REPRESENTATIVE Hoops

To amend sections 3318.05, 3318.052, 3318.08,

1

3318.44, and 5705.21 of the Revised Code to change

2

the statutory designation of school district

3

permanent improvement levies that may be levied

4

continuously.

5

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

Section 1. That sections 3318.05, 3318.052, 3318.08, 3318.44,	6
and 5705.21 of the Revised Code be amended to read as follows:	7

Sec. 3318.05.  The conditional approval of the Ohio school	8
facilities commission for a project shall lapse and the amount	9
reserved and encumbered for such project shall be released unless	10
the school district board accepts such conditional approval within	11
one hundred twenty days following the date of certification of the	12
conditional approval to the school district board and the electors	13
of the school district vote favorably on both of the propositions	14
described in divisions (A) and (B) of this section within one year	15
of the date of such certification, except that a school district	16
described in division (C) of this section does not need to submit	17
the proposition described in division (B) of this section. The	18
propositions described in divisions (A) and (B) of this section	19
shall be combined in a single proposal. If the district board or	20
the district's electors fail to meet such requirements and the	21
amount reserved and encumbered for the district's project is	22
released, the district shall be given first priority for project	23
funding as such funds become available.	24

(A) On the question of issuing bonds of the school district	25
board, for the school district's portion of the basic project	26
cost, in an amount equal to the school district's portion of the	27
basic project cost less the amount of the proceeds of any	28
securities authorized or to be authorized under division (J) of	29
section 133.06 of the Revised Code and dedicated by the school	30
district board to payment of the district's portion of the basic	31
project cost; and	32

(B) On the question of levying a tax the proceeds of which	33
shall be used to pay the cost of maintaining the classroom	34
facilities included in the project. Such tax shall be at the rate	35
of not less than one-half mill for each dollar of valuation for a	36
period of twenty-three years, subject to any extension approved	37
under section 3318.061 of the Revised Code.	38

(C) If a school district has in place a tax levied under	39
section 5705.21 of the Revised Code for general ongoing permanent	40
improvements and the proceeds of such tax can be used for	41
maintenance, the school district need not levy the additional tax	42
required under division (B) of this section, provided the school	43
district board includes in the agreement entered into under	44
section 3318.08 of the Revised Code provisions earmarking an	45
amount from the proceeds of that permanent improvement tax for	46
maintenance of classroom facilities equivalent to the amount of	47
the additional tax and for the equivalent number of years	48
otherwise required under this section.	49

(D) Proceeds of the tax to be used for maintenance of the	50
classroom facilities under either division (B) or (C) of this	51
section shall be deposited into a separate fund established by the	52
school district for such purpose.	53

Sec. 3318.052. At any time after the electors of a school	54
district have approved either or both a property tax levied under	55
section 5705.21 or 5705.218 of the Revised Code for the purpose of	56
general ongoing permanent improvements or a school district income	57
tax levied under Chapter 5748. of the Revised Code, the proceeds	58
of which, pursuant to the ballot measures approved by the	59
electors, are not so restricted that they cannot be used to pay	60
the costs of a project or maintaining classroom facilities, the	61
school district board may:	62

(A) Within one year following the date of the certification	63
of the conditional approval of the school district's classroom	64
facilities project by the Ohio school facilities commission, enter	65
into a written agreement with the commission, which may be part of	66
an agreement entered into under section 3318.08 of the Revised	67
Code, and in which the school district board covenants and agrees	68
to do one or both of the following:	69

(1) Apply a specified amount of available proceeds of that	70
property tax levy, of that school district income tax, or of	71
securities issued under this section, or of proceeds from any two	72
or more of those sources, to pay all or part of the district's	73
portion of the basic project cost of its classroom facilities	74
project;	75

(2) Apply available proceeds of either or both a property tax	76
levied under section 5705.21 or 5705.218 of the Revised Code in	77
effect for a continuing period of time, or of a school district	78
income tax levied under Chapter 5748. of the Revised Code in	79
effect for a continuing period of time to the payment of costs of	80
maintaining the classroom facilities.	81

(B) Receive, as a credit against the amount of bonds required	82
under sections 3318.05 and 3318.06 of the Revised Code, to be	83
approved by the electors of the district and issued by the	84
district board for the district's portion of the basic project	85
cost of its classroom facilities project in order for the district	86
to receive state assistance for the project, an amount equal to	87
the specified amount that the district board covenants and agrees	88
with the commission to apply as set forth in division (A)(1) of	89
this section;	90

(C) Receive, as a credit against the amount of the tax levy	91
required under sections 3318.05 and 3318.06 of the Revised Code,	92
to be approved by the electors of the district to pay the costs of	93
maintaining the classroom facilities in order to receive state	94
assistance for the classroom facilities project, an amount	95
equivalent to the specified amount of proceeds the school district	96
board covenants and agrees with the commission to apply as	97
referred to in division (A)(2) of this section;	98

(D) Apply proceeds of either or both a school district income	99
tax levied under Chapter 5748. of the Revised Code that may	100
lawfully be used to pay the costs of a classroom facilities	101
project or of a tax levied under section 5705.21 or 5705.218 of	102
the Revised Code to the payment of debt charges on and financing	103
costs related to securities issued under this section;	104

(E) Issue securities to provide moneys to pay all or part of	105
the district's portion of the basic project cost of its classroom	106
facilities project in accordance with an agreement entered into	107
under division (A) of this section. Securities issued under this	108
section shall be Chapter 133. securities and may be issued as	109
general obligation securities or issued in anticipation of a	110
school district income tax or as property tax anticipation notes	111
under section 133.24 of the Revised Code. The district board's	112
resolution authorizing the issuance and sale of general obligation	113
securities under this section shall conform to the applicable	114
requirements of section 133.22 or 133.23 of the Revised Code.	115
Securities issued under this section shall have principal payments	116
during each year after the year of issuance over a period of not	117
more than twenty-three years and, if so determined by the district	118
board, during the year of issuance. Securities issued under this	119
section shall not be included in the calculation of net	120
indebtedness of the district under section 133.06 of the Revised	121
Code, if the resolution of the district board authorizing their	122
issuance and sale includes covenants to appropriate annually from	123
lawfully available proceeds of a property tax levied under section	124
5705.21 or 5705.218 of the Revised Code or of a school district	125
income tax levied under Chapter 5748. of the Revised Code and to	126
continue to levy and collect the tax in amounts necessary to pay	127
the debt charges on and financing costs related to the securities	128
as they become due. No property tax levied under section 5705.21	129
or 5705.218 of the Revised Code and no school district income tax	130
levied under Chapter 5748. of the Revised Code that is pledged, or	131
that the school district board has covenanted to levy, collect,	132
and appropriate annually, to pay the debt charges on and financing	133
costs related to securities issued under this section shall be	134
repealed while those securities are outstanding. If such a tax is	135
reduced by the electors of the district or by the district board	136
while those securities are outstanding, the school district board	137
shall continue to levy and collect the tax under the authority of	138
the original election authorizing the tax at a rate in each year	139
that the board reasonably estimates will produce an amount in that	140
year equal to the debt charges on the securities in that year,	141
except that in the case of a school district income tax that	142
amount shall be rounded up to the nearest one-fourth of one per	143
cent.	144

No state moneys shall be released for a project to which this	145
section applies until the proceeds of the tax securities issued	146
under this section that are dedicated for the payment of the	147
district portion of the basic project cost of its classroom	148
facilities project are first deposited into the district's project	149
construction fund.	150

Sec. 3318.08.  Except in the case of a joint vocational	151
school district that receives assistance under sections 3318.40 to	152
3318.45 of the Revised Code, if the requisite favorable vote on	153
the election is obtained, or if the school district board has	154
resolved to apply the proceeds of a property tax levy or the	155
proceeds of an income tax, or a combination of proceeds from such	156
taxes, as authorized in section 3318.052 of the Revised Code, the	157
Ohio school facilities commission, upon certification to it of	158
either the results of the election or the resolution under section	159
3318.052 of the Revised Code, shall enter into a written agreement	160
with the school district board for the construction and sale of	161
the project. In the case of a joint vocational school district	162
that receives assistance under sections 3318.40 to 3318.45 of the	163
Revised Code, if the school district board of education and the	164
school district electors have satisfied the conditions prescribed	165
in division (D)(1) of section 3318.41 of the Revised Code, the	166
commission shall enter into an agreement with the school district	167
board for the construction and sale of the project. In either	168
case, the agreement shall include, but need not be limited to, the	169
following provisions:	170

(A) The sale and issuance of bonds or notes in anticipation	171
thereof, as soon as practicable after the execution of the	172
agreement, in an amount equal to the school district's portion of	173
the basic project cost, including any securities authorized under	174
division (J) of section 133.06 of the Revised Code and dedicated	175
by the school district board to payment of the district's portion	176
of the basic project cost of the project; provided, that if at	177
that time the county treasurer of each county in which the school	178
district is located has not commenced the collection of taxes on	179
the general duplicate of real and public utility property for the	180
year in which the controlling board approved the project, the	181
school district board shall authorize the issuance of a first	182
installment of bond anticipation notes in an amount specified by	183
the agreement, which amount shall not exceed an amount necessary	184
to raise the net bonded indebtedness of the school district as of	185
the date of the controlling board's approval to within five	186
thousand dollars of the required level of indebtedness for the	187
preceding year. In the event that a first installment of bond	188
anticipation notes is issued, the school district board shall, as	189
soon as practicable after the county treasurer of each county in	190
which the school district is located has commenced the collection	191
of taxes on the general duplicate of real and public utility	192
property for the year in which the controlling board approved the	193
project, authorize the issuance of a second and final installment	194
of bond anticipation notes or a first and final issue of bonds.	195

The combined value of the first and second installment of	196
bond anticipation notes or the value of the first and final issue	197
of bonds shall be equal to the school district's portion of the	198
basic project cost. The proceeds of any such bonds shall be used	199
first to retire any bond anticipation notes. Otherwise, the	200
proceeds of such bonds and of any bond anticipation notes, except	201
the premium and accrued interest thereon, shall be deposited in	202
the school district's project construction fund. In determining	203
the amount of net bonded indebtedness for the purpose of fixing	204
the amount of an issue of either bonds or bond anticipation notes,	205
gross indebtedness shall be reduced by moneys in the bond	206
retirement fund only to the extent of the moneys therein on the	207
first day of the year preceding the year in which the controlling	208
board approved the project. Should there be a decrease in the tax	209
valuation of the school district so that the amount of	210
indebtedness that can be incurred on the tax duplicates for the	211
year in which the controlling board approved the project is less	212
than the amount of the first installment of bond anticipation	213
notes, there shall be paid from the school district's project	214
construction fund to the school district's bond retirement fund to	215
be applied against such notes an amount sufficient to cause the	216
net bonded indebtedness of the school district, as of the first	217
day of the year following the year in which the controlling board	218
approved the project, to be within five thousand dollars of the	219
required level of indebtedness for the year in which the	220
controlling board approved the project. The maximum amount of	221
indebtedness to be incurred by any school district board as its	222
share of the cost of the project is either an amount that will	223
cause its net bonded indebtedness, as of the first day of the year	224
following the year in which the controlling board approved the	225
project, to be within five thousand dollars of the required level	226
of indebtedness, or an amount equal to the required percentage of	227
the basic project costs, whichever is greater. All bonds and bond	228
anticipation notes shall be issued in accordance with Chapter 133.	229
of the Revised Code, and notes may be renewed as provided in	230
section 133.22 of the Revised Code.	231

(B) The transfer of such funds of the school district board	232
available for the project, together with the proceeds of the sale	233
of the bonds or notes, except premium, accrued interest, and	234
interest included in the amount of the issue, to the school	235
district's project construction fund;	236

(C) For all school districts except joint vocational school	237
districts that receive assistance under sections 3318.40 to	238
3318.45 of the Revised Code, the following provisions as	239
applicable:	240

(1) If section 3318.052 of the Revised Code applies, the	241
earmarking of the proceeds of a tax levied under section 5705.21	242
of the Revised Code for general ongoing permanent improvements or	243
under section 5705.218 of the Revised Code for the purpose of	244
permanent improvements, or the proceeds of a school district	245
income tax levied under Chapter 5748. of the Revised Code, or the	246
proceeds from a combination of those two taxes, in an amount to	247
pay all or part of the service charges on bonds issued to pay the	248
school district portion of the project and an amount equivalent to	249
all or part of the tax required under division (B) of section	250
3318.05 of the Revised Code;	251

(2) If section 3318.052 of the Revised Code does not apply,	252
either of the following:	253

(a) The levy of the tax authorized at the election for the	254
payment of maintenance costs, as specified in division (B) of	255
section 3318.05 of the Revised Code;	256

(b) If the school district electors have approved a	257
continuing tax for general ongoing permanent improvements under	258
section 5705.21 of the Revised Code and that tax can be used for	259
maintenance, the earmarking of an amount of the proceeds from such	260
tax for maintenance of classroom facilities as specified in	261
division (B) of section 3318.05 of the Revised Code.	262

(D) For joint vocational school districts that receive	263
assistance under sections 3318.40 to 3318.45 of the Revised Code,	264
provision for deposit of school district moneys dedicated to	265
maintenance of the classroom facilities acquired under those	266
sections as prescribed in section 3318.43 of the Revised Code;	267

(E) Dedication of any local donated contribution as provided	268
for under section 3318.084 of the Revised Code, including a	269
schedule for depositing such moneys applied as an offset of the	270
district's obligation to levy the tax described in division (B) of	271
section 3318.05 of the Revised Code as required under division	272
(D)(2) of section 3318.084 of the Revised Code;	273

(F) Ownership of or interest in the project during the period	274
of construction, which shall be divided between the commission and	275
the school district board in proportion to their respective	276
contributions to the school district's project construction fund;	277

(G) Maintenance of the state's interest in the project until	278
any obligations issued for the project under section 3318.26 of	279
the Revised Code are no longer outstanding;	280

(H) The insurance of the project by the school district from	281
the time there is an insurable interest therein and so long as the	282
state retains any ownership or interest in the project pursuant to	283
division (F) of this section, in such amounts and against such	284
risks as the commission shall require; provided, that the cost of	285
any required insurance until the project is completed shall be a	286
part of the basic project cost;	287

(I) The certification by the director of budget and	288
management that funds are available and have been set aside to	289
meet the state's share of the basic project cost as approved by	290
the controlling board pursuant to either section 3318.04 or	291
division (B)(1) of section 3318.41 of the Revised Code;	292

(J) Authorization of the school district board to advertise	293
for and receive construction bids for the project, for and on	294
behalf of the commission, and to award contracts in the name of	295
the state subject to approval by the commission;	296

(K) Provisions for the disbursement of moneys from the school	297
district's project account upon issuance by the commission or the	298
commission's designated representative of vouchers for work done	299
to be certified to the commission by the treasurer of the school	300
district board;	301

(L) Disposal of any balance left in the school district's	302
project construction fund upon completion of the project;	303

(M) Limitations upon use of the project or any part of it so	304
long as any obligations issued to finance the project under	305
section 3318.26 of the Revised Code are outstanding;	306

(N) Provision for vesting the state's interest in the project	307
to the school district board when the obligations issued to	308
finance the project under section 3318.26 of the Revised Code are	309
outstanding;	310

(O) Provision for deposit of an executed copy of the	311
agreement in the office of the commission;	312

(P) Provision for termination of the contract and release of	313
the funds encumbered at the time of the conditional approval, if	314
the proceeds of the sale of the bonds of the school district board	315
are not paid into the school district's project construction fund	316
and if bids for the construction of the project have not been	317
taken within such period after the execution of the agreement as	318
may be fixed by the commission;	319

(Q) Provision for the school district to maintain the project	320
in accordance with a plan approved by the commission;	321

(R)(1) For all school districts except a district undertaking	322
a project under section 3318.38 of the Revised Code or a joint	323
vocational school district undertaking a project under sections	324
3318.40 to 3318.45 of the Revised Code, provision that all state	325
funds reserved and encumbered to pay the state share of the cost	326
of the project pursuant to section 3318.03 of the Revised Code be	327
spent on the construction or acquisition of the project prior to	328
the expenditure of any funds provided by the school district to	329
pay for its share of the project cost, unless the school district	330
certifies to the commission that expenditure by the school	331
district is necessary to maintain the tax-exempt status of notes	332
or bonds issued by the school district to pay for its share of the	333
project cost or to comply with applicable temporary investment	334
periods or spending exceptions to rebate as provided for under	335
federal law in regard to those notes or bonds, in which cases, the	336
school district may commit to spend, or spend, a portion of the	337
funds it provides;	338

(2) For a school district undertaking a project under section	339
3318.38 of the Revised Code or a joint vocational school district	340
undertaking a project under sections 3318.40 to 3318.45 of the	341
Revised Code, provision that the state funds reserved and	342
encumbered and the funds provided by the school district to pay	343
the basic project cost of any segment of the project, or of the	344
entire project if it is not divided into segments, be spent on the	345
construction and acquisition of the project simultaneously in	346
proportion to the state's and the school district's respective	347
shares of that basic project cost as determined under section	348
3318.032 of the Revised Code or, if the district is a joint	349
vocational school district, under section 3318.42 of the Revised	350
Code.	351

(S) A provision stipulating that the commission may prohibit	352
the district from proceeding with any project if the commission	353
determines that the site is not suitable for construction	354
purposes. The commission may perform soil tests in its	355
determination of whether a site is appropriate for construction	356
purposes.	357

(T) A provision stipulating that, unless otherwise authorized	358
by the commission, any contingency reserve portion of the	359
construction budget prescribed by the commission shall be used	360
only to pay costs resulting from unforeseen job conditions, to	361
comply with rulings regarding building and other codes, to pay	362
costs related to design clarifications or corrections to contract	363
documents, and to pay the costs of settlements or judgments	364
related to the project as provided under section 3318.086 of the	365
Revised Code;	366

(U) Provision stipulating that for continued release of	367
project funds the school district board shall comply with section	368
3313.41 of the Revised Code throughout the project and shall	369
notify the department of education and the Ohio community school	370
association when the board plans to dispose of facilities by sale	371
under that section;	372

(V) Provision that the commission shall not approve a	373
contract for demolition of a facility until the school district	374
board has complied with section 3313.41 of the Revised Code	375
relative to that facility, unless demolition of that facility is	376
to clear a site for construction of a replacement facility	377
included in the district's project.	378

Sec. 3318.44. (A) A joint vocational school district board of	379
education may generate the school district's portion of the basic	380
project cost of its project under sections 3318.40 to 3318.45 of	381
the Revised Code using any combination of the following means if	382
lawfully employed for the acquisition of classroom facilities:	383

(1) The issuance of securities in accordance with Chapter	384
133. and section 3311.20 of the Revised Code;	385

(2) Local donated contributions as authorized under section	386
3318.084 of the Revised Code;	387

(3) A levy for permanent improvements under section 3311.21	388
or 5705.21 of the Revised Code;	389

(4) Bonds issued pursuant to division (B) of this section.

390

(B) By resolution adopted by a majority of all its members, a	391
school district board in order to pay all or part of the school	392
district's portion of its basic project cost may apply the	393
proceeds of a tax levied under section 5705.21 of the Revised Code	394
to general ongoing permanent improvements if the proceeds of that	395
levy lawfully may be used for general construction, renovation,	396
repair, or maintenance of classroom facilities to leverage bonds	397
adequate to pay all or part of the school district portion of the	398
basic project cost of the school district's project under sections	399
3318.40 to 3318.45 of the Revised Code or to generate an amount	400
equivalent to all or part of the amount required under section	401
3318.43 of the Revised Code to be used for maintenance of	402
classroom facilities acquired under the project. Bonds issued	403
under this division shall be Chapter 133. securities, but the	404
issuance of the bonds shall not be subject to a vote of the	405
electors of the school district as long as the tax proceeds	406
earmarked for payment of the service charges on the bonds may	407
lawfully be used for that purpose.	408

No state moneys shall be released for a project to which this	409
division applies until the proceeds of any bonds issued under this	410
division that are dedicated for payment of the school district's	411
portion of the basic project cost are first deposited into the	412
school district's project construction fund.	413

(C) A school district board of education may adopt a	414
resolution proposing that any of the following questions be	415
combined with a question specified in section 3318.45 of the	416
Revised Code:	417

(1) A bond issue question under section 133.18 of the Revised	418
Code;	419

(2) A tax levy question under section 3311.21 of the Revised	420
Code;	421

(3) A tax levy question under section 5705.21 of the Revised	422
Code.	423

Any question described in divisions (C)(1) to (3) of this	424
section that is combined with a question proposed under section	425
3318.45 of the Revised Code shall be for the purpose of either	426
paying for any permanent improvement, as defined in section 133.01	427
of the Revised Code, or generating operating revenue specifically	428
for the facilities acquired under the school district's project	429
under Chapter 3318. of the Revised Code or for both to the extent	430
such purposes are permitted by the sections of law under which	431
each is proposed.	432

(D) The board of education of a joint vocational school	433
district that receives assistance under this section may enter	434
into an agreement for joint issuance of bonds as provided for in	435
section 3318.085 of the Revised Code.	436

Sec. 5705.21.  (A) At any time the board of education of any	437
city, local, exempted village, cooperative education, or joint	438
vocational school district by a vote of two-thirds of all its	439
members may declare by resolution that the amount of taxes which	440
may be raised within the ten-mill limitation by levies on the	441
current tax duplicate will be insufficient to provide an adequate	442
amount for the necessary requirements of the school district, that	443
it is necessary to levy a tax in excess of such limitation for one	444
of the purposes specified in division (A), (D), (F), (H), or (DD)	445
of section 5705.19 of the Revised Code, for general, on-going	446
permanent improvements, for the purpose of operating a cultural	447
center, or for the purpose of providing education technology, and	448
that the question of such additional tax levy shall be submitted	449
to the electors of the school district at a special election on a	450
day to be specified in the resolution.	451

As used in this section, "cultural center" means a	452
freestanding building, separate from a public school building,	453
that is open to the public for educational, musical, artistic, and	454
cultural purposes.	455

As used in this section, "education technology" means, but is	456
not limited to, computer hardware, equipment, materials, and	457
accessories, equipment used for two-way audio or video, and	458
software.	459

The submission of questions to the electors under this	460
section is subject to the limitation on the number of election	461
dates established by section 5705.214 of the Revised Code.	462

(B) Such resolution shall be confined to a single purpose and	463
shall specify the amount of the increase in rate that it is	464
necessary to levy, the purpose of the levy, and the number of	465
years during which the increase in rate shall be in effect. The	466
number of years may be any number not exceeding five or, if the	467
levy is for current expenses of the district or for general,	468
on-going permanent improvements, for a continuing period of time.	469
The resolution shall specify the date of holding such election,	470
which shall not be earlier than seventy-five days after the	471
adoption and certification of the resolution and which shall be	472
consistent with the requirements of section 3501.01 of the Revised	473
Code. The resolution may propose to renew one or more existing	474
levies imposed under this section or to increase or decrease a	475
single levy imposed under this section.	476

If the resolution proposes to renew two or more existing	477
levies, the levies shall be levied for the same purpose. The	478
resolution shall identify those levies and the rates at which they	479
are levied. The resolution also shall specify that the existing	480
levies shall not be extended on the tax lists after the year	481
preceding the year in which the renewal levy is first imposed,	482
regardless of the years for which those levies originally were	483
authorized to be levied.	484

The resolution shall go into immediate effect upon its	485
passage, and no publication of the resolution shall be necessary	486
other than that provided for in the notice of election. A copy of	487
the resolution shall immediately after its passing be certified to	488
the board of elections of the proper county in the manner provided	489
by section 5705.25 of the Revised Code, and that section shall	490
govern the arrangements for the submission of such question and	491
other matters concerning such election, to which that section	492
refers, except that such election shall be held on the date	493
specified in the resolution. Publication of notice of such	494
election shall be made in one or more newspapers of general	495
circulation in the county once a week for four consecutive weeks.	496
If a majority of the electors voting on the question so submitted	497
in an election vote in favor of the levy, the board of education	498
may make the necessary levy within the school district at the	499
additional rate, or at any lesser rate in excess of the ten-mill	500
limitation on the tax list, for the purpose stated in the	501
resolution. A levy for a continuing period of time may be reduced	502
pursuant to section 5705.261 of the Revised Code. The tax levy	503
shall be included in the next tax budget that is certified to the	504
county budget commission.	505

(C)(1) After the approval of a levy on the current tax list	506
and duplicate for current expenses, for recreational purposes, for	507
community centers provided for in section 755.16 of the Revised	508
Code, or for a public library of the district and prior to the	509
time when the first tax collection from the levy can be made, the	510
board of education may anticipate a fraction of the proceeds of	511
the levy and issue anticipation notes in a principal amount not	512
exceeding fifty per cent of the total estimated proceeds of the	513
levy to be collected during the first year of the levy.	514

(2) After the approval of a levy for permanent improvements	515
having the purpose specified in division (F) of section 5705.19 of	516
the Revised Code, the board of education may anticipate a fraction	517
of the proceeds of the levy and issue anticipation notes in a	518
principal amount not exceeding fifty per cent of the total	519
estimated proceeds of the levy remaining to be collected in each	520
year over a period of five years after the issuance of the notes.	521

The notes shall be issued as provided in section 133.24 of	522
the Revised Code, shall have principal payments during each year	523
after the year of their issuance over a period not to exceed five	524
years, and may have a principal payment in the year of their	525
issuance.	526

(3) After approval of a levy for general, on-going permanent	527
improvements for a continuing period of time, the board of	528
education may anticipate a fraction of the proceeds of the levy	529
and issue anticipation notes in a principal amount not exceeding	530
fifty per cent of the total estimated proceeds of the levy to be	531
collected in each year over a specified period of years, not	532
exceeding ten, after the issuance of the notes.	533

The notes shall be issued as provided in section 133.24 of	534
the Revised Code, shall have principal payments during each year	535
after the year of their issuance over a period not to exceed ten	536
years, and may have a principal payment in the year of their	537
issuance.	538

Section 2. That existing sections 3318.05, 3318.052, 3318.08,	539
3318.44, and 5705.21 of the Revised Code are hereby repealed.	540