REPRESENTATIVES Husted, Clancy, Calvert, Raga, DeWine, Seitz, Setzer, White, Goodman, Gilb, Faber, Webster, Schaffer, Brinkman, Flowers, Callender, Schmidt, Williams, Grendell, Young, Widowfield, Schneider, Wolpert, Blasdel, Allen, Reidelbach, Evans, Cates, Lendrum, Niehaus

To amend sections 3313.375, 3313.534, 3314.011,

1

3314.013, 3314.02, 3314.03, 3314.06, 3314.07,

2

3314.072, 3314.08, 3314.09, 3314.091, 3314.11,

3

3314.13, 3317.03, 3318.38, 3318.50, 3327.01,

4

3327.02, 3365.08, and 4117.101; to amend, for the

5

purpose of adopting a new section number as

6

indicated in parentheses, section 3314.011

7

(3314.16); to enact sections 3314.015, 3314.022,

8

3314.023, 3314.024, 3314.041, 3314.073, 3314.074,

9

3314.081, 3314.111, 3314.17, 3314.30, 3314.31, and

10

3318.53; to repeal section 3314.021 of the Revised

11

Code; and to amend Section 44.05 of Am. Sub. H.B.

12

94 of the 124th General Assembly to expand the

13

sponsorship and area of the state in which

14

community schools may be established, to establish

15

the Community School Classroom Facilities

16

Assistance Program, to establish the Community

17

School Revolving Loan Fund, to make changes in the

18

oversight and management of community schools, and

19

to make other changes in the community school law,

20

and to add a representative from the Auditor of

21

State's Office to the Alternative Education

22

Advisory Council.

23

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

Section 1. That sections 3313.375, 3313.534, 3314.011,	24
3314.013, 3314.02, 3314.03, 3314.06, 3314.07, 3314.072, 3314.08,	25
3314.09, 3314.091, 3314.11, 3314.13, 3317.03, 3318.38, 3318.50,	26
3327.01, 3327.02, 3365.08, and 4117.101 be amended; section	27
3314.011 (3314.16) be amended for the purpose of adopting a new	28
section number as indicated in parentheses; and sections 3314.015,	29
3314.022, 3314.023, 3314.024, 3314.041, 3314.073, 3314.074,	30
3314.081, 3314.111, 3314.17, 3314.30, 3314.31, and 3318.53 of	31
the Revised Code be enacted to read as follows:	32

Sec. 3313.375.  The board of education of a city, local,	33
exempted village, or joint vocational school district or, the	34
governing board of an educational service center, or the governing	35
authority of a community school may enter into a lease-purchase	36
agreement providing for construction; enlarging or other	37
improvement, furnishing, and equipping; lease; and eventual	38
acquisition of a building or improvements to a building for any	39
school district or, educational service center, or community	40
school purpose. The agreement shall provide for a lease for a	41
series of one-year renewable lease terms totaling not more than	42
thirty years. The agreement shall provide that at the end of the	43
series of lease terms provided for in the agreement the title to	44
the leased property shall be vested in the school district or	45
educational service center, if all obligations of the school	46
district or, educational service center, or community school	47
provided for in the agreement have been satisfied. The agreement	48
may, in addition to the rental payments, require the school	49
district or, educational service center, or community school to	50
pay the lessor a lump-sum amount as a condition of obtaining title	51
to the leased property. In conjunction with the agreement, a	52
school district board of education or, an educational service	53
center governing board, or a governing authority of a community	54
school may grant leases, easements, or licenses for underlying	55
land or facilities under the board's control for terms not	56
exceeding five years beyond the final renewal term of the	57
lease-purchase agreement entered into pursuant to this section.	58
Payments under the agreement may be deemed to be, and paid as,	59
current operating expenses.	60

The obligations under a lease-purchase agreement entered into	61
pursuant to this section shall not be considered to be net	62
indebtedness of a school district under section 133.06 of the	63
Revised Code.	64

Sec. 3313.534.  No later than July 1, 1998, the board of	65
education of each city, exempted village, and local school	66
district shall adopt a policy of zero tolerance for violent,	67
disruptive, or inappropriate behavior, including excessive	68
truancy, and establish strategies to address such behavior that	69
range from prevention to intervention.	70

No later than July 1, 1999, each of the big eight school	71
districts, as defined in section 3314.02 of the Revised Code,	72
shall establish under section 3313.533 of the Revised Code at	73
least one alternative school to meet the educational needs of	74
students with severe discipline problems, including, but not	75
limited to, excessive truancy, excessive disruption in the	76
classroom, and multiple suspensions or expulsions. Any other	77
school district that attains after that date a significantly	78
substandard graduation rate, as defined by the department of	79
education, shall also establish such an alternative school under	80
that section.	81

As used in this section, "big eight school district" means a	82
school district that for fiscal year 1997 had both of the	83
following:	84

(A) A percentage of children residing in the district and	85
participating in the predecessor of Ohio works first greater than	86
thirty per cent, as reported pursuant to section 3317.10 of the	87
Revised Code;	88

(B) An average daily membership greater than twelve	89
thousand, as reported pursuant to former division (A) of section	90
3317.03 of the Revised Code.	91

Sec. 3314.013.  (A)(1) Until July 1, 2000, no more than	92
seventy-five contracts between start-up schools and the state	93
board of education may be in effect outside the pilot project area	94
at any time under this chapter.	95

(2) After July 1, 2000, and until July 1, 2001, no more than	96
one hundred twenty-five contracts between start-up schools and the	97
state board of education may be in effect outside the pilot	98
project area at any time under this chapter.	99

(3) For two years after the effective date of this	100
amendment, no more than two hundred twenty-five contracts between	101
start-up schools and all sponsors combined may be in effect under	102
this chapter.	103

(B) Within twenty-four hours of a request by any person, the	104
superintendent of public instruction shall indicate the number of	105
preliminary agreements for state board-sponsored start-up schools	106
currently outstanding and the number of contracts for these	107
schools in effect at the time of the request.	108

(C) It is the intent of the general assembly to consider	109
whether to provide limitations on the number of start-up community	110
schools after July 1, 2001, following its examination of the	111
results of the studies by the legislative office of education	112
oversight required under sectionSection 50.39 of Am. Sub. H.B.	113
No. 215 of the 122nd general assembly and sectionSection 50.52.2	114
of Am. Sub. H.B. No. 215 of the 122nd general assembly, as amended	115
by Am. Sub. H.B. No. 770 of the 122nd general assembly.	116

Sec.  3314.015.  (A) The department of education shall be	117
responsible for the oversight of sponsors of the community schools	118
established under this chapter and shall provide technical	119
assistance to schools and sponsors in their compliance with	120
applicable laws and the terms of the contracts entered into under	121
section 3314.03 of the Revised Code and in the development and	122
start-up activities of those schools. In carrying out its duties	123
under this section, the department shall do all of the following:	124

(1) In providing technical assistance to proposing parties,	125
governing authorities, and sponsors, conduct training sessions and	126
distribute informational materials;	127

(2) Approve entities to be sponsors of community schools and	128
monitor the effectiveness of those sponsors in their oversight of	129
the schools with which they have contracted;	130

(3) By December thirty-first of each year, issue a report	131
to the governor, the speaker of the house of representatives, the	132
president of the senate, and the chairpersons of the house and	133
senate committees principally responsible for education matters	134
regarding the effectiveness of academic programs, operations, and	135
legal compliance and of the financial condition of all community	136
schools established under this chapter;	137

(4) From time to time, make legislative recommendations to	138
the general assembly designed to enhance the operation and	139
performance of community schools.	140

(B) No entity listed in division (C)(1) of section	141
3314.02 of the Revised Code shall enter into a preliminary	142
agreement under division (C)(2) of section 3314.02 of the Revised	143
Code until it has received approval from the department of	144
education to sponsor community schools under this chapter and has	145
entered into a written agreement with the department regarding the	146
manner in which the entity will conduct such sponsorship. The	147
department shall adopt in accordance with Chapter 119. of the	148
Revised Code rules containing criteria, procedures, and deadlines	149
for processing applications for such approval, for oversight of	150
sponsors, for revocation of the approval of sponsors, and for	151
entering into written agreements with sponsors. The rules shall	152
require an entity to submit evidence of the entity's ability and	153
willingness to comply with the provisions of division (D) of	154
section 3314.03 of the Revised Code.	155

An entity that is approved to sponsor community schools may	156
enter into any number of preliminary agreements and sponsor any	157
number of schools, provided each school and the contract for	158
sponsorship meets the requirements of this chapter.	159

(C) If at any time the state board of education finds that a	160
sponsor is not in compliance or is no longer willing to comply	161
with its contract with any community school or with the	162
department's rules for sponsorship, the state board or designee	163
shall conduct a hearing in accordance with Chapter 119. of the	164
Revised Code on that matter. If after the hearing, the state	165
board or designee has confirmed the original finding, the state	166
board or designee shall revoke the sponsor's approval to sponsor	167
community schools and shall assume the sponsorship of any schools	168
with which the sponsor has contracted until the earlier of the	169
expiration of two school years or until a new sponsor as described	170
in division (C)(1) of section 3314.02 of the Revised Code is	171
secured by the school's governing authority. The department may	172
extend the term of the contract in the case of a school for which	173
it has assumed sponsorship under this division as necessary to	174
accommodate the term of the department's authorization to sponsor	175
the school specified in this division.	176

(D) The decision of the department to disapprove an entity	177
for sponsorship of a community school or to revoke approval for	178
such sponsorship, as provided in division (C) of this section, may	179
be appealed by the entity in accordance with section 119.12 of the	180
Revised Code.	181

(E) In carrying out its duties under this chapter, the	182
department shall not impose requirements on community schools or	183
their sponsors that are not permitted by law or duly adopted	184
rules.	185

Sec. 3314.02.  (A) As used in this chapter:

186

(1) "Sponsor" means a publican entity listed in division	187
(C)(1) of this section, which has been approved by the department	188
of education to sponsor community schools and with which the	189
governing authority of the proposed community school enters into a	190
contract pursuant to this section.	191

(2) "Pilot project area" means the school districts included	192
in the territory of the former community school pilot project	193
established by former Section 50.52 of Am. Sub. H.B. No. 215 of	194
the 122nd general assembly.	195

(3) "Challenged school district" means any of the following:

196

(a) A school district that is part of the pilot project	197
area;	198

(b) A school district that is in a state of academic	199
emergency under section 3302.03 of the Revised Code;	200

(c) A big eight school district;

201

(d) An urban school district.

202

(4) "Big eight school district" means a school district that	203
for fiscal year 1997 had both of the following:	204

(a) A percentage of children residing in the district and	205
participating in the predecessor of Ohio works first greater than	206
thirty per cent, as reported pursuant to section 3317.10 of the	207
Revised Code;	208

(b) An average daily membership greater than twelve	209
thousand, as reported pursuant to former division (A) of section	210
3317.03 of the Revised Code.	211

(5) "New start-up school" means a community school other than	212
one created by converting all or part of an existing public	213
school, as designated in the school's contract pursuant to	214
division (A)(17) of section 3314.03 of the Revised Code.	215

(6) "Urban school district" means one of the state's	216
twenty-one urban school districts as defined in division (O) of	217
section 3317.02 of the Revised Code as that section existed prior	218
to July 1, 1998.	219

(B) Any person or group of individuals may initially propose	220
under this division the conversion of all or a portion of a public	221
school to a community school. The proposal shall be made to the	222
board of education of the city, local, or exempted village school	223
district in which the public school is proposed to be converted.	224
Upon receipt of a proposal, a board may enter into a preliminary	225
agreement with the person or group proposing the conversion of the	226
public school, indicating the intention of the board of education	227
to support the conversion to a community school. A proposing	228
person or group that has a preliminary agreement under this	229
division may proceed to finalize plans for the school, establish a	230
governing authority for the school, and negotiate a contract with	231
the board of education. Provided the proposing person or group	232
adheres to the preliminary agreement and all provisions of this	233
chapter, the board of education shall negotiate in good faith to	234
enter into a contract in accordance with section 3314.03 of the	235
Revised Code and division (C) of this section.	236

(C)(1) Any person or group of individuals may propose under	237
this division the establishment of a new start-up school to be	238
located in a challengedany school district. The proposal may be	239
made to any of the following public entities:	240

(a) The board of education of the district in which the	241
school is proposed to be located;	242

(b) The board of education of any joint vocational school	243
district with territory in the county in which is located the	244
majority of the territory of the district in which the school is	245
proposed to be located;	246

(c) The board of education of any other city, local, or	247
exempted village school district having territory in the same	248
county where the district in which the school is proposed to be	249
located has the major portion of its territory;	250

(d) The state board of education;

251

(e) If the school is proposed to be located in the pilot	252
project area, the governing board of theany educational service	253
center serving the county containing the majority of the territory	254
of the pilot project area;	255

(f) If the school is proposed to be located in the pilot	256
project area, a sponsoring authority designated by the board of	257
trustees of a state university located in the pilot project area,	258
or the board of trustees itself(e) Any qualified tax-exempt	259
entity under section 501(c)(3) of the Internal Revenue Code that	260
has been in operation for at least five years prior to applying to	261
be a community school sponsor or has assets of at least five	262
hundred thousand dollars.	263

The publicAny entity described in this division may enter	264
into a preliminary agreement pursuant to division (C)(2) of this	265
section with the proposing person or group.	266

(2) A preliminary agreement indicates the intention of a	267
publican entity described in division (C)(1) of this section to	268
sponsor the community school. A proposing person or group that	269
has such a preliminary agreement may proceed to finalize plans for	270
the school, establish a governing authority as described in	271
division (E) of this section for the school, and negotiate a	272
contract with the public entity. Provided the proposing person or	273
group adheres to the preliminary agreement and all provisions of	274
this chapter, the public entity shall negotiate in good faith to	275
enter into a contract in accordance with section 3314.03 of the	276
Revised Code.	277

(3) A new start-up school that is established in a school	278
district while that district is in a state of academic emergency	279
under section 3302.03 of the Revised Code may continue in	280
existence once the school district is no longer in a state of	281
academic emergency, provided there is a valid contract between the	282
school and a sponsor.	283

A copy of every preliminary agreement entered into under this	284
division shall be filed with the superintendent of public	285
instruction.	286

(D) A majority vote of the board of a sponsoring school	287
district boardentity and a majority vote of the members of the	288
governing authority of a community school shall be required to	289
adopt a contract and convert the public school to a community	290
school or establish the new start-up school. An unlimited number	291
of community schools may be established in any school district	292
provided that a contract is entered into for each community school	293
pursuant to this chapter.	294

(E) Each new start-up community school established under	295
this chapter shall be under the direction of a governing authority	296
which shall consist of a board of not less than five individuals	297
who are not owners or employees of any for-profit firm that	298
operates or manages a school for the governing authority.	299

No person shall serve on the governing authority or	300
operate the community school under contract with the governing	301
authority so long as the person owes the state any money or is in	302
a dispute over whether the person owes the state any money	303
concerning the operation of a community school that has closed.	304

Sec. 3314.022. The governing authority of any community	305
school established under this chapter may contract with the	306
governing authority of another community school, the board of	307
education of a school district, the governing board of an	308
educational service center, a county MR/DD board, or the	309
administrative authority of a nonpublic school for provision of	310
services for any disabled student enrolled at the school. Any	311
school district board of education or educational service center	312
governing board shall negotiate with a community school governing	313
authority that seeks to contract for the provision of services for	314
a disabled student under this section in the same manner as it	315
would with the board of education of a school district that seeks	316
to contract for such services.	317

Sec. 3314.023. In order to provide monitoring and technical	318
assistance, the sponsor of a community school shall be located or	319
have representatives located within fifty miles of the location of	320
the community school.	321

Sec. 3314.024. A management company that provides services to	322
a community school that amounts to more than twenty per cent of	323
the annual gross revenues of the school shall provide a detailed	324
accounting including the nature and costs of the services it	325
provides to the community school. This information shall be	326
included in the footnotes of the financial statements of the	327
school and be subject to audit during the course of the regular	328
financial audit of the community school.	329

Sec. 3314.03. (A)A copy of every contract entered into	330
under this section shall be filed with the superintendent of	331
public instruction.	332

(A) Each contract entered into under section 3314.02 of the	333
Revised Code between a sponsor and the governing authority of a	334
community school shall specify the following:	335

(1) That the school shall be established as a nonprofit	336
corporation established under Chapter 1702. of the Revised Code;	337

(2) The education program of the school, including the	338
school's mission, the characteristics of the students the school	339
is expected to attract, the ages and grades of students, and the	340
focus of the curriculum;	341

(3) The academic goals to be achieved and the method of	342
measurement that will be used to determine progress toward those	343
goals, which shall include the statewide achievement tests;	344

(4) Performance standards by which the success of the school	345
will be evaluated by the sponsor;	346

(5) The admission standards of section 3314.06 of the	347
Revised Code;	348

(6)(a) Dismissal procedures;

349

(b) A requirement that the governing authority adopt an	350
attendance policy that includes a procedure for automatically	351
withdrawing a student from the school if the student without a	352
legitimate excuse fails to participate in one hundred five	353
consecutive hours of the learning opportunities offered to the	354
student. Such a policy shall provide for withdrawing the student	355
by the end of the thirtieth day after the student has failed to	356
participate as required under this division.	357

(7) The ways by which the school will achieve racial and	358
ethnic balance reflective of the community it serves;	359

(8) Requirements and procedures for financial audits by the	360
auditor of state. The contract shall require financial records of	361
the school to be maintained in the same manner as are financial	362
records of school districts, pursuant to rules of the auditor of	363
state, and the audits shall be conducted in accordance with	364
section 117.10 of the Revised Code.	365

(9) The facilities to be used and their locations;

366

(10) Qualifications of teachers, including a requirement	367
that the school's classroom teachers be licensed in accordance	368
with sections 3319.22 to 3319.31 of the Revised Code, except that	369
a community school may engage noncertificated persons to teach up	370
to twelve hours per week pursuant to section 3319.301 of the	371
Revised Code;	372

(11) That the school will comply with the following	373
requirements:	374

(a) The school will provide learning opportunities to a	375
minimum of twenty-five students for a minimum of nine hundred	376
twenty hours per school year;	377

(b) The governing authority will purchase liability	378
insurance, or otherwise provide for the potential liability of the	379
school;	380

(c) The school will be nonsectarian in its programs,	381
admission policies, employment practices, and all other	382
operations, and will not be operated by a sectarian school or	383
religious institution;	384

(d) The school will comply with divisions (A), (B), and (C)	385
of section 3301.0715 and sections 9.90, 9.91, 109.65, 121.22,	386
149.43, 2151.358, 2151.421, 2313.18, 3301.0710, 3301.0711,	387
3301.0712, 3301.0714, 3313.50, 3313.643, 3313.66, 3313.661,	388
3313.662, 3313.67, 3313.672, 3313.673, 3313.69, 3313.71, 3313.716,	389
3313.80, 3313.96, 3319.321, 3319.39, 3321.01, 3327.10, 4111.17,	390
and 4113.52, and 5705.391 and Chapters 117., 1347., 2744., 3365.,	391
4112., 4123., 4141., and 4167. of the Revised Code as if it were a	392
school district and will comply with section 3301.0714 of the	393
Revised Code in the manner specified in section 3314.17 of the	394
Revised Code;	395

(e) The school shall comply with Chapter 102. of the Revised	396
Code except that nothing in that chapter shall prohibit a member	397
of the school's governing board from also being an employee of the	398
school and nothing in that chapter or section 2921.42 of the	399
Revised Code shall prohibit a member of the school's governing	400
board from having an interest in a contract into which the	401
governing board enters that is not a contract with a for-profit	402
firm for the operation or management of a school under the	403
auspices of the governing authority;	404

(f) The school will comply with sections 3313.61, 3313.611,	405
and 3313.614 of the Revised Code, except that the requirement in	406
sections 3313.61 and 3313.611 of the Revised Code that a person	407
must successfully complete the curriculum in any high school prior	408
to receiving a high school diploma may be met by completing the	409
curriculum adopted by the governing authority of the community	410
school rather than the curriculum specified in Title XXXIII of the	411
Revised Code or any rules of the state board of education;	412

(g) The school governing authority will submit an annual	413
within four months after the end of each school year a report of	414
its activities and progress in meeting the goals and standards of	415
divisions (A)(3) and (4) of this section and its financial status	416
to the sponsor, the parents of all students enrolled in the	417
school, and the legislative office of education oversight. The	418
school will collect and provide any data that the legislative	419
office of education oversight requests in furtherance of any study	420
or research that the general assembly requires the office to	421
conduct, including the studies required under Section 50.39 of Am.	422
Sub. H.B. 215 of the 122nd general assembly and Section 50.52.2 of	423
Am. Sub. H.B. 215 of the 122nd general assembly, as amended.	424

(12) Arrangements for providing health and other benefits to	425
employees;	426

(13) The length of the contract, which shall begin at the	427
beginning of an academic year and shall not exceed five years,	428
unless extended pursuant to division (E) of this section;	429

(14) The governing authority of the school, which shall be	430
responsible for carrying out the provisions of the contract;	431

(15) A financial plan detailing an estimated school budget	432
for each year of the period of the contract and specifying the	433
total estimated per pupil expenditure amount for each such year.	434
The plan shall specify for each year the base formula amount that	435
will be used for purposes of funding calculations under section	436
3314.08 of the Revised Code. This base formula amount for any	437
year shall not exceed the formula amount defined under section	438
3317.02 of the Revised Code. The plan may also specify for any	439
year a percentage figure to be used for reducing the per pupil	440
amount of disadvantaged pupil impact aid calculated pursuant to	441
section 3317.029 of the Revised Code the school is to receive that	442
year under section 3314.08 of the Revised Code.	443

(16) Requirements and procedures regarding the disposition	444
of employees of the school in the event the contract is terminated	445
or not renewed pursuant to section 3314.07 of the Revised Code;	446

(17) Whether the school is to be created by converting all	447
or part of an existing public school or is to be a new start-up	448
school, and if it is a converted public school, specification of	449
any duties or responsibilities of an employer that the board of	450
education that operated the school before conversion is delegating	451
to the governing board of the community school with respect to all	452
or any specified group of employees provided the delegation is not	453
prohibited by a collective bargaining agreement applicable to such	454
employees;	455

(18) Provisions establishing procedures for resolving	456
disputes or differences of opinion between the sponsor and the	457
governing authority of the community school;	458

(19) A provision requiring the governing authority to adopt	459
a policy regarding the admission of students who reside outside	460
the district in which the school is located. That policy shall	461
comply with the admissions procedures specified in section 3314.06	462
of the Revised Code and, at the sole discretion of the authority,	463
shall do one of the following:	464

(a) Prohibit the enrollment of students who reside outside	465
the district in which the school is located;	466

(b) Permit the enrollment of students who reside in	467
districts adjacent to the district in which the school is located;	468

(c) Permit the enrollment of students who reside in any	469
other district in the state.	470

(20) A provision recognizing the authority of the department	471
of education to take over the sponsorship of the school in	472
accordance with the provisions of division (C) of section 3314.015	473
of the Revised Code;	474

(21) A provision recognizing the sponsor's authority to	475
assume the operation of a school under the conditions specified in	476
division (B) of section 3314.073 of the Revised Code;	477

(22) A provision recognizing the authority of the	478
department of education as the community school oversight body to	479
suspend the operation of the school under section 3314.072 of the	480
Revised Code if the department has evidence of conditions or	481
violations of law at the school that pose an imminent danger to	482
the health and safety of the school's students and employees and	483
the sponsor refuses to take such action;	484

(23) A description of the learning opportunities that will	485
be offered to students including both classroom-based and	486
non-classroom-based learning opportunities that is in compliance	487
with criteria for student participation established by the	488
department under division (L)(2) of section 3314.08 of the Revised	489
Code.	490

(B) The community school shall also submit to the sponsor a	491
comprehensive plan for the school. The plan shall specify the	492
following:	493

(1) The process by which the governing authority of the	494
school will be selected in the future;	495

(2) The management and administration of the school;

496

(3) If the community school is a currently existing public	497
school, alternative arrangements for current public school	498
students who choose not to attend the school and teachers who	499
choose not to teach in the school after conversion;	500

(4) The instructional program and educational philosophy of	501
the school;	502

(5) Internal financial controls.

503

(C) A contract entered into under section 3314.02 of the	504
Revised Code between a sponsor and the governing authority of a	505
community school may provide for the community school governing	506
authority to make payments to the sponsor, which is hereby	507
authorized to receive such payments as set forth in the contract	508
between the governing authority and the sponsor. The total amount	509
of such payments for oversight and monitoring of the school shall	510
not exceed three per cent of the total amount of payments for	511
operating expenses that school receives from the state.	512

(D) The contract shall specify the duties of the sponsor	513
which shall be in accordance with the written agreement entered	514
into with the department of education under division (B) of	515
section 3314.015 of the Revised Code and shall include the	516
following:	517

(1) Monitor the community school's compliance with all laws	518
applicable to the school and with the terms of the contract;	519

(2) Monitor and evaluate the academic and fiscal	520
performance and the organization and operation of the community	521
school on at least an annual basis;	522

(3) Report on an annual basis the results of the evaluation	523
conducted under division (D)(2) of this section to the department	524
of education and to the parents of students enrolled in the	525
community school;	526

(4) Provide technical assistance to the community school	527
in complying with laws applicable to the school and terms of the	528
contract;	529

(5) Take steps to intervene in the school's operation to	530
correct problems in the school's overall performance, declare the	531
school to be on probationary status pursuant to section 3314.073	532
of the Revised Code, suspend the operation of the school pursuant	533
to section 3314.072 of the Revised Code, or terminate the contract	534
of the school pursuant to section 3314.07 of the Revised Code as	535
determined necessary by the sponsor;	536

(6) Have in place a plan of action to be undertaken in the	537
event the community school experiences financial difficulties or	538
closes prior to the end of a school year.	539

(E) At any time during the course of the term of a	540
contract entered into under this section, the sponsor of a	541
community school may, with the approval of the governing authority	542
of the school, extend the duration of the term of that contract to	543
a period of time determined by the sponsor, but not ending earlier	544
than the end of any school year if the sponsor finds that the	545
school's compliance with applicable laws and terms of the contract	546
and the school's progress in meeting the academic goals prescribed	547
in the contract are satisfactory. Any contract that is extended	548
under this division remains subject to the provisions of sections	549
3314.07, 3314.072, and 3314.073 of the Revised Code.	550

Sec. 3314.041.  The governing authority of each community	551
school and any operator of such school shall place in a	552
conspicuous manner in all documents that are distributed to	553
parents of students of the school or to the general public the	554
following statement:	555

"The .............. (here fill in name of the school) school	556
is a community school established under Chapter 3314. of the	557
Revised Code. The school is a public school and students enrolled	558
in and attending the school are required to take proficiency tests	559
and other examinations prescribed by law. In addition, there may	560
be other requirements for students at the school that are	561
prescribed by law. Students who have been excused from the	562
compulsory attendance law for the purpose of home education as	563
defined by the Administrative Code shall no longer be excused for	564
that purpose upon their enrollment in a community school. For more	565
information about this matter contact the school administration or	566
the Ohio Department of Education."	567

Sec. 3314.06.  The governing authority of each community	568
school established under this chapter shall adopt admission	569
procedures that specify the following:	570

(A) That except as otherwise provided in this section,	571
admission to the school shall be open to any individual age five	572
to twenty-two entitled to attend school pursuant to section	573
3313.64 or 3313.65 of the Revised Code in a school district in the	574
state.	575

(B)(1) That admission to the school may be limited to	576
students who have attained a specific grade level or are within a	577
specific age group; to students that meet a definition of	578
"at-risk," as defined in the contract; or to residents of a	579
specific geographic area within the district, as defined in the	580
contract.	581

(2) For purposes of division (B)(1) of this section,	582
"at-risk" students may include those students identified as gifted	583
students under section 3324.03 of the Revised Code.	584

(C) Whether enrollment is limited to students who reside in	585
the district in which the school is located or is open to	586
residents of other districts, as provided in the policy adopted	587
pursuant to the contract.	588

(D)(1) That there will be no discrimination in the admission	589
of students to the school on the basis of race, creed, color,	590
handicapping condition, or sex; and that,except that the	591
governing authority may establish single-gender schools for the	592
purpose described in division (G) of this section provided	593
comparable facilities and learning opportunities are offered for	594
both boys and girls. Such comparable facilities and opportunities	595
may be offered for each sex at separate locations.	596

(2) That upon admission of any handicapped student, the	597
community school will comply with all federal and state laws	598
regarding the education of handicapped students.	599

(E) That the school may not limit admission to students on	600
the basis of intellectual ability, measures of achievement or	601
aptitude, or athletic ability, except that a school may limit its	602
enrollment to students as described in division (B)(2) of this	603
section.	604

(F) That the community school will admit the number of	605
students that does not exceed the capacity of the school's	606
programs, classes, grade levels, or facilities.	607

(G) That the purpose of single-gender schools that are	608
established shall be to take advantage of the academic benefits	609
some students realize from single-gender instruction and	610
facilities and to offer students and parents residing in the	611
district the option of a single-gender education.	612

(H) That, except as otherwise provided under division (B) of	613
this section, if the number of applicants exceeds the capacity	614
restrictions of division (F) of this section, students shall be	615
admitted by lot from all those submitting applications, except	616
preference shall be given to students attending the school the	617
previous year and to students who reside in the district in which	618
the school is located. Preference may be given to siblings of	619
students attending the school the previous year.	620

Notwithstanding divisions (A) through (G)(H) of this section,	621
in the event the racial composition of the enrollment of the	622
community school is violative of a federal desegregation order,	623
the community school shall take any and all corrective measures to	624
comply with the desegregation order.	625

Sec. 3314.07.  (A) The expiration of the contract for a	626
community school between a sponsor and a school shall be the date	627
provided in the contract. A successor contract may be entered	628
into unless the contract is terminated or not renewed pursuant to	629
this section.	630

(B)(1) A sponsor may choose not to renew a contract at its	631
expiration or may choose to terminate a contract prior to its	632
expiration for any of the following reasons:	633

(a) Failure to meet student performance requirements stated	634
in the contract;	635

(b) Failure to meet generally accepted standards of fiscal	636
management;	637

(c) Violation of any provision of the contract or applicable	638
state or federal law;	639

(d) Other good cause.

640

(2) A sponsor may choose to terminate a contract prior to its	641
expiration if the sponsor has suspended the operation of the	642
contract under section 3314.072 of the Revised Codetermination of	643
a contract under this section shall be effective only at the	644
conclusion of a school year.	645

(3) At least ninety days prior to the termination or	646
nonrenewal of a contract, the sponsor shall notify the school of	647
the proposed action in writing. The notice shall include the	648
reasons for the proposed action in detail, the effective date of	649
the termination or nonrenewal, and a statement that the school	650
may, within fourteen days of receiving the notice, request an	651
informal hearing before the sponsor. Such request must be in	652
writing. The informal hearing shall be held within seventy days of	653
the receipt of a request for the hearing. Promptly following the	654
informal hearing, the sponsor shall issue a written decision	655
either affirming or rescinding the decision to terminate or not	656
renew the contract.	657

(4) A decision by the sponsor to terminate a contract may be	658
appealed to the state board of education. The decision by the	659
state board pertaining to an appeal under this division is final.	660
If the sponsor is the state board, its decision to terminate a	661
contract under division (B)(4)(3) of this section shall be final.	662

(5) The termination of a contract under this section shall	663
be effective upon the occurrence of the later of the following	664
events:	665

(a) Ninety days following the date the sponsor notifies the	666
school of its decision to terminate the contract as prescribed in	667
division (B)(3) of this section;	668

(b) If an informal hearing is requested under division	669
(B)(3) of this section and as a result of that hearing the sponsor	670
affirms its decision to terminate the contract, the effective date	671
of the termination specified in the notice issued under division	672
(B)(3) of this section, or if that decision is appealed to the	673
state board under division (B)(4) of this section and the state	674
board affirms that decision, the date established in the	675
resolution of the state board affirming the sponsor's decision.	676

(C) A child attending a community school whose contract has	677
been terminated, nonrenewed, or suspended or that closes for any	678
reason shall be admitted to the schools of the district in which	679
the child is entitled to attend under section 3313.64 or 3313.65	680
of the Revised Code. Any deadlines established for the purpose of	681
admitting students under section 3313.97 or 3313.98 shall be	682
waived for students to whom this division pertains.	683

(D) A sponsor of a community school and the officers,	684
directors, or employees of such a sponsor are not liable in	685
damages in a tort or other civil action for harm allegedly arising	686
from either of the following:	687

(1) A failure of the community school or any of its	688
officers, directors, or employees to perform any statutory or	689
common law duty or responsibility or any other legal obligation;	690

(2) An action or omission of the community school or any of	691
its officers, directors, or employees that results in harm.	692

(E) As used in this section:

693

(1) "Harm" means injury, death, or loss to person or	694
property.	695

(2) "Tort action" means a civil action for damages for	696
injury, death, or loss to person or property other than a civil	697
action for damages for a breach of contract or another agreement	698
between persons.	699

Sec. 3314.072. The provisions of this section are enacted to	700
promote the public health, safety, and welfare by establishing	701
procedures under which the governing authorities of community	702
schools established under this chapter will be held accountable	703
for their compliance with the terms of the contracts they enter	704
into with their school's sponsors and the law relating to the	705
school's operation. Suspension of the operation of a school	706
imposed under this section is intended to encourage the governing	707
authority's compliance with the terms of the school's contract and	708
the law and is not intended to be an alteration of the terms of	709
that contract.	710

(A) If a sponsor of a community school established under	711
this chapter suspends the operation of that school pursuant to	712
procedures set forth in this section, the governing authority	713
shall not operate that school while the suspension is in effect.	714
Any such suspension shall remain in effect until the sponsor	715
notifies the governing authority that it is no longer in effect.	716
The contract of a school of which operation is suspended under	717
this section also may be subject to termination or nonrenewal	718
under section 3314.07 of the Revised Code.	719

(B) If at any time the sponsor of a community school	720
established under this chapter determines that conditions at the	721
school do not comply with a health and safety standard established	722
by law for school buildings, the sponsor shall immediately suspend	723
the operation of the school pursuant to procedures set forth in	724
division (D) of this section. If the sponsor fails to take action	725
to suspend the operation of a school to which this division	726
applies, the department of education may take such action.	727

(C)(1) For any of the reasons prescribed in division	728
(B)(1)(a) to (d) of section 3314.07 of the Revised Code, the	729
sponsor of a community school established under this chapter may	730
suspend the operation of the school only if it first issues to the	731
governing authority notice of the sponsor's intent to suspend the	732
operation of the contract. Such notice shall explain the reasons	733
for the sponsor's intent to suspend operation of the contract and	734
shall provide the school's governing authority with five business	735
days to submit to the sponsor a proposal to remedy the conditions	736
cited as reasons for the suspension.	737

(2) The sponsor shall promptly review any proposed remedy	738
timely submitted by the governing authority and either approve or	739
disapprove the remedy. If the sponsor disapproves the remedy	740
proposed by the governing authority, if the governing authority	741
fails to submit a proposed remedy in the manner prescribed by the	742
sponsor, or if the governing authority fails to implement the	743
remedy as approved by the sponsor, the sponsor may suspend	744
operation of the school pursuant to procedures set forth in	745
division (D) of this section.	746

(D)(1) If division (B) of this section applies or if the	747
sponsor of a community school established under this chapter	748
decides to suspend the operation of a school as permitted in	749
division (C)(2) of this section, the sponsor shall promptly send	750
written notice to the governing authority stating that the	751
operation of the school is immediately suspended, and explaining	752
the specific reasons for the suspension. The notice shall state	753
that the governing authority has five business days to submit a	754
proposed remedy to the conditions cited as reasons for the	755
suspension or face potential contract termination.	756

(2) Upon receipt of the notice of suspension prescribed	757
under division (D)(1) of this section, the governing authority	758
shall immediately notify the employees of the school and the	759
parents of the students enrolled in the school of the suspension	760
and the reasons therefore, and shall cease all school operations	761
on the next business day.	762

Sec. 3314.073.  (A) In lieu of termination of a contract or	763
suspension of the operation of a school as provided for in section	764
3314.07 and 3314.072 of the Revised Code, respectively, after	765
consultation with the governing authority of a community school	766
under its sponsorship, if a sponsor finds that any of the	767
conditions prescribed in division (B)(1) of section 3314.07 of the	768
Revised Code apply to the school, the sponsor may declare in	769
written notice to the governing authority that the school is in a	770
probationary status which shall not extend beyond the end of the	771
current school year. The notice shall specify the conditions that	772
warrant probationary status. The sponsor may declare a school to	773
be in such status only if it has received from the governing	774
authority reasonable assurances to the satisfaction of the sponsor	775
that the governing authority can and will take actions necessary	776
to remedy the conditions that have warranted such probationary	777
status as specified by the sponsor.	778

(B) The sponsor shall monitor the actions taken by the	779
governing authority to remedy the conditions that have warranted	780
probationary status as specified by the sponsor and may take over	781
the operation of the school as provided in the contract or may	782
take steps to terminate the contract with the governing authority	783
or to suspend operation of the school if the sponsor at any time	784
finds that the governing authority is no longer able or willing to	785
remedy those conditions to the satisfaction of the sponsor.	786

Sec. 3314.074. If any community school established under this	787
chapter permanently closes and ceases its operation as a community	788
school, the assets of that school shall be distributed first to	789
private creditors, employees of the school, and the retirement	790
funds of employees of the school who are owed compensation and	791
then any remaining funds shall be paid to the state treasury to	792
the credit of the general revenue fund.	793

Sec. 3314.08.  (A) As used in this section:

794

(1) "Base formula amount" means the amount specified as such	795
in a community school's financial plan for a school year pursuant	796
to division (A)(15) of section 3314.03 of the Revised Code.	797

(2) "Cost-of-doing-business factor" has the same meaning as	798
in section 3317.02 of the Revised Code.	799

(3) "IEP" means an individualized education program as	800
defined in section 3323.01 of the Revised Code.	801

(4) "Applicable special education weight" means the multiple	802
specified in section 3317.013 of the Revised Code for a handicap	803
described in that section.	804

(5) "Applicable vocational education weight" means:

805

(a) For a student enrolled in vocational education programs	806
or classes described in division (A) of section 3317.014 of the	807
Revised Code, the multiple specified in that division;	808

(b) For a student enrolled in vocational education programs	809
or classes described in division (B) of section 3317.014 of the	810
Revised Code, the multiple specified in that division.	811

(6) "Entitled to attend school" means entitled to attend	812
school in a district under section 3313.64 or 3313.65 of the	813
Revised Code.	814

(7) A community school student is "included in the DPIA	815
student count" of a school district if the student is entitled to	816
attend school in the district and:	817

(a) For school years prior to fiscal year 2004, the	818
student's family receives assistance under the Ohio works first	819
program.	820

(b) For school years in and after fiscal year 2004, the	821
student's family income does not exceed the federal poverty	822
guidelines, as defined in section 5101.46 of the Revised Code, and	823
the student's family receives family assistance, as defined in	824
section 3317.029 of the Revised Code.	825

(8) "DPIA reduction factor" means the percentage figure, if	826
any, for reducing the per pupil amount of disadvantaged pupil	827
impact aid a community school is entitled to receive pursuant to	828
divisions (D)(5) and (6) of this section in any year, as specified	829
in the school's financial plan for the year pursuant to division	830
(A)(15) of section 3314.03 of the Revised Code.	831

(9) "All-day kindergarten" has the same meaning as in section	832
3317.029 of the Revised Code.	833

(B) The state board of education shall adopt rules requiring	834
both of the following:	835

(1) The board of education of each city, exempted village,	836
and local school district to annually report the number of	837
students entitled to attend school in the district who are	838
enrolled in grades one through twelve in a community school	839
established under this chapter, the number of students entitled to	840
attend school in the district who are enrolled in kindergarten in	841
a community school, the number of those kindergartners who are	842
enrolled in all-day kindergarten in their community school, and	843
for each child, the community school in which the child is	844
enrolled.	845

(2) The governing authority of each community school	846
established under this chapter to annually report all of the	847
following:	848

(a) The number of students enrolled in grades one through	849
twelve and the number of students enrolled in kindergarten in the	850
school who are not receiving special education and related	851
services pursuant to an IEP;	852

(b) The number of enrolled students in grades one through	853
twelve and the number of enrolled students in kindergarten, who	854
are receiving special education and related services pursuant to	855
an IEP;	856

(c) The number of students reported under division (B)(2)(b)	857
of this section receiving special education and related services	858
pursuant to an IEP for a handicap described in each of divisions	859
(A) to (F) of section 3317.013 of the Revised Code;	860

(d) The full-time equivalent number of students reported	861
under divisions (B)(2)(a) and (b) of this section who are enrolled	862
in vocational education programs or classes described in each of	863
divisions (A) and (B) of section 3317.014 of the Revised Code that	864
are provided by the community school;	865

(e) The number of enrolled preschool handicapped students	866
receiving special education services in a state-funded unit;	867

(f) The community school's base formula amount;

868

(g) For each student, the city, exempted village, or local	869
school district in which the student is entitled to attend school;	870

(h) Any DPIA reduction factor that applies to a school year.

871

(C) From the payments made to a city, exempted village, or	872
local school district under Chapter 3317. of the Revised Code and,	873
if necessary, sections 321.14 and 323.156 of the Revised Code, the	874
department of education shall annually subtract all of the	875
following:	876

(1) An amount equal to the sum of the amounts obtained when,	877
for each community school where the district's students are	878
enrolled, the number of the district's students reported under	879
divisions (B)(2)(a) and (b) of this section who are enrolled in	880
grades one through twelve, and one-half the number of students	881
reported under those divisions who are enrolled in kindergarten,	882
in that community school is multiplied by the base formula amount	883
of that community school as adjusted by the school district's	884
cost-of-doing-business factor.	885

(2) The sum of the amounts calculated under divisions	886
(C)(2)(a) and (b) of this section:	887

(a) For each of the district's students reported under	888
division (B)(2)(c) of this section as enrolled in a community	889
school in grades one through twelve and receiving special	890
education and related services pursuant to an IEP for a handicap	891
described in section 3317.013 of the Revised Code, the product of	892
the applicable special education weight times the community	893
school's base formula amount;	894

(b) For each of the district's students reported under	895
division (B)(2)(c) of this section as enrolled in kindergarten in	896
a community school and receiving special education and related	897
services pursuant to an IEP for a handicap described in section	898
3317.013 of the Revised Code, one-half of the amount calculated as	899
prescribed in division (C)(2)(a) of this section.	900

(3) For each of the district's students reported under	901
division (B)(2)(d) of this section for whom payment is made under	902
division (D)(4) of this section, the amount of that payment;	903

(4) An amount equal to the sum of the amounts obtained when,	904
for each community school where the district's students are	905
enrolled, the number of the district's students enrolled in that	906
community school who are included in the district's DPIA student	907
count is multiplied by the per pupil amount of disadvantaged pupil	908
impact aid the school district receives that year pursuant to	909
division (B) or (C) of section 3317.029 of the Revised Code, as	910
adjusted by any DPIA reduction factor of that community school. If	911
the district receives disadvantaged pupil impact aid under	912
division (B) of that section, the per pupil amount of that aid is	913
the quotient of the amount the district received under that	914
division divided by the district's DPIA student count, as defined	915
in that section. If the district receives disadvantaged pupil	916
impact aid under division (C) of section 3317.029 of the Revised	917
Code, the per pupil amount of that aid is the per pupil dollar	918
amount prescribed for the district in division (C)(1) or (2) of	919
that section.	920

(5) An amount equal to the sum of the amounts obtained when,	921
for each community school where the district's students are	922
enrolled, the district's per pupil amount of aid received under	923
division (E) of section 3317.029 of the Revised Code, as adjusted	924
by any DPIA reduction factor of the community school, is	925
multiplied by the sum of the following:	926

(a) The number of the district's students reported under	927
division (B)(2)(a) of this section who are enrolled in grades one	928
to three in that community school and who are not receiving	929
special education and related services pursuant to an IEP;	930

(b) One-half of the district's students who are enrolled in	931
all-day or any other kindergarten class in that community school	932
and who are not receiving special education and related services	933
pursuant to an IEP;	934

(c) One-half of the district's students who are enrolled in	935
all-day kindergarten in that community school and who are not	936
receiving special education and related services pursuant to an	937
IEP.	938

The district's per pupil amount of aid under division (E) of	939
section 3317.029 of the Revised Code is the quotient of the amount	940
the district received under that division divided by the	941
district's kindergarten through third grade ADM, as defined in	942
that section.	943

(D) The department shall annually pay to a community school	944
established under this chapter all of the following:	945

(1) An amount equal to the sum of the amounts obtained when	946
the number of students enrolled in grades one through twelve, plus	947
one-half of the kindergarten students in the school, reported	948
under divisions (B)(2)(a) and (b) of this section who are not	949
receiving special education and related services pursuant to an	950
IEP for a handicap described in section 3317.013 of the Revised	951
Code is multiplied by the community school's base formula amount,	952
as adjusted by the cost-of-doing-business factor of the school	953
district in which the student is entitled to attend school;	954

(2) The greater of the following:

955

(a) The aggregate amount that the department paid to the	956
community school in fiscal year 1999 for students receiving	957
special education and related services pursuant to IEPs, excluding	958
federal funds and state disadvantaged pupil impact aid funds;	959

(b) The sum of the amounts calculated under divisions	960
(D)(2)(b)(i) and (ii) of this section:	961

(i) For each student reported under division (B)(2)(c) of	962
this section as enrolled in the school in grades one through	963
twelve and receiving special education and related services	964
pursuant to an IEP for a handicap described in section 3317.013	965
of the Revised Code, the following amount:	966

(the community school's base formula amount

967

X the cost-of-doing-business factor

968

of the district where the student

969

is entitled to attend school) +	970

(the applicable special education weight X

971

the community school's base formula amount);

972

(ii) For each student reported under division (B)(2)(c) of	973
this section as enrolled in kindergarten and receiving special	974
education and related services pursuant to an IEP for a handicap	975
described in section 3317.013 of the Revised Code, one-half of	976
the amount calculated under the formula prescribed in division	977
(D)(2)(b)(i) of this section.	978

(3) An amount received from federal funds to provide special	979
education and related services to students in the community	980
school, as determined by the superintendent of public instruction.	981

(4) For each student reported under division (B)(2)(d) of	982
this section as enrolled in vocational education programs or	983
classes that are described in section 3317.014 of the Revised	984
Code, are provided by the community school, and are comparable as	985
determined by the superintendent of public instruction to school	986
district vocational education programs and classes eligible for	987
state weighted funding under section 3317.014 of the Revised Code,	988
an amount equal to the applicable vocational education weight	989
times the community school's base formula amount times the	990
percentage of time the student spends in the vocational education	991
programs or classes.	992

(5) An amount equal to the sum of the amounts obtained when,	993
for each school district where the community school's students are	994
entitled to attend school, the number of that district's students	995
enrolled in the community school who are included in the	996
district's DPIA student count is multiplied by the per pupil	997
amount of disadvantaged pupil impact aid that school district	998
receives that year pursuant to division (B) or (C) of section	999
3317.029 of the Revised Code, as adjusted by any DPIA reduction	1000
factor of the community school. The per pupil amount of aid shall	1001
be determined as described in division (C)(4) of this section.	1002

(6) An amount equal to the sum of the amounts obtained when,	1003
for each school district where the community school's students are	1004
entitled to attend school, the district's per pupil amount of aid	1005
received under division (E) of section 3317.029 of the Revised	1006
Code, as adjusted by any DPIA reduction factor of the community	1007
school, is multiplied by the sum of the following:	1008

(a) The number of the district's students reported under	1009
division (B)(2)(a) of this section who are enrolled in grades one	1010
to three in that community school and who are not receiving	1011
special education and related services pursuant to an IEP;	1012

(b) One-half of the district's students who are enrolled in	1013
all-day or any other kindergarten class in that community school	1014
and who are not receiving special education and related services	1015
pursuant to an IEP;	1016

(c) One-half of the district's students who are enrolled in	1017
all-day kindergarten in that community school and who are not	1018
receiving special education and related services pursuant to an	1019
IEP.	1020

The district's per pupil amount of aid under division (E) of	1021
section 3317.029 of the Revised Code shall be determined as	1022
described in division (C)(5) of this section.	1023

(E)(1) If a community school's costs for a fiscal year for a	1024
student receiving special education and related services pursuant	1025
to an IEP for a handicap described in divisions (B) to (F) of	1026
section 3317.013 of the Revised Code exceed the threshold	1027
catastrophic cost for serving the student as specified in division	1028
(C)(3)(b) of section 3317.022 of the Revised Code, the school may	1029
submit to the superintendent of public instruction documentation,	1030
as prescribed by the superintendent, of all its costs for that	1031
student. Upon submission of documentation for a student of the	1032
type and in the manner prescribed, the department shall pay to the	1033
community school an amount equal to the school's costs for the	1034
student in excess of the threshold catastrophic costs.	1035

(2) The community school shall only report under division	1036
(E)(1) of this section, and the department shall only pay for, the	1037
costs of educational expenses and the related services provided to	1038
the student in accordance with the student's individualized	1039
education program. Any legal fees, court costs, or other costs	1040
associated with any cause of action relating to the student may	1041
not be included in the amount.	1042

(F) A community school may apply to the department of	1043
education for preschool handicapped or gifted unit funding the	1044
school would receive if it were a school district. Upon request	1045
of its governing authority, a community school that received unit	1046
funding as a school district-operated school before it became a	1047
community school shall retain any units awarded to it as a school	1048
district-operated school provided the school continues to meet	1049
eligibility standards for the unit.	1050

A community school shall be considered a school district and	1051
its governing authority shall be considered a board of education	1052
for the purpose of applying to any state or federal agency for	1053
grants that a school district may receive under federal or state	1054
law or any appropriations act of the general assembly. The	1055
governing authority of a community school may apply to any private	1056
entity for additional funds.	1057

(G) A board of education sponsoring a community school may	1058
utilize local funds to make enhancement grants to the school or	1059
may agree, either as part of the contract or separately, to	1060
provide any specific services to the community school at no cost	1061
to the school.	1062

(H) A community school may not levy taxes or issue bonds	1063
secured by tax revenues.	1064

(I) No community school shall charge tuition for the	1065
enrollment of any student.	1066

(J)(1) A community school may borrow money to pay any	1067
necessary and actual expenses of the school in anticipation of the	1068
receipt of any portion of the payments to be received by the	1069
school pursuant to division (D) of this section. The school may	1070
issue notes to evidence such borrowing to mature no later than the	1071
end of the fiscal year in which such money was borrowed. The	1072
proceeds of the notes shall be used only for the purposes for	1073
which the anticipated receipts may be lawfully expended by the	1074
school.	1075

(2) A school may also borrow money for a term not to exceed	1076
fifteen years for the purpose of acquiring facilities, as	1077
described in division (B) of section 3318.50 of the Revised Code.	1078

(K) For purposes of determining the number of students for	1079
which divisions (D)(5) and (6) of this section applies in any	1080
school year, a community school may submit to the department of	1081
job and family services, no later than the first day of March, a	1082
list of the students enrolled in the school. For each student on	1083
the list, the community school shall indicate the student's name,	1084
address, and date of birth and the school district where the	1085
student is entitled to attend school. Upon receipt of a list	1086
under this division, the department of job and family services	1087
shall determine, for each school district where one or more	1088
students on the list is entitled to attend school, the number of	1089
students residing in that school district who were included in the	1090
department's report under section 3317.10 of the Revised Code. The	1091
department shall make this determination on the basis of	1092
information readily available to it. Upon making this	1093
determination and no later than ninety days after submission of	1094
the list by the community school, the department shall report to	1095
the state department of education the number of students on the	1096
list who reside in each school district who were included in the	1097
department's report under section 3317.10 of the Revised Code. In	1098
complying with this division, the department of job and family	1099
services shall not report to the state department of education any	1100
personally identifiable information on any student.	1101

(L) The department of education shall adjust the amounts	1102
subtracted and paid under divisions (C) and (D) of this section to	1103
reflect any enrollment of students in community schools for less	1104
than the equivalent of a full school year. The state board of	1105
education within ninety days after the effective date of this	1106
amendment shall adopt in accordance with Chapter 119. of the	1107
Revised Code rules governing the payments to community schools	1108
under this section including initial payments in a school year and	1109
adjustments and reductions made in subsequent periodic payments to	1110
community schools and corresponding deductions from school	1111
district accounts as provided under divisions (C) and (D) of this	1112
section. For purposes of this section, a:	1113

(1) A student shall be considered enrolled in the community	1114
school for any portion of the school year the student is	1115
participating at a college under Chapter 3365. of the Revised	1116
Code.	1117

(2) A student shall be considered to be enrolled in a	1118
community school during a school year for the period of time	1119
between the date on which the school both has received	1120
documentation of the student's enrollment from a parent and has	1121
commenced participation in learning opportunities as defined in	1122
the contract with the sponsor. For purposes of applying this	1123
division to a community school student, "learning opportunities"	1124
shall be defined in the contract, which shall describe both	1125
classroom-based and non-classroom-based learning opportunities and	1126
shall be in compliance with criteria and documentation	1127
requirements for student participation which shall be established	1128
by the department. Any student's instruction time in	1129
non-classroom-based learning opportunities shall be certified by	1130
an employee of the community school. A student's enrollment shall	1131
be considered to cease on the date on which any of the following	1132
occur:	1133

(a) The community school receives documentation from a	1134
parent terminating enrollment of the student;	1135

(b) The community school is provided documentation of a	1136
student's enrollment in another public or private school;	1137

(c) The community school ceases to offer learning	1138
opportunities to the student pursuant to the terms of the contract	1139
with the sponsor or the operation of any provision of this	1140
chapter.	1141

(3) A student's percentage of full-time equivalency shall	1142
be considered to be the percentage the hours of learning	1143
opportunity offered to that student is of nine hundred and twenty	1144
hours.	1145

(M) The department of education shall reduce the amounts	1146
paid under division (D) of this section to reflect payments made	1147
to colleges under division (B) of section 3365.07 of the Revised	1148
Code.	1149

(N) Beginning with the school year that starts on July 1,	1150
2001, in accordance with policies adopted jointly by the	1151
superintendent of public instruction,and the auditor of state,	1152
the department shall reduce the amounts otherwise payable under	1153
division (D) of this section to any internet or computer-based	1154
community school that includes in its program the provision of	1155
computer hardware and software materials to each student, if such	1156
hardware and software materials have not been delivered,	1157
installed, and activated for all students in a timely manner or	1158
other educational materials or services have not been provided	1159
according to the contract between the individual community school	1160
and its sponsor.	1161

The superintendent of public instruction,and the auditor of	1162
state, shall jointly establish a method for auditing any community	1163
school to which this division pertains to ensure compliance with	1164
this section.	1165

The superintendent, auditor of state, and the governor shall	1166
jointly make recommendations to the general assembly for	1167
legislative changes that may be required to assure fiscal and	1168
academic accountability for such internet or computer-based	1169
schools.	1170

(O)(1) If the department determines that a review of a	1171
community school’s enrollment is necessary, such review shall be	1172
completed and written notice of the findings shall be provided to	1173
the governing authority of the community school and its sponsor	1174
within ninety days of the end of the community school’s fiscal	1175
year, unless extended for a period not to exceed thirty additional	1176
days for one of the following reasons:	1177

(a) The department and the community school mutually agree	1178
to the extension.	1179

(b) Delays in data submission caused by either a community	1180
school or its sponsor.	1181

(2) If the review results in a finding that additional	1182
funding is owed to the school, such payment shall be made within	1183
thirty days of the written notice. If the review results in a	1184
finding that the community school owes moneys to the state, the	1185
following procedure shall apply:	1186

(a) Within ten business days of the receipt of the notice of	1187
findings, the community school may appeal the department’s	1188
determination to the state board of education or its designee.	1189

(b) The board or its designee shall conduct an informal	1190
hearing on the matter within thirty days of receipt of such an	1191
appeal and shall issue a decision within fifteen days of the	1192
conclusion of the hearing.	1193

(c) If the board has enlisted a designee to conduct the	1194
hearing, the designee shall certify its decision to the board. The	1195
board may accept the decision of the designee or may reject the	1196
decision of the designee and issue its own decision on the matter.	1197

(d) Any decision made by the board under this division is	1198
final.	1199

(3) If it is decided that the community school owes moneys	1200
to the state, the department shall deduct such amount from the	1201
school's future payments in accordance with guidelines issued by	1202
the superintendent of public instruction.	1203

Sec. 3314.081. To the extent permitted by federal law, the	1204
department of education shall include community schools	1205
established under this chapter in its annual allocation of federal	1206
moneys under Title I of the Elementary and Secondary Education Act	1207
of 1965, 20 U.S.C. 6301, et seq.	1208

Sec. 3314.09.  (A) As used in this section and section	1209
3314.091 of the Revised Code, "native student" means a student	1210
entitled to attend school in the school district under section	1211
3313.64 or 3313.65 of the Revised Code.	1212

(B) Except as provided in section 3314.091 of the Revised	1213
Code, the board of education of each city, local, and exempted	1214
village school district shall provide transportation to and from	1215
school for its district's native students enrolled in a community	1216
school located in that district or another district on the same	1217
basis that it provides transportation for its native students	1218
enrolled in schools to which they are assigned by the board of	1219
education at the same grade level and who live the same distance	1220
from school except when, in the judgment of the board, confirmed	1221
by the state board of education, the transportation is unnecessary	1222
or unreasonable. A board shall not be required to transport	1223
nonhandicapped students to and from a community school located in	1224
another school district if the transportation would require more	1225
than thirty minutes of direct travel time as measured by school	1226
bus from the collection point designated by the district's	1227
coordinator of school transportationin accordance with section	1228
3327.01 of the Revised Code.	1229

(C) Where it is impractical to transport a pupil to and from	1230
a community school by school conveyance, a board may, in lieu of	1231
providing the transportation, pay a parent, guardian, or other	1232
person in charge of the child. The amount paid per pupil shall in	1233
no event exceed the average transportation cost per pupil, which	1234
shall be based on the cost of transportation of children by all	1235
boards of education in this state during the next preceding year.	1236

Sec. 3314.091.  (A) A school district is not required to	1237
provide transportation for any native student enrolled in a	1238
community school if the district board of education has entered	1239
into an agreement with the community school's governing authority	1240
that designates the community school as responsible for providing	1241
or arranging for the transportation of the district's native	1242
students to and from the community school. For any such agreement	1243
to be effective, it must be certified by the superintendent of	1244
public instruction as having met bothall of the following	1245
requirements:	1246

(1) It is submitted to the department of education by a	1247
deadline which shall be established by the department.	1248

(2) It specifies qualifications, such as residing a minimum	1249
distance from the school, for students to have their	1250
transportation provided or arranged.	1251

(3) The transportation provided by the community school is	1252
subject to all provisions of the Revised Code and all rules	1253
adopted under the Revised Code pertaining to pupil transportation.	1254

(4) The sponsor of the community school also has signed the	1255
agreement.	1256

(B)(1) A community school governing boardauthority that	1257
enters into an agreement to provide transportation under this	1258
section shall provide or arrange transportation free of any charge	1259
for each of its enrolled students in grades kindergarten through	1260
eight who live more than two miles from the school, except that	1261
the governing board may make a payment in lieu of providing	1262
transportation to the parent, guardian, or person in charge of the	1263
student at the same rate as specified for a school district board	1264
in division (C) of section 3314.09 of the Revised Code if the	1265
drive time measured by the vehicle specified by the school for	1266
transporting the students from the student's residence to the	1267
school is more than thirty minuteseligible for transportation as	1268
specified in section 3327.01 of the Revised Code. The	1269

The governing boardauthority may provide or arrange	1270
transportation for any other enrolled student who is not eligible	1271
for transportation and may charge a fee for such service up to the	1272
actual cost of the service. The governing board may request the	1273
payment specified under division (C) of this section for any	1274
student it transports, for whom it arranges transportation, or for	1275
whom it makes a payment in lieu of providing transportation if the	1276
student lives more than one mile from the community school or is	1277
disabled and the individual education program requires	1278
transportation.	1279

(2) Notwithstanding anything to the contrary in division	1280
(B)(1) of this section, a community school governing board	1281
authority shall provide or arrange transportation free of any	1282
charge for any disabled student enrolled in the school for whom	1283
the student's individualized education program developed under	1284
Chapter 3323. of the Revised Code specifies transportation.	1285

(C)(1) If a school district board and a community school	1286
governing authority elect to enter into an agreement under this	1287
section, the department of education annually shall pay the	1288
community school the amount specified in division (C)(2) of this	1289
section for each of the enrolled students for whom the school's	1290
governing authority provides or arranges transportation to and	1291
from school. The department shall deduct the payment from the	1292
state payment under Chapter 3317. and, if necessary, sections	1293
321.14 and 323.156 of the Revised Code that is otherwise paid to	1294
the school district in which the student enrolled in the community	1295
school resides. The department shall include the number of the	1296
district's native students for whom payment is made to a community	1297
school under this division in the calculation of the district's	1298
transportation payment under division (D) of section 3317.022 of	1299
the Revised Code.	1300

A community school shall be paid under this division only for	1301
students who live more than one mile from the schoolare eligible	1302
as specified in section 3327.01 of the Revised Code or who are	1303
disabled and whose individualized education program requires	1304
transportation and whose transportation to and from school is	1305
actually provided or arranged or for whom a payment in lieu of	1306
transportation is made by the community school's governing	1307
authority. To qualify for the payments, the community school	1308
shall report to the department, in the form and manner required	1309
by the department, data on the number of students transported or	1310
whose transportation is arranged, the number of miles traveled,	1311
cost to transport, and any other information requested by the	1312
department.	1313

A community school shall use payments received under this	1314
division solely to pay the costs of providing or arranging for the	1315
transportation of students who live more than one mile from the	1316
schoolare eligible as specified in section 3327.01 of the Revised	1317
Code or who are disabled and whose individualized education	1318
program requires transportation, which may include payments to a	1319
parent, guardian, or other person in charge of a child in lieu of	1320
transportation.	1321

(2) The payment to a community school governing authority	1322
under this section for each student who lives more than one mile	1323
from the school or who is disabled and whose individualized	1324
education program requires transportation and for whom the school	1325
actually provides or arranges transportation or makes a payment in	1326
lieu of providing transportation,eligible students shall be made	1327
according to the following schedule:	1328

(a) In fiscal year 2002, four-hundred fifty dollars per	1329
student;	1330

(b) In fiscal year 2003 and every fiscal year thereafter,	1331
the amount specified in division (C)(2)(a) of this section	1332
multiplied by the negative or positive percentage of change	1333
reported in the consumer price index (all urban consumers,	1334
transportation) by the bureau of labor statistics of the United	1335
States department of labor from the beginning of the calendar year	1336
that ended just prior to the beginning of the fiscal year to the	1337
end of that calendar yearterms of the agreement entered into	1338
under this section.	1339

(D) Except when arranged through payment to a parent,	1340
guardian, or person in charge of a child, transportation provided	1341
or arranged for by a community school pursuant to an agreement	1342
under this section is subject to all provisions of the Revised	1343
Code, and all rules adopted under the Revised Code, pertaining to	1344
the construction, design, equipment, and operation of school buses	1345
and other vehicles transporting students to and from school. The	1346
drivers and mechanics of the vehicles are subject to all	1347
provisions of the Revised Code, and all rules adopted under the	1348
Revised Code, pertaining to drivers and mechanics of such	1349
vehicles. The community school also shall comply with sections	1350
3313.201, 3327.09, and 3327.10 and division (B) of section 3327.16	1351
of the Revised Code as if it were a school district. For purposes	1352
of complying with section 3327.10 of the Revised Code, the	1353
educational service center that serves the county in which the	1354
community school is located shall be the certifying agency, unless	1355
the agreement designates the school district as the certifying	1356
agency.	1357

Sec. 3314.11.  The department of education shall establish	1358
the state office of school optionscommunity schools to provide	1359
advice and services for the community schools program, established	1360
pursuant to Chapter 3314. of the Revised Code, and the pilot	1361
project scholarship program, established pursuant to sections	1362
3313.974 to 3313.979 of the Revised Code. The office shall	1363
provide services that facilitate the management of the community	1364
schools program and the pilot project scholarship program,	1365
including providing technical assistance and information to	1366
persons or groups considering proposing a community school, to	1367
governing authorities of community schools, and to public entities	1368
sponsoring or considering sponsoring a community school.	1369

Sec. 3314.111. The department of education shall establish	1370
the state office of school options to provide advice and services	1371
for the pilot project scholarship program, established pursuant to	1372
sections 3313.974 to 3313.979 of the Revised Code that facilitate	1373
the management of that program.	1374

Sec. 3314.13.  (A) As used in this section:

1375

(1) "All-day kindergarten" has the same meaning as in section	1376
3317.029 of the Revised Code.	1377

(2) "Formula amount" has the same meaning as in section	1378
3317.02 of the Revised Code.	1379

(B) The department of education annually shall pay each	1380
community school established under this chapter one-half of the	1381
formula amount for each student to whom both of the following	1382
apply:	1383

(1) The student is entitled to attend school under section	1384
3313.64 or 3313.65 of the Revised Code in a school district that	1385
is eligible to receive a payment under division (D) of section	1386
3317.029 of the Revised Code if it provides all-day kindergarten;	1387

(2) The student is reported by the community school under	1388
division (B)(3) of section 3314.08 of the Revised Code as enrolled	1389
in all-day kindergarten at the community school.	1390

(C) If a student for whom payment is made under division (B)	1391
of this section is entitled to attend school in a district that	1392
receives any payment for all-day kindergarten under division (D)	1393
of section 3317.029 of the Revised Code, the department shall	1394
deduct the payment to the community school under this section from	1395
the amount paid that school district under that division. If that	1396
school district does not receive payment for all-day kindergarten	1397
under that division because it does not provide all-day	1398
kindergarten, the department shall pay the community school from	1399
state funds appropriated generally for disadvantaged pupil impact	1400
aid.	1401

(D) The department shall adjust the amounts deducted from	1402
school districts and paid to community schools under this section	1403
to reflect any enrollments of students in all-day kindergarten in	1404
community schools for less than the equivalent of a full school	1405
year.	1406

Sec. 3314.011.        Sec. 3314.16.  Every community school established	1407
under this chapter shall have a designated fiscal officer. The	1408
auditor of state may require by rule that the fiscal officer of	1409
any community school, before entering upon duties as fiscal	1410
officer of the school, execute a bond in an amount and with surety	1411
to be approved by the governing authority of the school, payable	1412
to the state, conditioned for the faithful performance of all the	1413
official duties required of the fiscal officer. Any such bond	1414
shall be deposited with the governing authority of the school, and	1415
a copy thereof, certified by the governing authority, shall be	1416
filed with the county auditor.	1417

The fiscal officer designated under this section shall be	1418
licensed under section 3301.074 of the Revised Code or shall	1419
complete not less than sixteen hours of continuing education	1420
classes, courses, or workshops in the area of school accounting as	1421
approved by the sponsor of the community school.	1422

Sec. 3314.17. (A) Each community school established under	1423
this chapter shall participate in the statewide education	1424
management information system established under section 3301.0714	1425
of the Revised Code. All provisions of that section and the rules	1426
adopted under that section apply to each community school as if it	1427
were a school district, except as modified for community schools	1428
under division (B) of this section.	1429

(B) The rules adopted by the state board of education under	1430
section 3301.0714 of the Revised Code may distinguish methods and	1431
timelines for community schools to annually report data, which	1432
methods and timelines differ from those prescribed for school	1433
districts. Any methods and timelines prescribed for community	1434
schools shall be appropriate to the academic schedule and	1435
financing of community schools. The guidelines, however, shall	1436
not modify the actual data required to be reported under that	1437
section.	1438

(C) Each financial officer appointed under section 3314.16	1439
of the Revised Code is responsible for annually reporting the	1440
community school's data under section 3301.0714 of the Revised	1441
Code. If the superintendent of public instruction determines that	1442
a community school financial officer has willfully failed to	1443
report data or has willfully reported erroneous, inaccurate, or	1444
incomplete data in any year, or has negligently reported	1445
erroneous, inaccurate, or incomplete data in the current and any	1446
previous year, the superintendent may impose a civil penalty of	1447
one hundred dollars on the financial officer after providing the	1448
officer with notice and an opportunity for a hearing in accordance	1449
with Chapter 119. of the Revised Code. The superintendent's	1450
authority to impose civil penalties under this division does not	1451
preclude the state board of education from suspending or revoking	1452
the license of a community school employee under division (N) of	1453
section 3301.0714 of the Revised Code.	1454

Sec. 3314.30. (A) As used in this section:

1455

(1) "Start-up community school" means a "new start-up	1456
school" as that term is defined in division (A) of section 3314.02	1457
of the Revised Code.	1458

(2) A "school's contract" means the contract entered into	1459
between the governing authority and the sponsor of a community	1460
school under section 3314.03 of the Revised Code.	1461

(B) There is hereby created in the state treasury the	1462
community school revolving loan fund. The fund shall consist of	1463
federal moneys allocated to the state for development and	1464
operation of community schools and other moneys appropriated or	1465
transferred by the general assembly for such purpose.	1466

(C) The department of education may make a loan from the	1467
fund created in division (B) of this section to the governing	1468
authority or the sponsor of any start-up community school upon	1469
approval of the loan by the superintendent of public instruction.	1470
Moneys loaned from the fund shall be used only to pay the costs	1471
associated with any provision of the school's contract. A	1472
start-up community school may receive more than one loan from the	1473
fund; however, no school shall receive a cumulative loan amount	1474
throughout the term of the school's contract that is greater than	1475
two hundred fifty thousand dollars.	1476

(D) The superintendent of public instruction may consider	1477
all of the following when determining whether to approve a loan	1478
from the fund created in division (A) of this section:	1479

(1) Soundness of the school's business plan;

1480

(2) Availability of other sources of funding for the	1481
school;	1482

(3) Geographic distribution of other such loans;

1483

(4) Impact of receipt of the loan on a school's ability to	1484
secure other public and private funding;	1485

(5) Plans for the creative use of the loan amounts to	1486
create further financing, such as loan guarantees or other types	1487
of credit enhancements;	1488

(6) Financial needs of the community school.

1489

(E) The superintendent of public instruction shall give	1490
priority for loans under this section to newly established	1491
community schools to pay start-up costs.	1492

(F) The rate of interest charged on any loan under this	1493
section shall be the rate that would be applicable to the same	1494
money if invested in the Ohio subdivision's fund created in	1495
section 135.45 of the Revised Code as of the date the loan is	1496
disbursed to the community school.	1497

(G) Commencing in the first fiscal year that next	1498
succeeds the fiscal year that a community school receives a loan	1499
under this section, the department shall deduct from the periodic	1500
payments made to the school under section 3314.08 of the Revised	1501
Code a prorated amount of the annual repayment amount due under	1502
the loan. The amount deducted from a school's periodic payments	1503
under this division that is attributed to the principal of the	1504
loan shall be deposited into the fund created in division (A) of	1505
this section. The amount deducted from a school's periodic	1506
payments under this division that is attributed to the interest on	1507
the loan shall be deposited into the fund created in section	1508
3314.31 of the Revised Code. The repayment period for any loan	1509
made under this section shall not exceed five consecutive fiscal	1510
years.	1511

(H) The office of budget and management and the	1512
department of education shall monitor the adequacy of moneys on	1513
hand in the fund created in division (A) of this section and shall	1514
report annually to the general assembly on any recommended	1515
appropriations, changes in the interest rate charged on loans	1516
under this section, or changes in default recovery procedures.	1517

Sec. 3314.31. There is hereby created in the state treasury	1518
the community school security fund. The fund shall consist of	1519
moneys paid into the fund under division (G) of section 3314.30 of	1520
the Revised Code and any other moneys that the general assembly	1521
appropriates for the fund. Moneys in the fund shall be paid into	1522
the fund created in division (A) of section 3314.30 of the Revised	1523
Code in the case of default on a loan made under section 3314.30	1524
of the Revised Code in an amount up to the amount of such default.	1525

Sec. 3317.03.  Notwithstanding divisions (A)(1), (B)(1), and	1526
(C) of this section, any student enrolled in kindergarten more	1527
than half time shall be reported as one-half student under this	1528
section.	1529

(A) The superintendent of each city and exempted village	1530
school district and of each educational service center shall, for	1531
the schools under the superintendent's supervision, certify to the	1532
state board of education on or before the fifteenth day of October	1533
in each year for the first full school week in October the formula	1534
ADM, which shall consist of the average daily membership during	1535
such week of the sum of the following:	1536

(1) On an FTE basis, the number of students in grades	1537
kindergarten through twelve receiving any educational services	1538
from the district, except that the following categories of	1539
students shall not be included in the determination:	1540

(a) Students enrolled in adult education classes;

1541

(b) Adjacent or other district students enrolled in the	1542
district under an open enrollment policy pursuant to section	1543
3313.98 of the Revised Code;	1544

(c) Students receiving services in the district pursuant to	1545
a compact, cooperative education agreement, or a contract, but who	1546
are entitled to attend school in another district pursuant to	1547
section 3313.64 or 3313.65 of the Revised Code;	1548

(d) Students for whom tuition is payable pursuant to	1549
sections 3317.081 and 3323.141 of the Revised Code.	1550

(2) On an FTE basis, the number of students entitled to	1551
attend school in the district pursuant to section 3313.64 or	1552
3313.65 of the Revised Code, but receiving educational services in	1553
grades kindergarten through twelve from one or more of the	1554
following entities:	1555

(a) A community school pursuant to Chapter 3314. of the	1556
Revised Code, including any participation in a college pursuant to	1557
Chapter 3365. of the Revised Code while enrolled in such community	1558
school;	1559

(b) An alternative school pursuant to sections 3313.974 to	1560
3313.979 of the Revised Code as described in division (I)(2)(a) or	1561
(b) of this section;	1562

(c) A college pursuant to Chapter 3365. of the Revised Code,	1563
except when the student is enrolled in the college while also	1564
enrolled in a community school pursuant to Chapter 3314. of the	1565
Revised Code;	1566

(d) An adjacent or other school district under an open	1567
enrollment policy adopted pursuant to section 3313.98 of the	1568
Revised Code;	1569

(e) An educational service center or cooperative education	1570
district;	1571

(f) Another school district under a cooperative education	1572
agreement, compact, or contract.	1573

(3) One-fourth of the number of students enrolled in a joint	1574
vocational school district or under a vocational education	1575
compact, excluding any students entitled to attend school in the	1576
district under section 3313.64 or 3313.65 of the Revised Code who	1577
are enrolled in another school district through an open enrollment	1578
policy as reported under division (A)(2)(d) of this section and	1579
then enroll in a joint vocational school district or under a	1580
vocational education compact;	1581

(4) The number of handicapped children, other than	1582
handicapped preschool children, entitled to attend school in the	1583
district pursuant to section 3313.64 or 3313.65 of the Revised	1584
Code who are placed with a county MR/DD board, minus the number of	1585
such children placed with a county MR/DD board in fiscal year	1586
1998. If this calculation produces a negative number, the number	1587
reported under division (A)(4) of this section shall be zero.	1588

(B) To enable the department of education to obtain the data	1589
needed to complete the calculation of payments pursuant to this	1590
chapter, in addition to the formula ADM, each superintendent shall	1591
report separately the following student counts:	1592

(1) The total average daily membership in regular day	1593
classes included in the report under division (A)(1) or (2) of	1594
this section for kindergarten, and each of grades one through	1595
twelve in schools under the superintendent's supervision;	1596

(2) The number of all handicapped preschool children	1597
enrolled as of the first day of December in classes in the	1598
district that are eligible for approval by the state board of	1599
education under division (B) of section 3317.05 of the Revised	1600
Code and the number of those classes, which shall be reported not	1601
later than the fifteenth day of December, in accordance with rules	1602
adopted under that section;	1603

(3) The number of children entitled to attend school in the	1604
district pursuant to section 3313.64 or 3313.65 of the Revised	1605
Code who are participating in a pilot project scholarship program	1606
established under sections 3313.974 to 3313.979 of the Revised	1607
Code as described in division (I)(2)(a) or (b) of this section,	1608
are enrolled in a college under Chapter 3365. of the Revised Code,	1609
except when the student is enrolled in the college while also	1610
enrolled in a community school pursuant to Chapter 3314. of the	1611
Revised Code, are enrolled in an adjacent or other school district	1612
under section 3313.98 of the Revised Code, are enrolled in a	1613
community school established under Chapter 3314. of the Revised	1614
Code, including any participation in a college pursuant to Chapter	1615
3365. of the Revised Code while enrolled in such community school,	1616
or are participating in a program operated by a county MR/DD board	1617
or a state institution;	1618

(4) The number of pupils enrolled in joint vocational	1619
schools;	1620

(5) The average daily membership of handicapped children	1621
reported under division (A)(1) or (2) of this section receiving	1622
special education services for the category one handicap described	1623
in division (A) of section 3317.013 of the Revised Code;	1624

(6) The average daily membership of handicapped children	1625
reported under division (A)(1) or (2) of this section receiving	1626
special education services for category two handicaps described	1627
in division (B) of section 3317.013 of the Revised Code;	1628

(7) The average daily membership of handicapped children	1629
reported under division (A)(1) or (2) of this section receiving	1630
special education services for category three handicaps described	1631
in division (C) of section 3317.013 of the Revised Code;	1632

(8) The average daily membership of handicapped children	1633
reported under division (A)(1) or (2) of this section receiving	1634
special education services for category four handicaps described	1635
in division (D) of section 3317.013 of the Revised Code;	1636

(9) The average daily membership of handicapped children	1637
reported under division (A)(1) or (2) of this section receiving	1638
special education services for the category five handicap	1639
described in division (E) of section 3317.013 of the Revised Code;	1640

(10) The average daily membership of handicapped children	1641
reported under division (A)(1) or (2) of this section receiving	1642
special education services for category six handicaps described in	1643
division (F) of section 3317.013 of the Revised Code;	1644

(11) The average daily membership of pupils reported under	1645
division (A)(1) or (2) of this section enrolled in category one	1646
vocational education programs or classes, described in division	1647
(A) of section 3317.014 of the Revised Code, operated by the	1648
school district or by another district, other than a joint	1649
vocational school district, or by an educational service center;	1650

(12) The average daily membership of pupils reported under	1651
division (A)(1) or (2) of this section enrolled in category two	1652
vocational education programs or services, described in division	1653
(B) of section 3317.014 of the Revised Code, operated by the	1654
school district or another school district, other than a joint	1655
vocational school district, or by an educational service center;	1656

(13) The average number of children transported by the	1657
school district on board-owned or contractor-owned and -operated	1658
buses, reported in accordance with rules adopted by the department	1659
of education;	1660

(14)(a) The number of children, other than handicapped	1661
preschool children, the district placed with a county MR/DD board	1662
in fiscal year 1998;	1663

(b) The number of handicapped children, other than	1664
handicapped preschool children, placed with a county MR/DD board	1665
in the current fiscal year to receive special education services	1666
for the category one handicap described in division (A) of section	1667
3317.013 of the Revised Code;	1668

(c) The number of handicapped children, other than	1669
handicapped preschool children, placed with a county MR/DD board	1670
in the current fiscal year to receive special education services	1671
for category two handicaps described in division (B) of section	1672
3317.013 of the Revised Code;	1673

(d) The number of handicapped children, other than	1674
handicapped preschool children, placed with a county MR/DD board	1675
in the current fiscal year to receive special education services	1676
for category three handicaps described in division (C) of section	1677
3317.013 of the Revised Code;	1678

(e) The number of handicapped children, other than	1679
handicapped preschool children, placed with a county MR/DD board	1680
in the current fiscal year to receive special education services	1681
for category four handicaps described in division (D) of section	1682
3317.013 of the Revised Code;	1683

(f) The number of handicapped children, other than	1684
handicapped preschool children, placed with a county MR/DD board	1685
in the current fiscal year to receive special education services	1686
for the category five handicap described in division (E) of	1687
section 3317.013 of the Revised Code;	1688

(g) The number of handicapped children, other than	1689
handicapped preschool children, placed with a county MR/DD board	1690
in the current fiscal year to receive special education services	1691
for category six handicaps described in division (F) of section	1692
3317.013 of the Revised Code.	1693

(C)(1) Except as otherwise provided in this section for	1694
kindergarten students, the average daily membership in divisions	1695
(B)(1) to (12) of this section shall be based upon the number of	1696
full-time equivalent students. The state board of education shall	1697
adopt rules defining full-time equivalent students and for	1698
determining the average daily membership therefrom for the	1699
purposes of divisions (A), (B), and (D) of this section. No	1700

(2) A student enrolled in a community school established	1701
under Chapter 3314. of the Revised Code shall be counted in the	1702
formula ADM and, if applicable, the category one, two, three,	1703
four, five, or six special education ADM of the school district in	1704
which the student is entitled to attend school under section	1705
3313.64 or 3313.65 of the Revised Code for the same proportion of	1706
the school year that the student is counted in the enrollment of	1707
the community school for purposes of section 3314.08 of the	1708
Revised Code.	1709

(3) No child shall be counted as more than a total of one	1710
child in the sum of the average daily memberships of a school	1711
district under division (A), divisions (B)(1) to (12), or division	1712
(D) of this section, except as follows:	1713

(1)(a) A child with a handicap described in section 3317.013	1714
of the Revised Code may be counted both in formula ADM and in	1715
category one, two, three, four, five, or six special education	1716
ADM and, if applicable, in category one or two vocational	1717
education ADM. As provided in division (C) of section 3317.02 of	1718
the Revised Code, such a child shall be counted in category one,	1719
two, three, four, five, or six special education ADM in the same	1720
proportion that the child is counted in formula ADM.	1721

(2)(b) A child enrolled in vocational education programs or	1722
classes described in section 3314.014 of the Revised Code may be	1723
counted both in formula ADM and category one or two vocational	1724
education ADM and, if applicable, in category one, two, three,	1725
four, five, or six special education ADM. Such a child shall be	1726
counted in category one or two vocational education ADM in the	1727
same proportion as the percentage of time that the child spends in	1728
the vocational education programs or classes.	1729

(4) Based on the information reported under this section,	1730
the department of education shall determine the total student	1731
count, as defined in section 3301.011 of the Revised Code, for	1732
each school district.	1733

(D)(1) The superintendent of each joint vocational school	1734
district shall certify to the superintendent of public instruction	1735
on or before the fifteenth day of October in each year for the	1736
first full school week in October the formula ADM, which shall	1737
consist of the average daily membership during such week, on an	1738
FTE basis, of the number of students receiving any educational	1739
services from the district, except that the following categories	1740
of students shall not be included in the determination:	1741

(a) Students enrolled in adult education classes;

1742

(b) Adjacent or other district joint vocational students	1743
enrolled in the district under an open enrollment policy pursuant	1744
to section 3313.98 of the Revised Code;	1745

(c) Students receiving services in the district pursuant to	1746
a compact, cooperative education agreement, or a contract, but who	1747
are entitled to attend school in a city, local, or exempted	1748
village school district whose territory is not part of the	1749
territory of the joint vocational district;	1750

(d) Students for whom tuition is payable pursuant to	1751
sections 3317.081 and 3323.141 of the Revised Code.	1752

(2) To enable the department of education to obtain the data	1753
needed to complete the calculation of payments pursuant to this	1754
chapter, in addition to the formula ADM, each superintendent shall	1755
report separately the average daily membership included in the	1756
report under division (D)(1) of this section for each of the	1757
following categories of students:	1758

(a) Students enrolled in each grade included in the joint	1759
vocational district schools;	1760

(b) Handicapped children receiving special education	1761
services for the category one handicap described in division (A)	1762
of section 3317.013 of the Revised Code;	1763

(c) Handicapped children receiving special education	1764
services for the category two handicaps described in division (B)	1765
of section 3317.013 of the Revised Code;	1766

(d) Handicapped children receiving special education	1767
services for category three handicaps described in division (C)	1768
of section 3317.013 of the Revised Code;	1769

(e) Handicapped children receiving special education services	1770
for category four handicaps described in division (D) of section	1771
3317.013 of the Revised Code;	1772

(f) Handicapped children receiving special education	1773
services for the category five handicap described in division (E)	1774
of section 3317.013 of the Revised Code;	1775

(g) Handicapped children receiving special education	1776
services for category six handicaps described in division (F) of	1777
section 3317.013 of the Revised Code;	1778

(h) Students receiving category one vocational education	1779
services, described in division (A) of section 3317.014 of the	1780
Revised Code;	1781

(i) Students receiving category two vocational education	1782
services, described in division (B) of section 3317.014 of the	1783
Revised Code.	1784

The superintendent of each joint vocational school district	1785
shall also indicate the city, local, or exempted village school	1786
district in which each joint vocational district pupil is entitled	1787
to attend school pursuant to section 3313.64 or 3313.65 of the	1788
Revised Code.	1789

(E) In each school of each city, local, exempted village,	1790
joint vocational, and cooperative education school district there	1791
shall be maintained a record of school membership, which record	1792
shall accurately show, for each day the school is in session, the	1793
actual membership enrolled in regular day classes. For the	1794
purpose of determining average daily membership, the membership	1795
figure of any school shall not include any pupils except those	1796
pupils described by division (A) of this section. The record of	1797
membership for each school shall be maintained in such manner that	1798
no pupil shall be counted as in membership prior to the actual	1799
date of entry in the school and also in such manner that where for	1800
any cause a pupil permanently withdraws from the school that pupil	1801
shall not be counted as in membership from and after the date of	1802
such withdrawal. There shall not be included in the membership of	1803
any school any of the following:	1804

(1) Any pupil who has graduated from the twelfth grade of a	1805
public high school;	1806

(2) Any pupil who is not a resident of the state;

1807

(3) Any pupil who was enrolled in the schools of the	1808
district during the previous school year when tests were	1809
administered under section 3301.0711 of the Revised Code but did	1810
not take one or more of the tests required by that section and was	1811
not excused pursuant to division (C)(1) of that section;	1812

(4) Any pupil who has attained the age of twenty-two years,	1813
except for veterans of the armed services whose attendance was	1814
interrupted before completing the recognized twelve-year course of	1815
the public schools by reason of induction or enlistment in the	1816
armed forces and who apply for reenrollment in the public school	1817
system of their residence not later than four years after	1818
termination of war or their honorable discharge.	1819

If, however, any veteran described by division (E)(4) of this	1820
section elects to enroll in special courses organized for veterans	1821
for whom tuition is paid under the provisions of federal laws, or	1822
otherwise, that veteran shall not be included in average daily	1823
membership.	1824

Notwithstanding division (E)(3) of this section, the	1825
membership of any school may include a pupil who did not take a	1826
test required by section 3301.0711 of the Revised Code if the	1827
superintendent of public instruction grants a waiver from the	1828
requirement to take the test to the specific pupil. The	1829
superintendent may grant such a waiver only for good cause in	1830
accordance with rules adopted by the state board of education.	1831

Except as provided in divisiondivisions (B)(2) and (F) of	1832
this section, the average daily membership figure of any local,	1833
city, exempted village, or joint vocational school district shall	1834
be determined by dividing the figure representing the sum of the	1835
number of pupils enrolled during each day the school of attendance	1836
is actually open for instruction during the first full school week	1837
in October by the total number of days the school was actually	1838
open for instruction during that week. For purposes of state	1839
funding, "enrolled" persons are only those pupils who are	1840
attending school, those who have attended school during the	1841
current school year and are absent for authorized reasons, and	1842
those handicapped children currently receiving home instruction.	1843

The average daily membership figure of any cooperative	1844
education school district shall be determined in accordance with	1845
rules adopted by the state board of education.	1846

(F)(1) If the formula ADM for the first full school week in	1847
February is at least three per cent greater than that certified	1848
for the first full school week in the preceding October, the	1849
superintendent of schools of any city, exempted village, or joint	1850
vocational school district or educational service center shall	1851
certify such increase to the superintendent of public instruction.	1852
Such certification shall be submitted no later than the fifteenth	1853
day of February. For the balance of the fiscal year, beginning	1854
with the February payments, the superintendent of public	1855
instruction shall use the increased formula ADM in calculating or	1856
recalculating the amounts to be allocated in accordance with	1857
section 3317.022 or 3317.16 of the Revised Code. In no event	1858
shall the superintendent use an increased membership certified to	1859
the superintendent after the fifteenth day of February.	1860

(2) If on the first school day of April the total number of	1861
classes or units for handicapped preschool children that are	1862
eligible for approval under division (B) of section 3317.05 of the	1863
Revised Code exceeds the number of units that have been approved	1864
for the year under that division, the superintendent of schools of	1865
any city, exempted village, or cooperative education school	1866
district or educational service center shall make the	1867
certifications required by this section for that day. If the	1868
state board of education determines additional units can be	1869
approved for the fiscal year within any limitations set forth in	1870
the acts appropriating moneys for the funding of such units, the	1871
board shall approve additional units for the fiscal year on the	1872
basis of such average daily membership. For each unit so	1873
approved, the department of education shall pay an amount computed	1874
in the manner prescribed in section 3317.052 or 3317.19 and	1875
section 3317.053 of the Revised Code.	1876

(3) If a student attending a community school under Chapter	1877
3314. of the Revised Code is not included in the formula ADM	1878
certified for the first full school week of October for the school	1879
district in which the student is entitled to attend school under	1880
section 3313.64 or 3313.65 of the Revised Code, the department of	1881
education shall adjust the formula ADM of that school district to	1882
include the community school student in accordance with division	1883
(C)(2) of this section, and shall recalculate the school	1884
district's payments under this chapter for the entire fiscal year	1885
on the basis of that adjusted formula ADM. This requirement	1886
applies regardless of whether the student was enrolled, as defined	1887
in division (E) of this section, in the community school during	1888
the first full school week in October.	1889

(G)(1)(a) The superintendent of an institution operating a	1890
special education program pursuant to section 3323.091 of the	1891
Revised Code shall, for the programs under such superintendent's	1892
supervision, certify to the state board of education the average	1893
daily membership of all handicapped children in classes or	1894
programs approved annually by the state board of education, in the	1895
manner prescribed by the superintendent of public instruction.	1896

(b) The superintendent of an institution with vocational	1897
education units approved under division (A) of section 3317.05 of	1898
the Revised Code shall, for the units under the superintendent's	1899
supervision, certify to the state board of education the average	1900
daily membership in those units, in the manner prescribed by the	1901
superintendent of public instruction.	1902

(2) The superintendent of each county MR/DD board that	1903
maintains special education classes under section 3317.20 of the	1904
Revised Code or units approved by the state board of education	1905
pursuant to section 3317.05 of the Revised Code shall do both of	1906
the following:	1907

(a) Certify to the state board, in the manner prescribed by	1908
the board, the average daily membership in classes under section	1909
3317.20 of the Revised Code for each school district that has	1910
placed children in the classes;	1911

(b) Certify to the state board, in the manner prescribed by	1912
the board, the number of all handicapped preschool children	1913
enrolled as of the first day of December in classes eligible for	1914
approval under division (B) of section 3317.05 of the Revised	1915
Code, and the number of those classes.	1916

(3)(a) If on the first school day of April the number of	1917
classes or units maintained for handicapped preschool children by	1918
the county MR/DD board that are eligible for approval under	1919
division (B) of section 3317.05 of the Revised Code is greater	1920
than the number of units approved for the year under that	1921
division, the superintendent shall make the certification required	1922
by this section for that day.	1923

(b) If the state board determines that additional classes or	1924
units can be approved for the fiscal year within any limitations	1925
set forth in the acts appropriating moneys for the funding of the	1926
classes and units described in division (G)(3)(a) of this	1927
section, the board shall approve and fund additional units for the	1928
fiscal year on the basis of such average daily membership. For	1929
each unit so approved, the department of education shall pay an	1930
amount computed in the manner prescribed in sections 3317.052 and	1931
3317.053 of the Revised Code.	1932

(H) Except as provided in division (I) of this section, when	1933
any city, local, or exempted village school district provides	1934
instruction for a nonresident pupil whose attendance is	1935
unauthorized attendance as defined in section 3327.06 of the	1936
Revised Code, that pupil's membership shall not be included in	1937
that district's membership figure used in the calculation of that	1938
district's formula ADM or included in the determination of any	1939
unit approved for the district under section 3317.05 of the	1940
Revised Code. The reporting official shall report separately the	1941
average daily membership of all pupils whose attendance in the	1942
district is unauthorized attendance, and the membership of each	1943
such pupil shall be credited to the school district in which the	1944
pupil is entitled to attend school under division (B) of section	1945
3313.64 or section 3313.65 of the Revised Code as determined by	1946
the department of education.	1947

(I)(1) A city, local, exempted village, or joint vocational	1948
school district admitting a scholarship student of a pilot project	1949
district pursuant to division (C) of section 3313.976 of the	1950
Revised Code may count such student in its average daily	1951
membership.	1952

(2) In any year for which funds are appropriated for pilot	1953
project scholarship programs, a school district implementing a	1954
state-sponsored pilot project scholarship program that year	1955
pursuant to sections 3313.974 through 3313.979 of the Revised Code	1956
may count in average daily membership:	1957

(a) All children residing in the district and utilizing a	1958
scholarship to attend kindergarten in any alternative school, as	1959
defined in section 3313.974 of the Revised Code;	1960

(b) All children who were enrolled in the district in the	1961
preceding year who are utilizing a scholarship to attend any such	1962
alternative school.	1963

(J) The superintendent of each cooperative education school	1964
district shall certify to the superintendent of public	1965
instruction, in a manner prescribed by the state board of	1966
education, the applicable average daily memberships for all	1967
students in the cooperative education district, also indicating	1968
the city, local, or exempted village district where each pupil is	1969
entitled to attend school under section 3313.64 or 3313.65 of the	1970
Revised Code.	1971

Sec. 3318.38.  (A) As used in this section, "big-eight	1972
school district" has the same meaning as in section 3314.02	1973
3313.534 of the Revised Code.	1974

(B) There is hereby established the accelerated urban school	1975
building assistance program. Under the program, notwithstanding	1976
section 3318.02 of the Revised Code, any big-eight school district	1977
that has not been approved to receive assistance under sections	1978
3318.01 to 3318.20 of the Revised Code by July 1, 2002, may	1979
beginning on that date apply for approval of and be approved for	1980
such assistance. Except as otherwise provided in this section,	1981
any project approved and undertaken pursuant to this section shall	1982
comply with all provisions of sections 3318.01 to 3318.20 of the	1983
Revised Code.	1984

The Ohio school facilities commission shall provide	1985
assistance to any big-eight school district eligible for	1986
assistance under this section in the following manner:	1987

(1) Notwithstanding section 3318.02 of the Revised Code:

1988

(a) Not later than June 30, 2002, the commission shall	1989
conduct an on-site visit and shall assess the classroom facilities	1990
needs of each big-eight school district eligible for assistance	1991
under this section;	1992

(b) Beginning July 1, 2002, any big-eight school district	1993
eligible for assistance under this section may apply to the	1994
commission for conditional approval of its project as determined	1995
by the assessment conducted under division (B)(1)(a) of this	1996
section. The commission may conditionally approve that project	1997
and submit it to the controlling board for approval pursuant to	1998
section 3318.04 of the Revised Code.	1999

(2) If the controlling board approves the project of a	2000
big-eight school district eligible for assistance under this	2001
section, the commission and the school district shall enter into	2002
an agreement as prescribed in section 3318.08 of the Revised Code.	2003
Any agreement executed pursuant to this division shall include any	2004
applicable segmentation provisions as approved by the commission	2005
under division (B)(3) of this section.	2006

(3) Notwithstanding any provision to the contrary in	2007
sections 3318.05, 3318.06, and 3318.08 of the Revised Code, a	2008
big-eight school district eligible for assistance under this	2009
section may with the approval of the commission opt to divide the	2010
project as approved under division (B)(1)(b) of this section into	2011
discrete segments to be completed sequentially. Any project	2012
divided into segments shall comply with all other provisions of	2013
sections 3318.05, 3318.06, and 3318.08 of the Revised Code except	2014
as otherwise specified in this division.	2015

If a project is divided into segments under this division:

2016

(a) The school district need raise only the amount equal to	2017
its proportionate share, as determined under section 3318.032 of	2018
the Revised Code, of each segment at any one time and may seek	2019
voter approval of each segment separately;	2020

(b) The state's proportionate share, as determined under	2021
section 3318.032 of the Revised Code, of only the segment which	2022
has been approved by the school district electors or for which the	2023
district has applied a local donated contribution under section	2024
3318.084 of the Revised Code shall be encumbered at any one time.	2025
Encumbrance of additional amounts to cover the state's	2026
proportionate share of later segments shall be approved separately	2027
as they are approved by the school district electors or as the	2028
district applies a local donated contribution to the segments	2029
under section 3318.084 of the Revised Code. If the state's share	2030
of any one segment exceeds twenty-five million dollars,	2031
encumbrance of that share is subject to the provisions of section	2032
3318.11 of the Revised Code.	2033

(c) If it is necessary to levy the additional tax for	2034
maintenance under division (B) of section 3318.05 of the Revised	2035
Code with respect to any segment of the project, the district may	2036
utilize the provisions of section 3318.061 of the Revised Code to	2037
ensure that the maintenance tax extends for twenty-three years	2038
after the last segment of the project is undertaken.	2039

Sec. 3318.50. (A) As used in this section and in section	2040
3318.52 of the Revised Code:	2041

(1) "Start-up community school" means a "new start-up school"	2042
as that term is defined in division (A) of section 3314.02 of the	2043
Revised Code.	2044

(2) "Classroom, "classroom facilities" has the same meaning	2045
as in section 3318.01means buildings, land, grounds, equipment,	2046
and furnishings used by a community school in furtherance of its	2047
mission and contract entered into by the school's governing	2048
authority under Chapter 3314. of the Revised Code.	2049

(B) There is hereby established the community school	2050
classroom facilities loan guarantee program. Under the program,	2051
the Ohio school facilities commission may guarantee for up to	2052
fifteen years up to eighty-five per cent of the sum of the	2053
principal and interest on a loan made to the governing authority	2054
of a start-up community school established under Chapter 3314. of	2055
the Revised Code for the sole purpose of assisting the governing	2056
boardauthority in acquiring, improving, or replacing classroom	2057
facilities for the community school by lease, purchase, remodeling	2058
of existing facilities, or any other means except byincluding new	2059
construction.	2060

The commission shall not make any loan guarantee under this	2061
section unless the commission has determined both that the	2062
applicant is creditworthy and that the classroom facilities meet	2063
specifications established by the commission under section 3318.51	2064
of the Revised Codethat have been acquired, improved, or replaced	2065
under the loan meet applicable health and safety standards	2066
established by law for school buildings or those facilities that	2067
will be acquired, improved, or replaced under the loan will meet	2068
such standards.	2069

The commission shall not guarantee any loan under this	2070
section unless the loan is obtained from a financial institution	2071
regulated by the United States or this state.	2072

(C) At no time shall the commission exceed an aggregate	2073
liability of ten million dollars to repay loans guaranteed under	2074
this section.	2075

(D) Any payment made to a lending institution as a result of	2076
default on a loan guaranteed under this section shall be made from	2077
moneys in the community school classroom facilities loan guarantee	2078
fund established under section 3318.52 of the Revised Code.	2079

(E)(D) The commission may assess a fee of up to five hundred	2080
dollars for each loan guaranteed under this section.	2081

(F)(E) Not later than ninety days after the effective date	2082
of this sectionSeptember 5, 2001, the commission shall adopt	2083
rules that prescribe loan standards and procedures consistent with	2084
this section that are designed to protect the state's interest in	2085
any loan guaranteed by this section and to ensure that the state	2086
has a reasonable chance of recovering any payments made by the	2087
state in the event of a default on any such loan.	2088

Sec. 3318.53. There is hereby established the community	2089
school classroom facilities support program. Under the program,	2090
in any fiscal year that the general assembly appropriates moneys	2091
specifically for such purpose, the Ohio school facilities	2092
commission shall pay a stipend to each start-up community school	2093
then currently chartered under Chapter 3314. of the Revised Code.	2094
The stipend to each school shall be an amount equal to four	2095
hundred fifty dollars times the number of students served by the	2096
school in the year that the stipend is paid. The governing	2097
authority of each community school may use the moneys paid under	2098
this section to help defray any rental or loan payments the	2099
authority makes for classroom facilities used by the community	2100
school.	2101

Sec. 3327.01.  Notwithstanding division (D) of section	2102
3311.19 and division (D) of section 3311.52 of the Revised Code,	2103
this section and sections 3327.011 and, 3327.012, and 3327.02 of	2104
the Revised Code do not apply to any joint vocational or	2105
cooperative education school district.	2106

In all city, local, and exempted village school districts	2107
where resident school pupils in grades kindergarten through eight	2108
live more than two miles from the school for which the state board	2109
of education prescribes minimum standards pursuant to division (D)	2110
of section 3301.07 of the Revised Code and to which they are	2111
assigned by the board of education of the district of residence or	2112
to and from the nonpublic or community school which they attend	2113
the board of education shall provide transportation for such	2114
pupils to and from such school except when, in the judgment of	2115
such board, confirmed by the state board of education, such	2116
transportation is unnecessary or unreasonableas provided in	2117
section 3327.02 of the Revised Code.	2118

In all city, local, and exempted village school districts the	2119
board may provide transportation for resident school pupils in	2120
grades nine through twelve to and from the high school to which	2121
they are assigned by the board of education of the district of	2122
residence or to and from the non-publicnonpublic or community	2123
high school which they attend for which the state board of	2124
education prescribes minimum standards pursuant to division (D) of	2125
section 3301.07 of the Revised Code.	2126

In determining the necessity for transportation, availability	2127
of facilities and distance to the school shall be considered.	2128

A board of education shall not be required to transport	2129
elementary or high school pupils to and from a non-public	2130
nonpublic or community school where such transportation would	2131
require more than thirty minutes of direct travel time as measured	2132
by school bus from the collection point as designated by the	2133
coordinator of school transportation, appointed under section	2134
3327.011 of the Revised Code, for the attendance area of the	2135
district of residence.	2136

Where it is impractical to transport a pupil by school	2137
conveyance, a board of education may offer payment, in lieu of	2138
providing such transportation, pay a parent, guardian, or other	2139
person in charge of such child, an amount per pupil which shall in	2140
no event exceed the average transportation cost per pupil, such	2141
average cost to be based on the cost of transportation of children	2142
by all boards of education in this state during the next preceding	2143
yearin accordance with section 3327.02 of the Revised Code.	2144

In all city, local, and exempted village school districts the	2145
board shall provide transportation for all children who are so	2146
crippled that they are unable to walk to and from the school for	2147
which the state board of education prescribes minimum standards	2148
pursuant to division (D) of section 3301.07 of the Revised Code	2149
and which they attend. In case of dispute whether the child is	2150
able to walk to and from the school, the health commissioner shall	2151
be the judge of such ability. In all city, exempted village, and	2152
local school districts the board shall provide transportation to	2153
and from school or special education classes for educable mentally	2154
retarded children in accordance with standards adopted by the	2155
state board of education.	2156

When transportation of pupils is provided the conveyance	2157
shall be run on a time schedule that shall be adopted and put in	2158
force by the board not later than ten days after the beginning of	2159
the school term.	2160

The cost of any transportation service authorized by this	2161
section shall be paid first out of federal funds, if any,	2162
available for the purpose of pupil transportation, and secondly	2163
out of state appropriations, in accordance with regulations	2164
adopted by the state board of education.	2165

No transportation of any pupils shall be provided by any	2166
board of education to or from any school which in the selection of	2167
pupils, faculty members, or employees, practices discrimination	2168
against any person on the grounds of race, color, religion, or	2169
national origin.	2170

Sec. 3327.02. If the board of education of a local school	2171
district deems the transportation, required under any law, of	2172
certain children to school by school conveyances impracticable and	2173
if it is unable to secure a reasonable offer for the	2174
transportation of such children the local board shall so report to	2175
the county board(A) After considering each of the following	2176
factors, the board of education of a city, exempted village, or	2177
local school district may determine that it is impractical to	2178
transport a pupil who is eligible for transportation to and from a	2179
school under section 3327.01 of the Revised Code:	2180

(1) The time and distance required to provide the	2181
transportation;	2182

(2) The number of pupils to be transported;

2183

(3) The cost of providing transportation in terms of	2184
equipment, maintenance, personnel, and administration;	2185

(4) Whether similar or equivalent service is provided to	2186
other pupils eligible for transportation;	2187

(5) Whether and to what extent the additional service	2188
unavoidably disrupts current transportation schedules;	2189

(6) Whether other reimbursable types of transportation are	2190
available.	2191

(B)(1) Based on its consideration of the factors	2192
established in division (A) of this section, the board may pass a	2193
resolution declaring the impracticality of transportation. The	2194
resolution shall include each pupil’s name and the reason for	2195
impracticality.	2196

(2) The board shall report its determination to the state	2197
board of education in a manner determined by the state board.	2198

(3) The board of education of a local school district	2199
additionally shall submit the resolution for concurrence to the	2200
educational service center that contains the local district's	2201
territory. If the countyeducational service center governing	2202
board deems suchconsiders transportation by school conveyance	2203
practicable or the offers reasonable, it shall so inform the local	2204
board and transportation shall be provided by such local board. If	2205
the countyeducational service center board agrees with the view	2206
of the local board it is compliance with section 3327.01 of the	2207
Revised Code, by such local board if such board agrees to pay the	2208
parent or other person in charge of the child for the	2209
transportation of such child to school at a rate determined for	2210
the particular case by, the local board for each day of actualmay	2211
offer payment in lieu of transportation as provided in this	2212
section.	2213

The teachers in charge of such children shall keep an	2214
accurate account of the days the children are transported to and	2215
from school. A failure of a parent or guardian to arrange to have	2216
his child transported to school, or his failure to have the child	2217
attend on the ground that the transportation is not supplied	2218
cannot be pleaded as an excuse for the failure of such parent or	2219
guardian to send such child to school or for the failure of the	2220
child to attend school.	2221

(C) After passing the resolution declaring the	2222
impracticality of transportation, the district board shall offer	2223
to provide payment in lieu of transportation by doing the	2224
following:	2225

(1) In accordance with guidelines established by the	2226
department of education, informing the pupil's parent, guardian,	2227
or other person in charge of the pupil of both of the following:	2228

(a) The board's resolution;

2229

(b) The right of the pupil's parent, guardian, or other	2230
person in charge of the pupil to accept the offer of payment in	2231
lieu of transportation or to reject the offer and instead request	2232
the department to initiate mediation procedures.	2233

(2) Issue the pupil's parent, guardian, or other person in	2234
charge of the pupil a contract or other form on which the parent,	2235
guardian, or other person in charge of the pupil is given the	2236
option to accept or reject the board’s offer of payment in lieu of	2237
transportation.	2238

(D) If the parent, guardian, or other person in charge of	2239
the pupil accepts the offer of payment in lieu of providing	2240
transportation, the board shall pay the parent, guardian, or other	2241
person in charge of the child an amount that shall be no less than	2242
the amount determined by the department of education as the	2243
minimum for payment in lieu of transportation, and no more than	2244
the amount determined by the department as the average cost of	2245
pupil transportation for the previous school year. Payment may be	2246
prorated if the time period involved is only a part of the school	2247
year.	2248

(E)(1)(a) Upon the request of a parent, guardian, or other	2249
person in charge of the pupil who rejected the payment in lieu of	2250
transportation, the department shall conduct mediation procedures.	2251

(b) If the mediation does not resolve the dispute, the	2252
state board of education shall conduct a hearing in accordance	2253
with Chapter 119. of the Revised Code. The state board may	2254
approve the payment in lieu of transportation or may order the	2255
board of education to provide transportation. The decision of the	2256
state board is binding in subsequent years and on future parties	2257
in interest provided the facts of the determination remain	2258
comparable.	2259

(2) The school district shall provide transportation for	2260
the pupil from the time the parent, guardian, or other person in	2261
charge of the pupil requests mediation until the matter is	2262
resolved under division (E)(1)(a) or (b) of this section.	2263

(F)(1) If the department determines that a school district	2264
board has failed or is failing to provide transportation as	2265
required by division (E)(2) of this section or as ordered by the	2266
state board under division (E)(1)(b) of this section, the	2267
department shall order the school district board to pay to the	2268
pupil's parent, guardian, or other person in charge of the pupil,	2269
an amount equal to the state average daily cost of transportation	2270
as determined by the state board of education for the previous	2271
year. The school district board shall make payments on a schedule	2272
ordered by the department.	2273

(2) If the department subsequently finds that a school	2274
district board is not in compliance with an order issued under	2275
division (F)(1) of this section and the affected pupils are	2276
enrolled in a nonpublic or community school, the department shall	2277
deduct the amount that the board is required to pay under that	2278
order from any payments the department makes to the school	2279
district board under division (D) of section 3317.022 of the	2280
Revised Code. The department shall use the moneys so deducted to	2281
make payments to the nonpublic or community school attended by the	2282
pupil. The department shall continue to make the deductions and	2283
payments required under this division until the school district	2284
board either complies with the department’s order issued under	2285
division (F)(1) of this section or begins providing	2286
transportation.	2287

(G) A nonpublic or community school that receives payments	2288
from the department under division (F)(2) of this section shall do	2289
either of the following:	2290

(1) Disburse the entire amount of the payments to the	2291
parent, guardian, or other person in control of the pupil affected	2292
by the failure of the school district of residence to provide	2293
transportation;	2294

(2) Use the entire amount of the payments to provide	2295
acceptable transportation for the affected pupil.	2296

Sec. 3365.08.  (A) A college that expects to receive or	2297
receives reimbursement under section 3365.07 of the Revised Code	2298
shall furnish to a participant all textbooks and materials	2299
directly related to a course taken by the participant under	2300
division (B) of section 3365.04 of the Revised Code. No college	2301
shall charge such participant for tuition, textbooks, materials,	2302
or other fees directly related to any such course.	2303

(B) No student enrolled under this chapter in a course for	2304
which credit toward high school graduation is awarded shall	2305
receive direct financial aid through any state or federal program.	2306

(C) If a school district provides transportation for	2307
resident school students in grades eleven and twelve under section	2308
3327.01 of the Revised Code, a parent of a pupil enrolled in a	2309
course under division (B) of section 3365.04 of the Revised Code	2310
may apply to the board of education for full or partial	2311
reimbursement for the necessary costs of transporting the student	2312
between the secondary school the student attends and the college	2313
in which the student is enrolled. Reimbursement may be paid	2314
solely from funds received by the district under division (D) of	2315
section 3317.022 of the Revised Code. The state board of	2316
education shall establish guidelines, based on financial need,	2317
under which a district may provide such reimbursement.	2318

(D) If a community school provides or arranges	2319
transportation for its pupils in grades nine through twelve under	2320
section 3314.091 of the Revised Code, a parent of a pupil of the	2321
community school who is enrolled in a course under division (B) of	2322
section 3365.04 of the Revised Code may apply to the governing	2323
authority of the community school for full or partial	2324
reimbursement of the necessary costs of transporting the student	2325
between the community school and the college. The governing	2326
authority may pay the reimbursement in accordance with the state	2327
board's rules adopted under division (C) of this section solely	2328
from funds paid to it under section 3314.091 of the Revised Code.	2329

Sec. 4117.101.  Notwithstanding sections 4117.08 and 4117.10	2330
of the Revised Code, no agreement entered into under this chapter	2331
may contain any provision that in any way limits the effect or	2332
operation of Chapter 3314. of the Revised Code or limits the	2333
authority of a school district board of education, or the	2334
governing board of an educational service center described in	2335
division (C)(1)(e)(d) of section 3314.02 of the Revised Code, to	2336
enter into a contract with a community school under that chapter.	2337
However, nothing in this section shall be construed to prohibit an	2338
agreement entered into under this chapter from containing	2339
requirements and procedures governing the reassignment of teachers	2340
who are employed in a school at the time it is converted to a	2341
community school pursuant to Chapter 3314. of the Revised Code and	2342
who do not choose or are not chosen to teach in that community	2343
school.	2344

Section 2. That existing sections 3313.375, 3313.534,	2345
3314.011, 3314.013, 3314.02, 3314.03, 3314.06, 3314.07, 3314.072,	2346
3314.08, 3314.09, 3314.091, 3314.11, 3314.13, 3317.03, 3318.38,	2347
3318.50, 3327.01, 3327.02, 3365.08, and 4117.101, and section	2348
3314.021 of the Revised Code are hereby repealed.	2349

Section 3. That Section 44.05 of Am. Sub. H.B. 94 of the	2350
124th General Assembly be amended to read as follows:	2351

"       Sec. 44.05. VOCATIONAL EDUCATION MATCH

2352

The foregoing appropriation item 200-416, Vocational	2353
Education Match, shall be used by the Department of Education to	2354
provide vocational administration matching funds pursuant to 20	2355
U.S.C. 2311.	2356

TECHNICAL SYSTEMS DEVELOPMENT

2357

The foregoing appropriation item 200-420, Technical Systems	2358
Development, shall be used to support the development and	2359
implementation of information technology solutions designed to	2360
improve the performance and customer service of the Department of	2361
Education. Funds may be used for personnel, maintenance, and	2362
equipment costs related to the development and implementation of	2363
these technical system projects. Implementation of these systems	2364
shall allow the department to provide greater levels of assistance	2365
to school districts and to provide more timely information to the	2366
public, including school districts, administrators, and	2367
legislators.	2368

ALTERNATIVE EDUCATION PROGRAMS

2369

There is hereby created the Alternative Education Advisory	2370
Council, which shall consist of one representative from each of	2371
the following agencies: the Ohio Department of Education; the	2372
Department of Youth Services; the Ohio Department of Alcohol and	2373
Drug Addiction Services; the Department of Mental Health; the	2374
Office of the Governor or, at the Governor's discretion, the	2375
Office of the Lieutenant Governor; and the Office of the Attorney	2376
General; and, beginning January 1, 2003, the Office of the Auditor	2377
of State.	2378

Of the foregoing appropriation item 200-421, Alternative	2379
Education Programs, not less than $8,253,031 in each fiscal year	2380
shall be used for the renewal of successful implementation grants	2381
and for competitive matching grants to the 21 urban school	2382
districts as defined in division (O) of section 3317.02 of the	2383
Revised Code as it existed prior to July 1, 1998, and not less	2384
than $8,163,031 in each fiscal year shall be used for the renewal	2385
of successful implementation of grants and for competitive	2386
matching grants to rural and suburban school districts for	2387
alternative educational programs for existing and new at-risk and	2388
delinquent youth. Programs shall be focused on youth in one or	2389
more of the following categories: those who have been expelled or	2390
suspended, those who have dropped out of school or who are at risk	2391
of dropping out of school, those who are habitually truant or	2392
disruptive, or those on probation or on parole from a Department	2393
of Youth Services facility. Grants shall be awarded according to	2394
the criteria established by the Alternative Education Advisory	2395
Council in 1999. Grants shall be awarded only to programs where	2396
the grant would not serve as the program's primary source of	2397
funding. These grants shall be administered by the Department of	2398
Education.	2399

The Department of Education may waive compliance with any	2400
minimum education standard established under section 3301.07 of	2401
the Revised Code for any alternative school that receives a grant	2402
under this section on the grounds that the waiver will enable the	2403
program to more effectively educate students enrolled in the	2404
alternative school.	2405

Of the foregoing appropriation item 200-421, Alternative	2406
Education Programs, up to $480,552 in each fiscal year may be used	2407
for program administration, monitoring, technical assistance,	2408
support, research, and evaluation. Any unexpended balance may be	2409
used to provide additional matching grants to urban, suburban, or	2410
rural school districts as outlined above.	2411

Of the foregoing appropriation item 200-421, Alternative	2412
Education Programs, $313,386 in each fiscal year shall be used to	2413
contract with the Center for Learning Excellence at The Ohio State	2414
University to provide technical support for the project and the	2415
completion of formative and summative evaluation of the grants.	2416

Of the foregoing appropriation item 200-421, Alternative	2417
Education Programs, up to $700,000 in each fiscal year shall be	2418
used to support Amer-I-Can. Of this set aside, no funds shall be	2419
disbursed without approval of the Controlling Board. Amer-I-Can	2420
programs shall submit to the Controlling Board a biennial spending	2421
plan that delineates how these funds will be spent. Amer-I-can	2422
programs also shall demonstrate to the Controlling Board that they	2423
have hired an independent evaluator and have selected valid and	2424
reliable instruments to assess pre and post changes in student	2425
behavior.	2426

Of the foregoing appropriation item 200-421, Alternative	2427
Education Programs, $75,000 in each fiscal year shall be used to	2428
support the Turning Point Applied Learning Center.	2429

Of the foregoing appropriation item 200-421, Alternative	2430
Education Programs, $15,000 in each fiscal year shall be used to	2431
support the Bucyrus After School Enrichment Program.	2432

SCHOOL MANAGEMENT ASSISTANCE

2433

Of the foregoing appropriation item 200-422, School	2434
Management Assistance, $700,000 in fiscal year 2002 and $400,000	2435
in fiscal year 2003 shall be used by the Auditor of State for	2436
expenses incurred in the Auditor of State's role relating to	2437
fiscal caution activities as defined in Chapter 3316. of the	2438
Revised Code. Expenses include duties related to the completion of	2439
performance audits for school districts that the Superintendent of	2440
Public Instruction determines are employing fiscal practices or	2441
experiencing budgetary conditions that could produce a state of	2442
fiscal watch or fiscal emergency.	2443

The remainder of foregoing appropriation item 200-422, School	2444
Management Assistance, shall be used by the Department of	2445
Education to provide fiscal technical assistance and inservice	2446
education for school district management personnel and to	2447
administer, monitor, and implement the fiscal watch and fiscal	2448
emergency provisions under Chapter 3316. of the Revised Code.	2449

POLICY ANALYSIS

2450

The foregoing appropriation item 200-424, Policy Analysis,	2451
shall be used by the Department of Education to support a system	2452
of administrative, statistical, and legislative education	2453
information to be used for policy analysis. Staff supported by	2454
this appropriation shall administer the development of reports,	2455
analyses, and briefings to inform education policymakers of	2456
current trends in education practice, efficient and effective use	2457
of resources, and evaluation of programs to improve education	2458
results. The database shall be kept current at all times. These	2459
research efforts shall be used to supply information and analysis	2460
of data to the General Assembly and other state policymakers,	2461
including the Office of Budget and Management and the Legislative	2462
Service Commission.	2463

The Department of Education may use funding from this	2464
appropriation item to purchase or contract for the development of	2465
software systems or contract for policy studies that will assist	2466
in the provision and analysis of policy-related information.	2467
Funding from this appropriation item also may be used to monitor	2468
and enhance quality assurance for research-based policy analysis	2469
and program evaluation to enhance the effective use of education	2470
information to inform education policymakers.	2471

TECH PREP ADMINISTRATION

2472

The foregoing appropriation item 200-425, Tech Prep	2473
Administration, shall be used by the Department of Education to	2474
support state-level activities designed to support, promote, and	2475
expand tech prep programs. Use of these funds shall include, but	2476
not be limited to, administration of grants, program evaluation,	2477
professional development, curriculum development, assessment	2478
development, program promotion, communications, and statewide	2479
coordination of tech prep consortia.	2480

OHIO EDUCATIONAL COMPUTER NETWORK

2481

The foregoing appropriation item 200-426, Ohio Educational	2482
Computer Network, shall be used by the Department of Education to	2483
maintain a system of information technology throughout Ohio and to	2484
provide technical assistance for such a system in support of the	2485
State Education Technology Plan pursuant to section 3301.07 of the	2486
Revised Code.	2487

Of the foregoing appropriation item 200-426, Ohio Educational	2488
Computer Network, up to $20,571,198 in fiscal year 2002 and up to	2489
$21,188,334 in fiscal year 2003 shall be used by the Department of	2490
Education to support connection of all public school buildings to	2491
the state's education network, to each other, and to the Internet.	2492
In each fiscal year the Department of Education shall use these	2493
funds to help reimburse data acquisition sites or school districts	2494
for the operational costs associated with this connectivity. The	2495
Department of Education shall develop a formula and guidelines for	2496
the distribution of these funds to the data acquisition sites or	2497
individual school districts. As used in this section, "public	2498
school building" means a school building of any city, local,	2499
exempted village, or joint vocational school district, or any	2500
community school established under Chapter 3314. of the Revised	2501
Code, or any educational service center building used for	2502
instructional purposes.	2503

Of the foregoing appropriation item 200-426, Ohio Educational	2504
Computer Network, up to $2,043,938 in fiscal year 2002 and up to	2505
$2,095,037 in fiscal year 2003 shall be used for the Union Catalog	2506
and InfOhio Network.	2507

The Department of Education shall use up to $4,590,000 in	2508
fiscal year 2002 and up to $4,727,700 in fiscal year 2003 to	2509
assist designated data acquisition sites with operational costs	2510
associated with the increased use of the state's education network	2511
by chartered nonpublic schools. The Department of Education shall	2512
develop a formula and guidelines for distribution of these funds	2513
to designated data acquisition sites.	2514

The remainder in each fiscal year of appropriation item	2515
200-426, Ohio Educational Computer Network, shall be used to	2516
support development, maintenance, and operation of a network of	2517
uniform and compatible computer-based information and	2518
instructional systems. The technical assistance shall include, but	2519
not be restricted to, development and maintenance of adequate	2520
computer software systems to support network activities. Program	2521
funds may be used, through a formula and guidelines devised by the	2522
department, to subsidize the activities of not more than 24	2523
designated data acquisition sites, as defined by State Board of	2524
Education rules, to provide school districts and chartered	2525
nonpublic schools with computer-based student and teacher	2526
instructional and administrative information services, including	2527
approved computerized financial accounting, and to ensure the	2528
effective operation of local automated administrative and	2529
instructional systems. To broaden the scope of the use of	2530
technology for education, the department may use up to $250,000 in	2531
each fiscal year to coordinate the activities of the computer	2532
network with other agencies funded by the department or the state.	2533
In order to improve the efficiency of network activities, the	2534
department and data acquisition sites may jointly purchase	2535
equipment, materials, and services from funds provided under this	2536
appropriation for use by the network and, when considered	2537
practical by the department, may utilize the services of	2538
appropriate state purchasing agencies.	2539

ACADEMIC STANDARDS

2540

The foregoing appropriation item 200-427, Academic Standards,	2541
shall be used by the Department of Education to develop and	2542
disseminate academic content standards. These funds shall be used	2543
to develop academic content standards and curriculum models and to	2544
fund communication of expectations to teachers, school districts,	2545
parents, and communities."	2546

Section 4. That existing Section 44.05 of Am. Sub. H.B. 94 of	2547
the 124th General Assembly is hereby repealed.	2548

Section 5. The Legislative Office of Education Oversight	2549
shall conduct a study of the methodologies and statutory systems	2550
used in other states to fund independent public charter schools	2551
that are similar to the community schools established under	2552
Chapter 3314. of the Revised Code and determine how those	2553
methodologies and systems compare to those codified in Chapter	2554
3314. of the Revised Code. The Office shall issue a written	2555
report to the General Assembly not later than January 31, 2003.	2556

Section 6. The State Board of Education shall continue to	2557
sponsor any community school for which it has entered into a	2558
contract at the time of the effective date of this section until	2559
the earlier of the expiration of two school years or until a new	2560
sponsor, as described in division (C)(1) of section 3314.02 of the	2561
Revised Code, as amended by this act, is secured by the school's	2562
governing authority. The State Board shall not thereafter sponsor	2563
any community school except as provided in division (C) of section	2564
3314.015 of the Revised Code. The State Board may extend the term	2565
of any existing contract with a community school governing	2566
authority only as necessary to accommodate the term of the Board's	2567
authorization to sponsor the school as specified in this section.	2568

Any other entity who has contracted to sponsor a community	2569
school on the effective date of this section shall continue to	2570
sponsor such school in conformance with the contract and Chapter	2571
3314. of the Revised Code, as amended by this act, except that	2572
such sponsor need not be approved by the Department of Education	2573
as otherwise provided by division (B) of section 3314.015 of the	2574
Revised Code. In addition, such an entity may sponsor additional	2575
new start-up schools in accordance with the provisions of division	2576
(C)(1) of section 3314.02 of the Revised Code, as amended by this	2577
act, without the approval of the Department of Education provided	2578
that the entity complies with all other provisions of Chapter	2579
3314. of the Revised Code, as amended by this act.	2580

Section 7. Not later than ninety days after the effective	2581
date of this section, the Department of Education shall adopt	2582
rules for the procedures, criteria, and deadlines for the	2583
approval, oversight, and revocation of approval of sponsors of new	2584
start-up community schools and for entering into written	2585
agreements with sponsors as provided for under section 3314.015 of	2586
the Revised Code. The rules may require sponsors to respond in a	2587
timely manner to reasonable requests from the Department for	2588
information, data, and documents. In developing the rules, the	2589
Department shall consult with the other entities that on the	2590
effective date of this section have existing contracts to sponsor	2591
community schools.	2592