REPRESENTATIVES Hoops, Allen, Calvert, C. Evans, D. Evans, Flowers, Hartnett, Jerse, Martin, Miller, T. Patton, Peterson, Schmidt, Strahorn

To amend sections 3318.05, 3318.052, 3318.08,

1

3318.44, 5705.192, and 5705.21 of the Revised Code

2

to permit school district permanent improvements

3

levies imposed for a limited period of time to be

4

renewed for a continuing period of time.

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
5705.192, and 5705.21 of the Revised Code be amended to read as	7
follows:	8

Sec. 3318.05.  The conditional approval of the Ohio school	9
facilities commission for a project shall lapse and the amount	10
reserved and encumbered for such project shall be released unless	11
the school district board accepts such conditional approval within	12
one hundred twenty days following the date of certification of the	13
conditional approval to the school district board and the electors	14
of the school district vote favorably on both of the propositions	15
described in divisions (A) and (B) of this section within one year	16
of the date of such certification, except that a school district	17
described in division (C) of this section does not need to submit	18
the proposition described in division (B) of this section. The	19
propositions described in divisions (A) and (B) of this section	20
shall be combined in a single proposal. If the district board or	21
the district's electors fail to meet such requirements and the	22
amount reserved and encumbered for the district's project is	23
released, the district shall be given first priority for project	24
funding as such funds become available.	25

(A) On the question of issuing bonds of the school district	26
board, for the school district's portion of the basic project	27
cost, in an amount equal to the school district's portion of the	28
basic project cost less the amount of the proceeds of any	29
securities authorized or to be authorized under division (J) of	30
section 133.06 of the Revised Code and dedicated by the school	31
district board to payment of the district's portion of the basic	32
project cost; and	33

(B) On the question of levying a tax the proceeds of which	34
shall be used to pay the cost of maintaining the classroom	35
facilities included in the project. Such tax shall be at the rate	36
of not less than one-half mill for each dollar of valuation for a	37
period of twenty-three years, subject to any extension approved	38
under section 3318.061 of the Revised Code.	39

(C) If a school district has in place a tax levied under	40
section 5705.21 of the Revised Code for general ongoing permanent	41
improvements for a continuing period of time and the proceeds of	42
such tax can be used for maintenance, the school district need not	43
levy the additional tax required under division (B) of this	44
section, provided the school district board includes in the	45
agreement entered into under section 3318.08 of the Revised Code	46
provisions earmarking an amount from the proceeds of that	47
permanent improvement tax for maintenance of classroom facilities	48
equivalent to the amount of the additional tax and for the	49
equivalent number of years otherwise required under this section.	50

(D) Proceeds of the tax to be used for maintenance of the	51
classroom facilities under either division (B) or (C) of this	52
section shall be deposited into a separate fund established by the	53
school district for such purpose.	54

Sec. 3318.052. At any time after the electors of a school	55
district have approved either or both a property tax levied under	56
section 5705.21 or 5705.218 of the Revised Code for the purpose of	57
permanent improvements, including general ongoing permanent	58
improvements, or a school district income tax levied under Chapter	59
5748. of the Revised Code, the proceeds of either of which,	60
pursuant to the ballot measures approved by the electors, are not	61
so restricted that they cannot be used to pay the costs of a	62
project or maintaining classroom facilities, the school district	63
board may:	64

(A) Within one year following the date of the certification	65
of the conditional approval of the school district's classroom	66
facilities project by the Ohio school facilities commission, enter	67
into a written agreement with the commission, which may be part of	68
an agreement entered into under section 3318.08 of the Revised	69
Code, and in which the school district board covenants and agrees	70
to do one or both of the following:	71

(1) Apply a specified amount of available proceeds of that	72
property tax levy, of that school district income tax, or of	73
securities issued under this section, or of proceeds from any two	74
or more of those sources, to pay all or part of the district's	75
portion of the basic project cost of its classroom facilities	76
project;	77

(2) Apply available proceeds of either or both a property tax	78
levied under section 5705.21 or 5705.218 of the Revised Code in	79
effect for a continuing period of time, or of a school district	80
income tax levied under Chapter 5748. of the Revised Code in	81
effect for a continuing period of time to the payment of costs of	82
maintaining the classroom facilities.	83

(B) Receive, as a credit against the amount of bonds required	84
under sections 3318.05 and 3318.06 of the Revised Code, to be	85
approved by the electors of the district and issued by the	86
district board for the district's portion of the basic project	87
cost of its classroom facilities project in order for the district	88
to receive state assistance for the project, an amount equal to	89
the specified amount that the district board covenants and agrees	90
with the commission to apply as set forth in division (A)(1) of	91
this section;	92

(C) Receive, as a credit against the amount of the tax levy	93
required under sections 3318.05 and 3318.06 of the Revised Code,	94
to be approved by the electors of the district to pay the costs of	95
maintaining the classroom facilities in order to receive state	96
assistance for the classroom facilities project, an amount	97
equivalent to the specified amount of proceeds the school district	98
board covenants and agrees with the commission to apply as	99
referred to in division (A)(2) of this section;	100

(D) Apply proceeds of either or both a school district income	101
tax levied under Chapter 5748. of the Revised Code that may	102
lawfully be used to pay the costs of a classroom facilities	103
project or of a tax levied under section 5705.21 or 5705.218 of	104
the Revised Code to the payment of debt charges on and financing	105
costs related to securities issued under this section;	106

(E) Issue securities to provide moneys to pay all or part of	107
the district's portion of the basic project cost of its classroom	108
facilities project in accordance with an agreement entered into	109
under division (A) of this section. Securities issued under this	110
section shall be Chapter 133. securities and may be issued as	111
general obligation securities or issued in anticipation of a	112
school district income tax or as property tax anticipation notes	113
under section 133.24 of the Revised Code. The district board's	114
resolution authorizing the issuance and sale of general obligation	115
securities under this section shall conform to the applicable	116
requirements of section 133.22 or 133.23 of the Revised Code.	117
Securities issued under this section shall have principal payments	118
during each year after the year of issuance over a period of not	119
more than twenty-three years and, if so determined by the district	120
board, during the year of issuance. Securities issued under this	121
section shall not be included in the calculation of net	122
indebtedness of the district under section 133.06 of the Revised	123
Code, if the resolution of the district board authorizing their	124
issuance and sale includes covenants to appropriate annually from	125
lawfully available proceeds of a property tax levied under section	126
5705.21 or 5705.218 of the Revised Code or of a school district	127
income tax levied under Chapter 5748. of the Revised Code and to	128
continue to levy and collect the tax in amounts necessary to pay	129
the debt charges on and financing costs related to the securities	130
as they become due. No property tax levied under section 5705.21	131
or 5705.218 of the Revised Code and no school district income tax	132
levied under Chapter 5748. of the Revised Code that is pledged, or	133
that the school district board has covenanted to levy, collect,	134
and appropriate annually, to pay the debt charges on and financing	135
costs related to securities issued under this section shall be	136
repealed while those securities are outstanding. If such a tax is	137
reduced by the electors of the district or by the district board	138
while those securities are outstanding, the school district board	139
shall continue to levy and collect the tax under the authority of	140
the original election authorizing the tax at a rate in each year	141
that the board reasonably estimates will produce an amount in that	142
year equal to the debt charges on the securities in that year,	143
except that in the case of a school district income tax that	144
amount shall be rounded up to the nearest one-fourth of one per	145
cent.	146

No state moneys shall be released for a project to which this	147
section applies until the proceeds of the tax securities issued	148
under this section that are dedicated for the payment of the	149
district portion of the basic project cost of its classroom	150
facilities project are first deposited into the district's project	151
construction fund.	152

Sec. 3318.08.  Except in the case of a joint vocational	153
school district that receives assistance under sections 3318.40 to	154
3318.45 of the Revised Code, if the requisite favorable vote on	155
the election is obtained, or if the school district board has	156
resolved to apply the proceeds of a property tax levy or the	157
proceeds of an income tax, or a combination of proceeds from such	158
taxes, as authorized in section 3318.052 of the Revised Code, the	159
Ohio school facilities commission, upon certification to it of	160
either the results of the election or the resolution under section	161
3318.052 of the Revised Code, shall enter into a written agreement	162
with the school district board for the construction and sale of	163
the project. In the case of a joint vocational school district	164
that receives assistance under sections 3318.40 to 3318.45 of the	165
Revised Code, if the school district board of education and the	166
school district electors have satisfied the conditions prescribed	167
in division (D)(1) of section 3318.41 of the Revised Code, the	168
commission shall enter into an agreement with the school district	169
board for the construction and sale of the project. In either	170
case, the agreement shall include, but need not be limited to, the	171
following provisions:	172

(A) The sale and issuance of bonds or notes in anticipation	173
thereof, as soon as practicable after the execution of the	174
agreement, in an amount equal to the school district's portion of	175
the basic project cost, including any securities authorized under	176
division (J) of section 133.06 of the Revised Code and dedicated	177
by the school district board to payment of the district's portion	178
of the basic project cost of the project; provided, that if at	179
that time the county treasurer of each county in which the school	180
district is located has not commenced the collection of taxes on	181
the general duplicate of real and public utility property for the	182
year in which the controlling board approved the project, the	183
school district board shall authorize the issuance of a first	184
installment of bond anticipation notes in an amount specified by	185
the agreement, which amount shall not exceed an amount necessary	186
to raise the net bonded indebtedness of the school district as of	187
the date of the controlling board's approval to within five	188
thousand dollars of the required level of indebtedness for the	189
preceding year. In the event that a first installment of bond	190
anticipation notes is issued, the school district board shall, as	191
soon as practicable after the county treasurer of each county in	192
which the school district is located has commenced the collection	193
of taxes on the general duplicate of real and public utility	194
property for the year in which the controlling board approved the	195
project, authorize the issuance of a second and final installment	196
of bond anticipation notes or a first and final issue of bonds.	197

The combined value of the first and second installment of	198
bond anticipation notes or the value of the first and final issue	199
of bonds shall be equal to the school district's portion of the	200
basic project cost. The proceeds of any such bonds shall be used	201
first to retire any bond anticipation notes. Otherwise, the	202
proceeds of such bonds and of any bond anticipation notes, except	203
the premium and accrued interest thereon, shall be deposited in	204
the school district's project construction fund. In determining	205
the amount of net bonded indebtedness for the purpose of fixing	206
the amount of an issue of either bonds or bond anticipation notes,	207
gross indebtedness shall be reduced by moneys in the bond	208
retirement fund only to the extent of the moneys therein on the	209
first day of the year preceding the year in which the controlling	210
board approved the project. Should there be a decrease in the tax	211
valuation of the school district so that the amount of	212
indebtedness that can be incurred on the tax duplicates for the	213
year in which the controlling board approved the project is less	214
than the amount of the first installment of bond anticipation	215
notes, there shall be paid from the school district's project	216
construction fund to the school district's bond retirement fund to	217
be applied against such notes an amount sufficient to cause the	218
net bonded indebtedness of the school district, as of the first	219
day of the year following the year in which the controlling board	220
approved the project, to be within five thousand dollars of the	221
required level of indebtedness for the year in which the	222
controlling board approved the project. The maximum amount of	223
indebtedness to be incurred by any school district board as its	224
share of the cost of the project is either an amount that will	225
cause its net bonded indebtedness, as of the first day of the year	226
following the year in which the controlling board approved the	227
project, to be within five thousand dollars of the required level	228
of indebtedness, or an amount equal to the required percentage of	229
the basic project costs, whichever is greater. All bonds and bond	230
anticipation notes shall be issued in accordance with Chapter 133.	231
of the Revised Code, and notes may be renewed as provided in	232
section 133.22 of the Revised Code.	233

(B) The transfer of such funds of the school district board	234
available for the project, together with the proceeds of the sale	235
of the bonds or notes, except premium, accrued interest, and	236
interest included in the amount of the issue, to the school	237
district's project construction fund;	238

(C) For all school districts except joint vocational school	239
districts that receive assistance under sections 3318.40 to	240
3318.45 of the Revised Code, the following provisions as	241
applicable:	242

(1) If section 3318.052 of the Revised Code applies, the	243
earmarking of the proceeds of a tax levied under section 5705.21	244
of the Revised Code for general ongoing permanent improvements or	245
under section 5705.218 of the Revised Code for the purpose of	246
permanent improvements, or the proceeds of a school district	247
income tax levied under Chapter 5748. of the Revised Code, or the	248
proceeds from a combination of those two taxes, in an amount to	249
pay all or part of the service charges on bonds issued to pay the	250
school district portion of the project and an amount equivalent to	251
all or part of the tax required under division (B) of section	252
3318.05 of the Revised Code;	253

(2) If section 3318.052 of the Revised Code does not apply,	254
either of the following:	255

(a) The levy of the tax authorized at the election for the	256
payment of maintenance costs, as specified in division (B) of	257
section 3318.05 of the Revised Code;	258

(b) If the school district electors have approved a	259
continuing tax for general ongoing permanent improvements under	260
section 5705.21 of the Revised Code and that tax can be used for	261
maintenance, the earmarking of an amount of the proceeds from such	262
tax for maintenance of classroom facilities as specified in	263
division (B) of section 3318.05 of the Revised Code.	264

(D) For joint vocational school districts that receive	265
assistance under sections 3318.40 to 3318.45 of the Revised Code,	266
provision for deposit of school district moneys dedicated to	267
maintenance of the classroom facilities acquired under those	268
sections as prescribed in section 3318.43 of the Revised Code;	269

(E) Dedication of any local donated contribution as provided	270
for under section 3318.084 of the Revised Code, including a	271
schedule for depositing such moneys applied as an offset of the	272
district's obligation to levy the tax described in division (B) of	273
section 3318.05 of the Revised Code as required under division	274
(D)(2) of section 3318.084 of the Revised Code;	275

(F) Ownership of or interest in the project during the period	276
of construction, which shall be divided between the commission and	277
the school district board in proportion to their respective	278
contributions to the school district's project construction fund;	279

(G) Maintenance of the state's interest in the project until	280
any obligations issued for the project under section 3318.26 of	281
the Revised Code are no longer outstanding;	282

(H) The insurance of the project by the school district from	283
the time there is an insurable interest therein and so long as the	284
state retains any ownership or interest in the project pursuant to	285
division (F) of this section, in such amounts and against such	286
risks as the commission shall require; provided, that the cost of	287
any required insurance until the project is completed shall be a	288
part of the basic project cost;	289

(I) The certification by the director of budget and	290
management that funds are available and have been set aside to	291
meet the state's share of the basic project cost as approved by	292
the controlling board pursuant to either section 3318.04 or	293
division (B)(1) of section 3318.41 of the Revised Code;	294

(J) Authorization of the school district board to advertise	295
for and receive construction bids for the project, for and on	296
behalf of the commission, and to award contracts in the name of	297
the state subject to approval by the commission;	298

(K) Provisions for the disbursement of moneys from the school	299
district's project account upon issuance by the commission or the	300
commission's designated representative of vouchers for work done	301
to be certified to the commission by the treasurer of the school	302
district board;	303

(L) Disposal of any balance left in the school district's	304
project construction fund upon completion of the project;	305

(M) Limitations upon use of the project or any part of it so	306
long as any obligations issued to finance the project under	307
section 3318.26 of the Revised Code are outstanding;	308

(N) Provision for vesting the state's interest in the project	309
to the school district board when the obligations issued to	310
finance the project under section 3318.26 of the Revised Code are	311
outstanding;	312

(O) Provision for deposit of an executed copy of the	313
agreement in the office of the commission;	314

(P) Provision for termination of the contract and release of	315
the funds encumbered at the time of the conditional approval, if	316
the proceeds of the sale of the bonds of the school district board	317
are not paid into the school district's project construction fund	318
and if bids for the construction of the project have not been	319
taken within such period after the execution of the agreement as	320
may be fixed by the commission;	321

(Q) Provision for the school district to maintain the project	322
in accordance with a plan approved by the commission;	323

(R)(1) For all school districts except a district undertaking	324
a project under section 3318.38 of the Revised Code or a joint	325
vocational school district undertaking a project under sections	326
3318.40 to 3318.45 of the Revised Code, provision that all state	327
funds reserved and encumbered to pay the state share of the cost	328
of the project pursuant to section 3318.03 of the Revised Code be	329
spent on the construction or acquisition of the project prior to	330
the expenditure of any funds provided by the school district to	331
pay for its share of the project cost, unless the school district	332
certifies to the commission that expenditure by the school	333
district is necessary to maintain the tax-exempt status of notes	334
or bonds issued by the school district to pay for its share of the	335
project cost or to comply with applicable temporary investment	336
periods or spending exceptions to rebate as provided for under	337
federal law in regard to those notes or bonds, in which cases, the	338
school district may commit to spend, or spend, a portion of the	339
funds it provides;	340

(2) For a school district undertaking a project under section	341
3318.38 of the Revised Code or a joint vocational school district	342
undertaking a project under sections 3318.40 to 3318.45 of the	343
Revised Code, provision that the state funds reserved and	344
encumbered and the funds provided by the school district to pay	345
the basic project cost of any segment of the project, or of the	346
entire project if it is not divided into segments, be spent on the	347
construction and acquisition of the project simultaneously in	348
proportion to the state's and the school district's respective	349
shares of that basic project cost as determined under section	350
3318.032 of the Revised Code or, if the district is a joint	351
vocational school district, under section 3318.42 of the Revised	352
Code.	353

(S) A provision stipulating that the commission may prohibit	354
the district from proceeding with any project if the commission	355
determines that the site is not suitable for construction	356
purposes. The commission may perform soil tests in its	357
determination of whether a site is appropriate for construction	358
purposes.	359

(T) A provision stipulating that, unless otherwise authorized	360
by the commission, any contingency reserve portion of the	361
construction budget prescribed by the commission shall be used	362
only to pay costs resulting from unforeseen job conditions, to	363
comply with rulings regarding building and other codes, to pay	364
costs related to design clarifications or corrections to contract	365
documents, and to pay the costs of settlements or judgments	366
related to the project as provided under section 3318.086 of the	367
Revised Code;	368

(U) Provision stipulating that for continued release of	369
project funds the school district board shall comply with section	370
3313.41 of the Revised Code throughout the project and shall	371
notify the department of education and the Ohio community school	372
association when the board plans to dispose of facilities by sale	373
under that section;	374

(V) Provision that the commission shall not approve a	375
contract for demolition of a facility until the school district	376
board has complied with section 3313.41 of the Revised Code	377
relative to that facility, unless demolition of that facility is	378
to clear a site for construction of a replacement facility	379
included in the district's project.	380

Sec. 3318.44. (A) A joint vocational school district board of	381
education may generate the school district's portion of the basic	382
project cost of its project under sections 3318.40 to 3318.45 of	383
the Revised Code using any combination of the following means if	384
lawfully employed for the acquisition of classroom facilities:	385

(1) The issuance of securities in accordance with Chapter	386
133. and section 3311.20 of the Revised Code;	387

(2) Local donated contributions as authorized under section	388
3318.084 of the Revised Code;	389

(3) A levy for permanent improvements under section 3311.21	390
or 5705.21 of the Revised Code;	391

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

392

(B) By resolution adopted by a majority of all its members, a	393
school district board in order to pay all or part of the school	394
district's portion of its basic project cost may apply the	395
proceeds of a tax levied under section 5705.21 of the Revised Code	396
tofor general ongoing permanent improvements if the proceeds of	397
that levy lawfully may be used for general construction,	398
renovation, repair, or maintenance of classroom facilities to	399
leverage bonds adequate to pay all or part of the school district	400
portion of the basic project cost of the school district's project	401
under sections 3318.40 to 3318.45 of the Revised Code or to	402
generate an amount equivalent to all or part of the amount	403
required under section 3318.43 of the Revised Code to be used for	404
maintenance of classroom facilities acquired under the project.	405
Bonds issued under this division shall be Chapter 133. securities,	406
but the issuance of the bonds shall not be subject to a vote of	407
the electors of the school district as long as the tax proceeds	408
earmarked for payment of the service charges on the bonds may	409
lawfully be used for that purpose.	410

No state moneys shall be released for a project to which this	411
division applies until the proceeds of any bonds issued under this	412
division that are dedicated for payment of the school district's	413
portion of the basic project cost are first deposited into the	414
school district's project construction fund.	415

(C) A school district board of education may adopt a	416
resolution proposing that any of the following questions be	417
combined with a question specified in section 3318.45 of the	418
Revised Code:	419

(1) A bond issue question under section 133.18 of the Revised	420
Code;	421

(2) A tax levy question under section 3311.21 of the Revised	422
Code;	423

(3) A tax levy question under section 5705.21 of the Revised	424
Code.	425

Any question described in divisions (C)(1) to (3) of this	426
section that is combined with a question proposed under section	427
3318.45 of the Revised Code shall be for the purpose of either	428
paying for any permanent improvement, as defined in section 133.01	429
of the Revised Code, or generating operating revenue specifically	430
for the facilities acquired under the school district's project	431
under Chapter 3318. of the Revised Code or for both to the extent	432
such purposes are permitted by the sections of law under which	433
each is proposed.	434

(D) The board of education of a joint vocational school	435
district that receives assistance under this section may enter	436
into an agreement for joint issuance of bonds as provided for in	437
section 3318.085 of the Revised Code.	438

Sec. 5705.192.  (A) For the purposes of this section only,	439
"taxing authority" includes a township board of park commissioners	440
appointed under section 511.18 of the Revised Code.	441

(B) A taxing authority may propose to replace an existing	442
levy that the taxing authority is authorized to levy, regardless	443
of the section of the Revised Code under which the authority is	444
granted, except a school district emergency levy proposed pursuant	445
to sections 5705.194 to 5705.197 of the Revised Code. The taxing	446
authority may propose to replace the existing levy in its entirety	447
at the rate at which it is authorized to be levied; may propose to	448
replace a portion of the existing levy at a lesser rate; or may	449
propose to replace the existing levy in its entirety and increase	450
the rate at which it is levied. If the taxing authority proposes	451
to replace an existing levy, the proposed levy shall be called a	452
replacement levy and shall be so designated on the ballot. A	453
Except as otherwise provided in this division, a replacement levy	454
shall be limited to the purpose of the existing levy, and shall	455
appear separately on the ballot from, and shall not be conjoined	456
with, the renewal of any other existing levy. TheIn the case of	457
an existing school district levy imposed under section 5705.21 of	458
the Revised Code for the purpose specified in division (F) of	459
section 5705.19 of the Revised Code, the replacement for that	460
existing levy may be for the same purpose or for the purpose of	461
general permanent improvements as defined in section 5705.21 of	462
the Revised Code.	463

The resolution proposing a replacement levy shall specify the	464
purpose of the levy; its proposed rate expressed in mills; whether	465
the proposed rate is the same as the rate of the existing levy, a	466
reduction, or an increase; the extent of any reduction or increase	467
expressed in mills; the first calendar year in which the levy will	468
be due; and the term of the levy, expressed in years or, if	469
applicable, that it will be levied for a continuing period of	470
time.	471

The sections of the Revised Code governing the maximum rate	472
and term of the existing levy, the contents of the resolution that	473
proposed the levy, the adoption of the resolution, the	474
arrangements for the submission of the question of the levy, and	475
notice of the election also govern the respective provisions of	476
the proposal to replace the existing levy, except that theas	477
provided in division (B)(1) or (2) of this section:	478

(1) In the case of an existing school district levy imposed	479
under section 5705.21 of the Revised Code for the purpose	480
specified in division (F) of section 5705.19 of the Revised Code	481
that is to be replaced by a levy for general permanent	482
improvements, the maximum term of the replacement levy is not	483
limited to the term of the existing levy and may be for a	484
continuing period of time.	485

(2) The date on which the election is held shall be as	486
follows:	487

(1)(a) For the replacement of a levy with a fixed term of	488
years, the date of the general election held during the last year	489
the existing levy may be extended on the real and public utility	490
property tax list and duplicate, or the date of any election held	491
in the ensuing year;	492

(2)(b) For the replacement of a levy imposed for a continuing	493
period of time, the date of any election held in any year after	494
the year the levy to be replaced is first approved by the	495
electors, except that only one election on the question of	496
replacing the levy may be held during any calendar year.	497

The failure by the electors to approve a proposal to replace	498
a levy imposed for a continuing period of time does not terminate	499
the existing continuing levy.	500

(B)(C) The form of the ballot at the election on the question	501
of a replacement levy shall be as follows:	502

"A replacement of a tax for the benefit of .......... (name	503
of subdivision or public library) for the purpose of ..........	504
(the purpose stated in the resolution) at a rate not exceeding	505
.......... mills for each one dollar of valuation, which amounts	506
to .......... (rate expressed in dollars and cents) for each one	507
hundred dollars in valuation, for .......... (number of years levy	508
is to run, or that it will be levied for a continuous period of	509
time)	510

511

514

If the proposal is to replace an existing levy and increase	515
the rate of the existing levy, the form of the ballot shall be	516
changed by adding the words ".......... mills of an existing levy	517
and an increase of .......... mills, to constitute" after the	518
words "a replacement of." If the proposal is to replace only a	519
portion of an existing levy, the form of the ballot shall be	520
changed by adding the words "a portion of an existing levy, being	521
a reduction of .......... mills, to constitute" after the words "a	522
replacement of."	523

If the tax is to be placed on the tax list of the current tax	524
year, the form of the ballot shall be modified by adding at the	525
end of the form the phrase ", commencing in .......... (first year	526
the replacement tax is to be levied), first due in calendar year	527
.......... (first calendar year in which the tax shall be due)."	528

The question covered by the resolution shall be submitted as	529
a separate proposition, but may be printed on the same ballot with	530
any other proposition submitted at the same election, other than	531
the election of officers. More than one such question may be	532
submitted at the same election.	533

(C)(D) Two existing levies, or any portion of those levies,	534
may be combined into one replacement levy, so long as both of the	535
existing levies are for the same purpose and either both are due	536
to expire the same year or both are for a continuing period of	537
time. The question of combining all or portions of the two	538
existing levies into the replacement levy shall appear as one	539
ballot proposition before the electors. If the electors approve	540
the ballot proposition, all or the stated portions of the two	541
existing levies are replaced by one replacement levy.	542

(D)(E) A levy approved in excess of the ten-mill limitation	543
under this section shall be certified to the tax commissioner. In	544
the first year of a levy approved under this section, the levy	545
shall be extended on the tax lists after the February settlement	546
succeeding the election at which the levy was approved. If the	547
levy is to be placed on the tax lists of the current year, as	548
specified in the resolution providing for its submission, the	549
result of the election shall be certified immediately after the	550
canvass by the board of elections to the taxing authority, which	551
shall forthwith make the necessary levy and certify it to the	552
county auditor, who shall extend it on the tax lists for	553
collection. After the first year, the levy shall be included in	554
the annual tax budget that is certified to the county budget	555
commission.	556

If notes are authorized to be issued in anticipation of the	557
proceeds of the existing levy, notes may be issued in anticipation	558
of the proceeds of the replacement levy, and such issuance is	559
subject to the terms and limitations governing the issuance of	560
notes in anticipation of the proceeds of the existing levy.	561

This section does not authorize a tax to be levied in any	562
year after the year in which revenue is not needed for the purpose	563
for which the tax is levied.	564

Sec. 5705.21.  (A) At any time, the board of education of any	565
city, local, exempted village, cooperative education, or joint	566
vocational school district, by a vote of two-thirds of all its	567
members, may declare by resolution that the amount of taxes which	568
may be raised within the ten-mill limitation by levies on the	569
current tax duplicate will be insufficient to provide an adequate	570
amount for the necessary requirements of the school district, that	571
it is necessary to levy a tax in excess of such limitation for one	572
of the purposes specified in division (A), (D), (F), (H), or (DD)	573
of section 5705.19 of the Revised Code, for general, on-going	574
permanent improvements, for the purpose of operating a cultural	575
center, or for the purpose of providing education technology, and	576
that the question of such additional tax levy shall be submitted	577
to the electors of the school district at a special election on a	578
day to be specified in the resolution.	579

As used in this section, "cultural center" means a	580
freestanding building, separate from a public school building,	581
that is open to the public for educational, musical, artistic, and	582
cultural purposes.	583

As used in this section,; "education technology" means, but	584
is not limited to, computer hardware, equipment, materials, and	585
accessories, equipment used for two-way audio or video, and	586
software; and "general permanent improvements" means permanent	587
improvements without regard to the limitation of division (F) of	588
section 5705.19 of the Revised Code that the improvements be a	589
specific improvement or a class of improvements that may be	590
included in a single bond issue.	591

The submission of questions to the electors under this	592
section is subject to the limitation on the number of election	593
dates established by section 5705.214 of the Revised Code.	594

(B) Such resolution shall be confined to a single purpose and	595
shall specify the amount of the increase in rate that it is	596
necessary to levy, the purpose of the levy, and the number of	597
years during which the increase in rate shall be in effect. The	598
number of years may be any number not exceeding five or, if the	599
levy is for current expenses of the district or for general,	600
on-going permanent improvements, for a continuing period of time.	601
The resolution shall specify the date of holding such election,	602
which shall not be earlier than seventy-five days after the	603
adoption and certification of the resolution and which shall be	604
consistent with the requirements of section 3501.01 of the Revised	605
Code. The	606

The resolution may propose to renew one or more existing	607
levies imposed under this section or to increase or decrease a	608
single levy imposed under this section. If the board of education	609
imposes one or more existing levies for the purpose specified in	610
division (F) of section 5705.19 of the Revised Code, the	611
resolution may propose to renew one or more of those existing	612
levies, or to increase or decrease a single such existing levy,	613
for the purpose of general permanent improvements. If	614

If the resolution proposes to renew two or more existing	615
levies, the levies shall be levied for the same purpose. The	616
resolution shall identify those levies and the rates at which they	617
are levied. The resolution also shall specify that the existing	618
levies shall not be extended on the tax lists after the year	619
preceding the year in which the renewal levy is first imposed,	620
regardless of the years for which those levies originally were	621
authorized to be levied.	622

The resolution shall go into immediate effect upon its	623
passage, and no publication of the resolution shall be necessary	624
other than that provided for in the notice of election. A copy of	625
the resolution shall immediately after its passing be certified to	626
the board of elections of the proper county in the manner provided	627
by section 5705.25 of the Revised Code, and that section shall	628
govern the arrangements for the submission of such question and	629
other matters concerning such election, to which that section	630
refers, except that such election shall be held on the date	631
specified in the resolution. Publication of notice of such	632
election shall be made in one or more newspapers of general	633
circulation in the county once a week for four consecutive weeks.	634
If a majority of the electors voting on the question so submitted	635
in an election vote in favor of the levy, the board of education	636
may make the necessary levy within the school district at the	637
additional rate, or at any lesser rate in excess of the ten-mill	638
limitation on the tax list, for the purpose stated in the	639
resolution. A levy for a continuing period of time may be reduced	640
pursuant to section 5705.261 of the Revised Code. The tax levy	641
shall be included in the next tax budget that is certified to the	642
county budget commission.	643

(C)(1) After the approval of a levy on the current tax list	644
and duplicate for current expenses, for recreational purposes, for	645
community centers provided for in section 755.16 of the Revised	646
Code, or for a public library of the district and prior to the	647
time when the first tax collection from the levy can be made, the	648
board of education may anticipate a fraction of the proceeds of	649
the levy and issue anticipation notes in a principal amount not	650
exceeding fifty per cent of the total estimated proceeds of the	651
levy to be collected during the first year of the levy.	652

(2) After the approval of a levy for general permanent	653
improvements for a specified number of years, or for permanent	654
improvements having the purpose specified in division (F) of	655
section 5705.19 of the Revised Code, the board of education may	656
anticipate a fraction of the proceeds of the levy and issue	657
anticipation notes in a principal amount not exceeding fifty per	658
cent of the total estimated proceeds of the levy remaining to be	659
collected in each year over a period of five years after the	660
issuance of the notes.	661

The notes shall be issued as provided in section 133.24 of	662
the Revised Code, shall have principal payments during each year	663
after the year of their issuance over a period not to exceed five	664
years, and may have a principal payment in the year of their	665
issuance.	666

(3) After approval of a levy for general, on-going permanent	667
improvements for a continuing period of time, the board of	668
education may anticipate a fraction of the proceeds of the levy	669
and issue anticipation notes in a principal amount not exceeding	670
fifty per cent of the total estimated proceeds of the levy to be	671
collected in each year over a specified period of years, not	672
exceeding ten, after the issuance of the notes.	673

The notes shall be issued as provided in section 133.24 of	674
the Revised Code, shall have principal payments during each year	675
after the year of their issuance over a period not to exceed ten	676
years, and may have a principal payment in the year of their	677
issuance.	678

Section 2. That existing sections 3318.05, 3318.052, 3318.08,	679
3318.44, 5705.192, and 5705.21 of the Revised Code are hereby	680
repealed.	681

Section 3. The amendments by this act of section 5705.21 of	682
the Revised Code changing the designation of levies for "general,	683
ongoing permanent improvements" to levies for "general permanent	684
improvements" and defining "general permanent improvements" do not	685
change the purpose for which such levies are imposed or may be	686
imposed. Those amendments are intended only to change the name by	687
which such levies shall be referred to in the Revised Code and in	688
resolutions, election notices, and ballot forms.	689

For the purposes of renewing or replacing an existing levy	690
for the purpose of "general, ongoing permanent improvements" that	691
is in effect on the effective date of this act, a renewal or	692
replacement levy for the purpose of "general permanent	693
improvements" shall be considered to be a levy for the same	694
purpose as the existing levy.	695