruction of, or the making of additions to,     87           

any classroom facilities that were constructed, acquired,          88           

reconstructed, or added to as part of a project funded under any   89           

version of sections 3318.01 to 3318.20 of the Revised Code, and    91           

the prior project was one for which the electors of such district  92           

approved a levy within the last ten TWENTY-FIVE years pursuant to  94           

                                                          3      


                                                                 
any version of section 3318.06 of the Revised Code for purposes    95           

of qualifying for the funding of that project, UNLESS THE          96           

DISTRICT DEMONSTRATES TO THE SATISFACTION OF THE COMMISSION THAT   98           

THE DISTRICT HAS EXPERIENCED SINCE APPROVAL OF ITS PRIOR PROJECT   99           

AN EXCEPTIONAL INCREASE IN ENROLLMENT ABOVE THE DISTRICT'S DESIGN  100          

CAPACITY UNDER THAT PRIOR PROJECT AS DETERMINED BY RULE OF THE     101          

COMMISSION.                                                                     

      (2)  NOTWITHSTANDING DIVISION (B)(1) OF THIS SECTION, ANY    103          

SCHOOL DISTRICT THAT RECEIVED ASSISTANCE UNDER SECTIONS 3318.01    104          

TO 3318.20 OF THE REVISED CODE, AS THOSE SECTIONS EXISTED PRIOR    105          

TO MAY 20, 1997, MAY RECEIVE ADDITIONAL ASSISTANCE UNDER THOSE     107          

SECTIONS, AS THEY EXIST ON AND AFTER MAY 20, 1997, PRIOR TO THE    108          

EXPIRATION OF THE PERIOD OF TIME REQUIRED UNDER DIVISION (B)(1)    109          

OF THIS SECTION, IF THE PERCENTILE IN WHICH THE SCHOOL DISTRICT    110          

IS LOCATED, AS DETERMINED UNDER SECTION 3318.011 OF THE REVISED    112          

CODE, IS ELIGIBLE FOR ASSISTANCE AS PRESCRIBED IN SECTION 3318.02  114          

OF THE REVISED CODE.                                                            

      THE COMMISSION MAY PROVIDE ASSISTANCE UNDER SECTIONS         116          

3318.01 TO 3318.20 OF THE REVISED CODE PURSUANT TO THIS DIVISION   117          

TO NO MORE THAN FIVE SCHOOL DISTRICTS PER FISCAL YEAR UNTIL ALL    118          

ELIGIBLE SCHOOL DISTRICTS HAVE RECEIVED THE ADDITIONAL ASSISTANCE  119          

AUTHORIZED UNDER THIS DIVISION.  THE COMMISSION SHALL ESTABLISH    120          

APPLICATION PROCEDURES, DEADLINES, AND PRIORITIES FOR FUNDING      121          

PROJECTS UNDER THIS DIVISION.                                                   

      Sec. 3318.084.  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN  123          

CHAPTER 3318. OF THE REVISED CODE, A SCHOOL DISTRICT BOARD MAY     125          

APPLY ANY LOCAL DONATED CONTRIBUTION TOWARD THE DISTRICT'S         126          

PORTION OF THE BASIC PROJECT COST OF A PROJECT UNDER SECTIONS      127          

3318.01 TO 3318.20 OF THE REVISED CODE AND MAY USE SUCH LOCAL      128          

DONATED CONTRIBUTION TO REDUCE THE AMOUNT OF BONDS THE DISTRICT    129          

OTHERWISE MUST ISSUE IN ORDER TO RECEIVE STATE ASSISTANCE UNDER    130          

THOSE SECTIONS.                                                    131          

      AS USED IN THIS SECTION, "LOCAL DONATED CONTRIBUTION" MEANS  134          

EITHER OF THE FOLLOWING:                                                        

                                                          4      


                                                                 
      (A)  ANY MONEYS IRREVOCABLY DONATED OR GRANTED TO A SCHOOL   136          

DISTRICT BOARD BY A SOURCE OTHER THAN THE STATE WHICH THE BOARD    138          

HAS THE AUTHORITY TO APPLY TO THE SCHOOL DISTRICT'S PROJECT UNDER  139          

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE AND WHICH THE      140          

BOARD HAS PLEDGED FOR THAT PURPOSE BY RESOLUTION ADOPTED BY A                   

MAJORITY OF ITS MEMBERS;                                           141          

      (B)  ANY CASH A SCHOOL DISTRICT HAS ON HAND OR ANY           143          

IRREVOCABLE LETTER OF CREDIT ISSUED ON BEHALF OF A SCHOOL          144          

DISTRICT EITHER OF WHICH THE SCHOOL DISTRICT BOARD HAS ENCUMBERED  145          

FOR PAYMENT OF THE SCHOOL DISTRICT'S SHARE OF ITS PROJECT UNDER    146          

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE AND EITHER OF      147          

WHICH HAS BEEN APPROVED BY THE OHIO SCHOOL FACILITIES COMMISSION   148          

IN CONSULTATION WITH THE DEPARTMENT OF EDUCATION.                  149          

      Sec. 3318.311.  NO LESS THAN SIX MONTHS AFTER THE EFFECTIVE  151          

DATE OF THIS SECTION, THE OHIO SCHOOL FACILITIES COMMISSION SHALL  152          

PRESENT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE        153          

PRESIDENT OF THE SENATE, AND THE GOVERNOR A PROPOSAL FOR           154          

LEGISLATION TO PROVIDE CLASSROOM FACILITIES ASSISTANCE TO JOINT    155          

VOCATIONAL SCHOOL DISTRICTS.                                       156          

      Sec. 3318.36.  (A)  As used in this section:                 165          

      (1)  "Ohio school facilities commission," "classroom         167          

facilities," "school district," "school district board," "net      168          

bonded indebtedness," "required percentage of the basic project    169          

costs," "basic project cost," "valuation," and "percentile" have   170          

the same meanings as in section 3318.01 of the Revised Code.       171          

      (2)  "Required level of indebtedness" means five per cent    173          

of the school district's valuation for the year preceding the      174          

year in which the commission and school district enter into an     175          

agreement under division (B) of this section, plus 6[two           176          

one-hundredths of one per cent multiplied by (the percentile in    177          

which the district ranks in the fiscal year the commission and     178          

the school district enter into such agreement minus one)<7.        179          

      (B)(1)  There is hereby established the school building      181          

assistance expedited local partnership program.  Under the         182          

                                                          5      


                                                                 
program, IN CALENDAR YEARS PRIOR TO 2005 the Ohio school           184          

facilities commission may enter into an agreement AGREEMENTS with  185          

the school district board BOARDS of any school district DISTRICTS  187          

ranked in the twentieth to fortieth percentiles, AND IN YEARS      188          

2005 AND THEREAFTER THE COMMISSION MAY ENTER INTO AGREEMENTS WITH  189          

THE BOARDS OF SCHOOL DISTRICTS RANKED IN THE TWENTIETH TO                       

FIFTIETH PERCENTILES, as determined under section 3318.011 of the  192          

Revised Code in the fiscal year that the commission and school     194          

district board enter into such agreement.  Under the agreement,                 

the school district board may proceed with the new construction    195          

or major repairs of a part of the school district's classroom      197          

facilities needs, as determined under sections 3318.01 to 3318.20  198          

of the Revised Code, through the expenditure of local resources    199          

prior to the school district's eligibility for state assistance    200          

under sections 3318.01 to 3318.20 of the Revised Code and may      201          

apply that expenditure toward meeting the school district's        202          

portion of the basic project cost of the total of the school       203          

district's classroom facilities needs, as determined under         204          

sections 3318.01 to 3318.20 of the Revised Code and as             205          

recalculated under division (E) of this section, that are          206          

eligible for state assistance under sections 3318.01 to 3318.20    207          

of the Revised Code when the school district becomes eligible for  208          

such state assistance.                                                          

      (2)  The commission may enter into an agreement NEW          210          

AGREEMENTS under this section with no more than five school        212          

districts each year ACCORDING TO THE FOLLOWING SCHEDULE:           213          

      (a)  PRIOR TO CALENDAR YEAR 2001, WITH UP TO FIVE SCHOOL     215          

DISTRICTS PER CALENDAR YEAR;                                       216          

      (b)  IN CALENDAR YEAR 2001, WITH UP TO TEN SCHOOL            218          

DISTRICTS;                                                                      

      (c)  IN CALENDAR YEAR 2002, WITH UP TO FIFTEEN SCHOOL        220          

DISTRICTS;                                                                      

      (d)  IN CALENDAR YEAR 2003, WITH UP TO TWENTY SCHOOL         222          

DISTRICTS;                                                         223          

                                                          6      


                                                                 
      (e)  IN CALENDAR YEAR 2004 AND IN EACH CALENDAR YEAR         225          

THEREAFTER, WITH UP TO THIRTY SCHOOL DISTRICTS.                    226          

      (3)  To participate in the program, a school district board  228          

shall first adopt a resolution certifying to the commission the    230          

board's intent to participate in the program.                      231          

      The commission shall consider school districts for           233          

participation in the program under this section each year in the   234          

order in which they adopt the resolutions required under this      235          

section and submit them to the commission ESTABLISH APPLICATION    236          

PROCEDURES, DEADLINES, AND PRIORITIES FOR ACCEPTING APPLICATIONS   237          

UNDER THIS SECTION.                                                             

      (4)  Any project under this section shall comply with        239          

section 3318.03 of the Revised Code and with any specifications    240          

for plans and materials for classroom facilities adopted by the    241          

commission under section 3318.04 of the Revised Code.              242          

      (C)  If the commission and a school district board enter     244          

into an agreement authorized under division (B) of this section,   245          

the commission shall conduct on-site visits to the school          246          

district and shall conduct an assessment of the school district's  248          

classroom facilities needs as authorized in section 3318.021 of    249          

the Revised Code within six months of the execution of the         250          

agreement.  Based on the results of the on-site visits and         251          

assessment, the commission shall determine the basic project cost  252          

of the school district's classroom facilities needs.  The          253          

commission shall determine the school district's portion of such   254          

basic project cost, which shall be the greater of:                 255          

      (1)  The required percentage of the basic project costs,     257          

determined based on the school district's percentile ranking in    258          

the fiscal year the commission and the school district enter into  259          

the agreement under division (B) of this section;                  260          

      (2)  An amount necessary to raise the school district's net  262          

bonded indebtedness, as of the fiscal year the commission and the  263          

school district enter into the agreement under division (B) of     264          

this section, to within five thousand dollars of the required      265          

                                                          7      


                                                                 
level of indebtedness.                                                          

      (D)(1)  When the commission determines the basic project     267          

cost of the classroom facilities needs of a school district and    268          

the school district's portion of that basic project cost under     270          

division (C) of this section, the project shall be conditionally   271          

approved.  Such conditional approval shall be submitted to the     272          

controlling board for approval thereof.  The controlling board     273          

shall forthwith approve or reject the commission's determination,  274          

conditional approval, and the amount of the state's portion of     275          

the basic project cost; however, no state funds shall be           276          

encumbered under this section.  Upon approval by the controlling   277          

board, the school district board may identify a discrete part of   278          

its classroom facilities needs, which shall include only new       279          

construction of or additions or major repairs to a particular      280          

building, to address with local resources.  Upon identifying a     281          

part of the school district's basic project cost to address with   282          

local resources, the school district board may allocate any        283          

available school district moneys to pay the cost of that           284          

identified part, including the proceeds of an issuance of bonds                 

if approved by the electors of the school district.                286          

      All local resources utilized under this division shall       288          

first be deposited in the project construction account required    289          

under section 3318.08 of the Revised Code.                                      

      (2)  For a school district to qualify for participation in   291          

the program authorized under this section, the electors of the     292          

school district by a majority vote shall approve the levy of       293          

taxes outside the ten-mill limitation for a period not to exceed   294          

twenty-three years at the rate of one-half mill for each dollar    295          

of valuation to be used to pay the cost of maintaining the         296          

classroom facilities included in the basic project cost as         297          

determined by the commission.  The form of the ballot to be used   298          

to submit the question whether to approve the tax required under   299          

this division to the electors of the school district shall be the  300          

form for an additional levy of taxes prescribed in division (C)    301          

                                                          8      


                                                                 
of section 3318.06 of the Revised Code.  Proceeds of this          302          

additional levy of taxes shall be deposited into a separate fund   303          

as specified in division (B) of section 3318.05 of the Revised     304          

Code.                                                                           

      (E)  If the school district becomes eligible for state       306          

assistance under sections 3318.01 to 3318.20 of the Revised Code   308          

based on its percentile ranking as determined under division (B)   309          

of this section, the commission shall conduct a new assessment of  310          

the school district's classroom facilities needs and shall         311          

recalculate the basic project cost based on this new assessment.   312          

The basic project cost recalculated under this division shall      313          

include the amount of expenditures made by the school district     314          

board under division (D)(1) of this section.  The commission                    

shall then recalculate the school district's portion of the new    315          

basic project cost by utilizing the proportion of the original     316          

basic project cost assigned to the school district as its portion  317          

under division (C) of this section.  The commission shall deduct   318          

the expenditure of school district moneys made under division      319          

(D)(1) of this section from the school district's portion of the   320          

basic project cost as recalculated under this division.  If the    321          

amount of school district resources applied by the school          322          

district board to the school district's portion of the basic       324          

project cost under this section is less than the total amount of   325          

such portion as recalculated under this division, the school                    

district board by a majority vote of all of its members shall, if  326          

it desires to seek state assistance under sections 3318.01 to      327          

3318.20 of the Revised Code, adopt a resolution as specified in    328          

section 3318.06 of the Revised Code to submit to the electors of   329          

the school district the question of approval of a bond issue in    330          

order to pay any additional amount of school district portion      331          

required for state assistance.  The tax levy approved under        332          

division (D)(2) of this section shall satisfy the requirements to  333          

levy the one-half mill additional tax under section 3318.06 of     334          

the Revised Code.                                                               

                                                          9      


                                                                 
      If the amount of school district resources applied by the    336          

school district board to the school district's portion of the      337          

basic project cost under this section is more than the total       338          

amount of such portion as recalculated under this division, the    339          

commission may reimburse to the school district the difference     340          

between the two calculated portions, but at no time shall the      341          

commission expend any state funds on a project in an amount        342          

greater than the state's portion of the basic project cost as      343          

recalculated under this division.                                  344          

      Sec. 3318.37.  (A)  AS USED IN THIS SECTION:                 346          

      (1)  "LOW WEALTH SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT    348          

IN THE LOWEST FIFTY PER CENT OF ADJUSTED VALUATION PER PUPIL AS    349          

DETERMINED UNDER SECTION 3318.011 OF THE REVISED CODE.             350          

      (2)  A "SCHOOL DISTRICT WITH AN EXCEPTIONAL NEED FOR         352          

IMMEDIATE CLASSROOM FACILITY ASSISTANCE" MEANS A SCHOOL DISTRICT   353          

WITH AN EXCEPTIONAL NEED FOR NEW FACILITIES IN ORDER TO PROTECT    354          

THE HEALTH AND SAFETY OF ALL OR A PORTION OF ITS STUDENTS.         355          

SCHOOL DISTRICTS REASONABLY EXPECTED TO BE ELIGIBLE FOR STATE      356          

ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE                

PRIOR TO JUNE 30, 2002, SHALL NOT BE ELIGIBLE FOR ASSISTANCE       357          

UNDER THIS SECTION.                                                358          

      (B)(1)  THERE IS HEREBY ESTABLISHED THE EXCEPTIONAL NEEDS    360          

SCHOOL FACILITIES ASSISTANCE PROGRAM.  UNDER THE PROGRAM, THE      361          

OHIO SCHOOL FACILITIES COMMISSION MAY SET ASIDE FROM THE MONEYS    362          

ANNUALLY APPROPRIATED TO IT FOR CLASSROOM FACILITIES ASSISTANCE    364          

PROJECTS UP TO TWENTY-FIVE PER CENT FOR ASSISTANCE TO SCHOOL       365          

DISTRICTS WITH EXCEPTIONAL NEEDS FOR IMMEDIATE CLASSROOM FACILITY  366          

ASSISTANCE.                                                                     

      (2)(a)  AFTER CONSULTING WITH EDUCATION AND CONSTRUCTION     368          

EXPERTS, THE COMMISSION SHALL ADOPT GUIDELINES FOR IDENTIFYING     370          

SCHOOL DISTRICTS WITH AN EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM  372          

FACILITIES ASSISTANCE.                                                          

      (b)  THE GUIDELINES SHALL INCLUDE APPLICATION FORMS AND      374          

INSTRUCTIONS FOR SCHOOL DISTRICTS THAT BELIEVE THEY HAVE AN        376          

                                                          10     


                                                                 
EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM FACILITIES ASSISTANCE.    377          

      (3)  THE COMMISSION SHALL EVALUATE THE CLASSROOM             379          

FACILITIES, AND THE NEED FOR REPLACEMENT CLASSROOM FACILITIES      380          

FROM THE APPLICATIONS RECEIVED UNDER THIS SECTION.  THE            381          

COMMISSION, UTILIZING THE GUIDELINES ADOPTED UNDER DIVISION        382          

(B)(2)(a) OF THIS SECTION, SHALL PRIORITIZE THE SCHOOL DISTRICTS   385          

TO BE ASSESSED.                                                                 

      NOTWITHSTANDING SECTION 3318.02 OF THE REVISED CODE, THE     387          

COMMISSION MAY CONDUCT ON-SITE EVALUATION OF THE SCHOOL DISTRICTS  389          

PRIORITIZED UNDER THIS SECTION AND APPROVE AND AWARD FUNDS UNTIL                

SUCH TIME AS ALL FUNDS SET ASIDE UNDER DIVISION (B)(1) OF THIS     391          

SECTION HAVE BEEN ENCUMBERED UNDER SECTION 3318.04 OF THE REVISED  393          

CODE.                                                                           

      (4)  NOTWITHSTANDING DIVISION (A) OF SECTION 3318.05 OF THE  396          

REVISED CODE, THE SCHOOL DISTRICT'S PORTION OF THE BASIC PROJECT   398          

COST UNDER THIS SECTION SHALL BE THE "REQUIRED PERCENTAGE OF THE   399          

BASIC PROJECT COSTS," AS DEFINED IN DIVISION (K) OF SECTION        400          

3318.01 OF THE REVISED CODE.                                       401          

      Section 2.  That existing sections 3318.021, 3318.04, and    403          

3318.36 of the Revised Code are hereby repealed.                   404