REPRESENTATIVE Carey

To amend sections 133.07, 3301.075, 3301.80, 3313.37,

1

3313.608, 3314.08, 3317.012, 3317.013, 3317.02,

2

3317.022, 3317.023, 3317.029, 3317.0212, 3317.03,

3

3317.05, 3317.051, 3317.11, 3317.16, 3317.161,

4

3317.162, 3317.20, 3318.31, 3319.19, 3323.09,

5

3323.091, 3333.02, 3333.03, 3333.12, 3333.13,

6

3770.02, 3770.03, 3770.06, 5126.05, and 5126.12;

7

to amend, for the purpose of adopting new section

8

numbers as indicated in parentheses, sections

9

3317.161 (3317.052) and 3317.162 (3317.053); and

10

to repeal section 307.031 of the Revised Code and

11

to amend Section 18 of Am. Sub. H.B. 650 of the

12

122nd General Assembly, as subsequently amended,

13

and Section 17 of Am. Sub. H.B. 282 of the 123rd

14

General Assembly, as subsequently amended, to make

15

appropriations for education programs for the

16

biennium beginning July 1, 2001, and ending June

17

30, 2003, and to provide authorization and

18

conditions for the operation of education

19

programs.

20

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

Section 1. That sections 133.07, 3301.075, 3301.80, 3313.37,	21
3313.608, 3314.08, 3317.012, 3317.013, 3317.02, 3317.022,	22
3317.023, 3317.029, 3317.0212, 3317.03, 3317.05, 3317.051,	23
3317.11, 3317.16, 3317.161, 3317.162, 3317.20, 3318.31, 3319.19,	24
3323.09, 3323.091, 3333.02, 3333.03, 3333.12, 3333.13, 3770.02,	25
3770.03, 3770.06, 5126.05, and 5126.12 be amended and sections	26
3317.161 (3317.052) and 3317.162 (3317.053) be amended for the	27
purpose of adopting new section numbers as indicated in	28
parentheses, to read as follows:	29

Sec. 133.07.  (A) A county shall not incur, without a vote	30
of the electors, either of the following:	31

(1) Net indebtedness for all purposes that exceeds an amount	32
equal to one per cent of its tax valuation;	33

(2) Net indebtedness for the purpose of paying the county's	34
share of the cost of the construction, improvement, maintenance,	35
or repair of state highways that exceeds an amount equal to	36
one-half of one per cent of its tax valuation.	37

(B) A county shall not incur total net indebtedness that	38
exceeds an amount equal to one of the following limitations that	39
applies to the county:	40

(1) A county with a valuation not exceeding one hundred	41
million dollars, three per cent of that tax valuation;	42

(2) A county with a tax valuation exceeding one hundred	43
million dollars but not exceeding three hundred million dollars,	44
three million dollars plus one and one-half per cent of that tax	45
valuation in excess of one hundred million dollars;	46

(3) A county with a tax valuation exceeding three hundred	47
million dollars, six million dollars plus two and one-half per	48
cent of that tax valuation in excess of three hundred million	49
dollars.	50

(C) In calculating the net indebtedness of a county, none of	51
the following securities shall be considered:	52

(1) Securities described in section 307.201 of the Revised	53
Code;	54

(2) Self-supporting securities issued for any purposes,	55
including, but not limited to, any of the following general	56
purposes:	57

(a) Water systems or facilities;

58

(b) Sanitary sewerage systems or facilities, or surface and	59
storm water drainage and sewerage systems or facilities, or a	60
combination of those systems or facilities;	61

(c) County or joint county scrap tire collection, storage,	62
monocell, monofill, or recovery facilities, or any combination of	63
those facilities;	64

(d) Off-street parking lots, facilities, or buildings, or	65
on-street parking facilities, or any combination of off-street and	66
on-street parking facilities;	67

(e) Facilities for the care or treatment of the sick or	68
infirm, and for housing the persons providing that care or	69
treatment and their families;	70

(f) Recreational, sports, convention, auditorium, museum,	71
trade show, and other public attraction facilities;	72

(g) Facilities for natural resources exploration,	73
development, recovery, use, and sale;	74

(h) Correctional and detention facilities and related	75
rehabilitation facilities.	76

(3) Securities issued for the purpose of purchasing,	77
constructing, improving, or extending water or sanitary or surface	78
and storm water sewerage systems or facilities, or a combination	79
of those systems or facilities, to the extent that an agreement	80
entered into with another subdivision requires the other	81
subdivision to pay to the county amounts equivalent to debt	82
charges on the securities;	83

(4) Voted general obligation securities issued for the	84
purpose of permanent improvements for sanitary sewerage or water	85
systems or facilities to the extent that the total principal	86
amount of voted securities outstanding for the purpose does not	87
exceed an amount equal to two per cent of the county's tax	88
valuation;	89

(5) Securities issued for permanent improvements to house	90
agencies, departments, boards, or commissions of the county or of	91
any municipal corporation located, in whole or in part, in the	92
county, to the extent that the revenues, other than revenues from	93
unvoted county property taxes, derived from leases or other	94
agreements between the county and those agencies, departments,	95
boards, commissions, or municipal corporations relating to the use	96
of the permanent improvements are sufficient to cover the cost of	97
all operating expenses of the permanent improvements paid by the	98
county and debt charges on the securities;	99

(6) Securities issued pursuant to section 133.08 of the	100
Revised Code;	101

(7) Securities issued for the purpose of acquiring or	102
constructing roads, highways, bridges, or viaducts, for the	103
purpose of acquiring or making other highway permanent	104
improvements, or for the purpose of procuring and maintaining	105
computer systems for the office of the clerk of any	106
county-operated municipal court, for the office of the clerk of	107
the court of common pleas, or for the office of the clerk of the	108
probate, juvenile, or domestic relations division of the court of	109
common pleas to the extent that the legislation authorizing the	110
issuance of the securities includes a covenant to appropriate from	111
moneys distributed to the county pursuant to division (B) of	112
section 2101.162, 2151.541, 2153.081, 2301.031, or 2303.201 or	113
Chapter 4501., 4503., 4504., or 5735. of the Revised Code a	114
sufficient amount to cover debt charges on and financing costs	115
relating to the securities as they become due;	116

(8) Securities issued for the purpose of acquiring,	117
constructing, improving, and equipping a county, multicounty, or	118
multicounty-municipal jail, workhouse, juvenile detention	119
facility, or correctional facility;	120

(9) Securities issued for the acquisition, construction,	121
equipping, or repair of any permanent improvement or any class or	122
group of permanent improvements enumerated in a resolution adopted	123
pursuant to division (D) of section 5739.026 of the Revised Code	124
to the extent that the legislation authorizing the issuance of the	125
securities includes a covenant to appropriate from moneys received	126
from the taxes authorized under section 5739.023 and division	127
(A)(5) of section 5739.026 of the Revised Code an amount	128
sufficient to pay debt charges on the securities and those moneys	129
shall be pledged for that purpose;	130

(10) Securities issued for county or joint county solid	131
waste or hazardous waste collection, transfer, or disposal	132
facilities, or resource recovery and solid or hazardous waste	133
recycling facilities, or any combination of those facilities;	134

(11) Securities issued for the acquisition, construction,	135
and equipping of a port authority educational and cultural	136
facility under section 307.671 of the Revised Code;	137

(12) Securities issued for the acquisition, construction,	138
equipping, and improving of a municipal educational and cultural	139
facility under division (B)(1) of section 307.672 of the Revised	140
Code;	141

(13) Securities issued for energy conservation measures	142
under section 307.041 of the Revised Code;	143

(14) Securities issued for the acquisition, construction,	144
equipping, improving, or repair of a sports facility, including	145
obligations issued to pay costs of a sports facility under section	146
307.673 of the Revised Code;	147

(15) Securities issued under section 755.17 of the Revised	148
Code if the legislation authorizing issuance of the securities	149
includes a covenant to appropriate from revenue received from a	150
tax authorized under division (A)(5) of section 5739.026 and	151
section 5741.023 of the Revised Code an amount sufficient to pay	152
debt charges on the securities, and the board of county	153
commissioners pledges that revenue for that purpose, pursuant to	154
section 755.171 of the Revised Code;	155

(16) Sales tax supported bonds issued pursuant to section	156
133.081 of the Revised Code for the purpose of acquiring,	157
constructing, improving, or equipping any permanent improvement to	158
the extent that the legislation authorizing the issuance of the	159
sales tax supported bonds pledges county sales taxes to the	160
payment of debt charges on the sales tax supported bonds and	161
contains a covenant to appropriate from county sales taxes a	162
sufficient amount to cover debt charges or the financing costs	163
related to the sales tax supported bonds as they become due.;	164

(17) Bonds or notes issued under section 133.60 of the	165
Revised Code if the legislation authorizing issuance of the bonds	166
or notes includes a covenant to appropriate from revenue received	167
from a tax authorized under division (A)(9) of section 5739.026	168
and section 5741.023 of the Revised Code an amount sufficient to	169
pay the debt charges on the bonds or notes, and the board of	170
county commissioners pledges that revenue for that purpose.;	171

(18) Securities issued under section 3707.55 of the Revised	172
Code for the acquisition of real property by a general health	173
district;	174

(19) Securities issued under division (A)(3) of section	175
3313.37 of the Revised Code for the acquisition of real and	176
personal property by an educational service center.	177

(D) In calculating the net indebtedness of a county, no	178
obligation incurred under division (D) of section 339.06 of the	179
Revised Code shall be considered.	180

Sec. 3301.075.  The state board of education shall adopt	181
rules governing the purchasing and leasing of data processing	182
services and equipment for all local, exempted village, city, and	183
joint vocational school districts and all educational service	184
centers. Such rules shall include provisions for the	185
establishment of an Ohio education computer network under	186
procedures, guidelines, and specifications of the department of	187
education.	188

The department shall administer funds appropriated for the	189
Ohio education computer network to ensure its efficient and	190
economical operation and shall approve no more than twenty-seven	191
data acquisition sites to operate concurrently. Such sites shall	192
be approved for funding in accordance with rules of the state	193
board adopted under this section that shall provide for the	194
superintendent of public instruction to require the membership of	195
each data acquisition site to be composed of combinations of	196
school districts and educational service centers from contiguous	197
counties having sufficient students to support an efficient,	198
economical comprehensive program of computer services to member	199
districts and educational service centers. Each data acquisition	200
site, other than sites organized under Chapter 167. of the Revised	201
Code prior to the effective date of this section, shall be	202
organized in accordance with section 3313.92 or Chapter 167. of	203
the Revised Code.	204

The department of education may contract with an independent	205
for profit or nonprofit entity to provide current and historical	206
information on Ohio government through the Ohio education computer	207
network to school district libraries operating in accordance with	208
section 3375.14 of the Revised Code in order to assist school	209
teachers in social studies course instruction and support student	210
research projects. Any such contract shall be awarded in	211
accordance with Chapter 125. of the Revised Code.	212

Sec. 3301.80.  (A) There is hereby created the Ohio	213
SchoolNet commission as an independent agency. The commission	214
shall administer programs to provide financial and other	215
assistance to school districts and other educational institutions	216
for the acquisition and utilization of educational technology.	217

The commission is a body corporate and politic, an agency of	218
the state performing essential governmental functions of the	219
state.	220

(B)(1) The commission shall consist of eleven members, seven	221
of whom are voting members. Of the voting members, one shall be	222
appointed by the speaker of the house of representatives and one	223
shall be appointed by the president of the senate. The members	224
appointed by the speaker of the house and the president of the	225
senate shall not be members of the general assembly. The state	226
superintendent of public instruction or a designee of the	227
superintendent, the director of budget and management or a	228
designee of the director, the director of administrative services	229
or a designee of the director, the chairperson of the public	230
utilities commission or a designee of the chairperson, and the	231
director of the Ohio educational telecommunications network	232
commission or a designee of the director shall serve on the	233
commission as ex officio voting members. Of the nonvoting	234
members, two shall be members of the house of representatives	235
appointed by the speaker of the house and two shall be members of	236
the senate appointed by the president of the senate. The members	237
appointed from each house shall not be members of the same	238
political party. The superintendent of public instruction or the	239
superintendent's designee shall be the chairperson of the	240
commission.	241

(2) The members shall serve without compensation. The	242
voting members appointed by the speaker of the house of	243
representatives and the president of the senate shall be	244
reimbursed, pursuant to office of budget and management	245
guidelines, for necessary expenses incurred in the performance of	246
official duties.	247

(3) The terms of office for the members appointed by the	248
speaker of the house and the president of the senate shall be for	249
two years, with each term ending on the same day of the same month	250
as did the term that it succeeds. The members appointed by the	251
speaker of the house and the president of the senate may be	252
reappointed. Any member appointed from the house of	253
representatives or senate who ceases to be a member of the	254
legislative house from which the member was appointed shall cease	255
to be a member of the commission. Vacancies among appointed	256
members shall be filled in the manner provided for original	257
appointments. Any member appointed to fill a vacancy occurring	258
prior to the expiration date of the term for which a predecessor	259
was appointed shall hold office as a member for the remainder of	260
that term. The members appointed by the speaker of the house and	261
the president of the senate shall continue in office subsequent to	262
the expiration date of that member's term until a successor takes	263
office or until a period of sixty days has elapsed, whichever	264
occurs first.	265

(C)(1) The commission shall be under the supervision of an	266
executive director who shall be appointed by the commission. The	267
executive director shall serve at the pleasure of the commission	268
and shall direct commission employees in the administration of all	269
programs for the provision of financial and other assistance to	270
school districts and other educational institutions for the	271
acquisition and utilization of educational technology.	272

(2) The employees of the Ohio SchoolNet commission shall be	273
placed in the unclassified service. The commission shall fix the	274
compensation of the executive director. The executive director	275
shall employ and fix the compensation for such employees as	276
necessary to facilitate the activities and purposes of the	277
commission. The employees shall serve at the pleasure of the	278
executive director.	279

(3) The employees of the Ohio SchoolNet commission shall be	280
exempt from Chapter 4117. of the Revised Code and shall not be	281
public employees as defined in section 4117.01 of the Revised	282
Code.	283

(D) The Ohio SchoolNet commission shall do all of the	284
following:	285

(1) Make grants to institutions and other organizations as	286
prescribed by the general assembly for the provision of technical	287
assistance, professional development, and other support services	288
to enable school districts, community schools established under	289
Chapter 3314. of the Revised Code, and other educational	290
institutions to utilize educational technology;	291

(2) Contract with the department of education, state	292
institutions of higher education, private nonprofit institutions	293
of higher education holding certificates of authorization under	294
section 1713.02 of the Revised Code, and such other public or	295
private entities as the executive director deems necessary for the	296
administration and implementation of the programs under the	297
commission's jurisdiction;	298

(3) Establish a reporting system to which school districts,	299
community schools established under Chapter 3314. of the Revised	300
Code, and other educational institutions receiving financial	301
assistance pursuant to this section for the acquisition of	302
educational technology report information as to the manner in	303
which such assistance was expended, the manner in which the	304
equipment or services purchased with the assistance is being	305
utilized, the results or outcome of this utilization, and other	306
information as may be required by the commission;	307

(4) Establish necessary guidelines governing purchasing and	308
procurement by participants in programs administered by the	309
commission that facilitate the timely and effective implementation	310
of such programs;	311

(5) Take into consideration the efficiency and cost savings	312
of statewide procurement prior to allocating and releasing funds	313
for any programs under its administration.	314

(E)(1) The executive director shall implement policies and	315
directives issued by the Ohio SchoolNet commission.	316

(2) The Ohio SchoolNet commission may establish a systems	317
support network to facilitate the timely implementation of the	318
programs, projects, or activities for which it provides	319
assistance.	320

(3) Chapters 123., 124., 125., and 153., and sections 9.331,	321
9.332, and 9.333 of the Revised Code do not apply to contracts,	322
programs, projects, or activities of the Ohio SchoolNet	323
commission.	324

Sec. 3313.37.  (A)(1) The board of education of any city,	325
local, or exempted village school district may build, enlarge,	326
repair, and furnish the necessary schoolhouses, purchase or lease	327
sites therefor, or rights-of-way thereto, or purchase or lease	328
real estate to be used as playgrounds for children or rent	329
suitable schoolrooms, either within or without the district, and	330
provide the necessary apparatus and make all other necessary	331
provisions for the schools under its control. The governing board	332
of any educational service center may build, enlarge, repair, and	333
furnish the necessary facilities for conducting special education	334
programs and driver education courses, purchase or lease sites	335
therefor, or rights-of-way thereto, or purchase or lease real	336
estate or rent suitable facilities to be used for such purposes	337
and provide the necessary apparatus and make all other necessary	338
provisions for such facilities as are under its control.	339

(2) A governing board of an educational service center may	340
acquire, lease, or enter into a contract to purchase, lease, or	341
sell real and personal property and may construct, enlarge,	342
repair, renovate, furnish, or equip facilities, buildings, or	343
structures for the educational service center's purposes. The	344
board may enter into loan agreements, including mortgages, for the	345
acquisition of such property. If a governing board exercises any	346
of these powers to acquire office or classroom space, the board of	347
county commissioners has no obligation to provide and equip	348
offices and to provide heat, light, water, and janitorial services	349
for the use of the service center pursuant to section 3319.19 of	350
the Revised Code, unless there is a contract as provided by	351
division (D) of that section.	352

(3) A board of county commissioners may issue securities of	353
the county pursuant to Chapter 133. of the Revised Code for the	354
acquisition of real and personal property or for the construction,	355
enlargement, repair, or renovation of facilities, buildings, or	356
structures by an educational service center, but only if the	357
county has a contract under division (D) of section 3319.19 of the	358
Revised Code with the educational service center whereby the	359
educational service center agrees to pay the county an amount	360
equal to the debt charges on the issued securities on or before	361
the date those charges fall due. For the purposes of this	362
section, "debt charges" and "securities" have the same meanings as	363
in section 133.01 of the Revised Code.	364

(B)(1) Boards of education of city, local, and exempted	365
village school districts may acquire land by gift or devise, by	366
purchase, or by appropriation. Lands purchased may be purchased	367
for cash, by installment payments, with or without a mortgage, by	368
entering into lease-purchase agreements, or by lease with an	369
option to purchase, provided that if the purchase price is to be	370
paid over a period of time, such payments shall not extend for a	371
period of more than five years. A special tax levy may be	372
authorized by the voters of the school district in accordance with	373
section 5705.21 of the Revised Code to provide a special fund to	374
meet the future time payments.	375

(2) For the purposes of section 5705.21 of the Revised Code,	376
acquisition of land under the provisions of this division shall be	377
considered a necessary requirement of the school district.	378

(3) Boards of education of city, local, and exempted village	379
school districts may acquire federal land at a discount by a	380
lease-purchase agreement for use as a site for the construction of	381
educational facilities or for other related purposes. External	382
administrative and other costs pertaining to the acquisition of	383
federal land at a discount may be paid from funds available to the	384
school district for operating purposes. Such boards of education	385
may also acquire federal land by lease-purchase agreements, by	386
negotiation, or otherwise.	387

(4) As used in this division:

388

(a) "Office equipment" includes but is not limited to	389
typewriters, copying and duplicating equipment, and computer and	390
data processing equipment.	391

(b) "Software for instructional purposes" includes computer	392
programs usable for computer assisted instruction, computer	393
managed instruction, drill and practice, and problem simulations.	394

A board of education or governing board of an educational	395
service center may acquire the necessary office equipment, and	396
computer hardware and software for instructional purposes, for the	397
schools under its control by purchase, by lease, by installment	398
payments, by entering into lease-purchase agreements, or by lease	399
with an option to purchase. In the case of a city, exempted	400
village, or local school district, if the purchase price is to be	401
paid over a period of time, the contract setting forth the terms	402
of such purchase shall be considered a continuing contract	403
pursuant to section 5705.41 of the Revised Code. Payments shall	404
not extend for a period of more than five years. Costs relating	405
to the acquisition of necessary apparatus may be paid from funds	406
available to the school district or educational service center for	407
operating purposes.	408

(5) A board of education or governing board of an	409
educational service center may acquire the necessary equipment for	410
the maintenance or physical upkeep of facilities and land under	411
its control by entering into lease-purchase agreements. If	412
payments under the lease-purchase agreement are to be made over a	413
period of time, the agreement shall be considered a continuing	414
contract pursuant to section 5705.41 of the Revised Code, and such	415
payments shall not extend for a period of more than five years.	416

Sec. 3313.608.  (A) Beginning with students who enter fourth	417
grade in the school year that starts July 1, 2001, no city,	418
exempted village, or local school district shall promote to fifth	419
grade any student who fails to attain the score designated under	420
division (A)(1) of section 3301.0710 of the Revised Code on the	421
test prescribed under that division to measure skill in reading,	422
unless either of the following applies:	423

(1) The pupil was excused from taking the test under	424
division (C)(1) of section 3301.0711 of the Revised Code;	425

(2) The pupil's principal and reading teacher agree that the	426
pupil is academically prepared, as determined pursuant to the	427
district policy adopted under section 3313.609 of the Revised	428
Code, to be promoted to fifth grade.	429

(B)(1) To assist students in meeting this fourth grade	430
guarantee established by this section, each city, exempted	431
village, and local school district shall adopt policies and	432
procedures with which it shall, beginning in the school year that	433
starts July 1, 1998, annually assess the reading skills of each	434
student at the end of kindergarten, first, second, and third grade	435
and identify students who are reading below their grade level. The	436

(2) The policy and procedures shall require the students'	437
classroom teachers to be involved in the assessment and the	438
identification of students reading below grade level. The	439
district shall notify the parent or guardian of each student whose	440
reading skills are below grade level and, in accordance with	441
division (C) of this section, provide intervention services to	442
each student reading below grade level.	443

(2) For each student identified as reading below grade level	444
at the end of third grade, the district shall offer intense	445
remediation services during the summer following third grade.	446

(3) For each student entering fourth grade after July 1,	447
2001, who does not attain by the end of the fourth grade the score	448
designated under division (A)(1) of section 3301.0710 of the	449
Revised Code on the test prescribed under that division to measure	450
skill in reading, the district also shall offer intense	451
remediation intervention services, and another opportunity to take	452
that test, during the summer following fourth grade.	453

(C) For each student required to be offered remediation	454
intervention services under this section, the district shall	455
involve the student's parent or guardian and classroom teacher in	456
developing the intervention strategy, and shall offer to the	457
parent or guardian the opportunity to be involved in the	458
intervention services.	459

(D) Beginning in the summer of 1999, in addition to the	460
remediation intervention requirements of divisions (B) and (C) of	461
this section, every city, exempted village, or local school	462
district shall offer intervention services during the summer	463
remediation and, if needed, during the following school year to	464
any student who has failed to attain the designated scores on	465
three or more of the five tests described by division (A)(1) or	466
(2) of section 3301.0710 of the Revised Code.	467

(E) Any summer remediation intervention services funded in	468
whole or in part by the state and offered by school districts to	469
students under this section shall meet the following conditions:	470

(1) The remediation intervention methods are based on	471
reliable educational research.	472

(2) The school districts conduct testing before and after	473
assess students participate in the program to facilitate	474
monitoring results of the remediation who receive the intervention	475
services.	476

(3) The parents of participating students are involved in	477
programming decisions.	478

(4) The services are conducted in a school building or	479
community center and not on an at-home basis.	480

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

481

(1) "Base formula amount" means the amount specified as such	482
in a community school's financial plan for a school year pursuant	483
to division (A)(15) of section 3314.03 of the Revised Code.	484

(2) "Cost-of-doing-business factor" has the same meaning as	485
in section 3317.02 of the Revised Code.	486

(3) "IEP" means an individualized education program as	487
defined in section 3323.01 of the Revised Code.	488

(4) "Applicable weight" means:

489

(a) For a student receiving special education and related	490
services pursuant to an IEP for a handicap described in division	491
(A) of section 3317.013 of the Revised Code, the multiple	492
specified in that division;	493

(b) For a student receiving special education and related	494
services pursuant to an IEP for a handicap described in division	495
(B) of section 3317.013 or division (F)(3) of section 3317.02 of	496
the Revised Code, the multiple specified in division (B) of	497
section 3317.013 of the Revised Code.	498

(5) "Total special education weight" means the sum of the	499
following:	500

(a) The number of students reported under division (B)(2)(c)	501
of this section who are entitled to attend school in the district,	502
are enrolled in grades one through twelve in a community school,	503
and are receiving from their community school special education	504
and related services pursuant to an IEP for a handicap described	505
in division (A) of section 3317.013 of the Revised Code,	506
multiplied by the multiple specified in division (A) of section	507
3317.013 of the Revised Code;	508

(b) One-half the number of students reported under division	509
(B)(2)(c) of this section who are entitled to attend school in the	510
district, are enrolled in kindergarten in a community school, and	511
are receiving from their community school special education and	512
related services pursuant to an IEP for a handicap described in	513
division (A) of section 3317.013 of the Revised Code, multiplied	514
by the multiple specified in division (A) of section 3317.013 of	515
the Revised Code;	516

(c) The number of students reported under division (B)(2)(c)	517
of this section who are entitled to attend school in the district,	518
are enrolled in grades one through twelve in a community school,	519
and are receiving from their community school special education	520
and related services pursuant to an IEP for a handicap described	521
in division (B) of section 3317.013 or division (F)(3) of section	522
3317.02 of the Revised Code, multiplied by the multiple specified	523
in division (B) of section 3317.013 of the Revised Code;	524

(d) One-half the number of students reported under division	525
(B)(2)(c) of this section who are entitled to attend school in the	526
district, are enrolled in kindergarten in a community school, and	527
are receiving from their community school special education and	528
related services pursuant to an IEP for a handicap described in	529
division (B) of section 3317.013 or division (F)(3) of section	530
3317.02 of the Revised Code, multiplied by the multiple specified	531
in division (B) of section 3317.013 of the Revised Code.	532

(6) "Entitled to attend school" means entitled to attend	533
school in a district under section 3313.64 or 3313.65 of the	534
Revised Code.	535

(7) "DPIA reduction factor" means the percentage figure, if	536
any, for reducing the per pupil amount of disadvantaged pupil	537
impact aid a community school is entitled to receive pursuant to	538
divisions (D)(4) and (5) of this section in any year, as specified	539
in the school's financial plan for the year pursuant to division	540
(A)(15) of section 3314.03 of the Revised Code.	541

(8) "All-day kindergarten" has the same meaning as in section	542
3317.029 of the Revised Code.	543

(B) The state board of education shall adopt rules requiring	544
both of the following:	545

(1) The board of education of each city, exempted village,	546
and local school district to annually report the number of	547
students entitled to attend school in the district who are	548
enrolled in grades one through twelve in a community school	549
established under this chapter, the number of students entitled to	550
attend school in the district who are enrolled in kindergarten in	551
a community school, the number of those kindergartners who are	552
enrolled in all-day kindergarten in their community school, and	553
for each child, the community school in which the child is	554
enrolled.	555

(2) The governing authority of each community school	556
established under this chapter to annually report all of the	557
following:	558

(a) The number of students enrolled in grades one through	559
twelve and the number of students enrolled in kindergarten in the	560
school who are not receiving special education and related	561
services pursuant to an IEP;	562

(b) The number of enrolled students in grades one through	563
twelve and the number of enrolled students in kindergarten, who	564
are receiving special education and related services pursuant to	565
an IEP;	566

(c) The number of students reported under division (B)(2)(b)	567
of this section receiving special education and related services	568
pursuant to an IEP for a handicap described in each of divisions	569
(A) and (B) of section 3317.013 and division (F)(3) of section	570
3317.02 of the Revised Code;	571

(d) The number of enrolled preschool handicapped students	572
receiving special education services in a state-funded unit;	573

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

574

(f) For each student, the city, exempted village, or local	575
school district in which the student is entitled to attend school;	576

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

577

(C) From the payments made to a city, exempted village, or	578
local school district under Chapter 3317. of the Revised Code and,	579
if necessary, sections 321.14 and 323.156 of the Revised Code, the	580
department of education shall annually subtract all of the	581
following:	582

(1) An amount equal to the sum of the amounts obtained when,	583
for each community school where the district's students are	584
enrolled, the number of the district's students reported under	585
divisions (B)(2)(a) and (b) of this section who are enrolled in	586
grades one through twelve, and one-half the number of students	587
reported under those divisions who are enrolled in kindergarten,	588
in that community school is multiplied by the base formula amount	589
of that community school as adjusted by the school district's	590
cost-of-doing-business factor.	591

(2) The product of the number of district students reported	592
under division (B)(2)(c) of this section as enrolled in grades one	593
through twelve, and one-half of the number of district students	594
reported under that division as enrolled in kindergarten, who are	595
receiving special education and related services pursuant to an	596
IEP in their respective community schools for a handicap described	597
in division (A) or (B) of section 3317.013 or division (F)(3) of	598
section 3317.02 of the Revised Code, multiplied by the total	599
special education weight times the community school's base formula	600
amount;	601

(3) An amount equal to the sum of the amounts obtained when,	602
for each community school where the district's students are	603
enrolled, the number of the district's students enrolled in that	604
community school and residing in the district in a family	605
participating in Ohio works first under Chapter 5107. of the	606
Revised Code is multiplied by the per pupil amount of	607
disadvantaged pupil impact aid the school district receives that	608
year pursuant to division (B) or (C) of section 3317.029 of the	609
Revised Code, as adjusted by any DPIA reduction factor of that	610
community school. If the district receives disadvantaged pupil	611
impact aid under division (B) of that section, the per pupil	612
amount of that aid is the quotient of the amount the district	613
received under that division divided by the number of children	614
ages five through seventeen residing in the district and living in	615
a family participating in Ohio works first, as most recently	616
reported under section 3317.10 of the Revised Code. If the	617
district receives disadvantaged pupil impact aid under division	618
(C) of section 3317.029 of the Revised Code, the per pupil amount	619
of that aid is the per pupil dollar amount prescribed for the	620
district in division (C)(1) or (2) of that section.	621

(4) An amount equal to the sum of the amounts obtained when,	622
for each community school where the district's students are	623
enrolled, the district's per pupil amount of aid received under	624
division (E) of section 3317.029 of the Revised Code, as adjusted	625
by any DPIA reduction factor of the community school, is	626
multiplied by the sum of the following:	627

(a) The number of the district's students reported under	628
division (B)(2)(a) of this section who are enrolled in grades one	629
to three in that community school and who are not receiving	630
special education and related services pursuant to an IEP;	631

(b) One-half of the district's students who are enrolled in	632
all-day or any other kindergarten class in that community school	633
and who are not receiving special education and related services	634
pursuant to an IEP;	635

(c) One-half of the district's students who are enrolled in	636
all-day kindergarten in that community school and who are not	637
receiving special education and related services pursuant to an	638
IEP.	639

The district's per pupil amount of aid under division (E) of	640
section 3317.029 of the Revised Code is the quotient of the amount	641
the district received under that division divided by the	642
district's kindergarten through third grade ADM, as defined in	643
that section.	644

(D) The department shall annually pay to a community school	645
established under this chapter all of the following:	646

(1) An amount equal to the sum of the amounts obtained when	647
the number of students enrolled in grades one through twelve, plus	648
one-half of the kindergarten students in the school, reported	649
under divisions (B)(2)(a) and (b) of this section who are not	650
receiving special education and related services pursuant to an	651
IEP for a handicap described in division (A) or (B) of section	652
3317.013 or division (F)(3) of section 3317.02 of the Revised Code	653
is multiplied by the community school's base formula amount, as	654
adjusted by the cost-of-doing-business factor of the school	655
district in which the student is entitled to attend school;	656

(2) The greater of the following:

657

(a) The aggregate amount that the department paid to the	658
community school in fiscal year 1999 for students receiving	659
special education and related services pursuant to IEPs, excluding	660
federal funds and state disadvantaged pupil impact aid funds;	661

(b) The sum of the amounts calculated under divisions	662
(D)(2)(b)(i) and (ii) of this section:	663

(i) For each student reported under division (B)(2)(c) of	664
this section as enrolled in the school in grades one through	665
twelve and receiving special education and related services	666
pursuant to an IEP for a handicap described in division (A) or (B)	667
of section 3317.013 or division (F)(3) of section 3317.02 of the	668
Revised Code, the following amount:	669

(the community school's base formula amount X the

670

cost-of-doing-business factor of the district where the student

671

is entitled to attend school) + (the applicable weight

672

X the community school's base formula amount);

673

(ii) For each student reported under division (B)(2)(c) of	674
this section as enrolled in kindergarten and receiving special	675
education and related services pursuant to an IEP for a handicap	676
described in division (A) or (B) of section 3317.013 or division	677
(F)(3) of section 3317.02 of the Revised Code, one-half of the	678
amount calculated under the formula prescribed in division	679
(D)(2)(b)(i) of this section.	680

(3) An amount received from federal funds to provide special	681
education and related services to students in the community	682
school, as determined by the superintendent of public instruction.	683

(4) An amount equal to the sum of the amounts obtained when,	684
for each school district where the community school's students are	685
entitled to attend school, the number of that district's students	686
enrolled in the community school and participating in Ohio works	687
first is multiplied by the per pupil amount of disadvantaged pupil	688
impact aid that school district receives that year pursuant to	689
division (B) or (C) of section 3317.029 of the Revised Code, as	690
adjusted by any DPIA reduction factor of the community school. The	691
per pupil amount of aid shall be determined as described in	692
division (C)(3) of this section.	693

(5) An amount equal to the sum of the amounts obtained when,	694
for each school district where the community school's students are	695
entitled to attend school, the district's per pupil amount of aid	696
received under division (E) of section 3317.029 of the Revised	697
Code, as adjusted by any DPIA reduction factor of the community	698
school, is multiplied by the sum of the following:	699

(a) The number of the district's students reported under	700
division (B)(2)(a) of this section who are enrolled in grades one	701
to three in that community school and who are not receiving	702
special education and related services pursuant to an IEP;	703

(b) One-half of the district's students who are enrolled in	704
all-day or any other kindergarten class in that community school	705
and who are not receiving special education and related services	706
pursuant to an IEP;	707

(c) One-half of the district's students who are enrolled in	708
all-day kindergarten in that community school and who are not	709
receiving special education and related services pursuant to an	710
IEP.	711

The district's per pupil amount of aid under division (E) of	712
section 3317.029 of the Revised Code shall be determined as	713
described in division (C)(4) of this section.	714

(E) If a community school's costs for a fiscal year for a	715
student receiving special education and related services pursuant	716
to an IEP for a handicap described in section 3317.013 or division	717
(F)(3) of section 3317.02 of the Revised Code are twenty-five	718
thousand dollars or more, the school may submit to the	719
superintendent of public instruction documentation, as prescribed	720
by the superintendent, of all its costs for that student. Upon	721
submission of documentation for a student of the type and in the	722
manner prescribed, the department shall pay to the community	723
school an amount equal to the school's costs for the student in	724
excess of twenty-five thousand dollars.	725

The community school shall only report, and the department	726
shall only pay for, the costs of educational expenses and the	727
related services provided to the student in accordance with the	728
student's individualized education program. Any legal fees, court	729
costs, or other costs associated with any cause of action relating	730
to the student may not be included in the amount.	731

(F) A community school may apply to the department of	732
education for preschool handicapped or gifted unit funding the	733
school would receive if it were a school district. Upon request	734
of its governing authority, a community school that received unit	735
funding as a school district-operated school before it became a	736
community school shall retain any units awarded to it as a school	737
district-operated school provided the school continues to meet	738
eligibility standards for the unit.	739

A community school shall be considered a school district and	740
its governing authority shall be considered a board of education	741
for the purpose of applying to any state or federal agency for	742
grants that a school district may receive under federal or state	743
law or any appropriations act of the general assembly. The	744
governing authority of a community school may apply to any private	745
entity for additional funds.	746

(G) A board of education sponsoring a community school may	747
utilize local funds to make enhancement grants to the school or	748
may agree, either as part of the contract or separately, to	749
provide any specific services to the community school at no cost	750
to the school.	751

(H) A community school may not levy taxes or issue bonds	752
secured by tax revenues.	753

(I) No community school shall charge tuition for the	754
enrollment of any student.	755

(J) A community school may borrow money to pay any necessary	756
and actual expenses of the school in anticipation of the receipt	757
of any portion of the payments to be received by the school	758
pursuant to division (D) of this section. The school may issue	759
notes to evidence such borrowing to mature no later than the end	760
of the fiscal year in which such money was borrowed. The proceeds	761
of the notes shall be used only for the purposes for which the	762
anticipated receipts may be lawfully expended by the school.	763

(K) For purposes of determining the number of students for	764
which divisions (D)(4) and (5) of this section applies in any	765
school year, a community school may submit to the department of	766
job and family services, no later than the first day of March, a	767
list of the students enrolled in the school. For each student on	768
the list, the community school shall indicate the student's name,	769
address, and date of birth and the school district where the	770
student is entitled to attend school. Upon receipt of a list	771
under this division, the department of job and family services	772
shall determine, for each school district where one or more	773
students on the list is entitled to attend school, the number of	774
students residing in that school district who were included in the	775
department's report under section 3317.10 of the Revised Code. The	776
department shall make this determination on the basis of	777
information readily available to it. Upon making this	778
determination and no later than ninety days after submission of	779
the list by the community school, the department shall report to	780
the state department of education the number of students on the	781
list who reside in each school district who were included in the	782
department's report under section 3317.10 of the Revised Code. In	783
complying with this division, the department of job and family	784
services shall not report to the state department of education any	785
personally identifiable information on any student.	786

(L) The department of education shall adjust the amounts	787
subtracted and paid under divisions (C) and (D) of this section to	788
reflect any enrollment of students in community schools for less	789
than the equivalent of a full school year. For purposes of this	790
section, a student shall be considered enrolled in the community	791
school for any portion of the school year the student is	792
participating at a college under Chapter 3365. of the Revised	793
Code.	794

(M) The department of education shall reduce the amounts	795
paid under division (D) of this section to reflect payments made	796
to colleges under division (B) of section 3365.07 of the Revised	797
Code.	798

Sec. 3317.012.  (A)(1) The general assembly, having analyzed	799
school district expenditure and cost data for fiscal year 1996	800
1999, performed the calculation described in division (B) of this	801
section, and adjusted the results for inflation, and added the	802
amounts described in division (A)(2) of this section, hereby	803
determines that the base cost of an adequate education per pupil	804
for the fiscal year beginning July 1, 1998 2001, is $4,063 $4,909.	805
For the five following fiscal years, the base cost per pupil for	806
each of those years, reflecting an annual rate of inflation of two	807
and eight-tenths per cent, is $4,177 $5,047 for fiscal year 2000	808
2003, $4,294 $5,189 for fiscal year 2001 2004, $4,414 $5,335 for	809
fiscal year 2002 2005, $4,538 $5,484 for fiscal year 2003 2006,	810
and $4,665 $5,638 for fiscal year 2004 2007.	811

(2) The base cost per pupil amounts specified in division	812
(A)(1) of this section include amounts to reflect the cost to	813
school districts of increasing the minimum number of high school	814
academic units required for graduation beginning September 15,	815
2001, under section 3313.603 of the Revised Code. These amounts	816
were added after the calculation described in division (B) of this	817
section and the adjustments for inflation. The per pupil amounts	818
included for this purpose in the base cost specified in division	819
(A)(1) of this section are: $24 for fiscal year 2002, $25 for	820
fiscal year 2003, $26 for fiscal year 2004, $27 for fiscal year	821
2005, $28 for fiscal year 2006, and $29 for fiscal year 2007.	822

(B) In determining the base cost stated in division (A) of	823
this section, capital and debt costs, costs paid for by federal	824
funds, and costs covered by funds provided pursuant to sections	825
3317.023 and 3317.024 of the Revised Code as they existed prior to	826
July 1, 1998, for disadvantaged pupil impact aid and	827
transportation were excluded, as were the effects on the	828
districts' state funds of the application of the	829
cost-of-doing-business factors, assuming an eighteen per cent	830
variance.	831

The base cost for fiscal year 1996 1999 was calculated as the	832
unweighted average cost per student, on a school district basis,	833
of educating students who were not receiving vocational education	834
or services pursuant to Chapter 3323. of the Revised Code and who	835
were enrolled in a city, exempted village, or local school	836
district that in fiscal year 1994 1999 met all of the following	837
criteria:	838

(1) The district met at least all but one twenty of the	839
following twenty-seven performance standards:	840

(a) A three ninety per cent or lower dropout higher	841
graduation rate;	842

(b) At least seventy-five per cent of fourth graders	843
proficient on the mathematics test prescribed under division	844
(A)(1) of section 3301.0710 of the Revised Code;	845

(c) At least seventy-five per cent of fourth graders	846
proficient on the reading test prescribed under division (A)(1) of	847
section 3301.0710 of the Revised Code;	848

(d) At least seventy-five per cent of fourth graders	849
proficient on the writing test prescribed under division (A)(1) of	850
section 3301.0710 of the Revised Code;	851

(e) At least seventy-five per cent of fourth graders	852
proficient on the citizenship test prescribed under division	853
(A)(1) of section 3301.0710 of the Revised Code;	854

(f) At least seventy-five per cent of fourth graders	855
proficient on the science test prescribed under division (A)(1) of	856
section 3301.0710 of the Revised Code;	857

(g) At least seventy-five per cent of sixth graders	858
proficient on the mathematics test prescribed under division	859
(A)(2) of section 3301.0710 of the Revised Code;	860

(h) At least seventy-five per cent of sixth graders	861
proficient on the reading test prescribed under division (A)(2) of	862
section 3301.0710 of the Revised Code;	863

(i) At least seventy-five per cent of sixth graders	864
proficient on the writing test prescribed under division (A)(2) of	865
section 3301.0710 of the Revised Code;	866

(j) At least seventy-five per cent of sixth graders	867
proficient on the citizenship test prescribed under division	868
(A)(2) of section 3301.0710 of the Revised Code;	869

(k) At least seventy-five per cent of sixth graders	870
proficient on the science test prescribed under division (A)(2) of	871
section 3301.0710 of the Revised Code;	872

(l) At least seventy-five per cent of ninth graders	873
proficient on the mathematics test prescribed under former	874
division (B) of section 3301.0710 of the Revised Code Section 4 of	875
Am. Sub. S.B. 55 of the 122nd general assembly;	876

(g)(m) At least seventy-five per cent of ninth graders	877
proficient on the reading test prescribed under former division	878
(B) of section 3301.0710 of the Revised Code Section 4 of Am. Sub.	879
S.B. 55 of the 122nd general assembly;	880

(h)(n) At least seventy-five per cent of ninth graders	881
proficient on the writing test prescribed under former division	882
(B) of section 3301.0710 of the Revised Code Section 4 of Am. Sub.	883
S.B. 55 of the 122nd general assembly;	884

(i)(o) At least seventy-five per cent of ninth graders	885
proficient on the citizenship test prescribed under former	886
division (B) of section 3301.0710 of the Revised Code Section 4 of	887
Am. Sub. S.B. 55 of the 122nd general assembly;	888

(j)(p) At least seventy-five per cent of ninth graders	889
proficient on the science test prescribed under Section 4 of Am.	890
Sub. S.B. 55 of the 122nd general assembly;	891

(q) At least eighty-five per cent of tenth graders proficient	892
on the mathematics test prescribed under former division (B) of	893
section 3301.0710 of the Revised Code Section 4 of Am. Sub. S.B.	894
55 of the 122nd general assembly;	895

(k)(r) At least eighty-five per cent of tenth graders	896
proficient on the reading test prescribed under former division	897
(B) of section 3301.0710 of the Revised Code Section 4 of Am. Sub.	898
S.B. 55 of the 122nd general assembly;	899

(l)(s) At least eighty-five per cent of tenth graders	900
proficient on the writing test prescribed under former division	901
(B) of section 3301.0710 of the Revised Code Section 4 of Am. Sub.	902
S.B. 55 of the 122nd general assembly;	903

(m)(t) At least eighty-five per cent of tenth graders	904
proficient on the citizenship test prescribed under former	905
division (B) of section 3301.0710 of the Revised Code Section 4 of	906
Am. Sub. S.B. 55 of the 122nd general assembly;	907

(n)(u) At least eighty-five per cent of tenth graders	908
proficient on the science test prescribed under Section 4 of Am.	909
Sub. S.B. 55 of the 122nd general assembly;	910

(v) At least sixty per cent of twelfth graders proficient on	911
the mathematics test prescribed under division (A)(3) of section	912
3301.0710 of the Revised Code;	913

(o)(w) At least sixty per cent of twelfth graders proficient	914
on the reading test prescribed under division (A)(3) of section	915
3301.0710 of the Revised Code;	916

(p)(x) At least sixty per cent of twelfth graders proficient	917
on the writing test prescribed under division (A)(3) of section	918
3301.0710 of the Revised Code;	919

(q)(y) At least sixty per cent of twelfth graders proficient	920
on the citizenship test prescribed under division (A)(3) of	921
section 3301.0710 of the Revised Code;	922

(r)(z) At least sixty per cent of twelfth graders proficient	923
on the science test prescribed under division (A)(3) of section	924
3301.0710 of the Revised Code;	925

(aa) An attendance rate for the year of at least	926
ninety-three per cent as defined in section 3302.01 of the Revised	927
Code.	928

(2) The district provided an average pupil-to-teacher ratio	929
in kindergarten through twelfth grade not exceeding twenty-one to	930
one;	931

(3) At least eighty per cent of the district's teachers had	932
at least five years of experience;	933

(4) The district offered at least one advanced placement	934
course;	935

(5) The district was not among the ten five per cent of all	936
districts with the highest income factors, as defined in section	937
3317.02 of the Revised Code, nor among the ten five per cent of	938
all districts with the lowest income factors.	939

(3)(6) The district was not among the five per cent of all	940
districts with the highest valuation per pupil in ADM, as reported	941
under division (A) of section 3317.03 of the Revised Code as it	942
existed prior to July 1, 1998, nor among the five per cent of all	943
districts with the lowest valuation per pupil.	944

(C) In July of 2000 2005, and in July of every six years	945
thereafter, the speaker of the house of representatives and the	946
president of the senate shall each appoint three members to a	947
committee to reexamine the cost of an adequate education. No more	948
than two members from any political party shall represent each	949
house. The director of budget and management and the	950
superintendent of public instruction shall serve as nonvoting ex	951
officio members of the committee.	952

The committee shall select a rational methodology for	953
calculating the costs of an adequate education system for the	954
ensuing six-year period, and shall report the methodology and the	955
resulting costs to the general assembly. In performing its	956
function, the committee is not bound by any method used by	957
previous general assemblies to examine and calculate costs and	958
instead may utilize any rational method it deems suitable and	959
reasonable given the educational needs and requirements of the	960
state at that time.	961

The methodology for determining the cost of an adequate	962
education system shall take into account the basic educational	963
costs that all districts incur in educating regular students, the	964
unique needs of special categories of students, and significant	965
special conditions encountered by certain classifications of	966
school districts.	967

Any committee appointed pursuant to this section shall make	968
its report to the office of budget and management and the general	969
assembly within six months one year of its appointment so that the	970
information is available for use by the office and the general	971
assembly in preparing the next biennial appropriations act.	972

Sec. 3317.013.  This section does not apply to handicapped	973
preschool students.	974

Analysis of special education cost data has resulted in a	975
finding that the average special education additional cost per	976
pupil, including the costs of related services, can be expressed	977
as a multiple of the base cost per pupil calculated under section	978
3317.012 of the Revised Code. The multiples for the following	979
categories of special education programs, as these programs are	980
defined for purposes of Chapter 3323. of the Revised Code, are as	981
follows:	982

(A) A multiple of 0.22 for students identified as specific	983
learning disabled, other health handicapped, or developmentally	984
handicapped, as these terms are defined pursuant to Chapter 3323.	985
of the Revised Code;	986

(B) A multiple of 3.01 for students identified as hearing	987
handicapped, orthopedically handicapped, vision impaired,	988
multihandicapped, and severe behavior handicapped, as these terms	989
are defined pursuant to Chapter 3323. of the Revised Code.	990

Further analysis indicates that approximately one-eighth of	991
the total costs of serving special education students consists of	992
the furnishing of the related services specified in division	993
(B)(3)(4) of section 3317.022 of the Revised Code.	994

Sec. 3317.02.  As used in this chapter:

995

(A) Unless otherwise specified, "school district" means	996
city, local, and exempted village school districts.	997

(B) "Formula amount" means the base cost for the fiscal year	998
specified in section 3317.012 of the Revised Code, except that to	999
allow for the orderly phase-in of the increased funding specified	1000
in that section, the formula amount for fiscal year 1999 2002	1001
shall be $3,851 $4,490, and the formula amount for fiscal year	1002
2000 2003 shall be $4,052 $4,670, the formula amount for fiscal	1003
year 2004 shall be $4,926, and the formula amount for fiscal year	1004
2005 shall be $5,197. Thereafter, the formula amount shall be as	1005
specified in that section. The formula amounts phased in for	1006
fiscal years 2002 through 2005 include, for the increased	1007
graduation requirements of section 3313.603 of the Revised Code,	1008
$24 for fiscal year 2002, $25 for fiscal year 2003, $26 for fiscal	1009
year 2004, and $27 for fiscal year 2005.	1010

(C) "FTE basis" means a count of students based on full-time	1011
equivalency, in accordance with rules adopted by the department of	1012
education pursuant to section 3317.03 of the Revised Code. In	1013
adopting its rules under this division, the department shall	1014
provide for counting any student in category one, two, or three	1015
special education ADM or in category one or two vocational	1016
education ADM in the same proportion the student is counted in	1017
formula ADM.	1018

(D)(1) "Formula ADM" means, for a city, local, or exempted	1019
village school district, the number reported pursuant to division	1020
(A) of section 3317.03 of the Revised Code, and for a joint	1021
vocational school district, the number reported pursuant to	1022
division (D) of that section.	1023

(2) "Three-year average formula ADM" means the average of	1024
formula ADMs for the current and preceding two fiscal years.	1025
However, as applicable in fiscal years 1999 and 2000, the	1026
three-year average for city, local, and exempted village school	1027
districts shall be determined utilizing the FY 1997 ADM or FY 1998	1028
ADM in lieu of formula ADM for fiscal year 1997 or 1998. In	1029
fiscal years 2000 and 2001, the three-year average for joint	1030
vocational school districts shall be determined utilizing the	1031
average daily membership reported in fiscal years 1998 and 1999	1032
under division (D) of section 3317.03 of the Revised Code in lieu	1033
of formula ADM for fiscal years 1998 and 1999.	1034

(E) "FY 1997 ADM" or "FY 1998 ADM" means the school	1035
district's average daily membership reported for the applicable	1036
fiscal year under the version of division (A) of section 3317.03	1037
of the Revised Code in effect during that fiscal year, adjusted as	1038
follows:	1039

(1) Minus the average daily membership of handicapped	1040
preschool children;	1041

(2) Minus one-half of the average daily membership attending	1042
kindergarten;	1043

(3) Minus three-fourths of the average daily membership	1044
attending a joint vocational school district;	1045

(4) Plus the average daily membership entitled under section	1046
3313.64 or 3313.65 of the Revised Code to attend school in the	1047
district but receiving educational services in approved units from	1048
an educational service center or another school district under a	1049
compact or a cooperative education agreement, as determined by the	1050
department;	1051

(5) Minus the average daily membership receiving educational	1052
services from the district in approved units but entitled under	1053
section 3313.64 or 3313.65 of the Revised Code to attend school in	1054
another school district, as determined by the department.	1055

(F)(1) "Category one special education ADM" means the average	1056
daily membership of handicapped children receiving special	1057
education services for those handicaps specified in division (A)	1058
of section 3317.013 of the Revised Code and reported under	1059
division (B)(5) or (D)(2)(b) of section 3317.03 of the Revised	1060
Code.	1061

(2) "Category two special education ADM" means the average	1062
daily membership of handicapped children receiving special	1063
education services for those handicaps specified in division (B)	1064
of section 3317.013 of the Revised Code and reported under	1065
division (B)(6) or (D)(2)(c) of section 3317.03 of the Revised	1066
Code.	1067

(3) "Category three special education ADM" means the average	1068
daily membership of students receiving special education services	1069
for students identified as autistic, having traumatic brain	1070
injuries, or as both visually and hearing disabled as these terms	1071
are defined pursuant to Chapter 3323. of the Revised Code, and	1072
reported under division (B)(7) or (D)(2)(d) of section 3317.03 of	1073
the Revised Code.	1074

(4) "Category one vocational education ADM" means the average	1075
daily membership of students receiving vocational education	1076
services described in division (A) of section 3317.014 of the	1077
Revised Code and reported under division (B)(8) or (D)(2)(e) of	1078
section 3317.03 of the Revised Code.	1079

(5) "Category two vocational education ADM" means the average	1080
daily membership of students receiving vocational education	1081
services described in division (B) of section 3317.014 of the	1082
Revised Code and reported under division (B)(9) or (D)(2)(f) of	1083
section 3317.03 of the Revised Code.	1084

(G) "Handicapped preschool child" means a handicapped child,	1085
as defined in section 3323.01 of the Revised Code, who is at least	1086
age three but is not of compulsory school age, as defined in	1087
section 3321.01 of the Revised Code, and who is not currently	1088
enrolled in kindergarten.	1089

(H) "County MR/DD board" means a county board of mental	1090
retardation and developmental disabilities.	1091

(I) "Recognized valuation" means the amount calculated for a	1092
school district pursuant to section 3317.015 of the Revised Code.	1093

(J) "Transportation ADM" means the number of children	1094
reported under division (B)(10) of section 3317.03 of the Revised	1095
Code.	1096

(K) "Average efficient transportation use cost per student"	1097
means a statistical representation of transportation costs as	1098
calculated under division (D)(2) of section 3317.022 of the	1099
Revised Code.	1100

(L) "Taxes charged and payable" means the taxes charged and	1101
payable against real and public utility property after making the	1102
reduction required by section 319.301 of the Revised Code, plus	1103
the taxes levied against tangible personal property.	1104

(M) "Total taxable value" means the sum of the amounts	1105
certified for a city, local, exempted village, or joint vocational	1106
school district under divisions (A)(1) and (2) of section 3317.021	1107
of the Revised Code.	1108

(N)(1) "Cost-of-doing-business factor" means the amount	1109
indicated in this division for the county in which a city, local,	1110
exempted village, or joint vocational school district is located,	1111
adjusted in accordance with division (N)(2) of this section. If a	1112
city, local, or exempted village school district is located in	1113
more than one county, the factor is the amount indicated for the	1114
county to which the district is assigned by the state department	1115
of education. If a joint vocational school district is located in	1116
more than one county, the factor is the amount indicated for the	1117
county in which the joint vocational school with the greatest	1118
formula ADM operated by the district is located.	1119

(2) As used in this division, "multiplier" means the number	1210
for the corresponding fiscal year as follows:	1211

Beginning in fiscal year 1998, the department shall annually	1221
adjust the cost-of-doing-business factor for each county in	1222
accordance with the following formula:	1223

[(The cost-of-doing-business factor specified under

1224

division (N)(1) of this section - 1) X (the multiplier

1225

for the fiscal year of the calculation)] + 1

1226

The result of such formula shall be the adjusted	1227
cost-of-doing-business factor for that fiscal year.	1228

(O) "Tax exempt value" of a school district means the amount	1229
certified for a school district under division (A)(4) of section	1230
3317.021 of the Revised Code.	1231

(P) "Potential value" of a school district means the adjusted	1232
total taxable value of a school district plus the tax exempt value	1233
of the district.	1234

(Q) "District median income" means the median Ohio adjusted	1235
gross income certified for a school district. On or before the	1236
first day of July of each year, the tax commissioner shall certify	1237
to the department of education for each city, exempted village,	1238
and local school district the median Ohio adjusted gross income of	1239
the residents of the school district determined on the basis of	1240
tax returns filed for the second preceding tax year by the	1241
residents of the district.	1242

(R) "Statewide median income" means the median district	1243
median income of all city, exempted village, and local school	1244
districts in the state.	1245

(S) "Income factor" for a city, exempted village, or local	1246
school district means the quotient obtained by dividing that	1247
district's median income by the statewide median income.	1248

(T) Except as provided in division (B)(3)(6) of section	1249
3317.012 of the Revised Code, "valuation per pupil" for a city,	1250
exempted village, or local school district means the district's	1251
recognized valuation divided by the greater of the district's	1252
formula ADM or three-year average formula ADM.	1253

(U) Except as provided in section 3317.0213 of the Revised	1254
Code, "adjusted valuation per pupil" means the amount calculated	1255
in accordance with the following formula:	1256

District valuation per pupil - [$60,000 X

1257

(1 - district income factor)]

1258

If the result of such formula is negative, the adjusted	1259
valuation per pupil shall be zero.	1260

(V) "Income adjusted valuation" means the product obtained by	1261
multiplying the school district's adjusted valuation per pupil by	1262
the greater of the district's formula ADM or three-year average	1263
formula ADM.	1264

(W) Except as provided in division (A)(2) of section	1265
3317.022 of the Revised Code, "adjusted total taxable value" means	1266
one of the following:	1267

(1) In any fiscal year that a school district's income	1268
factor is less than or equal to one, the amount calculated under	1269
the following formula:	1270

(Income adjusted valuation X multiple) +

1271

[recognized valuation X (1-multiple)]

1272

Where "multiple" means the number for the corresponding	1273
fiscal year as follows:	1274

(2) In fiscal year 1999, if a school district's income	1279
factor is greater than one, the amount calculated under the	1280
following formula:	1281

(Income adjusted valuation X 1/15)

1282

+ (recognized valuation X 14/15)

1283

Thereafter, the adjusted total taxable value of a district	1284
with an income factor greater than one shall be its recognized	1285
valuation.	1286

Sec. 3317.022.  (A)(1) The department of education shall	1287
compute and distribute state base cost funding to each school	1288
district for the fiscal year in accordance with the following	1289
formula, using adjusted total taxable value as defined in section	1290
3317.02 of the Revised Code or division (A)(2) of this section and	1291
the information obtained under section 3317.021 of the Revised	1292
Code in the calendar year in which the fiscal year begins.	1293

Compute the following for each eligible district:

1294

[cost-of-doing-business factor X

1295

the formula amount X (the greater of formula ADM

1296

or three-year average formula ADM)] -

1297

(.023 X adjusted total taxable value)

1298

If the difference obtained is a negative number, the	1299
district's computation shall be zero.	1300

(2)(a) For each school district for which the tax exempt	1301
value of the district equals or exceeds twenty-five per cent of	1302
the potential value of the district, the department of education	1303
shall calculate the difference between the district's tax exempt	1304
value and twenty-five per cent of the district's potential value.	1305

(b) For each school district to which division (A)(2)(a) of	1306
this section applies, the adjusted total taxable value used in the	1307
calculation under division (A)(1) of this section shall be the	1308
adjusted total taxable value modified by subtracting the amount	1309
calculated under division (A)(2)(a) of this section.	1310

(B) As used in this section:

1311

(1) The "total special education weight" for a district	1312
means the sum of the following amounts:	1313

(a) The district's category one special education ADM	1314
multiplied by the multiple specified under division (A) of section	1315
3317.013 of the Revised Code;	1316

(b) The sum of the district's category two and category	1317
three special education ADMs multiplied by the multiple specified	1318
under division (B) of section 3317.013 of the Revised Code.	1319

(2) "State share percentage" means the percentage calculated	1320
for a district as follows:	1321

(a) Calculate the state base cost funding amount for the	1322
district for the fiscal year under division (A) of this section.	1323
If the district would not receive any state base cost funding for	1324
that year under that division, the district's state share	1325
percentage is zero.	1326

(b) If the district would receive state base cost funding	1327
under that division, divide that amount by an amount equal to the	1328
following:	1329

Cost-of-doing-business factor X

1330

the formula amount X (the greater of formula

1331

ADM or three-year average formula ADM)

1332

The resultant number is the district's state share	1333
percentage.	1334

(3) "Adjusted state share percentage" means:

1335

(a) For fiscal years prior to fiscal year 2003, the same	1336
percentage calculated under division (B)(2) of this section;	1337

(b) Beginning in fiscal year 2003, the percentage calculated	1338
under division (B)(2) of this section plus five percentage points.	1339

Beginning in fiscal year 2003, no school district shall have	1340
an adjusted state share percentage that is less than five per cent	1341
or greater than one hundred per cent.	1342

(4) "Related services" includes:

1343

(a) Child study, special education supervisors and	1344
coordinators, speech and hearing services, adaptive physical	1345
development services, occupational or physical therapy, teacher	1346
assistants for handicapped children whose handicaps are described	1347
in division (B) of section 3317.013 or division (F)(3) of section	1348
3317.02 of the Revised Code, behavioral intervention, interpreter	1349
services, work study, nursing services, and specialized	1350
integrative services as those terms are defined by the department;	1351

(b) Speech and language services provided to any student	1352
with a handicap, including any student whose primary or only	1353
handicap is a speech and language handicap;	1354

(c) Any related service not specifically covered by other	1355
state funds but specified in federal law, including but not	1356
limited to, audiology and school psychological services;	1357

(d) Any service included in units funded under former	1358
division (O)(1) of section 3317.023 of the Revised Code;	1359

(e) Any other related service needed by handicapped children	1360
in accordance with their individualized education plans.	1361

(4)(5) The "total vocational education weight" for a	1362
district means the sum of the following amounts:	1363

(a) The district's category one vocational education ADM	1364
multiplied by the multiple specified in division (A) of section	1365
3317.014 of the Revised Code;	1366

(b) The district's category two vocational education ADM	1367
multiplied by the multiple specified in division (B) of section	1368
3317.014 of the Revised Code.	1369

(C)(1) The department shall compute and distribute state	1370
special education and related services additional weighted costs	1371
funds to each school district in accordance with the following	1372
formula:	1373

The district's adjusted state share percentage

1374

X the formula amount for the year

1375

for which the aid is calculated

1376

X the district's total special education weight

1377

(2) In any fiscal year, a school district receiving funds	1378
under division (C)(1) of this section shall spend on related	1379
services the lesser of the following:	1380

(a) The amount the district spent on related services in the	1381
preceding fiscal year;	1382

(b) 1/8 X {[cost-of-doing-business factor X the formula	1383
amount X (the category one special education ADM + category two	1384
special education ADM + category three special education ADM)] +	1385
the amount calculated for the fiscal year under division (C)(1) of	1386
this section + the local share of special education and related	1387
services additional weighted costs}.	1388

(3) The local share of special education and related	1389
services additional weighted costs equals:	1390

(1 - the district's adjusted state share percentage) X

1391

the district's total special education weight X

1392

the formula amount

1393

(4) The department shall compute and pay in accordance with	1394
this division additional state aid to school districts for	1395
students in category one, two, or three special education ADM. If	1396
a district's costs for the fiscal year for a student in its	1397
category one, two, or three special education ADM are twenty-five	1398
thousand dollars or more, the district may submit to the	1399
superintendent of public instruction documentation, as prescribed	1400
by the superintendent, of all its costs for that student. Upon	1401
submission of documentation for a student of the type and in the	1402
manner prescribed, the department shall pay to the district an	1403
amount equal to the sum of the following:	1404

(a) One-half of the district's costs for the student in	1405
excess of twenty-five thousand dollars;	1406

(b) The product of one-half of the district's costs for the	1407
student in excess of twenty-five thousand dollars multiplied by	1408
the district's adjusted state share percentage.	1409

The district shall only report, and the department shall only	1410
pay for, the costs of educational expenses and the related	1411
services provided to the student in accordance with the student's	1412
individualized education program. Any legal fees, court costs, or	1413
other costs associated with any cause of action relating to the	1414
student may not be included in the amount.	1415

(5)(a) As used in this division, the "personnel allowance"	1416
means twenty-five thousand dollars in fiscal year 2000 and thirty	1417
thousand dollars in fiscal year 2001 years 2002 and 2003.	1418

(b) For the provision of speech services to students and for	1419
no other purpose, the department of education shall pay each	1420
school district an amount calculated under the following formula:	1421

(formula ADM divided by 2000) X the personnel	1422

allowance X the adjusted state share percentage

1423

(6) In any fiscal year, a school district receiving funds	1424
under division (C)(1) of this section shall spend those funds only	1425
for the purposes that the department designates as approved for	1426
special education expenses.	1427

(D)(1) As used in this division:

1428

(a) "Daily bus miles per student" equals the number of bus	1429
miles traveled per day, divided by transportation base.	1430

(b) "Transportation base" equals total student count as	1431
defined in section 3301.011 of the Revised Code, minus the number	1432
of students enrolled in preschool handicapped units, plus the	1433
number of nonpublic school students included in transportation	1434
ADM.	1435

(c) "Transported student percentage" equals transportation	1436
ADM divided by transportation base.	1437

(d) "Transportation cost per student" equals total operating	1438
costs for board-owned or contractor-operated school buses divided	1439
by transportation base.	1440

(2) Analysis of student transportation cost data has	1441
resulted in a finding that an average efficient transportation use	1442
cost per student can be calculated by means of a regression	1443
formula that has as its two independent variables the number of	1444
daily bus miles per student and the transported student	1445
percentage. For fiscal year 1998 transportation cost data, the	1446
average efficient transportation use cost per student is expressed	1447
as follows:	1448

51.79027 + (139.62626 X daily bus miles per student) +

1449

(116.25573 X transported student percentage)

1450

The department of education shall annually determine the	1451
average efficient transportation use cost per student in	1452
accordance with the principles stated in division (D)(2) of this	1453
section, updating the intercept and regression coefficients of the	1454
regression formula modeled in this division, based on an annual	1455
statewide analysis of each school district's daily bus miles per	1456
student, transported student percentage, and transportation cost	1457
per student data. The department shall conduct the annual update	1458
using data, including daily bus miles per student, transported	1459
student percentage, and transportation cost per student data, from	1460
the prior fiscal year. The department shall notify the office of	1461
budget and management of such update by the fifteenth day of	1462
February of each year.	1463

(3) In addition to funds paid under divisions (A), (C), and	1464
(E) of this section, each district with a transported student	1465
percentage greater than zero shall receive a payment equal to a	1466
percentage of the product of the district's transportation base	1467
from the prior fiscal year times the annually updated average	1468
efficient transportation use cost per student, times an inflation	1469
factor of two and eight tenths per cent to account for the	1470
one-year difference between the data used in updating the formula	1471
and calculating the payment and the year in which the payment is	1472
made. The percentage shall be the following percentage of that	1473
product specified for the corresponding fiscal year:	1474

The payments made under division (D)(3) of this section each	1480
year shall be calculated based on all of the same prior year's	1481
data used to update the formula.	1482

(4) In addition to funds paid under divisions (D)(2) and (3)	1483
of this section, a school district shall receive a rough road	1484
subsidy if both of the following apply:	1485

(a) Its county rough road percentage is higher than the	1486
statewide rough road percentage, as those terms are defined in	1487
division (D)(5) of this section;	1488

(b) Its district student density is lower than the statewide	1489
student density, as those terms are defined in that division.	1490

(5) The rough road subsidy paid to each district meeting the	1491
qualifications of division (D)(4) of this section shall be	1492
calculated in accordance with the following formula:	1493

(per rough mile subsidy X total rough road miles) X

1494

density multiplier

1495

where:

1496

(a) "Per rough mile subsidy" equals the amount calculated in	1497
accordance with the following formula:	1498

0.75 - {0.75 X [(maximum rough road percentage -

1499

1500

county rough road percentage)/(maximum rough road percentage -

1501

statewide rough road percentage)]}

1502

(i) "Maximum rough road percentage" means the highest county	1503
rough road percentage in the state.	1504

(ii) "County rough road percentage" equals the percentage of	1505
the mileage of state, municipal, county, and township roads that	1506
is rated by the department of transportation as type A, B, C, E2,	1507
or F in the county in which the school district is located or, if	1508
the district is located in more than one county, the county to	1509
which it is assigned for purposes of determining its	1510
cost-of-doing-business factor.	1511

(iii) "Statewide rough road percentage" means the percentage	1512
of the statewide total mileage of state, municipal, county, and	1513
township roads that is rated as type A, B, C, E2, or F by the	1514
department of transportation.	1515

(b) "Total rough road miles" means a school district's total	1516
bus miles traveled in one year times its county rough road	1517
percentage.	1518

(c) "Density multiplier" means a figure calculated in	1519
accordance with the following formula:	1520

1 - [(minimum student density - district student

1521

density)/(minimum student density -

1522

statewide student density)]

1523

(i) "Minimum student density" means the lowest district	1524
student density in the state.	1525

(ii) "District student density" means a school district's	1526
transportation base divided by the number of square miles in the	1527
district.	1528

(iii) "Statewide student density" means the sum of the	1529
transportation bases for all school districts divided by the sum	1530
of the square miles in all school districts.	1531

(6) In addition to funds paid under divisions (D)(2) to (5)	1532
of this section, each district shall receive in accordance with	1533
rules adopted by the state board of education a payment for	1534
students transported by means other than board-owned or	1535
contractor-operated buses and whose transportation is not funded	1536
under division (J) of section 3317.024 of the Revised Code. The	1537
rules shall include provisions for school district reporting of	1538
such students.	1539

(7) Notwithstanding divisions (D)(1) to (6) of this section,	1540
in fiscal year 2000 only, each school district shall receive the	1541
greater of the total amount calculated for it under those	1542
divisions and division (J) of section 3317.024 of the Revised Code	1543
or the total amount calculated for it for types one through six	1544
student transportation operating funds in fiscal year 1999. For	1545
purposes of division (D)(7) of this section, the fiscal year 1999	1546
guaranteed total amount does not include subsidies for school bus	1547
purchases.	1548

(E)(1) The department shall compute and distribute state	1549
vocational education additional weighted costs funds to each	1550
school district in accordance with the following formula:	1551

state share percentage X

1552

the formula amount X

1553

total vocational education weight

1554

In any fiscal year, a school district receiving funds under	1555
division (E)(1) of this section shall spend those funds only for	1556
the purposes that the department designates as approved for	1557
vocational education expenses.	1558

(2) The department shall compute for each school district	1559
state funds for vocational education associated services in	1560
accordance with the following formula:	1561

state share percentage X .05 X

1562

the formula amount X the sum of categories one and two

1563

vocational education ADM

1564

In any fiscal year, a school district receiving funds under	1565
division (E)(2) of this section, or through a transfer of funds	1566
pursuant to division (L) of section 3317.023 of the Revised Code,	1567
shall spend those funds only for the purposes that the department	1568
designates as approved for vocational education associated	1569
services expenses, which may include such purposes as	1570
apprenticeship coordinators, coordinators for other vocational	1571
education services, vocational evaluation, and other purposes	1572
designated by the department. The department may deny payment	1573
under division (E)(2) of this section to any district that the	1574
department determines is not operating those services or is using	1575
funds paid under division (E)(2) of this section, or through a	1576
transfer of funds pursuant to division (L) of section 3317.023 of	1577
the Revised Code, for other purposes.	1578

In fiscal years 2000 and 2001, each school district shall	1579
continue to offer the same number of the vocational education	1580
programs that the district offered in fiscal year 1999, unless the	1581
department of education expressly agrees that the district may	1582
offer fewer programs in either fiscal year 2000 or 2001 or both.	1583

Sec. 3317.023.  (A) Notwithstanding section 3317.022 of the	1584
Revised Code, the amounts required to be paid to a district under	1585
this chapter shall be adjusted by the amount of the computations	1586
made under divisions (B) to (K)(L) of this section.	1587

As used in this section:

1588

(1) "Classroom teacher" means a licensed employee who	1589
provides direct instruction to pupils, excluding teachers funded	1590
from money paid to the district from federal sources; educational	1591
service personnel; and vocational and special education teachers.	1592

(2) "Educational service personnel" shall not include such	1593
specialists funded from money paid to the district from federal	1594
sources or assigned full-time to vocational or special education	1595
students and classes and may only include those persons employed	1596
in the eight specialist areas in a pattern approved by the	1597
department of education under guidelines established by the state	1598
board of education.	1599

(3) "Annual salary" means the annual base salary stated in	1600
the state minimum salary schedule for the performance of the	1601
teacher's regular teaching duties that the teacher earns for	1602
services rendered for the first full week of October of the fiscal	1603
year for which the adjustment is made under division (C) of this	1604
section. It shall not include any salary payments for	1605
supplemental teachers contracts.	1606

(4) "Regular student population" means the formula ADM plus	1607
the number of students reported as enrolled in the district	1608
pursuant to division (A)(1) of section 3313.981 of the Revised	1609
Code; minus the number of students reported under division (A)(2)	1610
of section 3317.03 of the Revised Code; minus the FTE of students	1611
reported under division (B)(5), (6), (7), (8), or (9) of that	1612
section who are enrolled in a vocational education class or	1613
receiving special education; and minus one-fourth of the students	1614
enrolled concurrently in a joint vocational school district.	1615

(5) "State share percentage" has and "adjusted state share	1616
percentage" have the same meaning meanings as in section 3317.022	1617
of the Revised Code.	1618

(6) "VEPD" means a school district or group of school	1619
districts designated by the department of education as being	1620
responsible for the planning for and provision of vocational	1621
education services to students within the district or group.	1622

(7) "Lead district" means a school district, including a	1623
joint vocational school district, designated by the department as	1624
a VEPD, or designated to provide primary vocational education	1625
leadership within a VEPD composed of a group of districts.	1626

(B) If the district employs less than one full-time	1627
equivalent classroom teacher for each twenty-five pupils in the	1628
regular student population in any school district, deduct the sum	1629
of the amounts obtained from the following computations:	1630

(1) Divide the number of the district's full-time equivalent	1631
classroom teachers employed by one twenty-fifth;	1632

(2) Subtract the quotient in (1) from the district's regular	1633
student population;	1634

(3) Multiply the difference in (2) by seven hundred	1635
fifty-two dollars.	1636

(C) If a positive amount, add one-half of the amount	1637
obtained by multiplying the number of full-time equivalent	1638
classroom teachers by:	1639

(1) The mean annual salary of all full-time equivalent	1640
classroom teachers employed by the district at their respective	1641
training and experience levels minus;	1642

(2) The mean annual salary of all such teachers at their	1643
respective levels in all school districts receiving payments under	1644
this section.	1645

The number of full-time equivalent classroom teachers used in	1646
this computation shall not exceed one twenty-fifth of the	1647
district's regular student population. In calculating the	1648
district's mean salary under this division, those full-time	1649
equivalent classroom teachers with the highest training level	1650
shall be counted first, those with the next highest training level	1651
second, and so on, in descending order. Within the respective	1652
training levels, teachers with the highest years of service shall	1653
be counted first, the next highest years of service second, and so	1654
on, in descending order.	1655

(D) This division does not apply to a school district that	1656
has entered into an agreement under division (A) of section	1657
3313.42 of the Revised Code. Deduct the amount obtained from the	1658
following computations if the district employs fewer than five	1659
full-time equivalent educational service personnel, including	1660
elementary school art, music, and physical education teachers,	1661
counselors, librarians, visiting teachers, school social workers,	1662
and school nurses for each one thousand pupils in the regular	1663
student population:	1664

(1) Divide the number of full-time equivalent educational	1665
service personnel employed by the district by five	1666
one-thousandths;	1667

(2) Subtract the quotient in (1) from the district's regular	1668
student population;	1669

(3) Multiply the difference in (2) by ninety-four dollars.

1670

(E) If a local school district, or a city or exempted	1671
village school district to which a governing board of an	1672
educational service center provides services pursuant to section	1673
3313.843 of the Revised Code, deduct the amount of the payment	1674
required for the reimbursement of the governing board under	1675
section 3317.11 of the Revised Code.	1676

(F)(1) If the district is required to pay to or entitled to	1677
receive tuition from another school district under division (C)(2)	1678
or (3) of section 3313.64 or section 3313.65 of the Revised Code,	1679
or if the superintendent of public instruction is required to	1680
determine the correct amount of tuition and make a deduction or	1681
credit under section 3317.08 of the Revised Code, deduct and	1682
credit such amounts as provided in division (I) of section 3313.64	1683
or section 3317.08 of the Revised Code.	1684

(2) For each child for whom the district is responsible for	1685
tuition or payment under division (A)(1) of section 3317.082 or	1686
section 3323.091 of the Revised Code, deduct the amount of tuition	1687
or payment for which the district is responsible.	1688

(G) If the district has been certified by the superintendent	1689
of public instruction under section 3313.90 of the Revised Code as	1690
not in compliance with the requirements of that section, deduct an	1691
amount equal to ten per cent of the amount computed for the	1692
district under section 3317.022 of the Revised Code.	1693

(H) If the district has received a loan from a commercial	1694
lending institution for which payments are made by the	1695
superintendent of public instruction pursuant to division (E)(3)	1696
of section 3313.483 of the Revised Code, deduct an amount equal to	1697
such payments.	1698

(I)(1) If the district is a party to an agreement entered	1699
into under division (D), (E), or (F) of section 3311.06 or	1700
division (B) of section 3311.24 of the Revised Code and is	1701
obligated to make payments to another district under such an	1702
agreement, deduct an amount equal to such payments if the district	1703
school board notifies the department in writing that it wishes to	1704
have such payments deducted.	1705

(2) If the district is entitled to receive payments from	1706
another district that has notified the department to deduct such	1707
payments under division (I)(1) of this section, add the amount of	1708
such payments.	1709

(J) If the district is required to pay an amount of funds to	1710
a cooperative education district pursuant to a provision described	1711
by division (B)(4) of section 3311.52 or division (B)(8) of	1712
section 3311.521 of the Revised Code, deduct such amounts as	1713
provided under that provision and credit those amounts to the	1714
cooperative education district for payment to the district under	1715
division (B)(1) of section 3317.19 of the Revised Code.	1716

(K)(1) If a district is educating a student entitled to	1717
attend school in another district pursuant to a shared education	1718
contract, compact, or cooperative education agreement other than	1719
an agreement entered into pursuant to section 3313.842 of the	1720
Revised Code, credit to that educating district on an FTE basis	1721
both all of the following:	1722

(a) An amount equal to the formula amount times the cost of	1723
doing business factor of the school district where the student is	1724
entitled to attend school pursuant to section 3313.64 or 3313.65	1725
of the Revised Code;	1726

(b) An amount equal to the formula amount times the adjusted	1727
state share percentage times any multiple applicable to the	1728
student pursuant to section 3317.013 of the Revised Code;	1729

(c) An amount equal to the formula amount times the state	1730
share percentage times any multiple applicable to the student	1731
pursuant to section 3317.013 or 3317.014 of the Revised Code.	1732

(2) Deduct any amount credited pursuant to division (K)(1)	1733
of this section from amounts paid to the school district in which	1734
the student is entitled to attend school pursuant to section	1735
3313.64 or 3313.65 of the Revised Code.	1736

(3) If the district is required by a shared education	1737
contract, compact, or cooperative education agreement to make	1738
payments to an educational service center, deduct the amounts from	1739
payments to the district and add them to the amounts paid to the	1740
service center pursuant to section 3317.11 of the Revised Code.	1741

(L)(1) If a district, including a joint vocational school	1742
district, is a lead district of a VEPD, credit to that district	1743
the amounts calculated for all the school districts within that	1744
VEPD pursuant to division (E)(2) of section 3317.022 of the	1745
Revised Code.	1746

(2) Deduct from each appropriate district that is not a lead	1747
district, the amount attributable to that district that is	1748
credited to a lead district under division (L)(1) of this section.	1749

Sec. 3317.029.  (A) As used in this section:

1750

(1) "DPIA percentage" means the quotient obtained by dividing	1751
the five-year average number of children ages five to seventeen	1752
residing in the school district and living in a family receiving	1753
family assistance, as certified or adjusted under section 3317.10	1754
of the Revised Code, by the district's three-year average formula	1755
ADM.	1756

(2) "Family assistance" means assistance received under the	1757
Ohio works first program or, for the purpose of determining the	1758
five-year average number of recipients of family assistance in	1759
fiscal years 1999 through 2002, assistance received under an	1760
antecedent program known as TANF or ADC.	1761

(3) "Statewide DPIA percentage" means the five-year average	1762
of the total number of children ages five to seventeen years	1763
residing in the state and receiving family assistance, divided by	1764
the sum of the three-year average formula ADMs for all school	1765
districts in the state.	1766

(4) "DPIA index" means the quotient obtained by dividing the	1767
school district's DPIA percentage by the statewide DPIA	1768
percentage.	1769

(5) "Kindergarten ADM" means the number of students reported	1770
under section 3317.03 of the Revised Code as enrolled in	1771
kindergarten.	1772

(6) "Kindergarten through third grade ADM" means the amount	1773
calculated as follows:	1774

(a) Multiply the kindergarten ADM by the sum of one plus the	1775
all-day kindergarten percentage;	1776

(b) Add the number of students in grades one through three;

1777

(c) Subtract from the sum calculated under division	1778
(A)(6)(b) of this section the number of special education students	1779
in grades kindergarten through three.	1780

(7) "Statewide average teacher salary" means forty forty-two	1781
thousand one four hundred eighty-seven sixty-nine dollars in	1782
fiscal year 2000 2002, and forty-one forty-three thousand three	1783
six hundred twelve fifty-eight dollars in fiscal year 2001 2003,	1784
which includes an amount for the value of fringe benefits.	1785

(8) "All-day kindergarten" means a kindergarten class that is	1786
in session five days per week for not less than the same number of	1787
clock hours each day as for pupils in grades one through six.	1788

(9) "All-day kindergarten percentage" means the percentage of	1789
a district's actual total number of students enrolled in	1790
kindergarten who are enrolled in all-day kindergarten.	1791

(10) "Buildings with the highest concentration of need" means	1792
the school buildings in a district with percentages of students	1793
receiving family assistance in grades kindergarten through three	1794
at least as high as the district-wide percentage of students	1795
receiving family assistance. If, however, the information	1796
provided by the department of job and family services under	1797
section 3317.10 of the Revised Code is insufficient to determine	1798
the family assistance percentage in each building, "buildings with	1799
the highest concentration of need" has the meaning given in rules	1800
that the department of education shall adopt. The rules shall	1801
base the definition of "buildings with the highest concentration	1802
of need" on family income of students in grades kindergarten	1803
through three in a manner that, to the extent possible with	1804
available data, approximates the intent of this division and	1805
division (G) of this section to designate buildings where the	1806
family assistance percentage in those grades equals or exceeds the	1807
district-wide family assistance percentage.	1808

(B) In addition to the amounts required to be paid to a	1809
school district under section 3317.022 of the Revised Code, a	1810
school district shall receive the greater of the amount the	1811
district received in fiscal year 1998 pursuant to division (B) of	1812
section 3317.023 of the Revised Code as it existed at that time or	1813
the sum of the computations made under divisions (C) to (E) of	1814
this section.	1815

(C) A supplemental payment that may be utilized for measures	1816
related to safety and security and for remediation or similar	1817
programs, calculated as follows:	1818

(1) If the DPIA index of the school district is greater than	1819
or equal to thirty-five-hundredths, but less than one, an amount	1820
obtained by multiplying the five-year average number of pupils in	1821
a district receiving family assistance by two hundred thirty	1822
dollars;	1823

(2) If the DPIA index of the school district is greater than	1824
or equal to one, an amount obtained by multiplying the DPIA index	1825
by two hundred thirty dollars and multiplying that product by the	1826
five-year average number of pupils in a district receiving family	1827
assistance.	1828

Except as otherwise provided in division (F) of this section,	1829
beginning with the school year that starts July 1, 2002, each	1830
school district annually shall use at least twenty per cent of the	1831
funds calculated for the district under this division for	1832
intervention services required by section 3313.608 of the Revised	1833
Code.	1834

(D) A payment for all-day kindergarten if any of the	1835
following apply:	1836

(1) For purposes of making payment in fiscal years prior to	1837
fiscal year 2003, the DPIA index of the school district is greater	1838
than or equal to one or if the;	1839

(2) For purposes of making payment in fiscal year 2003 and	1840
thereafter, the DPIA index of the school district is greater than	1841
or equal to six-tenths;	1842

(3) The district's three-year average formula ADM exceeded	1843
seventeen thousand five hundred,;	1844

(4) The district qualified for and received a payment for	1845
all-day kindergarten under this division in a previous fiscal	1846
year.	1847

The payment under this division shall be calculated by	1848
multiplying the all-day kindergarten percentage by the	1849
kindergarten ADM and multiplying that product by the formula	1850
amount.	1851

(E) A class-size reduction payment based on calculating the	1852
number of new teachers necessary to achieve a lower	1853
student-teacher ratio, as follows:	1854

(1) Determine or calculate a formula number of teachers per	1855
one thousand students based on the DPIA index of the school	1856
district as follows:	1857

(a) If the DPIA index of the school district is less than	1858
six-tenths, the formula number of teachers is 43.478, which is the	1859
number of teachers per one thousand students at a student-teacher	1860
ratio of twenty-three to one;	1861

(b) If the DPIA index of the school district is greater than	1862
or equal to six-tenths, but less than two and one-half, the	1863
formula number of teachers is calculated as follows:	1864

43.478 + {[(DPIA index-0.6)/ 1.9] X 23.188}

1865

Where 43.478 is the number of teachers per one thousand	1866
students at a student-teacher ratio of twenty-three to one; 1.9 is	1867
the interval from a DPIA index of six-tenths to a DPIA index of	1868
two and one-half; and 23.188 is the difference in the number of	1869
teachers per one thousand students at a student-teacher ratio of	1870
fifteen to one and the number of teachers per one thousand	1871
students at a student-teacher ratio of twenty-three to one.	1872

(c) If the DPIA index of the school district is greater than	1873
or equal to two and one-half, the formula number of teachers is	1874
66.667, which is the number of teachers per one thousand students	1875
at a student-teacher ratio of fifteen to one.	1876

(2) Multiply the formula number of teachers determined or	1877
calculated in division (E)(1) of this section by the kindergarten	1878
through third grade ADM for the district and divide that product	1879
by one thousand;	1880

(3) Calculate the number of new teachers as follows:

1881

(a) Multiply the kindergarten through third grade ADM by	1882
43.478, which is the number of teachers per one thousand students	1883
at a student-teacher ratio of twenty-three to one, and divide that	1884
product by one thousand;	1885

(b) Subtract the quotient obtained in division (E)(3)(a) of	1886
this section from the product in division (E)(2) of this section.	1887

(4) Multiply the greater of the difference obtained under	1888
division (E)(3) of this section or zero by the statewide average	1889
teachers salary.	1890

(F) This division applies only to school districts whose	1891
DPIA index is one or greater.	1892

(1) Each school district subject to this division shall	1893
first utilize funds received under this section so that, when	1894
combined with other funds of the district, sufficient funds exist	1895
to provide all-day kindergarten to at least the number of children	1896
in the district's all-day kindergarten percentage.	1897

(2) Up to an amount equal to the district's DPIA index	1898
multiplied by the five-year average number of pupils in a district	1899
receiving family assistance multiplied by two hundred thirty	1900
dollars of the money distributed under this section may be	1901
utilized for one or both of the following:	1902

(a) Programs designed to ensure that schools are free of	1903
drugs and violence and have a disciplined environment conducive to	1904
learning;	1905

(b) Remediation for students who have failed or are in	1906
danger of failing any of the proficiency tests administered	1907
pursuant to section 3301.0710 of the Revised Code.	1908

Beginning with the school year that starts on July 1, 2002,	1909
each school district shall use at least twenty per cent of the	1910
funds set aside for the purposes of divisions (F)(2)(a) and (b) of	1911
this section to provide intervention services required by section	1912
3313.608 of the Revised Code.	1913

(3) Except as otherwise required by division (G) or	1914
permitted under division (K) of this section, all other funds	1915
distributed under this section to districts subject to this	1916
division shall be utilized for the purpose of the third grade	1917
guarantee. The third grade guarantee consists of increasing the	1918
amount of instructional attention received per pupil in	1919
kindergarten through third grade, either by reducing the ratio of	1920
students to instructional personnel or by increasing the amount of	1921
instruction and curriculum-related activities by extending the	1922
length of the school day or the school year.	1923

School districts may implement a reduction of the ratio of	1924
students to instructional personnel through any or all of the	1925
following methods:	1926

(a) Reducing the number of students in a classroom taught by	1927
a single teacher;	1928

(b) Employing full-time educational aides or educational	1929
paraprofessionals issued a permit or license under section	1930
3319.088 of the Revised Code;	1931

(c) Instituting a team-teaching method that will result in a	1932
lower student-teacher ratio in a classroom.	1933

Districts may extend the school day either by increasing the	1934
amount of time allocated for each class, increasing the number of	1935
classes provided per day, offering optional academic-related	1936
after-school programs, providing curriculum-related extra	1937
curricular activities, or establishing tutoring or remedial	1938
services for students who have demonstrated an educational need.	1939
In accordance with section 3319.089 of the Revised Code, a	1940
district extending the school day pursuant to this division may	1941
utilize a participant of the work experience program who has a	1942
child enrolled in a public school in that district and who is	1943
fulfilling the work requirements of that program by volunteering	1944
or working in that public school. If the work experience program	1945
participant is compensated, the school district may use the funds	1946
distributed under this section for all or part of the	1947
compensation.	1948

Districts may extend the school year either through adding	1949
regular days of instruction to the school calendar or by providing	1950
summer programs.	1951

(G) Each district subject to division (F) of this section	1952
shall not expend any funds received under division (E) of this	1953
section in any school buildings that are not buildings with the	1954
highest concentration of need, unless there is a ratio of	1955
instructional personnel to students of no more than fifteen to one	1956
in each kindergarten and first grade class in all buildings with	1957
the highest concentration of need. This division does not require	1958
that the funds used in buildings with the highest concentration of	1959
need be spent solely to reduce the ratio of instructional	1960
personnel to students in kindergarten and first grade. A school	1961
district may spend the funds in those buildings in any manner	1962
permitted by division (F)(3) of this section, but may not spend	1963
the money in other buildings unless the fifteen-to-one ratio	1964
required by this division is attained.	1965

(H)(1) By the first day of August of each fiscal year, each	1966
school district wishing to receive any funds under division (D) of	1967
this section shall submit to the department of education an	1968
estimate of its all-day kindergarten percentage. Each district	1969
shall update its estimate throughout the fiscal year in the form	1970
and manner required by the department, and the department shall	1971
adjust payments under this section to reflect the updates.	1972

(2) Annually by the end of December, the department of	1973
education, utilizing data from the information system established	1974
under section 3301.0714 of the Revised Code and after consultation	1975
with the legislative office of education oversight, shall	1976
determine for each school district subject to division (F) of this	1977
section whether in the preceding fiscal year the district's ratio	1978
of instructional personnel to students and its number of	1979
kindergarten students receiving all-day kindergarten appear	1980
reasonable, given the amounts of money the district received for	1981
that fiscal year pursuant to divisions (D) and (E) of this	1982
section. If the department is unable to verify from the data	1983
available that students are receiving reasonable amounts of	1984
instructional attention and all-day kindergarten, given the funds	1985
the district has received under this section and that class-size	1986
reduction funds are being used in school buildings with the	1987
highest concentration of need as required by division (G) of this	1988
section, the department shall conduct a more intensive	1989
investigation to ensure that funds have been expended as required	1990
by this section. The department shall file an annual report of	1991
its findings under this division with the chairpersons of the	1992
committees in each house of the general assembly dealing with	1993
finance and education.	1994

(I) Any school district with a DPIA index less than one and	1995
a three-year average formula ADM exceeding seventeen thousand five	1996
hundred that receives payment for all-day kindergarten under	1997
division (D) of this section shall first utilize funds received	1998
under this section so that, when combined with other funds of the	1999
district, sufficient funds exist to provide all-day kindergarten	2000
to at least the number of children in the district's all-day	2001
kindergarten percentage. Such a district shall expend at least	2002
seventy per cent of the remaining funds received under this	2003
section, and any every other district with a DPIA index less than	2004
one shall expend at least seventy per cent of all funds received	2005
under this section, for any of the following purposes:	2006

(1) The purchase of technology for instructional purposes;

2007

(2) All-day kindergarten;

2008

(3) Reduction of class sizes;

2009

(4) Summer school remediation;

2010

(5) Dropout prevention programs;

2011

(6) Guaranteeing that all third graders are ready to	2012
progress to more advanced work;	2013

(7) Summer education and work programs;

2014

(8) Adolescent pregnancy programs;

2015

(9) Head start or preschool programs;

2016

(10) Reading improvement programs described by the	2017
department of education;	2018

(11) Programs designed to ensure that schools are free of	2019
drugs and violence and have a disciplined environment conducive to	2020
learning;	2021

(12) Furnishing, free of charge, materials used in courses	2022
of instruction, except for the necessary textbooks or electronic	2023
textbooks required to be furnished without charge pursuant to	2024
section 3329.06 of the Revised Code, to pupils living in families	2025
participating in Ohio works first in accordance with section	2026
3313.642 of the Revised Code;	2027

(13) School breakfasts provided pursuant to section 3313.813	2028
of the Revised Code.	2029

Each district shall submit to the department, in such format	2030
and at such time as the department shall specify, a report on the	2031
programs for which it expended funds under this division.	2032

(J) If at any time the superintendent of public instruction	2033
determines that a school district receiving funds under division	2034
(D) of this section has enrolled less than the all-day	2035
kindergarten percentage reported for that fiscal year, the	2036
superintendent shall withhold from the funds otherwise due the	2037
district under this section a proportional amount as determined by	2038
the difference in the certified all-day kindergarten percentage	2039
and the percentage actually enrolled in all-day kindergarten.	2040

The superintendent shall also withhold an appropriate amount	2041
of funds otherwise due a district for any other misuse of funds	2042
not in accordance with this section.	2043

(K)(1) A district may use a portion of the funds calculated	2044
for it under division (D) of this section to modify or purchase	2045
classroom space to provide all-day kindergarten, if both of the	2046
following conditions are met:	2047

(a) The district certifies to the department, in a manner	2048
acceptable to the department, that it has a shortage of space for	2049
providing all-day kindergarten.	2050

(b) The district provides all-day kindergarten to the number	2051
of children in the all-day kindergarten percentage it certified	2052
under this section.	2053

(2) A district may use a portion of the funds described in	2054
division (F)(3) of this section to modify or purchase classroom	2055
space to enable it to further reduce class size in grades	2056
kindergarten through two with a goal of attaining class sizes of	2057
fifteen students per licensed teacher. To do so, the district	2058
must certify its need for additional space to the department, in a	2059
manner satisfactory to the department.	2060

Sec. 3317.0212.  Divisions (B) and (C) of this section do not	2061
apply to a school district with a formula ADM of one hundred fifty	2062
or less.	2063

(A) As used in this section:

2064

(1) "Fundamental FY 1997 state aid" or "fundamental FY 1998	2065
state aid" for a district means the total amount of state money	2066
received by the district for the applicable fiscal year as	2067
reported on the department of education's form "SF-12," adjusted	2068
as follows:	2069

(a) Minus the amount for transportation;

2070

(b) Minus any amounts for approved preschool handicapped	2071
units;	2072

(c) Minus any additional amount attributable to the	2073
reappraisal guarantee of division (C) of section 3317.04 of the	2074
Revised Code;	2075

(d) Plus the amount deducted for payments to an educational	2076
service center;	2077

(e) Plus an estimated portion of the state money distributed	2078
in the applicable fiscal year to other school districts or	2079
educational service centers for approved units, other than	2080
preschool handicapped or gifted education units, attributable to	2081
the costs of providing services in those units to students	2082
entitled to attend school in the district;	2083

(f) Minus an estimated portion of the state money	2084
distributed to the school district in the applicable fiscal year	2085
for approved units, other than preschool handicapped units or	2086
gifted education units, attributable to the costs of providing	2087
services in those units to students entitled to attend school in	2088
another school district;	2089

(g) Plus any additional amount paid in the applicable fiscal	2090
year pursuant to the vocational education recomputation required	2091
by Section 45.12 of Amended Substitute House Bill No. 117 of the	2092
121st general assembly or former Section 50.22 of Amended	2093
Substitute House Bill No. 215 of the 122nd general assembly;	2094

(h) Plus any additional amount paid in the applicable fiscal	2095
year pursuant to the special education recomputation required by	2096
former division (I) of section 3317.023 of the Revised Code;	2097

(i) Plus any amount paid for equity aid in the applicable	2098
fiscal year under section 3317.0213 of the Revised Code;	2099

(j) Plus any amount received for the applicable fiscal year	2100
pursuant to section 3317.027 of the Revised Code;	2101

(k) Plus any amount received for the applicable fiscal year	2102
resulting from a recomputation made under division (B) of section	2103
3317.022 of the Revised Code, as that section existed in the	2104
applicable fiscal year.	2105

(2) "State basic aid" for a district for any fiscal year	2106
after fiscal year 1999 means the sum of the following:	2107

(a) The amount computed for the district for base cost	2108
funding, special education funding, and vocational education	2109
funding under divisions (A), (C)(1) and (5), and (E) of section	2110
3317.022 and sections 3317.025 and 3317.027 of the Revised Code	2111
and DPIA aid under section 3317.029 of the Revised Code in the	2112
current fiscal year before any deduction or credit required by	2113
division (B), (D), (E), (F), (G), (H), (I), (J), (K), or (L) of	2114
section 3317.023 or division (J) of section 3317.029 of the	2115
Revised Code;	2116

(b) Any amounts for which the district is eligible pursuant	2117
to division (C) of section 3317.023, divisions (G), (P), and (R)	2118
of section 3317.024, and the supplemental unit allowance paid for	2119
gifted units under division (B) of section 3317.162 3317.053 of	2120
the Revised Code;	2121

(c) Any equity aid for which the district is eligible under	2122
section 3317.0213 of the Revised Code.	2123

(3) "Adjusted FY 1999 actual aid" has the same meaning as in	2124
Section 18 of Am. Sub. H.B. 650 of the 122nd general assembly, as	2125
amended.	2126

(4) "Vocational education set-aside" means the up to	2127
$24,193,118 earmarked for additional school district vocational	2128
education grants under appropriation item 200-545, vocational	2129
education enhancements, in Am. Sub. H.B. 770 of the 122nd general	2130
assembly.	2131

(B) Upon request of the department of education, the	2132
treasurer of any school district or educational service center	2133
shall furnish data needed to calculate the amounts specified in	2134
divisions (A)(1)(e) and (f) of this section. The department shall	2135
compute and pay the state basic aid guarantee for each school	2136
district for the fiscal year as follows:	2137

(1) Subtract the amount of state basic aid from the amount	2138
of fundamental FY 1998 state aid. If a negative number, this	2139
computation shall be deemed to be zero.	2140

(2) Pay the district any positive amount calculated under	2141
division (B)(1) of this section.	2142

(C) In fiscal year 2000, the department shall calculate for	2143
each district the sum of the district's state basic aid for that	2144
fiscal year, plus any amount calculated under division (B)(1) of	2145
this section, plus the transportation portion of state aid	2146
computed for the district for that fiscal year under division (D)	2147
of the version of section 3317.022 of the Revised Code in effect	2148
that fiscal year. If a district's adjusted FY 1999 actual aid is	2149
greater than that sum, then the department shall pay the district	2150
in that fiscal year one hundred per cent of the difference.	2151

(D)(1) The state basic aid guarantee in any fiscal year for	2152
a school district with a formula ADM of one hundred fifty or less	2153
shall be the greatest of the following amounts:	2154

(a) The district's state basic aid for the fiscal year;

2155

(b) The district's fundamental FY 1998 state aid;

2156

(c) The district's fundamental FY 1997 state aid.

2157

(2) If in any fiscal year the state basic aid for a school	2158
district with a formula ADM of one hundred fifty or less is less	2159
than the guarantee amount determined for the district under	2160
division (D)(C)(1) of this section, the department of education	2161
shall pay the district the amount of the difference.	2162

Sec. 3317.03.  Notwithstanding divisions (A)(1), (B)(1), and	2163
(C) of this section, any student enrolled in kindergarten more	2164
than half time shall be reported as one-half student under this	2165
section.	2166

(A) The superintendent of each city and exempted village	2167
school district and of each educational service center shall, for	2168
the schools under the superintendent's supervision, certify to the	2169
state board of education on or before the fifteenth day of October	2170
in each year for the first full school week in October the formula	2171
ADM, which shall consist of the average daily membership during	2172
such week of the sum of the following:	2173

(1) On an FTE basis, the number of students in grades	2174
kindergarten through twelve receiving any educational services	2175
from the district, except that the following categories of	2176
students shall not be included in the determination:	2177

(a) Students enrolled in adult education classes;

2178

(b) Adjacent or other district students enrolled in the	2179
district under an open enrollment policy pursuant to section	2180
3313.98 of the Revised Code;	2181

(c) Students receiving services in the district pursuant to	2182
a compact, cooperative education agreement, or a contract, but who	2183
are entitled to attend school in another district pursuant to	2184
section 3313.64 or 3313.65 of the Revised Code;	2185

(d) Students for whom tuition is payable pursuant to	2186
sections 3317.081 and 3323.141 of the Revised Code.	2187

(2) On an FTE basis, the number of students entitled to	2188
attend school in the district pursuant to section 3313.64 or	2189
3313.65 of the Revised Code, but receiving educational services in	2190
grades kindergarten through twelve from one or more of the	2191
following entities:	2192

(a) A community school pursuant to Chapter 3314. of the	2193
Revised Code, including any participation in a college pursuant to	2194
Chapter 3365. of the Revised Code while enrolled in such community	2195
school;	2196

(b) An alternative school pursuant to sections 3313.974 to	2197
3313.979 of the Revised Code as described in division (I)(2)(a) or	2198
(b) of this section;	2199

(c) A college pursuant to Chapter 3365. of the Revised Code,	2200
except when the student is enrolled in the college while also	2201
enrolled in a community school pursuant to Chapter 3314. of the	2202
Revised Code;	2203

(d) An adjacent or other school district under an open	2204
enrollment policy adopted pursuant to section 3313.98 of the	2205
Revised Code;	2206

(e) An educational service center or cooperative education	2207
district;	2208

(f) Another school district under a cooperative education	2209
agreement, compact, or contract.	2210

(3) One-fourth of the number of students enrolled in a joint	2211
vocational school district or under a vocational education	2212
compact, excluding any students entitled to attend school in the	2213
district under section 3313.64 or 3313.65 of the Revised Code who	2214
are enrolled in another school district through an open enrollment	2215
policy as reported under division (A)(2)(d) of this section and	2216
then enroll in a joint vocational school district or under a	2217
vocational education compact;	2218

(4) The number of handicapped children, other than	2219
handicapped preschool children, entitled to attend school in the	2220
district pursuant to section 3313.64 or 3313.65 of the Revised	2221
Code who are placed with a county MR/DD board, minus the number of	2222
such children placed with a county MR/DD board in fiscal year	2223
1998. If this calculation produces a negative number, the number	2224
reported under division (A)(4) of this section shall be zero.	2225

(B) To enable the department of education to obtain the data	2226
needed to complete the calculation of payments pursuant to this	2227
chapter, in addition to the formula ADM, each superintendent shall	2228
report separately the following student counts:	2229

(1) The total average daily membership in regular day	2230
classes included in the report under division (A)(1) or (2) of	2231
this section for kindergarten, and each of grades one through	2232
twelve in schools under the superintendent's supervision;	2233

(2) The number of all handicapped preschool children	2234
enrolled as of the first day of December in classes in the	2235
district that are eligible for approval by the state board of	2236
education under division (B) of section 3317.05 of the Revised	2237
Code and the number of those classes, which shall be reported not	2238
later than the fifteenth day of December, in accordance with rules	2239
adopted under that section;	2240

(3) The number of children entitled to attend school in the	2241
district pursuant to section 3313.64 or 3313.65 of the Revised	2242
Code who are participating in a pilot project scholarship program	2243
established under sections 3313.974 to 3313.979 of the Revised	2244
Code as described in division (I)(2)(a) or (b) of this section,	2245
are enrolled in a college under Chapter 3365. of the Revised Code,	2246
except when the student is enrolled in the college while also	2247
enrolled in a community school pursuant to Chapter 3314. of the	2248
Revised Code, are enrolled in an adjacent or other school district	2249
under section 3313.98 of the Revised Code, are enrolled in a	2250
community school established under Chapter 3314. of the Revised	2251
Code, including any participation in a college pursuant to Chapter	2252
3365. of the Revised Code while enrolled in such community school,	2253
or are participating in a program operated by a county MR/DD board	2254
or a state institution;	2255

(4) The number of pupils enrolled in joint vocational	2256
schools;	2257

(5) The average daily membership of handicapped children	2258
reported under division (A)(1) or (2) of this section receiving	2259
category one special education services, described in division (A)	2260
of section 3317.013 of the Revised Code;	2261

(6) The average daily membership of handicapped children	2262
reported under division (A)(1) or (2) of this section receiving	2263
category two special education services, described in division (B)	2264
of section 3317.013 of the Revised Code;	2265

(7) The average daily membership of handicapped children	2266
reported under division (A)(1) or (2) of this section identified	2267
as having any of the handicaps specified in division (F)(3) of	2268
section 3317.02 of the Revised Code;	2269

(8) The average daily membership of pupils reported under	2270
division (A)(1) or (2) of this section enrolled in category one	2271
vocational education programs or classes, described in division	2272
(A) of section 3317.014 of the Revised Code, operated by the	2273
school district or by another district, other than a joint	2274
vocational school district, or by an educational service center;	2275

(9) The average daily membership of pupils reported under	2276
division (A)(1) or (2) of this section enrolled in category two	2277
vocational education programs or services, described in division	2278
(B) of section 3317.014 of the Revised Code, operated by the	2279
school district or another school district, other than a joint	2280
vocational school district, or by an educational service center;	2281

(10) The average number of children transported by the	2282
school district on board-owned or contractor-owned and -operated	2283
buses, reported in accordance with rules adopted by the department	2284
of education;	2285

(11)(a) The number of children, other than handicapped	2286
preschool children, the district placed with a county MR/DD board	2287
in fiscal year 1998;	2288

(b) The number of handicapped children, other than	2289
handicapped preschool children, placed with a county MR/DD board	2290
in the current fiscal year to receive category one special	2291
education services, described in division (A) of section 3317.013	2292
of the Revised Code;	2293

(c) The number of handicapped children, other than	2294
handicapped preschool children, placed with a county MR/DD board	2295
in the current fiscal year to receive category two special	2296
education services, described in division (B) of section 3317.013	2297
of the Revised Code;	2298

(d) The number of handicapped children, other than	2299
handicapped preschool children, placed with a county MR/DD board	2300
in the current fiscal year to receive category three special	2301
education services, described in division (F)(3) of section	2302
3317.02 of the Revised Code.	2303

(C) Except as otherwise provided in this section for	2304
kindergarten students, the average daily membership in divisions	2305
(B)(1) to (9) of this section shall be based upon the number of	2306
full-time equivalent students. The state board of education shall	2307
adopt rules defining full-time equivalent students and for	2308
determining the average daily membership therefrom for the	2309
purposes of divisions (A), (B), and (D) of this section. No child	2310
shall be counted as more than a total of one child in the sum of	2311
the average daily memberships of a school district under division	2312
(A), divisions (B)(1) to (9), or division (D) of this section,	2313
except as follows:	2314

(1) A child with a handicap described in section 3317.013 or	2315
division (F)(3) of section 3317.02 of the Revised Code may be	2316
counted both in formula ADM and in category one, two, or three	2317
special education ADM and, if applicable, in category one or two	2318
vocational education ADM. As provided in division (C) of section	2319
3317.02 of the Revised Code, such a child shall be counted in	2320
category one, two, or three special education ADM in the same	2321
proportion that the child is counted in formula ADM.	2322

(2) A child enrolled in vocational education programs or	2323
classes described in section 3314.014 of the Revised Code may be	2324
counted both in formula ADM and category one or two vocational	2325
education ADM and, if applicable, in category one, two, or three	2326
special education ADM. Such a child shall be counted in category	2327
one or two vocational education ADM in the same proportion as the	2328
percentage of time that the child spends in the vocational	2329
education programs or classes.	2330

Based on the information reported under this section, the	2331
department of education shall determine the total student count,	2332
as defined in section 3301.011 of the Revised Code, for each	2333
school district.	2334

(D)(1) The superintendent of each joint vocational school	2335
district shall certify to the superintendent of public instruction	2336
on or before the fifteenth day of October in each year for the	2337
first full school week in October the formula ADM, which shall	2338
consist of the average daily membership during such week, on an	2339
FTE basis, of the number of students receiving any educational	2340
services from the district, except that the following categories	2341
of students shall not be included in the determination:	2342

(a) Students enrolled in adult education classes;

2343

(b) Adjacent or other district joint vocational students	2344
enrolled in the district under an open enrollment policy pursuant	2345
to section 3313.98 of the Revised Code;	2346

(c) Students receiving services in the district pursuant to	2347
a compact, cooperative education agreement, or a contract, but who	2348
are entitled to attend school in a city, local, or exempted	2349
village school district whose territory is not part of the	2350
territory of the joint vocational district;	2351

(d) Students for whom tuition is payable pursuant to	2352
sections 3317.081 and 3323.141 of the Revised Code.	2353

(2) To enable the department of education to obtain the data	2354
needed to complete the calculation of payments pursuant to this	2355
chapter, in addition to the formula ADM, each superintendent shall	2356
report separately the average daily membership included in the	2357
report under division (D)(1) of this section for each of the	2358
following categories of students:	2359

(a) Students enrolled in each grade included in the joint	2360
vocational district schools;	2361

(b) Handicapped children receiving category one special	2362
education services, described in division (A) of section 3317.013	2363
of the Revised Code;	2364

(c) Handicapped children receiving category two special	2365
education services, described in division (B) of section 3317.013	2366
of the Revised Code;	2367

(d) Handicapped children identified as having any of the	2368
handicaps specified in division (F)(3) of section 3317.02 of the	2369
Revised Code;	2370

(e) Students receiving category one vocational education	2371
services, described in division (A) of section 3317.014 of the	2372
Revised Code;	2373

(f) Students receiving category two vocational education	2374
services, described in division (B) of section 3317.014 of the	2375
Revised Code.	2376

The superintendent of each joint vocational school district	2377
shall also indicate the city, local, or exempted village school	2378
district in which each joint vocational district pupil is entitled	2379
to attend school pursuant to section 3313.64 or 3313.65 of the	2380
Revised Code.	2381

(E) In each school of each city, local, exempted village,	2382
joint vocational, and cooperative education school district there	2383
shall be maintained a record of school membership, which record	2384
shall accurately show, for each day the school is in session, the	2385
actual membership enrolled in regular day classes. For the	2386
purpose of determining average daily membership, the membership	2387
figure of any school shall not include any pupils except those	2388
pupils described by division (A) of this section. The record of	2389
membership for each school shall be maintained in such manner that	2390
no pupil shall be counted as in membership prior to the actual	2391
date of entry in the school and also in such manner that where for	2392
any cause a pupil permanently withdraws from the school that pupil	2393
shall not be counted as in membership from and after the date of	2394
such withdrawal. There shall not be included in the membership of	2395
any school any of the following:	2396

(1) Any pupil who has graduated from the twelfth grade of a	2397
public high school;	2398

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

2399

(3) Any pupil who was enrolled in the schools of the	2400
district during the previous school year when tests were	2401
administered under section 3301.0711 of the Revised Code but did	2402
not take one or more of the tests required by that section and was	2403
not excused pursuant to division (C)(1) of that section;	2404

(4) Any pupil who has attained the age of twenty-two years,	2405
except for veterans of the armed services whose attendance was	2406
interrupted before completing the recognized twelve-year course of	2407
the public schools by reason of induction or enlistment in the	2408
armed forces and who apply for reenrollment in the public school	2409
system of their residence not later than four years after	2410
termination of war or their honorable discharge.	2411

If, however, any veteran described by division (E)(4)(b) of	2412
this section elects to enroll in special courses organized for	2413
veterans for whom tuition is paid under the provisions of federal	2414
laws, or otherwise, that veteran shall not be included in average	2415
daily membership.	2416

Notwithstanding division (E)(3) of this section, the	2417
membership of any school may include a pupil who did not take a	2418
test required by section 3301.0711 of the Revised Code if the	2419
superintendent of public instruction grants a waiver from the	2420
requirement to take the test to the specific pupil. The	2421
superintendent may grant such a waiver only for good cause in	2422
accordance with rules adopted by the state board of education.	2423

Except as provided in division (B)(2) of this section, the	2424
average daily membership figure of any local, city, exempted	2425
village, or joint vocational school district shall be determined	2426
by dividing the figure representing the sum of the number of	2427
pupils enrolled during each day the school of attendance is	2428
actually open for instruction during the first full school week in	2429
October by the total number of days the school was actually open	2430
for instruction during that week. For purposes of state funding,	2431
"enrolled" persons are only those pupils who are attending school,	2432
those who have attended school during the current school year and	2433
are absent for authorized reasons, and those handicapped children	2434
currently receiving home instruction.	2435

The average daily membership figure of any cooperative	2436
education school district shall be determined in accordance with	2437
rules adopted by the state board of education.	2438

(F)(1) If the formula ADM for the first full school week in	2439
February is at least three per cent greater than that certified	2440
for the first full school week in the preceding October, the	2441
superintendent of schools of any city, exempted village, or joint	2442
vocational school district or educational service center shall	2443
certify such increase to the superintendent of public instruction.	2444
Such certification shall be submitted no later than the fifteenth	2445
day of February. For the balance of the fiscal year, beginning	2446
with the February payments, the superintendent of public	2447
instruction shall use the increased formula ADM in calculating or	2448
recalculating the amounts to be allocated in accordance with	2449
section 3317.022 or 3317.16 of the Revised Code. In no event	2450
shall the superintendent use an increased membership certified to	2451
the superintendent after the fifteenth day of February.	2452

(2) If on the first school day of April the total number of	2453
classes or units for handicapped preschool children that are	2454
eligible for approval under division (B) of section 3317.05 of the	2455
Revised Code exceeds the number of units that have been approved	2456
for the year under that division, the superintendent of schools of	2457
any city, exempted village, or cooperative education school	2458
district or educational service center shall make the	2459
certifications required by this section for that day. If the	2460
state board of education determines additional units can be	2461
approved for the fiscal year within any limitations set forth in	2462
the acts appropriating moneys for the funding of such units, the	2463
board shall approve additional units for the fiscal year on the	2464
basis of such average daily membership. For each unit so	2465
approved, the department of education shall pay an amount computed	2466
in the manner prescribed in section 3317.161 3317.052 or 3317.19	2467
and section 3317.162 3317.053 of the Revised Code.	2468

(G)(1)(a) The superintendent of an institution operating a	2469
special education program pursuant to section 3323.091 of the	2470
Revised Code shall, for the programs under such superintendent's	2471
supervision, certify to the state board of education the average	2472
daily membership of all handicapped children in classes or	2473
programs approved annually by the state board of education, in the	2474
manner prescribed by the superintendent of public instruction.	2475

(b) The superintendent of an institution with vocational	2476
education units approved under division (A) of section 3317.05 of	2477
the Revised Code shall, for the units under the superintendent's	2478
supervision, certify to the state board of education the average	2479
daily membership in those units, in the manner prescribed by the	2480
superintendent of public instruction.	2481

(2) The superintendent of each county MR/DD board that	2482
maintains special education classes under section 3317.20 of the	2483
Revised Code or units approved by the state board of education	2484
pursuant to section 3317.05 of the Revised Code shall do both of	2485
the following:	2486

(a) Certify to the state board, in the manner prescribed by	2487
the board, the average daily membership in classes and units	2488
approved under division (D)(1) of under section 3317.05 3317.20 of	2489
the Revised Code for each school district that has placed children	2490
in the classes or units;	2491

(b) Certify to the state board, in the manner prescribed by	2492
the board, the number of all handicapped preschool children	2493
enrolled as of the first day of December in classes eligible for	2494
approval under division (B) of section 3317.05 of the Revised	2495
Code, and the number of those classes.	2496

(3)(a) If during the first full school week in February the	2497
average daily membership of the classes or units maintained by the	2498
county MR/DD board that are eligible for approval under division	2499
(D)(1) of section 3317.05 of the Revised Code is greater than the	2500
average daily membership for the preceding October, the	2501
superintendent of the board shall make the certifications required	2502
by this section for such week.	2503

(b) If on the first school day of April the number of	2504
classes or units maintained for handicapped preschool children by	2505
the county MR/DD board that are eligible for approval under	2506
division (B) of section 3317.05 of the Revised Code is greater	2507
than the number of units approved for the year under that	2508
division, the superintendent shall make the certification required	2509
by this section for that day.	2510

(c)(b) If the state board determines that additional classes	2511
or units can be approved for the fiscal year within any	2512
limitations set forth in the acts appropriating moneys for the	2513
funding of the classes and units described in division (G)(3)(a)	2514
or (b) of this section, the board shall approve and fund	2515
additional units for the fiscal year on the basis of such average	2516
daily membership. For each unit so approved, the department of	2517
education shall pay an amount computed in the manner prescribed in	2518
sections 3317.161 3317.052 and 3317.162 3317.053 of the Revised	2519
Code.	2520

(H) Except as provided in division (I) of this section, when	2521
any city, local, or exempted village school district provides	2522
instruction for a nonresident pupil whose attendance is	2523
unauthorized attendance as defined in section 3327.06 of the	2524
Revised Code, that pupil's membership shall not be included in	2525
that district's membership figure used in the calculation of that	2526
district's formula ADM or included in the determination of any	2527
unit approved for the district under section 3317.05 of the	2528
Revised Code. The reporting official shall report separately the	2529
average daily membership of all pupils whose attendance in the	2530
district is unauthorized attendance, and the membership of each	2531
such pupil shall be credited to the school district in which the	2532
pupil is entitled to attend school under division (B) of section	2533
3313.64 or section 3313.65 of the Revised Code as determined by	2534
the department of education.	2535

(I)(1) A city, local, exempted village, or joint vocational	2536
school district admitting a scholarship student of a pilot project	2537
district pursuant to division (C) of section 3313.976 of the	2538
Revised Code may count such student in its average daily	2539
membership.	2540

(2) In any year for which funds are appropriated for pilot	2541
project scholarship programs, a school district implementing a	2542
state-sponsored pilot project scholarship program that year	2543
pursuant to sections 3313.974 through 3313.979 of the Revised Code	2544
may count in average daily membership:	2545

(a) All children residing in the district and utilizing a	2546
scholarship to attend kindergarten in any alternative school, as	2547
defined in section 3313.974 of the Revised Code;	2548

(b) All children who were enrolled in the district in the	2549
preceding year who are utilizing a scholarship to attend any such	2550
alternative school.	2551

(J) The superintendent of each cooperative education school	2552
district shall certify to the superintendent of public	2553
instruction, in a manner prescribed by the state board of	2554
education, the applicable average daily memberships for all	2555
students in the cooperative education district, also indicating	2556
the city, local, or exempted village district where each pupil is	2557
entitled to attend school under section 3313.64 or 3313.65 of the	2558
Revised Code.	2559

Sec. 3317.05.  (A) For the purpose of calculating payments	2560
under sections 3317.161 3317.052 and 3317.162 3317.053 of the	2561
Revised Code, the state board of education shall determine for	2562
each institution, by the last day of January of each year and	2563
based on information certified under section 3317.03 of the	2564
Revised Code, the number of vocational education units or	2565
fractions of units approved by the state board on the basis of	2566
standards and rules adopted by the state board. As used in this	2567
division, "institution" means an institution operated by a	2568
department specified in section 3323.091 of the Revised Code and	2569
that provides vocational education programs under the supervision	2570
of the division of vocational education of the department of	2571
education that meet the standards and rules for these programs,	2572
including licensure of professional staff involved in the	2573
programs, as established by the state board of education.	2574

(B) For the purpose of calculating payments under sections	2575
3317.052, 3317.053, 3317.11, 3317.161, 3317.162, and 3317.19 of	2576
the Revised Code, the state board shall determine, based on	2577
information certified under section 3317.03 of the Revised Code,	2578
the following by the last day of January of each year for each	2579
educational service center, for each school district, including	2580
each cooperative education school district, for each institution	2581
eligible for payment under section 3323.091 of the Revised Code,	2582
and for each county MR/DD board: the number of classes operated	2583
by the school district, service center, institution, or county	2584
MR/DD board for handicapped preschool children, or fraction	2585
thereof, including in the case of a district or service center	2586
that is a funding agent, classes taught by a licensed teacher	2587
employed by that district or service center under section 3313.841	2588
of the Revised Code, approved annually by the state board on the	2589
basis of standards and rules adopted by the state board.	2590

(C) For the purpose of calculating payments under sections	2591
3317.052, 3317.053, 3317.11, 3317.161, 3317.162, and 3317.19 of	2592
the Revised Code, the state board shall determine, based on	2593
information certified under section 3317.03 of the Revised Code,	2594
the following by the last day of January of each year for each	2595
school district, including each cooperative education school	2596
district, for each institution eligible for payment under section	2597
3323.091 of the Revised Code, and for each county MR/DD board: the	2598
number of preschool handicapped related services units for child	2599
study, occupational, physical, or speech and hearing therapy,	2600
special education supervisors, and special education coordinators	2601
approved annually by the state board on the basis of standards and	2602
rules adopted by the state board.	2603

(D) For the purpose of calculating payments under sections	2604
3317.161 3317.052 and 3317.162 3317.053 of the Revised Code, the	2605
state board shall determine, based on information certified under	2606
section 3317.03 of the Revised Code, the following by the last day	2607
of January of each year for each institution eligible for payment	2608
under section 3323.091 of the Revised Code, and for each county	2609
MR/DD board:	2610

(1) The number of classes operated by an institution or	2611
county MR/DD board for handicapped children other than handicapped	2612
preschool children, or fraction thereof, approved annually by the	2613
state board on the basis of standards and rules adopted by the	2614
state board;	2615

(2) The number of related services units for children other	2616
than handicapped preschool children for child study, occupational,	2617
physical, or speech and hearing therapy, special education	2618
supervisors, and special education coordinators approved annually	2619
by the state board on the basis of standards and rules adopted by	2620
the state board.	2621

(E) All of the arithmetical calculations made under this	2622
section shall be carried to the second decimal place. The total	2623
number of units for school districts, service centers, and	2624
institutions approved annually by the state board under this	2625
section shall not exceed the number of units included in the state	2626
board's estimate of cost for these units and appropriations made	2627
for them by the general assembly.	2628

In the case of units described in division (D)(1) of this	2629
section operated by county MR/DD boards and institutions eligible	2630
for payment under section 3323.091 of the Revised Code, the state	2631
board shall approve only units for persons who are under age	2632
twenty-two on the first day of the academic year, but not less	2633
than six years of age on the thirtieth day of September of that	2634
year, except that such a unit may include one or more children who	2635
are under six years of age on the thirtieth day of September if	2636
such children have been admitted to the unit pursuant to rules of	2637
the state board. In the case of handicapped preschool units	2638
described in division (B) of this section operated by county MR/DD	2639
boards and institutions eligible for payment under section	2640
3323.091 of the Revised Code, the state board shall approve only	2641
preschool units for children who are under age six but not less	2642
than age three on the thirtieth day of September of the academic	2643
year, except that such a unit may include one or more children who	2644
are under age three or are age six or over on the thirtieth day of	2645
September if such children have been admitted to the unit pursuant	2646
to rules of the state board of education. The number of units for	2647
county MR/DD boards and institutions eligible for payment under	2648
section 3323.091 of the Revised Code approved by the state board	2649
under this section shall not exceed the number that can be funded	2650
with appropriations made for such purposes by the general	2651
assembly.	2652

No unit shall be approved under divisions (B) to (D) of this	2653
section unless a plan has been submitted and approved under	2654
Chapter 3323. of the Revised Code.	2655

(F) The department shall approve units or fractions thereof	2656
for gifted children on the basis of standards and rules adopted by	2657
the board.	2658

Sec. 3317.051.  (A)(1) Notwithstanding sections 3317.05 and	2659
3317.11 of the Revised Code, a unit funded pursuant to division	2660
(P) of section 3317.024 or division (A)(2) of section 3317.161	2661
3317.052 of the Revised Code shall not be approved for state	2662
funding in one school district, including any cooperative	2663
education school district or any educational service center, to	2664
the extent that such unit provides programs in or services to	2665
another district which receives payment pursuant to section	2666
3317.04 of the Revised Code.	2667

(2) Any city, local, exempted village, or cooperative	2668
education school district or any educational service center may	2669
combine partial unit eligibility for handicapped preschool	2670
programs pursuant to section 3317.05 of the Revised Code, and such	2671
combined partial units may be approved for state funding in one	2672
school district or service center.	2673

(B) After units have been initially approved for any fiscal	2674
year under section 3317.05 of the Revised Code, no unit shall be	2675
subsequently transferred from a school district or educational	2676
service center to another city, exempted village, local, or	2677
cooperative education school district or educational service	2678
center or to an institution or county MR/DD board solely for the	2679
purpose of reducing the financial obligations of the school	2680
district in a fiscal year it receives payment pursuant to section	2681
3317.04 of the Revised Code.	2682

Sec. 3317.161.        Sec.  .        Sec. 3317.052.  As used in this section,	2683
"institution" means an institution operated by a department	2684
specified in section 3323.091 of the Revised Code.	2685

(A)(1) The department of education shall pay each school	2686
district, educational service center, institution eligible for	2687
payment under section 3323.091 of the Revised Code, or county	2688
MR/DD board an amount for the total of all classroom units for	2689
handicapped preschool children approved under division (B) of	2690
section 3317.05 of the Revised Code. For each unit, the amount	2691
shall be the sum of the minimum salary for the teacher of the	2692
unit, calculated on the basis of the teacher's training level and	2693
years of experience pursuant to section 3317.13 of the Revised	2694
Code, plus fifteen per cent of that minimum salary amount, and	2695
eight thousand twenty-three dollars.	2696

(2) The department shall pay each school district,	2697
educational service center, institution eligible for payment under	2698
section 3323.091 of the Revised Code, or county MR/DD board an	2699
amount for the total of all related services units for handicapped	2700
preschool children approved under division (C) of section 3317.05	2701
of the Revised Code. For each such unit, the amount shall be the	2702
sum of the minimum salary for the teacher of the unit calculated	2703
on the basis of the teacher's training level and years of	2704
experience pursuant to section 3317.13 of the Revised Code,	2705
fifteen per cent of that minimum salary amount, and two thousand	2706
one hundred thirty-two dollars.	2707

(B) If a school district or, educational service center has	2708
had additional handicapped preschool units approved for the year	2709
under division (F)(2) of section 3317.03 of the Revised Code, or	2710
if a county MR/DD board has had additional handicapped preschool	2711
units approved for the year under division (F)(2) or (G)(3) of	2712
section 3317.03 of the Revised Code, the district, educational	2713
service center, or board shall receive an additional amount during	2714
the last half of the fiscal year. For each district, center, or	2715
board, the additional amount for each unit shall equal fifty per	2716
cent of the amounts computed for the unit in the manner prescribed	2717
by division (A) of this section and division (C) of section	2718
3317.162 3317.053 of the Revised Code.	2719

(C)(1) The department shall pay each institution eligible	2720
for payment under section 3323.091 of the Revised Code or county	2721
MR/DD board an amount for the total of all special education units	2722
approved under division (D)(1) of section 3317.05 of the Revised	2723
Code. The amount for each unit shall be the sum of the minimum	2724
salary for the teacher of the unit, calculated on the basis of the	2725
teacher's training level and years of experience pursuant to	2726
section 3317.13 of the Revised Code, plus fifteen per cent of that	2727
minimum salary amount, and eight thousand twenty-three dollars.	2728

(2) The department shall pay each institution eligible for	2729
payment under section 3323.091 of the Revised Code or county MR/DD	2730
board an amount for the total of all related services units	2731
approved under division (D)(2) of section 3317.05 of the Revised	2732
Code. The amount for each unit shall be the sum of the minimum	2733
salary for the teacher of the unit, calculated on the basis of the	2734
teacher's training level and years of experience pursuant to	2735
section 3317.13 of the Revised Code, plus fifteen per cent of that	2736
minimum salary amount, and two thousand one hundred thirty-two	2737
dollars.	2738

(3) If a county MR/DD board has had additional units for	2739
handicapped children other than handicapped preschool children	2740
approved under division (G)(3) of section 3317.03 of the Revised	2741
Code, the board shall receive an additional amount during the last	2742
half of the fiscal year. For each board, the additional amount	2743
for each unit shall equal fifty per cent of the amount computed	2744
for the unit in the manner prescribed by division (C)(1) of this	2745
section and division (C) of section 3317.162 of the Revised Code.	2746

(D) The department shall pay each institution approved for	2747
vocational education units under division (A) of section 3317.05	2748
of the Revised Code an amount for the total of all the units	2749
approved under that division. The amount for each unit shall be	2750
the sum of the minimum salary for the teacher of the unit,	2751
calculated on the basis of the teacher's training level and years	2752
of experience pursuant to section 3317.13 of the Revised Code,	2753
plus fifteen per cent of that minimum salary amount, and nine	2754
thousand five hundred ten dollars.	2755

Sec. 3317.162.        Sec.  .        Sec. 3317.053.  (A) As used in this section:

2756

(1) "State share percentage" has the same meaning as in	2757
section 3317.022 of the Revised Code.	2758

(2) "Dollar amount" means the amount shown in the following	2759
table for the corresponding type of unit and the appropriate	2760
fiscal year:	2761

(3) "Average unit amount" means the amount shown in the	2767
following table for the corresponding type of unit:	2768

(B) In the case of each unit described in division (B), (C),	2774
or (F) of section 3317.05 of the Revised Code and allocated to a	2775
city, local, or exempted village school district, the department	2776
of education, in addition to the amounts specified in division (P)	2777
of section 3317.024 and sections 3317.161 3317.052 and 3317.19 of	2778
the Revised Code, shall pay a supplemental unit allowance equal to	2779
the sum of the following amounts:	2780

(1) An amount equal to 50% of the average unit amount for	2781
the unit;	2782

(2) An amount equal to the percentage of the dollar amount	2783
for the unit that equals the district's state share percentage.	2784

If, prior to the fifteenth day of May of a fiscal year, a	2785
school district's aid computed under section 3317.022 of the	2786
Revised Code is recomputed pursuant to section 3317.027 or	2787
3317.028 of the Revised Code, the department shall also recompute	2788
the district's entitlement to payment under this section utilizing	2789
a new state share percentage. Such new state share percentage	2790
shall be determined using the district's recomputed basic aid	2791
amount pursuant to section 3317.027 or 3317.028 of the Revised	2792
Code. During the last six months of the fiscal year, the	2793
department shall pay the district a sum equal to one-half of the	2794
recomputed payment in lieu of one-half the payment otherwise	2795
calculated under this section.	2796

(C)(1) In the case of each unit allocated to an institution	2797
pursuant to division (A) of section 3317.05 of the Revised Code,	2798
the department, in addition to the amount specified in section	2799
3317.161 3317.052 of the Revised Code, shall pay a supplemental	2800
unit allowance of $7,227.	2801

(2) In the case of each unit described in division (B) or	2802
(D)(1) of section 3317.05 of the Revised Code that is allocated to	2803
any entity other than a city, exempted village, or local school	2804
district, the department, in addition to the amount specified in	2805
section 3317.161 3317.052 of the Revised Code, shall pay a	2806
supplemental unit allowance of $7,799.	2807

(3) In the case of each unit described in division (C) or	2808
(D)(2) of section 3317.05 of the Revised Code and allocated to any	2809
entity other than a city, exempted village, or local school	2810
district, the department, in addition to the amounts specified in	2811
section 3317.161 3317.052 of the Revised Code, shall pay a	2812
supplemental unit allowance of $2,966.	2813

(4) In the case of each unit described in division (F) of	2814
section 3317.05 of the Revised Code and allocated to an	2815
educational service center, the department, in addition to the	2816
amounts specified in division (P) of section 3317.024 of the	2817
Revised Code, shall pay a supplemental unit allowance of $4,251 in	2818
fiscal year 2000 and $5,251 in fiscal year 2001.	2819

Sec. 3317.11.  (A) Annually, on or before a date designated	2820
by the state board of education, each educational service center	2821
governing board shall prepare a budget of operating expenses for	2822
the ensuing year for the service center on forms prepared and	2823
furnished by the state board of education and shall certify the	2824
budget to the state board of education, together with such other	2825
information as the board may require. Such budget shall consist	2826
of two parts. Part (A) shall include the cost of the salaries,	2827
employers retirement contributions, and travel expenses of	2828
supervisory teachers approved by the state board of education. The	2829
amount derived from the calculation for such units in part (A) of	2830
the governing board budget shall be the sum of:	2831

(1) The sum of the minimum salaries calculated, pursuant to	2832
section 3317.13 of the Revised Code, for each approved licensed	2833
employee of the governing board;	2834

(2) An additional salary allowance proportional to the	2835
length of the extended term of service not to exceed three months	2836
for each supervisory and child study teacher whose term of service	2837
in any year is extended beyond the terms of service of regular	2838
classroom teachers;	2839

(3) An allowance equal to fifteen per cent of the amount	2840
computed under division (A)(1) of this section;	2841

(4) An allowance for necessary travel expenses, for each of	2842
the personnel approved in part (A) of the budget, limited to two	2843
hundred twenty-three dollars and sixteen cents per month, or two	2844
thousand six hundred seventy-eight dollars per year per person	2845
employed, whichever is the lesser.	2846

Part (B) shall include the cost of all other lawful	2847
expenditures of the governing board. The state board of education	2848
shall review such budget and may approve, increase, or decrease	2849
such budget.	2850

The governing board shall be reimbursed by the state board of	2851
education from state funds for the cost of part (A) of the budget.	2852
The governing board shall be reimbursed by the state board of	2853
education, from state funds for the cost of part (B) of the	2854
approved budget that is in excess of six dollars and fifty cents	2855
times the service center ADM. If the governing board provides	2856
services to city or exempted village school districts pursuant to	2857
section 3313.843 of the Revised Code, the governing board shall be	2858
reimbursed from state funds for the cost of part (B) of the budget	2859
that is in excess of six dollars and fifty cents times the sum of	2860
the service center ADM and the client ADMs of the city or exempted	2861
village districts to which such services are provided. The cost	2862
of part (B) not in excess of six dollars and fifty cents times the	2863
number of such ADM shall be apportioned by the state board of	2864
education among the local school districts in the territory of the	2865
service center, or among all districts to which the governing	2866
board provides services, on the basis of the total number of	2867
pupils in each school district.	2868

If part (B) of the budget is in excess of that approved by	2869
the state board of education, the excess cost shall be apportioned	2870
by the state board of education among the local school districts	2871
in the territory of the service center on the basis of the total	2872
number of such pupils in each such school district, provided that	2873
a majority of the boards of education of such local school	2874
districts approve such apportionment. The state board of	2875
education shall initiate and supervise the procedure by which the	2876
local boards shall approve or disapprove such apportionment.	2877

The amounts so apportioned shall be certified to the	2878
treasurers of the various school districts. In the case of each	2879
district such amount shall be deducted by the state board of	2880
education from funds allocated to the district pursuant to	2881
division (E) of section 3317.023 of the Revised Code.	2882

The state board of education shall certify to the director of	2883
budget and management for payment the total of the deductions,	2884
whereupon the amount shall be paid to the governing board of each	2885
service center, to be deposited to the credit of a separate fund,	2886
hereby created, to be known as the educational service center	2887
governing board fund.	2888

An educational service center may provide special education	2889
to students in its local districts or in client districts. A	2890
service center is eligible for funding under division (J) of	2891
section 3317.024 of the Revised Code and eligible for state	2892
subsidies for the purchase of school buses under section 3317.07	2893
of the Revised Code. Special education units for gifted children	2894
may be operated by a governing board. Vocational education may be	2895
provided by a governing board. A governing board may conduct	2896
driver education for pupils enrolled in a high school for which	2897
the state board of education prescribes minimum standards.	2898

Every local school district shall be provided supervisory	2899
services by its governing board as approved by the state board of	2900
education. A city or exempted village school district shall be	2901
considered to be provided supervisory services by a governing	2902
board if it has entered into an agreement for the governing board	2903
to provide any services under section 3313.843 of the Revised	2904
Code. Supervisory services shall not exceed one supervisory	2905
teacher for the first fifty classroom teachers employed in all	2906
districts that are provided supervisory services calculated under	2907
section 3317.023 of the Revised Code and one supervisory teacher	2908
for every additional one hundred such classroom teachers so	2909
calculated. Reimbursement for such supervisory services shall be	2910
a deduction by the state board of education from the payment to	2911
the school district pursuant to division (E) of section 3317.023	2912
of the Revised Code. Deductions for all supervisory services and	2913
extended services for supervisory and child study shall be	2914
apportioned among local school districts within the territory of	2915
the service center and any city or exempted village districts that	2916
have entered into agreements with a service center pursuant to	2917
section 3313.843 of the Revised Code by the state board of	2918
education on the basis of the total number of pupils in each	2919
school district, except that where such services are provided to	2920
districts other than local school districts within the service	2921
center territory and city or exempted village districts having	2922
agreements with the service center, such charges shall be	2923
apportioned among all participating districts on the basis of the	2924
total number of pupils in each school district. All deductions	2925
from state funding to school districts required for reimbursement	2926
of governing boards by division (E) of section 3317.023 of the	2927
Revised Code shall be made from the total of the payment computed	2928
for the district under this chapter, after making any other	2929
adjustments in that payment required by law.	2930

(B)(1) In addition to the payments made under division (A)	2931
of this section, except as otherwise provided in division (C) of	2932
this section, the department of education shall pay each governing	2933
board the amount in the following schedule for the specified	2934
fiscal year, thirty-seven dollars times the sum of the service	2935
center ADM and the sum of the client ADMs of all its client	2936
districts:	2937

(a) In fiscal year 2000, thirty-six dollars;

2938

(b) In in fiscal year 2001, thirty-seven dollars years 2002	2939
and 2003.	2940

(2) In addition to other payments under this section, the	2941
department shall pay each educational service center the amounts	2942
due to it from school districts pursuant to contracts, compacts,	2943
or agreements under which the service center furnishes services to	2944
the districts or their students. In order to receive payment	2945
under this division, an educational service center shall furnish	2946
either a copy of the applicable contract, compact, or agreement	2947
clearly indicating the amounts of the payments, or a written	2948
statement of the payments owed signed by the superintendent or	2949
treasurer of the responsible school district.	2950

The amounts paid to service centers under division (B)(2) of	2951
this section shall be deducted from payments to school districts	2952
pursuant to division (K)(2) of section 3317.023 of the Revised	2953
Code.	2954

(C) Each multicounty service center shall receive a payment	2955
each fiscal year equal to forty dollars and fifty-two cents times	2956
the sum of the service center ADM and the client ADMs of all its	2957
client districts.	2958

(D) Each city, exempted village, local, joint vocational, or	2959
cooperative education school district shall pay to the governing	2960
board of an educational service center any amounts agreed to for	2961
each child enrolled in the district who receives special education	2962
and related services or vocational education from the educational	2963
service center.	2964

(E) As used in this section:

2965

(1) "Service center ADM" means the total of each of the	2966
following for all local school districts within the limits of an	2967
educational service center's territory:	2968

(a) The formula ADM;

2969

(b) The kindergarten average daily membership included in	2970
the formula ADM;	2971

(c) Three-quarters of the number of students reported under	2972
division (B)(4) of section 3317.03 of the Revised Code;	2973

(d) The average daily membership of handicapped preschool	2974
children reported under division (B)(2) of section 3317.03 of the	2975
Revised Code;	2976

(e) The number of preschool students certified under	2977
division (B) of section 3317.032 of the Revised Code.	2978

(2) "Client ADM" means the total of each number described	2979
under divisions (E)(1)(a) to (e) of this section for a client	2980
district.	2981

(3) "Client district" means a city or exempted village school	2982
district that has entered into an agreement to receive services	2983
from a service center pursuant to section 3313.843 of the Revised	2984
Code.	2985

(4) "Multicounty service center" means a service center that	2986
includes territory that formerly was included in the territory of	2987
at least three former service centers or county school districts,	2988
which former centers or districts engaged in one or more mergers	2989
pursuant to section 3311.053 of the Revised Code to form the	2990
present center.	2991

Sec. 3317.16.  (A) As used in this section:

2992

(1) "State share percentage" means the percentage calculated	2993
for a joint vocational school district as follows:	2994

(a) Calculate the state base cost funding amount for the	2995
district under division (B) of this section. If the district	2996
would not receive any base cost funding for that year under that	2997
division, the district's state share percentage is zero.	2998

(b) If the district would receive base cost funding under	2999
that division, divide that base cost amount by an amount equal to	3000
the following:	3001

cost-of-doing-business factor X

3002

the formula amount X

3003

the greater of formula ADM or

3004

three-year average formula ADM

3005

The resultant number is the district's state share	3006
percentage.	3007

(2) The "total special education weight" for a joint	3008
vocational school district shall be calculated in the same manner	3009
as prescribed in division (B)(1) of section 3317.022 of the	3010
Revised Code.	3011

(3) The "total vocational education weight" for a joint	3012
vocational school district shall be calculated in the same manner	3013
as prescribed in division (B)(4)(5) of section 3317.022 of the	3014
Revised Code.	3015

(4) The "adjusted total taxable value" of a joint vocational	3016
school district shall be determined by adding the adjusted total	3017
taxable values of all its constituent school districts for the	3018
applicable fiscal year.	3019

(B) The department of education shall compute and distribute	3020
state base cost funding to each joint vocational school district	3021
for the fiscal year in accordance with the following formula:	3022

(cost-of-doing-business factor X

3023

formula amount X the greater of formula

3024

ADM or three-year average formula ADM) -

3025

(.0005 X adjusted total taxable value)

3026

If the difference obtained under this division is a negative	3027
number, the district's computation shall be zero.	3028

(C)(1) The department shall compute and distribute state	3029
vocational education additional weighted costs funds to each joint	3030
vocational school district in accordance with the following	3031
formula:	3032

state share percentage X formula amount X

3033

total vocational education weight

3034

(2) The department shall compute for each joint vocational	3035
school district state funds for vocational education associated	3036
services costs in accordance with the following formula:	3037

state share percentage X .05 X

3038

the formula amount X the sum of

3039

categories one and two vocational

3040

education ADM

3041

In any fiscal year, a joint vocational school district	3042
receiving funds under division (C)(2) of this section, or through	3043
a transfer of funds pursuant to division (L) of section 3317.023	3044
of the Revised Code, shall spend those funds only for the purposes	3045
that the department designates as approved for vocational	3046
education associated services expenses, which may include such	3047
purposes as apprenticeship coordinators, coordinators for other	3048
vocational education services, vocational evaluation, and other	3049
purposes designated by the department. The department may deny	3050
payment under division (C)(2) of this section to any district that	3051
the department determines is not operating those services or is	3052
using funds paid under division (C)(2) of this section, or through	3053
a transfer of funds pursuant to division (L) of section 3317.023	3054
of the Revised Code, for other purposes.	3055

(D)(1) The department shall compute and distribute state	3056
special education and related services additional weighted costs	3057
funds to each joint vocational school district in accordance with	3058
the following formula:	3059

state share percentage X formula amount X	3060

total special education weight

3061

(2)(a) As used in this division, the "personnel allowance"	3062
means twenty-five thousand dollars in fiscal year 2000 and thirty	3063
thousand dollars in fiscal year 2001 years 2002 and 2003.	3064

(b) For the provision of speech services to students and for	3065
no other purpose, the department shall pay each joint vocational	3066
school district an amount calculated under the following formula:	3067

(formula ADM divided by 2000) X the personnel

3068

allowance X state share percentage

3069

(E) If a joint vocational school district's costs for a	3070
fiscal year for a student in its category one, two, or three	3071
special education ADM are twenty-five thousand dollars or more,	3072
the district may submit to the superintendent of public	3073
instruction documentation, as prescribed by the superintendent, of	3074
all of its costs for that student. Upon submission of	3075
documentation for a student of the type and in the manner	3076
prescribed, the department shall pay to the district an amount	3077
equal to the sum of the following:	3078

(1) One-half of the district's costs for the student in	3079
excess of twenty-five thousand dollars;	3080

(2) The product of one-half of the district's costs for the	3081
student in excess of twenty-five thousand dollars multiplied by	3082
the district's state share percentage.	3083

The district shall only report, and the department shall only	3084
pay for, the costs of educational expenses and the related	3085
services provided to the student in accordance with the student's	3086
individualized education program. Any legal fees, court costs, or	3087
other costs associated with any cause of action relating to the	3088
student may not be included in the amount.	3089

(F) Each fiscal year, the department shall pay each joint	3090
vocational school district an amount for adult technical and	3091
vocational education and specialized consultants.	3092

(G)(1) In any fiscal year, a joint vocational school	3093
district receiving funds under division (D) of this section shall	3094
spend on the related services specified in division (B)(3)(4) of	3095
section 3317.022 of the Revised Code at least the lesser of the	3096
following:	3097

(a) The amount the district spent on those related services	3098
in the preceding fiscal year;	3099

(b) 1/8 X {[cost-of-doing-business factor X the formula	3100
amount X (the category one special education ADM + category two	3101
special education ADM + category three special education ADM)] +	3102
the amount calculated for the fiscal year under division (D)(1) of	3103
this section + the local share of special education and related	3104
services additional weighted costs}.	3105

(2) A joint vocational school district's local share of	3106
special education and related services additional weighted costs	3107
equals:	3108

(1 - state share percentage) X	3109

Total special education weight X

3110

the formula amount

3111

(H) In any fiscal year, if the total of all payments made to	3112
a joint vocational school district under divisions (B) to (D) of	3113
this section and division (R) of section 3317.024 of the Revised	3114
Code is less than the amount that district received in fiscal year	3115
1999 under the version of this section in effect that year, plus	3116
the amount that district received under the version of section	3117
3317.162 of the Revised Code in effect that year and minus the	3118
amounts received that year for driver education and adult	3119
education, the department shall pay the district an additional	3120
amount equal to the difference between those two amounts.	3121

(I) In fiscal years 2000 and 2001, each joint vocational	3122
school district shall continue to offer the same number of the	3123
vocational education programs that the district offered in fiscal	3124
year 1999, unless the department of education expressly agrees	3125
that the district may offer fewer programs in either or both	3126
fiscal year 2000 or 2001.	3127

Sec. 3317.20.  This section does not apply to handicapped	3128
preschool children.	3129

(A) As used in this section:

3130

(1) "Applicable weight" means:

3131

(a) For a handicapped child receiving special education	3132
services for a handicap specified in division (A) of section	3133
3317.013 of the Revised Code, the multiple specified in that	3134
division;	3135

(b) For a handicapped child receiving special education	3136
services for a handicap specified in division (B) of section	3137
3317.013 or division (F)(3) of section 3317.02 of the Revised	3138
Code, the multiple specified in division (B) of section 3317.013	3139
of the Revised Code.	3140

(2) "Child's school district" means the school district in	3141
which a child is entitled to attend school pursuant to section	3142
3313.64 or 3313.65 of the Revised Code.	3143

(3) "State share percentage" means the state share percentage	3144
of the child's school district as defined in section 3317.022 of	3145
the Revised Code.	3146

(B) Notwithstanding sections 3317.03, 3317.05, 3317.161, and	3147
3317.162 of the Revised Code, the department of education shall	3148
not approve special education and related services units, other	3149
than for handicapped preschool children, in county MR/DD boards in	3150
fiscal years 1999, 2000, and 2001. During those fiscal years,	3151
state funding for special education and related services provided	3152
to school-age children by county MR/DD boards shall be provided	3153
under divisions (C) to (E) of this section.	3154

(C) Except as provided in division (D)(C) of this section,	3155
the department shall annually pay each county MR/DD board an	3156
amount calculated under the following formula for each handicapped	3157
child, other than a handicapped preschool child, for whom the	3158
county MR/DD board provides special education and related	3159
services:	3160

(formula amount X the cost-of-doing-business factor

3161

for the child's school district) +

3162

(state share percentage X formula amount X

3163

the applicable weight)

3164

(D)(C) If any school district places with a county MR/DD	3165
board more handicapped children than it had placed with a county	3166
MR/DD board in fiscal year 1998, the department shall not make a	3167
payment under division (C)(B) of this section for the number of	3168
children exceeding the number placed in fiscal year 1998. The	3169
department instead shall deduct from the district's payments under	3170
this chapter, and pay to the county MR/DD board, an amount	3171
calculated in accordance with the formula prescribed in division	3172
(C)(B) of this section for each child over the number of children	3173
placed in fiscal year 1998.	3174

(E)(D) The department shall calculate for each county MR/DD	3175
board receiving payments under divisions (C)(B) and (D)(C) of this	3176
section the following amounts:	3177

(1) The amount received by the county MR/DD board for	3178
approved special education and related services units, other than	3179
preschool handicapped units, in fiscal year 1998, divided by the	3180
total number of children served in the units that year;	3181

(2) The product of the quotient calculated under division	3182
(E)(D)(1) of this section times the number of children for whom	3183
payments are made under divisions (C)(B) and (D)(C) of this	3184
section.	3185

If the amount calculated under division (E)(D)(2) of this	3186
section is greater than the total amount calculated under	3187
divisions (C)(B) and (D)(C) of this section, the department shall	3188
pay the county MR/DD board one hundred per cent of the difference	3189
in addition to the payments under divisions (C)(B) and (D)(C) of	3190
this section.	3191

Sec. 3318.31.  (A) The Ohio school facilities commission may	3192
perform any act and ensure the performance of any function	3193
necessary or appropriate to carry out the purposes of, and	3194
exercise the powers granted under, Chapter 3318. of the Revised	3195
Code, including any of the following:	3196

(1) Employ and fix the compensation of such employees as will	3197
facilitate the activities and purposes of the commission, and who	3198
shall serve at the pleasure of the commission.	3199

(2) Adopt, amend, and rescind, pursuant to section 111.15 of	3200
the Revised Code, rules for the administration of programs	3201
authorized under Chapter 3318. of the Revised Code.	3202

(3)(2) Contract with, retain the services of, or designate,	3203
and fix the compensation of, such agents, accountants,	3204
consultants, advisers, and other independent contractors as may be	3205
necessary or desirable to carry out the programs authorized under	3206
Chapter 3318. of the Revised Code.	3207

(4)(3) Receive and accept any gifts, grants, donations, and	3208
pledges, and receipts therefrom, to be used for the programs	3209
authorized under Chapter 3318. of the Revised Code.	3210

(5)(4) Make and enter into all contracts, commitments, and	3211
agreements, and execute all instruments, necessary or incidental	3212
to the performance of its duties and the execution of its rights	3213
and powers under Chapter 3318. of the Revised Code.	3214

(B) The commission shall appoint and fix the compensation of	3215
an executive director who shall serve at the pleasure of the	3216
commission. The executive director shall supervise the operations	3217
of the commission. The executive director also shall employ and	3218
fix the compensation of such employees as will facilitate the	3219
activities and purposes of the commission, who shall serve at the	3220
pleasure of the executive director.	3221

(C) The attorney general shall serve as the legal	3222
representative for the commission and may appoint other counsel as	3223
necessary for that purpose in accordance with section 109.07 of	3224
the Revised Code.	3225

Sec. 3319.19.  (A) Upon Except as provided in division (D) of	3226
this section or division (A)(2) of section 3313.37 of the Revised	3227
Code, upon request, the board of county commissioners shall	3228
provide and equip offices in the county for the use of the	3229
superintendent of an educational service center, and shall provide	3230
heat, light, water, and janitorial services for such offices. Such	3231
offices shall be the permanent headquarters of the superintendent	3232
and shall be used by the governing board of the service center	3233
when it is in session. Except as provided in division (B) of this	3234
section, such offices shall be located in the county seat or, upon	3235
the approval of the governing board, may be located outside of the	3236
county seat.	3237

(B) In the case of a service center formed under section	3238
3311.053 of the Revised Code, the governing board shall designate	3239
the site of its offices. The Except as provided in division (D) of	3240
this section or division (A)(2) of section 3313.37 of the Revised	3241
Code, the board of county commissioners of the county in which the	3242
designated site is located shall provide and equip the offices as	3243
under division (A) of this section, but the costs of such offices	3244
and equipment not covered by funds received under section 307.031	3245
of the Revised Code shall be apportioned among the boards of	3246
county commissioners of all counties having any territory in the	3247
area under the control of the governing board, according to the	3248
proportion of local school district pupils under the supervision	3249
of such board residing in the respective counties. Where there is	3250
a dispute as to the amount any board of county commissioners is	3251
required to pay, the probate judge of the county in which the	3252
greatest number of pupils under the supervision of the governing	3253
board reside shall apportion such costs among the boards of county	3254
commissioners and notify each such board of its share of the	3255
costs.	3256

(C) By the first day of March of each year, the	3257
superintendent of public instruction shall certify to the tax	3258
commissioner the ADM and the number of full-time licensed	3259
employees of each educational service center for the purposes of	3260
the distribution of funds to boards of county commissioners	3261
required under division (B) of section 307.031 of the Revised	3262
Code. As used in this section, "ADM" means the formula ADMs of	3263
all the local districts having territory in the service center, as	3264
certified in October of the previous year by the service center	3265
superintendent to the state board of education under section	3266
3317.03 of the Revised Code. As used in this division, "licensed	3267
employee" has the same meaning as in section 307.031 of the	3268
Revised Code.	3269

(D) The superintendent of a service center may annually	3270
submit a proposal approved by the board of county commissioners to	3271
the state superintendent of public instruction, in such manner and	3272
by such date as specified by the state board of education, for a	3273
grant for the board of county commissioners to do one of the	3274
following:	3275

(1) To improve or enhance the offices and equipment provided	3276
under division (A) or (B) of this section or section 3301.0712 of	3277
the Revised Code;	3278

(2) If funds received under division (B) of section 307.031	3279
of the Revised Code are insufficient to provide for the actual	3280
cost of meeting the requirements of division (A) or (B) of section	3281
3319.19 and division (A)(2) of section 3301.0712 of the Revised	3282
Code, to provide funds to meet such costs.	3283

Any service center superintendent intending to submit a	3284
proposal shall submit it to the board of county commissioners that	3285
provides and equips the office of the superintendent for approval	3286
at least twenty days before the date of submission to the	3287
superintendent of public instruction. The superintendent of	3288
public instruction shall evaluate the proposals and select those	3289
that will most benefit the local districts supervised by the	3290
governing boards under standards adopted by the state board. For	3291
each proposal selected for a grant, the superintendent of public	3292
instruction shall determine the grant amount and, with the	3293
approval of the superintendent and the board of county	3294
commissioners, may modify a grant proposal to reflect the amount	3295
of money available for the grant. The superintendent of public	3296
instruction shall notify the board of county commissioners and the	3297
tax commissioner of the selection of the proposal as submitted or	3298
modified and the amount of the grant. If, pursuant to division	3299
(C) of section 307.031 of the Revised Code, the board of county	3300
commissioners accepts the proposal and grant, it shall expend the	3301
funds as specified in the grant proposal. If the board of county	3302
commissioners rejects the proposal and grant, the superintendent	3303
of public instruction may select another proposal from among the	3304
district proposals that initially failed to be selected for a	3305
grant.	3306

The state board of education shall adopt rules to implement	3307
the requirements of this section Not later than the thirty-first	3308
day of March of 2002, 2003, and 2004, a board of county	3309
commissioners required to provide or equip offices pursuant to	3310
division (A) or (B) of this section shall make a written estimate	3311
of the total cost it will incur for the ensuing fiscal year to	3312
provide and equip the offices and to provide heat, light, water,	3313
and janitorial services for such offices. The total estimate of	3314
cost shall include:	3315

(1) The total square feet of space to be utilized by the	3316
educational service center;	3317

(2) The total square feet of any common areas that should	3318
be reasonably allocated to the center and the methodology for	3319
making this allocation;	3320

(3) The actual cost per square foot for both the space	3321
utilized by and the common area allocated to the center;	3322

(4) An explanation of the methodology used to determine the	3323
per square foot cost;	3324

(5) The estimated cost of providing heat, light, and	3325
water, including an explanation of how these costs were	3326
determined;	3327

(6) The estimated cost of providing janitorial services	3328
including an explanation of the methodology used to determine this	3329
cost;	3330

(7) Any other estimated costs that the board anticipates it	3331
will occur and a detailed explanation of the costs and the	3332
rationale used to determine such costs.	3333

A copy of the total estimate of costs under this division	3334
shall be sent to the superintendent of the educational service	3335
center not later than the fifth day of April. The superintendent	3336
shall review the total estimate and shall notify the board of	3337
county commissioners not later than twenty days after receipt of	3338
the estimate of either agreement with the estimate or any specific	3339
objections to the estimates and the reasons for the objections. If	3340
the superintendent agrees with the estimate, it shall become the	3341
final total estimate of cost. Failure of the superintendent to	3342
make objections to the estimate by the twentieth day after receipt	3343
of it shall be deemed to mean that the superintendent is in	3344
agreement with the estimate.	3345

If the superintendent provides specific objections to the	3346
board of county commissioners, the board shall review the	3347
objections and may modify the original estimate and shall send a	3348
revised total estimate to the superintendent within ten days after	3349
the receipt of the superintendent's objections. The	3350
superintendent shall respond to the revised estimate within ten	3351
days after its receipt. If the superintendent agrees with it, it	3352
shall become the final total estimated cost. If the	3353
superintendent fails to respond within the required time, the	3354
superintendent shall be deemed to have agreed with the revised	3355
estimate. If the superintendent disagrees with the revised	3356
estimate, the superintendent shall send specific objections to the	3357
county commissioners.	3358

If a superintendent has sent specific objections to the	3359
revised estimate within the required time, the probate judge of	3360
the county which has the greatest number of resident local school	3361
district pupils under the supervision of the educational service	3362
center shall determine the final estimated cost and certify this	3363
amount to the superintendent and the board of county commissioners	3364
prior to the first day of July.	3365

(D)(1) A board of county commissioners shall be responsible	3366
for the following percentages of the final total estimated cost	3367
established by division (C) of this section:	3368

(a) Seventy-five per cent for fiscal year 2003;

3369

(b) Fifty per cent for fiscal year 2004;

3370

(c) Twenty-five per cent for fiscal year 2005.

3371

In fiscal years 2003, 2004, and 2005, the educational	3372
service center shall be responsible for the remainder of any costs	3373
in excess of the amounts specified in division (D)(1)(a),(b), or	3374
(c) of this section, as applicable, associated with the provision	3375
and equipment of offices for the educational service center and	3376
for provision of heat, light, water, and janitorial services for	3377
such offices, including any unanticipated or unexpected increases	3378
in the costs beyond the final estimated cost amount.	3379

Beginning in fiscal year 2006, no board of county	3380
commissioners shall have any obligation to provide and equip	3381
offices for an educational service center or to provide heat,	3382
light, water, or janitorial services for such offices.	3383

(2) Nothing in this section shall prohibit the board of	3384
county commissioners and the governing board of an educational	3385
service center from entering into a contract for providing and	3386
equipping offices for the use of an educational service center and	3387
for providing heat, light, water, and janitorial services for such	3388
offices. The term of any such contract shall not exceed a period	3389
of four years and may be renewed for additional periods not to	3390
exceed four years. Any such contract shall supersede the	3391
provisions of division (D)(1) of this section.	3392

(3) No contract entered into under division (D)(2) of this	3393
section for any year prior to fiscal year 2006 between an	3394
educational service center formed under section 3311.053 of the	3395
Revised Code and the educational service center required to	3396
provide and equip its office pursuant to division (B) of this	3397
section shall take effect unless the boards of county	3398
commissioners of all other counties required to participate in	3399
the funding for such offices pursuant to division (B) of this	3400
section adopt resolutions approving the contract.	3401

Sec. 3323.09.  (A) As used in this section:

3402

(1) "Home" has the meaning given in section 3313.64 of the	3403
Revised Code;	3404

(2) "Preschool child" means a child who is at least age three	3405
but under age six on the thirtieth day of September of an academic	3406
year.	3407

(B) Each county MR/DD board shall establish special	3408
education programs for all handicapped children who in accordance	3409
with section 3323.04 of the Revised Code have been placed in	3410
special education programs operated by the county board and for	3411
preschool children who are developmentally delayed or at risk of	3412
being developmentally delayed. The board annually shall submit to	3413
the department of education a plan for the provision of these	3414
programs and, if applicable, a request for approval of units under	3415
section 3317.05 of the Revised Code. The superintendent of public	3416
instruction shall review the plan and approve or modify it in	3417
accordance with rules adopted by the state board of education	3418
under section 3301.07 of the Revised Code. The superintendent of	3419
public instruction shall compile the plans submitted by county	3420
boards and shall submit a comprehensive plan to the state board of	3421
education.	3422

A county MR/DD board may combine transportation for children	3423
enrolled in classes funded under section 3317.20 or units approved	3424
under section 3317.05 with transportation for children and adults	3425
enrolled in programs and services offered by the board under	3426
section 5126.12 of the Revised Code.	3427

(C) A county MR/DD board that during the school year	3428
provided special education pursuant to this section for any	3429
mentally handicapped child under twenty-two years of age shall	3430
prepare and submit the following reports and statements:	3431

(1) The board shall prepare a statement for each child who	3432
at the time of receiving such special education was a resident of	3433
a home and was not in the legal or permanent custody of an Ohio	3434
resident or a government agency in this state, and whose parents	3435
are not known to have been residents of this state subsequent to	3436
the child's birth. The statement shall contain the child's name,	3437
the name of his the child's school district of residence, the name	3438
of the county board providing the special education, and the	3439
number of months, including any fraction of a month, it was	3440
provided. Not later than the thirtieth day of June, the board	3441
shall forward a certified copy of such statement to both the	3442
director of mental retardation and developmental disabilities and	3443
to the home.	3444

Within thirty days after its receipt of a statement, the home	3445
shall pay tuition to the county board computed in the manner	3446
prescribed by section 3323.141 of the Revised Code.	3447

(2) The board shall prepare a report for each school	3448
district that is the school district of residence of one or more	3449
of such children for whom statements are not required by division	3450
(C)(1) of this section. The report shall contain the name of the	3451
county board providing special education, the name of each child	3452
receiving special education, the number of months, including	3453
fractions of a month, that he the child received it, and the name	3454
of the child's school district of residence. Not later than the	3455
thirtieth day of June, the board shall forward certified copies of	3456
each report to the school district named in the report, the	3457
superintendent of public instruction, and the director of mental	3458
retardation and developmental disabilities.	3459

Sec. 3323.091.  (A) The department of mental health, the	3460
department of mental retardation and developmental disabilities,	3461
the department of youth services, and the department of	3462
rehabilitation and correction shall establish and maintain special	3463
education programs for handicapped children in institutions under	3464
their jurisdiction according to standards adopted by the state	3465
board of education. The superintendent of each institution	3466
providing special education under this chapter may apply to the	3467
state department of education for unit funding, which shall be	3468
paid in accordance with sections 3317.161 3317.052 and 3317.162	3469
3317.053 of the Revised Code.	3470

(B) On or before the thirtieth day of June of each year, the	3471
superintendent of each institution that during the school year	3472
provided special education pursuant to this section shall prepare	3473
a statement for each handicapped child under twenty-two years of	3474
age who has received special education. The statement shall	3475
contain the child's name and the name of the child's school	3476
district of residence. Within sixty days after receipt of such	3477
statement, the department of education shall perform one of the	3478
following:	3479

(1) For any child except a handicapped preschool child	3480
described in division (B)(2) of this section, pay to the	3481
institution submitting the statement an amount equal to the	3482
tuition calculated under division (A) of section 3317.08 of the	3483
Revised Code for the period covered by the statement, and deduct	3484
the same from the amount of state funds, if any, payable under	3485
sections 3317.022 and 3317.023 of the Revised Code, to the child's	3486
school district of residence or, if the amount of such state funds	3487
is insufficient, require the child's school district of residence	3488
to pay the institution submitting the statement an amount equal to	3489
the amount determined under this division.	3490

(2) For any handicapped preschool child not included in a	3491
unit approved under division (B) of section 3317.05 of the Revised	3492
Code, perform the following:	3493

(a) Pay to the institution submitting the statement an	3494
amount equal to the tuition calculated under division (B) of	3495
section 3317.08 of the Revised Code for the period covered by the	3496
statement, except that in calculating the tuition under that	3497
section the operating expenses of the institution submitting the	3498
statement under this section shall be used instead of the	3499
operating expenses of the school district of residence;	3500

(b) Deduct from the amount of state funds, if any, payable	3501
under sections 3317.022 and 3317.023 of the Revised Code to the	3502
child's school district of residence an amount equal to the amount	3503
paid under division (B)(2)(a) of this section.	3504

Sec. 3333.02.  The Ohio board of regents shall hold its first	3505
meeting at the call of the governor, within three months after all	3506
members have been appointed and qualified. Meetings thereafter	3507
shall be called in such manner and at such times as prescribed by	3508
rules adopted by the board, but the board shall meet at least four	3509
times annually. A majority of the board constitutes a quorum. At	3510
its first meeting, the board shall organize by selecting a	3511
chairman chairperson, a vice-chairman vice-chairperson, and a	3512
secretary, and such other officers as it deems necessary. The	3513
board shall adopt rules for the conduct of its business, and to	3514
provide for the term and election of officers, and shall establish	3515
an office in Columbus. The rules shall permit the formation of a	3516
quorum and the taking of votes at meetings conducted by	3517
interactive video teleconference if provisions are made for public	3518
attendance at any location involved in such a teleconference.	3519

A record shall be kept of board proceedings, which shall be	3520
open for public inspection. The board shall adopt a seal to be	3521
affixed to official documents. Each member of the board, before	3522
entering on his official duties and after qualifying for office,	3523
shall take and subscribe to an oath of office, to uphold the	3524
constitution and laws of the United States and this state, and to	3525
perform the duties of his office honestly, faithfully, and	3526
impartially.	3527

Sec. 3333.03.  (A) The Ohio board of regents shall appoint a	3528
chancellor to serve at its pleasure and shall prescribe his the	3529
chancellor's duties. The board shall fix the compensation for the	3530
chancellor and for all other professional, administrative, and	3531
clerical employees necessary to assist the board and the	3532
chancellor in the performance of their duties.	3533

(B) The chancellor is the administrative officer of the	3534
board, and is responsible for appointing and fixing the	3535
compensation of all professional, administrative, and clerical	3536
employees and staff members, subject to board approval, who	3537
necessary to assist the board and the chancellor in the	3538
performance of their duties. All employees and staff shall serve	3539
under his the chancellor's direction and control. The chancellor	3540
shall be a person qualified by training and experience to	3541
understand the problems and needs of the state in the field of	3542
higher education and to devise programs, plans, and methods of	3543
solving the problems and meeting the needs.	3544

(C) Neither the chancellor nor any staff member or employee	3545
of the board shall be a trustee, officer, or employee of any	3546
public or private college or university while serving on the	3547
board.	3548

Sec. 3333.12.  (A) As used in this section:

3549

(1) "Eligible student" means an undergraduate student who is:

3550

(a) An Ohio resident;

3551

(b) Enrolled in either of the following:

3552

(i) An accredited institution of higher education in this	3553
state that meets the requirements of Title VI of the Civil Rights	3554
Act of 1964 and is state-assisted, is nonprofit and has a	3555
certificate of authorization from the Ohio board of regents	3556
pursuant to Chapter 1713. of the Revised Code, or has a	3557
certificate of registration from the state board of proprietary	3558
school registration and program authorization to award an	3559
associate or bachelor's degree. Students who attend an	3560
institution that holds a certificate of registration shall be	3561
enrolled in a program leading to an associate or bachelor's degree	3562
for which associate or bachelor's degree program the institution	3563
has program authorization issued under section 3332.05 of the	3564
Revised Code.	3565

(ii) A technical education program of at least two years	3566
duration sponsored by a private institution of higher education in	3567
this state that meets the requirements of Title VI of the Civil	3568
Rights Act of 1964.	3569

(c) Enrolled as a full-time student or enrolled as a less	3570
than full-time student for the term expected to be the student's	3571
final term of enrollment and is enrolled for the number of credit	3572
hours necessary to complete the requirements of the program in	3573
which the student is enrolled.	3574

(2) "Gross income" includes all taxable and nontaxable income	3575
of the parents, the student, and the student's spouse, except	3576
income derived from an Ohio academic scholarship, income earned by	3577
the student between the last day of the spring term and the first	3578
day of the fall term, and other income exclusions designated by	3579
the board. Gross income may be verified to the board by the	3580
institution in which the student is enrolled using the federal	3581
financial aid eligibility verification process or by other means	3582
satisfactory to the board.	3583

(3) "Resident," "full-time student," "dependent,"	3584
"financially independent," and "accredited" shall be defined by	3585
rules adopted by the board.	3586

(B) The Ohio board of regents shall establish and administer	3587
an instructional grant program and may adopt rules to carry out	3588
this section. The general assembly shall support the	3589
instructional grant program by such sums and in such manner as it	3590
may provide, but the board may also receive funds from other	3591
sources to support the program. If the amounts available for	3592
support of the program are inadequate to provide grants to all	3593
eligible students, preference in the payment of grants shall be	3594
given in terms of income, beginning with the lowest income	3595
category of gross income and proceeding upward by category to the	3596
highest gross income category.	3597

An instructional grant shall be paid to an eligible student	3598
through the institution in which the student is enrolled, except	3599
that no instructional grant shall be paid to any person serving a	3600
term of imprisonment. Applications for such grants shall be made	3601
as prescribed by the board, and such applications may be made in	3602
conjunction with and upon the basis of information provided in	3603
conjunction with student assistance programs funded by agencies of	3604
the United States government or from financial resources of the	3605
institution of higher education. The institution shall certify	3606
that the student applicant meets the requirements set forth in	3607
divisions (A)(1)(b) and (c) of this section. Instructional grants	3608
shall be provided to an eligible student only as long as the	3609
student is making appropriate progress toward a nursing diploma or	3610
an associate or bachelor's degree. No student shall be eligible	3611
to receive a grant for more than ten semesters, fifteen quarters,	3612
or the equivalent of five academic years. A grant made to an	3613
eligible student on the basis of less than full-time enrollment	3614
shall be based on the number of credit hours for which the student	3615
is enrolled and shall be computed in accordance with a formula	3616
adopted by the board. No student shall receive more than one	3617
grant on the basis of less than full-time enrollment.	3618

An instructional grant shall not exceed the total	3619
instructional and general charges of the institution.	3620

(C) The tables in this division prescribe the maximum grant	3621
amounts covering two semesters, three quarters, or a comparable	3622
portion of one academic year. Grant amounts for additional terms	3623
in the same academic year shall be determined under division (D)	3624
of this section.	3625

For a full-time student who is a dependent and enrolled in a	3626
nonprofit educational institution that is not a state-assisted	3627
institution and that has a certificate of authorization issued	3628
pursuant to Chapter 1713. of the Revised Code, the amount of the	3629
instructional grant for two semesters, three quarters, or a	3630
comparable portion of the academic year shall be determined in	3631
accordance with the following table:	3632

Table of Grants

3633

Private Institution

3655

Table of Grants

3656

For a full-time student who is financially independent and	3677
enrolled in a nonprofit educational institution that is not a	3678
state-assisted institution and that has a certificate of	3679
authorization issued pursuant to Chapter 1713. of the Revised	3680
Code, the amount of the instructional grant for two semesters,	3681
three quarters, or a comparable portion of the academic year shall	3682
be determined in accordance with the following table:	3683

Table of Grants

3684

Private Institution

3707

Table of Grants

3708

For a full-time student who is a dependent and enrolled in an	3730
educational institution that holds a certificate of registration	3731
from the state board of proprietary school registration, the	3732
amount of the instructional grant for two semesters, three	3733
quarters, or a comparable portion of the academic year shall be	3734
determined in accordance with the following table:	3735

Table of Grants

3736

Proprietary Institution

3758

Table of Grants

3759

For a full-time student who is financially independent and	3780
enrolled in an educational institution that holds a certificate of	3781
registration from the state board of proprietary school	3782
registration, the amount of the instructional grant for two	3783
semesters, three quarters, or a comparable portion of the academic	3784
year shall be determined in accordance with the following table:	3785

Table of Grants

3786

Proprietary Institution

3809

Table of Grants

3810

For a full-time student who is a dependent and enrolled in a	3832
state-assisted educational institution, the amount of the	3833
instructional grant for two semesters, three quarters, or a	3834
comparable portion of the academic year shall be determined in	3835
accordance with the following table:	3836

Table of Grants

3839

Public Institution

3859

Table of Grants

3860

For a full-time student who is financially independent and	3881
enrolled in a state-assisted educational institution, the amount	3882
of the instructional grant for two semesters, three quarters, or a	3883
comparable portion of the academic year shall be determined in	3884
accordance with the following table:	3885

Table of Grants

3886

Public Institution

3909

Table of Grants

3910

(D) For a full-time student enrolled in an eligible	3932
institution for a semester or quarter in addition to the portion	3933
of the academic year covered by a grant determined under division	3934
(C) of this section, the maximum grant amount shall be a	3935
percentage of the maximum prescribed in the applicable table of	3936
that division. The maximum grant for a fourth quarter shall be	3937
one-third of the maximum amount prescribed under that division.	3938
The maximum grant for a third semester shall be one-half of the	3939
maximum amount prescribed under that division.	3940

(E) No grant shall be made to any student in a course of	3941
study in theology, religion, or other field of preparation for a	3942
religious profession unless such course of study leads to an	3943
accredited bachelor of arts, bachelor of science, associate of	3944
arts, or associate of science degree.	3945

(F)(1) Except as provided in division (F)(2) of this	3946
section, no grant shall be made to any student for enrollment	3947
during a fiscal year in an institution with a cohort default rate	3948
determined by the United States secretary of education pursuant to	3949
the "Higher Education Amendments of 1986," 100 Stat. 1278, 1408,	3950
20 U.S.C.A. 1085, as amended, as of the fifteenth day of June	3951
preceding the fiscal year, equal to or greater than thirty per	3952
cent for each of the preceding two fiscal years.	3953

(2) Division (F)(1) of this section does not apply to the	3954
following:	3955

(a) Any student enrolled in an institution that under the	3956
federal law appeals its loss of eligibility for federal financial	3957
aid and the United States secretary of education determines its	3958
cohort default rate after recalculation is lower than the rate	3959
specified in division (F)(1) of this section or the secretary	3960
determines due to mitigating circumstances the institution may	3961
continue to participate in federal financial aid programs. The	3962
board shall adopt rules requiring institutions to provide	3963
information regarding an appeal to the board.	3964

(b) Any student who has previously received a grant under	3965
this section who meets all other requirements of this section.	3966

(3) The board shall adopt rules for the notification of all	3967
institutions whose students will be ineligible to participate in	3968
the grant program pursuant to division (F)(1) of this section.	3969

(4) A student's attendance at an institution whose students	3970
lose eligibility for grants under division (F)(1) of this section	3971
shall not affect that student's eligibility to receive a grant	3972
when enrolled in another institution.	3973

(G) Institutions of higher education that enroll students	3974
receiving instructional grants under this section shall report to	3975
the board all students who have received instructional grants but	3976
are no longer eligible for all or part of such grants and shall	3977
refund any moneys due the state within thirty days after the	3978
beginning of the quarter or term immediately following the quarter	3979
or term in which the student was no longer eligible to receive all	3980
or part of the student's grant. There shall be an interest charge	3981
of one per cent per month on all moneys due and payable after such	3982
thirty-day period. The board shall immediately notify the office	3983
of budget and management and the legislative budget office of the	3984
legislative service commission of all refunds so received.	3985

Sec. 3333.13.  (A) Money appropriated to state supported and	3986
state assisted institutions of higher education and to the Ohio	3987
board of regents for the purposes of this division shall be paid	3988
at the times and in the amounts necessary to meet all payments	3989
required to be made by such institutions and by the board to the	3990
Ohio public facilities commission or treasurer of state pursuant	3991
to leases or agreements made by them under division (B) of section	3992
154.21 of the Revised Code, as certified under division (C) of	3993
this section, including supplements to such certifications.	3994

(B) Each such institution of higher education and the The	3995
board shall include in its estimate of proposed expenses submitted	3996
pursuant to section 126.02 of the Revised Code the estimated	3997
amounts of all such payments to be made by it. The board shall	3998
include the estimated amounts of all such payments to be made by	3999
each such institution and of such payments to be made by it in	4000
recommendations for appropriation required by division (J) of	4001
section 3333.04 of the Revised Code. The director of budget and	4002
management shall include in the state budget estimates provided	4003
for in section 126.02 of the Revised Code the estimated amount of	4004
all such payments to be made during the next biennium, and this	4005
amount shall be included in the state budget to be submitted by	4006
the governor to the general assembly pursuant to section 107.03 of	4007
the Revised Code.	4008

(C) On the first day of July of each year, or as soon	4009
thereafter as is practicable, the chancellor or a vice-chancellor	4010
of the board shall certify to the director the payments contracted	4011
to be made, during the period of the then current appropriations	4012
made for the purposes of division (A) of this section, to the	4013
commission or treasurer of state by each state supported and state	4014
assisted institution of higher education and by the board pursuant	4015
to leases and agreements made under division (B) of section 154.21	4016
of the Revised Code. The certification shall state the amounts	4017
and dates of payment required therefor as to each such institution	4018
of higher education and the board, and the amounts to be credited	4019
pursuant to such leases and agreements to the higher education	4020
bond service trust fund and other special funds established	4021
pursuant to section 151.04 or Chapter 154. of the Revised Code. If	4022
the director finds such certification to be correct, the director	4023
shall promptly add the director's certification thereto and submit	4024
it to the treasurer of state. Such annual certification shall be	4025
supplemented in similar manner upon the execution of each new	4026
lease or agreement, any supplement to an existing lease or	4027
agreement, or any amendment thereof, affecting the amounts of	4028
those payments.	4029

Sec. 3770.02.  (A) Subject to the advice and consent of the	4030
senate, the governor shall appoint a director of the state lottery	4031
commission who shall serve at the pleasure of the governor. The	4032
director shall devote full time to the duties of the office and	4033
shall hold no other office or employment. The director shall meet	4034
all requirements for appointment as a member of the commission and	4035
shall by experience and training possess such management skills as	4036
that would equip the director to administer an enterprise of the	4037
nature of a state lottery. The director shall receive an annual	4038
salary in accordance with pay range 48 of section 124.152 of the	4039
Revised Code.	4040

(B)(1) The director shall attend all meetings of the	4041
commission and shall act as its secretary. The director shall	4042
keep a record of all commission proceedings and shall keep such	4043
the commission's records, files, and documents at the commission's	4044
principal office. All records of the commission's meetings shall	4045
be available for inspection by any member of the public, upon a	4046
showing of good cause and prior notification to the director.	4047

(2) The director shall be the commission's executive officer	4048
and shall be responsible for keeping all commission records and	4049
supervising and administering the state lottery in accordance with	4050
this chapter, and carrying out all commission rules adopted under	4051
section 3770.03 of the Revised Code.	4052

(C)(1) The director shall appoint an assistant director and	4053
deputy directors of marketing, operations, sales, finance, public	4054
relations, security, and administration, and as many regional	4055
managers as are required. The director may also appoint such	4056
professional, technical, and clerical assistants as are necessary.	4057
All such officers and employees shall be appointed and compensated	4058
pursuant to Chapter 124. of the Revised Code. Regional and	4059
assistant regional managers, sales representatives, and any	4060
lottery executive account representatives shall remain in the	4061
unclassified service.	4062

(2) The director, in consultation with the director of	4063
administrative services, may establish standards of proficiency	4064
and productivity for commission field representatives.	4065

(D) The director shall request the bureau of criminal	4066
identification and investigation, the department of public safety,	4067
or any other state, local, or federal agency, to supply the	4068
director with the criminal records of any job applicant and may	4069
periodically request such the criminal records of commission	4070
employees. At or prior to the time of making such a request, the	4071
director shall require a job applicant or commission employee to	4072
obtain fingerprint cards prescribed by the superintendent of the	4073
bureau of criminal identification and investigation at a qualified	4074
law enforcement agency, and the director shall cause these	4075
fingerprint cards to be forwarded to the bureau of criminal	4076
identification and investigation and the federal bureau of	4077
investigation. The commission shall assume the cost of obtaining	4078
the fingerprint cards and shall pay to each agency supplying such	4079
criminal records for each investigation under this division a	4080
reasonable fee, as determined by the agency.	4081

(E) The director shall license lottery sales agents pursuant	4082
to section 3770.05 of the Revised Code, and, when it is considered	4083
necessary, may revoke or suspend the license of any lottery sales	4084
agent when such action is considered necessary.	4085

(F) The director shall confer at least once each month with	4086
the commission at which time the director shall advise it of	4087
regarding the operation and administration of the lottery. The	4088
director shall make available at the request of the commission all	4089
documents, files, and other records pertaining to the operation	4090
and administration of the lottery. The director shall prepare and	4091
make available to the commission each month a complete and	4092
accurate accounting of lottery revenues, prize money disbursements	4093
and the cost of goods and services awarded as prizes, operating	4094
expenses, and all other relevant financial information, including	4095
an accounting of all transfers made from any lottery funds in the	4096
custody of the treasurer of state to benefit education.	4097

(G) The director may enter into contracts for the operation	4098
or promotion of the lottery pursuant to Chapter 125. of the	4099
Revised Code. The director may enter into agreements to assist	4100
organizations that deal with problem gambling.	4101

(H)(1) Pursuant to rules adopted by the commission under	4102
section 3770.03 of the Revised Code, the director shall require	4103
any lottery sales agents to either mail directly to the state	4104
lottery commission or to deposit to the credit of the state	4105
lottery fund, in banking institutions designated by the treasurer	4106
of state, net proceeds due the lottery commission as determined by	4107
the director, and to file with the director or the director's	4108
designee reports of their receipts and transactions in the sale of	4109
lottery tickets in such the form as required by the director.	4110

(2) Pursuant to rules adopted by the commission under	4111
Chapter 119. of the Revised Code, the director may impose	4112
penalties for the failure of a sales agent to transfer funds to	4113
the commission in a timely manner. Penalties may include monetary	4114
penalties, immediate suspension or revocation of a license, or any	4115
other penalty the commission adopts by rule.	4116

(I) The director may arrange for any person, or any banking	4117
institution, to perform such functions and services in connection	4118
with the operation of the lottery as the director may consider	4119
necessary to carry out this chapter.	4120

(J)(1) As used in this chapter, "statewide joint lottery	4121
game" means a lottery game that the commission sells solely within	4122
this state under an agreement with other lottery jurisdictions to	4123
sell the same lottery game solely within their statewide or	4124
jurisdictional boundaries.	4125

(2) The director may enter into an agreement with other	4126
lottery jurisdictions to conduct statewide joint lottery games	4127
and, if the governor signs the agreement personally or by means of	4128
an authenticating officer pursuant to section 107.15 of the	4129
Revised Code, may conduct statewide joint lottery games under the	4130
agreement.	4131

(3) The entire net proceeds from any statewide joint lottery	4132
games shall be used to fund elementary, secondary, vocational, and	4133
special education programs in this state.	4134

(4) The commission shall conduct any statewide joint lottery	4135
games in accordance with rules it adopts under division (B)(5) of	4136
section 3770.03 of the Revised Code.	4137

Sec. 3770.03.  (A) The state lottery commission shall	4138
promulgate rules under which a statewide lottery may be conducted.	4139
The rules shall be promulgated pursuant to Chapter 119. of the	4140
Revised Code, except that rules pertaining to instant game rules	4141
shall be promulgated pursuant to section 111.15 of the Revised	4142
Code but are not subject to division (D) of that section. Subjects	4143
covered in such these rules shall include, but need not be limited	4144
to, the following:	4145

(1) The type of lottery to be conducted;

4146

(2) The prices of tickets in the lottery;

4147

(3) The number, nature, and value of prize awards, the	4148
manner and frequency of prize drawings, and the manner in which	4149
prizes shall be awarded to holders of winning tickets.	4150

(B) The commission shall promulgate further rules, in	4151
addition to those described in division (A) of this section,	4152
pursuant to Chapter 119. of the Revised Code under which a	4153
statewide lottery and statewide joint lottery games may be	4154
conducted. Subjects covered in these rules shall include, but not	4155
be limited to, the following:	4156

(1) The locations at which lottery tickets may be sold and	4157
the manner in which they are to be sold. Such These rules may	4158
authorize the sale of lottery tickets by commission personnel or	4159
other licensed individuals from traveling show wagons at the state	4160
fair, and at any other expositions the director of the commission	4161
considers acceptable. Such These rules shall prohibit commission	4162
personnel or other licensed individuals from soliciting from an	4163
exposition the right to sell lottery tickets at that exposition,	4164
but shall allow commission personnel or other licensed individuals	4165
to sell lottery tickets at an exposition if the exposition	4166
requests commission personnel or licensed individuals to do so.	4167
Such These rules may also address the accessibility of sales agent	4168
locations to commission products in accordance with the "Americans	4169
with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C.A. 12101	4170
et seq.	4171

(2) The manner in which lottery sales revenues are to be	4172
collected, including authorization for the director to impose	4173
penalties for failure by lottery sales agents to transfer revenues	4174
to the commission in a timely manner;	4175

(3) The amount of compensation to be paid licensed lottery	4176
sales agents;	4177

(4) The substantive criteria for the licensing of lottery	4178
sales agents consistent with section 3770.05 of the Revised Code,	4179
and procedures for revoking or suspending such their licenses	4180
consistent with Chapter 119. of the Revised Code. If	4181
circumstances, such as the nonpayment of funds owed by a lottery	4182
sales agent, or other circumstances related to the public safety,	4183
convenience, or trust, require immediate action, the director may	4184
suspend a license without affording an opportunity for a prior	4185
hearing under section 119.07 of the Revised Code.	4186

(5) Special game rules to implement any agreements the	4187
director enters into with other lottery jurisdictions under	4188
division (J) of section 3770.02 of the Revised Code to conduct	4189
statewide joint lottery games. The rules shall require that the	4190
entire net proceeds of those games that remain, after associated	4191
operating expenses, prize disbursements, lottery sales agent	4192
bonuses, commissions, and reimbursements, and any other expenses	4193
necessary to comply with the agreements or the rules are deducted	4194
from the gross proceeds of those games, be transferred to the	4195
lottery profits education fund under division (B) of section	4196
3770.06 of the Revised Code.	4197

(C)(1) The state lottery commission shall meet with the	4198
director of the commission at least once each month and shall	4199
convene other meetings at the request of the chairman chairperson	4200
or any five of the members. No action taken by the commission	4201
shall be binding unless at least five of the members present vote	4202
in favor thereof of the action. A written record shall be made of	4203
the proceedings of each meeting and shall be transmitted forthwith	4204
to the governor, the president of the senate, the senate minority	4205
leader, the speaker of the house of representatives, and the house	4206
minority leader.	4207

(2) The director shall present to the commission a report	4208
each month, showing the total revenues, prize disbursements, and	4209
operating expenses of the state lottery for the preceding month.	4210
As soon as practicable after the end of each fiscal year, the	4211
commission shall prepare and transmit to the governor and the	4212
general assembly a report of lottery revenues, prize	4213
disbursements, and operating expenses for the preceding fiscal	4214
year and any recommendations for legislation considered necessary	4215
by the commission.	4216

Sec. 3770.06.  (A) There is hereby created the state lottery	4217
gross revenue fund, which shall be in the custody of the treasurer	4218
of state but shall not be part of the state treasury. All gross	4219
revenues received from sales of lottery tickets, fines, fees, and	4220
related proceeds in connection with the statewide lottery and all	4221
gross proceeds from statewide joint lottery games shall be	4222
deposited into the fund. The treasurer of state shall invest any	4223
portion of the fund not needed for immediate use in the same	4224
manner as, and subject to all provisions of law with respect to	4225
the investment of, state funds. The treasurer of state shall	4226
disburse money from the fund on order of the director of the state	4227
lottery commission or the director's designee. All	4228

Except for gross proceeds from statewide joint lottery games,	4229
all revenues of the state lottery gross revenue fund that are not	4230
paid to holders of winning lottery tickets, that are not required	4231
to meet short-term prize liabilities, that are not paid to lottery	4232
sales agents in the form of agent bonuses, commissions, or	4233
reimbursements, and that are not paid to financial institutions to	4234
reimburse such those institutions for sales agent nonsufficient	4235
funds shall be transferred to the state lottery fund, which is	4236
hereby created in the state treasury. In addition, all revenues of	4237
the state lottery gross revenue fund that represent the gross	4238
proceeds from the statewide joint lottery games and that are not	4239
paid to holders of winning lottery tickets, that are not required	4240
to meet short-term prize liabilities, that are not paid to lottery	4241
sales agents in the form of bonuses, commissions, or	4242
reimbursements, and that are not necessary to cover operating	4243
expenses associated with those games or to otherwise comply with	4244
the agreements the director enters into under division (J) of	4245
section 3770.02 of the Revised Code or the rules the commission	4246
adopts under division (B)(5) of section 3770.03 of the Revised	4247
Code shall be transferred to the state lottery fund. All	4248
investment earnings of the fund shall be credited to the fund.	4249
Moneys shall be disbursed from the state lottery fund pursuant to	4250
vouchers approved by the director of the state lottery commission.	4251
Total disbursements for monetary prize awards to holders of	4252
winning lottery tickets and purchases of goods and services	4253
awarded as prizes to holders of winning lottery tickets in	4254
connection with the statewide lottery shall be of an amount equal	4255
to at least fifty per cent of the total revenue accruing from the	4256
sale of lottery tickets.	4257

(B) Pursuant to Section 6 of Article XV, Ohio Constitution,	4258
there is hereby established in the state treasury the lottery	4259
profits education fund. Whenever, in the judgment of the director	4260
of budget and management, the amount to the credit of the state	4261
lottery fund that does not represent proceeds from statewide joint	4262
lottery games is in excess of that needed to meet the maturing	4263
obligations of the commission and as working capital for its	4264
further operations, the director shall transfer the excess to the	4265
lottery profits education fund, provided that the amount to be	4266
transferred into the lottery profits education fund shall equal no	4267
less than thirty per cent of the total revenue accruing from the	4268
sale of lottery tickets. Investment earnings of the lottery	4269
profits education fund shall be credited to the fund. In addition,	4270
whenever, in the judgment of the director of budget and	4271
management, the amount to the credit of the state lottery fund	4272
that represents proceeds from statewide joint lottery games equals	4273
the entire net proceeds of those games as described in division	4274
(B)(5) of section 3770.03 of the Revised Code and the rules	4275
adopted under that division, the director shall transfer those	4276
proceeds to the lottery profits education fund. There shall also	4277
be credited to the fund any repayments of moneys loaned from the	4278
educational excellence investment fund. The Investment earnings of	4279
the lottery profits education fund shall be credited to the fund.	4280

The lottery profits education fund shall be used solely for	4281
the support of elementary, secondary, vocational, and special	4282
education programs as determined in appropriations made by the	4283
general assembly, or as provided in applicable bond proceedings	4284
for the payment of debt service on obligations issued to pay costs	4285
of capital facilities, including those for a system of common	4286
schools throughout the state pursuant to section 2n of Article	4287
VIII, Ohio Constitution. When determining the availability of	4288
money in the lottery profits education fund, the director of	4289
budget and management may consider all balances and estimated	4290
revenues of the fund.	4291

From the amounts that the director of budget and management	4292
transfers in any fiscal year from the state lottery fund to the	4293
lottery profits education fund, the director shall transfer the	4294
initial ten million dollars of such those amounts from the lottery	4295
profits education fund to the school building program bond service	4296
fund created in division (Q) of section 3318.26 of the Revised	4297
Code to be pledged for the purpose of paying bond service charges	4298
as defined in division (C) of section 3318.21 of the Revised Code	4299
on one or more issuances of obligations, which obligations are	4300
issued to provide moneys for the school building program	4301
assistance fund created in section 3318.25 of the Revised Code.	4302

(C) There is hereby established in the state treasury the	4303
deferred prizes trust fund. With the approval of the director of	4304
budget and management, an amount sufficient to fund annuity prizes	4305
shall be transferred from the state lottery fund and credited to	4306
the trust fund. The treasurer of state shall credit all earnings	4307
arising from investments purchased under this division to the	4308
fund. Within sixty days after the end of each fiscal year, the	4309
director of budget and management shall certify the amount of	4310
investment earnings necessary to have been credited to the trust	4311
fund during the fiscal year just ending to provide for continued	4312
funding of deferred prizes. Any earnings credited in excess of	4313
this certified amount shall be transferred to the lottery profits	4314
education fund. To provide all or a part of the amounts necessary	4315
to fund deferred prizes awarded by the commission, the treasurer	4316
of state, in consultation with the commission, may invest moneys	4317
contained in the deferred prizes trust fund in obligations of the	4318
type permitted for the investment of state funds but whose	4319
maturities are thirty years or less. Investments of the deferred	4320
prizes trust fund are not subject to the provisions of division	4321
(A)(10) of section 135.143 of the Revised Code limiting to five	4322
per cent the amount of the state's total average portfolio that	4323
may be invested in debt interests and limiting to one-half of one	4324
per cent the amount that may be invested in debt interests of a	4325
single issuer.	4326

All purchases made under this division shall be effected on a	4327
delivery versus payment method and shall be in the custody of the	4328
treasurer of state.	4329

The treasurer of state may retain an investment advisor, if	4330
necessary. The commission shall pay any costs incurred by the	4331
treasurer of state in retaining an investment advisor.	4332

(D) The auditor of state shall conduct annual audits of all	4333
funds and such any other audits as the auditor of state or the	4334
general assembly considers necessary. The auditor of state may	4335
examine all records, files, and other documents of the commission,	4336
and such records of lottery sales agents as that pertain to their	4337
activities as agents, for purposes of conducting authorized	4338
audits.	4339

The state lottery commission shall establish an internal	4340
audit program before the beginning of each fiscal year, subject to	4341
the approval of the auditor of state. At the end of each fiscal	4342
year, the commission shall prepare and submit an annual report to	4343
the auditor of state for the auditor of state's review and	4344
approval, specifying the internal audit work completed by the end	4345
of that fiscal year and reporting on compliance with the annual	4346
internal audit program. The form and content of the report shall	4347
be prescribed by the auditor of state under division (C) of	4348
section 117.20 of the Revised Code.	4349

(E) Whenever, in the judgment of the director of budget and	4350
management, an amount of net state lottery proceeds is necessary	4351
to be applied to the payment of debt service on obligations, all	4352
as defined in sections 151.01 and 151.03 of the Revised Code, the	4353
director shall transfer that amount directly from the state	4354
lottery fund or from the lottery profits education fund to the	4355
bond service fund defined in those sections. The provisions of	4356
this division (E) of this section are subject to any prior pledges	4357
or obligation of those amounts to the payment of bond service	4358
charges as defined in division (C) of section 3318.21 of the	4359
Revised Code, as referred to in division (B) of this section.	4360

Sec. 5126.05.  (A) Subject to the rules established by the	4361
director of mental retardation and developmental disabilities	4362
pursuant to Chapter 119. of the Revised Code for programs and	4363
services offered pursuant to this chapter, and subject to the	4364
rules established by the state board of education pursuant to	4365
Chapter 119. of the Revised Code for programs and services offered	4366
pursuant to Chapter 3323. of the Revised Code, the county board of	4367
mental retardation and developmental disabilities shall:	4368

(1) Administer and operate facilities, programs, and	4369
services as provided by this chapter and Chapter 3323. of the	4370
Revised Code and establish policies for their administration and	4371
operation;	4372

(2) Coordinate, monitor, and evaluate existing services and	4373
facilities available to individuals with mental retardation and	4374
developmental disabilities;	4375

(3) Provide early childhood services, supportive home	4376
services, and adult services, according to the plan and priorities	4377
developed under section 5126.04 of the Revised Code;	4378

(4) Provide or contract for special education services	4379
pursuant to Chapters 3317. and 3323. of the Revised Code and	4380
ensure that related services, as defined in section 3323.01 of the	4381
Revised Code, are available according to the plan and priorities	4382
developed under section 5126.04 of the Revised Code;	4383

(5) Adopt a budget, authorize expenditures for the purposes	4384
specified in this chapter and do so in accordance with section	4385
319.16 of the Revised Code, approve attendance of board members	4386
and employees at professional meetings and approve expenditures	4387
for attendance, and exercise such powers and duties as are	4388
prescribed by the director;	4389

(6) Submit annual reports of its work and expenditures,	4390
pursuant to sections 3323.09 and 5126.12 of the Revised Code, to	4391
the director, the superintendent of public instruction, and the	4392
board of county commissioners at the close of the fiscal year and	4393
at such other times as may reasonably be requested;	4394

(7) Authorize all positions of employment, establish	4395
compensation, including but not limited to salary schedules and	4396
fringe benefits for all board employees, approve contracts of	4397
employment for management employees that are for a term of more	4398
than one year, employ legal counsel under section 309.10 of the	4399
Revised Code, and contract for employee benefits;	4400

(8) Provide case management services, as defined in rules	4401
adopted by the director of mental retardation and developmental	4402
disabilities, in accordance with section 5126.15 of the Revised	4403
Code;	4404

(9) Certify respite care homes pursuant to rules adopted	4405
under section 5123.171 of the Revised Code by the director of	4406
mental retardation and developmental disabilities.	4407

(B) To the extent that rules adopted under this section	4408
apply to the identification and placement of handicapped children	4409
under Chapter 3323. of the Revised Code, they shall be consistent	4410
with the standards and procedures established under sections	4411
3323.03 to 3323.05 of the Revised Code.	4412

(C) Any county board may enter into contracts with other	4413
such boards and with public or private, nonprofit, or	4414
profit-making agencies or organizations of the same or another	4415
county, to provide the facilities, programs, and services	4416
authorized or required, upon such terms as may be agreeable, and	4417
in accordance with this chapter and Chapter 3323. of the Revised	4418
Code and rules adopted thereunder and in accordance with sections	4419
307.86 and 5126.071 of the Revised Code.	4420

(D) A county board may combine transportation for children	4421
and adults enrolled in programs and services offered under section	4422
5126.12 with transportation for children enrolled in classes	4423
funded under section 3317.20 or units approved under section	4424
3317.05 of the Revised Code.	4425

(E) A county board may purchase all necessary insurance	4426
policies, may purchase equipment and supplies through the	4427
department of administrative services or from other sources, and	4428
may enter into agreements with public agencies or nonprofit	4429
organizations for cooperative purchasing arrangements.	4430

(F) A county board may receive by gift, grant, devise, or	4431
bequest any moneys, lands, or property for the benefit of the	4432
purposes for which the board is established and hold, apply, and	4433
dispose of the moneys, lands, and property according to the terms	4434
of the gift, grant, devise, or bequest. All money received by	4435
gift, grant, bequest, or disposition of lands or property received	4436
by gift, grant, devise, or bequest shall be deposited in the	4437
county treasury to the credit of such board and shall be available	4438
for use by the board for purposes determined or stated by the	4439
donor or grantor, but may not be used for personal expenses of the	4440
board members. Any interest or earnings accruing from such gift,	4441
grant, devise, or bequest shall be treated in the same manner and	4442
subject to the same provisions as such gift, grant, devise, or	4443
bequest.	4444

(G) The board of county commissioners shall levy taxes and	4445
make appropriations sufficient to enable the county board of	4446
mental retardation and developmental disabilities to perform its	4447
functions and duties, and may utilize any available local, state,	4448
and federal funds for such purpose.	4449

Sec. 5126.12.  (A) As used in this section:

4450

(1) "Approved school age unit class" means a class or unit	4451
operated by a county board of mental retardation and developmental	4452
disabilities and approved funded by the state board department of	4453
education under division (D) of section 3317.05 3317.20 of the	4454
Revised Code.	4455

(2) "Approved preschool unit" means a class or unit operated	4456
by a county board of mental retardation and developmental	4457
disabilities and approved by the state board of education under	4458
division (B) of section 3317.05 of the Revised Code.	4459

(3) "Active treatment" means a continuous treatment program,	4460
which includes aggressive, consistent implementation of a program	4461
of specialized and generic training, treatment, health services,	4462
and related services, that is directed toward the acquisition of	4463
behaviors necessary for an individual with mental retardation or	4464
other developmental disability to function with as much	4465
self-determination and independence as possible and toward the	4466
prevention of deceleration, regression, or loss of current optimal	4467
functional status.	4468

(4) "Eligible for active treatment" means that an individual	4469
with mental retardation or other developmental disability resides	4470
in an intermediate care facility for the mentally retarded	4471
certified under Title XIX of the "Social Security Act," 49 Stat.	4472
620 (1935), 42 U.S.C. 301, as amended; resides in a state	4473
institution operated by the department of mental retardation and	4474
developmental disabilities; or is enrolled in a home and	4475
community-based services waiver program administered by the	4476
department of mental retardation and developmental disabilities as	4477
part of the medical assistance program established under section	4478
5111.01 of the Revised Code.	4479

(5) "Community alternative funding system" means the program	4480
under which habilitation services are reimbursed under the medical	4481
assistance program pursuant to section 5111.041 of the Revised	4482
Code and rules adopted under that section.	4483

(6) "Community employment program" means community employment	4484
services provided outside of a sheltered workshop setting under	4485
which the person earns competitive wages for the performance of	4486
work.	4487

(7) "Traditional adult services" means vocational and	4488
nonvocational activities conducted within a sheltered workshop or	4489
adult activity center or supportive home services.	4490

(B) Each county board of mental retardation and	4491
developmental disabilities shall certify to the director of mental	4492
retardation and developmental disabilities all of the following:	4493

(1) On or before the fifteenth day of October, the average	4494
daily membership for the first full week of programs and services	4495
during October receiving:	4496

(a) Early childhood services provided pursuant to section	4497
5126.05 of the Revised Code for children who are less than three	4498
years of age on the thirtieth day of September of the academic	4499
year;	4500

(b) Special education for handicapped children in approved	4501
school age units classes;	4502

(c) Adult services for persons sixteen years of age and	4503
older operated pursuant to section 5126.05 and division (B) of	4504
section 5126.051 of the Revised Code. Separate counts shall be	4505
made for the following:	4506

(i) Persons enrolled in traditional adult services who are	4507
eligible for but not enrolled in active treatment under the	4508
community alternative funding system;	4509

(ii) Persons enrolled in traditional adult services who are	4510
eligible for and enrolled in active treatment under the community	4511
alternative funding system;	4512

(iii) Persons enrolled in traditional adult services but who	4513
are not eligible for active treatment under the community	4514
alternative funding system;	4515

(iv) Persons participating in community employment services.	4516
To be counted as participating in community employment services, a	4517
person must have spent an average of no less than ten hours per	4518
week in that employment during the preceding six months.	4519

(d) Other programs in the county for individuals with mental	4520
retardation and developmental disabilities that have been approved	4521
for payment of subsidy by the department of mental retardation and	4522
developmental disabilities.	4523

The membership in each such program and service in the county	4524
shall be reported on forms prescribed by the department of mental	4525
retardation and developmental disabilities.	4526

The department of mental retardation and developmental	4527
disabilities shall adopt rules defining full-time equivalent	4528
enrollees and for determining the average daily membership	4529
therefrom, except that certification of average daily membership	4530
in approved school age units classes shall be in accordance with	4531
rules adopted by the state board of education. The average daily	4532
membership figure shall be determined by dividing the amount	4533
representing the sum of the number of enrollees in each program or	4534
service in the week for which the certification is made by the	4535
number of days the program or service was offered in that week. No	4536
enrollee may be counted in average daily membership for more than	4537
one program or service.	4538

(2) By the fifteenth day of December, the number of children	4539
enrolled in approved preschool units on the first day of December;	4540

(3) On or before the thirtieth day of March, an itemized	4541
report of all income and operating expenditures for the	4542
immediately preceding calendar year, in the format specified by	4543
the department of mental retardation and developmental	4544
disabilities;	4545

(4) By the fifteenth day of February, a report of the total	4546
annual cost per enrollee for operation of programs and services in	4547
the preceding calendar year. The report shall include a grand	4548
total of all programs operated, the cost of the individual	4549
programs, and the sources of funds applied to each program.	4550

(5) That each required certification and report is in	4551
accordance with rules established by the department of mental	4552
retardation and developmental disabilities and the state board of	4553
education for the operation and subsidization of the programs and	4554
services.	4555

(C) To compute payments under this section to the board for	4556
the fiscal year, the department of mental retardation and	4557
developmental disabilities shall use the certification of average	4558
daily membership required by division (B)(1) of this section	4559
exclusive of the average daily membership in any approved school	4560
age unit class and the number in any approved preschool unit.	4561

(D) The department shall pay each county board for each	4562
fiscal year an amount equal to nine hundred fifty dollars times	4563
the certified number of persons who on the first day of December	4564
of the academic year are under three years of age and are not in	4565
an approved preschool unit. For persons who are at least age	4566
sixteen and are not in an approved school age unit class, the	4567
department shall pay each county board for each fiscal year the	4568
following amounts:	4569

(1) One thousand dollars times the certified average daily	4570
membership of persons enrolled in traditional adult services who	4571
are eligible for but not enrolled in active treatment under the	4572
community alternative funding system;	4573

(2) One thousand two hundred dollars times the certified	4574
average daily membership of persons enrolled in traditional adult	4575
services who are eligible for and enrolled in active treatment	4576
under the community alternative funding system;	4577

(3) No less than one thousand five hundred dollars times the	4578
certified average daily membership of persons enrolled in	4579
traditional adult services but who are not eligible for active	4580
treatment under the community alternative funding system;	4581

(4) No less than one thousand five hundred dollars times the	4582
certified average daily membership of persons participating in	4583
community employment services.	4584

(E) The department shall distribute this subsidy to county	4585
boards in semiannual installments of equal amounts. The	4586
installments shall be made not later than the thirty-first day of	4587
August and the thirty-first day of January.	4588

(F) The director of mental retardation and developmental	4589
disabilities shall make efforts to obtain increases in the	4590
subsidies for early childhood services and adult services so that	4591
the amount of the subsidies is equal to at least fifty per cent of	4592
the statewide average cost of those services minus any applicable	4593
federal reimbursements for those services. The director shall	4594
advise the director of budget and management of the need for any	4595
such increases when submitting the biennial appropriations request	4596
for the department.	4597

(G) In determining the reimbursement of a county board for	4598
the provision of case management and family support services and	4599
other services required or approved by the director for which	4600
children three through twenty-one years of age are eligible, the	4601
department shall include the average daily membership in approved	4602
school age or preschool units. The department, in accordance with	4603
this section and upon receipt and approval of the certification	4604
required by this section and any other information it requires to	4605
enable it to determine a board's payments, shall pay the agency	4606
providing the specialized training the amounts payable under this	4607
section.	4608

Section 2. That existing sections 133.07, 3301.075, 3301.80,	4609
3313.37, 3313.608, 3314.08, 3317.012, 3317.013, 3317.02, 3317.022,	4610
3317.023, 3317.029, 3317.0212, 3317.03, 3317.05, 3317.051,	4611
3317.11, 3317.16, 3317.161, 3317.162, 3317.20, 3318.31, 3319.19,	4612
3323.09, 3323.091, 3333.02, 3333.03, 3333.12, 3333.13, 3770.02,	4613
3770.03, 3770.06, 5126.05, and 5126.12 and section 307.031 of the	4614
Revised Code are hereby repealed.	4615

Section 3.  Except as otherwise provided, all appropriation	4616
items (AI) in this act are appropriated out of any moneys in the	4617
state treasury to the credit of the designated fund, which are not	4618
otherwise appropriated. For all appropriations made in this act,	4619
the amounts in the first column are for fiscal year 2002 and the	4620
amounts in the second column are for fiscal year 2003.	4621

4623

Section 4.  EDU DEPARTMENT OF EDUCATION

4624

General Revenue Fund

4625

General Services Fund Group

4680

Federal Special Revenue Fund Group

4689

State Special Revenue Fund Group

4717

Lottery Profits Education Fund Group

4726

4732

Section 4.01. MAINTENANCE AND EQUIPMENT

4733

Of the foregoing appropriation item 200-320, Maintenance and	4734
Equipment, up to $25,000 may be expended in each year of the	4735
biennium for State Board of Education out-of-state travel.	4736

Section 4.02.  HEAD START

4737

The foregoing appropriation item 200-406, Head Start, shall	4738
be distributed by the Department of Education to Head Start	4739
agencies. A "Head Start agency" means an entity that has been	4740
approved to be an agency in accordance with Section 641 (42 U.S.C.	4741
9836) of the Head Start Act and amendments thereto, or an entity	4742
designated for state Head Start funding under this section.	4743
Participation in state-funded Head Start programs is voluntary.	4744

Moneys distributed under this heading shall not be used to	4745
reduce expenditures from funds received by a Head Start agency	4746
from any other sources. Section 3301.31 of the Revised Code does	4747
not apply to funds distributed under this heading. In lieu of	4748
section 3301.31 of the Revised Code, distribution of moneys under	4749
this heading shall be as follows:	4750

(A) In fiscal years 2002 and 2003, up to two per cent of the	4751
appropriation may be used by the department for administrative	4752
costs of complying with this section; developing program capacity;	4753
and assisting programs with facilities planning, construction,	4754
renovation, or lease agreements in combination with the Community	4755
Development Finance Fund (CDFF). Up to $1,530,000 in fiscal year	4756
2002 and up to $1,560,600 in fiscal year 2003 may be used for	4757
training in early literacy for Head Start classroom teachers and	4758
administrators to support the OhioReads Initiative.	4759

(B) The department shall provide an annual report to the	4760
Governor, the Speaker of the House of Representatives, the	4761
President of the Senate, the State Board of Education, Head Start	4762
grantees, and other interested parties. The report shall include	4763
the following:	4764

(1) The number and per cent of eligible children by county	4765
and by grantee;	4766

(2) The amount of state funds requested for continuation per	4767
grantee;	4768

(3) The amount of state funds received for continuation per	4769
grantee;	4770

(4) A summary of program performance on the state critical	4771
performance indicators;	4772

(5) A summary of developmental progress of children	4773
participating in the state-funded Head Start program;	4774

(6) Any other data reflecting the performance of Head Start	4775
that the department considers pertinent.	4776

(C) For purposes of this section, "eligible child" means a	4777
child who is at least three years of age and not of compulsory	4778
school age whose family earns no more than 100 per cent of the	4779
federal poverty level, except as otherwise provided in this	4780
division.	4781

The Department of Education, in consultation with Head Start	4782
grantees or their designated representatives, shall establish	4783
criteria under which individual Head Start grantees may apply to	4784
the department for a waiver to include as "eligible children"	4785
those children from families earning up to 125 per cent of the	4786
federal poverty level when the children otherwise qualify as	4787
"eligible children" under this division.	4788

The Department of Education, in consultation with the	4789
Department of Job and Family Services, interested parties, and	4790
Head Start agencies shall formulate a method for determining an	4791
estimate of the number of eligible children and the per cent	4792
served by grantee(s) in each county.	4793

(D) After setting aside amounts to make any payments due	4794
from the prior fiscal year, in fiscal years 2002 and 2003, funds	4795
shall first be distributed to recipients of Head Start funds	4796
during the preceding fiscal year. Awards under this division may	4797
be reduced by the amount received in that year for one-time	4798
start-up costs and may be adjusted for actual months of program	4799
operation or enrollment as reported during the first full week of	4800
December, and may be increased by a reasonable percentage for	4801
inflation to be determined by the Department of Education and in	4802
accordance with this section. The department may redistribute	4803
dollars to programs demonstrating an unmet need based on updated	4804
assessments of family needs and community resources, with special	4805
attention to the projected impact of welfare reform. In fiscal	4806
years 2002 and 2003, the department may authorize recipients to	4807
carry over funds to the subsequent fiscal year.	4808

The department may reallocate unobligated or unspent money to	4809
participating Head Start agencies for purposes of program	4810
expansion, improvement, or special projects to promote excellence	4811
and innovation.	4812

(E) Costs for developing and administering a Head Start	4813
program may not exceed fifteen per cent of the total approved	4814
costs of the program.	4815

All recipients of funds shall maintain such fiscal control	4816
and accounting procedures as may be necessary to ensure the	4817
disbursement of, and accounting for, these funds. The control of	4818
funds provided in this program, and title to property obtained	4819
therefrom, shall be under the authority of the approved recipient	4820
for purposes provided in the program. The approved recipient	4821
shall administer and use such property and funds for the purposes	4822
specified.	4823

Each recipient shall furnish the department an annual audit	4824
that includes the review of state funds received under this	4825
section.	4826

(F) The department shall prescribe target levels for	4827
critical performance indicators for the purpose of assessing Head	4828
Start programs. On-site reviews and follow-up visits shall be	4829
based on grantee progress in meeting the prescribed target levels.	4830

The department may audit a Head Start agency's financial and	4831
program records. Head Start agencies that have financial	4832
practices not in accordance with standard accounting principles,	4833
that fail to substantially meet the Head Start performance	4834
standards, or that exhibit below-average performance shall be	4835
subject to an on-site review.	4836

The department shall require corrective plans of action for	4837
programs not achieving target levels or financial and program	4838
standards. Action plans shall include activities to be conducted	4839
by the grantee and timelines for activities to be completed and	4840
timelines for additional data submission to the department	4841
demonstrating targets have been met. The Policy Council	4842
chairperson and the appropriate grantee board official shall sign	4843
the corrective plans of action.	4844

Programs not meeting performance targets in accordance with	4845
the plan of action and prescribed timelines may have their	4846
continuation funding reduced, be disqualified for expansion	4847
consideration until targets are met, or have all state funds	4848
withdrawn and a new grantee established.	4849

The department shall require school districts to collect	4850
"preschool" information by program type. All data shall be	4851
reported via the Education Management Information System (EMIS).	4852

(G) The department shall require Head Start grantees to	4853
document child progress, using a common instrument prescribed by	4854
the department, and report results annually. The department shall	4855
determine the dates for documenting and reporting.	4856

The State Board of Education shall adopt rules addressing the	4857
use of screening and assessment data, including, but not limited	4858
to, all the following:	4859

(1) Protection of the identity of individual children	4860
through assignment of a unique but not personally identifiable	4861
code;	4862

(2) Parents' rights;

4863

(3) Use of the data by school personnel as it relates to	4864
kindergarten entrance.	4865

(H) New agencies may be designated for state Head Start	4866
funding if a Head Start agency voluntarily waives its right for	4867
funding or is de-funded based on performance.	4868

When such a condition exists, the department shall conduct a	4869
competitive bidding process to select a new agency to provide	4870
state funded continuation or expansion services. The bidding	4871
process shall include notices of competitive bidding mailed to	4872
delegate agencies in the affected area and to newspapers in the	4873
Head Start service area.	4874

Section 3313.646 of the Revised Code does not apply to funds	4875
distributed under this section.	4876

(I) It is the intent of the General Assembly that	4877
appropriations for appropriation items 200-406, Head Start, and	4878
200-408, Public Preschool, be available for transfer between Head	4879
Start and public preschool programs so that unallocated funds may	4880
be used between the two programs.	4881

Section 4.03. PUBLIC PRESCHOOL	4882

The Department of Education shall distribute the foregoing	4883
appropriation item 200-408, Public Preschool, to pay the costs of	4884
comprehensive preschool programs. As used in this section,	4885
"school district" means a city, local, exempted village, or joint	4886
vocational school district, or an educational service center.	4887

(A) In fiscal years 2002 and 2003, up to two per cent of the	4888
total appropriation may be used by the department for	4889
administrative costs of complying with this section; developing	4890
program capacity; and assisting programs with facilities planning,	4891
construction, renovation, or lease agreements in conjunction with	4892
the Community Development Finance Fund (CDFF).	4893

(B) The department shall provide an annual report to the	4894
Governor, the Speaker of the House of Representatives, the	4895
President of the Senate, the State Board of Education, Head Start	4896
grantees, and other interested parties. The report shall include:	4897

(1) The number and per cent of eligible children by county	4898
and by school district;	4899

(2) The amount of state funds requested for continuation per	4900
school district;	4901

(3) The amount of state funds received for continuation per	4902
school district;	4903

(4) A summary of program performance on the state critical	4904
performance indicators in the public preschool program;	4905

(5) A summary of developmental progress of children	4906
participating in the state-funded public preschool program;	4907

(6) Any other data reflecting the performance of public	4908
preschool programs that the department considers pertinent.	4909

(C) For purposes of this section, "eligible child" means a	4910
child who is at least three years of age whose family earns no	4911
more than 185 per cent of the federal poverty level.	4912

The Department of Education, in consultation with the	4913
Department of Job and Family Services, interested parties, and	4914
Head Start agencies shall formulate a method for determining an	4915
estimate of the number of eligible children and the percentage	4916
served by grantees in each county.	4917

(D) After setting aside amounts to make any payments due	4918
from the prior fiscal year, in fiscal years 2002 and 2003, funds	4919
shall first be distributed to recipients of funds during the	4920
preceding fiscal year. Awards under this division may be reduced	4921
by the amount received in that fiscal year for one-time start-up	4922
costs and may be adjusted for actual months of program operation	4923
or enrollment as reported during the first full week of December,	4924
and may be increased by a reasonable percentage to be determined	4925
by the Department of Education. The department may redistribute	4926
dollars to programs demonstrating an unmet need based on updated	4927
assessments of family needs and community resources, with special	4928
attention to the projected impact of welfare reform. In fiscal	4929
years 2002 and 2003, the department may authorize recipients to	4930
carry over funds to the subsequent fiscal year.	4931

The department may reallocate unobligated or unspent money to	4932
participating school districts for purposes of program expansion,	4933
improvement, or special projects to promote excellence and	4934
innovation.	4935

(E) Costs for developing and administering a preschool	4936
program may not exceed fifteen per cent of the total approved	4937
costs of the program.	4938

All recipients of funds shall maintain such fiscal control	4939
and accounting procedures as may be necessary to ensure the	4940
disbursement of, and accounting for, these funds. The control of	4941
funds provided in this program, and title to property obtained	4942
therefrom, shall be under the authority of the approved recipient	4943
for purposes provided in the program. The approved recipient	4944
shall administer and use such property and funds for the purposes	4945
specified.	4946

(F) The department shall prescribe target levels for	4947
critical performance indicators for the purpose of assessing	4948
public preschool programs. On-site reviews and follow-up visits	4949
shall be based on progress in meeting the prescribed target	4950
levels.	4951

The department may audit a school district's preschool	4952
financial and program records. School districts that have	4953
financial practices not in accordance with standard accounting	4954
principles, that operate preschool programs that fail to	4955
substantially meet the Head Start performance standards, or that	4956
exhibit below-average performance shall be subject to an on-site	4957
review.	4958

The department shall require corrective plans of action for	4959
programs not achieving target levels or financial and program	4960
standards. Action plans shall include activities to be conducted	4961
by the grantee and timelines for activities to be completed and	4962
timelines for additional data submission to the department	4963
demonstrating that targets have been met. The appropriate school	4964
board official shall sign the corrective plans of action.	4965

Public preschool programs not meeting performance targets in	4966
accordance with the plan of action and prescribed timelines may	4967
have their continuation funding reduced, be disqualified for	4968
expansion consideration until targets are met, or have all state	4969
funds withdrawn and a new program established.	4970

(G) The department shall require public preschool programs	4971
to document child progress, using a common instrument prescribed	4972
by the department, and report results annually. The department	4973
shall determine the dates for documenting and reporting.	4974

The State Board of Education shall adopt rules addressing the	4975
use of screening and assessment data, including, but not limited	4976
to, all of the following:	4977

(1) Protection of the identity of individual children	4978
through assignment of a unique but not personally identifiable	4979
code;	4980

(2) Parents' rights;

4981

(3) Use of the data by school personnel as it relates to	4982
kindergarten entrance.	4983

(H) Each school district shall develop a sliding fee scale	4984
based on family incomes in the district and shall charge families	4985
who earn more than the federal poverty level for preschool.	4986

(I) It is the intent of the General Assembly that	4987
appropriations for appropriation items 200-406, Head Start, and	4988
200-408, Public Preschool, be available for transfer between Head	4989
Start and Public Preschool programs so that unallocated funds may	4990
be used between the two programs.	4991

Section 4.04. PROFESSIONAL DEVELOPMENT

4992

Of the foregoing appropriation item 200-410, Professional	4993
Development, $5,997,829 in each fiscal year shall be used by the	4994
Department of Education to develop a statewide comprehensive	4995
system of twelve professional development centers that support	4996
local educators' ability to foster academic achievement in the	4997
students they serve. The centers shall include training teachers	4998
on site-based management concepts to encourage teachers to become	4999
involved in the management of their schools.	5000

Of the foregoing appropriation item 200-410, Professional	5001
Development, $9,659,713 in each fiscal year shall be distributed	5002
on a per teacher basis to all school districts and joint	5003
vocational school districts for locally developed teacher training	5004
and professional development and for the establishment of local	5005
professional development committees in all school districts and	5006
chartered nonpublic schools. School districts and joint	5007
vocational school districts shall not be precluded from using	5008
these funds for cooperative activities on a county or regional	5009
basis. School districts with pass rates of less than 75 per cent	5010
on the fourth grade reading proficiency test shall allocate not	5011
less than 40 per cent of these funds for professional development	5012
for teachers in elementary literacy skills.	5013

Of the foregoing appropriation item 200-410, Professional	5014
Development, $5,845,000 in fiscal year 2002 and $6,000,000 in	5015
fiscal year 2003 shall be used by the Department of Education to	5016
pay the application fee for teachers from public and chartered	5017
nonpublic schools applying to the National Board for Professional	5018
Teaching Standards for professional teaching certificates or	5019
licenses that the board offers, and to provide grants in each	5020
fiscal year to recognize and reward teachers who become certified	5021
by the board pursuant to section 3319.55 of the Revised Code.	5022

These moneys shall be used to pay for the first 900	5023
applications in fiscal year 2002 and up to the first 550	5024
applications in fiscal year 2003 received by the department. Each	5025
prospective applicant for certification or licensure shall submit	5026
an application to the Department of Education. When the	5027
department has collected a group of applications, but not later	5028
than 30 days after receipt of the first application in a group, it	5029
shall send the applications to the National Board for Professional	5030
Teaching Standards along with a check to cover the cost of the	5031
application fee for all applicants in that group.	5032

Of the foregoing appropriation item 200-410, Professional	5033
Development, up to $8,296,000 in fiscal year 2002 and up to	5034
$19,387,750 in fiscal year 2003 shall be allocated for entry year	5035
programs. These funds shall be used to support mentoring services	5036
of beginning teachers. In fiscal year 2002, the Department of	5037
Education shall select eligible beginning teachers to participate	5038
in a year-long entry year program that provides mentoring by	5039
experienced school district and university faculty and Praxis III	5040
teacher performance assessment. In fiscal year 2003, the program	5041
shall also include the assessment of all beginning teachers with	5042
the Education Testing Service's Praxis III examination.	5043

Of the foregoing appropriation item 200-410, Professional	5044
Development, up to $730,000 in each fiscal year shall be used to	5045
continue Ohio leadership academies to develop and train	5046
superintendents in new leadership and management practices to	5047
support high performance schools. This training shall be	5048
coordinated with other locally administered leadership programs.	5049

Of the foregoing appropriation item 200-410, Professional	5050
Development, up to $1,000,000 in fiscal year 2002 and up to	5051
$1,250,000 in fiscal year 2003 shall be used to support the Ohio	5052
Principal's Leadership Academy that will serve principals and	5053
their staff teams. An advisory panel comprised of national	5054
business and education experts shall advise the Department of	5055
Education on content and delivery of curriculum and instruction.	5056

Of the foregoing appropriation item 200-410, Professional	5057
Development, up to $1,000,000 in each fiscal year shall be used to	5058
establish an entry year program for principals. Grants in fiscal	5059
year 2002 shall be issued to pilot sites that shall develop	5060
prototypes of the program in a variety of contexts. These sites	5061
also shall pilot the School Leaders Licensure Assessment, which	5062
was developed by the Educational Testing Service at a cost of $450	5063
per assessment. Funds in fiscal year 2003 shall be used to	5064
implement an entry year program for principals.	5065

Of the foregoing appropriation item 200-410, Professional	5066
Development, up to $575,000 in each fiscal year shall be used by	5067
the Rural Appalachian Initiative to create professional	5068
development academies for teachers, principals, and	5069
superintendents in the Appalachian region. No funding shall be	5070
released prior to the Department of Education receiving a	5071
satisfactory report of the activities conducted by these	5072
professional development academies during the previous year.	5073

Of the foregoing appropriation item 200-410, Professional	5074
Development, up to $250,000 in fiscal year 2002 and up to $350,000	5075
in fiscal year 2003 shall be used to support a Teacher Recognition	5076
Program. Funds awarded shall be used to recognize exemplary	5077
performance and support the professional development of educators	5078
across the educator life-cycle continuum, and may also be used to	5079
support the implementation of an educator-in-residence program.	5080

Of the foregoing appropriation item 200-410, Professional	5081
Development, up to $25,000 in each fiscal year shall be used by	5082
the Ohio Teacher Education and Certification Commission to carry	5083
out the responsibilities of the 21-member Ohio Teacher Education	5084
and Certification Advisory Commission. The advisory commission is	5085
charged by the State Board of Education with considering all	5086
matters related to educator preparation and licensure, including	5087
standards for educator preparation and licensure, approval of	5088
institutions and programs, and recommending consideration of	5089
decisions to the State Board.	5090

Of the foregoing appropriation item 200-410, Professional	5091
Development, up to $75,000 in each fiscal year shall be used to	5092
support the Ohio University Leadership Program.	5093

Section 4.05.  FAMILY AND CHILDREN FIRST

5094

(A) Of the foregoing appropriation item 200-411, Family and	5095
Children First, the Department of Education shall transfer up to	5096
$5,000,000 in each fiscal year by intrastate transfer voucher to	5097
the Department of Mental Retardation and Developmental	5098
Disabilities. These funds shall be spent on direct grants to	5099
county family and children first councils created under section	5100
121.37 of the Revised Code. The funds shall be used as partial	5101
support payment and reimbursement for locally coordinated	5102
treatment plans for multineeds children that come to the attention	5103
of the Family and Children First Cabinet Council pursuant to	5104
section 121.37 of the Revised Code. The treatment plans shall	5105
include strategies to address each child's academic achievement.	5106
The Department of Mental Retardation and Developmental	5107
Disabilities shall administer the distribution of the direct	5108
grants to the county councils. The Department of Mental	5109
Retardation and Developmental Disabilities may use up to five per	5110
cent of this amount for administrative expenses associated with	5111
the distribution of funds to the county councils.	5112

(B) Of the foregoing appropriation item 200-411, Family and	5113
Children First, up to $3,550,000 in each fiscal year shall be used	5114
as administrative grants to county family and children first	5115
councils to provide a portion of the salary and fringe benefits	5116
necessary to fund county council coordinators, administrative	5117
support, training, or parental involvement. The total initial	5118
grant under this provision to any county family and children first	5119
council shall not exceed $40,000. In the event that not all	5120
counties in the state have established a county council, at the	5121
beginning of the fourth quarter of a fiscal year, any remaining	5122
funds to be used as administrative grants may be redirected by the	5123
Family and Children First Cabinet Council to other priorities and	5124
activities. Up to $30,000 of the $3,550,000 in each fiscal year	5125
shall be used by the Family and Children First Cabinet Council for	5126
administrative costs, including stipends to family representatives	5127
participating in approved activities of the initiative,	5128
educational and informational forums, and technical assistance to	5129
local family and children first councils.	5130

(C) Of the foregoing appropriation item 200-411, Family and	5131
Children First, up to $5,190,000 in each fiscal year shall be used	5132
to fund school-based or school-linked school readiness resource	5133
centers in school districts where there is a concentration of risk	5134
factors to school readiness and success, including indicators of	5135
poverty, health, and family stability. The purpose of these	5136
centers is to assist in providing services to families of	5137
school-age children who want and need support.	5138

School readiness resource centers shall be located in each of	5139
the state's 21 urban school districts as defined in division (O)	5140
of section 3317.02 of the Revised Code, as that section existed	5141
prior to July 1, 1998. The Ohio Family and Children First Cabinet	5142
Council, in consultation with the Department of Education and	5143
school districts, shall identify individual schools based on	5144
quantitative and qualitative factors that reflect both the need	5145
for school readiness resource centers and the local capacity for	5146
redesigning, as necessary, a delivery system of family support	5147
services. The council and the Department of Education shall	5148
organize and provide technical assistance to the school districts	5149
and communities in planning, developing, and implementing the	5150
centers. The council shall also negotiate a performance agreement	5151
that details required program characteristics, service options,	5152
and expected results.	5153

Each urban school district and community may receive up to	5154
$240,000 to maintain three school readiness resource centers that	5155
are located in or linked to elementary, middle, and high school	5156
sites that are connected by student assignment patterns within the	5157
school districts. Each school district shall work with a	5158
representative of the local family and children first council and	5159
a representative cross-section of families and community leaders	5160
in the district to operate the school readiness resource centers	5161
based upon conditions agreed to in the performance agreement	5162
negotiated with the cabinet council.	5163

Up to $50,000 in each fiscal year may be used by the Ohio	5164
Family and Children First Cabinet Council for an evaluation of the	5165
effectiveness of the school readiness resource centers. Up to	5166
$100,000 in each fiscal year may be used by the cabinet council to	5167
approve technical assistance and oversee the implementation of the	5168
centers. The administration and management of the school	5169
readiness resource centers may be contracted out through a	5170
competitive bidding process established by the cabinet council in	5171
consultation with the Department of Education.	5172

Section 4.06. VOCATIONAL EDUCATION MATCH

5173

The foregoing appropriation item 200-416, Vocational	5174
Education Match, shall be used by the Department of Education to	5175
provide vocational administration matching funds pursuant to 20	5176
U.S.C. 2311.	5177

TECHNICAL SYSTEMS DEVELOPMENT

5178

The foregoing appropriation item 200-420, Technical Systems	5179
Development, shall be used to support the development and	5180
implementation of information technology solutions designed to	5181
improve the performance and customer service of the Department of	5182
Education. Funds may be used for personnel, maintenance, and	5183
equipment costs related to the development and implementation of	5184
these technical system projects. Implementation of these systems	5185
shall allow the department to provide greater levels of assistance	5186
to school districts and to provide more timely information to the	5187
public, including school districts, administrators, and	5188
legislators.	5189

In each fiscal year, up to $2,000,000 shall be used for EMIS	5190
conversion, including district support and technical assistance;	5191
up to $350,000 in each year may be used for the department's	5192
annual maintenance contract for database management software; and	5193
up to $200,000 in each year shall be used to support the data	5194
warehouse project.	5195

ALTERNATIVE EDUCATION PROGRAMS

5196

There is hereby created the Alternative Education Advisory	5197
Council, which shall consist of one representative from each of	5198
the following agencies: the Ohio Department of Education; the	5199
Department of Youth Services; the Ohio Department of Alcohol and	5200
Drug Addiction Services; the Department of Mental Health; the	5201
Office of the Governor or, at the Governor's discretion, the	5202
Office of the Lieutenant Governor; and the Office of the Attorney	5203
General.	5204

Of the foregoing appropriation item 200-421, Alternative	5205
Education Programs, not less than $10,275,000 in fiscal year 2002	5206
and not less than $11,842,500 in fiscal year 2003 shall be used	5207
for the renewal of successful implementation grants and for	5208
competitive matching grants to the 21 urban school districts as	5209
defined in division (O) of section 3317.02 of the Revised Code as	5210
it existed prior to July 1, 1998, and not less than $10,275,000 in	5211
fiscal year 2002 and not less than $11,842,500 in fiscal year 2003	5212
shall be used for the renewal of successful implementation of	5213
grants and for competitive matching grants to rural and suburban	5214
school districts for alternative educational programs for existing	5215
and new at-risk and delinquent youth. Programs shall be focused	5216
on youth in one or more of the following categories: those who	5217
have been expelled or suspended, those who have dropped out of	5218
school or who are at risk of dropping out of school, those who are	5219
habitually truant or disruptive, or those on probation or on	5220
parole from a Department of Youth Services facility. Grants shall	5221
be awarded according to the criteria established by the	5222
Alternative Education Advisory Council in 1999. Grants shall be	5223
awarded only to programs where the grant would not serve as the	5224
program's primary source of funding. These grants shall be	5225
administered by the Department of Education.	5226

The Department of Education may waive compliance with any	5227
minimum education standard established under section 3301.07 of	5228
the Revised Code for any alternative school that receives a grant	5229
under this section on the grounds that the waiver will enable the	5230
program to more effectively educate students enrolled in the	5231
alternative school.	5232

Of the foregoing appropriation item 200-421, Alternative	5233
Education Programs, up to $536,697 in fiscal year 2002 and up to	5234
$576,384 in fiscal year 2003 may be used for program	5235
administration, monitoring, technical assistance, support,	5236
research, and evaluation. Any unexpended balance may be used to	5237
provide additional matching grants to urban, suburban, or rural	5238
school districts as outlined above.	5239

Of the foregoing appropriation item 200-421, Alternative	5240
Education Programs, $350,000 in each fiscal year shall be used to	5241
contract with the Center for Learning Excellence at The Ohio State	5242
University to provide technical support for the project and the	5243
completion of formative and summative evaluation of the grants.	5244

Of the foregoing appropriation item 200-421, Alternative	5245
Education Programs, up to $900,000 in each fiscal year shall be	5246
used to support Amer-I-Can.	5247

SCHOOL MANAGEMENT ASSISTANCE

5248

The foregoing appropriation item 200-422, School Management	5249
Assistance, shall be used by the Department of Education to	5250
provide fiscal technical assistance and inservice education for	5251
school district management personnel and to administer, monitor,	5252
and implement the fiscal watch and fiscal emergency provisions	5253
under Chapter 3316. of the Revised Code.	5254

POLICY ANALYSIS

5255

The foregoing appropriation item 200-424, Policy Analysis,	5256
shall be used by the Department of Education to support a system	5257
of administrative, statistical, and legislative education	5258
information to be used for policy analysis. Staff supported by	5259
this appropriation shall administer the development of reports,	5260
analyses, and briefings to inform education policymakers of	5261
current trends in education practice, efficient and effective use	5262
of resources, and evaluation of programs to improve education	5263
results. The database shall be kept current at all times. These	5264
research efforts shall be used to supply information and analysis	5265
of data to the General Assembly and other state policymakers,	5266
including the Office of Budget and Management and the Legislative	5267
Service Commission.	5268

The Department of Education may use funding from this	5269
appropriation item to purchase or contract for the development of	5270
software systems or contract for policy studies that will assist	5271
in the provision and analysis of policy-related information.	5272
Funding from this appropriation item also may be used to monitor	5273
and enhance quality assurance for research-based policy analysis	5274
and program evaluation to enhance the effective use of education	5275
information to inform education policymakers.	5276

Of the foregoing appropriation item 200-424, Policy Analysis,	5277
up to $1,000,000 in each fiscal year may be used for the cost of	5278
an independent evaluation of programs that have been funded to	5279
improve public instruction. Specific programs to be evaluated	5280
shall be determined by the Department of Education in consultation	5281
with the Office of Budget and Management.	5282

TECH PREP ADMINISTRATION

5283

The foregoing appropriation item 200-425, Tech Prep	5284
Administration, shall be used by the Department of Education to	5285
support state-level activities designed to support, promote, and	5286
expand tech prep programs. Use of these funds shall include, but	5287
not be limited to, administration of grants, program evaluation,	5288
professional development, curriculum development, assessment	5289
development, program promotion, communications, and statewide	5290
coordination of tech prep consortia.	5291

OHIO EDUCATIONAL COMPUTER NETWORK

5292

The foregoing appropriation item 200-426, Ohio Educational	5293
Computer Network, shall be used by the Department of Education to	5294
maintain a system of information technology throughout Ohio and to	5295
provide technical assistance for such a system in support of the	5296
State Education Technology Plan pursuant to section 3301.07 of the	5297
Revised Code.	5298

Of the foregoing appropriation item 200-426, Ohio Educational	5299
Computer Network, up to $20,571,198 in fiscal year 2002 and up to	5300
$21,188,334 in fiscal year 2003 shall be used by the Department of	5301
Education to support connection of all public school buildings to	5302
the state's education network, to each other, and to the Internet.	5303
In each fiscal year the Department of Education shall use these	5304
funds to help reimburse data acquisition sites or school districts	5305
for the operational costs associated with this connectivity. The	5306
Department of Education shall develop a formula and guidelines for	5307
the distribution of these funds to the data acquisition sites or	5308
individual school districts. As used in this section, "public	5309
school building" means a school building of any city, local,	5310
exempted village, or joint vocational school district, or any	5311
community school established under Chapter 3314. of the Revised	5312
Code, or any educational service center building used for	5313
instructional purposes.	5314

Of the foregoing appropriation item 200-426, Ohio Educational	5315
Computer Network, up to $2,043,938 in fiscal year 2002 and up to	5316
$2,095,037 in fiscal year 2003 shall be used for the Union Catalog	5317
and InfOhio Network.	5318

The Department of Education shall use up to $4,590,000 in	5319
fiscal year 2002 and up to $4,727,700 in fiscal year 2003 to	5320
assist designated data acquisition sites with operational costs	5321
associated with the increased use of the state's education network	5322
by chartered nonpublic schools. The Department of Education shall	5323
develop a formula and guidelines for distribution of these funds	5324
to designated data acquisition sites.	5325

Of the foregoing appropriation item 200-426, Ohio Educational	5326
Computer Network, $1,200,000 in each fiscal year shall be used by	5327
the Department of Education to fund a grant to RISE, Inc., as	5328
support to train preschool staff members and parents.	5329

It is the intent of the General Assembly that the department,	5330
in conjunction with RISE, Inc., shall develop a program that may	5331
be conducted in conjunction with state-supported technology	5332
programs including, but not limited to, SchoolNet Commission	5333
appropriation item 228-406, Technical and Instructional	5334
Professional Development, and appropriation item 228-539,	5335
Education Technology, designed to educate preschool staff members	5336
and providers on developmentally appropriate teaching methods and	5337
to involve parents more closely in the education and development	5338
of their children. The project shall include an interactive	5339
instructional program, which shall be distributed to program	5340
participants at up to 26 locations throughout the state. The	5341
interactive instructional program shall be developed to enhance	5342
the professional development, training, and performance of	5343
preschool staff members; the education and care-giving skills of	5344
the parents of preschool children; and the preparation of	5345
preschool-aged children for learning.	5346

The project shall utilize the grant to continue a	5347
direct-service program that shall include at least three	5348
teleconferences to be distributed by Ohio-based public television	5349
utilizing satellite or microwave technology in a manner designed	5350
to promote interactive communications between the program	5351
participants located at sub-sites within the Ohio Educational	5352
Broadcast Network or as determined by the commission. Program	5353
participants shall communicate with trainers and participants at	5354
other program sites through telecommunications and facsimile and	5355
on-line computer technology. As much as possible, the project	5356
shall utilize systems currently available in state-supported	5357
technology programs and conduct the program in a manner that	5358
promotes innovative, interactive communications between program	5359
participants at all the sites. Parent support groups and teacher	5360
training sessions shall supplement the teleconferences and shall	5361
occur on a local basis.	5362

RISE, Inc., may subcontract components of the project.

5363

Individuals eligible to participate in the program include	5364
those children, their parents, custodians, or guardians, and	5365
preschool staff members who are eligible to participate in a	5366
preschool program as defined in division (A) of section 3301.52	5367
and section 5104.02 of the Revised Code.	5368

(A) Up to $600,000 of the $1,200,000 in each fiscal year may	5369
be used by RISE, Inc., to enter into a competitively bid contract	5370
with a not-for-profit entity or entities to conduct a series of	5371
training programs for adult volunteers who work with adolescent	5372
youth in afterschool mentoring programs, including youth-serving	5373
organizations such as Boy Scouts, Girl Scouts, Big Brothers, Big	5374
Sisters, 4-H, and public school mentor programs. The series of	5375
programs shall be designed to:	5376

(1) Improve the quality and effectiveness of adult volunteers	5377
so that they sustain their involvement with youth over time.	5378
Specifically, the adult volunteers improve their ability to	5379
motivate, supervise, and communicate with young people.	5380

(2) Improve the quality and effectiveness of adult volunteers	5381
so that the children they mentor, coach, teach, or befriend	5382
sustain their involvement with youth-serving organizations over	5383
time;	5384

(3) Encourage collaboration between all Ohio youth-serving	5385
organizations, including Boy Scouts, Girls Scouts, Big Brothers,	5386
Big Sisters, 4-H, and others;	5387

(4) Provide cost-efficient, sustainable distance learning to	5388
both rural and urban sites.	5389

(B) In order to be eligible for the contract with RISE, Inc.,	5390
program participants shall be able to demonstrate that leading	5391
national experts in adolescent development intervention programs	5392
will be utilized and that the program will use a variety of	5393
media to engage participants and help them learn the goals of the	5394
program. The program shall be designed to focus on the adult	5395
volunteers who assist in youth development. Training content shall	5396
focus on:	5397

(1) Development issues for youth;

5398

(2) Best practices to motivate, guide, and communicate with	5399
these young people;	5400

(3) Strategies for successful adult-to-adult interpersonal	5401
relationships that are necessary for ongoing learning and support.	5402

The program may include: two three-hour broadcast seminars	5403
from a central up-link station, distributed in up to 88 counties;	5404
corporate settings and extension offices with on-site facilitated	5405
discussion and exercises; high production-value video sought in	5406
various locations; and direct interactive adult learning	5407
activities. The program shall develop program workbooks and	5408
involve at least three small group-facilitated follow-up	5409
discussion workshops and development and distribution of at least	5410
two home videos. The program shall also provide Internet access,	5411
interactive lines, bulletin board, and CD-ROM.	5412

Upon completion of each of the school years for which the	5413
grant was made, RISE, Inc., shall issue a report to the commission	5414
and the members of the General Assembly explaining the goals and	5415
objectives determined, the activities implemented, the progress	5416
made toward the achievement of the goals and objectives, and the	5417
outcome of the project.	5418

The remainder in each fiscal year of appropriation item	5419
200-426, Ohio Educational Computer Network, shall be used to	5420
support development, maintenance, and operation of a network of	5421
uniform and compatible computer-based information and	5422
instructional systems. The technical assistance shall include, but	5423
not be restricted to, development and maintenance of adequate	5424
computer software systems to support network activities. Program	5425
funds may be used, through a formula and guidelines devised by the	5426
department, to subsidize the activities of not more than 24	5427
designated data acquisition sites, as defined by State Board of	5428
Education rules, to provide school districts and chartered	5429
nonpublic schools with computer-based student and teacher	5430
instructional and administrative information services, including	5431
approved computerized financial accounting, and to ensure the	5432
effective operation of local automated administrative and	5433
instructional systems. To broaden the scope of the use of	5434
technology for education, the department may use up to $250,000 in	5435
each fiscal year to coordinate the activities of the computer	5436
network with other agencies funded by the department or the state.	5437
In order to improve the efficiency of network activities, the	5438
department and data acquisition sites may jointly purchase	5439
equipment, materials, and services from funds provided under this	5440
appropriation for use by the network and, when considered	5441
practical by the department, may utilize the services of	5442
appropriate state purchasing agencies.	5443

ACADEMIC STANDARDS

5444

The foregoing appropriation item 200-427, Academic Standards,	5445
shall be used by the Department of Education to develop and	5446
disseminate academic content standards. These funds shall be used	5447
to develop academic content standards and curriculum models and to	5448
fund communication of expectations to teachers, school districts,	5449
parents, and communities.	5450

Section 4.07.  SCHOOL IMPROVEMENT INITIATIVES

5451

Of the foregoing appropriation item 200-431, School	5452
Improvement Initiatives, up to $3,700,000 in fiscal year 2002	5453
shall be used to continue previously awarded venture capital	5454
grants of $25,000 to 148 schools and up to $975,000 in fiscal year	5455
2003 shall be used to continue previously awarded venture capital	5456
grants of $25,000 to 39 schools.	5457

Of the foregoing appropriation item 200-431, School	5458
Improvement Initiatives, $4,500,000 in fiscal year 2002 and	5459
$5,000,000 in fiscal year 2003 shall be used for the development	5460
and distribution of school report cards pursuant to section	5461
3302.03 of the Revised Code, for the development of core	5462
competencies for the proficiency tests, and to support the	5463
recommendations of the Governor's Commission for Student Success.	5464

Of the foregoing appropriation item 200-431, School	5465
Improvement Initiatives, $7,500,000 in fiscal year 2002 and	5466
$8,500,000 in fiscal year 2003 shall be used to provide technical	5467
assistance to school districts that are declared to be in a state	5468
of academic watch or academic emergency under section 3302.03 of	5469
the Revised Code to develop their continuous improvement plans as	5470
required in section 3302.04 of the Revised Code.	5471

Of the foregoing appropriation item 200-431, School	5472
Improvement Initiatives, up to $152,998 in fiscal year 2002 and up	5473
to $156,441 in fiscal year 2003 shall be used to support a	5474
teacher-in-residence at the Governor's office and related support	5475
staff, travel expenses, and administrative overhead.	5476

Of the foregoing appropriation item 200-431, School	5477
Improvement Initiatives, up to $250,000 in fiscal year 2002 and up	5478
to $300,000 in fiscal year 2003 shall be used to implement the	5479
Criteria for Performance Excellence with the Department of	5480
Education and selected school districts. Up to $25,000 in fiscal	5481
year 2002 and up to $30,000 in fiscal year 2003 may be allocated	5482
for evaluation and administration. The remainder of the	5483
appropriation shall be used to provide district grants of up to	5484
$2,250 each in fiscal year 2002 and up to $2,700 each in fiscal	5485
year 2003 to 100 school districts.	5486

Funds shall support the integrated management system of	5487
performance excellence through continuous improvement to support	5488
state school standards, ongoing professional development, and	5489
quality tools; to encourage and reward knowledge and skill; and to	5490
create and implement print and electronic knowledge sharing to	5491
improve student achievement.	5492

Of the foregoing appropriation item 200-431, School	5493
Improvement Initiatives, up to $1,500,000 in fiscal year 2002 and	5494
up to $3,500,000 in fiscal year 2003 shall be used to support	5495
initiatives related to increasing access to advanced placement	5496
courses on the Internet.	5497

Of the foregoing appropriation item 200-431, School	5498
Improvement Initiatives, up to $600,000 in fiscal year 2002 and up	5499
to $780,000 in fiscal year 2003 shall be used to ensure that	5500
school operating standards are developed and communicated.	5501

Of the foregoing appropriation item 200-431, School	5502
Improvement Initiatives, up to $513,639 in fiscal year 2002 and up	5503
to $529,301 in fiscal year 2003 shall be used to support the	5504
Department of Education's customer response system.	5505

SCHOOL CONFLICT MANAGEMENT

5506

Of the foregoing appropriation item 200-432, School Conflict	5507
Management, amounts shall be used by the Department of Education	5508
for the purpose of providing dispute resolution and conflict	5509
management training, consultation, and materials for school	5510
districts, and for the purpose of providing competitive school	5511
conflict management grants to school districts.	5512

The Department of Education shall assist the Commission on	5513
Dispute Resolution and Conflict Management in the development and	5514
dissemination of the school conflict management program. The	5515
assistance provided by the Department of Education shall include	5516
the assignment of a full-time employee of the department to the	5517
Commission on Dispute Resolution and Conflict Management to	5518
provide technical and administrative support to maximize the	5519
quality of dispute resolution and conflict management programs and	5520
services provided to school districts.	5521

READING/WRITING IMPROVEMENT

5522

Of the foregoing appropriation item 200-433, Reading/Writing	5523
Improvement, up to $12,396,970 in each fiscal year shall be used	5524
for professional development in literacy for classroom teachers,	5525
administrators, and literacy specialists.	5526

Of the foregoing appropriation item 200-433, Reading/Writing	5527
Improvement, up to $6,500,000 in fiscal year 2002 and up to	5528
$13,000,000 in fiscal year 2003 shall be used to support half-time	5529
literacy specialists in eligible elementary school buildings. The	5530
Department of Education shall develop guidelines for the	5531
allocation of these funds and provide equalized state share	5532
funding to identified eligible districts.	5533

Of the foregoing appropriation item 200-433, Reading/Writing	5534
Improvement, up to $1,780,268 in fiscal year 2002 and up to	5535
$1,815,874 in fiscal year 2003 shall be used by the Department of	5536
Education to fund the Reading Recovery Training Network, to cover	5537
the cost of release time for the teacher trainers, and to provide	5538
grants to districts to implement other reading improvement	5539
programs on a pilot basis. Funds for this appropriation item may	5540
also be used to conduct evaluations of the impact and	5541
effectiveness of Reading Recovery and other reading improvement	5542
programs.	5543

The remainder of appropriation item 200-433, Reading/Writing	5544
Improvement, shall be used by the Department of Education to	5545
develop and support reading and writing improvement programs by	5546
providing a common assessment/profile instrument for elementary	5547
school buildings, literacy specialist support and training	5548
programs, and incentives for teachers to complete professional	5549
development programs.	5550

STUDENT ASSESSMENT

5551

The foregoing appropriation item 200-437, Student Assessment,	5552
shall be used to develop, field test, print, distribute, score,	5553
and report results from the tests required under sections	5554
3301.0710 and 3301.0711 of the Revised Code and for similar	5555
purposes as required by section 3301.27 of the Revised Code.	5556

SAFE SCHOOLS

5557

Of the foregoing appropriation item 200-438, Safe Schools,	5558
$250,000 in each fiscal year shall be used for the development and	5559
operation of a Safe Schools Center. The Department of Education	5560
shall oversee the creation of a center to serve as a coordinating	5561
entity to assist school district personnel, parents, juvenile	5562
justice representatives, and law enforcement in identifying	5563
effective strategies and services for improving school safety and	5564
reducing threats to the security of students and school personnel.	5565

Of the foregoing appropriation item 200-438, Safe Schools, up	5566
to $1,800,000 in each fiscal year shall be used for a safe-school	5567
help line program for students, parents, and the community to	5568
report threats to the safety of students or school personnel. The	5569
Department of Education shall establish criteria to distribute	5570
these funds to school districts whose superintendents indicate the	5571
program would be a meaningful aid to school security.	5572

AMERICAN SIGN LANGUAGE

5573

Of the foregoing appropriation item 200-441, American Sign	5574
Language, up to $153,000 in fiscal year 2002 and up to $156,060	5575
in fiscal year 2003 shall be used to implement pilot projects for	5576
the integration of American Sign Language deaf language into the	5577
kindergarten through twelfth-grade curriculum.	5578

The remainder of the appropriation shall be used by the	5579
Department of Education to provide supervision and consultation to	5580
school districts in dealing with parents of handicapped children	5581
who are deaf or hard of hearing, in integrating American Sign	5582
Language as a foreign language, and in obtaining interpreters and	5583
improving their skills.	5584

CHILD CARE LICENSING

5585

The foregoing appropriation item 200-442, Child Care	5586
Licensing, shall be used by the Department of Education to license	5587
and to inspect preschool and school-age child care programs in	5588
accordance with sections 3301.52 to 3301.59 of the Revised Code.	5589

PROFESSIONAL RECRUITMENT

5590

Of the foregoing appropriation item 200-444, Professional	5591
Recruitment, $1,300,000 in each fiscal year shall be used by the	5592
Department of Education to establish programs targeted at	5593
recruiting underrepresented populations into the teaching	5594
profession. In each year, the recruitment programs shall include,	5595
but not be limited to, alternative teacher licensure or	5596
certification programs emphasizing the recruitment of highly	5597
qualified minority candidates into teaching, including emphasizing	5598
the recruitment of highly qualified minority candidates into	5599
teaching positions in schools that have a high percentage of	5600
minority students. The recruitment programs also shall target	5601
recruiting qualified candidates available as a result of	5602
downsizing of the military and business sectors. Funding also	5603
shall be targeted to statewide, regional, and local programs that	5604
are competitively selected as promising programs demonstrating the	5605
potential of significantly increasing Ohio's minority teaching	5606
force.	5607

The remainder of appropriation item 200-444 shall be used by	5608
the Department of Education for recruitment programs targeting	5609
special needs areas: recruiting prospective mathematics and	5610
science teachers, recruiting special educators, recruiting	5611
principals, developing a web-based placement bureau, establishing	5612
a pre-collegiate program to target future teachers, and piloting	5613
paraeducators-to-teacher programs.	5614

OHIOREADS ADMIN/VOLUNTEER SUPPORT

5615

The foregoing appropriation item 200-445, OhioReads	5616
Admin/Volunteer Support, may be allocated by the OhioReads Council	5617
for volunteer coordinators in public school buildings, to	5618
educational service centers for costs associated with volunteer	5619
coordination, for background checks for volunteers, to evaluate	5620
the OhioReads Program, and for operating expenses associated with	5621
administering the program.	5622

Section 4.08.  EDUCATION MANAGEMENT INFORMATION SYSTEM

5623

The foregoing appropriation item 200-446, Education	5624
Management Information System, shall be used by the Department of	5625
Education to provide school districts with the means to implement	5626
local automated information systems and to implement, develop, and	5627
improve the Education Management Information System (EMIS) for the	5628
common student information management software developed by the	5629
Department of Education.	5630

Of the foregoing appropriation item 200-446, Education	5631
Management Information System, up to $1,100,000 in fiscal year	5632
2003 may be used by the Department of Education to assist	5633
designated data acquisition sites or school districts with	5634
deployment and implementation of the common student management	5635
record system software, and for hardware, personnel, equipment,	5636
staff development, software, and forms modification, as well as to	5637
support EMIS special report activities in the department.	5638

Of the foregoing appropriation item 200-446, Education	5639
Management Information System, up to $2,213,639 in fiscal year	5640
2002 and up to $1,476,760 in fiscal year 2003 shall be distributed	5641
to designated data acquisition sites for costs relating to	5642
processing, storing, and transferring data for the effective	5643
operation of the EMIS. These costs may include, but are not	5644
limited to, personnel, hardware, software development,	5645
communications connectivity, professional development, and support	5646
services, and to provide services to participate in the State	5647
Education Technology Plan pursuant to section 3301.07 of the	5648
Revised Code.	5649

Of the foregoing appropriation item 200-446, Education	5650
Management Information System, up to $7,763,297 in fiscal year	5651
2002 and up to $8,999,708 in fiscal year 2003 shall be distributed	5652
to school districts, community schools established under Chapter	5653
3314. of the Revised Code, education service centers, and joint	5654
vocational school districts on a per-pupil basis. From this	5655
funding, each school district or community school established	5656
under Chapter 3314. of the Revised Code with enrollment greater	5657
than 100 students and each vocational school district shall	5658
receive a minimum of $5,000 for each year of the biennium. Each	5659
school district or community school established under Chapter	5660
3314. of the Revised Code with enrollment between one and one	5661
hundred and each education service center and each county board of	5662
MR/DD that submits data through EMIS shall receive $3,000 for each	5663
year of the biennium. This money shall be used for costs	5664
associated with the development and operation of local automated	5665
record-based information systems that provide data as required by	5666
the education management information system, and facilitate local	5667
district, school, and classroom management activities.	5668

GED TESTING/ADULT HIGH SCHOOL

5669

The foregoing appropriation item 200-447, GED Testing/Adult	5670
High School, shall be used to provide General Educational	5671
Development (GED) testing at no cost to applicants, pursuant to	5672
rules adopted by the State Board of Education. The Department of	5673
Education shall reimburse school districts and community schools,	5674
created in accordance with Chapter 3314. of the Revised Code, for	5675
a portion of the costs incurred in providing summer instructional	5676
or intervention services to students who have not graduated due to	5677
their inability to pass one or more parts of the state's ninth	5678
grade proficiency test. School districts shall also provide such	5679
services to students who are residents of the district pursuant to	5680
section 3313.64 of the Revised Code, but who are enrolled in	5681
chartered, nonpublic schools. The services shall be provided in	5682
the public school, in nonpublic schools, in public centers, or in	5683
mobile units located on or off the nonpublic school premises. No	5684
school district shall provide summer instructional or intervention	5685
services to nonpublic school students as authorized by this	5686
section unless such services are available to students attending	5687
the public schools within the district. No school district shall	5688
provide services for use in religious courses, devotional	5689
exercises, religious training, or any other religious activity.	5690
Chartered, nonpublic schools shall pay for any unreimbursed costs	5691
incurred by school districts for providing summer costs incurred	5692
by school districts for providing summer instruction or	5693
intervention services to students enrolled in chartered, nonpublic	5694
schools. School districts may provide these services to students	5695
directly or contract with postsecondary or nonprofit	5696
community-based institutions in providing instruction. The	5697
appropriation also shall be used for state reimbursement to	5698
school districts for adult high school continuing education	5699
programs pursuant to section 3313.531 of the Revised Code or for	5700
costs associated with awarding adult high school diplomas under	5701
section 3313.611 of the Revised Code.	5702

COMMUNITY SCHOOLS

5703

Of the foregoing appropriation item 200-455, Community	5704
Schools, up to $100,000 in each fiscal year may be used by the	5705
Lucas County Educational Service Center to pay for additional	5706
services provided to community schools, subject to the reporting	5707
by the service center of actual expenses incurred to the	5708
Department of Education. Up to $1,628,935 in fiscal year 2002 and	5709
up to $1,724,517 in fiscal year 2003 may be used by the Office of	5710
School Options in the Department of Education for additional	5711
services and responsibilities under section 3314.11 of the Revised	5712
Code.	5713

The remaining appropriation may be used by the Department of	5714
Education and the Lucas County Educational Service Center to make	5715
grants of up to $50,000 to each proposing group with a preliminary	5716
agreement obtained under division (C)(2) of section 3314.02 of the	5717
Revised Code in order to defray planning and initial start-up	5718
costs. In the first year of operation of a community school, the	5719
Department of Education and the Lucas County Educational Service	5720
Center may make a grant of no more than $100,000 to the governing	5721
authority of the school to partially defray additional start-up	5722
costs. The amount of the grant shall be based on a thorough	5723
examination of the needs of the community school. The Department	5724
of Education and the Lucas County Educational Service Center shall	5725
not utilize moneys received under this section for any other	5726
purpose other than those specified under this section. The	5727
department shall allocate an amount to the Lucas County	5728
Educational Service Center for grants to schools in the Lucas	5729
County area under this paragraph.	5730

A community school awarded start-up grants from appropriation	5731
item 200-613, Public Charter Schools (Fund 3T4), shall not be	5732
eligible for grants under this section.	5733

Section 4.09.  SCHOOL FINANCE EQUITY

5734

The foregoing appropriation item 200-500, School Finance	5735
Equity, shall be distributed to school districts in fiscal year	5736
2002 based on the formula specified in section 3317.0213 of the	5737
Revised Code.	5738

Section 4.10.  BASE COST FUNDING

5739

Of the foregoing appropriation item 200-501, Base Cost	5740
Funding, up to $425,000 shall be expended in each year of the	5741
biennium for court payments pursuant to section 2151.357 of the	5742
Revised Code; an amount shall be available each year of the	5743
biennium for the cost of the reappraisal guarantee pursuant to	5744
section 3317.04 of the Revised Code; an amount shall be available	5745
in each year of the biennium to fund up to 225 full-time	5746
equivalent approved GRADS teacher grants pursuant to division (R)	5747
of section 3317.024 of the Revised Code; an amount shall be	5748
available in each year of the biennium to make payments to school	5749
districts pursuant to division (A)(2) of section 3317.022 of the	5750
Revised Code; and up to $15,000,000 in each year of the biennium	5751
shall be reserved for payments pursuant to sections 3317.026,	5752
3317.027, and 3317.028 of the Revised Code except that the	5753
Controlling Board may increase the $15,000,000 amount if presented	5754
with such a request from the Department of Education. Of the	5755
foregoing appropriation item 200-501, Base Cost Funding, up to	5756
$14,000,000 shall be used in each fiscal year to provide	5757
additional state aid to school districts for special education	5758
students pursuant to division (C)(4) of section 3317.022 of the	5759
Revised Code; up to $2,000,000 in each year of the biennium shall	5760
be reserved for Youth Services tuition payments pursuant to	5761
section 3317.024 of the Revised Code; and up to $52,000,000 in	5762
each fiscal year shall be reserved to fund the state reimbursement	5763
of educational service centers pursuant to section 3317.11 of the	5764
Revised Code.	5765

Of the foregoing appropriation item 200-501, Base Cost	5766
Funding, up to $10,000,000 in fiscal year 2003 shall be expended	5767
by the Department of Education to provide temporary transitional	5768
aid to school districts with an exceptionally high dependence on	5769
inventory generated tangible personal property tax revenues.	5770
Distribution of these funds shall be based on criteria and a	5771
formula developed by the Office of Budget and Management and the	5772
Department of Taxation.	5773

Of the foregoing appropriation item 200-501, Base Cost	5774
Funding, up to $1,000,000 in each fiscal year shall be used by the	5775
Department of Education for a pilot program to pay for educational	5776
services for youth who have been assigned by a juvenile court or	5777
other authorized agency to any of the facilities described in	5778
division (A) of the section titled "Private Treatment Facility	5779
Pilot Project."	5780

The remaining portion of appropriation item 200-501, Base	5781
Cost Funding, shall be expended for the public schools of city,	5782
local, exempted village, and joint vocational school districts,	5783
including base cost funding, special education weight funding,	5784
special education speech service enhancement funding, vocational	5785
education weight funding, vocational education associated service	5786
funding, guarantee funding, and teacher training and experience	5787
funding pursuant to sections 3317.022, 3317.023, 3317.0212, and	5788
3317.16 of the Revised Code.	5789

Section 4.11.  PUPIL TRANSPORTATION

5790

Of the foregoing appropriation item 200-502, Pupil	5791
Transportation, up to $800,000 in fiscal year 2002 and up to	5792
$822,400 in fiscal year 2003 may be used by the Department of	5793
Education for training prospective and experienced school bus	5794
drivers in accordance with training programs prescribed by the	5795
department; an amount shall be available in each year of the	5796
biennium to be used for special education transportation	5797
reimbursements. The reimbursement rate in each year shall be	5798
based on the rate defined in division (D) of section 3317.022 of	5799
the Revised Code. The remainder of appropriation item 200-502,	5800
Pupil Transportation, shall be used for the state reimbursement of	5801
public school districts' costs in transporting pupils to and from	5802
the school they attend in accordance with the district's policy,	5803
State Board of Education standards, and the Revised Code.	5804

BUS PURCHASE ALLOWANCE

5805

The foregoing appropriation item 200-503, Bus Purchase	5806
Allowance, shall be distributed to school districts and	5807
educational service centers pursuant to rules adopted under	5808
section 3317.07 of the Revised Code. Up to 25 per cent of the	5809
amount appropriated may be used to reimburse school districts and	5810
educational service centers for the purchase of buses to transport	5811
handicapped and nonpublic school students.	5812

SCHOOL LUNCH

5813

The foregoing appropriation item 200-505, School Lunch Match,	5814
shall be used to provide matching funds to obtain federal funds	5815
for the school lunch program.	5816

Section 4.12.  ADULT LITERACY EDUCATION

5817

The foregoing appropriation item 200-509, Adult Literacy	5818
Education, shall be used to support adult basic and literacy	5819
education instructional programs and the State Literacy Resource	5820
Center Program.	5821

Of the foregoing appropriation item 200-509, Adult Literacy	5822
Education, up to $543,150 in fiscal year 2002 and up to $554,013	5823
in fiscal year 2003 shall be used for the support and operation of	5824
the State Literacy Resource Center.	5825

The remainder shall be used to continue to satisfy the state	5826
match and maintenance of effort requirements for the support and	5827
operation of the Department of Education-administered	5828
instructional grant program for adult basic and literacy education	5829
in accordance with the department's state plan for adult basic and	5830
literacy education as approved by the State Board of Education and	5831
the Secretary of the United States Department of Education.	5832

AUXILIARY SERVICES

5833

The foregoing appropriation item 200-511, Auxiliary Services,	5834
shall be used by the State Board of Education for the purpose of	5835
implementing section 3317.06 of the Revised Code. Of the	5836
appropriation, up to $1,250,000 in fiscal year 2002 and up to	5837
$1,500,000 in fiscal year 2003 may be used for payment of the	5838
Post-Secondary Enrollment Options Program for nonpublic students	5839
pursuant to section 3365.10 of the Revised Code.	5840

STUDENT INTERVENTION SERVICES

5841

The foregoing appropriation item 200-513, Student	5842
Intervention Services, shall be used to assist districts providing	5843
the intervention services specified in section 3313.608 of the	5844
Revised Code. The Department of Education shall establish	5845
guidelines for the use and distribution of these moneys. School	5846
districts receiving funds from this appropriation shall report to	5847
the Department of Education on how funds were used.	5848

POST-SECONDARY/ADULT VOCATIONAL EDUCATION

5849

The foregoing appropriation item 200-514,	5850
Post-Secondary/Adult Vocational Education, shall be used by the	5851
State Board of Education to provide post-secondary/adult	5852
vocational education under sections 3313.52 and 3313.53 of the	5853
Revised Code.	5854

Of the foregoing appropriation item 200-514,	5855
Post-Secondary/Adult Vocational Education, up to $500,000 in each	5856
fiscal year shall be allocated for the Ohio Career Information	5857
System (OCIS) and used for the dissemination of career information	5858
data to public schools, libraries, rehabilitation centers, two-	5859
and four-year colleges and universities, and other governmental	5860
units.	5861

Of the foregoing appropriation item 200-514,	5862
Post-Secondary/Adult Vocational Education, up to $30,000 in each	5863
fiscal year shall be used for the statewide coordination of the	5864
activities of the Ohio Young Farmers.	5865

Of the foregoing appropriation item 200-514,	5866
Post-Secondary/Adult Vocational Education, $2,500,000 in each	5867
fiscal year shall be allocated as an incentive to support local	5868
EnterpriseOhio Network campus/adult workforce education center	5869
partnerships. The purpose of the partnerships is to promote and	5870
deliver coordinated, comprehensive training to local employers.	5871
Each partnership shall include a formal agreement between one or	5872
more EnterpriseOhio Network campus and one or more adult workforce	5873
education center for the delivery of training services. The	5874
Department of Education and Board of Regents shall jointly award	5875
funds to certified EnterpriseOhio Network campus/adult workforce	5876
education center partnerships to offer training grants to eligible	5877
companies. A certified EnterpriseOhio Network campus/adult	5878
workforce education center partnership is one that has been	5879
documented and approved by the Board of Regents and the	5880
Department of Education according to partnership criteria	5881
established jointly by the two agencies. An eligible company is	5882
one that meets the funding criteria of the Targeted Industries	5883
Training Grant Program. The amount set aside for the partnerships	5884
is designed to match an equal appropriation in the Board of	5885
Regents appropriation item 235-415, Jobs Challenge. The Board of	5886
Regents appropriation also serves as a partnership building	5887
incentive by allocating funds to local EnterpriseOhio Network	5888
campus/adult workforce education center partnerships.	5889

DISADVANTAGED PUPIL IMPACT AID

5890

The foregoing appropriation item 200-520, Disadvantaged Pupil	5891
Impact Aid, shall be distributed to school districts according to	5892
section 3317.029 of the Revised Code. However, no money shall be	5893
distributed for all-day kindergarten to any school district whose	5894
three-year average formula ADM exceeds 17,500 but whose DPIA index	5895
is not at least equal to 1.00 in fiscal year 2002 or 0.6 in fiscal	5896
year 2003, unless the Department of Education certifies that	5897
sufficient funds exist in this appropriation to make all other	5898
payments required by section 3317.029 of the Revised Code.	5899

The Department of Education shall pay all-day, everyday	5900
kindergarten funding to all school districts in fiscal year 2002	5901
and fiscal year 2003 that qualified for and provided the service	5902
in a preceding fiscal year pursuant to section 3317.029 of the	5903
Revised Code, regardless of changes to such districts' DPIA	5904
indexes in fiscal year 2002 and fiscal year 2003.	5905

The Department of Education shall pay to community schools an	5906
amount for all-day kindergarten if the school district in which	5907
the student is entitled to attend school is eligible but does not	5908
receive a payment for all-day kindergarten, pursuant to division	5909
(B) of section 3314.13 of the Revised Code, and the student is	5910
reported by the community school as enrolled in all-day	5911
kindergarten at the community school.	5912

Of the foregoing appropriation item 200-520, Disadvantaged	5913
Pupil Impact Aid, up to $3,200,000 in fiscal year 2002 and up to	5914
$3,300,000 in fiscal year 2003 shall be used for school breakfast	5915
programs. Of these amounts, up to $500,000 shall be used each	5916
year by the Department of Education to provide start-up grants to	5917
rural school districts and to school districts with less than	5918
1,500 ADM that start school breakfast programs. The remainder of	5919
the appropriation shall be used to: (1) partially reimburse	5920
school buildings within school districts that are required to have	5921
a school breakfast program pursuant to section 3313.813 of the	5922
Revised Code, at a rate decided by the department, for each	5923
breakfast served to any pupil enrolled in the district; (2)	5924
partially reimburse districts participating in the National School	5925
Lunch Program that have at least 20 per cent of students who are	5926
eligible for free and reduced meals according to federal	5927
standards, at a rate decided by the department; and (3) to	5928
partially reimburse districts participating in the National School	5929
Lunch Program for breakfast served to children eligible for free	5930
and reduced meals enrolled in the district, at a rate decided by	5931
the department.	5932

Of the portion of the funds distributed to the Cleveland City	5933
School District under section 3317.029 of the Revised Code	5934
calculated under division (F)(2) of that section, up to	5935
$14,903,943 in fiscal year 2002 and up to $18,066,820 in fiscal	5936
year 2003 shall be used to operate the pilot school choice program	5937
in the Cleveland City School District pursuant to sections	5938
3313.974 to 3313.979 of the Revised Code.	5939

Of the foregoing appropriation item 200-520, Disadvantaged	5940
Pupil Impact Aid, $1,000,000 in each fiscal year shall be used to	5941
support dropout recovery programs administered by the Department	5942
of Education, Jobs for Ohio's Graduates Program.	5943

Section 4.13.  GIFTED PUPIL PROGRAM

5944

The foregoing appropriation item 200-521, Gifted Pupil	5945
Program, shall be used for gifted education units not to exceed	5946
1,050 in fiscal year 2002 and 1,100 in fiscal year 2003 pursuant	5947
to division (P) of section 3317.024 and division (F) of section	5948
3317.05 of the Revised Code.	5949

Of the foregoing appropriation item 200-521, Gifted Pupil	5950
Program, up to $5,000,000 in each fiscal year of the biennium may	5951
be used as an additional supplement for identifying gifted	5952
students pursuant to Chapter 3324. of the Revised Code.	5953

Of the foregoing appropriation item 200-521, Gifted Pupil	5954
Program, the Department of Education may expend up to $1,000,000	5955
each year for the Summer Honors Institute for gifted freshman and	5956
sophomore high school students. Up to $600,000 in each fiscal	5957
year shall be used for research and demonstration projects. Up to	5958
$70,000 in each year shall be used for the Ohio Summer School for	5959
the Gifted (Martin Essex Program).	5960

Section 4.14.  EDUCATIONAL EXCELLENCE AND COMPETENCY

5961

Of the foregoing appropriation item 200-524, Educational	5962
Excellence and Competency, up to $125,000 in each year of the	5963
biennium may be used to support the Aid for College Opportunities	5964
Program.	5965

Of the foregoing appropriation item 200-524, Educational	5966
Excellence and Competency, $25,000 in each fiscal year shall be	5967
used to support the purchase of the "I Know I Can" book and	5968
supporting materials for second grade students in school districts	5969
in which at least fifty per cent of elementary school students	5970
receive free or reduced lunch.	5971

Of the foregoing appropriation item 200-524, Educational	5972
Excellence and Competency, up to $645,000 in each fiscal year	5973
shall be used to support the Columbus City District's "I Know I	5974
Can" Program.	5975

Of the foregoing appropriation item 200-524, Educational	5976
Excellence and Competency, up to $645,000 in fiscal year 2002 and	5977
up to $780,450 in fiscal year 2003 shall be used to support the	5978
Dayton-Montgomery County Scholarship Program.	5979

Of the foregoing appropriation item 200-524, Educational	5980
Excellence and Competency, up to $550,000 in fiscal year 2002 and	5981
up to $605,000 in fiscal year 2003 shall be used to support the	5982
Cleveland Scholarship Program.	5983

Of the foregoing appropriation item 200-524, Educational	5984
Excellence and Competency, up to $709,500 in fiscal year 2002 and	5985
up to $780,450 in fiscal year 2003 shall be used to support the	5986
Cincinnati Scholarship Foundation.	5987

NONPUBLIC ADMINISTRATIVE COST REIMBURSEMENT

5988

The foregoing appropriation item 200-532, Nonpublic	5989
Administrative Cost Reimbursement, shall be used by the State	5990
Board of Education for the purpose of implementing section	5991
3317.063 of the Revised Code.	5992

DESEGREGATION COSTS

5993

The foregoing appropriation item 200-534, Desegregation	5994
Costs, shall be used to pay the legal fees associated with	5995
desegregation cases brought against the state.	5996

As part of managing state desegregation costs, any board of	5997
education of a school district subject to a federal court	5998
desegregation order that requires the district board to bus	5999
students for the purpose of racial balance shall, within one year	6000
after the effective date of this section:	6001

(1) Update its plan required under Am. Sub. H.B. 298 of the	6002
119th General Assembly designed to satisfy the court so as to	6003
obtain release from the court's desegregation order; and	6004

(2) Submit an updated copy of the plan to the State Board of	6005
Education.	6006

Upon request of the district board, the State Board shall provide	6007
technical assistance to the school district board in developing a	6008
plan.	6009

Within ninety days after the date on which the plan is	6010
submitted to the State Board of Education, the district board, or	6011
the district board and the State Board of Education jointly if	6012
both are parties to the desegregation case, shall submit the plan	6013
to the court and apply for release from the court's desegregation	6014
order.	6015

Section 4.15. SPECIAL EDUCATION ENHANCEMENTS	6016

Of the foregoing appropriation item 200-540, Special	6017
Education Enhancements, up to $50,295,000 in fiscal year 2002 and	6018
up to $52,809,750 in fiscal year 2003 shall be used to fund	6019
special education and related services at county boards of mental	6020
retardation and developmental disabilities for eligible students	6021
under section 3317.20 of the Revised Code. Up to $2,500,000 shall	6022
be used in each fiscal year to fund up to 57 special education	6023
classroom and related services units at institutions.	6024

Of the foregoing appropriation item 200-540, Special	6025
Education Enhancements, up to $3,293,959 in fiscal year 2002 and	6026
up to $3,425,717 in fiscal year 2003 shall be used for home	6027
instruction for handicapped children; up to $1,500,000 in each	6028
fiscal year shall be used for parent mentoring programs; and up to	6029
$2,744,966 in fiscal year 2002 and up to $2,854,764 in fiscal year	6030
2003 may be used for school psychology interns.	6031

Of the foregoing appropriation item 200-540, Special	6032
Education Enhancements, $3,852,160 in fiscal year 2002 and up to	6033
$4,006,246 in fiscal year 2003 shall be used by the Department of	6034
Education to assist school districts in funding aides pursuant to	6035
paragraph (A)(3)(c)(i)(b) of rule 3301-51-04 of the Administrative	6036
Code.	6037

Of the foregoing appropriation item 200-540, Special	6038
Education Enhancements, $78,623,506 in each fiscal year shall be	6039
distributed by the Department of Education to county boards of	6040
mental retardation and developmental disabilities, educational	6041
service centers, and school districts for preschool special	6042
education units and preschool supervisory units in accordance with	6043
section 3317.161 of the Revised Code. The department may	6044
reimburse county boards of mental retardation and developmental	6045
disabilities, educational service centers, and school districts	6046
for related services as defined in rule 3301-31-05 of the	6047
Administrative Code, for preschool occupational and physical	6048
therapy services provided by a physical therapy assistant and	6049
certified occupational therapy assistant, and for an instructional	6050
assistant. To the greatest extent possible, the Department of	6051
Education shall allocate these units to school districts and	6052
educational service centers. The Controlling Board may approve	6053
the transfer of unallocated funds from appropriation item 200-501,	6054
Base Cost Funding, to appropriation item 200-540, Special	6055
Education Enhancements, to fully fund existing units as necessary	6056
or to fully fund additional units. The Controlling Board may	6057
approve the transfer of unallocated funds from appropriation item	6058
200-540, Special Education Enhancements, to appropriation item	6059
200-501, Base Cost Funding, to fully fund the special education	6060
weight cost funding.	6061

The Department of Education shall require school districts,	6062
educational service centers, and county MR/DD boards serving	6063
preschool children with disabilities to document child progress	6064
using a common instrument prescribed by the department and report	6065
results annually. The reporting dates and methodology shall be	6066
determined by the department.	6067

The department shall adopt rules addressing the use of	6068
screening and assessment data including, but not limited to:	6069

(1) Protection of the identity of individual children	6070
through assignment of a unique, but not personally identifiable,	6071
code;	6072

(2) Parents' rights; and

6073

(3) Use of the child data by school personnel as it relates	6074
to kindergarten entrance.	6075

Of the foregoing appropriation item 200-540, Special	6076
Education Enhancements, up to $808,081 in fiscal year 2002 and up	6077
to $832,323 in fiscal year 2003 shall be allocated to provide	6078
grants to research-based reading mentoring programs for students	6079
with disabilities in kindergarten through fourth grade. Priority	6080
shall be given to mentoring programs that have been recognized by	6081
the Education Commission of the States as promising educational	6082
practices for accelerating student achievement, are easily	6083
replicated, have strong evaluative components, and have goals	6084
aligned to the Ohio Proficiency Test. Programs may be implemented	6085
at times deemed most appropriate. Certified staff shall	6086
administer these programs and testing of participants shall be	6087
required prior to, during, and after participation in these	6088
programs. The results of the tests shall be reported to the	6089
Governor, Superintendent of Public Instruction, and General	6090
Assembly.	6091

Of the foregoing appropriation item 200-540, Special	6092
Education Enhancements, up to $86,000 in each fiscal year shall be	6093
used to conduct a collaborative pilot program to provide	6094
educational services and develop best educational practices for	6095
autistic children. The pilot program shall include, but not be	6096
limited to, the involvement of the Wood County Board of Mental	6097
Retardation and Developmental Disabilities, Wood County	6098
Educational Services Center, Children's Resource Center of Wood	6099
County, and the Family and Children First Council of Wood County.	6100

Of the foregoing appropriation item 200-540, Special	6101
Education Enhancements, up to $303,030 in fiscal year 2002 and up	6102
to $312,121 in fiscal year 2003 shall be expended to conduct a	6103
demonstration project involving language and literacy intervention	6104
teams supporting student acquisition of language and literacy	6105
skills. The demonstration project shall demonstrate improvement	6106
of language and literacy skills of at-risk learners under the	6107
instruction of certified speech language pathologists and	6108
educators. Baseline data shall be collected and comparison data	6109
for fiscal year 2002 and fiscal year 2003 shall be collected and	6110
reported to the Governor, OhioReads Council, Department of	6111
Education, and the General Assembly.	6112

Section 4.16. VOCATIONAL EDUCATION ENHANCEMENTS

6113

Of the foregoing appropriation item 200-545, Vocational	6114
Education Enhancements, up to $2,616,001 in each fiscal year shall	6115
be used to fund vocational education units at institutions. Up to	6116
$10,972,500 in each fiscal year shall be used to fund the Jobs for	6117
Ohio Graduates (JOG) program.	6118

Of the foregoing appropriation item 200-545, Vocational	6119
Education Enhancements, up to $5,250,000 in fiscal year 2002 and	6120
up to $6,000,000 in fiscal year 2003 shall be used by the	6121
Department of Education to fund competitive grants to tech prep	6122
consortia that expand the number of students enrolled in tech prep	6123
programs. These grant funds shall be used to directly support	6124
expanded tech prep programs provided to students enrolled in	6125
school districts, including joint vocational school districts, and	6126
affiliated higher education institutions.	6127

If federal funds for vocational education cannot be used for	6128
local school district leadership without being matched by state	6129
funds, then an amount as determined by the Superintendent of	6130
Public Instruction shall be made available from state funds	6131
appropriated for vocational education. If any state funds are	6132
used for this purpose, federal funds in an equal amount shall be	6133
distributed for vocational education in accordance with	6134
authorization of the state plan for vocational education for Ohio	6135
as approved by the Secretary of the United States Department of	6136
Education.	6137

Of the foregoing appropriation item 200-545, Vocational	6138
Education Enhancements, $6,451,490 in each fiscal year shall be	6139
used to enable students to develop career plans, to identify	6140
initial educational and career goals, and to develop a career	6141
passport that provides a clear understanding of the student's	6142
knowledge, skills, and credentials to present to future employers,	6143
universities, and other training institutes. The amount shall be	6144
allocated to school districts pursuant to guidelines developed by	6145
the Department of Education for programs described in section	6146
3313.607 of the Revised Code for children in the kindergarten	6147
through twelfth grades. Funds so allocated shall be used for	6148
educational materials, services, career information, curriculum	6149
development, staff development, mentorships, career exploration,	6150
and career assessment instruments as needed to develop	6151
individualized career plans and passports.	6152

Of the foregoing appropriation item 200-545, Vocational	6153
Education Enhancements, $5,707,573 in each fiscal year shall be	6154
used to provide an amount to each eligible school district for the	6155
replacement or updating of equipment essential for the instruction	6156
of students in job skills taught as part of a vocational program	6157
or programs approved for such instruction by the State Board of	6158
Education. School districts replacing or updating vocational	6159
education equipment may purchase or lease such equipment. The	6160
Department of Education shall review and approve all equipment	6161
requests and may allot appropriated funds to eligible school	6162
districts on the basis of the number of full-time equivalent	6163
workforce development teachers in all eligible districts making	6164
application for funds.	6165

The State Board of Education may adopt standards of need for	6166
equipment allocation. Pursuant to the adoption of any such	6167
standards of need by the State Board of Education, appropriated	6168
funds may be allotted to eligible districts according to such	6169
standards. Equipment funds allotted under either process shall be	6170
provided to a school district on a 30, 40, or 50 per cent of cost	6171
on the basis of a district vocational priority index rating	6172
developed by the Department of Education for all districts each	6173
year. The vocational priority index shall give preference to	6174
districts with a large percentage of disadvantaged students and	6175
shall include other socio-economic factors as determined by the	6176
State Board of Education.	6177

Of the foregoing appropriation item 200-545, Vocational	6178
Education Enhancements, up to $6,400,000 in fiscal year 2002 and	6179
up to $9,600,000 in fiscal year 2003 shall be used to support	6180
existing High Schools That Work (HSTW) sites, develop new sites,	6181
fund technical assistance, and support regional centers and middle	6182
school programs. The purpose of HSTW is to combine challenging	6183
academic courses and modern vocational and technical studies to	6184
raise the academic achievement of students. It provides intensive	6185
technical assistance, focused staff development, targeted	6186
assessment services, and ongoing communications and networking	6187
opportunities.	6188

Section 4.17.  CHARGE-OFF SUPPLEMENT

6189

The foregoing appropriation item 200-546, Charge-Off	6190
Supplement, shall be used by the Department of Education to make	6191
payments pursuant to section 3317.0216 of the Revised Code.	6192

POWER EQUALIZATION

6193

The foregoing appropriation item 200-547, Power Equalization,	6194
shall be used by the Department of Education to make payments	6195
pursuant to section 3317.0215 of the Revised Code.	6196

COUNTY MR/DD BOARDS - VEHICLE PURCHASES

6197

The foregoing appropriation item 200-552, County MR/DD Boards	6198
Vehicle Purchases, shall be used to provide financial assistance	6199
to MR/DD boards for the purchase of vehicles as permitted in	6200
section 3317.07 of the Revised Code.	6201

COUNTY MR/DD BOARDS - TRANSPORTATION

6202

The foregoing appropriation item 200-553, County MR/DD Boards	6203
Transportation Operating, shall be used to provide financial	6204
assistance for transportation operating costs as provided in	6205
division (M) of section 3317.024 of the Revised Code.	6206

EMERGENCY LOAN INTEREST SUBSIDY

6207

The foregoing appropriation item 200-558, Emergency Loan	6208
Interest Subsidy, shall be used to provide a subsidy to school	6209
districts receiving emergency school loans pursuant to section	6210
3313.484 of the Revised Code. The subsidy shall be used to pay	6211
these districts the difference between the amount of interest the	6212
district is paying on an emergency loan, and the interest that the	6213
district would have paid if the interest rate on the loan had been	6214
two per cent.	6215

Section 4.18.  OHIOREADS GRANTS

6216

Of the foregoing appropriation item 200-566, OhioReads	6217
Grants, $23,800,000 each year shall be disbursed by the OhioReads	6218
Office in the Department of Education at the direction of the	6219
OhioReads Council to provide classroom grants to public schools in	6220
city, local, and exempted village school districts; community	6221
schools; and educational service centers serving kindergarten	6222
through fourth grade students.	6223

Of the foregoing appropriation item 200-566, OhioReads	6224
Grants, $5,000,000 each year shall be disbursed by the OhioReads	6225
Office in the Department of Education at the direction of the	6226
OhioReads Council to provide community matching grants to	6227
community organizations and associations, libraries, and others	6228
for tutoring, tutor recruitment and training, and parental	6229
involvement.	6230

Grants awarded by the OhioReads Council are intended to	6231
improve reading outcomes, especially on the fourth grade reading	6232
proficiency test.	6233

SCHOOL IMPROVEMENT INCENTIVE GRANTS

6234

Of the foregoing appropriation item 200-570, School	6235
Improvement Incentive Grants, $2,000,000 in fiscal year 2002 and	6236
$2,500,000 in fiscal 2003 shall be used to provide grants of	6237
$25,000 per building for improvements in reading performance based	6238
on selection criteria developed by the OhioReads Council.	6239

Of the foregoing appropriation item 200-570, School	6240
Improvement Incentive Grants, $6,500,000 in fiscal year 2002 and	6241
$7,750,000 in fiscal year 2003 shall be used to provide grants of	6242
$25,000 each to elementary schools and $50,000 each to middle	6243
schools, junior high schools, and high schools that demonstrate	6244
significant improvement on proficiency tests, attendance rates,	6245
and graduation rates based on standards developed by the	6246
Department of Education.	6247

Of the foregoing appropriation item 200-570, School	6248
Improvement Incentive Grants, $500,000 in fiscal year 2002 and	6249
$750,000 in fiscal year 2003 shall be used to provide grants of	6250
$50,000 each to educational service centers and joint vocational	6251
school districts for exemplary programs or that demonstrate	6252
significant improvement on proficiency tests, attendance rates,	6253
and graduation rates based on standards developed by the	6254
Department of Education.	6255

Of the foregoing appropriation item 200-570, School	6256
Improvement Incentive Grants, $1,000,000 in each fiscal year shall	6257
be used to provide grants of up to $50,000 each to educational	6258
best practices award winners selected for superior performance by	6259
BEST, Building Excellent Schools for Today and the 21st Century.	6260

Any grants awarded from the foregoing appropriation item	6261
200-570, School Improvement Incentive Grants, shall be awarded to	6262
individual school buildings, educational service centers, or joint	6263
vocational school districts, as appropriate. Grant awards shall	6264
be expended for staff development, classroom equipment, materials,	6265
and books. The principal or administrator of each grantee shall	6266
decide how best to use the grant award, with input from staff	6267
members.	6268

CHARACTER EDUCATION

6269

The foregoing appropriation item 200-573, Character	6270
Education, shall be used by the Department of Education to provide	6271
matching grants of up to $50,000 each to school districts to	6272
develop pilot character education programs.	6273

SUBSTANCE ABUSE PREVENTION

6274

Of the foregoing appropriation item 200-574, Substance Abuse	6275
Prevention, up to $2,120,000 in each fiscal year shall be used for	6276
the Safe and Drug Free Schools Coordinators Program. Of the	6277
foregoing appropriation item 200-574, Substance Abuse Prevention,	6278
up to $300,000 in each fiscal year of the biennium shall be used	6279
for the Substance Abuse Prevention Student Assistance Program. The	6280
Department of Education and the Department of Alcohol and Drug	6281
Addiction Services shall jointly develop and approve a plan for	6282
the expenditure of these funds including, but not limited to, the	6283
development of position descriptions and training specifications	6284
for safe and drug free schools coordinators. Safe and drug free	6285
schools coordinators shall possess or be in the process of	6286
obtaining credentials issued by the Ohio Credentialing Board for	6287
Chemical Dependency Professionals or other credentials recognized	6288
by that board.	6289

AUXILIARY SERVICES MOBILE REPAIR

6290

Notwithstanding section 3317.064 of the Revised Code, if the	6291
unobligated cash balance is sufficient, the Treasurer of State	6292
shall transfer $1,500,000 in fiscal year 2002 within thirty days	6293
after the effective date of this section and $1,500,000 in fiscal	6294
year 2003 by August 1, 2002, from the Auxiliary Services Personnel	6295
Unemployment Compensation Fund to the Department of Education's	6296
Auxiliary Services Mobile Repair Fund (Fund 598).	6297

Section 4.19.  LOTTERY PROFITS EDUCATION FUND

6298

Appropriation item 200-612, Base Cost Funding (Fund 017),	6299
shall be used in conjunction with appropriation item 200-501, Base	6300
Cost Funding (GRF), to provide payments to school districts	6301
pursuant to Chapter 3317. of the Revised Code.	6302

Of the foregoing appropriation item 200-612, Base Cost	6303
Funding (Fund 017), $25,000,000 in each fiscal year shall be used	6304
from the funds transferred from the Unclaimed Prizes Trust Fund	6305
pursuant to the section entitled "Transfers from the Unclaimed	6306
Prizes Fund" of this act.	6307

The Department of Education, with the approval of the	6308
Director of Budget and Management, shall determine the monthly	6309
distribution schedules of appropriation item 200-501, Base Cost	6310
Funding (GRF), and appropriation item 200-612, Base Cost Funding	6311
(Fund 017). If adjustments to the monthly distribution schedule	6312
are necessary, the Department of Education shall make such	6313
adjustments with the approval of the Director of Budget and	6314
Management.	6315

The Director of Budget and Management shall transfer via	6316
intrastate transfer voucher the amount appropriated under the	6317
Lottery Profits Education Fund for appropriation item 200-682,	6318
Lease Rental Payment Reimbursement, to the General Revenue Fund on	6319
a schedule determined by the director. These funds shall support	6320
the appropriation item 230-428, Lease Rental Payments (GRF), of	6321
the School Facilities Commission.	6322

LOTTERY PROFITS TRANSFERS*

6323

On the fifteenth day of May of each fiscal year, the Director	6324
of Budget and Management shall determine if lottery profits	6325
transfers will meet the appropriation amounts from the Lottery	6326
Profits Education Fund.	6327

On or after the date specified in each fiscal year, if the	6328
director determines that lottery profits will not meet	6329
appropriations and if other funds are not available to meet the	6330
shortfall, the Superintendent of Public Instruction shall take the	6331
actions specified under the "Reallocation of Funds" section of	6332
this act.	6333

TRANSFERS FROM THE UNCLAIMED PRIZES FUND

6334

By the fifteenth day of January of fiscal year 2002 and	6335
fiscal year 2003, the Director of Budget and Management shall	6336
transfer $25,000,000 from the State Lottery Commission's Unclaimed	6337
Prizes Fund to the Lottery Profits Education Fund, to be used	6338
solely for purposes specified in the Department of Education's	6339
budget. Transfers of unclaimed prizes under this provision shall	6340
not count as lottery profits in the determination made concerning	6341
excess profits titled "Lottery Profits" under the Department of	6342
Education in this act.	6343

TEACHER CERTIFICATION AND LICENSURE

6344

The foregoing appropriation item 200-681, Teacher	6345
Certification and Licensure, shall be used by the Department of	6346
Education in each year of the biennium to administer teacher	6347
certification and licensure functions pursuant to sections	6348
3301.071, 3301.074, 3301.50, 3301.51, 3319.088, 3319.22, 3319.24	6349
to 3319.28, 3319.281, 3319.282, 3319.29, 3319.301, 3319.31, and	6350
3319.51 of the Revised Code.	6351

Section 4.20.  LOTTERY PROFITS

6352

(A) There is hereby created the Lottery Profits Education	6353
Reserve Fund (Fund 018) in the State Treasury. At no time shall	6354
the amount to the credit of the fund exceed $75,000,000.	6355
Investment earnings of the Lottery Profits Education Reserve Fund	6356
shall be credited to the fund. Notwithstanding any provisions of	6357
law to the contrary, for fiscal years 2002 and 2003, there is	6358
appropriated to the Department of Education, from the Lottery	6359
Profits Education Reserve Fund, an amount necessary to make loans	6360
authorized by sections 3317.0210, 3317.0211, and 3317.62 of the	6361
Revised Code. All loan repayments from loans made in fiscal years	6362
1992, 1993, 1994, 1995, 1996, 1997, 1998, or 1999 shall be	6363
deposited into the credit of the Lottery Profits Education Reserve	6364
Fund.	6365

(B)(1) On or before July 15, 2001, the Director of Budget	6366
and Management shall determine the amount by which lottery profit	6367
transfers received by the Lottery Profits Education Fund for	6368
fiscal year 2001 exceed $665,200,000. The amount so certified	6369
shall be distributed in fiscal year 2002 pursuant to divisions (C)	6370
and (D) of this section.	6371

(2) On or before July 15, 2002, the Director of Budget and	6372
Management shall determine the amount by which lottery profit	6373
transfers received by the Lottery Profits Education Fund for	6374
fiscal year 2002 exceed $619,722,100. The amount so determined	6375
shall be distributed in fiscal year 2003 pursuant to divisions (E)	6376
and (F) of this section.	6377

The Director of Budget and Management shall annually certify	6378
the amounts determined pursuant to this section to the Speaker of	6379
the House of Representatives and the President of the Senate.	6380

(C) Not later than June 15, 2002, the Department of	6381
Education, in consultation with the Director of Budget and	6382
Management, shall determine, based upon estimates, if a	6383
reallocation of funds as described in the section of this act	6384
titled "Reallocation of Funds" is required.	6385

If a reallocation of funds is required, then the	6386
Superintendent of Public Instruction shall request Controlling	6387
Board approval for a release of any balances in the Lottery	6388
Profits Education Fund available for the purpose of this division	6389
and pursuant to divisions (C)(1) and (2) of the section of this	6390
act titled "Reallocation of Funds." Any moneys so released are	6391
appropriated.	6392

(D) In fiscal year 2002, if the Department of Education does	6393
not determine that a reallocation of funds is necessary by the	6394
fifteenth day of June, as provided in division (C) of this	6395
section, or if there is a balance in the Lottery Profits Education	6396
Fund after the release of any amount needed to preclude a	6397
reallocation of funds as provided in division (C) of this section,	6398
the moneys in the Lottery Profits Education Fund shall be	6399
allocated as provided in this division. Any amounts so allocated	6400
are appropriated.	6401

An amount equal to five per cent of the estimated lottery	6402
profits of $665,200,000 in fiscal year 2001 or the amount	6403
remaining in the fund, whichever is the lesser amount, shall be	6404
transferred to the Lottery Profits Education Reserve Fund within	6405
the limitations specified in division (A) of this section and be	6406
reserved and shall not be available for allocation or distribution	6407
during fiscal year 2002. Any amounts exceeding $75,000,000 shall	6408
be distributed pursuant to division (G) of this section.	6409

(E) Not later than June 15, 2003, the Department of	6410
Education, in consultation with the Director of Budget and	6411
Management, shall determine, based upon estimates, if a	6412
reallocation of funds as described in the section of this act	6413
titled "Reallocation of Funds" is required.	6414

If a reallocation of funds is required, then the	6415
Superintendent of Public Instruction shall request Controlling	6416
Board approval for a release of any balances in the Lottery	6417
Profits Education Fund available for the purpose of this division	6418
and pursuant to divisions (C)(1) and (2) of the section of this	6419
act titled "Reallocation of Funds." Any moneys so released are	6420
appropriated.	6421

(F) In fiscal year 2003, if the Department of Education does	6422
not determine that a reallocation of funds is necessary by the	6423
fifteenth day of June, as provided in division (E) of this	6424
section, or if there is a balance in the Lottery Profits Education	6425
Fund after the release of any amount needed to preclude a	6426
reallocation of funds as provided in division (E) of this section,	6427
the moneys in the Lottery Profits Education Fund shall be	6428
allocated as provided in this division. Any amounts so allocated	6429
are appropriated.	6430

An amount equal to five per cent of the estimated lottery	6431
profits transfers of $619,722,100 in fiscal year 2002 or the	6432
amount remaining in the fund, whichever is the lesser amount,	6433
shall be transferred to the Lottery Profits Education Reserve Fund	6434
within the limitations specified in division (A) of this section	6435
and be reserved and shall not be available for allocation or	6436
distribution during fiscal year 2003. Any amounts exceeding	6437
$75,000,000 shall be distributed pursuant to division (G) of this	6438
section.	6439

(G) In the appropriate fiscal year, any remaining amounts	6440
after the operations required by division (D) or (F) of this	6441
section, respectively, shall be transferred to the Public School	6442
Building Fund (Fund 021) and such amount is appropriated to	6443
appropriation item CAP-622, Public School Buildings, in the School	6444
Facilities Commission.	6445

Section 4.21. PROPERTY TAX ALLOCATION	6446

The Superintendent of Public Instruction shall not request,	6447
and the Controlling Board shall not approve, the transfer of funds	6448
from appropriation item 200-901, Property Tax	6449
Allocation-Education, to any other appropriation item.	6450

SCHOOL DISTRICT SOLVENCY ASSISTANCE

6451

Of the foregoing appropriation item 200-687, School District	6452
Solvency Assistance, $12,000,000 in each fiscal year shall be	6453
allocated to the School District Shared Resource Account and	6454
$12,000,000 in each fiscal year shall be allocated to the	6455
Catastrophic Expenditures Account. These funds shall be used to	6456
provide assistance and grants to school districts to enable them	6457
to remain solvent pursuant to section 3316.20 of the Revised Code.	6458
Assistance and grants shall be subject to approval by the	6459
Controlling Board. Any required reimbursements from school	6460
districts for solvency assistance shall be made to the appropriate	6461
account in the School District Solvency Assistance Fund.	6462

Section 4.22.  PROPERTY TAX ALLOCATION - EDUCATION

6463

The appropriation item 200-901, Property Tax Allocation -	6464
Education, is appropriated to pay for the state's costs incurred	6465
due to the homestead exemption and the property tax rollback. In	6466
cooperation with the Department of Taxation, the Department of	6467
Education shall distribute these funds directly to the appropriate	6468
school districts of the state, notwithstanding sections 321.24 and	6469
323.156 of the Revised Code, which provide for payment of the	6470
homestead exemption and property tax rollback by the Tax	6471
Commissioner to the appropriate county treasurer and the	6472
subsequent redistribution of these funds to the appropriate local	6473
taxing districts by the county auditor.	6474

Appropriation item 200-906, Tangible Tax Exemption -	6475
Education is appropriated to pay for the state's costs incurred	6476
due to the tangible personal property tax exemption required by	6477
division (C)(3) of section 5709.01 of the Revised Code. In	6478
cooperation with the Department of Taxation, the Department of	6479
Education shall distribute to each county treasurer the total	6480
amount certified by the county treasurer pursuant to section	6481
319.311 of the Revised Code, for all school districts located in	6482
the county, notwithstanding the provision in section 319.311 of	6483
the Revised Code which provides for payment of the $10,000	6484
tangible personal property tax exemption by the Tax Commissioner	6485
to the appropriate county treasurer for all local taxing districts	6486
located in the county. Pursuant to division (G) of section 321.24	6487
of the Revised Code, the county auditor shall distribute the	6488
amount paid by the Department of Education among the appropriate	6489
school districts.	6490

Upon receipt of these amounts, each school district shall	6491
distribute the amount among the proper funds as if it had been	6492
paid as real or tangible personal property taxes. Payments for	6493
the costs of administration shall continue to be paid to the	6494
county treasurer and county auditor as provided for in sections	6495
319.54, 321.26, and 323.156 of the Revised Code.	6496

Any sums, in addition to the amounts specifically	6497
appropriated in appropriation items 200-901, Property Tax	6498
Allocation - Education, for the homestead exemption and the	6499
property tax rollback payments, and 200-906, Tangible Tax	6500
Exemption - Education, for the $10,000 tangible personal property	6501
tax exemption payments, which are determined to be necessary for	6502
these purposes, are appropriated.	6503

Section 4.23.  DISTRIBUTION FORMULAS*

6504

The Department of Education shall report the following to the	6505
Director of Budget and Management, the Legislative Office of	6506
Education Oversight, and the Legislative Service Commission:	6507

(A) Changes in formulas for distributing state	6508
appropriations, including administratively defined formula	6509
factors;	6510

(B) Discretionary changes in formulas for distributing	6511
federal appropriations;	6512

(C) Federally mandated changes in formulas for distributing	6513
federal appropriations.	6514

Any such changes shall be reported two weeks prior to the	6515
effective date of the change.	6516

Section 4.24.  DISTRIBUTION - SCHOOL DISTRICT SUBSIDY	6517
PAYMENTS	6518

This section shall not take effect unless the Director of	6519
Budget and Management adopts an order putting it into effect and	6520
certifies a copy of the order to the Superintendent of Public	6521
Instruction and the Controlling Board.	6522

Notwithstanding any other provision of the Revised Code, the	6523
monthly distribution of payments made to school districts and	6524
educational service centers pursuant to section 3317.01 of the	6525
Revised Code for the first six months of each fiscal year shall	6526
equal, as nearly as possible, six and two-thirds per cent of the	6527
estimate of the amounts payable for each fiscal year. The monthly	6528
distribution of payments for the last six months of each fiscal	6529
year shall equal, as nearly as possible, ten per cent of the final	6530
calculation of the amounts payable to each school district for	6531
that fiscal year.	6532

The treasurer of each school district or educational service	6533
center may accrue, in addition to the payments defined in this	6534
section, to the accounts of the calendar years that end during	6535
each fiscal year, the difference between the sum of the first six	6536
months' payments in each fiscal year and the amounts the district	6537
would have received had the payments been made in, as nearly as	6538
possible in each fiscal year, twelve equal monthly payments.	6539

Notwithstanding the limitations on the amount of borrowing	6540
and time of payment provided for in section 133.10 of the Revised	6541
Code but subject to sections 133.26 and 133.30 of the Revised	6542
Code, a board of education of a school district may at any time	6543
between July 1, 2001, and December 31, 2001, or at any time	6544
between July 1, 2002, and December 31, 2002, borrow money to pay	6545
any necessary and actual expenses of the school district during	6546
the last six months of calendar years 2001 and 2002 and in	6547
anticipation of the receipt of any portion of the payments to be	6548
received by that district in the first six months of calendar	6549
years 2002 and 2003 representing the respective amounts accrued	6550
pursuant to the preceding paragraph, and issue notes to evidence	6551
that borrowing to mature no later than the thirtieth day of June	6552
of the calendar year following the calendar year in which such	6553
amount was borrowed. The principal amount borrowed in the last	6554
six months of calendar years 2001 or 2002 under this paragraph may	6555
not exceed the entire amount accrued or to be accrued by the	6556
district treasurer in those calendar years pursuant to the	6557
preceding paragraph. The proceeds of the notes shall be used only	6558
for the purposes for which the anticipated receipts are lawfully	6559
appropriated by the board of education. No board of education	6560
shall be required to use the authority granted by this paragraph.	6561
The receipts so anticipated, and additional amounts from	6562
distributions to the districts in the first six months of calendar	6563
years 2002 and 2003 pursuant to Chapter 3317. of the Revised Code	6564
needed to pay the interest on the notes, shall be deemed	6565
appropriated by the board of education to the extent necessary for	6566
the payment of the principal of and interest on the notes at	6567
maturity, and the amounts necessary to make those monthly	6568
distributions are appropriated from the General Revenue Fund. For	6569
the purpose of better ensuring the prompt payment of principal of	6570
and interest on the notes when due, the resolution of the board of	6571
education authorizing the notes may direct that the amount of the	6572
receipts anticipated, together with those additional amounts	6573
needed to pay the interest on the borrowed amounts, shall be	6574
deposited and segregated, in trust or otherwise, to the extent, at	6575
the time or times, and in the manner provided in that resolution.	6576
The borrowing authorized by this section does not constitute debt	6577
for purposes of section 133.04 of the Revised Code. School	6578
districts shall be reimbursed by the state for all necessary and	6579
actual costs to districts arising from this provision, including,	6580
without limitation, the interest paid on the notes while the notes	6581
are outstanding. The Department of Education shall adopt rules	6582
that are not inconsistent with this section for school district	6583
eligibility and application for reimbursement of such costs.	6584
Payments of these costs shall be made out of any anticipated	6585
balances in appropriation items distributed under Chapter 3317. of	6586
the Revised Code. The department shall submit all requests for	6587
reimbursement under these provisions to the Controlling Board for	6588
approval.	6589

During the last six months of each calendar year, instead of	6590
deducting the amount the Superintendent of Public Instruction	6591
would otherwise deduct from a school district's or educational	6592
service center's state aid payments in accordance with the	6593
certifications made for such year pursuant to sections 3307.56 and	6594
3309.51 of the Revised Code, the superintendent shall deduct an	6595
amount equal to forty per cent of the amount so certified. The	6596
secretaries of the retirement systems shall compute the	6597
certifications for the ensuing year under such sections as if the	6598
entire amounts certified as due in the calendar year ending the	6599
current fiscal year, but not deducted pursuant to this paragraph,	6600
had been deducted and paid in that calendar year. During the	6601
first six months of the ensuing calendar year, in addition to	6602
deducting the amounts the Superintendent of Public Instruction is	6603
required to deduct under such sections during such period, the	6604
superintendent shall deduct from a district's or educational	6605
service center's state aid payments an additional amount equal to	6606
the amount that was certified as due from the district for the	6607
calendar year that ends during the fiscal year, but that was not	6608
deducted because of this paragraph. The superintendent's	6609
certifications to the Director of Budget and Management during the	6610
first six months of the calendar year shall reflect such	6611
additional deduction.	6612

Section 4.25.  REALLOCATION OF FUNDS

6613

(A) As used in this section:

6614

(1) "Basic aid" means the amount calculated for the school	6615
district received for the fiscal year under divisions (A) and (C)	6616
of section 3317.022 and sections 3317.023, 3317.025 to 3317.029,	6617
3317.0212, and 3317.0213 of the Revised Code and the amount	6618
computed for a joint vocational school district under section	6619
3317.16 of the Revised Code.	6620

(2) "Nonbasic aid" means the amount computed for a school	6621
district for fiscal year 2002 or fiscal year 2003 under Chapter	6622
3317. of the Revised Code and this act, excluding the district's	6623
basic aid and the amount computed under such chapter and acts for	6624
educational service centers, MR/DD boards, and institutions.	6625

(B) If in either fiscal year of the biennium the Governor	6626
issues an order under section 126.05 of the Revised Code to reduce	6627
expenditures and incurred obligations and the order requires the	6628
superintendent to reduce such state education payments, or if	6629
lottery profits transfers are insufficient to meet the amounts	6630
appropriated from the Lottery Profits Education Fund for base cost	6631
funding, and if other funds are not sufficient to offset the	6632
shortfall, the superintendent shall reduce nonbasic aid payments	6633
so that the total amount expended in the fiscal year will not	6634
exceed the amount available for expenditure pursuant to the	6635
Governor's order. Subject to Controlling Board approval, the	6636
superintendent shall reallocate appropriations not yet expended	6637
from one program to another.	6638

(C)(1) If further reductions in nonbasic aid are necessary	6639
following the reallocations implemented pursuant to division (B)	6640
of this section, the superintendent shall request the Controlling	6641
Board to approve the use of the money appropriated by this	6642
division. The superintendent shall include with the	6643
superintendent's request a report listing the amount of reductions	6644
that each school district will receive if the request is not	6645
approved, and also the amount of the reduction, if any, that will	6646
still be required if the use of the money appropriated by this	6647
section is approved.	6648

(2) In accordance with division (C)(1) of this section,	6649
there is appropriated to the Department of Education from the	6650
unobligated balance remaining in the Lottery Profits Education	6651
Fund at the end of fiscal year 2001 the lesser of: the	6652
unobligated balance in the fund, or the amount needed to preclude	6653
a reallocation pursuant to this section. The money appropriated	6654
by this division may be spent or distributed by the department	6655
only with the approval of the Controlling Board.	6656

(D) If reductions in nonbasic aid are still necessary	6657
following the actions taken pursuant to divisions (B) and (C) of	6658
this section, the superintendent shall determine by what	6659
percentage expenditures for nonbasic aid must be reduced for the	6660
remainder of the fiscal year to make the total amount distributed	6661
for the year equal the amount appropriated or available for	6662
distribution. The superintendent shall reduce by that percentage	6663
the amount to be paid in nonbasic aid to each city, exempted	6664
village, local, and joint vocational school district, to each	6665
educational service center, to each county board of mental	6666
retardation and developmental disabilities, and to each	6667
institution providing special education programs under section	6668
3323.091 of the Revised Code for the remainder of the fiscal year.	6669

Section 4.26.  EDUCATIONAL SERVICE CENTERS FUNDING

6670

Notwithstanding division (B) of section 3317.11 of the	6671
Revised Code, no funds shall be provided to an educational service	6672
center in either fiscal year for any pupils of a city or exempted	6673
village school district unless an agreement to provide services	6674
under section 3313.843 of the Revised Code was entered into by	6675
January 1, 1997, except that funds shall be provided to an	6676
educational service center for any pupils of a city school	6677
district if the agreement to provide services was entered into	6678
within one year of the date upon which such district changed from	6679
a local school district to a city school district. If	6680
insufficient funds are appropriated in fiscal year 2002 or fiscal	6681
year 2003 for the purposes of division (B) of section 3317.11 of	6682
the Revised Code, the department shall first distribute to each	6683
educational service center $37 per pupil in its service center	6684
ADM, as defined in that section. The remaining funds in each	6685
fiscal year shall be distributed proportionally, on a per-student	6686
basis, to each educational service center for its client ADM, as	6687
defined in that section, that is attributable to each city and	6688
exempted village school district that had entered into an	6689
agreement with an educational service center for that fiscal year	6690
under section 3313.843 of the Revised Code by January 1, 1997.	6691

Section 4.27. * For the school year commencing July 1, 2001,	6692
or the school year commencing July 1, 2002, or both, the	6693
Superintendent of Public Instruction may waive for the board of	6694
education of any school district the ratio of teachers to pupils	6695
in kindergarten through fourth grade required under paragraph	6696
(A)(3) of rule 3301-35-03 of the Administrative Code if the	6697
following conditions apply:	6698

(A) The board of education requests the waiver.

6699

(B) After the Department of Education conducts an on-site	6700
evaluation of the district related to meeting the required ratio,	6701
the board of education demonstrates to the satisfaction of the	6702
Superintendent of Public Instruction that providing the facilities	6703
necessary to meet the required ratio during the district's regular	6704
school hours with pupils in attendance would impose an extreme	6705
hardship on the district.	6706

(C) The board of education provides assurances that are	6707
satisfactory to the Superintendent of Public Instruction that the	6708
board will act in good faith to meet the required ratio as soon as	6709
possible.	6710

Section 4.28.  PRIVATE TREATMENT FACILITY PILOT PROJECT

6711

(A) As used in this section:

6712

(1) The following are "participating residential treatment	6713
centers":	6714

(a) Private residential treatment facilities that have	6715
entered into a contract with the Department of Youth Services to	6716
provide services to children placed at the facility by the	6717
department and which, in fiscal year 2002 or 2003 or both, the	6718
department pays through appropriation item 470-401, Care and	6719
Custody;	6720

(b) Abraxas, in Shelby;

6721

(c) Paint Creek, in Bainbridge;

6722

(d) Act One, in Akron;

6723

(e) Friars Club, in Cincinnati.

6724

(2) "Education program" means an elementary or secondary	6725
education program or a special education program and related	6726
services.	6727

(3) "Served child" means any child receiving an education	6728
program pursuant to division (B) of this section.	6729

(4) "School district responsible for tuition" means a city,	6730
exempted village, or local school district that, if tuition	6731
payment for a child by a school district is required under law	6732
that existed in fiscal year 1998, is the school district required	6733
to pay that tuition.	6734

(5) "Residential child" means a child who resides in a	6735
participating residential treatment center and who is receiving an	6736
educational program under division (B) of this section.	6737

(B) A youth who is a resident of the state and has been	6738
assigned by a juvenile court or other authorized agency to a	6739
residential treatment facility specified in division (A) of this	6740
section shall be enrolled in an approved educational program	6741
located in or near the facility. Approval of the educational	6742
program shall be contingent upon compliance with the criteria	6743
established for such programs by the Department of Education. The	6744
educational program shall be provided by a school district or	6745
educational service center, or by the residential facility itself.	6746
Maximum flexibility shall be given to the residential treatment	6747
facility to determine the provider. In the event that a voluntary	6748
agreement cannot be reached and the residential facility does not	6749
choose to provide the educational program, the educational service	6750
center in the county in which the facility is located shall	6751
provide the educational program at the treatment center to	6752
children under twenty-two years of age residing in the treatment	6753
center.	6754

(C) Any school district responsible for tuition for a	6755
residential child shall, notwithstanding any conflicting provision	6756
of the Revised Code regarding tuition payment, pay tuition for the	6757
child for fiscal years 2002 and 2003 to the education program	6758
provider and in the amount specified in this division. If there	6759
is no school district responsible for tuition for a residential	6760
child and if the participating residential treatment center to	6761
which the child is assigned is located in the city, exempted	6762
village, or local school district that, if the child were not a	6763
resident of that treatment center, would be the school district	6764
where the child is entitled to attend school under sections	6765
3313.64 and 3313.65 of the Revised Code, that school district	6766
shall, notwithstanding any conflicting provision of the Revised	6767
Code, pay tuition for the child for fiscal years 2002 and 2003	6768
under this division unless that school district is providing the	6769
educational program to the child under division (B) of this	6770
section.	6771

A tuition payment under this division shall be made to the	6772
school district, educational service center, or residential	6773
treatment facility providing the educational program to the child.	6774

The amount of tuition paid shall be:

6775

(1) The amount of tuition determined for the district under	6776
division (A) of section 3317.08 of the Revised Code;	6777

(2) In addition, for any student receiving special education	6778
pursuant to an individualized education program as defined in	6779
section 3323.01 of the Revised Code, a payment for excess costs.	6780
This payment shall equal the actual cost to the school district,	6781
educational service center, or residential treatment facility of	6782
providing special education and related services to the student	6783
pursuant to the student's individualized education program, minus	6784
the tuition paid for the child under division (C)(1) of this	6785
section.	6786

A school district paying tuition under this division shall	6787
not include the child for whom tuition is paid in the district's	6788
average daily membership certified under division (A) of section	6789
3317.03 of the Revised Code.	6790

(D) In each of fiscal years 2002 and 2003, the Department of	6791
Education shall reimburse, from appropriations made for the	6792
purpose, a school district, educational service center, or	6793
residential treatment facility, whichever is providing the	6794
service, that has demonstrated that it is in compliance with the	6795
funding criteria for each served child for whom a school district	6796
must pay tuition under division (C) of this section. The amount	6797
of the reimbursement in either fiscal year shall be the formula	6798
amount specified in section 3317.022 of the Revised Code, except	6799
that the department shall proportionately reduce this	6800
reimbursement if sufficient funds are not available to pay this	6801
amount to all qualified providers.	6802

(E) Funds provided to a school district, educational service	6803
center, or residential treatment facility under this section shall	6804
be used to supplement, not supplant, funds from other public	6805
sources for which the school district, service center, or	6806
residential treatment facility is entitled or eligible.	6807

(F) The Department of Education shall track the utilization	6808
of funds provided to school districts, educational service	6809
centers, and residential treatment facilities under this section	6810
and monitor the effect of the funding on the educational programs	6811
they provide in participating residential treatment facilities.	6812
The department shall monitor the programs for educational	6813
accountability.	6814

Section 4.29.  SCHOOL DISTRICT PARTICIPATION IN NATIONAL	6815
ASSESSMENT OF EDUCATION PROGRESS	6816

The General Assembly intends for the Superintendent of Public	6817
Instruction to provide for school district participation in the	6818
administration of the National Assessment of Education Progress in	6819
fiscal years 2002 and 2003 in accordance with section 3301.27 of	6820
the Revised Code.	6821

Section 4.30.  Notwithstanding Chapter 3318. of the Revised	6822
Code, for purposes of complying with the local share and repayment	6823
tax requirements of section 3318.05 of the Revised Code, any	6824
school district given conditional approval for classroom	6825
facilities assistance under section 3318.04 of the Revised Code as	6826
of January 1, 1993, that approved a replacement permanent	6827
improvement levy at the November 5, 1996, election shall be	6828
permitted to use the proceeds of such levy, and any notes issued	6829
or to be issued in anticipation thereof, as available funds,	6830
within the meaning specified under section 3318.03 of the Revised	6831
Code, to pay the local share of the cost of the approved classroom	6832
facilities project. Notwithstanding the local share as previously	6833
determined for purposes of the conditional approval of the	6834
project, the local share shall be equal to the amount of proceeds	6835
to be obtained by the district under such replacement permanent	6836
improvement levy. Such school districts shall not be required to	6837
obtain approval of either of the propositions described in	6838
division (A) or (B) of section 3318.051 of the Revised Code. The	6839
agreement required under section 3318.08 of the Revised Code for	6840
the construction and sale of the project shall include provisions	6841
for the transfer of the proceeds of the replacement permanent	6842
improvement levy, and any notes issued in anticipation thereof, to	6843
the school district's project construction account, and for the	6844
levy of the replacement permanent improvement levy.	6845

Section 4.31.  The Superintendent of Public Instruction shall	6846
contract with an independent research entity to evaluate the pilot	6847
project approved pursuant to section 3313.975 of the Revised Code.	6848
The evaluation shall study the impact of scholarships on student	6849
attendance, conduct, commitment to education, and standardized	6850
test scores; parental involvement; the school district's ability	6851
to provide services to district students; and the availability of	6852
alternative educational opportunities. The evaluation shall also	6853
study the economic impact of scholarships on the school district.	6854

Section 4.32.  Notwithstanding division (C)(1) of section	6855
3313.975 of the Revised Code, in addition to students in	6856
kindergarten through third grade, initial scholarships may be	6857
awarded to fourth, fifth, sixth, seventh, and eighth grade	6858
students in fiscal year 2002 and in fiscal year 2003.	6859

Section 4.33.  (A) As used in this section, "pilot project	6860
area" means the school districts included in the territory of the	6861
former community school pilot project established by former	6862
Section 50.52 of Am. Sub. H.B. 215 of the 122nd General Assembly.	6863

(B) Any teacher or nonteaching employee of a school district	6864
in the pilot project area who, on the effective date of this	6865
section, is taking a leave of absence from the district pursuant	6866
to a policy adopted under former Section 50.52.13 of that act to	6867
work at a community school established under the pilot project and	6868
located in another school district may continue the leave under	6869
the terms of that policy and former section. Upon termination of	6870
the leave, the district shall return the teacher or nonteaching	6871
employee to a position, salary, and level of seniority as required	6872
by that former section.	6873

Section 4.34. As required by Section 50.52.2 of Am. Sub. H.B.	6874
215 of the 122nd General Assembly, as subsequently amended, the	6875
Legislative Office of Education Oversight shall complete, by June	6876
1, 2003, its final report on community schools with	6877
recommendations as to the future of community schools in Ohio.	6878
Copies of the report shall be delivered to the President of the	6879
Senate and the Speaker of the House of Representatives.	6880

Section 5.  HEF HIGHER EDUCATIONAL FACILITY COMMISSION	6881

Agency Fund Group

6882

6886

Section 6.  LOT STATE LOTTERY COMMISSION	6887

State Lottery Fund Group

6888

OPERATING EXPENSES

6899

The foregoing appropriation items include all amounts	6900
necessary for the purchase and printing of tickets, consultant	6901
services, and advertising. The Controlling Board may, at the	6902
request of the State Lottery Commission, authorize additional	6903
appropriations for operating expenses of the State Lottery	6904
Commission from the State Lottery Fund up to a maximum of 15 per	6905
cent of anticipated total revenue accruing from the sale of	6906
lottery tickets.	6907

PRIZES, BONUSES, AND COMMISSIONS

6908

Any amounts, in addition to the amounts appropriated in	6909
appropriation item 950-601, Prizes, Bonuses, and Commissions, that	6910
are determined by the Director of the State Lottery Commission to	6911
be necessary to fund prizes, bonuses, and commissions are	6912
appropriated.	6913

ANNUITY PRIZES

6914

With the approval of the Office of Budget and Management, the	6915
State Lottery Commission shall transfer cash from the State	6916
Lottery Fund Group (Fund 044) to the Deferred Prizes Trust Fund	6917
(Fund 871) in an amount sufficient to fund deferred prizes. The	6918
Treasurer of State, from time to time, shall credit the Deferred	6919
Prizes Trust Fund (Fund 871) the pro rata share of interest earned	6920
by the Treasurer of State on invested balances.	6921

Any amounts, in addition to the amounts appropriated in	6922
appropriation item 950-602, Annuity Prizes, that are determined by	6923
the Director of the State Lottery Commission to be necessary to	6924
fund deferred prizes and interest earnings are appropriated.	6925

Section 7.  BOR BOARD OF REGENTS

6926

General Revenue Fund

6927

General Services Fund Group

6998

Federal Special Revenue Fund Group

7003

State Special Revenue Fund Group

7013

7021

Section 7.01.  STATE SHARE OF INSTRUCTION

7022

As soon as practicable during each fiscal year of the	7023
2001-2003 biennium in accordance with instructions of the Board of	7024
Regents, each state-assisted institution of higher education shall	7025
report its actual enrollment to the Board of Regents.	7026

The Board of Regents shall establish procedures required by	7027
the system of formulas set out below and for the assignment of	7028
individual institutions to categories described in the formulas.	7029
The system of formulas establishes the manner in which aggregate	7030
expenditure requirements shall be determined for each of the three	7031
components of institutional operations. In addition to other	7032
adjustments and calculations described below, the subsidy	7033
entitlement of an institution shall be determined by subtracting	7034
from the institution's aggregate expenditure requirements income	7035
to be derived from the local contributions assumed in calculating	7036
the subsidy entitlements. The local contributions for purposes of	7037
determining subsidy support shall not limit the authority of the	7038
individual boards of trustees to establish fee levels.	7039

The General Studies and Technical models shall be adjusted by	7040
the Board of Regents so that the share of state subsidy earned by	7041
those models is not altered by changes in the overall local share.	7042
A lower-division fee differential shall be used to maintain the	7043
relationship that would have occurred between these models and the	7044
baccalaureate models had an assumed share of thirty-seven per cent	7045
been funded.	7046

In defining the number of full-time equivalent (FTE) students	7047
for state subsidy purposes, the Board of Regents shall exclude	7048
all undergraduate students who are not residents of Ohio, except	7049
those charged in-state fees in accordance with reciprocity	7050
agreements made pursuant to section 3333.17 or employer contracts	7051
entered into pursuant to section 3333.32 of the Revised Code.	7052

(A) AGGREGATE EXPENDITURE PER FULL-TIME EQUIVALENT STUDENT

7053

(1) INSTRUCTION AND SUPPORT SERVICES

7054

(2) STUDENT SERVICES

7070

For this purpose, FTE counts shall be weighted to reflect	7071
differences among institutions in the numbers of students enrolled	7072
on a part-time basis.	7073

(B) PLANT OPERATION AND MAINTENANCE (POM)

7089

(1) DETERMINATION OF THE SQUARE-FOOT-BASED POM SUBSIDY

7090

Space undergoing renovation shall be funded at the rate	7091
allowed for storage space.	7092

In the calculation of square footage for each campus, square	7093
footage shall be weighted to reflect differences in space	7094
utilization.	7095

The space inventories for each campus shall be those	7096
determined in the fiscal year 1999 instructional subsidy, adjusted	7097
for changes attributable to the construction or renovation of	7098
facilities for which state appropriations were made or local	7099
commitments were made prior to January 1, 1995.	7100

Only 50 per cent of the space permanently taken out of	7101
operation in fiscal year 2002 or fiscal year 2003 that is not	7102
otherwise replaced by a campus shall be deleted from the fiscal	7103
year 1997 inventory.	7104

The square-foot-based plant operation and maintenance subsidy	7105
for each campus shall be determined as follows:	7106

(a) For each standard room type category shown below, the	7107
subsidy-eligible net assignable square feet (NASF) for each campus	7108
shall be multiplied by the following rates, and the amounts summed	7109
for each campus to determine the total gross square-foot-based POM	7110
expenditure requirement:	7111

(b) The total gross square-foot POM expenditure requirement	7120
shall be allocated to models in proportion to FTE enrollments as	7121
reported in enrollment data for all models except Doctoral I and	7122
Doctoral II.	7123

(c) The amounts allocated to models in division (B)(1)(b) of	7124
this section shall be multiplied by the ratio of subsidy-eligible	7125
FTE students to total FTE students reported in each model, and the	7126
amounts summed for all models. To this total amount shall be	7127
added an amount to support roads and grounds expenditures to	7128
produce the total square-foot-based POM subsidy.	7129

(2) DETERMINATION OF THE ACTIVITY-BASED POM SUBSIDY

7130

(a) The number of subsidy-eligible FTE students in each	7131
model shall be multiplied by the following rates for each campus	7132
for each fiscal year.	7133

(b) The sum of the products for each campus determined in	7149
division (B)(2)(a) of this section for all models except Doctoral	7150
I and Doctoral II for each fiscal year shall be weighted by a	7151
factor to reflect sponsored research activity and job	7152
training-related public services expenditures to determine the	7153
total activity-based POM subsidy.	7154

(C) CALCULATION OF CORE SUBSIDY ENTITLEMENTS AND ADJUSTMENTS

7155

(1) CALCULATION OF CORE SUBSIDY ENTITLEMENTS

7156

The calculation of the core subsidy entitlement shall consist	7157
of the following components:	7158

(a) For each campus and for each fiscal year, the core	7159
subsidy entitlement shall be determined by multiplying the amounts	7160
listed above in divisions (A)(1) and (2) and (B)(2) of this	7161
section less assumed local contributions, by (i) average	7162
subsidy-eligible FTEs for the two-year period ending in the prior	7163
year for all models except Doctoral I and Doctoral II; and (ii)	7164
average subsidy-eligible FTEs for the five-year period ending in	7165
the prior year for all models except Doctoral I and Doctoral II.	7166

(b) In calculating the core subsidy entitlements for Medical	7167
II models only, the Board of Regents shall use the following count	7168
of FTE students in place of the two-year average and five-year	7169
average of subsidy-eligible students:	7170

(i) For those medical schools whose current year enrollment	7171
is below the base enrollment, the Medical II FTE enrollment shall	7172
equal: 65 per cent of the base enrollment plus 35 per cent of the	7173
current year enrollment, where the base enrollment is:	7174

(ii) For those medical schools whose current year enrollment	7181
is equal to or greater than the base enrollment, the Medical II	7182
FTE enrollment shall equal the current enrollment.	7183

(c) For all FTE-based subsidy calculations involving	7184
annualized FTE data, FTE-based allowances shall be converted from	7185
annualized to all-terms rates to ensure equity and consistency of	7186
subsidy determination.	7187

(d) The Board of Regents shall compute the sum of the two	7188
calculations listed in division (C)(1)(a) of this section and use	7189
the greater sum as the core subsidy entitlement.	7190

The POM subsidy for each campus shall equal the greater of	7191
the square-foot-based subsidy or the activity-based POM subsidy	7192
component of the core subsidy entitlement.	7193

(e) The state share of instruction provided for doctoral	7194
students shall be based on a fixed percentage of the total	7195
appropriation. In fiscal year 2002, not more than 10.34 per cent	7196
of the total state share of instruction shall be reserved to	7197
implement the recommendations of the Graduate Funding Commission.	7198
In fiscal year 2003, not more than 10.25 per cent of the total	7199
state share of instruction shall be reserved for the same purpose.	7200
It is the intent of the General Assembly that the doctoral reserve	7201
be reduced 0.25 percentage points each year thereafter until no	7202
more than 10.0 per cent of the total state share of instruction	7203
is reserved to implement the recommendations of the Graduate	7204
Funding Commission. The Board of Regents shall reallocate 4 per	7205
cent in fiscal year 2002 and 5 per cent in fiscal year 2003 of the	7206
reserve among the state-assisted universities on the basis of a	7207
quality review as specified in the recommendations of the Graduate	7208
Funding Commission.	7209

The amount so reserved shall be allocated to universities in	7210
proportion to their share of the total number of Doctoral I	7211
equivalent FTEs as calculated on an institutional basis using the	7212
greater of the two-year or five-year FTEs for the period fiscal	7213
year 1994 through fiscal year 1998 with annualized FTEs for fiscal	7214
years 1994 through 1997 and all-term FTEs for fiscal year 1998 as	7215
adjusted to reflect the effects of doctoral review. For the	7216
purposes of this calculation, Doctoral I equivalent FTEs shall	7217
equal the sum of Doctoral I FTEs plus 1.5 times the sum of	7218
Doctoral II FTEs.	7219

(2) ANNUAL HOLD HARMLESS PROVISION

7220

In addition to and after the other adjustment noted above, in	7221
fiscal year 2002 each campus shall have its state share of	7222
instruction adjusted to the extent necessary to provide an amount	7223
that is not less than 100 per cent of the state share of	7224
instruction received by the campus in fiscal year 2001. In fiscal	7225
year 2003, each campus shall have its state share of instruction	7226
adjusted to the extent necessary to provide an amount that is not	7227
less than 100 per cent of the state share of instruction received	7228
by the campus in fiscal year 2002.	7229

(3) CAPITAL COMPONENT DEDUCTION

7230

After all other adjustments have been made, instructional	7231
subsidy earnings shall be reduced for each campus by the amount,	7232
if any, by which debt service charged in Am. H.B. No. 748 of the	7233
121st General Assembly, Am. Sub. H.B. No. 850 of the 122nd General	7234
Assembly, and Am. H.B. No. 640 of the 123rd General Assembly for	7235
that campus exceeds that campus's capital component earnings.	7236

(D) REDUCTIONS IN EARNINGS

7237

If the total state share of instruction earnings in any	7238
fiscal year exceed the total appropriations available for such	7239
purposes, the Board of Regents shall proportionately reduce the	7240
state share of instruction earnings for all campuses by a uniform	7241
percentage so that the systemwide sum equals available	7242
appropriations.	7243

(E) EXCEPTIONAL CIRCUMSTANCES

7244

Adjustments may be made to the state share of instruction	7245
payments and other subsidies distributed by the Board of Regents	7246
to state-assisted colleges and universities for exceptional	7247
circumstances. No adjustments for exceptional circumstances may	7248
be made without the recommendation of the Chancellor and the	7249
approval of the Controlling Board.	7250

DISTRIBUTION OF STATE SHARE OF INSTRUCTION

7251

The state share of instruction payments to the institutions	7252
shall be in substantially equal monthly amounts during the fiscal	7253
year, unless otherwise determined by the Director of Budget and	7254
Management pursuant to section 126.09 of the Revised Code.	7255
Payments during the first six months of the fiscal year shall be	7256
based upon the state share of instruction appropriation estimates	7257
made for the various institutions of higher education according to	7258
Board of Regents enrollment estimates. Payments during the last	7259
six months of the fiscal year shall be distributed after approval	7260
of the Controlling Board upon the request of the Board of	7261
Regents.	7262

LAW SCHOOL SUBSIDY

7263

The state share of instruction to state-supported	7264
universities for students enrolled in law schools in fiscal year	7265
2002 and fiscal year 2003 shall be calculated by using the number	7266
of subsidy-eligible FTE law school students funded by state	7267
subsidy in fiscal year 1995 or the actual number of	7268
subsidy-eligible FTE law school students at the institution in the	7269
fiscal year, whichever is less.	7270

Section 7.02. MISSION-BASED CORE FUNDING FOR HIGHER EDUCATION	7271

JOBS CHALLENGE

7272

Funds appropriated to appropriation item 235-415, Jobs	7273
Challenge, shall be distributed to state-assisted community and	7274
technical colleges, regional campuses of state-assisted	7275
universities, and other organizationally distinct and identifiable	7276
member campuses of the EnterpriseOhio Network in support of job of	7277
noncredit job-related training. In fiscal years 2002 and 2003,	7278
$2,836,620 and $2,893,352, respectively, shall be distributed as	7279
performance grants to EnterpriseOhio Network campuses based upon	7280
each campus's documented performance according to criteria	7281
established by the Board of Regents for increasing training and	7282
related services to businesses, industries, and public sector	7283
organizations.	7284

Of the foregoing appropriation item 235-415, Jobs Challenge,	7285
$4,198,694 in each fiscal year shall be allocated to the Targeted	7286
Industries Training Grant Program to attract, develop, and retain	7287
business and industry strategically important to the state's	7288
economy.	7289

Also, in fiscal years 2002 and 2003, $4,012,812 and	7290
$5,299,255, respectively, shall be allocated to the Non-credit	7291
Incentives Grant Program to reward two-year campuses for	7292
increasing the amount of non-credit skill upgrading services	7293
provided to Ohio employers and employees. The funds shall be	7294
distributed to campuses in proportion to each campus's share of	7295
noncredit job-related training revenues received by all campuses	7296
for the previous fiscal year. It is the intent of the General	7297
Assembly that this workforce development incentive component of	7298
the Jobs Challenge Program reward campus noncredit job-related	7299
training efforts in the same manner that the Research Challenge	7300
Program rewards campuses for their ability to obtain sponsored	7301
research revenues.	7302

Of the foregoing appropriation item 235-415, Jobs Challenge,	7303
$2,500,000 in each fiscal year shall be allocated as an incentive	7304
to support local EnterpriseOhio Network Campus/Adult Workforce	7305
Education Center Partnerships. The purpose of the partnerships is	7306
to promote and deliver coordinated, comprehensive training to	7307
local employers. Each partnership shall include a formal	7308
agreement between one or more EnterpriseOhio Network campus and	7309
one or more adult workforce education center for the delivery of	7310
training services. The Department of Education and Board of	7311
Regents shall jointly award funds to certified EnterpriseOhio	7312
campus/adult workforce education center partnerships to offer	7313
training grants to eligible companies. A certified EnterpriseOhio	7314
Network/adult workforce education center partnership is one that	7315
has been documented and approved by the Board of Regents and the	7316
Department of Education according to partnership criteria	7317
established jointly by those agencies. An eligible company is one	7318
that meets the funding criteria of the Targeted Industries	7319
Training Grant Program. The amount set aside for the partnerships	7320
is designed to match an equal appropriation in the Department of	7321
Education's appropriation item 200-514, Post-Secondary/Adult	7322
Vocational Education. The Department of Education's appropriation	7323
also serves as a partnership-building incentive by allocating	7324
funds to local EnterpriseOhio Network campus/adult workforce	7325
education center partnerships.	7326

ACCESS CHALLENGE

7327

In each fiscal year, the foregoing appropriation item	7328
235-418, Access Challenge, shall be distributed to Ohio's	7329
state-assisted access colleges and universities to freeze	7330
instructional and general fees for resident lower-division	7331
undergraduates at their fiscal year 2001 levels. For the	7332
purposes of this allocation, "access campuses" includes	7333
state-assisted community colleges, state community colleges,	7334
technical colleges, Shawnee State University, Central State	7335
University, Cleveland State University, the regional campuses of	7336
state-assisted universities, and, where they are organizationally	7337
distinct and identifiable, the community-technical colleges	7338
located at the University of Cincinnati, Youngstown State	7339
University, and the University of Akron.	7340

In each year of the biennium, Access Challenge appropriations	7341
shall be allocated to eligible campuses according to the following	7342
methodology:	7343

(A) Each campus shall receive an amount equal to four per	7344
cent of the product of its subsidy-eligible lower-division FTE	7345
student enrollments for the prior fiscal year multiplied by the	7346
unweighted average of in-state undergraduate instructional and	7347
general fees for community colleges, state community colleges,	7348
technical colleges, and regional campuses in fiscal year 2001.	7349

(B) All remaining appropriations shall be allocated to each	7350
campus proportionate to its share of the sum of FTEs used in the	7351
distribution of access funds in the prior fiscal year updated with	7352
the most recent FTE data available.	7353

For the purposes of this calculation, Cleveland State	7354
University's share of full-time equivalent (FTE) subsidy-eligible	7355
General Studies students shall equal its total FTE	7356
subsidy-eligible General Studies students multiplied by the ratio	7357
of the sum of FTE subsidy-eligible General Studies students	7358
enrolled in the community-technical colleges at the University of	7359
Toledo, the University of Cincinnati, Youngstown State University,	7360
and the University of Akron divided by the sum of FTE	7361
subsidy-eligible General Studies students enrolled at those same	7362
four universities. However, Cleveland State University shall not	7363
receive less in each year of the 2001-2003 biennium than the	7364
amount received in fiscal year 2001.	7365

For the purposes of this calculation, Youngstown State	7366
University's enrollments shall be adjusted by the ratio of the sum	7367
of subsidy-eligible lower-division FTE student enrollments	7368
eligible for access funding to the sum of subsidy-eligible General	7369
Studies FTE student enrollments at Central State University and	7370
Shawnee State University, and for the following universities and	7371
their regional campuses: Ohio State University, Ohio University,	7372
Kent State University, Bowling Green State University, Miami	7373
University, the University of Cincinnati, the University of Akron,	7374
and Wright State University.	7375

The tuition restraint required by these appropriations shall	7376
apply to resident lower-division undergraduate students enrolled	7377
at university regional campuses. Notwithstanding any other	7378
provision of law to the contrary, the annual increase in in-state	7379
undergraduate instructional and general fees for upper-division	7380
undergraduates enrolled at university regional campuses shall not	7381
exceed the maximum rate of increase authorized by law for in-state	7382
resident undergraduates enrolled at university main campuses.	7383

For Central State University and Shawnee State University,	7384
the methodology shall consider the combined effects of Access	7385
Challenge appropriations and each institution's supplement when	7386
determining each institution's tuition restraint requirements in	7387
each year of the biennium. No such determination shall be made	7388
without the approval of the Office of Budget and Management. The	7389
fee restraint provisions shall not apply to campuses that do not	7390
receive an increase in Access Challenge allocations from one	7391
fiscal year to the next. The tuition restraint or reduction	7392
percentage shall not apply or be applied in the case of a	7393
particular access campus, if and to the extent such application	7394
would impair compliance with institutional covenants related to	7395
payment of debt charges on its bonds or notes issued prior to July	7396
1, 2001, or on bonds or notes for which a pledge of fees, or new	7397
agreement for adjustment of fees, was approved prior to that date	7398
by the Board of Regents as referred to in this act.	7399

SUCCESS CHALLENGE

7400

The foregoing appropriation item 235-420, Success Challenge,	7401
shall be used by the Board of Regents to promote degree	7402
completion by students enrolled at a main campus of a	7403
state-assisted university.	7404

In each fiscal year, two-thirds of the appropriations shall	7405
be distributed to state-assisted university main campuses in	7406
proportion to each campus's share of the total statewide	7407
bachelor's degrees granted by university main campuses to	7408
"at-risk" students. In fiscal years 2002 and 2003, an "at-risk"	7409
student means any undergraduate student who has received an Ohio	7410
Instructional Grant during the past ten years. An eligible	7411
institution shall not receive its share of this distribution until	7412
it has submitted a plan that addresses how the subsidy will be	7413
used to better serve at-risk students and increase their	7414
likelihood of successful completion of a bachelor's degree	7415
program. The Board of Regents shall disseminate to all	7416
state-supported institutions of higher education all such plans	7417
submitted by institutions that received Success Challenge funds.	7418

In each fiscal year, one-third of the appropriations shall be	7419
distributed to university main campuses in proportion to each	7420
campus's share of the total bachelor's degrees granted by	7421
university main campuses to undergraduate students who completed	7422
their bachelor's degrees in a "timely manner" in the previous	7423
fiscal year. For the purposes of this section, "timely manner"	7424
means the normal time it would take for a full-time degree-seeking	7425
undergraduate student to complete the student's degree. Generally,	7426
for such students pursuing a bachelor's degree, "timely manner"	7427
means four years. Exceptions to this general rule shall be	7428
permitted for students enrolled in programs specifically designed	7429
to be completed in a longer time period. The Board of Regents	7430
shall collect base-line data beginning with the 1998-99 academic	7431
year to assess the timely completion statistics by university main	7432
campuses.	7433

EMINENT SCHOLARS PROGRAM

7434

The foregoing appropriation item 235-451, Eminent Scholars,	7435
shall be used by the Board of Regents to continue the Ohio	7436
Eminent Scholars Program, the purpose of which is to invest	7437
educational resources to address problems that are of vital	7438
statewide significance while fostering the growth in eminence of	7439
Ohio's academic programs. Endowment grants of $750,000 to state	7440
colleges and universities and nonprofit Ohio institutions of	7441
higher education holding certificates of authorization issued	7442
under section 1713.02 of the Revised Code to match endowment gifts	7443
from nonstate sources may be made in accordance with a plan	7444
established by the Board of Regents. Matching gifts in science	7445
and technology programs shall be $750,000, and in all other	7446
program areas, $500,000. The grants shall have as their purpose	7447
attracting and sustaining in Ohio scholar-leaders of national or	7448
international prominence who will assist the state in one of the	7449
following three areas: (1) improving the state's economic	7450
development; (2) strengthening the state's system of K-12	7451
education; or (3) improving public health and safety. Such	7452
scholar-leaders shall, among their duties, share broadly the	7453
benefits and knowledge unique to their field of scholarship to the	7454
betterment of Ohio and its people.	7455

RESEARCH CHALLENGE

7456

The foregoing appropriation item 235-454, Research Challenge,	7457
shall be used to enhance the basic research capabilities of public	7458
colleges and universities and accredited Ohio institutions of	7459
higher education holding certificates of authorization issued	7460
pursuant to section 1713.02 of the Revised Code, in order to	7461
strengthen academic research for pursuing Ohio's economic	7462
redevelopment goals. The Board of Regents, in consultation with	7463
the colleges and universities, shall administer the Research	7464
Challenge Program and utilize a means of matching, on a fractional	7465
basis, external funds attracted in the previous year by	7466
institutions for basic research. The program may include	7467
incentives for increasing the amount of external research funds	7468
coming to eligible institutions and for focusing research efforts	7469
upon critical state needs. Colleges and universities shall submit	7470
for review and approval to the Board of Regents plans for the	7471
institutional allocation of state dollars received through the	7472
program. The institutional plans shall provide the rationale for	7473
the allocation in terms of the strategic targeting of funds for	7474
academic and state purposes, for strengthening research programs,	7475
and for increasing the amount of external research funds, and	7476
shall include an evaluation process to provide results of the	7477
increased support.	7478

The Board of Regents shall submit a biennial report of	7479
progress to the General Assembly.	7480

COMPUTER SCIENCE GRADUATE EDUCATION

7481

The foregoing appropriation item 235-554, Computer Science	7482
Graduate Education, shall be used by the Board of Regents to	7483
support improvements in graduate programs in computer science at	7484
state-assisted universities. In each fiscal year, up to $200,000	7485
may be used to support collaborative efforts in graduate education	7486
in this program area.	7487

Section 7.03.  HIGHER EDUCATION - BOARD OF TRUSTEES

7488

Funds appropriated for instructional subsidies at colleges	7489
and universities may be used to provide such branch or other	7490
off-campus undergraduate courses of study and such master's degree	7491
courses of study as may be approved by the Board of Regents.	7492

In providing instructional and other services to students,	7493
boards of trustees of state-assisted institutions of higher	7494
education shall supplement state subsidies by income from charges	7495
to students. Each board shall establish the fees to be charged to	7496
all students, including an instructional fee for educational and	7497
associated operational support of the institution and a general	7498
fee for noninstructional services, including locally financed	7499
student services facilities used for the benefit of enrolled	7500
students. The instructional fee and the general fee shall	7501
encompass all charges for services assessed uniformly to all	7502
enrolled students. Each board may also establish special purpose	7503
fees, service charges, and fines as required; such special purpose	7504
fees and service charges shall be for services or benefits	7505
furnished individual students or specific categories of students	7506
and shall not be applied uniformly to all enrolled students. A	7507
tuition surcharge shall be paid by all students who are not	7508
residents of Ohio.	7509

Boards of trustees of individual state-assisted universities	7510
shall limit combined university main campus in-state undergraduate	7511
instructional and general fee increases for an academic year over	7512
the amounts charged in the prior academic year to no more than six	7513
per cent. The boards of trustees of individual state-assisted	7514
universities shall not authorize combined university main campus	7515
in-state undergraduate instructional and general fee increases of	7516
more than four per cent in a single vote. These fee increase	7517
limitations apply even if an institutional board of trustees has,	7518
prior to the effective date of this section, voted to assess a	7519
higher fee for the 2001-2002 academic year. These limitations	7520
shall not apply to increases required to comply with institutional	7521
covenants related to their obligations or to meet unfunded legal	7522
mandates or legally binding obligations incurred or commitments	7523
made prior to the effective date of this section with respect to	7524
which the institution had identified such fee increases as the	7525
source of funds. Any increase required by such covenants and any	7526
such mandates, obligations, or commitments shall be reported by	7527
the Board of Regents to the Controlling Board. These limitations	7528
may also be modified by the Board of Regents, with the approval	7529
of the Controlling Board, to respond to exceptional circumstances	7530
as identified by the Board of Regents.	7531

The board of trustees of a state-assisted institution of	7532
higher education shall not authorize a waiver or nonpayment of	7533
instructional fees or general fees for any particular student or	7534
any class of students other than waivers specifically authorized	7535
by law or approved by the Chancellor. This prohibition is not	7536
intended to limit the authority of boards of trustees to provide	7537
for payments to students for services rendered the institution,	7538
nor to prohibit the budgeting of income for staff benefits or for	7539
student assistance in the form of payment of such instructional	7540
and general fees.	7541

Each state-assisted institution of higher education in its	7542
statement of charges to students shall separately identify the	7543
instructional fee, the general fee, the tuition charge, and the	7544
tuition surcharge. Fee charges to students for instruction shall	7545
not be considered to be a price of service but shall be considered	7546
to be an integral part of the state government financing program	7547
in support of higher educational opportunity for students.	7548

In providing the appropriations in support of instructional	7549
services at state-assisted institutions of higher education and	7550
the appropriations for other instruction it is the intent of the	7551
General Assembly that faculty members shall devote a proper and	7552
judicious part of their work week to the actual instruction of	7553
students. Total class credit hours of production per quarter per	7554
full-time faculty member is expected to meet the standards set	7555
forth in the budget data submitted by the Board of Regents.	7556

The authority of government vested by law in the boards of	7557
trustees of state-assisted institutions of higher education shall	7558
in fact be exercised by those boards. Boards of trustees may	7559
consult extensively with appropriate student and faculty groups.	7560
Administrative decisions about the utilization of available	7561
resources, about organizational structure, about disciplinary	7562
procedure, about the operation and staffing of all auxiliary	7563
facilities, and about administrative personnel shall be the	7564
exclusive prerogative of boards of trustees. Any delegation of	7565
authority by a board of trustees in other areas of responsibility	7566
shall be accompanied by appropriate standards of guidance	7567
concerning expected objectives in the exercise of such delegated	7568
authority and shall be accompanied by periodic review of the	7569
exercise of this delegated authority to the end that the public	7570
interest, in contrast to any institutional or special interest,	7571
shall be served.	7572

OSU LIMITED TUITION CAP EXEMPTION

7573

In addition to the six per cent main campus in-state	7574
undergraduate instructional and general fee increase limit	7575
established in this section, the board of trustees of The Ohio	7576
State University may authorize an additional university main	7577
campus in-state undergraduate instructional and general fee	7578
increase for academic years 2002 and 2003 over the amounts charged	7579
in the prior academic years of no more than a $4 per credit hour	7580
per quarter increase, or $144 for a full-time student for an	7581
academic year.	7582

The amount of this increase above the six per cent main	7583
campus in-state undergraduate instructional and graduate fee	7584
increase limit established in this section shall be used	7585
exclusively to enhance undergraduate education. Areas of	7586
enhancement shall include increased financial aid for	7587
undergraduate students and improvements in academic programming	7588
and support services for undergraduate students pursuant to a	7589
plan approved by the board of trustees of The Ohio State	7590
University. The Ohio State University shall ensure that the	7591
additional increases above the six per cent main campus in-state	7592
undergraduate instructional and graduate fee do not limit access	7593
to academically qualified financial aid-eligible students.	7594

By December 30, 2002, The Ohio State University shall provide	7595
a report to the Board of Regents that indicates how the additional	7596
funds have been utilized to enhance undergraduate education during	7597
that period.	7598

Section 7.04.  MEDICAL SCHOOL SUBSIDIES

7599

The foregoing appropriation item 235-515, CWRU School of	7600
Medicine, shall be disbursed to Case Western Reserve University	7601
through the Board of Regents in accordance with agreements	7602
entered into as provided for by section 3333.10 of the Revised	7603
Code, provided that the state support per full-time medical	7604
student shall not exceed that provided to full-time medical	7605
students at state universities.	7606

The foregoing appropriation items 235-536, Ohio State	7607
University Clinical Teaching; 235-537, University of Cincinnati	7608
Clinical Teaching; 235-538, Medical College of Ohio at Toledo	7609
Clinical Teaching; 235-539, Wright State University Clinical	7610
Teaching; 235-540, Ohio University Clinical Teaching; and 235-541,	7611
Northeastern Ohio Universities College of Medicine Clinical	7612
Teaching, shall be distributed through the Board of Regents.	7613

The foregoing appropriation item 235-572, Ohio State	7614
University Clinic Support, shall be distributed through the Board	7615
of Regents to The Ohio State University for support of dental and	7616
veterinary medicine clinics.	7617

The Board of Regents shall develop plans consistent with	7618
existing criteria and guidelines as may be required for the	7619
distribution of appropriation items 235-519, Family Practice,	7620
235-525, Geriatric Medicine, and 235-526, Primary Care	7621
Residencies.	7622

Of the foregoing appropriation item 235-539, Wright State	7623
University Clinical Teaching, $160,000 in each fiscal year shall	7624
be for the use of Wright State University's Ellis Institute for	7625
Clinical Teaching Studies to operate the clinical facility to	7626
serve the Greater Dayton area.	7627

PERFORMANCE STANDARDS FOR MEDICAL EDUCATION

7628

The Board of Regents, in consultation with the	7629
state-assisted medical colleges, shall develop performance	7630
standards for medical education. Special emphasis in the	7631
standards shall be placed on attempting to ensure that at least 50	7632
per cent of the aggregate number of students enrolled in	7633
state-assisted medical colleges continue to enter residency as	7634
primary care physicians. Primary care physicians are general	7635
family practice physicians, general internal medicine	7636
practitioners, and general pediatric care physicians. The Board	7637
of Regents shall monitor medical school performance in relation	7638
to their plans for reaching the 50 per cent systemwide standard	7639
for primary care physicians.	7640

The foregoing appropriation item 235-526, Primary Care	7641
Residencies, shall be distributed in each fiscal year of the	7642
biennium, based on whether the institution has submitted and	7643
gained approval for a plan. If the institution does not have an	7644
approved plan, it shall receive five per cent less funding per	7645
student than it would have received from its annual allocation.	7646
The remaining funding shall be distributed among those	7647
institutions that meet or exceed their targets.	7648

AREA HEALTH EDUCATION CENTERS

7649

The foregoing appropriation item 235-474, AHEC Program	7650
Support, shall be used by the Board of Regents to support the	7651
medical school regional area health education centers' educational	7652
programs for the continued support of medical and other health	7653
professions education and for support of the Area Health Education	7654
Center Program.	7655

Of the foregoing appropriation item 235-474, AHEC Program	7656
Support, $200,000 in each fiscal year shall be disbursed to the	7657
Ohio University College of Osteopathic Medicine for the	7658
establishment of a mobile health care unit to serve the	7659
southeastern area of the state. Of the foregoing appropriation	7660
item 235-474, AHEC Program Support, $150,000 in each fiscal year	7661
shall be used to support the Ohio Valley Community Health	7662
Information Network (OVCHIN) project.	7663

Section 7.05. MIDWEST HIGHER EDUCATION COMPACT	7664

The foregoing appropriation item 235-408, Midwest Higher	7665
Education Compact, shall be distributed by the Board of Regents	7666
pursuant to section 3333.40 of the Revised Code.	7667

COLLEGE READINESS INITIATIVES

7668

Appropriation item 235-404, College Readiness Initiatives,	7669
shall be used by the Board of Regents to support programs	7670
designed to improve the ability of high school students to enroll	7671
and succeed in higher education.	7672

MATHEMATICS AND SCIENCE TEACHING IMPROVEMENT

7673

Appropriation item 235-403, Math/Science Teaching	7674
Improvement, shall be used by the Board of Regents to support	7675
programs designed to raise the quality of mathematics and science	7676
teaching in primary and secondary education.	7677

OHIO LEARNING NETWORK

7678

Appropriation item 235-417, Ohio Learning Network, shall be	7679
used by the Board of Regents to support the continued	7680
implementation of the Ohio Learning Network, a statewide	7681
electronic collaborative effort designed to promote degree	7682
completion of students, workforce training of employees, and	7683
professional development through the use of advanced	7684
telecommunications and distance education initiatives.	7685

DISPLACED HOMEMAKERS

7686

Out of the foregoing appropriation item 235-509, Displaced	7687
Homemakers, the Board of Regents shall continue funding pilot	7688
projects authorized in Am. Sub. H.B. No. 291 of the 115th General	7689
Assembly for the following centers: Cuyahoga Community College,	7690
University of Toledo, Southern State Community College, and Stark	7691
Technical College. The amount of $30,000 in each fiscal year	7692
shall be used for the Baldwin-Wallace Single Parents Reaching Out	7693
for Unassisted Tomorrows program.	7694

OHIO AEROSPACE INSTITUTE

7695

The foregoing appropriation item 235-527, Ohio Aerospace	7696
Institute, shall be distributed by the Board of Regents under	7697
section 3333.042 of the Revised Code.	7698

PRODUCTIVITY IMPROVEMENT CHALLENGE

7699

The foregoing appropriation item 235-455, Productivity	7700
Improvement Challenge, shall be allocated by the Board of Regents	7701
to continue increasing the capabilities of the EnterpriseOhio	7702
Network to meet the ongoing training needs of Ohio employers.	7703
Funds shall support multicampus collaboration, best practice	7704
dissemination, and capacity building projects. The Regents	7705
Advisory Committee for Workforce Development, in its advisory	7706
role, shall advise in the development of plans and activities.	7707

Of the foregoing appropriation item 235-455, Productivity	7708
Improvement Challenge, $208,000 in each fiscal year shall be used	7709
by the Dayton Business/Sinclair College Jobs Profiling Program.	7710

ACCESS IMPROVEMENT PROJECTS

7711

The foregoing appropriation item 235-477, Access Improvement	7712
Projects, shall be used by the Board of Regents to develop	7713
innovative statewide strategies to increase student access and	7714
retention for specialized populations, and to provide for pilot	7715
projects that will contribute to improving access to higher	7716
education by specialized populations. The funds may be used for	7717
projects that improve access for nonpublic secondary students.	7718

Of the foregoing appropriation item 235-477, Access	7719
Improvement Projects, $740,000 in each fiscal year shall be	7720
distributed to the Appalachian Center for Higher Education at	7721
Shawnee State University. The board of directors of the center	7722
shall consist of the presidents of Shawnee State University, Ohio	7723
University, Belmont Technical College, Hocking Technical College,	7724
Jefferson Technical College, Muskingum Area Technical College, Rio	7725
Grande Community College, Southern State Community College, and	7726
Washington State Community College; the dean of either the Salem	7727
or East Liverpool regional campus of Kent State University, as	7728
designated by the president of Kent State University; a	7729
representative of the Board of Regents designated by the	7730
Chancellor; and other members as may be determined by the Board of	7731
Regents.	7732

OHIO SUPERCOMPUTER CENTER

7733

The foregoing appropriation item 235-510, Ohio Supercomputer	7734
Center, shall be used by the Board of Regents to support the	7735
operation of the center, located at The Ohio State University, as	7736
a statewide resource available to Ohio research universities both	7737
public and private. It is also intended that the center be made	7738
accessible to private industry as appropriate. Policies of the	7739
center shall be established by a governance committee,	7740
representative of Ohio's research universities and private	7741
industry, to be appointed by the Chancellor of the Board of	7742
Regents and established for this purpose.	7743

OHIO ACADEMIC RESOURCES NETWORK (OARNET)

7744

The foregoing appropriation item 235-556, Ohio Academic	7745
Resource Network, shall be used to support the operations of the	7746
Ohio Academic Resource Network, which shall include support for	7747
Ohio's state-assisted colleges and universities in maintaining and	7748
enhancing network connections.	7749

Section 7.06. PLEDGE OF FEES*

7750

Any new pledge of fees, or new agreement for adjustment of	7751
fees, made in the 2001-2003 biennium to secure bonds or notes of a	7752
state-assisted institution of higher education for a project for	7753
which bonds or notes were not outstanding on the effective date of	7754
this section shall be effective only after approval by the Board	7755
of Regents, unless approved in a previous biennium.	7756

HIGHER EDUCATION GENERAL OBLIGATION DEBT SERVICE

7757

The foregoing appropriation item 235-909, Higher Education	7758
General Obligation Debt Service, shall be used to pay all debt	7759
service and financing costs at the times they are required to be	7760
made pursuant to sections 151.01 and 151.04 of the Revised Code	7761
during the period from July 1, 2001, to June 30, 2003. The Office	7762
of the Sinking Fund or the Director of Budget and Management shall	7763
effectuate the required payments by an interstate transfer	7764
voucher.	7765

LEASE-RENTAL PAYMENTS

7766

The foregoing appropriation item 235-401, Lease-Rental	7767
Payments, shall be used to meet all payments at the times they are	7768
required to be made during the period from July 1, 2001, to June	7769
30, 2003, by the Board of Regents pursuant to leases and	7770
agreements made under section 154.21 of the Revised Code, but	7771
limited to the aggregate amount of $563,969,000. Nothing in this	7772
act shall be deemed to contravene the obligation of the state to	7773
pay, without necessity for further appropriation, from the sources	7774
pledged thereto, the bond service charges on obligations issued	7775
pursuant to section 154.21 of the Revised Code.	7776

Section 7.07. OHIO INSTRUCTIONAL GRANTS

7777

Notwithstanding section 3333.12 of the Revised Code, in lieu	7778
of the tables in that section, instructional grants for all	7779
full-time students shall be made for fiscal year 2002 using the	7780
tables under this heading.	7781

The tables under this heading prescribe the maximum grant	7782
amounts covering two semesters, three quarters, or a comparable	7783
portion of one academic year. The grant amount for a full-time	7784
student enrolled in an eligible institution for a semester or	7785
quarter in addition to the portion of the academic year covered by	7786
a grant determined under these tables shall be a percentage of the	7787
maximum prescribed in the applicable table. The maximum grant for	7788
a fourth quarter shall be one-third of the maximum amount	7789
prescribed under the table. The maximum grant for a third semester	7790
shall be one-half of the maximum amount prescribed under the	7791
table.	7792

For a full-time student who is a dependent and enrolled in a	7793
nonprofit educational institution that is not a state-assisted	7794
institution and that has a certificate of authorization issued	7795
pursuant to Chapter 1713. of the Revised Code, the amount of the	7796
instructional grant for two semesters, three quarters, or a	7797
comparable portion of the academic year shall be determined in	7798
accordance with the following table:	7799

Private Institution

7800

Table of Grants

7801

For a full-time student who is financially independent and	7822
enrolled in a nonprofit educational institution that is not a	7823
state-assisted institution and that has a certificate of	7824
authorization issued pursuant to Chapter 1713. of the Revised	7825
Code, the amount of the instructional grant for two semesters,	7826
three quarters, or a comparable portion of the academic year shall	7827
be determined in accordance with the following table:	7828

Private Institution

7829

Table of Grants

7830

For a full-time student who is a dependent and enrolled in an	7852
educational institution that holds a certificate of registration	7853
from the state board of proprietary school registration, the	7854
amount of the instructional grant for two semesters, three	7855
quarters, or a comparable portion of the academic year shall be	7856
determined in accordance with the following table:	7857

Proprietary Institution

7858

Table of Grants

7859

For a full-time student who is financially independent and	7880
enrolled in an educational institution that holds a certificate of	7881
registration from the state board of proprietary school	7882
registration, the amount of the instructional grant for two	7883
semesters, three quarters, or a comparable portion of the academic	7884
year shall be determined in accordance with the following table:	7885

Proprietary Institution

7886

Table of Grants

7887

For a full-time student who is a dependent and enrolled in a	7909
state-assisted educational institution, the amount of the	7910
instructional grant for two semesters, three quarters, or a	7911
comparable portion of the academic year shall be determined in	7912
accordance with the following table:	7913

Public Institution

7914

Table of Grants

7915

For a full-time student who is financially independent and	7936
enrolled in a state-assisted educational institution, the amount	7937
of the instructional grant for two semesters, three quarters, or a	7938
comparable portion of the academic year shall be determined in	7939
accordance with the following table:	7940

Public Institution

7941

Table of Grants

7942

The foregoing appropriation item 235-503, Ohio Instructional	7963
Grants, shall be used to make the payments authorized by division	7964
(C) of section 3333.26 of the Revised Code to the institutions	7965
described in that division. In addition, this appropriation shall	7966
be used to reimburse the institutions described in division (B) of	7967
section 3333.26 of the Revised Code for the cost of the waivers	7968
required by that division.	7969

WAR ORPHANS SCHOLARSHIPS

7970

The foregoing appropriation item 235-504, War Orphans	7971
Scholarships, shall be used to reimburse state-assisted	7972
institutions of higher education for waivers of instructional fees	7973
and general fees provided by them, to provide grants to	7974
institutions that have received a certificate of authorization	7975
from the Ohio Board of Regents under Chapter 1713. of the Revised	7976
Code, in accordance with the provisions of section 5910.04 of the	7977
Revised Code, and to fund additional scholarship benefits provided	7978
by section 5910.032 of the Revised Code.	7979

PART-TIME STUDENT INSTRUCTIONAL GRANTS

7980

The foregoing appropriation item 235-549, Part-time Student	7981
Instructional Grants, shall be used to support a grant program for	7982
part-time undergraduate students who are Ohio residents and who	7983
are enrolled in degree granting programs.	7984

Eligibility for participation in the program shall include	7985
degree granting educational institutions that hold a certificate	7986
of registration from the State Board of Proprietary School	7987
Registration, and nonprofit institutions that have a certificate	7988
of authorization issued pursuant to Chapter 1713. of the Revised	7989
Code, as well as state-assisted colleges and universities. Grants	7990
shall be given to students on the basis of need, as determined by	7991
the college, which, in making these determinations, shall give	7992
special consideration to single-parent heads-of-household and	7993
displaced homemakers who enroll in an educational degree program	7994
that prepares the individual for a career. In determining need,	7995
the college also shall consider the availability of educational	7996
assistance from a student's employer. It is the intent of the	7997
General Assembly that these grants not supplant such assistance.	7998

Section 7.08. CAPITOL SCHOLARSHIP PROGRAMS	7999

The foregoing appropriation item 235-518, Capitol Scholarship	8000
Programs, shall be used to provide 125 scholarships in each fiscal	8001
year in the amount of $2,000 each for students enrolled in Ohio's	8002
public and private institutions of higher education to participate	8003
in the Washington Center Internship Program. The scholarships	8004
shall be matched by the Washington Center's scholarship funds.	8005

STUDENT CHOICE GRANTS

8006

The foregoing appropriation item 235-531, Student Choice	8007
Grants, shall be used to support the Student Choice Grant Program	8008
created by section 3333.27 of the Revised Code.	8009

ACADEMIC SCHOLARSHIPS

8010

The foregoing appropriation item 235-530, Academic	8011
Scholarships, shall be used to provide academic scholarships to	8012
students under section 3333.22 of the Revised Code. The annual	8013
scholarship amount awarded to any student who receives a	8014
scholarship for the 2001-2002 and 2002-2003 academic years shall	8015
be $2,000.	8016

PHYSICIAN LOAN REPAYMENT

8017

The foregoing appropriation item 235-604, Physician Loan	8018
Repayment, shall be used in accordance with sections 3702.71 to	8019
3702.81 of the Revised Code.	8020

NURSING LOAN PROGRAM

8021

The foregoing appropriation item 235-606, Nursing Loan	8022
Program, shall be used to administer the nurse education	8023
assistance program. Up to $159,600 in fiscal year 2002 and	8024
$167,580 in fiscal year 2003 may be used for operating expenses	8025
associated with the program. Any additional funds needed for the	8026
administration of the program are subject to Controlling Board	8027
approval.	8028

Section 7.09. COOPERATIVE EXTENSION SERVICE	8029

Of the foregoing appropriation item 235-511, Cooperative	8030
Extension Service, $210,000 in each fiscal year shall be used for	8031
additional staffing for county agents for expanded 4-H activities.	8032
Of the foregoing appropriation item 235-511, Cooperative Extension	8033
Service, $210,000 in each fiscal year shall be used by the	8034
Cooperative Extension Service, through the Enterprise Center for	8035
Economic Development in cooperation with other agencies, for a	8036
public-private effort to create and operate a small business	8037
economic development program to enhance the development of	8038
alternatives to the growing of tobacco, and implement, through	8039
applied research and demonstration, the production and marketing	8040
of other high-value crops and value-added products. Of the	8041
foregoing appropriation item 235-511, Cooperative Extension	8042
Service, $65,000 in each fiscal year shall be used for farm labor	8043
mediation and education programs. Of the foregoing appropriation	8044
item 235-511, Cooperative Extension Service, $215,000 in each	8045
fiscal year shall be used to support the Ohio State University	8046
Marion Enterprise Center.	8047

Of the foregoing appropriation item 235-511, Cooperative	8048
Extension Service, $910,500 in each fiscal year shall be used to	8049
support the Ohio Watersheds Initiative.	8050

AGRICULTURAL RESEARCH AND DEVELOPMENT CENTER

8051

Of the foregoing appropriation item 235-535, Agricultural	8052
Research and Development Center, $950,000 in each fiscal year	8053
shall be distributed to the Piketon Agricultural Research and	8054
Extension Center.	8055

Of the foregoing appropriation item 235-535, Agricultural	8056
Research and Development Center, $250,000 in each fiscal year	8057
shall be distributed to the Raspberry/Strawberry-Ellagic Acid	8058
Research program at the Ohio State University Medical College in	8059
cooperation with the Ohio State University College of Agriculture.	8060

Of the foregoing appropriation item 235-535, Agricultural	8061
Research and Development Center, $50,000 in each fiscal year shall	8062
be used to support the Ohio Berry Administrator.	8063

Of the foregoing appropriation item 235-535, Agricultural	8064
Research and Development Center, $100,000 in each fiscal year	8065
shall be used for the development of agricultural crops and	8066
products not currently in widespread production in Ohio, in order	8067
to increase the income and viability of family farmers.	8068

COOPERATIVE EXTENSION SERVICE AND AGRICULTURAL RESEARCH AND	8069
DEVELOPMENT CENTER	8070

The foregoing appropriation items 235-511, Cooperative	8071
Extension Service, and 235-535, Agricultural Research and	8072
Development Center, shall be disbursed through the Board of	8073
Regents to The Ohio State University in monthly payments, unless	8074
otherwise determined by the Director of Budget and Management	8075
pursuant to section 126.09 of the Revised Code. Of the foregoing	8076
appropriation item 235-535, Agricultural Research and Development	8077
Center, $540,000 in each fiscal year shall be used to purchase	8078
equipment.	8079

The Ohio Agricultural Research and Development Center shall	8080
not be required to remit payment to The Ohio State University	8081
during the 2001-2003 biennium for cost reallocation assessments.	8082
The cost reallocation assessments include, but are not limited to,	8083
any assessment on state appropriations to the center.	8084

Section 7.10.  SEA GRANTS

8085

The foregoing appropriation item 235-402, Sea Grants, shall	8086
be disbursed to The Ohio State University and shall be used to	8087
conduct research on fish in Lake Erie.	8088

INFORMATION SYSTEM

8089

The foregoing appropriation item 235-409, Information System,	8090
shall be used by the Board of Regents to operate the higher	8091
education information data system known as the Higher Education	8092
Information System.	8093

STUDENT SUPPORT SERVICES

8094

The foregoing appropriation item 235-502, Student Support	8095
Services, shall be distributed by the Board of Regents to Ohio's	8096
state-assisted colleges and universities that incur	8097
disproportionate costs in the provision of support services to	8098
disabled students.	8099

CENTRAL STATE SUPPLEMENT

8100

The foregoing appropriation item 235-514, Central State	8101
Supplement, shall be used by Central State University to keep	8102
undergraduate fees below the statewide average, consistent with	8103
its mission of service to many first-generation college students	8104
from groups historically underrepresented in higher education and	8105
from families with limited incomes.	8106

SHAWNEE STATE SUPPLEMENT

8107

The foregoing appropriation item 235-520, Shawnee State	8108
Supplement, shall be used by Shawnee State University as detailed	8109
by both of the following:	8110

(A) To allow Shawnee State University to keep its	8111
undergraduate fees below the statewide average, consistent with	8112
its mission of service to an economically depressed Appalachian	8113
region;	8114

(B) To allow Shawnee State University to employ new faculty	8115
to develop and teach in new degree programs that meet the needs of	8116
Appalachians.	8117

POLICE AND FIRE PROTECTION

8118

The foregoing appropriation item 235-524, Police and Fire	8119
Protection, shall be used for police and fire services in the	8120
municipalities of Kent, Athens, Oxford, Fairborn, Bowling Green,	8121
Portsmouth, Xenia Township (Greene County), and Rootstown	8122
Township, which may be used to assist these local governments in	8123
providing police and fire protection for the central campus of the	8124
state-affiliated university located therein. Each participating	8125
municipality and township shall receive at least five thousand	8126
dollars per year. Funds shall be distributed by the Board of	8127
Regents.	8128

SCHOOL OF INTERNATIONAL BUSINESS

8129

Of the foregoing appropriation item 235-547, School of	8130
International Business, $1,243,637 in each fiscal year shall be	8131
used for the continued development and support of the School of	8132
International Business of the state universities of northeast	8133
Ohio. The money shall go to the University of Akron. These funds	8134
shall be used by the university to establish a School of	8135
International Business located at the University of Akron. It may	8136
confer with Kent State University, Youngstown State University,	8137
and Cleveland State University as to the curriculum and other	8138
matters regarding the school.	8139

Of the foregoing appropriation item 235-547, School of	8140
International Business, $250,000 in each fiscal year shall be used	8141
to support the University of Toledo International Business	8142
Institute.	8143

Of the foregoing appropriation item 235-547, School of	8144
International Business, $250,000 in each fiscal year shall be used	8145
to support the Ohio State University MUCIA program.	8146

CAPITAL COMPONENT

8147

The foregoing appropriation item 235-552, Capital Component,	8148
shall be used by the Board of Regents to implement the capital	8149
funding policy for state-assisted colleges and universities	8150
established in Am. H.B. No. 748 of the 121st General Assembly.	8151
Appropriations from this item shall be distributed to all campuses	8152
for which the estimated campus debt service attributable to new	8153
qualifying capital projects is less than the campus's	8154
formula-determined capital component allocation. Campus	8155
allocations shall be determined by subtracting the estimated	8156
campus debt service attributable to new qualifying capital	8157
projects from the campus formula-determined capital component	8158
allocation. Moneys distributed from this appropriation item shall	8159
be restricted to capital-related purposes.	8160

DAYTON AREA GRADUATE STUDIES INSTITUTE

8161

The foregoing appropriation item 235-553, Dayton Area	8162
Graduate Studies Institute, shall be used by the Board of Regents	8163
to support the Dayton Area Graduate Studies Institute, an	8164
engineering graduate consortium of three universities in the	8165
Dayton area: Wright State University, the University of Dayton,	8166
and the Air Force Institute of Technology, with the participation	8167
of the University of Cincinnati and The Ohio State University.	8168

LONG-TERM CARE RESEARCH

8169

The foregoing appropriation item 235-558, Long-term Care	8170
Research, shall be disbursed to Miami University for long-term	8171
care research.	8172

BGSU CANADIAN STUDIES CENTER

8173

The foregoing appropriation item 235-561, BGSU Canadian	8174
Studies Center, shall be used by the Canadian Studies Center at	8175
Bowling Green State University to study opportunities for Ohio and	8176
Ohio businesses to benefit from the Free Trade Agreement between	8177
the United States and Canada.	8178

URBAN UNIVERSITY PROGRAMS

8179

Of the foregoing appropriation item 235-583, Urban University	8180
Programs, universities receiving funds that are used to support an	8181
ongoing university unit shall certify periodically in a manner	8182
approved by the Board of Regents that program funds are being	8183
matched on a one-to-one basis with equivalent resources. Overhead	8184
support may not be used to meet this requirement. Where Urban	8185
University Program funds are being used to support an ongoing	8186
university unit, matching funds must come from continuing rather	8187
than one-time sources. At each participating state-assisted	8188
institution of higher education, matching funds must be within the	8189
substantial control of the individual designated by the	8190
institution's president as the Urban University Program	8191
representative.	8192

Of the foregoing appropriation item 235-583, Urban University	8193
Programs, $380,000 in each fiscal year shall be used to support a	8194
public communication outreach program (WCPN). The primary purpose	8195
of the program shall be to develop a relationship between	8196
Cleveland State University and nonprofit communications entities.	8197

Of the foregoing appropriation item 235-583, Urban University	8198
Programs, $180,000 in each fiscal year shall be used to support	8199
the Center for the Interdisciplinary Study of Education and the	8200
Urban Child at Cleveland State University. These funds shall be	8201
distributed according to rules adopted by the Board of Regents and	8202
shall be used by the center for interdisciplinary activities	8203
targeted toward increasing the chance of lifetime success of the	8204
urban child, including interventions beginning with the prenatal	8205
period. The primary purpose of the center is to study issues in	8206
urban education and to systematically map directions for new	8207
approaches and new solutions by bringing together a cadre of	8208
researchers, scholars, and professionals representing the social,	8209
behavioral, education, and health disciplines.	8210

Of the foregoing appropriation item 235-583, Urban University	8211
Programs, $260,000 in each fiscal year shall be used to support	8212
the Kent State University Learning and Technology Project. This	8213
project is a kindergarten through university collaboration between	8214
schools surrounding Kent's eight campuses in northeast Ohio, and	8215
corporate partners who will assist in development and delivery.	8216

The Kent State University Project shall provide a faculty	8217
member who has a full-time role in the development of	8218
collaborative activities and teacher instructional programming	8219
between Kent and the K-12th grade schools that surround its eight	8220
campuses; appropriate student support staff to facilitate these	8221
programs and joint activities; and hardware and software to	8222
schools that will make possible the delivery of instruction to	8223
pre-service and in-service teachers, and their students, in their	8224
own classrooms or school buildings. This shall involve the	8225
delivery of low-bandwidth streaming video and web-based	8226
technologies in a distributed instructional model.	8227

Of the foregoing appropriation item 235-583, Urban University	8228
Programs, $100,000 in each fiscal year shall be used to support	8229
the Ameritech Classroom/Center for Research at Kent State	8230
University.	8231

Of the foregoing appropriation item 235-583, Urban University	8232
Programs, $1,000,000 in each fiscal year shall be used to support	8233
the Polymer Distance Learning Project at the University of Akron.	8234

Of the foregoing appropriation item 235-583, Urban University	8235
Programs, $50,000 in each fiscal year shall be distributed to the	8236
Kent State University/Cleveland Design Center program.	8237

Of the foregoing appropriation item 235-583, Urban University	8238
Programs, $250,000 in each fiscal year shall be used to support	8239
the Bliss Institute of Applied Politics at the University of	8240
Akron.	8241

Of the foregoing appropriation item 235-583, Urban University	8242
Programs, $15,000 in each fiscal year shall be used for the	8243
Advancing-Up Program at the University of Akron.	8244

Of the foregoing appropriation item 235-583, Urban University	8245
Programs, in each fiscal year $2,200,643 shall be distributed by	8246
the Board of Regents to Cleveland State University in support of	8247
the Maxine Goodman Levin College of Urban Affairs.	8248

Of the foregoing appropriation item 235-583, Urban University	8249
Programs, in each fiscal year $2,200,643 shall be distributed to	8250
the Northeast Ohio Research Consortium, the Urban Linkages	8251
Program, and the Urban Research Technical Assistance Grant	8252
Program. The distribution among the three programs shall be	8253
determined by the chair of the Urban University Program.	8254

INTERNATIONAL CENTER FOR WATER RESOURCES DEVELOPMENT

8255

The foregoing appropriation item 235-595, International	8256
Center for Water Resources Development, shall be used to support	8257
the International Center for Water Resources Development at	8258
Central State University. The center shall develop methods to	8259
improve the management of water resources for Ohio and for	8260
emerging nations.	8261

RURAL UNIVERSITY PROJECTS

8262

Of the foregoing appropriation item 235-587, Rural University	8263
Projects, Bowling Green State University shall receive $216,400 in	8264
each fiscal year, Miami University shall receive $331,125 in each	8265
fiscal year, and Ohio University shall receive $756,099 in each	8266
fiscal year. These funds shall be used to support the Institute	8267
for Local Government Administration and Rural Development at Ohio	8268
University, the Center for Public Management and Regional Affairs	8269
at Miami University, and the Center for Policy Analysis and Public	8270
Service at Bowling Green State University.	8271

Of the foregoing appropriation item 235-587, Rural University	8272
Projects, $25,000 in each fiscal year shall be used to support the	8273
Washington State Community College day care center.	8274

Of the foregoing appropriation item 235-587, Rural University	8275
Projects, $75,000 in fiscal year 2001 shall be used to support the	8276
COAD/ILGARD/GOA Appalachian Leadership Initiative.	8277

A small portion of the funds provided to Ohio University	8278
shall also be used for the Institute for Local Government	8279
Administration and Rural Development State and Rural Policy	8280
Partnership with the Governor's Office of Appalachia and the	8281
Appalachian delegation of the General Assembly.	8282

OHIO RESOURCE CENTER FOR MATHEMATICS, SCIENCE, AND READING

8283

The foregoing appropriation item 235-588, Ohio Resource	8284
Center for Mathematics, Science, and Reading, shall be used to	8285
support a resource center for mathematics, science, and reading to	8286
be located at a state-assisted university for the purpose of	8287
identifying best educational practices in primary and secondary	8288
schools and establishing methods for communicating them to	8289
colleges of education and school districts.	8290

HAZARDOUS MATERIALS PROGRAM

8291

The foregoing appropriation item 235-596, Hazardous Materials	8292
Program, shall be disbursed to Cleveland State University for the	8293
operation of a program to certify firefighters for the handling of	8294
hazardous materials. Training shall be available to all Ohio	8295
firefighters.	8296

NATIONAL GUARD SCHOLARSHIP PROGRAM

8297

The Board of Regents shall disburse funds from appropriation	8298
item 235-599, National Guard Scholarship Program, at the direction	8299
of the Adjutant General.	8300

OHIO HIGHER EDUCATIONAL FACILITY COMMISSION SUPPORT

8301

The foregoing appropriation item 235-602, HEFC	8302
Administration, shall be used by the Board of Regents for	8303
operating expenses related to the Board of Regents' support of the	8304
activities of the Ohio Higher Educational Facility Commission.	8305
Upon the request of the chancellor, the Director of Budget and	8306
Management shall transfer up to $12,000 cash from Fund 461 to Fund	8307
4E8 in each fiscal year of the biennium.	8308

Section 7.11. BREAKTHROUGH INVESTMENTS	8309

THE OHIO PLAN

8310

The foregoing appropriation item 235-426, The Ohio Plan,	8311
shall be used by the Board of Regents to promote economic growth	8312
through research, development, and commercialization initiatives.	8313
The Board of Regents shall award funds on a competitive basis to	8314
universities and consortia of universities and industry in the	8315
areas of biotechnology, nanotechnology, and information	8316
technology. Proposals shall be evaluated on the basis of quality	8317
in terms of national and international standards of scientific	8318
merit, relevance to private sector commercial opportunities, and a	8319
demonstration of private sector involvement and substantial	8320
funding match from local and external sources in a process to	8321
continuously evaluate commercialization opportunities.	8322
Additionally, the Board of Regents shall work in close	8323
collaboration with the Technology Action Board in the	8324
administration of this program to ensure implementation of a	8325
coherent state strategy with respect to science and technology	8326
investments.	8327

APPALACHIAN NEW ECONOMY PARTNERSHIP

8328

The foregoing appropriation item 235-428, Appalachian New	8329
Economy Partnership, shall be used by the Board of Regents to	8330
begin a multicampus and multiagency coordinated effort to link	8331
Appalachia to the new economy. Funds shall be distributed to Ohio	8332
University to provide leadership in the development and	8333
implementation of initiatives in the areas of entrepreneurship,	8334
technology, education, and management.	8335

Section 7.12.  REPAYMENT OF RESEARCH FACILITY INVESTMENT FUND	8336
MONEYS	8337

Notwithstanding any provision of law to the contrary, all	8338
repayments of Research Facility Investment Fund loans shall be	8339
made to the Bond Service Trust Fund. All Research Facility	8340
Investment Fund loan repayments made prior to the effective date	8341
of this section shall be transferred by the Director of Budget and	8342
Management to the Bond Service Trust Fund within sixty days of the	8343
effective date of this section.	8344

Campuses shall make timely repayments of Research Facility	8345
Investment Fund loans, according to the schedule established by	8346
the Board of Regents. In the case of late payments, the Board of	8347
Regents may deduct from an institution's periodic subsidy	8348
distribution an amount equal to the amount of the overdue payment	8349
for that institution, transfer such amount to the Bond Service	8350
Trust Fund, and credit the appropriate institution for the	8351
repayment.	8352

VETERANS' PREFERENCES

8353

The Board of Regents shall work with the Governor's Office of	8354
Veterans' Affairs to develop specific veterans' preference	8355
guidelines for higher education institutions. These guidelines	8356
shall ensure that the institutions' hiring practices are in	8357
accordance with the intent of Ohio's veterans' preference laws.	8358

Section 7.13.  CENTRAL STATE UNIVERSITY

8359

(A) Notwithstanding sections 3345.72, 3345.74, 3345.75, and	8360
3345.76 of the Revised Code and rule 126:3-1-01 of the	8361
Administrative Code, Central State University shall adhere to the	8362
following fiscal standards:	8363

(1) Maintenance of a balanced budget and filing of quarterly	8364
reports on an annualized budget with the Board of Regents,	8365
comparing the budget to actual spending and revenues with	8366
projected expenditures and revenues for the remainder of the year.	8367
Such reports shall include narrative explanations as appropriate	8368
and be filed within 30 days of the end of the quarter.	8369

(2) Timely and accurate assessment of the current and	8370
projected cash flow of university funds, by fund type;	8371

(3) Timely reconciliation of all university cash and general	8372
ledger accounts, by fund;	8373

(4) Submission to the Auditor of State of financial	8374
statements consistent with audit requirements prescribed by the	8375
Auditor of State within four months after the end of the fiscal	8376
year;	8377

(5) Completion of an audit within six months after the end	8378
of the fiscal year.	8379

The Director of Budget and Management shall provide	8380
clarification to the university on these fiscal standards as	8381
deemed necessary. The director also may take such actions as are	8382
necessary to ensure that the university adheres to these standards	8383
and other fiscal standards consistent with generally accepted	8384
accounting principles and the requirements of external entities	8385
providing funding to the university. Such actions may include the	8386
appointment of a financial consultant to assist Central State	8387
University in the continuous process of design and implementation	8388
of responsible systems of financial management and accounting.	8389

(B) The director's fiscal oversight shall continue until	8390
such time as the university meets the same criteria as those	8391
created in paragraph (F) of rule 126:3-1-01 of the Administrative	8392
Code for the termination of a fiscal watch. At that time Central	8393
State University shall be relieved of the requirements of this	8394
section and subject to the requirements of sections 3345.72,	8395
3345.74, 3345.75, and 3345.76 of the Revised Code.	8396

Any encumbered funds remaining from appropriation item	8397
042-407, Central State Deficit, as appropriated in Am. Sub. S.B. 6	8398
of the 122nd General Assembly shall be released during the	8399
2001-2003 biennium for nonrecurring expenses contingent upon the	8400
approval of the Director of Budget and Management.	8401

Section 8.  OSB OHIO STATE SCHOOL FOR THE BLIND

8402

General Revenue Fund

8403

General Services Fund Group

8408

State Special Revenue Fund Group

8412

Federal Special Revenue Fund Group

8416

8422

Section 9.  OSD OHIO STATE SCHOOL FOR THE DEAF	8423

General Revenue Fund

8424

General Services Fund Group

8429

State Special Revenue Fund Group

8433

Federal Special Revenue Fund Group

8439

8447

Section 10.  SFC SCHOOL FACILITIES COMMISSION

8448

General Revenue Fund

8449

State Special Revenue Fund Group

8453

LEASE RENTAL PAYMENTS

8458

The foregoing appropriation item 230-428, Lease Rental	8459
Payments, shall be used to meet all payments at the times they are	8460
required to be made during the period from July 1, 2001, to June	8461
30, 2003, by the School Facilities Commission pursuant to leases	8462
and agreements made under section 3318.26 of the Revised Code, but	8463
limited to the aggregate amount of $79,299,600. Nothing in this	8464
act shall be deemed to contravene the obligation of the state to	8465
pay, without necessity for further appropriation, from the sources	8466
pledged thereto, the bond service charges on obligations issued	8467
pursuant to Chapter 3318. of the Revised Code.	8468

COMMON SCHOOLS GENERAL OBLIGATION DEBT SERVICE

8469

The foregoing appropriation item 230-908, Common Schools	8470
General Obligation Debt Service, shall be used to pay all debt	8471
service and financing costs at the times they are required to be	8472
made pursuant to sections 151.01 and 151.03 of the Revised Code	8473
during the period from July 1, 2001, to June 30, 2003. The Office	8474
of the Sinking Fund or the Director of Budget and Management shall	8475
effectuate the required payments by an intrastate transfer	8476
voucher.	8477

OPERATING EXPENSES

8478

The foregoing appropriation item 230-644, Operating Expenses,	8479
shall be used by the Ohio School Facilities Commission to carry	8480
out its responsibilities pursuant to this section and Chapter	8481
3318. of the Revised Code.	8482

Within ten days after the effective date of this section, or	8483
as soon as possible thereafter, the Executive Director of the Ohio	8484
School Facilities Commission shall certify to the Director of	8485
Budget and Management the amount of cash to be transferred from	8486
the School Building Assistance Fund (Fund 032) or the Public	8487
School Building Fund (Fund 021) to the Ohio School Facilities	8488
Commission Fund (Fund 5E3).	8489

By July 10, 2002, the Executive Director of the Ohio School	8490
Facilities Commission shall certify to the Director of Budget and	8491
Management the amount of cash to be transferred from the School	8492
Building Assistance Fund (Fund 032) or the Public School Building	8493
Fund (Fund 021) to the Ohio School Facilities Commission Fund	8494
(Fund 5E3).	8495

SCHOOL FACILITIES ENCUMBRANCES AND REAPPROPRIATION

8496

At the request of the Executive Director of the Ohio School	8497
Facilities Commission, the Director of Budget and Management may	8498
cancel encumbrances for school district projects from a previous	8499
biennium if the district has not raised its local share of project	8500
costs within one year of receiving Controlling Board approval in	8501
accordance with section 3318.05 of the Revised Code. The	8502
Executive Director of the Ohio School Facilities Commission shall	8503
certify the amounts of these canceled encumbrances to the Director	8504
of Budget and Management on a quarterly basis. The amounts of the	8505
canceled encumbrances are appropriated.	8506

DISABILITY ACCESS PROJECTS

8507

The unencumbered and unallotted balances as of June 30, 2001,	8508
in appropriation item 230-649, Disability Access Project, are	8509
hereby reappropriated. The unencumbered and unallotted balances	8510
of the appropriation at the end of fiscal year 2002 are hereby	8511
reappropriated in fiscal year 2003 to fund capital projects	8512
pursuant to this section.	8513

(A) As used in this section:

8514

(1) "Percentile" means the percentile in which a school	8515
district is ranked according to the fiscal year 1998 ranking of	8516
school districts with regard to income and property wealth under	8517
division (B) of section 3318.011 of the Revised Code.	8518

(2) "School district" means a city, local, or exempted	8519
village school district, but excluding a school district that is	8520
one of the state's 21 urban school districts as defined in	8521
division (O) of section 3317.02 of the Revised Code, as that	8522
section existed prior to July 1, 1998.	8523

(3) "Valuation per pupil" means a district's total taxable	8524
value as defined in section 3317.02 of the Revised Code divided by	8525
the district's ADM as defined in division (A) of section 3317.02	8526
of the Revised Code as that section existed prior to July 1, 1998.	8527

(B) The School Facilities Commission shall adopt rules for	8528
awarding grants to school districts with a valuation per pupil of	8529
less than $200,000, to be used for construction, reconstruction,	8530
or renovation projects in classroom facilities, the purpose of	8531
which is to improve access to such facilities by physically	8532
handicapped persons. The rules shall include application	8533
procedures. No school district shall be awarded a grant under	8534
this section in excess of $100,000. In addition, any school	8535
district shall be required to pay a percentage of the cost of the	8536
project or which the grant is being awarded equal to the	8537
percentile in which the district is ranked.	8538

(C) The School Facilities Commission is hereby authorized to	8539
transfer a portion of appropriation item CAP-622, Public School	8540
Buildings, contained in Am. Sub. H.B. No. 283 of the 123rd General	8541
Assembly, to CAP-777, Disability Access Projects, to provide funds	8542
to make payments resulting from the approval of applications for	8543
disability access grants received prior to January 1, 1999. The	8544
amounts transferred are appropriated.	8545

Section 10.01.  EXTREME ENVIRONMENTAL CONTAMINATION OF SCHOOL	8546
FACILITIES	8547

Notwithstanding any other provisions of law to the contrary,	8548
the School Facilities Commission may provide assistance under the	8549
Exceptional Needs Pilot Program to any school district and not	8550
exclusively a school district in the lowest 50 per cent of	8551
adjusted valuation per pupil on the fiscal year 1999 ranking of	8552
school districts established pursuant to section 3317.02 of the	8553
Revised Code, for the purpose of the relocation or replacement of	8554
school facilities required as a result of extreme environmental	8555
contamination. If in the assessment of the school district's	8556
classroom facilities needs conducted under the Exceptional Needs	8557
Pilot Program pursuant to Section 26 of Am. Sub. H.B. 850 of the	8558
122nd General Assembly, the commission determines that all the	8559
school district's classroom facilities ultimately will require	8560
replacement under sections 3318.01 to 3318.20 of the Revised Code,	8561
then the commission may undertake a district-wide project under	8562
sections 3318.01 to 3318.20 of the Revised Code.	8563

The School Facilities Commission shall contract with an	8564
independent environmental consultant to conduct a study and to	8565
report to the commission as to the seriousness of the	8566
environmental contamination, whether the contamination violates	8567
applicable state and federal standards, and whether the facilities	8568
are no longer suitable for use as school facilities. The	8569
commission then shall make a determination regarding funding for	8570
the relocation or replacement of the school facilities. If the	8571
federal government or other public or private entity provides	8572
funds for restitution of costs incurred by the state or school	8573
district in the relocation or replacement of the school	8574
facilities, the school district shall use such funds in excess of	8575
the school district's share to refund the state for the state's	8576
contribution to the environmental contamination portion of the	8577
project. The school district may apply an amount of such	8578
restitution funds up to an amount equal to the school district's	8579
portion of the project, as defined by the commission, toward	8580
paying its portion of that project to reduce the amount of bonds	8581
the school district otherwise must issue to receive state	8582
assistance under sections 3318.01 to 3318.20 of the Revised Code.	8583

Section 10.02.  (A) The Ohio School Facilities Commission	8584
may commit up to thirty-five million dollars to the Canton City	8585
School District for construction of a facility described in this	8586
section, in lieu of a high school that would otherwise be	8587
authorized under Chapter 3318. of the Revised Code. The	8588
commission shall not commit funds under this section unless all of	8589
the following conditions are met:	8590

(1) The district has entered into a cooperative agreement	8591
with a state-assisted technical college.	8592

(2) The district has received an irrevocable commitment of	8593
additional funding from nonpublic sources.	8594

(3) The facility is intended to serve both secondary and	8595
postsecondary instructional purposes.	8596

(B) The commission shall enter into an agreement with the	8597
district for the construction of the facility authorized under	8598
this section that is separate from and in addition to the	8599
agreement required for the district's participation in the	8600
Classroom Facilities Assistance Program under section 3318.08 of	8601
the Revised Code. Notwithstanding that section and sections	8602
3318.03, 3318.04, and 3318.083 of the Revised Code, the additional	8603
agreement shall provide, but not be limited to, the following:	8604

(1) The commission shall not have any oversight	8605
responsibilities over the construction of the facility.	8606

(2) The facility need not comply with the specifications for	8607
plans and materials for high schools adopted by the commission.	8608

(3) The commission may decrease the basic project cost that	8609
would otherwise be calculated for a high school under Chapter	8610
3318. of the Revised Code.	8611

(4) The state shall not share in any increases in the basic	8612
project cost for the facility above the amount authorized under	8613
this section.	8614

All other provisions of Chapter 3318. of the Revised Code	8615
apply to the approval and construction of a facility authorized	8616
under this section.	8617

The state funds committed to the facility authorized by this	8618
section shall be part of the total amount the state commits to the	8619
Canton City School District under Chapter 3318. of the Revised	8620
Code. All additional state funds committed to the Canton City	8621
School District for classroom facilities assistance shall be	8622
subject to all provisions of Chapter 3318. of the Revised Code.	8623

Section 11.  NET OHIO SCHOOLNET COMMISSION

8624

General Revenue Fund

8625

General Services Fund Group

8630

State Special Revenue Fund Group

8634

Federal Special Revenue Fund Group

8639

INTERACTIVE VIDEO DISTANCE LEARNING PROGRAM

8644

The unencumbered and unalloted balances as of June 30, 2001,	8645
in appropriation item 228-690, SchoolNet Electrical	8646
Infrastructure, are reappropriated to fund projects pursuant to	8647
this section. The foregoing appropriation item 228-650,	8648
Interactive Distance Learning shall be used to extend the	8649
Interactive Video Distance Learning Program in accordance with the	8650
statewide educational technology strategic plan. The commission	8651
shall adopt procedures for the administration and implementation	8652
of the Interactive Video Distance Learning Program, which shall	8653
include application procedures, specifications for distance	8654
learning technology, and terms and conditions for participation in	8655
the program. The commission shall not approve any application for	8656
participation unless it determines that the applicant can	8657
effectively and efficiently integrate the proposed distance	8658
learning technology into schools or the selected schools or	8659
classrooms for the phase of the program. The commission shall	8660
consider the Interactive Video Distance Learning Pilot established	8661
in Am. Sub. H.B. 215 of the 122nd General Assembly, and the Ohio	8662
SchoolNet Telecommunity program in Am. Sub. H. B. 627 of the 121st	8663
General Assembly, in developing application procedures and	8664
criteria for the Interactive Video Distance Learning Program. The	8665
commission shall give preference to lower wealth districts or	8666
consortia of such districts that do not have existing video	8667
teleconferencing technology.	8668

SCHOOLNET PLUS PROGRAM

8669

All appropriations that are unencumbered and unallotted in	8670
appropriation item 228-698, SchoolNet Plus, as of June 30, 2001,	8671
are hereby reappropriated for the same purpose in fiscal year 2002	8672
upon the request of the Executive Director of the Ohio SchoolNet	8673
Commission and the approval of the Director of Budget and	8674
Management.	8675

TECHNICAL AND INSTRUCTIONAL PROFESSIONAL DEVELOPMENT

8676

The foregoing appropriation item 228-406, Technical and	8677
Instructional Professional Development, shall be used by the Ohio	8678
SchoolNet Commission to make grants to qualifying schools,	8679
including the State School for the Blind and the Ohio School for	8680
the Deaf, for the provision of hardware, software,	8681
telecommunications services, and staff development to support	8682
educational uses of technology in the classroom.	8683

The Ohio SchoolNet Commission shall consider the professional	8684
development needs associated with the OhioReads Program when	8685
making funding allocations and program decisions.	8686

The Ohio Educational Telecommunications Network Commission,	8687
with the advice of the Ohio SchoolNet Commission, shall make	8688
grants totaling up to $1,400,000 in each year of the biennium for	8689
research development and production of interactive instructional	8690
programming series and teleconferences to support SchoolNet. Up	8691
to $55,000 of this amount shall be used in each year of the	8692
biennium to provide for the administration of these activities by	8693
the Ohio Educational Telecommunications Network Commission. The	8694
programming shall be targeted to the needs of the poorest 200	8695
school districts as determined by the district's adjusted	8696
valuation per pupil as defined in section 3317.0213 of the Revised	8697
Code.	8698

Of the foregoing appropriation item 228-406, Technical and	8699
Instructional Professional Development, $2,900,000 in each fiscal	8700
year shall be distributed by the Ohio SchoolNet Commission to	8701
low-wealth districts or consortia including low-wealth school	8702
districts, as determined by the district's adjusted valuation per	8703
pupil as defined in section 3317.0213 of the Revised Code, or the	8704
State School for the Blind or the Ohio School for the Deaf.	8705

The remaining appropriation allocated in appropriation item	8706
228-406, Technical and Instructional Professional Development,	8707
shall be used by the Ohio SchoolNet Commission for professional	8708
development for teachers and administrators for the use of	8709
educational technology. The commission shall make grants to	8710
provide technical assistance and professional development on the	8711
use of educational technology to school districts.	8712

Eligible recipients of grants include regional training	8713
centers, county offices of education, data collection sites,	8714
instructional technology centers, institutions of higher	8715
education, public television stations, special education resource	8716
centers, area media centers, or other nonprofit educational	8717
organizations. Services provided through these grants may include	8718
use of private entities subcontracting through the grant	8719
recipient.	8720

Grants shall be made to entities on a contractual basis with	8721
the Ohio SchoolNet Commission. Contracts shall include provisions	8722
that demonstrate how services will benefit technology use in the	8723
schools, and in particular will support SchoolNet efforts to	8724
support technology in the schools. Contracts shall specify the	8725
scope of assistance being offered and the potential number of	8726
professionals who will be served. Contracting entities may be	8727
awarded more than one grant at a time.	8728

Grants shall be awarded in a manner consistent with the goals	8729
of SchoolNet. Special emphasis in the award of grants shall be	8730
placed on collaborative efforts among service providers.	8731

Application for grants from this appropriation in	8732
appropriation item 228-406, Technical and Instructional	8733
Professional Development, shall be consistent with a school	8734
district's technology plan that shall meet the minimum	8735
specifications for school district technology plans as prescribed	8736
by the Ohio SchoolNet Commission. Funds allocated through these	8737
grants may be combined with funds received through other state or	8738
federal grants for technology so long as the school district's	8739
technology plan specifies the use of these funds. The commission	8740
may combine the application for these grants with the SchoolNet	8741
application process authorized in Am. Sub. H.B. 790 of the 120th	8742
General Assembly.	8743

EDUCATION TECHNOLOGY

8744

The foregoing appropriation item 228-539, Education	8745
Technology, shall be used to provide funding to suppliers of	8746
information services to school districts for the provision of	8747
hardware, software, and staff development in support of	8748
educational uses of technology in the classroom as prescribed by	8749
the State Plan for Technology pursuant to section 3301.07 of the	8750
Revised Code, and to support assistive technology for children and	8751
youth with disabilities.	8752

Up to $5,200,000 in each fiscal year shall be used by the	8753
Ohio SchoolNet Commission to contract with instructional	8754
television, and $850,000 in fiscal year 2002, and $840,000 in	8755
fiscal year 2003 shall be used by the commission to contract with	8756
education media centers to provide Ohio schools with instructional	8757
resources and services.	8758

Resources may include, but not be limited to, the following:	8759
pre-recorded video materials (including videotape, laser discs,	8760
and CD-ROM discs); computer software for student use or student	8761
access to electronic communication, databases, spreadsheet, and	8762
word processing capability; live student courses or courses	8763
delivered electronically; automated media systems; and	8764
instructional and professional development materials for teachers.	8765
The commission shall cooperate with education technology agencies	8766
in the acquisition, development, and delivery of such educational	8767
resources to ensure high-quality and educational soundness at the	8768
lowest possible cost. Delivery of such resources may utilize a	8769
variety of technologies, with preference given to a high-speed	8770
integrated information network that can transport video, voice,	8771
data, and graphics simultaneously.	8772

Services shall include presentations and technical assistance	8773
that will help students and teachers integrate educational	8774
materials that support curriculum objectives, match specific	8775
learning styles, and are appropriate for individual interests and	8776
ability levels.	8777

Such instructional resources and services shall be made	8778
available for purchase by chartered nonpublic schools or by public	8779
school districts for the benefit of pupils attending chartered	8780
nonpublic schools.	8781

DISTANCE LEARNING

8782

Appropriation item 228-634, Distance Learning, shall be	8783
distributed by the Ohio SchoolNet Commission on a grant basis to	8784
eligible school districts to establish "distance learning" in the	8785
school district. Per the agreement with Ameritech, school	8786
districts are eligible for funds if they are within an Ameritech	8787
service area. Funds to administer the program shall be expended	8788
by the commission up to the amount specified in the agreement with	8789
Ameritech.	8790

Within 30 days after the effective date of this section, the	8791
Director of Budget and Management shall transfer to fund 4X1 in	8792
the State Special Revenue Fund Group any investment earnings from	8793
moneys paid to the office or to the SchoolNet Commission by any	8794
telephone company as part of a settlement agreement between the	8795
company and the Public Utilities Commission in fiscal year 1995.	8796

ELECTRICAL INFRASTRUCTURE

8797

The unencumbered and unallotted balances of June 30, 2001, in	8798
appropriation item 228-690, SchoolNet Electrical Infrastructure,	8799
are reappropriated to fund projects pursuant to this section. The	8800
foregoing appropriation item may be distributed by the Ohio	8801
SchoolNet Commission for use by school districts to renovate	8802
existing buildings with sufficient electrical service to safely	8803
operate educational technology consistent with their SchoolNet and	8804
SchoolNet Plus technology plans. The Executive Director of the	8805
Ohio SchoolNet Commission shall review grant proposals from school	8806
districts for the use of these funds. In evaluating grant	8807
proposals, the executive director shall consider the ability and	8808
commitment of school districts to contribute local public and	8809
private resources to upgrade their electrical service and shall	8810
give consideration to consortia of school districts that have	8811
formed to optimize resources to upgrade electrical service. In no	8812
case shall grant awards exceed $1,000,000 for a single school	8813
district. Funding recommendations for this appropriation made by	8814
the executive director are subject to the review of the Ohio	8815
SchoolNet Commission.	8816

Section 12.  SCR STATE BOARD OF PROPRIETARY SCHOOL	8817

REGISTRATION

8818

General Revenue Fund

8819

8825

Section 13.  TTA OHIO TUITION TRUST AUTHORITY	8826

State Special Revenue Fund Group

8827

8832

Section 14. That Section 18 of Am. Sub. H.B. 650 of the 122nd	8833
General Assembly, as most recently amended by Sub. S.B. 245 of the	8834
123rd General Assembly, be amended to read as follows:	8835

"       Sec. 18.  (A) As used in this section:

8836

(1) "FY 1998 state aid" means the total amount of state money	8837
received by a school district for fiscal year 1998 as reported on	8838
the Department of Education's form "SF-12," adjusted as follows:	8839

(a) Minus any amounts for approved preschool handicapped	8840
units;	8841

(b) Minus any additional amount attributable to the	8842
reappraisal guarantee of division (C) of section 3317.04 of the	8843
Revised Code;	8844

(c) Plus the amount deducted for payments to an educational	8845
service center;	8846

(d) Plus an estimated portion of the state money distributed	8847
in fiscal year 1998 to other school districts or educational	8848
service centers for approved units, other than preschool	8849
handicapped or gifted education units, attributable to the costs	8850
of providing services in those units to students entitled to	8851
attend school in the district;	8852

(e) Minus an estimated portion of the state money	8853
distributed to the school district in fiscal year 1998 for	8854
approved units, other than preschool handicapped units or gifted	8855
education units, attributable to the costs of providing services	8856
in those units to students entitled to attend school in another	8857
school district;	8858

(f) Plus any additional amount paid pursuant to the	8859
vocational education recomputation required by former Section	8860
50.22 of Am. Sub. H.B. No. 215 of the 122nd General Assembly;	8861

(g) Plus any additional amount paid pursuant to the special	8862
education recomputation required by former division (I) of section	8863
3317.023 of the Revised Code;	8864

(h) Plus any amount paid for equity aid under section	8865
3317.0213 of the Revised Code;	8866

(i) Plus any amount received for that year pursuant to	8867
section 3317.027 of the Revised Code;	8868

(j) Plus any amount received for that year pursuant to a	8869
recomputation made under division (B) of section 3317.022 of the	8870
Revised Code, as that section existed in that year.	8871

(2) "FY 1999 state aid" means "FY 1999 state aid" as defined	8872
in the version of this section in effect for fiscal year 1999.	8873

(3) "FY 2000 state aid," "FY 2001 state aid," and "FY 2002	8874
state aid" mean the total amount of state money a school district	8875
is eligible to receive for the applicable fiscal year under	8876
divisions (A), (C)(1) and (5), (D), and (E) of section 3317.022	8877
and sections 3317.025, 3317.027, 3317.029, 3317.0212, and	8878
3317.0213 of the Revised Code, plus any amount for which the	8879
district is eligible pursuant to division (C) of section 3317.023,	8880
divisions (G), (P), and (R) of section 3317.024, and the	8881
supplemental unit allowance paid for gifted units under division	8882
(B) of section 3317.162 3317.053 of the Revised Code, and prior to	8883
any deductions or credits required by division (B), (D), (E), (F),	8884
(G), (H), (I), (J), (K), or (L) of section 3317.023 or division	8885
(J) of section 3317.029 of the Revised Code.	8886

(4) "Adjusted FY 1999 actual aid" means FY 1999 state aid	8887
that was actually paid to a school district after the application	8888
of division (B) of this section, plus an appropriate proportion,	8889
as determined by the department of education, of the amount	8890
received by the school district in fiscal year 1999 from the	8891
vocational education set-aside, as defined in the version of	8892
section 3317.0212 of the Revised Code in effect prior to the	8893
effective date of this amendment, and attributable to the	8894
district's students.	8895

(5) "FY 2000 actual aid," and "FY 2001 actual aid" mean the	8896
amount of the state aid described in division (A)(3) of this	8897
section that was actually paid to a school district in the	8898
applicable fiscal year after the application of divisions (C) to	8899
(E) of this section.	8900

(6) "FY 1998 ADM," "formula ADM," and "three-year average	8901
formula ADM" have the meanings prescribed in section 3317.02 of	8902
the Revised Code.	8903

(7) "All-day kindergarten" has the meaning prescribed in	8904
section 3317.029 of the Revised Code.	8905

(8) "School district" means a city, local, or exempted	8906
village school district.	8907

(B) In fiscal year 1999, notwithstanding any provision of	8908
law to the contrary, no school district shall receive FY 1999	8909
state aid that is more than the greater of the following:	8910

(1) 110 per cent of FY 1998 state aid;

8911

(2) [1.06 X (FY 1998 state aid/FY 1998 ADM)] X the greater	8912
of fiscal year 1999 formula ADM or three-year average formula ADM.	8913

If a district's projected FY 1999 state aid is more than the	8914
greater of division (B)(1) or (2) of this section, such district	8915
shall receive only the greater of division (B)(1) or (2) of this	8916
section in fiscal year 1999.	8917

(C) In fiscal year 2000, notwithstanding any provision of	8918
law to the contrary, no school district shall receive FY 2000	8919
state aid that is more than the greater of the following:	8920

(1) 111.5 per cent of adjusted FY 1999 actual aid;

8921

(2) [1.095 X (adjusted FY 1999 actual aid/fiscal year 1999	8922
formula ADM)] X the greater of fiscal year 2000 formula ADM or	8923
three-year average formula ADM.	8924

If a district's projected FY 2000 state aid is more than the	8925
greater of division (C)(1) or (2) of this section, such district	8926
shall receive only the greater of division (C)(1) or (2) of this	8927
section in fiscal year 2000.	8928

(D) In fiscal year 2001, notwithstanding any provision of	8929
law to the contrary, no school district shall receive FY 2001	8930
state aid that is more than the greater of the following:	8931

(1) 112 per cent of FY 2000 actual aid;

8932

(2) [1.10 X (FY 2000 actual aid/fiscal year 2000 formula	8933
ADM)] X the greater of fiscal year 2001 formula ADM or three-year	8934
average formula ADM.	8935

If a district's projected FY 2001 state aid is more than the	8936
greater of division (D)(1) or (2) of this section, such district	8937
shall receive only the greater of division (D)(1) or (2) of this	8938
section in fiscal year 2001.	8939

(E) In fiscal year 2002, notwithstanding any provision of	8940
law to the contrary, no school district shall receive FY 2002	8941
state aid that is more than the greater of the following:	8942

(1) 112 per cent of FY 2001 actual aid;

8943

(2) [1.10 X (FY 2001 actual aid/fiscal year 2001 formula	8944
ADM)] X the greater of fiscal year 2002 formula ADM or three-year	8945
average formula ADM.	8946

If a district's projected FY 2002 state aid is more than the	8947
greater of division (E)(1) or (2) of this section, such district	8948
shall receive only the greater of division (E)(1) or (2) of this	8949
section in fiscal year 2002.	8950

(F) This division and division (G) of this section apply	8951
only to districts subject to division (F) of section 3317.029 of	8952
the Revised Code and only until July 1, 2002. As used in this	8953
division and division (G) of this section:	8954

(1) "Capped district" means a district that pursuant to	8955
division (B), (C), (D), or (E) of this section will not receive	8956
the full amount of FY 1999, FY 2000, FY 2001, or FY 2002 state	8957
aid.	8958

(2) "DPIA funds" means:

8959

(a) In FY 1998, the amount calculated for the district	8960
pursuant to division (B) of section 3317.023 of the Revised Code	8961
as it existed in that fiscal year;	8962

(b) In any fiscal year after FY 1998, the total amount	8963
calculated for the district for that fiscal year pursuant to	8964
section 3317.029 of the Revised Code.	8965

(3) "Exempt DPIA portion" means:

8966

(a) In the case of any district other than a capped	8967
district, an amount equal to zero;	8968

(b) In the case of a capped district, the amount resulting	8969
from the application of the following formula:	8970

However, if this formula produces a negative number, the	8972
district's exempt DPIA portion is zero.	8973

(4) "Required all-day kindergarten" for a district means the	8974
provision of all-day kindergarten to the number of students in the	8975
district's kindergarten percentage specified pursuant to division	8976
(H)(1) of section 3317.029 of the Revised Code.	8977

(G) Notwithstanding any provision of law to the contrary:

8978

(1)(a) In the case of any district, the district's DPIA	8979
funds are hereby deemed to first consist of any disadvantaged	8980
pupil impact aid calculated for the district for all-day	8981
kindergarten under division (D) of section 3317.029 of the Revised	8982
Code, and to next consist of any disadvantaged pupil impact aid	8983
calculated for the district under divisions (C) and (E) of section	8984
3317.029 of the Revised Code. Except as provided in division	8985
(G)(1)(b) of this section, each district shall expend whatever	8986
funds necessary to ensure provision of its required all-day	8987
kindergarten.	8988

(b) Notwithstanding divisions (F)(1), (H), and (J) of	8989
section 3317.029 of the Revised Code, a district may serve a	8990
lesser percentage of students than the number initially certified	8991
in its all-day kindergarten percentage as of the first day of	8992
August of the fiscal year and may retain and spend the DPIA funds	8993
it would have used to serve the difference between the initial	8994
certified percentage and such lesser percentage solely for the	8995
purpose of modifying or purchasing additional classroom space	8996
necessary to provide all-day kindergarten. A district may only	8997
reduce its certified all-day kindergarten percentage and spend the	8998
resultant funds on modification and purchase of space with the	8999
approval of the department of education. The department shall	9000
only approve such use of all-day kindergarten funds and the	9001
corresponding reduction of the district's certified all-day	9002
kindergarten percentage if it determines that the district cannot	9003
reasonably provide all-day kindergarten to its initially certified	9004
percentage without additional space.	9005

(2) In FY 1999, a district shall expend for the purposes of	9006
section 3317.029 of the Revised Code an amount equal to at least	9007
twenty-five per cent of the resultant derived from subtracting the	9008
district's exempt DPIA portion from the amount calculated for the	9009
district under divisions (C) and (E) of section 3317.029 of the	9010
Revised Code.	9011

(3) In FY 2000, a district shall expend for the purposes of	9012
section 3317.029 of the Revised Code an amount equal to at least	9013
fifty per cent of the resultant derived from subtracting the	9014
district's exempt DPIA portion from the amount calculated for the	9015
district under divisions (C) and (E) of section 3317.029 of the	9016
Revised Code. Of that amount:	9017

(a) The percentage that the district spends for the purposes	9018
of division (F)(2) of section 3317.029 of the Revised Code shall	9019
equal the percentage that its original calculation under division	9020
(C) of that section, before the application of this section, is of	9021
the total of the amounts originally calculated under divisions (C)	9022
and (E) of section 3317.029 of the Revised Code.	9023

(b) The percentage that the district spends for the purposes	9024
of division (F)(3) of section 3317.029 of the Revised Code shall	9025
equal the percentage that its original calculation under division	9026
(E) of that section, before the application of this section, is of	9027
the total of the amounts originally calculated under divisions (C)	9028
and (E) of section 3317.029 of the Revised Code.	9029

(4) In FY 2001, a district shall expend for the purposes of	9030
section 3317.029 of the Revised Code an amount equal to at least	9031
seventy-five per cent of the resultant derived from subtracting	9032
the district's exempt DPIA portion from the amount calculated for	9033
the district under divisions (C) and (E) of section 3317.029 of	9034
the Revised Code. Of that amount:	9035

(a) The percentage that the district spends for the purposes	9036
of division (F)(2) of section 3317.029 of the Revised Code shall	9037
equal the percentage that its original calculation under division	9038
(C) of that section, before the application of this section, is of	9039
the total of the amounts originally calculated under divisions (C)	9040
and (E) of section 3317.029 of the Revised Code.	9041

(b) The percentage that the district spends for the purposes	9042
of division (F)(3) of section 3317.029 of the Revised Code shall	9043
equal the percentage that its original calculation under division	9044
(E) of that section, before the application of this section, is of	9045
the total of the amounts originally calculated under divisions (C)	9046
and (E) of section 3317.029 of the Revised Code.	9047

(5) In FY 2002, a district shall expend one hundred per cent	9048
of its DPIA funds for the purposes of section 3317.029 of the	9049
Revised Code.	9050

(6) Districts In each fiscal year, districts shall comply	9051
with the requirements of division (G) of section 3317.029 of the	9052
Revised Code."	9053

Section 15. That existing Section 18 of Am. Sub. H.B. 650 of	9054
the 122nd General Assembly, as most recently amended by Sub. S.B.	9055
245 of the 123rd General Assembly, is hereby repealed.	9056

Section 16. That Section 17 of Am. Sub. H.B. 282 of the 123rd	9057
General Assembly, as most recently amended by Sub. S.B. 245 of the	9058
123rd General Assembly, be amended to read as follows:	9059

"       Sec. 17.  (A) As used in this section:

9060

(1) "FY 1999 state aid" means the total amount of state money	9061
received by a joint vocational school district under the version	9062
of sections 3317.16 and 3317.162 of the Revised Code in effect for	9063
that fiscal year, minus the amounts paid for driver education and	9064
adult education.	9065

(2) "FY 2000 state aid," "FY 2001 state aid," and "FY 2002	9066
state aid" mean the total amount of state money received by a	9067
joint vocational school district in the applicable fiscal year	9068
under divisions (B) to (D) of the version of section 3317.16 of	9069
the Revised Code in effect for the applicable fiscal year and	9070
division (R) of the version of section 3317.024 of the Revised	9071
Code in effect for the applicable fiscal year.	9072

(3) "FY 2000 actual aid" and "FY 2001 actual aid" mean the	9073
amount of state aid described in division (A)(2) of this section	9074
that was actually paid to a joint vocational school district in	9075
the applicable fiscal year after the application of division (B)	9076
or (C) of this section.	9077

(4) "Formula ADM" has the same meaning as in section 3317.02	9078
of the Revised Code.	9079

(5) "FY 1999 ADM" means the average daily membership	9080
certified by the joint vocational school district for fiscal year	9081
1999 under division (D) of the version of section 3317.03 of the	9082
Revised Code in effect for that year.	9083

(B) In fiscal year 2000, notwithstanding any provision of	9084
law to the contrary, no joint vocational school district shall	9085
receive FY 2000 state aid that is more than the greater of the	9086
following:	9087

(1) 111.5 % per cent of its FY 1999 state aid;

9088

(2) [1.095 X (FY 1999 state aid/FY 1999 ADM)] X fiscal year	9089
2000 formula ADM.	9090

If a joint vocational school district's projected FY 2000	9091
state aid is more than the greater of division (B)(1) or (2) of	9092
this section, the district shall receive only the greater of	9093
division (B)(1) or (2) of this section in fiscal year 2000.	9094

(C) In fiscal year 2001, notwithstanding any provision of	9095
law to the contrary, no joint vocational school district shall	9096
receive FY 2001 state aid that is more than the greater of the	9097
following:	9098

(1) 112% per cent of its FY 2000 actual aid;

9099

(2) [1.10 X (FY 2000 actual aid/fiscal year 2000 formula	9100
ADM)] X fiscal year 2001 formula ADM.	9101

If a joint vocational school district's projected FY 2001	9102
state aid is more than the greater of division (C)(1) or (2) of	9103
this section, the district shall receive only the greater of	9104
division (C)(1) or (2) of this section in fiscal year 2001.	9105

(D) In fiscal year 2002, notwithstanding any provision of	9106
law to the contrary, no joint vocational school district shall	9107
receive FY 2002 state aid that is more than the greater of the	9108
following:	9109

(1) 112% per cent of its FY 2001 state aid;

9110

(2) [1.10 X (FY 2001 actual aid/fiscal year 2001 formula	9111
ADM)] X fiscal year 2002 formula ADM.	9112

If a joint vocational school district's projected FY 2002	9113
state aid is more than the greater of division (D)(1) or (2) of	9114
this section, the district shall receive only the greater of	9115
division (D)(1) or (2) of this section in fiscal year 2002."	9116

Section 17. That existing Section 17 of Am. Sub. H.B. 282 of	9117
the 123rd General Assembly, as most recently amended by Sub. S.B.	9118
245 of the 123rd General Assembly, is hereby repealed.	9119

Section 18.  LEASE PAYMENTS TO OPFC, OBA, AND TREASUER

9120

Certain appropriations are in this act for the purpose of	9121
making lease payments pursuant to leases and agreements relating	9122
to bonds or notes issued by the Ohio Building Authority or the	9123
Treasurer of State, or previously by the Ohio Public Facilities	9124
Commission, pursuant to the Ohio Constitution and acts of the	9125
General Assembly. If it is determined that additional	9126
appropriations are necessary for this purpose, such amounts are	9127
appropriated.	9128

Section 19. GENERAL OBLIGATION DEBT SERVICE PAYMENTS

9129

Certain appropriations are in this act for the purpose of	9130
paying debt service and financing costs on general obligation	9131
bonds or notes of the state issued pursuant to the Ohio	9132
Constitution and Acts of the General Assembly. If it is	9133
determined that additional appropriations are necessary for this	9134
purpose, such amounts are appropriated.	9135

Section 20.  Except as otherwise specifically provided in	9136
this act, the codified sections of law amended or enacted in this	9137
act, and the items of law of which the codified sections of law	9138
amended or enacted in this act are composed, are subject to the	9139
referendum. Therefore, under Ohio Constitution, Article II,	9140
Section 1c and section 1.471 of the Revised Code, the codified	9141
sections of law amended or enacted by this act, and the items of	9142
law of which the codified sections of law as amended or enacted by	9143
this act are composed, take effect on the ninety-first day after	9144
this act is filed with the Secretary of State. If, however, a	9145
referendum petition is filed against any such codified section of	9146
law as amended or enacted by this act, or against any item of law	9147
of which any such codified section of law as amended or enacted by	9148
this act is composed, the codified section of law as amended or	9149
enacted, or item of law, unless rejected at the referendum, takes	9150
effect at the earliest time permitted by law.	9151

Section 21.  The repeal by this act of section 307.031 of	9152
the Revised Code is subject to the referendum. Therefore, under	9153
Ohio Constitution, Article II, Section 1c and section 1.471 of the	9154
Revised Code, the repeal by this act of section 307.031 of the	9155
Revised Code takes effect on the ninety-first day after this act	9156
is filed with the Secretary of State. If, however, a referendum	9157
petition is filed against the repeal, the repeal, unless rejected	9158
at the referendum, takes effect at the earliest time permitted by	9159
law.	9160

Section 22. Sections 3314.08, 3317.012, 3317.013, 3317.02,	9161
3317.022, 3317.023, 3317.029, 3317.0212, 3317.03, 3317.05,	9162
3317.051, 3317.161 (3317.052), 3317.162 (3317.053), 3317.11,	9163
3317.16, 3317.20, 3323.09, 3323.091, 5126.05, and 5126.12 of the	9164
Revised Code as amended or enacted by this act, and the items of	9165
law of which such sections as amended or enacted by this act are	9166
composed, are not subject to the referendum. Therefore, under	9167
Ohio Constitution, Article II, Section 1d and section 1.471 of the	9168
Revised Code, such sections as amended or enacted by this act, and	9169
the items of law of which such sections as amended or enacted by	9170
this act are composed, go into immediate effect when this act	9171
becomes law.	9172

Section 23.  Except as otherwise specifically provided in	9173
this act, the uncodified sections of law amended or enacted in	9174
this act, and the items of law of which the uncodified sections of	9175
law amended or enacted in this act are composed, are not subject	9176
to the referendum. Therefore, under Ohio Constitution, Article	9177
II, Section 1d and section 1.471 of the Revised Code, the	9178
uncodified sections of law amended or enacted in this act, and the	9179
items of law of which the uncodified sections of law amended or	9180
enacted in this act are composed, go into immediate effect when	9181
this act becomes law.	9182

Section 24. The amendment by this act of Section 18 of Am.	9183
Sub. H.B. 650 of the 122nd General Assembly is not subject to the	9184
referendum. Therefore, under Ohio Constitution, Article II,	9185
Section 1d and section 1.471 of the Revised Code, the amendment	9186
goes into immediate effect when this act becomes law.	9187

Section 25.  Uncodified sections of law amended or enacted in	9188
this act, and items of law contained within the uncodified	9189
sections of law amended or enacted in this act, that are marked	9190
with an asterisk are subject to the referendum. Therefore, under	9191
Ohio Constitution, Article II, Section 1c and section 1.471 of the	9192
Revised Code, the uncodified sections and items of law marked with	9193
an asterisk take effect on the ninety-first day after this act is	9194
filed with the Secretary of State. If, however, a referendum	9195
petition is filed against an uncodified section or item of law	9196
marked with an asterisk, the uncodified section or item of law	9197
marked with an asterisk, unless rejected at the referendum, takes	9198
effect at the earliest time permitted by law.	9199

If the amending and existing repeal clauses commanding an	9200
amendment of an uncodified section of law are both marked with	9201
asterisks, the uncodified section as amended is deemed also to	9202
have been marked with an asterisk.	9203

An asterisk marking an uncodified section or item of law has	9204
the form *.	9205

This section defines the meaning and form of, but is not	9206
itself to be considered marked with, an asterisk.	9207

Section 26.  If the amendment or enactment in this act of a	9208
codified or uncodified section of law is subject to the	9209
referendum, the corresponding indications in the amending,	9210
enacting, or existing repeal clauses commanding the amendment or	9211
enactment also are subject to the referendum, along with the	9212
amendment or enactment. If the amendment or enactment by this act	9213
of a codified or uncodified section of law is not subject to the	9214
referendum, the corresponding indications in the amending,	9215
enacting, or existing repeal clauses commanding the amendment or	9216
enactment also are not subject to the referendum, the same as the	9217
amendment or enactment.	9218

Section 27.  An item, other than an amending, enacting, or	9219
repealing clause, that composes the whole or part of an uncodified	9220
section contained in this act has no effect after June 30, 2003,	9221
unless its context clearly indicates otherwise.	9222

Section 28.  Section 3317.03 of the Revised Code is	9223
presented in this act as a composite of the section as amended by	9224
both Am. Sub. H.B. 640 and Sub. S.B. 173 of the 123rd General	9225
Assembly. The General Assembly, applying the principle stated in	9226
division (B) of section 1.52 of the Revised Code that amendments	9227
are to be harmonized if reasonably capable of simultaneous	9228
operation, finds that the composite is the resulting version of	9229
the section in effect prior to the effective date of the section	9230
as presented in this act.	9231

This section is not subject to the referendum because of its	9232
relationship to section 3317.03 of the Revised Code and therefore	9233
goes into immediate effect when this act becomes law.	9234

Section 29.  If any item of law that constitutes the whole or	9235
part of a codified or uncodified section of law contained in this	9236
act, or if any application of any item of law that constitutes the	9237
whole or part of a codified or uncodified section of law contained	9238
in this act, is held invalid, the invalidity does not affect other	9239
items of law or applications of item of law that can be given	9240
effect without the invalid item of law or application. To this	9241
end, the items of law of which the codified and uncodified	9242
sections contained in this act are composed, and their	9243
applications, are independent and severable.	9244