As Introduced

127th General Assembly Regular Session 2007-2008

S. B. No. 49

Senator Schaffer 

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A BILL

To amend sections 3318.01, 3318.011, 3318.023, and

1

3318.36 of the Revised Code to prohibit ranking a

2

school district participating in the Expedited

3

Local Partnership Program in a higher percentile

4

on the eligibility list for state classroom

5

facilities assistance after the district's

6

electors have approved a bond issue for the

7

district's portion of the basic project cost.

8

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

Section 1. That sections 3318.01, 3318.011, 3318.023, and	9
3318.36 of the Revised Code be amended to read as follows:	10

Sec. 3318.01.  As used in sections 3318.01 to 3318.20 of the	11
Revised Code:	12

(A) "Ohio school facilities commission" means the commission	13
created pursuant to section 3318.30 of the Revised Code.	14

(B) "Classroom facilities" means rooms in which pupils	15
regularly assemble in public school buildings to receive	16
instruction and education and such facilities and building	17
improvements for the operation and use of such rooms as may be	18
needed in order to provide a complete educational program, and may	19
include space within which a child care facility or a community	20
resource center is housed. "Classroom facilities" includes any	21
space necessary for the operation of a vocational education	22
program for secondary students in any school district that	23
operates such a program.	24

(C) "Project" means a project to construct or acquire	25
classroom facilities, or to reconstruct or make additions to	26
existing classroom facilities, to be used for housing the	27
applicable school district and its functions.	28

(D) "School district" means a local, exempted village, or	29
city school district as such districts are defined in Chapter	30
3311. of the Revised Code, acting as an agency of state	31
government, performing essential governmental functions of state	32
government pursuant to sections 3318.01 to 3318.20 of the Revised	33
Code.	34

For purposes of assistance provided under sections 3318.40 to	35
3318.45 of the Revised Code, the term "school district" as used in	36
this section and in divisions (A), (C), and (D) of section 3318.03	37
and in sections 3318.031, 3318.042, 3318.07, 3318.08, 3318.083,	38
3318.084, 3318.085, 3318.086, 3318.10, 3318.11, 3318.12, 3318.13,	39
3318.14, 3318.15, 3318.16, 3318.19, and 3318.20 of the Revised	40
Code means a joint vocational school district established pursuant	41
to section 3311.18 of the Revised Code.	42

(E) "School district board" means the board of education of a	43
school district.	44

(F) "Net bonded indebtedness" means the difference between	45
the sum of the par value of all outstanding and unpaid bonds and	46
notes which a school district board is obligated to pay and any	47
amounts the school district is obligated to pay under	48
lease-purchase agreements entered into under section 3313.375 of	49
the Revised Code, and the amount held in the sinking fund and	50
other indebtedness retirement funds for their redemption. Notes	51
issued for school buses in accordance with section 3327.08 of the	52
Revised Code, notes issued in anticipation of the collection of	53
current revenues, and bonds issued to pay final judgments shall	54
not be considered in calculating the net bonded indebtedness.	55

"Net bonded indebtedness" does not include indebtedness	56
arising from the acquisition of land to provide a site for	57
classroom facilities constructed, acquired, or added to pursuant	58
to sections 3318.01 to 3318.20 of the Revised Code or the par	59
value of bonds that have been authorized by the electors and the	60
proceeds of which will be used by the district to provide any part	61
of its portion of the basic project cost.	62

(G) "Board of elections" means the board of elections of the	63
county containing the most populous portion of the school	64
district.	65

(H) "County auditor" means the auditor of the county in which	66
the greatest value of taxable property of such school district is	67
located.	68

(I) "Tax duplicates" means the general tax lists and	69
duplicates prescribed by sections 319.28 and 319.29 of the Revised	70
Code.	71

(J) "Required level of indebtedness" means:

72

(1) In the case of school districts in the first percentile,	73
five per cent of the district's valuation for the year preceding	74
the year in which the controlling board approved the project under	75
section 3318.04 of the Revised Code.	76

(2) In the case of school districts ranked in a subsequent	77
percentile, five per cent of the district's valuation for the year	78
preceding the year in which the controlling board approved the	79
project under section 3318.04 of the Revised Code, plus [two	80
one-hundredths of one per cent multiplied by (the percentile in	81
which the district ranks for the fiscal year preceding the fiscal	82
year in which the controlling board approved the district's	83
project minus one)].	84

(K) "Required percentage of the basic project costs" means	85
one per cent of the basic project costs times the percentile in	86
which the school district ranks for the fiscal year preceding the	87
fiscal year in which the controlling board approved the district's	88
project.	89

(L) "Basic project cost" means a cost amount determined in	90
accordance with rules adopted under section 111.15 of the Revised	91
Code by the Ohio school facilities commission. The basic project	92
cost calculation shall take into consideration the square footage	93
and cost per square foot necessary for the grade levels to be	94
housed in the classroom facilities, the variation across the state	95
in construction and related costs, the cost of the installation of	96
site utilities and site preparation, the cost of demolition of all	97
or part of any existing classroom facilities that are abandoned	98
under the project, the cost of insuring the project until it is	99
completed, any contingency reserve amount prescribed by the	100
commission under section 3318.086 of the Revised Code, and the	101
professional planning, administration, and design fees that a	102
school district may have to pay to undertake a classroom	103
facilities project.	104

For a joint vocational school district that receives	105
assistance under sections 3318.40 to 3318.45 of the Revised Code,	106
the basic project cost calculation for a project under those	107
sections shall also take into account the types of laboratory	108
spaces and program square footages needed for the vocational	109
education programs for high school students offered by the school	110
district.	111

(M)(1) Except for a joint vocational school district that	112
receives assistance under sections 3318.40 to 3318.45 of the	113
Revised Code, a "school district's portion of the basic project	114
cost" means the amount determined under section 3318.032 of the	115
Revised Code.	116

(2) For a joint vocational school district that receives	117
assistance under sections 3318.40 to 3318.45 of the Revised Code,	118
a "school district's portion of the basic project cost" means the	119
amount determined under division (C) of section 3318.42 of the	120
Revised Code.	121

(N) "Child care facility" means space within a classroom	122
facility in which the needs of infants, toddlers, preschool	123
children, and school children are provided for by persons other	124
than the parent or guardian of such children for any part of the	125
day, including persons not employed by the school district	126
operating such classroom facility.	127

(O) "Community resource center" means space within a	128
classroom facility in which comprehensive services that support	129
the needs of families and children are provided by community-based	130
social service providers.	131

(P) "Valuation" means the total value of all property in the	132
school district as listed and assessed for taxation on the tax	133
duplicates.	134

(Q) "Percentile" means the percentile in which the school	135
district is ranked pursuant to division (D) of section 3318.011 of	136
the Revised Code.	137

(R) "Installation of site utilities" means the installation	138
of a site domestic water system, site fire protection system, site	139
gas distribution system, site sanitary system, site storm drainage	140
system, and site telephone and data system.	141

(S) "Site preparation" means the earthwork necessary for	142
preparation of the building foundation system, the paved	143
pedestrian and vehicular circulation system, playgrounds on the	144
project site, and lawn and planting on the project site.	145

Sec. 3318.011.  For purposes of providing assistance under	146
sections 3318.01 to 3318.20 of the Revised Code, the department of	147
education shall annually do all of the following:	148

(A) Calculate the adjusted valuation per pupil of each city,	149
local, and exempted village school district according to the	150
following formula:	151

The district's valuation per pupil -

152

[$30,000 X (1 - the district's income factor)].

153

For purposes of this calculation:

154

(1) "Valuation per pupil" for a district means its average	155
taxable value, divided by its formula ADM reported under section	156
3317.03 of the Revised Code for the previous fiscal year.	157

(2) "Average taxable value" means the average of the amounts	158
certified for a district in the second, third, and fourth	159
preceding fiscal years under divisions (A)(1) and (2) of section	160
3317.021 of the Revised Code.	161

(3) "Income factor" has the same meaning as in section	162
3317.02 of the Revised Code.	163

(B) Calculate for each district the three-year average of the	164
adjusted valuations per pupil calculated for the district for the	165
current and two preceding fiscal years;	166

(C) Rank all such districts in order of adjusted valuation	167
per pupil from the district with the lowest three-year average	168
adjusted valuation per pupil to the district with the highest	169
three-year average adjusted valuation per pupil;	170

(D) Divide such ranking into percentiles with the first	171
percentile containing the one per cent of school districts having	172
the lowest three-year average adjusted valuations per pupil and	173
the one-hundredth percentile containing the one per cent of school	174
districts having the highest three-year average adjusted	175
valuations per pupil;	176

(E) Determine the school districts that have three-year	177
average adjusted valuations per pupil that are greater than the	178
median three-year average adjusted valuation per pupil for all	179
school districts in the state;	180

(F) On or before the first day of September, certify the	181
information described in divisions (A) to (E) of this section to	182
the Ohio school facilities commission.	183

Notwithstanding anything in this section to the contrary, the	184
department shall not rank any school district subject to division	185
(F) of section 3318.36 of the Revised Code in a higher percentile	186
than the percentile in which the district was ranked on the date	187
the electors of the district approved a bond issue to pay the	188
district's portion of the basic project cost. The percentile	189
ranking resulting from this paragraph shall be used by the	190
commission only to determine when the district is eligible for	191
assistance under sections 3318.01 to 3318.20 of the Revised Code	192
and shall not be used to calculate the district's portion of the	193
basic project cost. For this purpose, the commission annually	194
shall notify the department of all school districts that have	195
become subject to division (F) of section 3318.36 of the Revised	196
Code since the department completed its most recent school	197
district rankings under this section.	198

Sec. 3318.023.  Notwithstanding anything to the contrary in	199
section 3318.02 of the Revised Code, each fiscal year, at the time	200
that the Ohio school facilities commission conditionally approves	201
projects of school districts under sectionsections 3318.01 to	202
3318.20 of the Revised Code for which it plans to provide	203
assistance under those sections for that fiscal year, the	204
commission also shall identify the next ten school districts from	205
lowest to highest in order of the ranking calculated for the	206
previous fiscal year under division (D) of section 3318.011 of the	207
Revised Code that have not yet been conditionally approved for	208
assistance under sectionsections 3318.01 to 3318.20 of the	209
Revised Code. Those districts shall have priority in the order of	210
such ranking with the lowest valuation having the highest priority	211
for future assistance under those sections over all other school	212
districts except for districts receiving assistance under division	213
(B)(2) of section 3318.04, section 3318.37, or section 3318.38 of	214
the Revised Code or districts that have priority under section	215
3318.05 of the Revised Code.	216

Sec. 3318.36.  (A)(1) As used in this section:

217

(a) "Ohio school facilities commission," "classroom	218
facilities," "school district," "school district board," "net	219
bonded indebtedness," "required percentage of the basic project	220
costs," "basic project cost," "valuation," and "percentile" have	221
the same meanings as in section 3318.01 of the Revised Code.	222

(b) "Required level of indebtedness" means five per cent of	223
the school district's valuation for the year preceding the year in	224
which the commission and school district enter into an agreement	225
under division (B) of this section, plus [two one-hundredths of	226
one per cent multiplied by (the percentile in which the district	227
ranks minus one)].	228

(c) "Local resources" means any moneys generated in any	229
manner permitted for a school district board to raise the school	230
district portion of a project undertaken with assistance under	231
sections 3318.01 to 3318.20 of the Revised Code.	232

(2) For purposes of determining either the required level of	233
indebtedness, as defined in division (A)(1)(b) of this section, or	234
the required percentage of the basic project costs, under division	235
(C)(1) of this section, the percentile ranking of a school	236
district with which the commission has entered into an agreement	237
under this section between the first day of July and the	238
thirty-first day of August in each fiscal year is the percentile	239
ranking calculated for that district for the immediately preceding	240
fiscal year, and the percentile ranking of a school district with	241
which the commission has entered into such agreement between the	242
first day of September and the thirtieth day of June in each	243
fiscal year is the percentile ranking calculated for that district	244
for the current fiscal year.	245

(B)(1) There is hereby established the school building	246
assistance expedited local partnership program. Under the program,	247
the Ohio school facilities commission may enter into an agreement	248
with the school district board of any school district under which	249
the school district board may proceed with the new construction or	250
major repairs of a part of the school district's classroom	251
facilities needs, as determined under sections 3318.01 to 3318.20	252
of the Revised Code, through the expenditure of local resources	253
prior to the school district's eligibility for state assistance	254
under sections 3318.01 to 3318.20 of the Revised Code and may	255
apply that expenditure toward meeting the school district's	256
portion of the basic project cost of the total of the school	257
district's classroom facilities needs, as determined under	258
sections 3318.01 to 3318.20 of the Revised Code and as	259
recalculated under division (E) of this section, that are eligible	260
for state assistance under sections 3318.01 to 3318.20 of the	261
Revised Code when the school district becomes eligible for such	262
state assistance. Any school district that is reasonably expected	263
to receive assistance under sections 3318.01 to 3318.20 of the	264
Revised Code within two fiscal years from the date the school	265
district adopts its resolution under division (B) of this section	266
shall not be eligible to participate in the program.	267

(2) To participate in the program, a school district board	268
shall first adopt a resolution certifying to the commission the	269
board's intent to participate in the program.	270

The resolution shall specify the approximate date that the	271
board intends to seek elector approval of any bond or tax measures	272
or to apply other local resources to use to pay the cost of	273
classroom facilities to be constructed under this section. The	274
resolution may specify the application of local resources or	275
elector-approved bond or tax measures after the resolution is	276
adopted by the board, and in such case the board may proceed with	277
a discrete portion of its project under this section as soon as	278
the commission and the controlling board have approved the basic	279
project cost of the district's classroom facilities needs as	280
specified in division (D) of this section. The board shall submit	281
its resolution to the commission not later than ten days after the	282
date the resolution is adopted by the board.	283

The commission shall not consider any resolution that is	284
submitted pursuant to division (B)(2) of this section, as amended	285
by this amendment, sooner than September 14, 2000.	286

(3) Any project under this section shall comply with section	287
3318.03 of the Revised Code and with any specifications for plans	288
and materials for classroom facilities adopted by the commission	289
under section 3318.04 of the Revised Code.	290

(4) If a school district that enters into an agreement under	291
this section has not begun a project applying local resources as	292
provided for under that agreement at the time the district is	293
notified by the commission that it is eligible to receive state	294
assistance under sections 3318.01 to 3318.20 of the Revised Code,	295
all assessment and agreement documents entered into under this	296
section are void.	297

(5) Only construction of or repairs to classroom facilities	298
that have been approved by the commission and have been therefore	299
included as part of a district's basic project cost qualify for	300
application of local resources under this section.	301

(C) Based on the results of the on-site visits and assessment	302
conducted under division (B)(2) of this section, the commission	303
shall determine the basic project cost of the school district's	304
classroom facilities needs. The commission shall determine the	305
school district's portion of such basic project cost, which shall	306
be the greater of:	307

(1) The required percentage of the basic project costs,	308
determined based on the school district's percentile ranking;	309

(2) An amount necessary to raise the school district's net	310
bonded indebtedness, as of the fiscal year the commission and the	311
school district enter into the agreement under division (B) of	312
this section, to within five thousand dollars of the required	313
level of indebtedness.	314

(D)(1) When the commission determines the basic project cost	315
of the classroom facilities needs of a school district and the	316
school district's portion of that basic project cost under	317
division (C) of this section, the project shall be conditionally	318
approved. Such conditional approval shall be submitted to the	319
controlling board for approval thereof. The controlling board	320
shall forthwith approve or reject the commission's determination,	321
conditional approval, and the amount of the state's portion of the	322
basic project cost; however, no state funds shall be encumbered	323
under this section. Upon approval by the controlling board, the	324
school district board may identify a discrete part of its	325
classroom facilities needs, which shall include only new	326
construction of or additions or major repairs to a particular	327
building, to address with local resources. Upon identifying a part	328
of the school district's basic project cost to address with local	329
resources, the school district board may allocate any available	330
school district moneys to pay the cost of that identified part,	331
including the proceeds of an issuance of bonds if approved by the	332
electors of the school district.	333

All local resources utilized under this division shall first	334
be deposited in the project construction account required under	335
section 3318.08 of the Revised Code.	336

(2) Unless the school district board exercises its option	337
under division (D)(3) of this section, for a school district to	338
qualify for participation in the program authorized under this	339
section, one of the following conditions shall be satisfied:	340

(a) The electors of the school district by a majority vote	341
shall approve the levy of taxes outside the ten-mill limitation	342
for a period of twenty-three years at the rate of not less than	343
one-half mill for each dollar of valuation to be used to pay the	344
cost of maintaining the classroom facilities included in the basic	345
project cost as determined by the commission. The form of the	346
ballot to be used to submit the question whether to approve the	347
tax required under this division to the electors of the school	348
district shall be the form for an additional levy of taxes	349
prescribed in section 3318.361 of the Revised Code, which may be	350
combined in a single ballot question with the questions prescribed	351
under section 5705.218 of the Revised Code.	352

(b) As authorized under division (C) of section 3318.05 of	353
the Revised Code, the school district board shall earmark from the	354
proceeds of a permanent improvement tax levied under section	355
5705.21 of the Revised Code, an amount equivalent to the	356
additional tax otherwise required under division (D)(2)(a) of this	357
section for the maintenance of the classroom facilities included	358
in the basic project cost as determined by the commission.	359

(c) As authorized under section 3318.051 of the Revised Code,	360
the school district board shall, if approved by the commission,	361
annually transfer into the maintenance fund required under section	362
3318.05 of the Revised Code the amount prescribed in section	363
3318.051 of the Revised Code in lieu of the tax otherwise required	364
under division (D)(2)(a) of this section for the maintenance of	365
the classroom facilities included in the basic project cost as	366
determined by the commission.	367

(d) If the school district board has rescinded the agreement	368
to make transfers under section 3318.051 of the Revised Code, as	369
provided under division (F) of that section, the electors of the	370
school district, in accordance with section 3318.063 of the	371
Revised Code, first shall approve the levy of taxes outside the	372
ten-mill limitation for the period specified in that section at a	373
rate of not less than one-half mill for each dollar of valuation.	374

(e) The school district board shall apply the proceeds of a	375
tax to leverage bonds as authorized under section 3318.052 of the	376
Revised Code or dedicate a local donated contribution in the	377
manner described in division (B) of section 3318.084 of the	378
Revised Code in an amount equivalent to the additional tax	379
otherwise required under division (D)(2)(a) of this section for	380
the maintenance of the classroom facilities included in the basic	381
project cost as determined by the commission.	382

(3) A school district board may opt to delay taking any of	383
the actions described in division (D)(2) of this section until	384
such time as the school district becomes eligible for state	385
assistance under sections 3318.01 to 3318.20 of the Revised Code.	386
In order to exercise this option, the board shall certify to the	387
commission a resolution indicating the board's intent to do so	388
prior to entering into an agreement under division (B) of this	389
section.	390

(4) If pursuant to division (D)(3) of this section a district	391
board opts to delay levying an additional tax until the district	392
becomes eligible for state assistance, it shall submit the	393
question of levying that tax to the district electors as follows:	394

(a) In accordance with section 3318.06 of the Revised Code if	395
it will also be necessary pursuant to division (E) of this section	396
to submit a proposal for approval of a bond issue;	397

(b) In accordance with section 3318.361 of the Revised Code	398
if it is not necessary to also submit a proposal for approval of a	399
bond issue pursuant to division (E) of this section.	400

(5) No state assistance under sections 3318.01 to 3318.20 of	401
the Revised Code shall be released until a school district board	402
that adopts and certifies a resolution under division (D) of this	403
section also demonstrates to the satisfaction of the commission	404
compliance with the provisions of division (D)(2) of this section.	405

Any amount required for maintenance under division (D)(2) of	406
this section shall be deposited into a separate fund as specified	407
in division (B) of section 3318.05 of the Revised Code.	408

(E)(1) If the school district becomes eligible for state	409
assistance under sections 3318.01 to 3318.20 of the Revised Code	410
based on its percentile ranking as determined under division (B)	411
of this section, the commission shall conduct a new assessment of	412
the school district's classroom facilities needs and shall	413
recalculate the basic project cost based on this new assessment.	414
The basic project cost recalculated under this division shall	415
include the amount of expenditures made by the school district	416
board under division (D)(1) of this section. The commission shall	417
then recalculate the school district's portion of the new basic	418
project cost, which shall be the percentage of the original basic	419
project cost assigned to the school district as its portion under	420
division (C) of this section. The commission shall deduct the	421
expenditure of school district moneys made under division (D)(1)	422
of this section from the school district's portion of the basic	423
project cost as recalculated under this division. If the amount of	424
school district resources applied by the school district board to	425
the school district's portion of the basic project cost under this	426
section is less than the total amount of such portion as	427
recalculated under this division, the school district board by a	428
majority vote of all of its members shall, if it desires to seek	429
state assistance under sections 3318.01 to 3318.20 of the Revised	430
Code, adopt a resolution as specified in section 3318.06 of the	431
Revised Code to submit to the electors of the school district the	432
question of approval of a bond issue in order to pay any	433
additional amount of school district portion required for state	434
assistance. Any tax levy approved under division (D) of this	435
section satisfies the requirements to levy the additional tax	436
under section 3318.06 of the Revised Code.	437

(2) If the amount of school district resources applied by the	438
school district board to the school district's portion of the	439
basic project cost under this section is more than the total	440
amount of such portion as recalculated under this division, within	441
one year after the school district's portion is recalculated under	442
division (E)(1) of this section the commission may grant to the	443
school district the difference between the two calculated	444
portions, but at no time shall the commission expend any state	445
funds on a project in an amount greater than the state's portion	446
of the basic project cost as recalculated under this division.	447

Any reimbursement under this division shall be only for local	448
resources the school district has applied toward construction cost	449
expenditures for the classroom facilities approved by the	450
commission, which shall not include any financing costs associated	451
with that construction.	452

The school district board shall use any moneys reimbursed to	453
the district under this division to pay off any debt service the	454
district owes for classroom facilities constructed under its	455
project under this section before such moneys are applied to any	456
other purpose. However, the district board first may deposit	457
moneys reimbursed under this division into the district's general	458
fund or a permanent improvement fund to replace local resources	459
the district withdrew from those funds, as long as, and to the	460
extent that, those local resources were used by the district for	461
constructing classroom facilities included in the district's basic	462
project cost.	463

(F) If a school district has entered into an agreement with	464
the commission under this section and the electors of the district	465
have approved a bond issue to pay the district's portion of the	466
basic project cost, the district shall not be ranked in a higher	467
percentile under section 3318.011 of the Revised Code than the	468
percentile in which the district was ranked on the date that the	469
bond issue was approved, regardless of the district's three-year	470
average adjusted valuation per pupil calculated under that section	471
for any subsequent fiscal year.	472

Section 2. That existing sections 3318.01, 3318.011,	473
3318.023, and 3318.36 of the Revised Code are hereby repealed.	474

Section 3.  Section 3318.01 of the Revised Code is presented	475
in this act as a composite of the section as amended by Am. Sub.	476
H.B. 11 of the 125th General Assembly and Am. Sub. H.B. 16 of the	477
126th General Assembly. The General Assembly, applying the	478
principle stated in division (B) of section 1.52 of the Revised	479
Code that amendments are to be harmonized if reasonably capable of	480
simultaneous operation, finds that the composite is the resulting	481
version of the section in effect prior to the effective date of	482
the section as presented in this act.	483