As Reported by the Senate Education Committee*            1            

123rd General Assembly                                             4            

   Regular Session                             Sub. S. B. No. 272  5            

      1999-2000                                                    6            


                  SENATORS CUPP-KEARNS-PRENTISS                    8            


_________________________________________________________________   9            

                          A   B I L L                                           

             To amend sections 133.06, 135.143, 3318.01,           11           

                3318.011, 3318.021, 3318.03, 3318.032, 3318.04,    13           

                3318.05, 3318.06, 3318.08, 3318.11, 3318.13,       15           

                3318.14, 3318.15, 3318.31, and 3318.36; to enact                

                sections 3318.022, 3318.033, 3318.035, 3318.052,   16           

                3318.061, 3318.084, 3318.085, 3318.311, 3318.351,  17           

                3318.361, 3318.362, 3318.37, and 3318.38; to       18           

                repeal section 3318.18 of the Revised Code; and    20           

                to amend Sections 10 and 10.02 of Am. Sub. H.B.                 

                282 of the 123rd General Assembly to permit any    23           

                school district to participate in the School       24           

                Building Assistance Expedited Local Partnership                 

                Program, to codify the program to set aside        25           

                classroom facilities assistance moneys for low     26           

                wealth school districts with exceptional needs,                 

                to require the Ohio School Facilities Commission   27           

                to propose a program to provide classroom                       

                facilities assistance moneys to joint vocational   29           

                school districts, to establish a program to        30           

                provide classroom facilities assistance moneys to               

                school districts that have suffered natural        31           

                disasters, to authorize accelerated service under  32           

                the Classroom Facilities Assistance Program to     33           

                big-eight school districts, to authorize                        

                alternative methods for school districts to        34           

                generate their respective shares of projects       35           

                under the Classroom Facilities Assistance          36           

                Program, to permit the Treasurer of State to       38           

                                                          2      


                                                                 
                enter into an agreement with two or more school                 

                districts to pool the bonds issued by those        39           

                school districts to pay their portion of projects               

                under state classroom facilities assistance        40           

                programs, to make other changes to the Classroom   41           

                Facilities Assistance Program, and to make an      42           

                appropriation.                                                  




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        44           

      Section 1.  That sections 133.06, 135.143, 3318.01,          46           

3318.011, 3318.021, 3318.03, 3318.032, 3318.04, 3318.05, 3318.06,  49           

3318.08, 3318.11, 3318.13, 3318.14, 3318.15, 3318.31, and 3318.36  50           

be amended and sections 3318.022, 3318.033, 3318.035, 3318.052,    52           

3318.061, 3318.084, 3318.085, 3318.311, 3318.351, 3318.361,                     

3318.362, 3318.37, and 3318.38 of the Revised Code be enacted to   55           

read as follows:                                                   56           

      Sec. 133.06.  (A)  A school district shall not incur,        65           

without a vote of the electors, net indebtedness that exceeds an   66           

amount equal to one-tenth of one per cent of its tax valuation,    67           

except as provided in divisions (G) and (H) of this section and    69           

in division (C) of section 3313.372 of the Revised Code, OR AS     70           

PRESCRIBED IN SECTION 3318.052 OF THE REVISED CODE.                71           

      (B)  Except as provided in divisions (E) and (F) of this     73           

section, a school district shall not incur net indebtedness that   74           

exceeds an amount equal to nine per cent of its tax valuation.     75           

      (C)  A school district shall not submit to a vote of the     77           

electors the question of the issuance of securities in an amount   78           

that will make the district's net indebtedness after the issuance  79           

of the securities exceed an amount equal to four per cent of its   80           

tax valuation, unless the superintendent of public instruction,    81           

acting under policies adopted by the state board of education,     82           

and the tax commissioner, acting under written policies of the     83           

commissioner, consent to the submission.  A request for the        84           

                                                          3      


                                                                 
consents shall be made at least thirty days prior to the election  85           

at which the question is to be submitted, except that the          86           

superintendent of public instruction and the tax commissioner may  87           

waive this thirty-day deadline or grant their consents after the   88           

election if the school district shows good cause for such waiver   89           

or consent after the election.                                     90           

      (D)  In calculating the net indebtedness of a school         92           

district, none of the following shall be considered:               93           

      (1)  Securities issued to acquire school buses and other     95           

equipment used in transporting pupils or issued pursuant to        96           

division (D) of section 133.10 of the Revised Code;                97           

      (2)  Securities issued under division (F) of this section,   99           

under section 133.301 of the Revised Code, and, to the extent in   100          

excess of the limitation stated in division (B) of this section,   101          

under division (E) of this section;                                102          

      (3)  Indebtedness resulting from the dissolution of a joint  104          

vocational school district under section 3311.217 of the Revised   105          

Code, evidenced by outstanding securities of that joint            106          

vocational school district;                                        107          

      (4)  Loans, evidenced by any securities, received under      109          

sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the        110          

Revised Code;                                                      111          

      (5)  Debt incurred under section 3313.374 of the Revised     113          

Code;                                                                           

      (6)  Debt incurred pursuant to division (B)(5) of section    116          

3313.37 of the Revised Code to acquire computers and related                    

hardware.                                                                       

      (E)  A school district may become a special needs district   118          

as to certain securities as provided in division (E) of this       119          

section.                                                           120          

      (1)  A board of education, by resolution, may declare its    122          

school district to be a special needs district by determining      123          

both of the following:                                             124          

      (a)  The student population is not being adequately          126          

                                                          4      


                                                                 
serviced by the existing permanent improvements of the district.   127          

      (b)  The district cannot obtain sufficient funds by the      129          

issuance of securities within the limitation of division (B) of    130          

this section to provide additional or improved needed permanent    131          

improvements in time to meet the needs.                            132          

      (2)  The board of education shall certify a copy of that     134          

resolution to the superintendent of public instruction with a      135          

statistical report showing all of the following:                   136          

      (a)  A history of and a projection of the growth of the      138          

student population;                                                139          

      (b)  The history of and a projection of the growth of the    141          

tax valuation;                                                     142          

      (c)  The projected needs;                                    144          

      (d)  The estimated cost of permanent improvements proposed   146          

to meet such projected needs.                                      147          

      (3)  The superintendent of public instruction shall certify  149          

the district as an approved special needs district if the          150          

superintendent finds both of the following:                        151          

      (a)  The district does not have available sufficient         153          

additional funds from state or federal sources to meet the         154          

projected needs.                                                   155          

      (b)  The projection of the potential average growth of tax   157          

valuation during the next five years, according to the             158          

information certified to the superintendent and any other          159          

information the superintendent obtains, indicates a likelihood of  160          

potential average growth of tax valuation of the district during   161          

the next five years of an average of not less than three per cent  162          

per year.  The findings and certification of the superintendent    163          

shall be conclusive.                                               164          

      (4)  An approved special needs district may incur net        166          

indebtedness by the issuance of securities in accordance with the  167          

provisions of this chapter in an amount that does not exceed an    168          

amount equal to the greater of the following:                      169          

      (a)  Nine per cent of the sum of its tax valuation plus an   171          

                                                          5      


                                                                 
amount that is the product of multiplying that tax valuation by    172          

the percentage by which the tax valuation has increased over the   173          

tax valuation on the first day of the sixtieth month preceding     174          

the month in which its board determines to submit to the electors  175          

the question of issuing the proposed securities;                   176          

      (b)  Nine per cent of the sum of its tax valuation plus an   178          

amount that is the product of multiplying that tax valuation by    179          

the percentage, determined by the superintendent of public         180          

instruction, by which that tax valuation is projected to increase  181          

during the next ten years.                                         182          

      (F)  A school district may issue securities for emergency    184          

purposes, in a principal amount that does not exceed an amount     185          

equal to three per cent of its tax valuation, as provided in this  186          

division.                                                          187          

      (1)  A board of education, by resolution, may declare an     189          

emergency if it determines both of the following:                  190          

      (a)  School buildings or other necessary school facilities   192          

in the district have been wholly or partially destroyed, or        193          

condemned by a constituted public authority, or that such          194          

buildings or facilities are partially constructed, or so           195          

constructed or planned as to require additions and improvements    196          

to them before the buildings or facilities are usable for their    197          

intended purpose, or that corrections to permanent improvements    198          

are necessary to remove or prevent health or safety hazards.       199          

      (b)  Existing fiscal and net indebtedness limitations make   201          

adequate replacement, additions, or improvements impossible.       202          

      (2)  Upon the declaration of an emergency, the board of      204          

education may, by resolution, submit to the electors of the        205          

district pursuant to section 133.18 of the Revised Code the        206          

question of issuing securities for the purpose of paying the       207          

cost, in excess of any insurance or condemnation proceeds          208          

received by the district, of permanent improvements to respond to  209          

the emergency need.                                                210          

      (3)  The procedures for the election shall be as provided    212          

                                                          6      


                                                                 
in section 133.18 of the Revised Code, except that:                213          

      (a)  The form of the ballot shall describe the emergency     215          

existing, refer to this division as the authority under which the  216          

emergency is declared, and state that the amount of the proposed   217          

securities exceeds the limitations prescribed by division (B) of   218          

this section;                                                      219          

      (b)  The resolution required by division (B) of section      221          

133.18 of the Revised Code shall be certified to the county        222          

auditor and the board of elections at least seventy-five days      223          

prior to the election;                                             224          

      (c)  The county auditor shall advise and, not later than     226          

sixty-five days before the election, confirm that advice by        227          

certification to, the board of education of the information        228          

required by division (C) of section 133.18 of the Revised Code;    229          

      (d)  The board of education shall then certify its           231          

resolution and the information required by division (D) of         232          

section 133.18 of the Revised Code to the board of elections not   233          

less than sixty days prior to the election.                        234          

      (4)  Notwithstanding division (B) of section 133.21 of the   236          

Revised Code, the first principal payment of securities issued     237          

under this division may be set at any date not later than sixty    238          

months after the earliest possible principal payment otherwise     239          

provided for in that division.                                     240          

      (G)  The board of education may contract with an architect,  242          

professional engineer, or other person experienced in the design   243          

and implementation of energy conservation measures for an          244          

analysis and recommendations pertaining to installations,          245          

modifications of installations, or remodeling that would           246          

significantly reduce energy consumption in buildings owned by the  247          

district.  The report shall include estimates of all costs of      248          

such installations, modifications, or remodeling, including costs  249          

of design, engineering, installation, maintenance, repairs, and    250          

debt service, and estimates of the amounts by which energy         251          

consumption and resultant operational and maintenance costs, as    252          

                                                          7      


                                                                 
defined by the Ohio school facilities commission, would be         254          

reduced.                                                                        

      If the board finds after receiving the report that the       256          

amount of money the district would spend on such installations,    257          

modifications, or remodeling is not likely to exceed the amount    258          

of money it would save in energy and resultant operational and     259          

maintenance costs over the ensuing fifteen years, the board may    261          

submit to the commission a copy of its findings and a request for  262          

approval to incur indebtedness to finance the making or            264          

modification of installations or the remodeling of buildings for   265          

the purpose of significantly reducing energy consumption.          266          

      If the commission determines that the board's findings are   269          

reasonable, it shall approve the board's request.  Upon receipt    270          

of the commission's approval, the district may issue securities    272          

without a vote of the electors in a principal amount not to        273          

exceed nine-tenths of one per cent of its tax valuation for the    274          

purpose of making such installations, modifications, or            275          

remodeling, but the total net indebtedness of the district         276          

without a vote of the electors incurred under this and all other   277          

sections of the Revised Code shall not exceed one per cent of the  278          

district's tax valuation.                                          279          

      So long as any securities issued under division (G) of this  282          

section remain outstanding, the board of education shall monitor                

the energy consumption and resultant operational and maintenance   283          

costs of buildings in which installations or modifications have    285          

been made or remodeling has been done pursuant to division (G) of  286          

this section and shall maintain and annually update a report       288          

documenting the reductions in energy consumption and resultant     289          

operational and maintenance cost savings attributable to such      290          

installations, modifications, or remodeling.  The report shall be  291          

certified by an architect or engineer independent of any person    292          

that provided goods or services to the board in connection with    293          

the energy conservation measures that are the subject of the       294          

report.  The resultant operational and maintenance cost savings    295          

                                                          8      


                                                                 
shall be certified by the school district treasurer.  The report   296          

shall be made available to the commission upon request.            297          

      (H)  With the consent of the superintendent of public        299          

instruction, a school district may incur without a vote of the     300          

electors net indebtedness that exceeds the amounts stated in       301          

divisions (A) and (G) of this section for the purpose of paying    303          

costs of permanent improvements, if and to the extent that both    304          

of the following conditions are satisfied:                         305          

      (1)  The fiscal officer of the school district estimates     307          

that receipts of the school district from payments made under or   308          

pursuant to agreements entered into pursuant to section 725.02,    311          

1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62,  312          

5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised     314          

Code, or distributions under division (C) of section 5709.43 of    315          

the Revised Code, or any combination thereof, are, after           316          

accounting for any appropriate coverage requirements, sufficient   317          

in time and amount, and are committed by the proceedings, to pay   318          

the debt charges on the securities issued to evidence that         319          

indebtedness and payable from those receipts, and the taxing       320          

authority of the district confirms the fiscal officer's estimate,  321          

which confirmation is approved by the superintendent of public     322          

instruction;                                                                    

      (2)  The fiscal officer of the school district certifies,    324          

and the taxing authority of the district confirms, that the        325          

district, at the time of the certification and confirmation,       326          

reasonably expects to have sufficient revenue available for the    327          

purpose of operating such permanent improvements for their         328          

intended purpose upon acquisition or completion thereof, and the   329          

superintendent of public instruction approves the taxing           330          

authority's confirmation.                                          331          

      The maximum maturity of securities issued under division     333          

(H) of this section shall be the lesser of twenty years or the     334          

maximum maturity calculated under section 133.20 of the Revised    335          

Code.                                                              336          

                                                          9      


                                                                 
      Sec. 135.143.  (A)  The treasurer of state may invest or     345          

execute transactions for any part or all of the interim funds of   346          

the state in the following classifications of obligations:         347          

      (1)  United States treasury bills, notes, bonds, or any      349          

other obligations or securities issued by the United States        350          

treasury or any other obligation guaranteed as to principal and    351          

interest by the United States;                                     352          

      (2)  Bonds, notes, debentures, or any other obligations or   354          

securities issued by any federal government agency or              355          

instrumentality;                                                   356          

      (3)  Bonds and other obligations of the sinking fund of the  358          

state of Ohio and the Ohio public facilities commission;           359          

      (4)(a)  Written repurchase agreements with any eligible      361          

Ohio financial institution that is a member of the federal         362          

reserve system or federal home loan bank or any recognized United  363          

States government securities dealer, under the terms of which      364          

agreement the treasurer of state purchases and the eligible        365          

financial institution or dealer agrees unconditionally to          366          

repurchase any of the securities that are listed in division       367          

(A)(1) or (2) of this section and that will mature or are          368          

redeemable within ten years from the date of purchase.  The        369          

market value of securities subject to these transactions must      370          

exceed the principal value of the repurchase agreement by an       371          

amount specified by the treasurer of state, and the securities     372          

must be delivered into the custody of the treasurer of state or    373          

the qualified trustee or agent designated by the treasurer of      374          

state.  The agreement shall contain the requirement that for each  375          

transaction pursuant to the agreement, the participating           376          

institution or dealer shall provide all of the following           377          

information:                                                       378          

      (i)  The par value of the securities;                        380          

      (ii)  The type, rate, and maturity date of the securities;   382          

      (iii)  A numerical identifier generally accepted in the      384          

securities industry that designates the securities.                385          

                                                          10     


                                                                 
      (b)  The treasurer of state also may sell any securities,    387          

listed in division (A)(1) or (2) of this section, regardless of    388          

maturity or time of redemption of the securities, under the same   389          

terms and conditions for repurchase, provided that the securities  390          

have been fully paid for and are owned by the treasurer of state   391          

at the time of the sale.                                           392          

      (5)  Securities lending agreements with any eligible         394          

financial institution that is a member of the federal reserve      395          

system or federal home loan bank or any recognized United States   396          

government securities dealer, under the terms of which agreement   397          

the treasurer of state lends securities and the eligible           398          

financial institution or dealer agrees to simultaneously exchange  399          

similar securities or cash, equal value for equal value.           400          

      Securities and cash received as collateral for a securities  402          

lending agreement are not interim funds of the state.  The         403          

investment of cash collateral received pursuant to a securities    404          

lending agreement may be invested only in such instruments         405          

specified by the treasurer of state in accordance with a written   406          

investment policy.                                                              

      (6)  Various forms of commercial paper issued by any         408          

corporation that is incorporated under the laws of the United      409          

States or a state, which such notes are rated in the two highest   410          

categories by two nationally recognized rating agencies, provided  411          

that the total amount invested in commercial paper at any time     412          

shall not exceed five per cent of the state's total average        413          

portfolio, as determined and calculated by the treasurer of        414          

state;                                                             415          

      (7)  Bankers acceptances, maturing in two hundred seventy    417          

days or less, which are eligible for purchase by the federal       418          

reserve system, provided that the total amount invested in         419          

bankers acceptances at any time shall not exceed ten per cent of   420          

the state's total average portfolio, as determined and calculated  421          

by the treasurer of state;                                         422          

      (8)  Certificates of deposit in eligible institutions        424          

                                                          11     


                                                                 
applying for interim moneys as provided in section 135.08 of the   425          

Revised Code, including linked deposits as provided in sections    426          

135.61 to 135.67 of the Revised Code, agricultural linked          427          

deposits as provided in sections 135.71 to 135.76 of the Revised   428          

Code, and depressed economic area linked deposits as provided in   429          

sections 135.81 to 135.88 of the Revised Code;                     430          

      (9)  The state treasurer's investment pool authorized under  432          

section 135.45 of the Revised Code;                                433          

      (10)  Debt interests rated investment grade by a nationally  435          

recognized rating agency and issued by corporations that are       436          

incorporated under the laws of the United States or a state, or    437          

issued by foreign nations diplomatically recognized by the United  438          

States government, or any instrument based on, derived from, or    439          

related to such interests.  All interest and principal shall be    440          

denominated and payable in United States funds.  The investments   441          

made under division (A)(10) of this section shall not exceed in    442          

the aggregate five per cent of the state's total average           443          

portfolio, as determined and calculated by the treasurer of        444          

state.  The investments made under division (A)(10) of this        445          

section in debt interests issued by foreign nations shall not      446          

exceed in the aggregate one per cent of the state's total average  447          

portfolio.  The investments made under division (A)(10) of this    448          

section in the debt interests of a single issuer shall not exceed  449          

in the aggregate one-half of one per cent of the state's total     450          

average portfolio.                                                 451          

      The treasurer of state shall invest under division (A)(10)   453          

of this section in a debt interest issued by a foreign nation      454          

only if the debt interest is backed by the full faith and credit   455          

of that foreign nation.  For purposes of division (A)(10) of this  456          

section, a debt interest is rated investment grade by a            457          

nationally recognized rating agency if either the debt interest    458          

itself or the issuer of the debt interest is rated, or is          459          

implicitly rated, investment grade by a nationally recognized      460          

rating agency.                                                     461          

                                                          12     


                                                                 
      (11)  No-load money market mutual funds consisting           463          

exclusively of obligations described in division (A)(1) or (2) of  464          

this section and repurchase agreements secured by such             465          

obligations.;                                                      466          

      (12)  Obligations of a board of education issued under       468          

authority of section 133.10 or 133.301 of the Revised Code;        469          

      (13)  POOLS OF SCHOOL DISTRICT BONDS AUTHORIZED UNDER        471          

SECTION 3318.085 OF THE REVISED CODE.                              472          

      (B)  Whenever, during a period of designation, the           474          

treasurer of state classifies public moneys as interim moneys,     475          

the treasurer of state shall notify the state board of deposit of  476          

such action.  Such notification shall be given within thirty days  477          

after such classification and in the event the state board of      478          

deposit does not concur in such classification or in the           479          

investments or deposits made under this section, the board may     480          

order the treasurer of state to sell or liquidate any of such      481          

investments or deposits, and any such order shall specifically     482          

describe the investments or deposits and fix the date upon which   483          

they are to be sold or liquidated.  Investments or deposits so     484          

ordered to be sold or liquidated shall be sold or liquidated for   485          

cash by the treasurer of state on the date fixed in such order at  486          

the then current market price.  Neither the treasurer of state     487          

nor the members of the state board of deposit shall be held        488          

accountable for any loss occasioned by sales or liquidations of    489          

investments or deposits at prices lower than their cost.  Any      490          

loss or expense incurred in making such sales or liquidations is   491          

payable as other expenses of the treasurer's office.               492          

      (C)  If any securities or obligations invested in by the     494          

treasurer of state pursuant to this section are registrable        495          

either as to principal or interest, or both, such securities or    496          

obligations shall be registered in the name of the treasurer of    497          

state.                                                             498          

      (D)  The treasurer of state is responsible for the           500          

safekeeping of all securities or obligations under this section.   501          

                                                          13     


                                                                 
Any such securities or obligations may be deposited for            502          

safekeeping as provided in section 113.05 of the Revised Code.     503          

      (E)  Interest earned on any investments or deposits          505          

authorized by this section shall be collected by the treasurer of  506          

state and credited by the treasurer of state to the proper fund    507          

of the state.                                                      508          

      (F)  Whenever investments or deposits acquired under this    510          

section mature and become due and payable, the treasurer of state  511          

shall present them for payment according to their tenor, and       512          

shall collect the moneys payable thereon.  The moneys so           513          

collected shall be treated as public moneys subject to sections    514          

135.01 to 135.21 of the Revised Code.                              515          

      (G)  The treasurer of state and any board of education       517          

issuing obligations referred to in division (A)(12) of this        518          

section OR POOLS OF BONDS REFERRED TO IN DIVISION (A)(13) OF THIS  519          

SECTION may enter into an agreement providing for:                 520          

      (1)  The purchase of those obligations, INCLUDING POOLS OF   522          

BONDS, by the treasurer of state on terms and subject to           524          

conditions set forth in the agreement;                                          

      (2)  The payment by the board of education to the treasurer  526          

of state of a reasonable fee as consideration for the agreement    528          

of the treasurer of state to purchase those obligations;           529          

provided, however, that the treasurer of state shall not be                     

authorized to enter into any such agreement with the board of      530          

education of a school district that has an outstanding obligation  531          

with respect to a loan received under authority of section         532          

3313.483 of the Revised Code.                                                   

      (H)  For purposes of division (G) of this section, a fee     535          

shall not be considered reasonable unless it is set to recover     536          

only the direct costs and a reasonable estimate of the indirect    537          

costs associated with the purchasing of obligations of a school    538          

board under division (G) of this section and any reselling of the  539          

obligations or any interest in the obligations, including          540          

interests in a fund comprised of the obligations.  No money from   541          

                                                          14     


                                                                 
the general revenue fund shall be used to subsidize the purchase   542          

or resale of these obligations.                                    543          

      (I)  All money collected by the treasurer of state from the  546          

fee imposed by division (G) of this section shall be deposited to  548          

the credit of the state school board obligations fund, which is    549          

hereby created in the state treasury.  Money credited to the fund  550          

shall be used solely to pay the treasurer of state's direct and    551          

indirect costs associated with purchasing and reselling            552          

obligations of a board of education under division (G) of this     553          

section.                                                                        

      Sec. 3318.01.  As used in sections 3318.01 to 3318.20 of     562          

the Revised Code:                                                  563          

      (A)  "Ohio school facilities commission" means the           566          

commission created pursuant to section 3318.30 of the Revised      567          

Code.                                                                           

      (B)  "Classroom facilities" means rooms in which pupils      569          

regularly assemble in public school buildings to receive           570          

instruction and education and such facilities and building         571          

improvements for the operation and use of such rooms as may be     572          

needed in order to provide a complete educational program, and     573          

may include space within which a child day-care facility or a      574          

community resource center is housed.  "CLASSROOM FACILITIES"       575          

INCLUDES ANY SPACE NECESSARY FOR THE OPERATION OF A VOCATIONAL     576          

EDUCATION PROGRAM IN ANY SCHOOL DISTRICT THAT OPERATES SUCH A      577          

PROGRAM.                                                           578          

      (C)  "Project" means a project to construct or acquire       580          

classroom facilities, or to reconstruct or make additions to       582          

existing classroom facilities, to be used for housing the          583          

applicable school district and its functions.                                   

      (D)  "School district" means a local, exempted village, or   585          

city school district as such districts are defined in Chapter      586          

3311. of the Revised Code, acting as an agency of state            587          

government, performing essential governmental functions of state   588          

government pursuant to sections 3318.01 and 3318.20 of the         589          

                                                          15     


                                                                 
Revised Code.                                                                   

      (E)  "School district board" means the board of education    591          

of a school district.                                              592          

      (F)  "Net bonded indebtedness" means the difference between  594          

the sum of the par value of all outstanding and unpaid bonds and   595          

notes which a school district board is obligated to pay, any       597          

amounts the school district is obligated to pay under              598          

lease-purchase agreements entered into under section 3313.375 of   599          

the Revised Code, and the par value of bonds authorized by the     600          

electors but not yet issued, the proceeds of which can lawfully    601          

be used for the project, and the amount held in the sinking fund   602          

and other indebtedness retirement funds for their redemption.      603          

Notes issued for school buses in accordance with section 3327.08   604          

of the Revised Code, notes issued in anticipation of the           605          

collection of current revenues, and bonds issued to pay final      606          

judgments shall not be considered in calculating the net bonded    607          

indebtedness.                                                                   

      "Net bonded indebtedness" does not include indebtedness      609          

arising from the acquisition of land to provide a site for         610          

classroom facilities constructed, acquired, or added to pursuant   611          

to sections 3318.01 to 3318.20 of the Revised Code.                612          

      (G)  "Board of elections" means the board of elections of    614          

the county containing the most populous portion of the school      615          

district.                                                          616          

      (H)  "County auditor" means the auditor of the county in     618          

which the greatest value of taxable property of such school        619          

district is located.                                               620          

      (I)  "Tax duplicates" means the general tax lists and        622          

duplicates prescribed by sections 319.28 and 319.29 of the         623          

Revised Code.                                                      624          

      (J)  "Required level of indebtedness" means:                 626          

      (1)  In the case of districts in the first percentile, five  629          

per cent of the district's valuation for the year preceding the    630          

year in which the controlling board approved the project under     631          

                                                          16     


                                                                 
section 3318.04 of the Revised Code.                                            

      (2)  In the case of districts ranked in a subsequent         633          

percentile, five per cent of the district's valuation for the      634          

year preceding the year in which the controlling board approved    635          

the project under section 3318.04 of the Revised Code, plus 6[two  636          

one-hundredths of one per cent multiplied by (the percentile in    637          

which the district ranks minus one)7<.                             638          

      (K)  "Required percentage of the basic project costs" means  640          

one per cent of the basic project costs times the percentile in    642          

which the district ranks.                                                       

      (L)  "Basic project cost" means a cost amount determined in  644          

accordance with rules adopted under section 111.15 of the Revised  645          

Code by the Ohio school facilities commission.  The basic project  648          

cost calculation shall take into consideration the square footage               

and cost per square foot necessary for the grade levels to be      649          

housed in the classroom facilities, the variation across the       650          

state in construction and related costs, the cost of the           651          

installation of site utilities and site preparation, the cost of   652          

insuring the project until it is completed, and the professional   654          

planning, administration, and design fees that a district may                   

have to pay to undertake a classroom facilities project.           655          

      "BASIC PROJECT COST" ALSO INCLUDES THE VALUE OF CLASSROOM    657          

FACILITIES AUTHORIZED IN A PRE-EXISTING BOND ISSUE AS DESCRIBED    658          

IN SECTION 3318.033 OF THE REVISED CODE.                           659          

      (M)  A "school district's portion of the basic project       661          

cost" means the amount determined under section 3318.032 of the    662          

Revised Code.                                                      663          

      (N)  "Child day-care facility" means space within a          666          

classroom facility in which the needs of infants, toddlers,        667          

preschool children, and school children are provided for by        668          

persons other than the parent or guardian of such children for     669          

any part of the day, including persons not employed by the school               

district operating such classroom facility.                        670          

      (O)  "Community resource center" means space within a        673          

                                                          17     


                                                                 
classroom facility in which comprehensive services that support    674          

the needs of families and children are provided by                 675          

community-based social service providers.                          676          

      (P)  "Valuation" means the total value of all property in    678          

the district as listed and assessed for taxation on the tax        680          

duplicates.                                                                     

      (Q)  "Percentile" means the percentile in which the          682          

district is ranked pursuant to division (D) of section 3318.011    684          

of the Revised Code.                                               685          

      (R)  "Installation of site utilities" means the              687          

installation of a site domestic water system, site fire            689          

protection system, site gas distribution system, site sanitary     690          

system, site storm drainage system, and site telephone and data    691          

system.                                                                         

      (S)  "Site preparation" means the earthwork necessary for    694          

preparation of the building foundation system, the paved           695          

pedestrian and vehicular circulation system, playgrounds on the    696          

project site, and lawn and planting on the project site.           697          

      Sec. 3318.011.  For purposes of providing assistance under   706          

sections 3318.01 to 3318.20 of the Revised Code, the department    707          

of education shall annually do all of the following:               708          

      (A)  Calculate the adjusted valuation per pupil of each      710          

city, local, and exempted village school district according to     711          

the following formula:                                             712          

              The district's valuation per pupil -                 713          

        6[$30,000 X (1 - the district's income factor)7<.          715          

      For purposes of this calculation:                            717          

      (1)  "Valuation per pupil" for a district means its average  719          

taxable value, divided by its formula ADM reported under section   720          

3317.03 of the Revised Code for the previous fiscal year.          722          

      (2)  "Average taxable value" means the average of the        724          

amounts certified for a district in the second, third, and fourth  725          

preceding fiscal years under divisions (A)(1) and (2) of section   726          

3317.021 of the Revised Code.                                      727          

                                                          18     


                                                                 
      (3)  "Income factor" has the same meaning as in section      729          

3317.02 of the Revised Code.                                       730          

      (B)  Calculate FOR EACH DISTRICT the three-year average OF   732          

THE adjusted valuation VALUATIONS per pupil of each city, local,   734          

and exempted village school CALCULATED FOR THE district for the    735          

CURRENT AND TWO preceding three fiscal years;                      736          

      (C)  Rank all such districts in order of adjusted valuation  738          

per pupil from the district with the lowest three-year average     739          

adjusted valuation per pupil to the district with the highest      741          

three-year average adjusted valuation per pupil;                   742          

      (D)  Divide such ranking into percentiles with the first     745          

percentile containing the one per cent of school districts having  746          

the lowest three-year average adjusted valuations per pupil and    747          

the one-hundredth percentile containing the one per cent of        748          

school districts having the highest three-year average adjusted    749          

valuations per pupil;                                              750          

      (E)  Determine the school districts that have three-year     753          

average adjusted valuations per pupil that are greater than the    755          

median three-year average adjusted valuation per pupil for all     756          

school districts in the state;                                                  

      (F)  Certify the information described in divisions (A) to   759          

(E) of this section to the Ohio school facilities commission.      760          

      Sec. 3318.021.  Notwithstanding section 3318.02 of the       769          

Revised Code, the Ohio school facilities commission annually may   770          

conduct on-site visits to no more than five school districts in    771          

the twentieth to fortieth percentiles as determined under section  773          

3318.011 of the Revised Code, if a ANY SCHOOL DISTRICT WHOSE       775          

district board adopts a resolution certifying to the commission    776          

the board's intent to participate in the school building           778          

assistance expedited local partnership program under section       779          

3318.36 of the Revised Code.                                       780          

      Sec. 3318.022.  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN  782          

SECTION 3318.02 OF THE REVISED CODE, WITHIN TWO YEARS FOLLOWING    784          

THE REQUEST OF THE SCHOOL DISTRICT, THE OHIO SCHOOL FACILITIES     785          

                                                          19     


                                                                 
COMMISSION SHALL ASSESS THE CURRENT CONDITIONS OF THE CLASSROOM    786          

FACILITIES NEEDS OF ANY SCHOOL DISTRICT THAT IS NOT YET ELIGIBLE   789          

FOR STATE ASSISTANCE UNDER CHAPTER 3318. OF THE REVISED CODE AND   790          

THAT REQUESTS SUCH AN ASSESSMENT.  THE ASSESSMENT MADE UNDER THIS  791          

SECTION SHALL NOT INCLUDE A FINAL AGREEMENT BETWEEN THE SCHOOL     792          

DISTRICT AND THE COMMISSION AS TO THE BASIC PROJECT COST OF THE    793          

SCHOOL DISTRICT'S CLASSROOM FACILITIES NEEDS.  THE COMMISSION      794          

SHALL NOT CONSIDER ANY REQUEST FOR AN ASSESSMENT UNDER THIS        795          

SECTION THAT IS SUBMITTED SOONER THAN THE EFFECTIVE DATE OF THIS   796          

SECTION.                                                                        

      Sec. 3318.03.  Upon BEFORE CONDUCTING AN ON-SITE EVALUATION  807          

OF A SCHOOL DISTRICT UNDER SECTION 3318.02 OF THE REVISED CODE,    808          

AT THE REQUEST OF THE DISTRICT BOARD OF EDUCATION, THE OHIO        809          

SCHOOL FACILITIES COMMISSION SHALL EXAMINE ANY CLASSROOM           810          

FACILITIES NEEDS ASSESSMENT THAT HAS BEEN CONDUCTED BY THE                      

DISTRICT AND ANY MASTER PLAN DEVELOPED FOR MEETING THE FACILITY    812          

NEEDS OF THE DISTRICT.                                                          

      UPON conducting the on-site evaluation under section         815          

3318.02 of the Revised Code, the Ohio school facilities            817          

commission shall make a determination of all of the following:     818          

      (A)  The needs of the school district for additional         820          

classroom facilities;                                              821          

      (B)  The number of classroom facilities to be included in a  824          

project, INCLUDING CLASSROOM FACILITIES AUTHORIZED BY A BOND       825          

ISSUE DESCRIBED IN SECTION 3318.033 OF THE REVISED CODE, and the   826          

basic project cost of constructing, acquiring, reconstructing, or  828          

making additions to each such facility;                            829          

      (C)  The amount of such cost that the school district can    832          

supply from available funds, by the issuance of bonds previously   833          

authorized by the electors of the school district the proceeds of  834          

which can lawfully be used for the project, INCLUDING BONDS        835          

AUTHORIZED BY THE DISTRICT'S ELECTORS AS DESCRIBED IN SECTION      836          

3318.033 OF THE REVISED CODE, and by the issuance of bonds under   838          

section 3318.05 of the Revised Code;                                            

                                                          20     


                                                                 
      (D)  The remaining amount of such cost that shall be         841          

supplied by the state;                                             842          

      (E)  If the state's portion of the basic project cost        844          

exceeds forty TWENTY-FIVE million dollars, the amount of the       846          

state's portion to be encumbered in accordance with section        847          

3318.11 of the Revised Code in the current and subsequent fiscal   849          

bienniums from funds appropriated for purposes of sections         850          

3318.01 to 3318.20 of the Revised Code.                            851          

      The commission shall make a determination in favor of        854          

constructing, acquiring, reconstructing, or making additions to a  855          

classroom facility only upon evidence that the proposed project    857          

conforms to sound educational practice, that it is in keeping      858          

with the orderly process of school district reorganization and     859          

consolidation, and that the actual or projected enrollment in      860          

each classroom facility proposed to be included in the project is  862          

at least three hundred fifty pupils.  Exceptions shall be                       

authorized only in those districts where topography, sparsity of   864          

population, and other factors make larger schools impracticable.   866          

      Sections 125.81 and 153.04 of the Revised Code shall not     868          

apply to classroom facilities constructed under sections 3318.01   869          

to 3318.20 of the Revised Code.                                    870          

      Sec. 3318.032.  (A)  The portion of the basic project cost   880          

supplied by the school district shall be the greater of:           882          

      (A)(1)  The required percentage of the basic project costs,  884          

determined based on the district's percentile ranking at the time  885          

the controlling board approved the project under section 3318.04   887          

of the Revised Code;                                                            

      (B)(2)  An amount necessary to raise the school district's   889          

net bonded indebtedness, as of the date the controlling board      891          

approved the project, to within five thousand dollars of the       892          

required level of indebtedness.                                    893          

      (B)  The amount of the district's share determined under     895          

this section shall be calculated only as of the date the           896          

controlling board approved the project, and that amount applies    897          

                                                          21     


                                                                 
throughout the one-year period permitted under section 3318.05 of  898          

the Revised Code for the district's electors to approve the        899          

propositions described in that section.  If the amount reserved    900          

and encumbered for a project is released because the electors do   901          

not approve those propositions within that year, and the school    902          

district later receives the controlling board's approval for the   903          

project, the district's portion shall be recalculated in           904          

accordance with this section as of the date of the controlling     905          

board's subsequent approval.                                                    

      (C)  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN DIVISION    908          

(A) OR (B) OF THIS SECTION, AT NO TIME SHALL A SCHOOL DISTRICT'S   909          

PORTION OF THE BASIC PROJECT COST BE GREATER THAN NINETY-FIVE PER               

CENT OF THE TOTAL BASIC PROJECT COST.                              910          

      Sec. 3318.033.  IF THE ELECTORS OF A SCHOOL DISTRICT HAVE    912          

APPROVED THE ISSUANCE OF BONDS FOR THE ACQUISITION OF CLASSROOM    913          

FACILITIES WITHIN EIGHTEEN MONTHS PRIOR TO THE SCHOOL DISTRICT     914          

BOARD'S RECEIPT OF A NOTIFICATION BY THE OHIO SCHOOL FACILITIES    915          

COMMISSION THAT THE SCHOOL DISTRICT IS ELIGIBLE FOR STATE          916          

ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE,  917          

AND IF THE CLASSROOM FACILITIES SUPPORTED BY THAT BOND MEASURE     918          

COMPLY WITH THE COMMISSION'S DESIGN SPECIFICATIONS FOR A PROJECT   919          

UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE, THE         920          

COMMISSION SHALL INCLUDE THE VALUE OF THOSE CLASSROOM FACILITIES   921          

IN THE BASIC PROJECT COST OF THE SCHOOL DISTRICT'S PROJECT         922          

DETERMINED UNDER SECTION 3318.03 OF THE REVISED CODE AND SHALL     923          

DEDUCT THE AMOUNT OF THE BONDS AUTHORIZED IN THAT BOND MEASURE     925          

FROM THE AMOUNT OF THE SCHOOL DISTRICT'S PORTION OF THE BASIC      926          

PROJECT COST AS DETERMINED UNDER SECTION 3318.032 OF THE REVISED   927          

CODE.                                                                           

      Sec. 3318.035.  (A)  THIS SECTION APPLIES ONLY IF THERE IS   929          

A CHANGE IN THE ASSESSMENT RATES ON GAS PIPELINES IMPOSED UNDER    930          

STATE LAW.                                                         931          

      (B)  IF AT ANY TIME DIVISION (A) OF THIS SECTION APPLIES     933          

AND IF THE CHANGE IN ASSESSMENT RATES DESCRIBED IN THAT DIVISION   935          

                                                          22     


                                                                 
AFFECTS A SCHOOL DISTRICT'S VALUATION AS DETERMINED UNDER          936          

DIVISION (P) OF SECTION 3318.01 OF THE REVISED CODE BY GREATER     938          

THAN TEN PER CENT AND IF THE OHIO SCHOOL FACILITIES COMMISSION     939          

HAD DETERMINED THE STATE AND SCHOOL DISTRICT PORTION OF THE BASIC  940          

PROJECT COST OF SUCH A DISTRICT'S PROJECT UNDER SECTION 3318.36    942          

OF THE REVISED CODE PRIOR TO THAT CHANGE IN VALUATION, THE         944          

COMMISSION SHALL ADJUST THE STATE AND SCHOOL DISTRICT PORTIONS OF  945          

THE BASIC PROJECT COST OF THE SCHOOL DISTRICT'S PROJECT USING THE               

VALUATION ALTERED BY THE CHANGE IN ASSESSMENT RATES DESCRIBED IN   946          

DIVISION (A) OF THIS SECTION.                                      947          

      Sec. 3318.04.  (A)  If the Ohio school facilities            956          

commission makes a determination under section 3318.03 of the      957          

Revised Code in favor of constructing, acquiring, reconstructing,  959          

or making additions to a classroom facility, the project shall be  960          

conditionally approved.  Such conditional approval shall be        961          

submitted to the controlling board for approval thereof.  The                   

controlling board shall forthwith approve or reject the            962          

commission's determination, conditional approval, the amount of    964          

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

state's portion exceeds forty TWENTY-FIVE million dollars, the     965          

amount of the state's portion to be encumbered in the current      967          

fiscal biennium.  In the event of approval thereof by the          968          

controlling board, the commission shall certify such conditional   970          

approval to the school district board and shall encumber from the  971          

total funds appropriated for the purpose of sections 3318.01 to                 

3318.20 of the Revised Code the amount of the state's portion of   972          

the basic project cost or, if the state's portion exceeds forty    973          

TWENTY-FIVE million dollars, the amount approved under this        975          

section to be encumbered in the current fiscal biennium.           976          

      The basic project cost for a project approved under this     979          

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

incurred if the classroom facilities to be constructed, acquired,  980          

or reconstructed, or the additions to be made to classroom         981          

facilities, under such project meet, but do not exceed, the        982          

                                                          23     


                                                                 
specifications for plans and materials for classroom facilities    983          

adopted by the commission.                                                      

      (B)(1)  No school district shall have a project              985          

conditionally approved pursuant to this section if the project     987          

includes the reconstruction of, or the making of additions to,     988          

any classroom facilities that were constructed, acquired,          989          

reconstructed, or added to as part of SCHOOL DISTRICT HAS ALREADY  990          

RECEIVED ANY ASSISTANCE FOR a project funded under any version of  991          

sections 3318.01 to 3318.20 of the Revised Code, and the prior     993          

project was one for which the electors of such district approved   994          

a levy within the last ten TWENTY years pursuant to any version    996          

of section 3318.06 of the Revised Code for purposes of qualifying  997          

for the funding of that project, UNLESS THE DISTRICT DEMONSTRATES  998          

TO THE SATISFACTION OF THE COMMISSION THAT THE DISTRICT HAS        1,000        

EXPERIENCED SINCE APPROVAL OF ITS PRIOR PROJECT AN EXCEPTIONAL     1,001        

INCREASE IN ENROLLMENT SIGNIFICANTLY ABOVE THE DISTRICT'S DESIGN   1,002        

CAPACITY UNDER THAT PRIOR PROJECT AS DETERMINED BY RULE OF THE     1,003        

COMMISSION.                                                                     

      (2)  NOTWITHSTANDING DIVISION (B)(1) OF THIS SECTION, ANY    1,005        

SCHOOL DISTRICT THAT RECEIVED ASSISTANCE UNDER SECTIONS 3318.01    1,006        

TO 3318.20 OF THE REVISED CODE, AS THOSE SECTIONS EXISTED PRIOR    1,007        

TO MAY 20, 1997, MAY RECEIVE ADDITIONAL ASSISTANCE UNDER THOSE     1,009        

SECTIONS, AS THEY EXIST ON AND AFTER MAY 20, 1997, PRIOR TO THE    1,010        

EXPIRATION OF THE PERIOD OF TIME REQUIRED UNDER DIVISION (B)(1)    1,011        

OF THIS SECTION, IF THE PERCENTILE IN WHICH THE SCHOOL DISTRICT    1,012        

IS LOCATED, AS DETERMINED UNDER SECTION 3318.011 OF THE REVISED    1,014        

CODE, IS ELIGIBLE FOR ASSISTANCE AS PRESCRIBED IN SECTION 3318.02  1,016        

OF THE REVISED CODE.                                                            

      THE COMMISSION MAY PROVIDE ASSISTANCE UNDER SECTIONS         1,018        

3318.01 TO 3318.20 OF THE REVISED CODE PURSUANT TO THIS DIVISION   1,019        

TO NO MORE THAN FIVE SCHOOL DISTRICTS PER FISCAL YEAR UNTIL ALL    1,020        

ELIGIBLE SCHOOL DISTRICTS HAVE RECEIVED THE ADDITIONAL ASSISTANCE  1,021        

AUTHORIZED UNDER THIS DIVISION.  THE COMMISSION SHALL ESTABLISH    1,022        

APPLICATION PROCEDURES, DEADLINES, AND PRIORITIES FOR FUNDING      1,023        

                                                          24     


                                                                 
PROJECTS UNDER THIS DIVISION.                                                   

      THE COMMISSION AT ITS DISCRETION MAY WAIVE CURRENT DESIGN    1,025        

SPECIFICATIONS IT HAS ADOPTED FOR PROJECTS UNDER SECTIONS 3318.01  1,026        

TO 3318.20 OF THE REVISED CODE WHEN ASSESSING AN APPLICATION FOR   1,027        

ADDITIONAL ASSISTANCE UNDER THIS DIVISION FOR THE RENOVATION OF    1,028        

CLASSROOM FACILITIES CONSTRUCTED OR RENOVATED UNDER A SCHOOL       1,030        

DISTRICT'S PREVIOUS PROJECT.  IF THE COMMISSION FINDS THAT A       1,032        

SCHOOL DISTRICT'S EXISTING CLASSROOM FACILITIES ARE ADEQUATE TO    1,033        

MEET ALL OF THE SCHOOL DISTRICT'S NEEDS, THE COMMISSION MAY                     

DETERMINE THAT NO ADDITIONAL STATE ASSISTANCE BE AWARDED TO A      1,034        

SCHOOL DISTRICT UNDER THIS DIVISION.                               1,035        

      IN ORDER FOR A SCHOOL DISTRICT TO BE ELIGIBLE TO RECEIVE     1,037        

ANY ADDITIONAL ASSISTANCE UNDER THIS DIVISION, THE SCHOOL          1,038        

DISTRICT ELECTORS SHALL EXTEND THE SCHOOL DISTRICT'S EXISTING      1,039        

LEVY DEDICATED FOR MAINTENANCE OF CLASSROOM FACILITIES UNDER       1,040        

CHAPTER 3318. OF THE REVISED CODE, PURSUANT TO SECTION 3318.061    1,042        

OF THE REVISED CODE OR SHALL PROVIDE EQUIVALENT ALTERNATIVE        1,043        

MAINTENANCE FUNDS AS SPECIFIED IN DIVISION (B) OF SECTION 3318.06  1,044        

OF THE REVISED CODE.                                                            

      Sec. 3318.05.  The conditional approval of the Ohio school   1,053        

facilities commission for a project shall lapse and the amount     1,055        

reserved and encumbered for such project shall be released unless  1,056        

the school district board accepts such conditional approval        1,057        

within one hundred twenty days following the date of               1,058        

certification of the conditional approval to the school district   1,059        

board and the electors of the school district vote favorably on    1,061        

both of the propositions described in divisions (A) and (B) of     1,062        

this section within one year of the date of such certification,    1,063        

except that a school district described in division (C) of this    1,064        

section does not need to submit the proposition described in       1,065        

division (B) of this section.  The propositions described in       1,067        

divisions (A) and (B) of this section shall be combined in a       1,068        

single proposal.  If the district board or the district's          1,069        

electors fail to meet such requirements and the amount reserved    1,070        

                                                          25     


                                                                 
and encumbered for the district's project is released, the         1,071        

district shall be given first priority for project funding as                   

such funds become available.                                       1,072        

      (A)  On the question of issuing bonds of the school          1,074        

district board, for the school district's portion of the basic     1,075        

project cost, in an amount equal to the school district's portion  1,078        

of the basic project cost LESS ANY DEDUCTION MADE UNDER SECTION    1,079        

3318.033 OF THE REVISED CODE; and                                  1,080        

      (B)  On the question of levying a tax the proceeds of which  1,083        

shall be used to pay the cost of maintaining the classroom         1,084        

facilities included in the project, except that in any year the                 

district's three-year average adjusted valuation per pupil is      1,085        

greater than the state-wide median three-year average adjusted     1,088        

valuation per pupil, one-half of the proceeds of the tax shall be  1,089        

used for such maintenance and one-half of such proceeds shall be   1,090        

paid to the state.  Such tax shall be at the rate of NOT LESS      1,091        

THAN one-half mill for each dollar of valuation until it           1,093        

generates an amount not to exceed the amount of the project cost   1,095        

supplied by the state, but in no case longer than FOR A PERIOD OF  1,096        

twenty-three years, SUBJECT TO ANY EXTENSION APPROVED UNDER        1,098        

SECTION 3318.061 OF THE REVISED CODE.                              1,099        

      (C)  If a school district has in place a tax levied under    1,101        

section 5705.21 of the Revised Code for general ongoing permanent  1,102        

improvements of at least two mills for each dollar of valuation    1,103        

and the proceeds of such tax can be used for maintenance, the      1,104        

school district need not levy the additional tax required under    1,106        

division (B) of this section, provided the school district board   1,107        

includes in the agreement entered into under section 3318.08 of    1,108        

the Revised Code provisions earmarking an amount from the          1,109        

proceeds of that permanent improvement tax for maintenance of      1,111        

classroom facilities or for payments to the state equivalent to    1,113        

the amount of the additional tax and for the equivalent number of  1,114        

years otherwise required under this section.                                    

      (D)  Proceeds of the tax to be used for maintenance of the   1,117        

                                                          26     


                                                                 
classroom facilities under either division (B) or (C) of this      1,118        

section shall be deposited into a separate fund established by     1,119        

the school district for such purpose.                                           

      Sec. 3318.052.  NOTWITHSTANDING ANY PROVISION OF DIVISIONS   1,121        

(A), (B), AND (C) OF SECTION 3318.05 OF THE REVISED CODE TO THE    1,123        

CONTRARY, BY RESOLUTION ADOPTED BY A MAJORITY OF ALL ITS MEMBERS,  1,125        

A SCHOOL DISTRICT BOARD MAY OPT TO APPLY THE PROCEEDS OF TAX       1,126        

LEVIED UNDER SECTION 5705.21 OF THE REVISED CODE FOR GENERAL       1,127        

ONGOING PERMANENT IMPROVEMENTS OR THE PROCEEDS OF SCHOOL DISTRICT  1,129        

INCOME TAX LEVIED UNDER CHAPTER 5748. OF THE REVISED CODE, OR      1,130        

PROCEEDS FROM A COMBINATION OF THOSE TWO TAXES, IF THE PROCEEDS    1,132        

OF SUCH LEVIES MAY LAWFULLY BE USED FOR GENERAL CONSTRUCTION,      1,133        

RENOVATION, REPAIR, OR MAINTENANCE OF CLASSROOM FACILITIES, IN     1,134        

LIEU OF ALL OR PART OF THE BONDS AND TAX LEVIES OTHERWISE          1,136        

REQUIRED UNDER DIVISIONS (A), (B), AND (C) OF SECTION 3318.05 OF   1,138        

THE REVISED CODE, TO LEVERAGE BONDS ADEQUATE TO PAY ALL OR PART    1,139        

OF THE SCHOOL DISTRICT PORTION OF A PROJECT UNDER SECTIONS         1,140        

3318.01 TO 3318.20 OF THE REVISED CODE OR TO GENERATE AN AMOUNT    1,141        

EQUIVALENT TO ALL OR PART OF THE PROCEEDS OF THE TAX REQUIRED      1,142        

UNDER DIVISION (B) OF SECTION 3318.05 OF THE REVISED CODE TO BE    1,144        

USED FOR MAINTENANCE OF CLASSROOM FACILITIES CONSTRUCTED,          1,146        

RENOVATED, OR REPAIRED UNDER SUCH PROJECT.  A SCHOOL DISTRICT      1,148        

UNDERTAKING A PROJECT UNDER SECTIONS 3318.01 TO 3318.20 OF THE     1,149        

REVISED CODE AND OPTING TO APPLY THE PROCEEDS OF THE TAX LEVIES    1,151        

PURSUANT TO THIS SECTION SHALL BE SUBJECT TO ALL OTHER PROVISIONS  1,152        

OF DIVISIONS (A), (B), AND (C) OF SECTION 3318.05 OF THE REVISED   1,154        

CODE AND THE REQUIREMENT FOR A SEPARATE MAINTENANCE FUND UNDER     1,156        

DIVISION (D) OF SECTION 3318.05 OF THE REVISED CODE.  BONDS        1,157        

ISSUED UNDER THIS SECTION SHALL BE CHAPTER 133. SECURITIES, BUT    1,159        

THE ISSUANCE OF THE BONDS SHALL NOT BE SUBJECT TO A VOTE OF THE    1,160        

ELECTORS OF THE SCHOOL DISTRICT AS LONG AS THE TAX LEVIES          1,161        

EARMARKED FOR PAYMENT OF THE SERVICE CHARGES ON THE BONDS MAY      1,162        

LAWFULLY BE USED FOR THAT PURPOSE.                                              

      NO STATE MONEYS SHALL BE RELEASED FOR A PROJECT TO WHICH     1,164        

                                                          27     


                                                                 
THIS SECTION APPLIES UNTIL THE PROCEEDS OF ANY BONDS ISSUED UNDER  1,165        

THIS SECTION THAT ARE DEDICATED FOR THE PAYMENT OF THE SCHOOL      1,166        

DISTRICT PORTION OF A PROJECT ARE FIRST DEPOSITED INTO THE SCHOOL  1,167        

DISTRICT'S PROJECT CONSTRUCTION FUND.                              1,168        

      Sec. 3318.06.  After receipt of the conditional approval of  1,177        

the Ohio school facilities commission, the school district board   1,179        

by a majority of all of its members shall, if it desires to        1,180        

proceed with the project, declare all of the following by          1,181        

resolution:                                                                     

      (A)  That by issuing bonds in an amount equal to the school  1,183        

district's portion of the basic project cost, INCLUDING BONDS      1,185        

PREVIOUSLY AUTHORIZED BY THE DISTRICT'S ELECTORS AS DESCRIBED IN   1,186        

SECTION 3318.033 OF THE REVISED CODE, the district is unable to    1,187        

provide adequate classroom facilities without assistance from the  1,189        

state;                                                                          

      (B)  That UNLESS THE SCHOOL DISTRICT BOARD HAS RESOLVED TO   1,191        

APPLY THE PROCEEDS OF A PROPERTY TAX OR THE PROCEEDS OF AN INCOME  1,192        

TAX, OR A COMBINATION OF PROCEEDS FROM SUCH TAXES, AS AUTHORIZED   1,193        

UNDER SECTION 3318.052 OF THE REVISED CODE, THAT to qualify for    1,194        

such state assistance it is necessary to do either of the          1,195        

following:                                                                      

      (1)  Levy a tax outside the ten-mill limitation the          1,197        

proceeds of which shall be used to pay the cost of maintaining     1,199        

the classroom facilities included in the project, except that in   1,200        

any year the district's three-year average adjusted valuation per  1,201        

pupil is greater than the statewide median three-year average      1,203        

adjusted valuation per pupil, one-half of the proceeds of the tax  1,204        

shall be used for such maintenance and one-half of such proceeds                

shall be paid to the state;                                        1,205        

      (2)  Earmark for maintenance of classroom facilities or for  1,207        

payments to the state from the proceeds of an existing permanent   1,208        

improvement tax levied under section 5705.21 of the Revised Code,  1,211        

if such tax is of at least two mills for each dollar of valuation  1,212        

and can be used for maintenance, an amount equivalent to the       1,213        

                                                          28     


                                                                 
amount of the additional tax otherwise required under this                      

section and sections 3318.05 and 3318.08 of the Revised Code.      1,215        

      (C)  That the question of any tax levy specified in a        1,217        

resolution described in division (B)(1) of this section, IF        1,218        

REQUIRED, shall be submitted to the electors of the school         1,221        

district at the next general or primary election, if there be a    1,222        

general or primary election not less than seventy-five and not     1,223        

more than ninety-five days after the day of the adoption of such   1,224        

resolution or, if not, at a special election to be held at a time  1,225        

specified in the resolution which shall be not less than           1,226        

seventy-five days after the day of the adoption of the resolution  1,227        

and which shall be in accordance with the requirements of section  1,228        

3501.01 of the Revised Code.                                                    

      Such resolution shall also state that the question of        1,231        

issuing bonds of the board shall be combined in a single proposal  1,232        

with the question of such tax levy.  More than one election under  1,233        

this section may be held in any one calendar year.  Such           1,234        

resolution shall specify both of the following:                                 

      (1)  That the rate which it is necessary to levy shall be    1,236        

at the rate of NOT LESS THAN one-half mill for each one dollar of  1,237        

valuation, and that such tax shall be levied until it generates    1,240        

an amount not to exceed the amount of the project cost supplied    1,242        

by the state, but in no case longer than FOR A PERIOD OF           1,243        

twenty-three years;                                                             

      (2)  That the proceeds of the tax shall be used to pay the   1,245        

cost of maintaining the classroom facilities included in the       1,246        

project, except in any year the district's three-year average      1,247        

adjusted valuation per pupil is greater than the statewide median  1,249        

three-year average adjusted valuation per pupil, one-half of the   1,250        

proceeds of the tax shall be used for such maintenance and         1,251        

one-half of the proceeds of the tax shall be paid to the state.    1,252        

      A copy of such resolution shall after its passage and not    1,254        

less than seventy-five days prior to the date set therein for the  1,255        

election be certified to the county board of elections.            1,256        

                                                          29     


                                                                 
      The resolution of the school district board, in addition to  1,259        

meeting other applicable requirements of section 133.18 of the     1,260        

Revised Code, shall state that the amount of bonds to be issued    1,261        

will be an amount equal to the school district's portion of the    1,262        

basic project cost, and state the maximum maturity of the bonds    1,264        

which, notwithstanding section 133.20 of the Revised Code, may be  1,265        

any number of years not exceeding twenty-three as determined by    1,266        

the board.  In estimating the amount of bonds to be issued, the    1,267        

board shall take into consideration the amount of moneys then in   1,268        

the bond retirement fund and the amount of moneys to be collected  1,269        

for and disbursed from the bond retirement fund during the         1,270        

remainder of the year in which the resolution of necessity is      1,271        

adopted.                                                                        

      Notice of the election shall include the fact that the tax   1,273        

levy shall be at the rate of NOT LESS THAN one-half mill for each  1,274        

one dollar of valuation, that the levy shall be made until it      1,277        

generates an amount not to exceed the amount of the project cost   1,278        

supplied by the state, but in no case longer than FOR A PERIOD OF  1,279        

twenty-three years, and that the proceeds of the tax shall be      1,281        

used to pay the cost of maintaining the classroom facilities       1,282        

included in the project, except in any year the district's         1,283        

three-year average adjusted valuation per pupil is greater than    1,284        

the statewide median three-year average adjusted valuation per     1,285        

pupil, one-half of the proceeds of the tax shall be used for such  1,287        

maintenance and one-half of the proceeds of the tax shall be paid  1,288        

to the state.                                                                   

      The form of the ballot to be used at such election shall     1,290        

be:                                                                1,291        

      "A majority affirmative vote is necessary for passage.       1,293        

      Shall bonds be issued by the ............ (here insert name  1,296        

of school district) school district to pay the local share of      1,297        

school construction under the State of Ohio Classroom Facilities   1,298        

Assistance Program in the principal amount of ............ (here   1,299        

insert principal amount of the bond issue), to be repaid annually  1,300        

                                                          30     


                                                                 
over a maximum period of ............ (here insert the maximum     1,301        

number of years over which the principal of the bonds may be       1,302        

paid) years, and an annual levy of property taxes be made outside  1,303        

the ten-mill limitation, estimated by the county auditor to        1,304        

average over the repayment period of the bond issue ............   1,305        

(here insert the number of mills estimated) mills for each one     1,306        

dollar of tax valuation, which amounts to ............ (rate       1,307        

expressed in cents or dollars and cents, such as "thirty-six       1,308        

cents" or "$0.36") for each one hundred dollars of tax valuation   1,309        

to pay the annual debt charges on the bonds and to pay debt        1,310        

charges on any notes issued in anticipation of the bonds?"         1,311        

                 and, unless the additional levy                   1,312        

                of taxes is not required pursuant                  1,313        

                   to division (C) of section                      1,314        

                  3318.05 of the Revised Code,                     1,315        

      "Shall an additional levy of taxes be made for a period not  1,317        

to 1xceed OF twenty-three years to benefit the ............ (here  1,319        

insert name of school district) school district, the proceeds of                

which shall be used to pay the cost of maintaining the classroom   1,321        

facilities included in the project, except that in any year the    1,323        

district's three-year average adjusted valuation per pupil is      1,324        

greater than the statewide median three-year average adjusted      1,325        

valuation per pupil, one-half of the proceeds of the tax shall be  1,328        

used for such maintenance and one-half of such proceeds shall be                

paid to the state, at the rate of .......... (HERE INSERT THE      1,329        

NUMBER OF MILLS, WHICH SHALL NOT BE LESS THAN one-half mill)       1,330        

MILLS for each one dollar of valuation?                            1,333        

         _______________________________________________           1,335        

                 FOR THE BOND ISSUE AND TAX LEVY                   1,336        

         _______________________________________________           1,337        

                 AGAINST THE BOND ISSUE AND TAX LEVY               1,338        

         _______________________________________________   "       1,339        

      (D)  If it is necessary for the school district to acquire   1,342        

a site for the classroom facilities to be acquired pursuant to     1,343        

                                                          31     


                                                                 
sections 3318.01 to 3318.20 of the Revised Code, the district      1,344        

board may propose either to issue bonds of the board or to levy a  1,345        

tax to pay for the acquisition of such site, and may combine the   1,346        

question of doing so with the questions specified in division (C)               

of this section.  Bonds issued under this division for the         1,347        

purpose of acquiring a site are a general obligation of the        1,348        

school district and are Chapter 133. securities.                   1,349        

      The form of that portion of the ballot to include the        1,351        

question of either issuing bonds or levying a tax for site         1,352        

acquisition purposes shall be one of the following:                1,353        

      (1)  "Shall bonds be issued by the ............ (here        1,356        

insert name of the school district) school district to pay costs   1,357        

of acquiring a site for classroom facilities under the State of    1,358        

Ohio Classroom Facilities Assistance Program in the principal      1,360        

amount of .......... (here insert principal amount of the bond     1,361        

issue), to be repaid annually over a maximum period of ..........               

(here insert maximum number of years over which the principal of   1,363        

the bonds may be paid) years, and an annual levy of property       1,364        

taxes be made outside the ten-mill limitation, estimated by the    1,365        

county auditor to average over the repayment period of the bond    1,366        

issue .......... (here insert number of mills) mills for each one               

dollar of tax valuation, which amount to .......... (here insert   1,367        

rate expressed in cents or dollars and cents, such as "thirty-six  1,368        

cents" or "$0.36") for each one hundred dollars of valuation to    1,370        

pay the annual debt charges on the bonds and to pay debt charges                

on any notes issued in anticipation of the bonds?"                 1,371        

      (2)  "Shall an additional levy of taxes outside the          1,373        

ten-mill limitation be made for the benefit of the ..........      1,374        

(here insert name of the school district) .......... school        1,375        

district for the purpose of acquiring a site for classroom         1,376        

facilities in the sum of ......... (here insert annual amount the  1,377        

levy is to produce) estimated by the county auditor to average     1,378        

........ (here insert number of mills) mills for each one hundred  1,379        

dollars of valuation, for a period of ......... (here insert       1,381        

                                                          32     


                                                                 
number of years the millage is to be imposed) years?"              1,382        

      Where it is necessary to combine the question of issuing     1,384        

bonds of the school district and levying a tax as described in     1,385        

division (C) of this section with the question of issuing bonds    1,386        

of the school district for acquisition of a site, the question     1,387        

specified in division (C) of this section to be voted on shall be  1,388        

"For the Bond Issues and the Tax Levy" and "Against the Bond                    

Issues and the Tax Levy."                                          1,389        

      Where it is necessary to combine the question of issuing     1,391        

bonds of the school district and levying a tax as described in     1,392        

division (C) of this section with the question of levying a tax    1,393        

for the acquisition of a site, the question specified in division  1,394        

(C) of this section to be voted on shall be "For the Bond Issue    1,395        

and the Tax Levies" and "Against the Bond Issue and the Tax                     

Levies."                                                           1,396        

      If a majority of those voting upon a proposition hereunder   1,398        

which includes the question of issuing bonds vote in favor         1,399        

thereof, and if the agreement provided for by section 3318.08 of   1,400        

the Revised Code has been entered into, the school district board  1,401        

may proceed under Chapter 133. of the Revised Code, with the       1,402        

issuance of bonds or bond anticipation notes in accordance with    1,403        

the terms of the agreement.                                        1,404        

      Sec. 3318.061.  THIS SECTION APPLIES ONLY TO SCHOOL          1,406        

DISTRICTS ELIGIBLE TO RECEIVE ADDITIONAL ASSISTANCE UNDER          1,407        

DIVISION (B)(2) OF SECTION 3318.04 OF THE REVISED CODE.            1,408        

      THE BOARD OF EDUCATION OF A SCHOOL DISTRICT IN WHICH A TAX   1,410        

DESCRIBED BY DIVISION (B) OF SECTION 3318.05 AND LEVIED UNDER      1,411        

SECTION 3318.06 OF THE REVISED CODE IS IN EFFECT, MAY ADOPT A      1,412        

RESOLUTION BY VOTE OF A MAJORITY OF ITS MEMBERS TO EXTEND THE      1,413        

TERM OF THAT TAX BEYOND THE EXPIRATION OF THAT TAX AS ORIGINALLY   1,414        

APPROVED UNDER THAT SECTION.  THE SCHOOL DISTRICT BOARD MAY        1,415        

INCLUDE IN THE RESOLUTION A PROPOSAL TO EXTEND THE TERM OF THAT    1,416        

TAX AT THE RATE OF NOT LESS THAN ONE-HALF MILL FOR EACH DOLLAR OF  1,417        

VALUATION FOR A PERIOD OF TWENTY-THREE YEARS FROM THE YEAR IN      1,418        

                                                          33     


                                                                 
WHICH THE SCHOOL DISTRICT BOARD AND THE OHIO SCHOOL FACILITIES     1,419        

COMMISSION ENTER INTO AN AGREEMENT UNDER DIVISION (B)(2) OF        1,420        

SECTION 3318.04 OF THE REVISED CODE OR IN THE FOLLOWING YEAR, AS   1,421        

SPECIFIED IN THE RESOLUTION.  SUCH A RESOLUTION MAY BE ADOPTED AT  1,422        

ANY TIME BEFORE SUCH AN AGREEMENT IS ENTERED INTO AND BEFORE THE   1,423        

TAX LEVIED PURSUANT TO SECTION 3318.06 OF THE REVISED CODE         1,424        

EXPIRES.  IF THE RESOLUTION IS COMBINED WITH A RESOLUTION TO       1,425        

ISSUE BONDS TO PAY THE SCHOOL DISTRICT'S PORTION OF THE BASIC      1,426        

PROJECT COST, IT SHALL CONFORM WITH THE REQUIREMENTS OF DIVISIONS  1,427        

(A), (B), AND (C) OF SECTION 3318.06 OF THE REVISED CODE, EXCEPT   1,430        

THAT THE RESOLUTION ALSO SHALL STATE THAT THE TAX LEVY PROPOSED    1,431        

IN THE RESOLUTION IS AN EXTENSION OF AN EXISTING TAX LEVIED UNDER  1,432        

THAT SECTION.  A RESOLUTION PROPOSING AN EXTENSION ADOPTED UNDER   1,433        

THIS SECTION DOES NOT TAKE EFFECT UNTIL IT IS APPROVED BY A        1,434        

MAJORITY OF ELECTORS VOTING IN FAVOR OF THE RESOLUTION AT A        1,435        

GENERAL, PRIMARY, OR SPECIAL ELECTION AS PROVIDED IN THIS          1,436        

SECTION.                                                                        

      A TAX LEVY EXTENDED UNDER THIS SECTION IS SUBJECT TO THE     1,438        

SAME TERMS AND LIMITATIONS TO WHICH THE ORIGINAL TAX LEVIED UNDER  1,439        

SECTION 3318.06 OF THE REVISED CODE IS SUBJECT UNDER THAT          1,440        

SECTION, EXCEPT THE TERM OF THE EXTENSION SHALL BE AS SPECIFIED    1,441        

IN THIS SECTION.                                                                

      THE SCHOOL DISTRICT BOARD SHALL CERTIFY A COPY OF THE        1,443        

RESOLUTION ADOPTED UNDER THIS SECTION TO THE PROPER COUNTY BOARD   1,444        

OF ELECTIONS NOT LATER THAN SEVENTY-FIVE DAYS BEFORE THE DATE SET  1,445        

IN THE RESOLUTION AS THE DATE OF THE ELECTION AT WHICH THE         1,446        

QUESTION WILL BE SUBMITTED TO ELECTORS.  THE NOTICE OF THE         1,447        

ELECTION SHALL CONFORM WITH THE REQUIREMENTS OF DIVISION (C) OF    1,448        

SECTION 3318.06 OF THE REVISED CODE, EXCEPT THAT THE NOTICE ALSO   1,449        

SHALL STATE THAT THE MAINTENANCE TAX LEVY IS AN EXTENSION OF AN    1,450        

EXISTING TAX LEVY.                                                 1,451        

      THE FORM OF THE BALLOT SHALL BE AS FOLLOWS:                  1,453        

      "SHALL THE EXISTING TAX LEVIED TO PAY THE COST OF            1,455        

MAINTAINING CLASSROOM FACILITIES CONSTRUCTED WITH THE PROCEEDS OF  1,456        

                                                          34     


                                                                 
THE PREVIOUSLY ISSUED BONDS AT THE RATE OF .......... (HERE        1,458        

INSERT THE NUMBER OF MILLS, WHICH SHALL NOT BE LESS THAN ONE-HALF  1,459        

MILL) MILLS PER DOLLAR OF TAX VALUATION, BE EXTENDED UNTIL         1,461        

........ (HERE INSERT THE YEAR THAT IS TWENTY-THREE YEARS AFTER    1,462        

THE YEAR IN WHICH THE DISTRICT AND COMMISSION WILL ENTER INTO AN   1,463        

AGREEMENT UNDER DIVISION (B)(2) OF SECTION 3318.04 OF THE REVISED  1,464        

CODE OR THE FOLLOWING YEAR)?                                                    

         __________________________________________________        1,467        

                 FOR EXTENDING THE EXISTING TAX LEVY               1,468        

         __________________________________________________        1,469        

                 AGAINST EXTENDING THE EXISTING TAX LEVY           1,470        

         __________________________________________________"       1,471        

      SECTION 3318.07 OF THE REVISED CODE APPLIES TO BALLOT        1,474        

QUESTIONS UNDER THIS SECTION.                                      1,475        

      Sec. 3318.08.  If the requisite favorable vote on the        1,484        

election is obtained, OR IF THE SCHOOL DISTRICT BOARD HAS          1,485        

RESOLVED TO APPLY THE PROCEEDS OF A PROPERTY TAX LEVY OR THE       1,486        

PROCEEDS OF AN INCOME TAX, OR A COMBINATION OF PROCEEDS FROM SUCH  1,487        

TAXES, AS AUTHORIZED IN SECTION 3318.052 OF THE REVISED CODE, the  1,488        

Ohio school facilities commission, upon certification TO IT of     1,490        

EITHER the results of the election to it OR THE RESOLUTION UNDER   1,491        

SECTION 3318.052 OF THE REVISED CODE, shall enter into a written   1,492        

agreement with the school district board for the construction and  1,493        

sale of the project, which agreement shall include, but need not   1,494        

be limited to, the following provisions:                                        

      (A)  The sale and issuance of bonds or notes in              1,496        

anticipation thereof, as soon as practicable after the execution   1,497        

of the agreement, in an amount equal to the school district's      1,499        

portion of the basic project cost, INCLUDING ANY BONDS PREVIOUSLY  1,500        

AUTHORIZED BY THE DISTRICT'S ELECTORS AS DESCRIBED IN SECTION      1,501        

3318.033 OF THE REVISED CODE; provided, that if at that time the   1,502        

county treasurer of each county in which the school district is    1,504        

located has not commenced the collection of taxes on the general   1,505        

duplicate of real and public utility property for the year in      1,506        

                                                          35     


                                                                 
which the controlling board approved the project, the school       1,507        

district board shall authorize the issuance of a first             1,508        

installment of bond anticipation notes in an amount specified by   1,509        

the agreement, which amount shall not exceed an amount necessary   1,510        

to raise the net bonded indebtedness of the school district as of  1,511        

the date of the controlling board's approval to within five        1,513        

thousand dollars of the required level of indebtedness for the     1,514        

preceding year.  In the event that a first installment of bond     1,515        

anticipation notes is issued, the school district board shall, as  1,516        

soon as practicable after the county treasurer of each county in   1,517        

which the school district is located has commenced the collection  1,518        

of taxes on the general duplicate of real and public utility       1,519        

property for the year in which the controlling board approved the  1,520        

project, authorize the issuance of a second and final installment  1,522        

of bond anticipation notes or a first and final issue of bonds.    1,523        

      The combined value of the first and second installment of    1,526        

bond anticipation notes or the value of the first and final issue  1,527        

of bonds shall be equal to the school district's portion of the    1,528        

basic project cost.  The proceeds of any such bonds shall be used  1,529        

first to retire any bond anticipation notes.  Otherwise, the       1,532        

proceeds of such bonds and of any bond anticipation notes, except  1,533        

the premium and accrued interest thereon, shall be deposited in    1,534        

the school district's project construction fund.  In determining   1,535        

the amount of net bonded indebtedness for the purpose of fixing    1,536        

the amount of an issue of either bonds or bond anticipation        1,537        

notes, gross indebtedness shall be reduced by moneys in the bond   1,538        

retirement fund only to the extent of the moneys therein on the    1,539        

first day of the year preceding the year in which the controlling  1,540        

board approved the project.  Should there be a decrease in the     1,542        

tax valuation of the school district so that the amount of         1,543        

indebtedness that can be incurred on the tax duplicates for the    1,545        

year in which the controlling board approved the project is less   1,547        

than the amount of the first installment of bond anticipation      1,548        

notes, there shall be paid from the school district's project      1,549        

                                                          36     


                                                                 
construction fund to the school district's bond retirement fund    1,551        

to be applied against such notes an amount sufficient to cause     1,552        

the net bonded indebtedness of the school district, as of the      1,553        

first day of the year following the year in which the controlling  1,554        

board approved the project, to be within five thousand dollars of  1,555        

the required level of indebtedness for the year in which the       1,556        

controlling board approved the project.  The maximum amount of     1,559        

indebtedness to be incurred by any school district board as its    1,560        

share of the cost of the project is either an amount that will     1,561        

cause its net bonded indebtedness, as of the first day of the      1,563        

year following the year in which the controlling board approved    1,564        

the project, to be within five thousand dollars of the required    1,565        

level of indebtedness, or an amount equal to the required          1,568        

percentage of the basic project costs, whichever is greater.  All  1,569        

bonds and bond anticipation notes shall be issued in accordance    1,570        

with Chapter 133. of the Revised Code, and notes may be renewed    1,571        

as provided in section 133.22 of the Revised Code.                 1,572        

      (B)(1)  The transfer of such funds of the school district    1,574        

board available for the project, together with the proceeds of     1,575        

the sale of the bonds or notes, except premium, accrued interest,  1,576        

and interest included in the amount of the issue, to the school    1,577        

district's project construction fund;                              1,578        

      (2)  IF SECTION 3318.052 OF THE REVISED CODE APPLIES, THE    1,580        

EARMARKING OF THE PROCEEDS OF A TAX LEVIED UNDER SECTION 5705.21   1,581        

OF THE REVISED CODE FOR GENERAL ONGOING PERMANENT IMPROVEMENTS OR  1,582        

THE PROCEEDS OF A SCHOOL DISTRICT INCOME TAX LEVIED UNDER CHAPTER  1,583        

5748. OF THE REVISED CODE, OR THE PROCEEDS FROM A COMBINATION OF   1,584        

THOSE TWO TAXES, IN AN AMOUNT TO PAY ALL OR PART OF THE SERVICE                 

CHARGES ON BONDS ISSUED TO PAY THE SCHOOL DISTRICT PORTION OF THE  1,585        

PROJECT AND AN AMOUNT EQUIVALENT TO ALL OR PART OF THE TAX         1,586        

REQUIRED UNDER DIVISION (B) OF SECTION 3318.05 OF THE REVISED      1,588        

CODE.                                                                           

      (C)  Either IF SECTION 3318.052 OF THE REVISED CODE DOES     1,590        

NOT APPLY, EITHER of the following:                                1,591        

                                                          37     


                                                                 
      (1)  The levy of the tax authorized at the election for the  1,593        

payment of maintenance costs or payments to the state, as          1,594        

specified in division (B) of section 3318.05 of the Revised Code;  1,596        

      (2)  If the school district electors have approved a         1,598        

continuing tax of at least two mills for each dollar of valuation  1,599        

for general ongoing permanent improvements under section 5705.21   1,601        

of the Revised Code and that tax can be used for maintenance, the  1,602        

earmarking of an amount of the proceeds from such tax for          1,603        

maintenance of classroom facilities or payments to the state as    1,604        

specified in division (B) of section 3318.05 of the Revised Code.  1,605        

      (D)  Ownership of or interest in the project during the      1,607        

period of construction, which shall be divided between the         1,608        

commission and the school district board in proportion to their    1,610        

respective contributions to the school district's project          1,611        

construction fund;                                                 1,612        

      (E)  Maintenance of the state's interest in the project      1,615        

until any obligations issued for the project under section         1,616        

3318.26 of the Revised Code are no longer outstanding;             1,617        

      (F)  The insurance of the project by the school district     1,619        

from the time there is an insurable interest therein and so long   1,620        

as the state retains any ownership or interest in the project      1,622        

pursuant to division (D) of this section, in such amounts and      1,625        

against such risks as the commission shall require; provided,      1,627        

that the cost of any required insurance until the project is       1,628        

completed shall be a part of the basic project cost;                            

      (G)  The certification by the director of budget and         1,630        

management that funds are available and have been set aside to     1,631        

meet the state's share of the basic project cost as approved by    1,633        

the controlling board pursuant to section 3318.04 of the Revised   1,634        

Code;                                                                           

      (H)  Authorization of the school district board to           1,636        

advertise for and receive construction bids for the project, for   1,637        

and on behalf of the commission, and to award contracts in the     1,639        

name of the state subject to approval by the commission;           1,640        

                                                          38     


                                                                 
      (I)  Provisions for the disbursement of moneys from the      1,642        

school district's project account upon issuance by the commission  1,644        

or the commission's designated representative of vouchers for      1,645        

work done to be certified to the commission by the treasurer of    1,648        

the school district board;                                         1,649        

      (J)  Disposal of any balance left in the school district's   1,651        

project construction fund upon completion of the project;          1,653        

      (K)  Limitations upon use of the project or any part of it   1,655        

so long as any obligations issued to finance the project under     1,657        

section 3318.26 of the Revised Code are outstanding;               1,658        

      (L)  Provision for vesting the state's interest in the       1,660        

project to the school district board when the obligations issued   1,662        

to finance the project under section 3318.26 of the Revised Code   1,663        

are outstanding;                                                                

      (M)  Provision for deposit of an executed copy of the        1,665        

agreement in the office of the commission;                         1,666        

      (N)  Provision for termination of the contract and release   1,668        

of the funds encumbered at the time of the conditional approval,   1,669        

if the proceeds of the sale of the bonds of the school district    1,670        

board are not paid into the school district's project              1,671        

construction fund and if bids for the construction of the project  1,673        

have not been taken within such period after the execution of the  1,674        

agreement as may be fixed by the commission;                       1,675        

      (O)  Provision for the school district to maintain the       1,677        

project in accordance with a plan approved by the commission;      1,679        

      (P)  Provision that all state funds reserved and encumbered  1,682        

to pay the state share of the cost of the project pursuant to      1,683        

section 3318.03 of the Revised Code be spent on the construction   1,685        

or acquisition of the project prior to the expenditure of any      1,686        

funds provided by the school district to pay for its share of the  1,687        

project cost, unless the school district certifies to the          1,688        

commission that expenditure by the school district is necessary    1,689        

to maintain the tax-exempt status of notes or bonds issued by the               

school district to pay for its share of the project cost in which  1,690        

                                                          39     


                                                                 
case, the school district may commit to spend, or spend, a         1,691        

portion of the funds it provides;                                  1,692        

      (Q)  A provision stipulating that the commission may         1,694        

prohibit the district from proceeding with any project if the      1,695        

commission determines that the site is not suitable for            1,696        

construction purposes.  The commission may perform soil tests in   1,697        

its determination of whether a site is appropriate for                          

construction purposes.                                             1,698        

      Sec. 3318.084.  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN  1,700        

CHAPTER 3318. OF THE REVISED CODE, A SCHOOL DISTRICT BOARD MAY     1,702        

APPLY ANY LOCAL DONATED CONTRIBUTION TOWARD THE DISTRICT'S         1,703        

PORTION OF THE BASIC PROJECT COST OF A PROJECT UNDER SECTIONS      1,704        

3318.01 TO 3318.20 OF THE REVISED CODE AND MAY USE SUCH LOCAL      1,705        

DONATED CONTRIBUTION TO REDUCE THE AMOUNT OF BONDS THE DISTRICT    1,706        

OTHERWISE MUST ISSUE IN ORDER TO RECEIVE STATE ASSISTANCE UNDER    1,707        

THOSE SECTIONS.                                                    1,708        

      AS USED IN THIS SECTION, "LOCAL DONATED CONTRIBUTION" MEANS  1,711        

EITHER OF THE FOLLOWING:                                                        

      (A)  ANY MONEYS IRREVOCABLY DONATED OR GRANTED TO A SCHOOL   1,713        

DISTRICT BOARD BY A SOURCE OTHER THAN THE STATE WHICH THE BOARD    1,715        

HAS THE AUTHORITY TO APPLY TO THE SCHOOL DISTRICT'S PROJECT UNDER  1,716        

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE AND WHICH THE      1,717        

BOARD HAS PLEDGED FOR THAT PURPOSE BY RESOLUTION ADOPTED BY A                   

MAJORITY OF ITS MEMBERS;                                           1,718        

      (B)  ANY IRREVOCABLE LETTER OF CREDIT ISSUED ON BEHALF OF A  1,720        

SCHOOL DISTRICT OR ANY CASH A SCHOOL DISTRICT HAS ON HAND,         1,721        

INCLUDING ANY YEAR-END OPERATING FUND BALANCES, THAT CAN BE SPENT  1,722        

FOR CLASSROOM FACILITIES, EITHER OF WHICH THE SCHOOL DISTRICT      1,725        

BOARD HAS ENCUMBERED FOR PAYMENT OF THE SCHOOL DISTRICT'S SHARE    1,726        

OF ITS PROJECT UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED    1,727        

CODE AND EITHER OF WHICH HAS BEEN APPROVED BY THE OHIO SCHOOL      1,728        

FACILITIES COMMISSION IN CONSULTATION WITH THE DEPARTMENT OF                    

EDUCATION.                                                         1,729        

      NO STATE MONEYS SHALL BE RELEASED FOR A PROJECT TO WHICH     1,731        

                                                          40     


                                                                 
THIS SECTION APPLIES UNTIL ANY DONATED LOCAL CONTRIBUTION          1,732        

AUTHORIZED UNDER THIS SECTION IS FIRST DEPOSITED INTO THE SCHOOL   1,733        

DISTRICT'S PROJECT CONSTRUCTION FUND.                              1,734        

      Sec. 3318.085.  (A)  AS USED IN THIS SECTION, "ELIGIBLE      1,736        

SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT THAT IS ELIGIBLE FOR      1,737        

STATE ASSISTANCE UNDER CHAPTER 3318. OF THE REVISED CODE, AND FOR  1,738        

WHICH THE AMOUNT OF BOND MONEY THAT WILL BE USED TO RAISE THE      1,740        

SCHOOL DISTRICT'S PORTION OF THE BASIC PROJECT COST OF A           1,741        

CLASSROOM FACILITIES PROJECT UNDER THAT CHAPTER IS NOT GREATER     1,742        

THAN TEN MILLION DOLLARS.                                                       

      (B)  NOTWITHSTANDING ANY PROVISION OF THE REVISED CODE TO    1,746        

THE CONTRARY, BEGINNING JANUARY 1, 2001, SOLELY FOR THE PURPOSE                 

OF ACQUIRING CLASSROOM FACILITIES UNDER ANY PROGRAM AUTHORIZED IN  1,748        

CHAPTER 3318. OF THE REVISED CODE, THE BOARDS OF EDUCATION OF TWO  1,750        

OR MORE ELIGIBLE SCHOOL DISTRICTS MAY ENTER INTO AN AGREEMENT      1,752        

WITH THE TREASURER OF STATE, UNDER WHICH THE TREASURER OF STATE                 

SHALL, PURSUANT TO SECTION 135.143 OF THE REVISED CODE, COMBINE    1,753        

INTO A SINGLE POOL THE BONDS THAT HAVE BEEN APPROVED FOR EACH      1,755        

SCHOOL DISTRICT BY ITS ELECTORS.  ANY BONDS ISSUED UNDER SUCH AN   1,756        

AGREEMENT SHALL BE CHAPTER 133. SECURITIES.  THE LIABILITY OF ANY  1,757        

SCHOOL DISTRICT UNDER THE AGREEMENT SHALL NOT EXCEED THE AMOUNT    1,760        

NECESSARY TO PAY THE PRINCIPAL AND INTEREST ON THAT SCHOOL         1,761        

DISTRICT'S PORTION OF THE COST OF ACQUIRING THE CLASSROOM                       

FACILITIES APPROVED FOR THE SCHOOL DISTRICT UNDER CHAPTER 3318.    1,763        

OF THE REVISED CODE PLUS ITS SHARE OF THE FINANCING COSTS          1,765        

ASSOCIATED WITH THE ISSUANCE OF BONDS UNDER THE AGREEMENT.  THE    1,766        

CUMULATIVE TOTAL INDEBTEDNESS ISSUED FOR ALL SCHOOL DISTRICTS      1,767        

COMBINED UNDER THE AGREEMENT SHALL NOT BE LESS THAN TEN MILLION    1,769        

DOLLARS.  THE AGREEMENT AND ANY BONDS ISSUED IN ACCORDANCE WITH    1,770        

THE AGREEMENT SHALL HOLD THE STATE HARMLESS FOR ANY LIABILITY OR   1,771        

OBLIGATION INCURRED BY A SCHOOL DISTRICT UNDER THE AGREEMENT OR    1,772        

BONDS.  THE TREASURER OF STATE MAY EMPLOY THE SERVICES OF A        1,773        

NEGOTIATING UNDERWRITER FOR NEGOTIATION OF ANY BOND POOL UNDER                  

THIS SECTION.  THE TREASURER OF STATE SHALL NOT ENTER INTO MORE    1,774        

                                                          41     


                                                                 
THAN TWO AGREEMENTS UNDER THIS SECTION IN ANY FISCAL YEAR.         1,775        

      Sec. 3318.11.  For any project for which the state's         1,784        

portion of the basic project cost exceeds forty TWENTY-FIVE        1,785        

million dollars, the amount of state appropriations to be          1,787        

encumbered for the project in each fiscal biennium shall be        1,788        

determined by the Ohio school facilities commission based on the   1,789        

project's estimated construction schedule for that biennium.  In   1,790        

each fiscal biennium subsequent to the first biennium in which     1,791        

state appropriations are encumbered for the project, the project   1,792        

has priority for state funds over projects for which initial                    

state funding is sought.                                           1,793        

      Sec. 3318.13.  Notwithstanding any provision of sections     1,802        

5705.27 to 5705.50 of the Revised Code, the tax to be levied on    1,803        

all taxable property within a school district for the purpose of   1,804        

paying the cost of maintaining the classroom facilities included   1,805        

in the project or for paying the state under the agreement         1,807        

provided in section 3318.08 of the Revised Code or the                          

supplemental agreement provided in section 3318.081 of the         1,808        

Revised Code shall be included in the budget of the school         1,809        

district for each year upon the certification to the county        1,810        

budget commission or commissions of the county or counties in      1,811        

which said school district is located, by the Ohio school          1,812        

facilities commission of the balance due the state under said      1,814        

agreement or supplemental agreement.  Such certification shall be  1,815        

made on or before the fifteenth day of July in each year.          1,816        

Thereafter, the respective county budget commissions shall treat   1,817        

such certification as an additional item on the tax budget for     1,818        

the school district as to which such certification has been made   1,819        

and shall provide for the levy therefor in the manner provided in  1,820        

sections 5705.27 to 5705.50 of the Revised Code for tax levies     1,821        

included directly in the budgets of the subdivisions.              1,822        

      The levy of taxes shall be included in the next annual tax   1,824        

budget that is certified to the county budget commission after     1,825        

the execution of the agreement for the project.                    1,826        

                                                          42     


                                                                 
      Sec. 3318.14.  Notwithstanding the provision of section      1,835        

321.31 of the Revised Code, immediately after each settlement      1,836        

with the county auditor, on presentation of the warrant of the     1,837        

county auditor therefor, the county treasurer shall pay to the     1,838        

school district the proceeds of the tax levy provided in section   1,839        

3318.13 of the Revised Code to be used to pay the cost of                       

maintaining the classroom facilities included in the project and   1,841        

pay to the Ohio school facilities commission any proceeds of the   1,843        

tax levy provided in section 3318.13 of the Revised Code to be     1,844        

paid to the state.                                                              

      Sec. 3318.15.  There is hereby created the public school     1,853        

building fund within the state treasury consisting of all moneys   1,854        

received from payments to the state pursuant to division (C) of    1,856        

section 3318.08 of the Revised Code, any moneys transferred or     1,857        

appropriated to the fund by the general assembly, and any grants,  1,858        

gifts, or contributions received by the Ohio school facilities     1,859        

commission to be used for the purposes of the fund.  All           1,860        

investment earnings of the fund shall be credited to the fund.                  

      Moneys transferred or appropriated to the fund by the        1,862        

general assembly and moneys in the fund from grants, gifts, and    1,863        

contributions shall be used for the purposes of sections 3318.01   1,865        

to 3318.20 of the Revised Code.  The moneys in the fund received   1,866        

from payments to the state pursuant to division (C) of section     1,867        

3318.08 of the Revised Code shall be held in a separate account                 

in the fund.  Such moneys may be used partially for the purposes   1,870        

of sections 3318.01 to 3318.20 of the Revised Code and partially   1,872        

to pay bond service charges as defined in division (C) of section  1,873        

3318.21 of the Revised Code on obligations.                        1,874        

      Sec. 3318.31.  (A)  The Ohio school facilities commission    1,884        

may perform any act and ensure the performance of any function     1,885        

necessary or appropriate to carry out the purposes of, and         1,886        

exercise the powers granted under, sections 3318.01 to 3318.33     1,887        

and section 3318.36 CHAPTER 3318. of the Revised Code, including   1,888        

any of the following:                                              1,890        

                                                          43     


                                                                 
      (1)  Employ and fix the compensation of such employees as    1,894        

will facilitate the activities and purposes of the commission,     1,895        

and who shall serve at the pleasure of the commission.                          

      (2)  Adopt, amend, and rescind, pursuant to section 111.15   1,898        

of the Revised Code, rules for the administration of sections      1,900        

3318.01 to 3318.33 and section 3318.36 PROGRAMS AUTHORIZED UNDER   1,901        

CHAPTER 3318. of the Revised Code.                                 1,903        

      (3)  Contract with, retain the services of, or designate,    1,906        

and fix the compensation of, such agents, accountants,             1,907        

consultants, advisers, and other independent contractors as may    1,908        

be necessary or desirable to carry out the purposes of sections    1,909        

3318.01 to 3318.33 and section 3318.36 PROGRAMS AUTHORIZED UNDER   1,910        

CHAPTER 3318. of the Revised Code.                                 1,911        

      (4)  Receive and accept any gifts, grants, donations, and    1,914        

pledges, and receipts therefrom, to be used for the purposes of    1,915        

sections 3318.01 to 3318.33 and section 3318.36 PROGRAMS           1,916        

AUTHORIZED UNDER CHAPTER 3318. of the Revised Code.                1,917        

      (5)  Make and enter into all contracts, commitments, and     1,920        

agreements, and execute all instruments, necessary or incidental   1,921        

to the performance of its duties and the execution of its rights   1,922        

and powers under sections 3318.01 to 3318.33 and section 3318.36   1,923        

CHAPTER 3318. of the Revised Code.                                 1,925        

      (B)  The attorney general shall serve as the legal           1,928        

representative for the commission and may appoint other counsel                 

as necessary for that purpose in accordance with section 109.07    1,930        

of the Revised Code.                                               1,931        

      Sec. 3318.311.  NOT LESS THAN SIX MONTHS AFTER THE           1,933        

EFFECTIVE DATE OF THIS SECTION, THE OHIO SCHOOL FACILITIES         1,934        

COMMISSION SHALL PRESENT TO THE SPEAKER OF THE HOUSE OF            1,935        

REPRESENTATIVES, THE PRESIDENT OF THE SENATE, AND THE GOVERNOR A   1,936        

PROPOSAL FOR LEGISLATION TO PROVIDE CLASSROOM FACILITIES           1,937        

ASSISTANCE TO JOINT VOCATIONAL SCHOOL DISTRICTS.                   1,938        

      NOT LATER THAN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS   1,941        

SECTION, THE COMMISSION SHALL ESTABLISH DESIGN SPECIFICATIONS FOR               

                                                          44     


                                                                 
CLASSROOM FACILITIES THAT ARE APPROPRIATE FOR JOINT VOCATIONAL     1,943        

EDUCATION PROGRAMS.  THE SPECIFICATIONS SHALL PROVIDE STANDARDS    1,944        

FOR APPROPRIATE PUPIL INSTRUCTION SPACE BUT SHALL NOT INCLUDE      1,945        

STANDARDS FOR ANY VOCATIONAL EDUCATION FURNISHINGS OR EQUIPMENT    1,946        

THAT IS NOT COMPARABLE TO, OR THE VOCATIONAL EDUCATION EQUIVALENT  1,947        

OF, THE FURNISHINGS OR EQUIPMENT FOR WHICH ASSISTANCE IS           1,949        

AVAILABLE TO OTHER SCHOOL DISTRICTS UNDER SECTIONS 3318.01 TO      1,950        

3318.20 OF THE REVISED CODE.                                                    

      Sec. 3318.351.  (A)  AS USED IN THIS SECTION:                1,952        

      (1)  "CLASSROOM FACILITIES" HAS THE SAME MEANING AS IN       1,954        

SECTION 3318.01 OF THE REVISED CODE.                               1,955        

      (2)  "EMERGENCY PROJECT" MEANS RECONSTRUCTION OR RENOVATION  1,957        

OF OR REPAIR TO ANY CLASSROOM FACILITIES MADE NECESSARY BECAUSE    1,958        

OF DAMAGE DUE TO AN ACT OF GOD.                                    1,959        

      (3)  "ELIGIBLE SCHOOL DISTRICT" MEANS ANY SCHOOL DISTRICT    1,961        

IN THE FIRST THROUGH ONE-HUNDREDTH PERCENTILES AS DETERMINED       1,962        

UNDER SECTION 3318.011 OF THE REVISED CODE.                        1,963        

      (B)(1)  THERE IS HEREBY ESTABLISHED THE SCHOOL BUILDING      1,965        

EMERGENCY ASSISTANCE PROGRAM, UNDER WHICH THE OHIO SCHOOL          1,966        

FACILITIES COMMISSION SHALL DISTRIBUTE GRANTS TO ELIGIBLE SCHOOL   1,967        

DISTRICTS FROM MONEYS SPECIFICALLY APPROPRIATED BY THE GENERAL     1,969        

ASSEMBLY FOR THE PURPOSES OF THIS SECTION TO ASSIST IN EMERGENCY   1,970        

PROJECTS.  ANY ASSISTANCE UNDER THIS SECTION SHALL BE USED TO PAY  1,971        

THE COST OF ONLY THE PORTION OF AN EMERGENCY PROJECT THAT IS NOT   1,972        

COVERED BY INSURANCE OR OTHER PUBLIC OR PRIVATE EMERGENCY          1,973        

ASSISTANCE RECEIVED BY OR PAYABLE TO THE SCHOOL DISTRICT.  ANY     1,974        

DAMAGE TO CLASSROOM FACILITIES CAUSED BY AGE OF THE FACILITIES OR  1,975        

BY LACK OF TIMELY MAINTENANCE TO THE FACILITIES SHALL NOT          1,976        

CONSTITUTE DAMAGE THAT IS SUBJECT TO ASSISTANCE UNDER THIS         1,977        

SECTION.                                                           1,978        

      (2)  THE COMMISSION SHALL ESTABLISH PROCEDURES AND           1,980        

DEADLINES FOR ELIGIBLE SCHOOL DISTRICTS TO FOLLOW IN APPLYING FOR  1,981        

ASSISTANCE UNDER THIS SECTION.  THE COMMISSION SHALL CONSIDER      1,982        

SUCH APPLICATIONS ON A CASE-BY-CASE BASIS TAKING INTO ACCOUNT THE  1,983        

                                                          45     


                                                                 
AMOUNT OF MONEYS AVAILABLE UNDER THIS SECTION.                     1,984        

      (3)  EVERY EFFORT SHALL BE MADE TO CONFORM AN EMERGENCY      1,986        

PROJECT TO DESIGN SPECIFICATIONS ADOPTED BY THE COMMISSION,        1,987        

INCLUDING MINIMUM CAPACITY REQUIREMENTS ADOPTED UNDER SECTION      1,988        

3318.03 OF THE REVISED CODE, UNLESS IN THE JUDGMENT OF THE         1,989        

COMMISSION IT IS NOT POSSIBLE TO CONFORM THE PROJECT TO SUCH       1,990        

SPECIFICATIONS.                                                                 

      Sec. 3318.36.  (A)  As used in this section:                 2,000        

      (1)  "Ohio school facilities commission," "classroom         2,002        

facilities," "school district," "school district board," "net      2,003        

bonded indebtedness," "required percentage of the basic project    2,004        

costs," "basic project cost," "valuation," and "percentile" have   2,005        

the same meanings as in section 3318.01 of the Revised Code.       2,006        

      (2)  "Required level of indebtedness" means five per cent    2,008        

of the school district's valuation for the year preceding the      2,009        

year in which the commission and school district enter into an     2,010        

agreement under division (B) of this section, plus [two            2,011        

one-hundredths of one per cent multiplied by (the percentile in    2,012        

which the district ranks in the fiscal year the commission and     2,013        

the school district enter into such agreement minus one)<.         2,014        

      (3)  "LOCAL RESOURCES" MEANS ANY MONEYS GENERATED IN ANY     2,016        

MANNER PERMITTED FOR A SCHOOL DISTRICT BOARD TO RAISE THE SCHOOL   2,017        

DISTRICT PORTION OF A PROJECT UNDERTAKEN WITH ASSISTANCE UNDER     2,019        

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE.                   2,020        

      (B)(1)  There is hereby established the school building      2,022        

assistance expedited local partnership program.  Under the         2,023        

program, the Ohio school facilities commission may enter into an   2,024        

agreement with the school district board of any school district    2,026        

ranked in the twentieth to fortieth percentiles, as determined     2,027        

under section 3318.011 of the Revised Code in the fiscal year      2,028        

that the commission and school district board enter into such      2,030        

agreement.  Under the agreement, UNDER WHICH the school district   2,032        

board may proceed with the new construction or major repairs of a  2,033        

part of the school district's classroom facilities needs, as       2,034        

                                                          46     


                                                                 
determined under sections 3318.01 to 3318.20 of the Revised Code,  2,035        

through the expenditure of local resources prior to the school     2,036        

district's eligibility for state assistance under sections         2,037        

3318.01 to 3318.20 of the Revised Code and may apply that          2,038        

expenditure toward meeting the school district's portion of the    2,039        

basic project cost of the total of the school district's           2,041        

classroom facilities needs, as determined under sections 3318.01                

to 3318.20 of the Revised Code and as recalculated under division  2,042        

(E) of this section, that are eligible for state assistance under  2,043        

sections 3318.01 to 3318.20 of the Revised Code when the school    2,044        

district becomes eligible for such state assistance.   ANY SCHOOL  2,046        

DISTRICT THAT IS REASONABLY EXPECTED TO RECEIVE ASSISTANCE UNDER                

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE WITHIN TWO FISCAL  2,047        

YEARS FROM THE DATE THE SCHOOL DISTRICT ADOPTS ITS RESOLUTION      2,048        

UNDER DIVISION (B) OF THIS SECTION SHALL NOT BE ELIGIBLE TO        2,049        

PARTICIPATE IN THE PROGRAM.                                                     

      The commission may enter into an agreement under this        2,051        

section with no more than five school districts each year.         2,052        

      (2)  To participate in the program, a school district board  2,054        

shall first adopt a resolution certifying to the commission the    2,056        

board's intent to participate in the program.                      2,057        

      The commission shall consider school districts for           2,059        

participation in the program under this section each year in the   2,060        

order in which they adopt the resolutions required under this      2,061        

section and submit them to the commission.                                      

      THE RESOLUTION SHALL SPECIFY THE APPROXIMATE DATE THAT THE   2,063        

BOARD INTENDS TO SEEK ELECTOR APPROVAL OF ANY BOND OR TAX          2,064        

MEASURES OR TO APPLY OTHER LOCAL RESOURCES TO USE TO PAY THE COST  2,066        

OF CLASSROOM FACILITIES TO BE CONSTRUCTED UNDER THIS SECTION.      2,067        

THE RESOLUTION SHALL NOT SPECIFY AN ELECTION SOONER THAN TWELVE    2,068        

MONTHS AFTER THE DATE THE RESOLUTION IS ADOPTED BY THE BOARD.      2,069        

THE BOARD SHALL SUBMIT ITS RESOLUTION TO THE COMMISSION NOT LATER  2,070        

THAN TEN DAYS AFTER THE DATE THE RESOLUTION IS ADOPTED BY THE      2,071        

BOARD.                                                                          

                                                          47     


                                                                 
      THE COMMISSION SHALL NOT CONSIDER ANY RESOLUTION THAT IS     2,073        

SUBMITTED PURSUANT TO DIVISION (B)(2) OF THIS SECTION, AS AMENDED  2,074        

BY THIS AMENDMENT, SOONER THAN THE EFFECTIVE DATE OF THIS          2,075        

AMENDMENT.                                                                      

      (3)  Any project under this section shall comply with        2,077        

section 3318.03 of the Revised Code and with any specifications    2,078        

for plans and materials for classroom facilities adopted by the    2,079        

commission under section 3318.04 of the Revised Code.              2,080        

      (C)  If the commission and a school district board enter     2,082        

into an agreement authorized under division (B) of this section,   2,083        

the commission shall conduct on-site visits to the school          2,084        

district and shall conduct an assessment of the school district's  2,086        

classroom facilities needs as authorized in section 3318.021 of    2,087        

the Revised Code within six months of the execution of the         2,088        

agreement.  Based on the results of the on-site visits and         2,089        

assessment CONDUCTED UNDER DIVISION (B)(2) OF THIS SECTION, the    2,090        

commission shall determine the basic project cost of the school    2,091        

district's classroom facilities needs.  The commission shall       2,092        

determine the school district's portion of such basic project      2,093        

cost, which shall be the greater of:                               2,094        

      (1)  The required percentage of the basic project costs,     2,096        

determined based on the school district's percentile ranking in    2,097        

the fiscal year the commission and the school district enter into  2,098        

the agreement under division (B) of this section;                  2,099        

      (2)  An amount necessary to raise the school district's net  2,101        

bonded indebtedness, as of the fiscal year the commission and the  2,102        

school district enter into the agreement under division (B) of     2,103        

this section, to within five thousand dollars of the required      2,104        

level of indebtedness.                                                          

      (D)(1)  When the commission determines the basic project     2,106        

cost of the classroom facilities needs of a school district and    2,107        

the school district's portion of that basic project cost under     2,109        

division (C) of this section, the project shall be conditionally   2,110        

approved.  Such conditional approval shall be submitted to the     2,111        

                                                          48     


                                                                 
controlling board for approval thereof.  The controlling board     2,112        

shall forthwith approve or reject the commission's determination,  2,113        

conditional approval, and the amount of the state's portion of     2,114        

the basic project cost; however, no state funds shall be           2,115        

encumbered under this section.  Upon approval by the controlling   2,116        

board, the school district board may identify a discrete part of   2,117        

its classroom facilities needs, which shall include only new       2,118        

construction of or additions or major repairs to a particular      2,119        

building, to address with local resources.  Upon identifying a     2,120        

part of the school district's basic project cost to address with   2,121        

local resources, the school district board may allocate any        2,122        

available school district moneys to pay the cost of that           2,123        

identified part, including the proceeds of an issuance of bonds                 

if approved by the electors of the school district.                2,125        

      All local resources utilized under this division shall       2,127        

first be deposited in the project construction account required    2,128        

under section 3318.08 of the Revised Code.                         2,129        

      (2)  For UNLESS THE SCHOOL DISTRICT BOARD EXERCISES ITS      2,131        

OPTION UNDER DIVISION (D)(3) OF THIS SECTION, FOR a school         2,132        

district to qualify for participation in the program authorized    2,134        

under this section, the EITHER:                                                 

      (a)  THE electors of the school district by a majority vote  2,137        

shall approve the levy of taxes outside the ten-mill limitation    2,138        

for a period not to exceed OF twenty-three years at the rate of    2,140        

NOT LESS THAN one-half mill for each dollar of valuation to be     2,141        

used to pay the cost of maintaining the classroom facilities       2,142        

included in the basic project cost as determined by the            2,143        

commission.  The form of the ballot to be used to submit the       2,146        

question whether to approve the tax required under this division   2,147        

to the electors of the school district shall be the form for an    2,148        

additional levy of taxes prescribed in division (C) of section     2,149        

3318.06 3318.361 of the Revised Code.  Proceeds of this            2,150        

additional levy of taxes                                           2,151        

      (b)  AS AUTHORIZED UNDER DIVISION (C) OF SECTION 3318.05 OF  2,154        

                                                          49     


                                                                 
THE REVISED CODE, THE SCHOOL DISTRICT BOARD SHALL EARMARK FROM     2,156        

THE PROCEEDS OF A PERMANENT IMPROVEMENT TAX LEVIED UNDER SECTION   2,157        

5705.21 OF THE REVISED CODE, AN AMOUNT EQUIVALENT TO THE           2,158        

ADDITIONAL TAX OTHERWISE REQUIRED UNDER DIVISION (D)(2)(a) OF      2,160        

THIS SECTION FOR THE MAINTENANCE OF THE CLASSROOM FACILITIES       2,162        

INCLUDED IN THE BASIC PROJECT COST AS DETERMINED BY THE            2,163        

COMMISSION.                                                                     

      (3)  A SCHOOL DISTRICT BOARD MAY OPT TO DELAY LEVYING THE    2,165        

ADDITIONAL TAX REQUIRED UNDER DIVISION (D)(2)(a) OF THIS SECTION   2,167        

OR EARMARKING OF THE PROCEEDS OF A PERMANENT IMPROVEMENT TAX       2,168        

ALTERNATIVELY REQUIRED UNDER DIVISION (D)(2)(b) OF THIS SECTION    2,170        

UNTIL SUCH TIME AS THE SCHOOL DISTRICT BECOMES ELIGIBLE FOR STATE  2,171        

ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE.  2,173        

IN ORDER TO EXERCISE ITS OPTION UNDER THIS DIVISION, THE BOARD     2,174        

SHALL CERTIFY TO THE COMMISSION A RESOLUTION INDICATING THE                     

BOARD'S INTENT TO DO SO PRIOR TO ENTERING INTO AN AGREEMENT UNDER  2,176        

DIVISION (B) OF THIS SECTION.                                                   

      (4)  IF PURSUANT TO DIVISION (D)(3) OF THIS SECTION A        2,178        

DISTRICT BOARD OPTS TO DELAY LEVYING AN ADDITIONAL TAX UNTIL THE   2,180        

DISTRICT BECOMES ELIGIBLE FOR STATE ASSISTANCE, IT SHALL SUBMIT    2,181        

THE QUESTION OF LEVYING THAT TAX TO THE DISTRICT ELECTORS AS       2,182        

FOLLOWS:                                                                        

      (a)  IN ACCORDANCE WITH SECTION 3318.06 OF THE REVISED CODE  2,185        

IF IT WILL ALSO BE NECESSARY PURSUANT TO DIVISION (E) OF THIS      2,186        

SECTION TO SUBMIT A PROPOSAL FOR APPROVAL OF A BOND ISSUE;         2,187        

      (b)  IN ACCORDANCE WITH SECTION 3318.361 OF THE REVISED      2,190        

CODE IF IT IS NOT NECESSARY TO ALSO SUBMIT A PROPOSAL FOR          2,191        

APPROVAL OF A BOND ISSUE PURSUANT TO DIVISION (E) OF THIS          2,192        

SECTION.                                                                        

      (5)  NO STATE ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20   2,196        

OF THE REVISED CODE SHALL BE RELEASED UNTIL A SCHOOL DISTRICT      2,197        

BOARD THAT ADOPTS AND CERTIFIES A RESOLUTION UNDER THIS DIVISION   2,198        

EITHER HAS LEVIED THE ADDITIONAL TAX OR HAS EARMARKED THE          2,199        

PROCEEDS OF A TAX AS SPECIFIED IN DIVISION (D) OF THIS SECTION.    2,200        

                                                          50     


                                                                 
      ANY AMOUNT REQUIRED FOR MAINTENANCE UNDER DIVISION (D)(2)    2,202        

OF THIS SECTION shall be deposited into a separate fund as         2,204        

specified in division (B) of section 3318.05 of the Revised Code.  2,205        

      (E)(1)  If the school district becomes eligible for state    2,207        

assistance under sections 3318.01 to 3318.20 of the Revised Code   2,209        

based on its percentile ranking as determined under division (B)   2,210        

of this section, the commission shall conduct a new assessment of  2,211        

the school district's classroom facilities needs and shall         2,212        

recalculate the basic project cost based on this new assessment.   2,213        

The basic project cost recalculated under this division shall      2,214        

include the amount of expenditures made by the school district     2,215        

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

shall then recalculate the school district's portion of the new    2,216        

basic project cost by utilizing, WHICH SHALL BE the proportion     2,217        

PERCENTAGE of the original basic project cost assigned to the      2,220        

school district as its portion under division (C) of this                       

section.  The commission shall deduct the expenditure of school    2,221        

district moneys made under division (D)(1) of this section from    2,223        

the school district's portion of the basic project cost as                      

recalculated under this division.  If the amount of school         2,225        

district resources applied by the school district board to the                  

school district's portion of the basic project cost under this     2,227        

section is less than the total amount of such portion as           2,228        

recalculated under this division, the school district board by a   2,229        

majority vote of all of its members shall, if it desires to seek   2,230        

state assistance under sections 3318.01 to 3318.20 of the Revised  2,231        

Code, adopt a resolution as specified in section 3318.06 of the    2,232        

Revised Code to submit to the electors of the school district the  2,233        

question of approval of a bond issue in order to pay any           2,234        

additional amount of school district portion required for state    2,235        

assistance.  The ANY tax levy approved under division (D)(2) of    2,237        

this section shall satisfy SATISFIES the requirements to levy the  2,238        

one-half mill additional tax under section 3318.06 of the Revised  2,239        

Code.                                                                           

                                                          51     


                                                                 
      (2)  If the amount of school district resources applied by   2,241        

the school district board to the school district's portion of the  2,242        

basic project cost under this section is more than the total       2,243        

amount of such portion as recalculated under this division,        2,244        

WITHIN ONE YEAR AFTER THE SCHOOL DISTRICT'S PORTION IS             2,245        

RECALCULATED UNDER DIVISION (E)(1) OF THIS SECTION the commission  2,246        

may reimburse GRANT to the school district the difference between  2,247        

the two calculated portions, but at no time shall the commission   2,249        

expend any state funds on a project in an amount greater than the  2,250        

state's portion of the basic project cost as recalculated under    2,251        

this division.                                                     2,252        

      ANY REIMBURSEMENT UNDER THIS DIVISION SHALL BE ONLY FOR      2,254        

LOCAL RESOURCES THE SCHOOL DISTRICT HAS APPLIED TOWARD             2,255        

CONSTRUCTION COST EXPENDITURES FOR THE CLASSROOM FACILITIES        2,256        

APPROVED BY THE COMMISSION, WHICH SHALL NOT INCLUDE ANY FINANCING  2,257        

COSTS ASSOCIATED WITH THAT CONSTRUCTION.                           2,258        

      THE SCHOOL DISTRICT BOARD SHALL USE ANY MONEYS REIMBURSED    2,260        

TO THE DISTRICT UNDER THIS DIVISION TO PAY OFF ANY DEBT SERVICE    2,261        

THE DISTRICT OWES FOR CLASSROOM FACILITIES CONSTRUCTED UNDER ITS   2,262        

PROJECT UNDER THIS SECTION BEFORE SUCH MONEYS ARE APPLIED TO ANY   2,263        

OTHER PURPOSE.                                                                  

      Sec. 3318.361.  A SCHOOL DISTRICT BOARD OPTING TO QUALIFY    2,265        

FOR STATE ASSISTANCE PURSUANT TO SECTION 3318.36 OF THE REVISED    2,267        

CODE THROUGH LEVYING THE TAX SPECIFIED IN DIVISION (D)(2)(a) OR    2,270        

(D)(4) OF THAT SECTION SHALL DECLARE BY RESOLUTION THAT THE        2,272        

QUESTION OF A TAX LEVY SPECIFIED IN DIVISION (D)(2)(a) OR (4), AS  2,273        

APPLICABLE, OF SECTION 3318.36 OF THE REVISED CODE SHALL BE        2,274        

SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT AT THE NEXT       2,276        

GENERAL OR PRIMARY ELECTION, IF THERE BE A GENERAL OR PRIMARY      2,277        

ELECTION NOT LESS THAN SEVENTY-FIVE AND NOT MORE THAN NINETY-FIVE  2,278        

DAYS AFTER THE DAY OF THE ADOPTION OF SUCH RESOLUTION OR, IF NOT,  2,279        

AT A SPECIAL ELECTION TO BE HELD AT A TIME SPECIFIED IN THE        2,280        

RESOLUTION WHICH SHALL BE NOT LESS THAN SEVENTY-FIVE DAYS AFTER    2,281        

THE DAY OF THE ADOPTION OF THE RESOLUTION AND WHICH SHALL BE IN    2,282        

                                                          52     


                                                                 
ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3501.01 OF THE         2,283        

REVISED CODE.  SUCH RESOLUTION SHALL SPECIFY BOTH OF THE           2,284        

FOLLOWING:                                                                      

      (A)  THAT THE RATE WHICH IT IS NECESSARY TO LEVY SHALL BE    2,286        

AT THE RATE OF NOT LESS THAN ONE-HALF MILL FOR EACH ONE DOLLAR OF  2,287        

VALUATION, AND THAT SUCH TAX SHALL BE LEVIED FOR A PERIOD OF       2,290        

TWENTY-THREE YEARS;                                                             

      (B)  THAT THE PROCEEDS OF THE TAX SHALL BE USED TO PAY THE   2,292        

COST OF MAINTAINING THE CLASSROOM FACILITIES INCLUDED IN THE       2,293        

PROJECT.                                                                        

      A COPY OF SUCH RESOLUTION SHALL AFTER ITS PASSAGE AND NOT    2,295        

LESS THAN SEVENTY-FIVE DAYS PRIOR TO THE DATE SET THEREIN FOR THE  2,296        

ELECTION BE CERTIFIED TO THE COUNTY BOARD OF ELECTIONS.            2,297        

      NOTICE OF THE ELECTION SHALL INCLUDE THE FACT THAT THE TAX   2,299        

LEVY SHALL BE AT THE RATE OF NOT LESS THAN ONE-HALF MILL FOR EACH  2,300        

ONE DOLLAR OF VALUATION FOR A PERIOD OF TWENTY-THREE YEARS, AND    2,303        

THAT THE PROCEEDS OF THE TAX SHALL BE USED TO PAY THE COST OF      2,304        

MAINTAINING THE CLASSROOM FACILITIES INCLUDED IN THE PROJECT.      2,305        

      THE FORM OF THE BALLOT TO BE USED AT SUCH ELECTION SHALL     2,307        

BE:                                                                2,308        

      "SHALL A LEVY OF TAXES BE MADE FOR A PERIOD OF TWENTY-THREE  2,311        

YEARS TO BENEFIT THE ............ (HERE INSERT NAME OF SCHOOL      2,312        

DISTRICT) SCHOOL DISTRICT, THE PROCEEDS OF WHICH SHALL BE USED TO  2,313        

PAY THE COST OF MAINTAINING THE CLASSROOM FACILITIES INCLUDED IN   2,314        

THE PROJECT AT THE RATE OF .......... (HERE INSERT THE NUMBER OF   2,315        

MILLS, WHICH SHALL NOT BE LESS THAN ONE-HALF MILL) MILLS FOR EACH  2,317        

ONE DOLLAR OF VALUATION?                                           2,318        

         _______________________________________________           2,320        

                 FOR THE TAX LEVY                                  2,321        

         _______________________________________________           2,322        

                 AGAINST THE TAX LEVY                              2,323        

         _______________________________________________   "       2,324        

      Sec. 3318.362.  THIS SECTION APPLIES ONLY TO A SCHOOL        2,327        

DISTRICT THAT PARTICIPATES IN THE SCHOOL BUILDING ASSISTANCE       2,328        

                                                          53     


                                                                 
EXPEDITED LOCAL PARTNERSHIP PROGRAM UNDER SECTION 3318.36 OF THE   2,329        

REVISED CODE.                                                      2,330        

      NOTWITHSTANDING THE TWENTY-THREE YEAR MAXIMUM MATURITY FOR   2,332        

BONDS PROPOSED TO BE ISSUED BY A SCHOOL DISTRICT BOARD FOR A       2,333        

CLASSROOM FACILITIES PROJECT PURSUANT TO DIVISION (C) OF SECTION   2,334        

3318.06 OF THE REVISED CODE, A SCHOOL DISTRICT BOARD THAT ENTERS   2,335        

INTO AN AGREEMENT WITH THE OHIO SCHOOL FACILITIES COMMISSION       2,337        

UNDER DIVISION (B) OF SECTION 3318.36 OF THE REVISED CODE MAY      2,339        

PROPOSE FOR ISSUANCE ANY BONDS NECESSARY FOR ITS PARTICIPATION IN  2,340        

THE PROGRAM UNDER SECTION 3318.36 OF THE REVISED CODE FOR A TERM   2,341        

LONGER THAN TWENTY-THREE YEARS BUT NOT TO EXCEED THE TERM          2,342        

CALCULATED PURSUANT TO SECTION 133.20 OF THE REVISED CODE.  ANY    2,343        

MONEYS RECEIVED FROM THE STATE UNDER DIVISION (E)(2) OF SECTION    2,344        

3318.36 OF THE REVISED CODE SHALL BE APPLIED, AS AGREED IN         2,346        

WRITING BY THE SCHOOL DISTRICT BOARD AND THE COMMISSION, TO PAY                 

DEBT SERVICE ON OUTSTANDING BONDS OR BOND ANTICIPATION NOTES       2,348        

ISSUED BY THE SCHOOL DISTRICT BOARD FOR ITS PARTICIPATION IN THE   2,349        

EXPEDITED LOCAL PARTNERSHIP PROGRAM, INCLUDING BY PLACING THOSE    2,350        

MONEYS IN AN APPLICABLE ESCROW FUND UNDER DIVISION (D) OF SECTION  2,351        

133.34 OF THE REVISED CODE.                                        2,352        

      Sec. 3318.37.  (A)  AS USED IN THIS SECTION:                 2,354        

      (1)  "LOW WEALTH SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT    2,356        

IN THE FIRST THROUGH FIFTIETH PERCENTILES AS DETERMINED UNDER      2,357        

SECTION 3318.011 OF THE REVISED CODE.                              2,358        

      (2)  A "SCHOOL DISTRICT WITH AN EXCEPTIONAL NEED FOR         2,360        

IMMEDIATE CLASSROOM FACILITIES ASSISTANCE" MEANS A LOW WEALTH      2,361        

SCHOOL DISTRICT WITH AN EXCEPTIONAL NEED FOR NEW FACILITIES IN     2,363        

ORDER TO PROTECT THE HEALTH AND SAFETY OF ALL OR A PORTION OF ITS  2,364        

STUDENTS.  SCHOOL DISTRICTS REASONABLY EXPECTED TO BE ELIGIBLE     2,365        

FOR STATE ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE                   

REVISED CODE WITHIN THREE FISCAL YEARS AFTER ASSISTANCE UNDER      2,366        

THIS SECTION IS BEING CONSIDERED BY THE OHIO SCHOOL FACILITIES     2,367        

COMMISSION, AND SCHOOL DISTRICTS THAT PARTICIPATE IN THE SCHOOL    2,369        

BUILDING ASSISTANCE EXPEDITED LOCAL PARTNERSHIP PROGRAM UNDER      2,370        

                                                          54     


                                                                 
SECTION 3318.36 OF THE REVISED CODE SHALL NOT BE ELIGIBLE FOR      2,372        

ASSISTANCE UNDER THIS SECTION.                                     2,373        

      (B)(1)  THERE IS HEREBY ESTABLISHED THE EXCEPTIONAL NEEDS    2,375        

SCHOOL FACILITIES ASSISTANCE PROGRAM.  UNDER THE PROGRAM, THE      2,376        

OHIO SCHOOL FACILITIES COMMISSION MAY SET ASIDE FROM THE MONEYS    2,377        

ANNUALLY APPROPRIATED TO IT FOR CLASSROOM FACILITIES ASSISTANCE    2,379        

PROJECTS UP TO TWENTY-FIVE PER CENT FOR ASSISTANCE TO SCHOOL       2,380        

DISTRICTS WITH EXCEPTIONAL NEEDS FOR IMMEDIATE CLASSROOM           2,381        

FACILITIES ASSISTANCE.                                                          

      (2)(a)  AFTER CONSULTING WITH EDUCATION AND CONSTRUCTION     2,383        

EXPERTS, THE COMMISSION SHALL ADOPT GUIDELINES FOR IDENTIFYING     2,385        

SCHOOL DISTRICTS WITH AN EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM  2,387        

FACILITIES ASSISTANCE.                                                          

      (b)  THE GUIDELINES SHALL INCLUDE APPLICATION FORMS AND      2,389        

INSTRUCTIONS FOR SCHOOL DISTRICTS THAT BELIEVE THEY HAVE AN        2,391        

EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM FACILITIES ASSISTANCE.    2,392        

      (3)  THE COMMISSION SHALL EVALUATE THE CLASSROOM             2,394        

FACILITIES, AND THE NEED FOR REPLACEMENT CLASSROOM FACILITIES      2,395        

FROM THE APPLICATIONS RECEIVED UNDER THIS SECTION.  THE            2,396        

COMMISSION, UTILIZING THE GUIDELINES ADOPTED UNDER DIVISION        2,397        

(B)(2)(a) OF THIS SECTION, SHALL PRIORITIZE THE SCHOOL DISTRICTS   2,400        

TO BE ASSESSED.                                                                 

      NOTWITHSTANDING SECTION 3318.02 OF THE REVISED CODE, THE     2,402        

COMMISSION MAY CONDUCT ON-SITE EVALUATION OF THE SCHOOL DISTRICTS  2,404        

PRIORITIZED UNDER THIS SECTION AND APPROVE AND AWARD FUNDS UNTIL                

SUCH TIME AS ALL FUNDS SET ASIDE UNDER DIVISION (B)(1) OF THIS     2,406        

SECTION HAVE BEEN ENCUMBERED UNDER SECTION 3318.04 OF THE REVISED  2,408        

CODE.                                                                           

      (4)  NOTWITHSTANDING DIVISION (A) OF SECTION 3318.05 OF THE  2,411        

REVISED CODE, THE SCHOOL DISTRICT'S PORTION OF THE BASIC PROJECT   2,413        

COST UNDER THIS SECTION SHALL BE THE "REQUIRED PERCENTAGE OF THE   2,414        

BASIC PROJECT COSTS," AS DEFINED IN DIVISION (K) OF SECTION        2,415        

3318.01 OF THE REVISED CODE.                                       2,416        

      (5)  EXCEPT AS OTHERWISE SPECIFIED IN THIS SECTION, ANY      2,418        

                                                          55     


                                                                 
PROJECT UNDERTAKEN WITH ASSISTANCE UNDER THIS SECTION SHALL        2,419        

COMPLY WITH ALL PROVISIONS OF SECTIONS 3318.01 TO 3318.20 OF THE   2,420        

REVISED CODE.  A SCHOOL DISTRICT MAY RECEIVE ASSISTANCE UNDER      2,422        

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE FOR THE REMAINDER  2,423        

OF THE DISTRICT'S CLASSROOM FACILITIES NEEDS AS ASSESSED UNDER     2,424        

THIS SECTION WHEN THE DISTRICT IS ELIGIBLE FOR SUCH ASSISTANCE     2,425        

PURSUANT TO SECTION 3318.02 OF THE REVISED CODE, BUT ANY           2,426        

CLASSROOM FACILITY CONSTRUCTED WITH ASSISTANCE UNDER THIS SECTION  2,427        

SHALL NOT BE INCLUDED IN A DISTRICT'S PROJECT AT THAT TIME UNLESS  2,428        

THE COMMISSION DETERMINES THE DISTRICT HAS EXPERIENCED THE         2,429        

INCREASED ENROLLMENT SPECIFIED IN DIVISION (B)(1) OF SECTION       2,430        

3318.04 OF THE REVISED CODE.                                                    

      Sec. 3318.38.  (A)  AS USED IN THIS SECTION, "BIG-EIGHT      2,432        

SCHOOL DISTRICT" HAS THE SAME MEANING AS IN SECTION 3314.02 OF     2,433        

THE REVISED CODE.                                                  2,434        

      (B)  THERE IS HEREBY ESTABLISHED THE ACCELERATED URBAN       2,436        

SCHOOL BUILDING ASSISTANCE PROGRAM.  UNDER THE PROGRAM,            2,437        

NOTWITHSTANDING SECTION 3318.02 OF THE REVISED CODE, ANY           2,438        

BIG-EIGHT SCHOOL DISTRICT THAT HAS NOT BEEN APPROVED TO RECEIVE    2,439        

ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE   2,440        

BY JULY 1, 2002, MAY BEGINNING ON THAT DATE APPLY FOR APPROVAL OF  2,441        

AND BE APPROVED FOR SUCH ASSISTANCE.  EXCEPT AS OTHERWISE          2,442        

PROVIDED IN THIS SECTION, ANY PROJECT APPROVED AND UNDERTAKEN      2,444        

PURSUANT TO THIS SECTION SHALL COMPLY WITH ALL PROVISIONS OF                    

SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE.                   2,445        

      THE OHIO SCHOOL FACILITIES COMMISSION SHALL PROVIDE          2,447        

ASSISTANCE TO ANY BIG-EIGHT SCHOOL DISTRICT ELIGIBLE FOR           2,448        

ASSISTANCE UNDER THIS SECTION IN THE FOLLOWING MANNER:             2,449        

      (1)  NOTWITHSTANDING SECTION 3318.02 OF THE REVISED CODE:    2,452        

      (a)  NOT LATER THAN JUNE 30, 2002, THE COMMISSION SHALL      2,455        

CONDUCT AN ON-SITE VISIT AND SHALL ASSESS THE CLASSROOM            2,456        

FACILITIES NEEDS OF EACH BIG-EIGHT SCHOOL DISTRICT ELIGIBLE FOR                 

ASSISTANCE UNDER THIS SECTION;                                     2,457        

      (b)  BEGINNING JULY 1, 2002, ANY BIG-EIGHT SCHOOL DISTRICT   2,460        

                                                          56     


                                                                 
ELIGIBLE FOR ASSISTANCE UNDER THIS SECTION MAY APPLY TO THE        2,461        

COMMISSION FOR CONDITIONAL APPROVAL OF ITS PROJECT AS DETERMINED   2,462        

BY THE ASSESSMENT CONDUCTED UNDER DIVISION (B)(1)(a) OF THIS       2,463        

SECTION.  THE COMMISSION MAY CONDITIONALLY APPROVE THAT PROJECT    2,465        

AND SUBMIT IT TO THE CONTROLLING BOARD FOR APPROVAL PURSUANT TO    2,466        

SECTION 3318.04 OF THE REVISED CODE.                               2,467        

      (2)  IF THE CONTROLLING BOARD APPROVES THE PROJECT OF A      2,469        

BIG-EIGHT SCHOOL DISTRICT ELIGIBLE FOR ASSISTANCE UNDER THIS       2,470        

SECTION, THE COMMISSION AND THE SCHOOL DISTRICT SHALL ENTER INTO   2,471        

AN AGREEMENT AS PRESCRIBED IN SECTION 3318.08 OF THE REVISED       2,472        

CODE.  ANY AGREEMENT EXECUTED PURSUANT TO THIS DIVISION SHALL      2,474        

INCLUDE ANY APPLICABLE SEGMENTATION PROVISIONS AS APPROVED BY THE  2,475        

COMMISSION UNDER DIVISION (B)(3) OF THIS SECTION.                  2,476        

      (3)  NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN        2,478        

SECTIONS 3318.05, 3318.06, AND 3318.08 OF THE REVISED CODE, A      2,479        

BIG-EIGHT SCHOOL DISTRICT ELIGIBLE FOR ASSISTANCE UNDER THIS       2,481        

SECTION MAY WITH THE APPROVAL OF THE COMMISSION OPT TO DIVIDE THE  2,482        

PROJECT AS APPROVED UNDER DIVISION (B)(1)(b) OF THIS SECTION INTO  2,483        

DISCRETE SEGMENTS TO BE COMPLETED SEQUENTIALLY.  ANY PROJECT       2,485        

DIVIDED INTO SEGMENTS SHALL COMPLY WITH ALL OTHER PROVISIONS OF    2,486        

SECTIONS 3318.05, 3318.06, AND 3318.08 OF THE REVISED CODE.        2,487        

      IF A PROJECT IS DIVIDED INTO SEGMENTS UNDER THIS DIVISION:   2,489        

      (a)  THE SCHOOL DISTRICT NEED RAISE ONLY THE AMOUNT EQUAL    2,491        

TO ITS PROPORTIONATE SHARE, AS DETERMINED UNDER SECTION 3318.032   2,492        

OF THE REVISED CODE, OF EACH SEGMENT AT ANY ONE TIME AND MAY SEEK  2,494        

VOTER APPROVAL OF EACH SEGMENT SEPARATELY;                                      

      (b)  THE STATE'S PROPORTIONATE SHARE, AS DETERMINED UNDER    2,496        

SECTION 3318.032 OF THE REVISED CODE, OF ONLY THE SEGMENT WHICH    2,497        

HAS BEEN APPROVED BY THE SCHOOL DISTRICT ELECTORS SHALL BE         2,499        

ENCUMBERED AT ANY ONE TIME.  ENCUMBRANCE OF ADDITIONAL AMOUNTS TO  2,500        

COVER THE STATE'S PROPORTIONATE SHARE OF LATER SEGMENTS SHALL BE   2,501        

APPROVED SEPARATELY AS THEY ARE APPROVED BY THE SCHOOL DISTRICT    2,502        

ELECTORS.  IF THE STATE'S SHARE OF ANY ONE SEGMENT EXCEEDS         2,503        

TWENTY-FIVE MILLION DOLLARS, ENCUMBRANCE OF THAT SHARE IS SUBJECT  2,504        

                                                          57     


                                                                 
TO THE PROVISIONS OF SECTION 3318.11 OF THE REVISED CODE.          2,505        

      (c)  THE ADDITIONAL TAX LEVIED UNDER DIVISION (B) OF         2,508        

SECTION 3318.05 OF THE REVISED CODE SHALL NOT EXTEND BEYOND        2,509        

TWENTY-THREE YEARS AFTER THE LAST SEGMENT OF THE PROJECT IS        2,511        

APPROVED BY THE ELECTORS OF THE SCHOOL DISTRICT.                   2,512        

      Section 2.  That existing sections 133.06, 135.143,          2,514        

3318.01, 3318.011, 3318.021, 3318.03, 3318.032, 3318.04, 3318.05,  2,517        

3318.06, 3318.08, 3318.11, 3318.13, 3318.14, 3318.15, 3318.31,     2,518        

and 3318.36 and section 3318.18 of the Revised Code are hereby     2,519        

repealed.                                                                       

      Section 3.  The board of education of any school district    2,521        

whose electors have approved a bond issue or tax levy for the      2,522        

construction of or additions or major repair to a classroom        2,523        

facility within eighteen months prior to the effective date of     2,524        

this section may apply the expenditures of the proceeds from such  2,525        

bond issue or tax levy as local resources for purposes of the      2,526        

district's participation in the School Building Assistance         2,527        

Expedited Local Partnership Program under section 3318.36 of the   2,528        

Revised Code, as long as the actual construction or repair work    2,529        

authorized under the bond issue or tax levy has not commenced      2,530        

prior to the execution of the agreement between the Ohio School    2,531        

Facilities Commission and the school district board under section  2,533        

3318.36 of the Revised Code and the design of the project          2,534        

authorized by the bond issue or tax levy complies with             2,535        

specifications of the Commission as required under division        2,536        

(B)(3) of section 3318.36 of the Revised Code.                                  

      Section 4.  In fiscal year 2001 only, with the approval of   2,538        

the Controlling Board, the Ohio School Facilities Commission may   2,539        

limit to not less than fifty-five school districts the number of   2,540        

school districts with which the Commission will enter into         2,541        

agreements under the School Building Assistance Expedited Local    2,542        

Partnership Program pursuant to section 3318.36 of the Revised     2,543        

Code, as amended by this act.  The Commission shall adopt          2,544        

reasonable guidelines to determine the school districts with       2,545        

                                                          58     


                                                                 
which it will enter into agreements under that section in the      2,546        

event that it limits the number of such school districts pursuant  2,548        

to this section and more than the specified number of school       2,549        

districts apply for participation in the program in that fiscal    2,550        

year.                                                                           

      Section 5.  Notwithstanding the limitation on additional     2,552        

assistance to five school districts per year as prescribed in      2,553        

division (B)(2) of section 3318.04 of the Revised Code as amended  2,554        

by this act, in fiscal years 2001 and 2002, the Ohio School        2,555        

Facilities Commission may at its discretion provide such           2,556        

additional assistance to more than five districts in any fiscal    2,557        

year, provided any additional district receiving such assistance   2,558        

had approved a tax levy under section 3318.06 of the Revised Code  2,559        

at least ten years prior to the effective date of this section     2,560        

and is located in a percentile that has received assistance under  2,561        

sections 3318.01 to 3318.20 of the Revised Code since May 20,      2,562        

1997, and if the Commission determines that it is necessary in     2,563        

the interest of fairness to provide additional assistance to the   2,564        

district because otherwise the district would be required to wait  2,565        

more than ten years after its previous levy was approved to be     2,566        

considered for additional assistance.                              2,567        

      Section 6.  Any school district whose agreement with the     2,569        

Ohio School Facilities Commission requires that the school         2,570        

district make payments to the state in an amount of one-half the   2,571        

proceeds of the tax required under division (B) of section         2,572        

3318.05 of the Revised Code in any year that the district's        2,573        

adjusted valuation per pupil is above the statewide median         2,574        

adjusted valuation per pupil shall not be required to make any     2,575        

such payments to the state in any years after the effective date   2,576        

of this act.                                                                    

      Section 7.  That Sections 10 and 10.02 of Am. Sub. H.B. 282  2,578        

of the 123rd General Assembly be amended to read as follows:       2,580        

      "Sec. 10.  SFC  SCHOOL FACILITIES COMMISSION                 2,582        

General Revenue Fund                                               2,584        

                                                          59     


                                                                 
GRF 230-428 Lease Rental Payments $   55,400,000 $   70,300,000    2,589        

TOTAL GRF General Revenue Fund    $   55,400,000 $   70,300,000    2,592        

State Special Revenue Fund Group                                   2,595        

5E3 230-644 Operating Expenses    $    2,609,726 $    2,738,277    2,600        

                                                      5,228,277    2,601        

TOTAL SSR State Special Revenue                                    2,602        

   Fund Group                     $    2,609,726 $    2,738,277    2,605        

                                                      5,228,277    2,606        

TOTAL ALL BUDGET FUND GROUPS      $   58,009,726 $   73,038,277    2,609        

                                                     75,528,277    2,610        

      Lease Rental Payments                                        2,613        

      The foregoing appropriation item 230-428, Lease Rental       2,615        

Payments, shall be used by the School Facilities Commission to     2,616        

pay bond service charges on obligations issued pursuant to         2,617        

Chapter 3318. of the Revised Code.                                              

      Operating Expenses                                           2,619        

      The foregoing appropriation item 230-644, Operating          2,621        

Expenses, shall be used by the Ohio School Facilities Commission   2,622        

to carry out its responsibilities pursuant to this section and     2,623        

Chapter 3318. of the Revised Code.                                 2,624        

      Within ten days after the effective date of this section,    2,626        

or as soon as possible thereafter, the Executive Director of the   2,627        

Ohio School Facilities Commission shall certify to the Director    2,628        

of Budget and Management the amount of cash to be transferred      2,629        

from the School Building Assistance Fund (Fund 032) or the Public  2,630        

School Building Fund (Fund 021) to the Ohio School Facilities                   

Commission Fund (Fund 5E3).                                        2,631        

      By July 10, 2000, the Executive Director of the Ohio School  2,633        

Facilities Commission shall certify to the Director of Budget and  2,634        

Management the amount of cash to be transferred from the School    2,635        

Building Assistance Fund (Fund 032) or the Public School Building  2,636        

Fund (Fund 021) to the Ohio School Facilities Commission Fund      2,637        

(Fund 5E3).                                                                     

      Prior Year Encumbrances                                      2,639        

                                                          60     


                                                                 
      At the request of the Director of the Ohio School            2,641        

Facilities Commission, the Director of Budget and Management may   2,642        

cancel encumbrances from fiscal years 1998 and 1999 in CAP-770,    2,643        

School Building Program Assistance, and reestablish such           2,644        

encumbrances or parts of encumbrances to CAP-622, Public School                 

Buildings, for fiscal years 2000 and 2001.  Appropriations to      2,645        

CAP-622 shall not be increased as a result of reestablishing such  2,646        

encumbrances.  An amount equal to the canceled encumbrances in     2,647        

CAP-770 shall be appropriated to CAP-775.                          2,648        

      Disability Access Projects                                   2,650        

      The unencumbered and unallotted balances as of June 30,      2,652        

1999, in appropriation item 230-649, Disability Access Project,    2,653        

are hereby reappropriated.  The unencumbered and unallotted        2,655        

balances of the appropriation at the end of fiscal year 2000 are   2,656        

hereby reappropriated in fiscal year 2001 to fund capital          2,657        

projects pursuant to this section.                                 2,658        

      (A)  As used in this section:                                2,660        

      (1)  "Percentile" means the percentile in which a school     2,662        

district is ranked according to the fiscal year 1998 ranking of    2,663        

school districts with regard to income and property wealth under   2,664        

division (B) of section 3318.011 of the Revised Code.              2,665        

      (2)  "School district" means a city, local, or exempted      2,667        

village school district, but excluding a school district that is   2,668        

one of the state's 21 urban school districts as defined in         2,669        

division (O) of section 3317.02 of the Revised Code, as that       2,670        

section existed prior to July 1, 1998.                             2,671        

      (3)  "Valuation per pupil" means a district's total taxable  2,674        

value as defined in section 3317.02 of the Revised Code divided    2,675        

by the district's ADM as defined in division (A) of section                     

3317.02 of the Revised Code as that section existed prior to July  2,676        

1, 1998.                                                                        

      (B)  The School Facilities Commission shall adopt rules for  2,678        

awarding grants to school districts with a valuation per pupil of  2,680        

less than $200,000, to be used for construction, reconstruction,                

                                                          61     


                                                                 
or renovation projects in classroom facilities, the purpose of     2,681        

which is to improve access to such facilities by physically        2,682        

handicapped persons.  The rules shall include application          2,683        

procedures.  No school district shall be awarded a grant under     2,684        

this section in excess of $100,000.  In addition, any school       2,685        

district shall be required to pay a percentage of the cost of the  2,686        

project or which the grant is being awarded equal to the           2,687        

percentile in which the district is ranked.                        2,688        

      (C)  The School Facilities Commission is hereby authorized   2,690        

to transfer a portion of appropriation item CAP-622, Public        2,692        

School Buildings, contained in Am. Sub. H.B. No. 283 of the 123rd  2,693        

General Assembly, to CAP-777, Disability Access Projects, to       2,695        

provide funds to make payments resulting from the approval of      2,696        

applications for disability access granted received prior to       2,697        

January 1, 1999.  The amounts transferred are hereby                            

appropriated.                                                      2,698        

      Sec. 10.02.  Extreme Environmental Contamination of School   2,700        

Facilities                                                         2,701        

      Notwithstanding the provisions of Section 26 of Am. Sub.     2,703        

H.B. 850 of the 122nd General Assembly regarding eligibility for   2,704        

the Exceptional Needs Pilot Program, the School Facilities         2,706        

Commission may provide assistance under the Exceptional Needs      2,707        

Pilot Program to any school district and not exclusively a school  2,708        

district in the lowest 50 per cent of adjusted valuation per       2,709        

pupil on the fiscal year 1999 ranking of school districts          2,710        

established pursuant to section 3317.02 of the Revised Code, for   2,711        

the purpose of the relocation or replacement of school facilities  2,712        

required as a result of extreme environmental contamination.  IF   2,714        

IN THE ASSESSMENT OF THE SCHOOL DISTRICT'S CLASSROOM FACILITIES                 

NEEDS CONDUCTED UNDER THE EXCEPTIONAL NEEDS PILOT PROGRAM          2,716        

PURSUANT TO SECTION OF AM. SUB. H.B. 850 OF THE 123rd GENERAL      2,719        

ASSEMBLY, THE COMMISSION DETERMINES THAT ALL THE SCHOOL            2,721        

DISTRICT'S CLASSROOM FACILITIES ULTIMATELY WILL REQUIRE            2,722        

REPLACEMENT UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED       2,723        

                                                          62     


                                                                 
CODE, THEN THE COMMISSION MAY UNDERTAKE A DISTRICT-WIDE PROJECT    2,725        

UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE.             2,726        

      The School Facilities Commission shall contract with an      2,728        

independent environmental consultant to conduct a study and to     2,729        

report to the Commission as to the seriousness of the              2,730        

environmental contamination, whether the contamination violates    2,731        

applicable state and federal standards, and whether the            2,732        

facilities are no longer suitable for use as school facilities.                 

The Commission shall then make a determination regarding funding   2,733        

for the relocation or replacement of the school facilities.  If    2,734        

the federal government or other public or private entity provides  2,735        

funds for restitution of costs incurred by the state or school     2,736        

district in the relocation or replacement of the school            2,737        

facilities, the state and the school district shall divide USE     2,739        

such funds on the basis of the relative share of total project     2,740        

cost contributed by each IN EXCESS OF THE SCHOOL DISTRICT'S SHARE  2,742        

TO REFUND THE STATE FOR THE STATE'S CONTRIBUTION TO THE            2,743        

ENVIRONMENTAL CONTAMINATION PORTION OF THE PROJECT.  THE SCHOOL    2,744        

DISTRICT MAY APPLY AN AMOUNT OF SUCH RESTITUTION FUNDS UP TO AN    2,745        

AMOUNT EQUAL TO THE SCHOOL DISTRICT'S PORTION OF THE PROJECT, AS   2,746        

DEFINED BY THE COMMISSION, TOWARD PAYING ITS PORTION OF THAT       2,748        

PROJECT TO REDUCE THE AMOUNT OF BONDS THE SCHOOL DISTRICT          2,749        

OTHERWISE MUST ISSUE TO RECEIVE STATE ASSISTANCE UNDER SECTIONS    2,750        

3318.01 TO 3318.20 OF THE REVISED CODE."                           2,751        

      Section 8.  That existing Sections 10 and 10.02 of Am. Sub.  2,753        

H.B. 282 of the 123rd General Assembly are hereby repealed.        2,755        

      Section 9.  Except as otherwise specifically provided in     2,757        

this act, the codified and uncodified sections of law contained    2,758        

in this act are subject to the referendum.  Therefore, under Ohio  2,760        

Constitution, Article II, Section 1c and section 1.471 of the      2,761        

Revised Code, the sections take effect on the ninety-first day                  

after this act is filed with the Secretary of State.  If,          2,762        

however, a referendum petition is filed against a section, the     2,763        

section, unless rejected at the referendum, takes effect at the    2,764        

                                                          63     


                                                                 
earliest time permitted by law.                                    2,765        

      Section 10.  Sections 7 and 8 of this act are not subject    2,767        

to the referendum.  Therefore, under Ohio Constitution, Article    2,768        

II, Section 1d and section 1.471 of the Revised Code, Sections 7   2,769        

and 8 of this act go into immediate effect when this act becomes   2,771        

law.