As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 113

Representatives Foley, Blessing 

Cosponsors: Representatives Celeste, Skindell, Morgan, Harris, Evans, Snitchler, Pillich, Mecklenborg, Murray, Phillips, Combs, Grossman, Harwood, Newcomb, McGregor, Chandler, Oelslager, Yates, Ujvagi, Weddington, Stewart, Yuko, Stebelton, Adams, J., Bacon, Hagan 

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A BILL

To amend sections 133.06, 133.20, 3313.372, 3313.46,

1

and 4928.62 and to enact section 3313.377 of the

2

Revised Code to authorize school boards, for

3

on-site renewable energy generation measures and

4

in the same manner as for energy conservation

5

measures, to enter into installment contracts

6

subject to specified terms of payment, to provide

7

that energy conservation installment contracts

8

are subject to those same terms, and to require

9

that at least twenty-five per cent of the schools

10

in the state's school districts have a long-term

11

supply of solar-sourced electricity.

12

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

Section 1. That sections 133.06, 133.20, 3313.372, 3313.46,	13
and 4928.62 be amended and section 3313.377 of the Revised Code	14
be enacted to read as follows:	15

Sec. 133.06.  (A) A school district shall not incur, without	16
a vote of the electors, net indebtedness that exceeds an amount	17
equal to one-tenth of one per cent of its tax valuation, except as	18
provided in divisions (G) and (H) of this section and in division	19
(C) of section 3313.372 of the Revised Code, or as prescribed in	20
section 3318.052 of the Revised Code, or as provided in division	21
(J) of this section.	22

(B) Except as provided in divisions (E), (F), and (I) of this	23
section, a school district shall not incur net indebtedness that	24
exceeds an amount equal to nine per cent of its tax valuation.	25

(C) A school district shall not submit to a vote of the	26
electors the question of the issuance of securities in an amount	27
that will make the district's net indebtedness after the issuance	28
of the securities exceed an amount equal to four per cent of its	29
tax valuation, unless the superintendent of public instruction,	30
acting under policies adopted by the state board of education, and	31
the tax commissioner, acting under written policies of the	32
commissioner, consent to the submission. A request for the	33
consents shall be made at least one hundred five days prior to the	34
election at which the question is to be submitted.	35

The superintendent of public instruction shall certify to the	36
district the superintendent's and the tax commissioner's decisions	37
within thirty days after receipt of the request for consents.	38

If the electors do not approve the issuance of securities at	39
the election for which the superintendent of public instruction	40
and tax commissioner consented to the submission of the question,	41
the school district may submit the same question to the electors	42
on the date that the next special election may be held under	43
section 3501.01 of the Revised Code without submitting a new	44
request for consent. If the school district seeks to submit the	45
same question at any other subsequent election, the district shall	46
first submit a new request for consent in accordance with this	47
division.	48

(D) In calculating the net indebtedness of a school district,	49
none of the following shall be considered:	50

(1) Securities issued to acquire school buses and other	51
equipment used in transporting pupils or issued pursuant to	52
division (D) of section 133.10 of the Revised Code;	53

(2) Securities issued under division (F) of this section,	54
under section 133.301 of the Revised Code, and, to the extent in	55
excess of the limitation stated in division (B) of this section,	56
under division (E) of this section;	57

(3) Indebtedness resulting from the dissolution of a joint	58
vocational school district under section 3311.217 of the Revised	59
Code, evidenced by outstanding securities of that joint vocational	60
school district;	61

(4) Loans, evidenced by any securities, received under	62
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the	63
Revised Code;	64

(5) Debt incurred under section 3313.374 of the Revised Code;

65

(6) Debt incurred pursuant to division (B)(5) of section	66
3313.37 of the Revised Code to acquire computers and related	67
hardware;	68

(7) Debt incurred under section 3318.042 of the Revised Code.

69

(E) A school district may become a special needs district as	70
to certain securities as provided in division (E) of this section.	71

(1) A board of education, by resolution, may declare its	72
school district to be a special needs district by determining both	73
of the following:	74

(a) The student population is not being adequately serviced	75
by the existing permanent improvements of the district.	76

(b) The district cannot obtain sufficient funds by the	77
issuance of securities within the limitation of division (B) of	78
this section to provide additional or improved needed permanent	79
improvements in time to meet the needs.	80

(2) The board of education shall certify a copy of that	81
resolution to the superintendent of public instruction with a	82
statistical report showing all of the following:	83

(a) A history of and a projection of the growth of the	84
student population;	85

(b) The history of and a projection of the growth of the tax	86
valuation;	87

(c) The projected needs;

88

(d) The estimated cost of permanent improvements proposed to	89
meet such projected needs.	90

(3) The superintendent of public instruction shall certify	91
the district as an approved special needs district if the	92
superintendent finds both of the following:	93

(a) The district does not have available sufficient	94
additional funds from state or federal sources to meet the	95
projected needs.	96

(b) The projection of the potential average growth of tax	97
valuation during the next five years, according to the information	98
certified to the superintendent and any other information the	99
superintendent obtains, indicates a likelihood of potential	100
average growth of tax valuation of the district during the next	101
five years of an average of not less than three per cent per year.	102
The findings and certification of the superintendent shall be	103
conclusive.	104

(4) An approved special needs district may incur net	105
indebtedness by the issuance of securities in accordance with the	106
provisions of this chapter in an amount that does not exceed an	107
amount equal to the greater of the following:	108

(a) Nine per cent of the sum of its tax valuation plus an	109
amount that is the product of multiplying that tax valuation by	110
the percentage by which the tax valuation has increased over the	111
tax valuation on the first day of the sixtieth month preceding the	112
month in which its board determines to submit to the electors the	113
question of issuing the proposed securities;	114

(b) Nine per cent of the sum of its tax valuation plus an	115
amount that is the product of multiplying that tax valuation by	116
the percentage, determined by the superintendent of public	117
instruction, by which that tax valuation is projected to increase	118
during the next ten years.	119

(F) A school district may issue securities for emergency	120
purposes, in a principal amount that does not exceed an amount	121
equal to three per cent of its tax valuation, as provided in this	122
division.	123

(1) A board of education, by resolution, may declare an	124
emergency if it determines both of the following:	125

(a) School buildings or other necessary school facilities in	126
the district have been wholly or partially destroyed, or condemned	127
by a constituted public authority, or that such buildings or	128
facilities are partially constructed, or so constructed or planned	129
as to require additions and improvements to them before the	130
buildings or facilities are usable for their intended purpose, or	131
that corrections to permanent improvements are necessary to remove	132
or prevent health or safety hazards.	133

(b) Existing fiscal and net indebtedness limitations make	134
adequate replacement, additions, or improvements impossible.	135

(2) Upon the declaration of an emergency, the board of	136
education may, by resolution, submit to the electors of the	137
district pursuant to section 133.18 of the Revised Code the	138
question of issuing securities for the purpose of paying the cost,	139
in excess of any insurance or condemnation proceeds received by	140
the district, of permanent improvements to respond to the	141
emergency need.	142

(3) The procedures for the election shall be as provided in	143
section 133.18 of the Revised Code, except that:	144

(a) The form of the ballot shall describe the emergency	145
existing, refer to this division as the authority under which the	146
emergency is declared, and state that the amount of the proposed	147
securities exceeds the limitations prescribed by division (B) of	148
this section;	149

(b) The resolution required by division (B) of section 133.18	150
of the Revised Code shall be certified to the county auditor and	151
the board of elections at least seventy-five days prior to the	152
election;	153

(c) The county auditor shall advise and, not later than	154
sixty-five days before the election, confirm that advice by	155
certification to, the board of education of the information	156
required by division (C) of section 133.18 of the Revised Code;	157

(d) The board of education shall then certify its resolution	158
and the information required by division (D) of section 133.18 of	159
the Revised Code to the board of elections not less than sixty	160
days prior to the election.	161

(4) Notwithstanding division (B) of section 133.21 of the	162
Revised Code, the first principal payment of securities issued	163
under this division may be set at any date not later than sixty	164
months after the earliest possible principal payment otherwise	165
provided for in that division.	166

(G)(1) The board of education may contract with an architect,	167
professional engineer, or other person experienced in the design	168
and implementation of energy conservation measures, as defined in	169
section 3313.372 of the Revised Code, for an analysis and	170
recommendations pertaining to installations, modifications of	171
installations, or remodeling that would significantly reduce	172
energy consumption in buildings owned by the district. The report	173
shall include estimates of all costs of such installations,	174
modifications, or remodeling, including costs of design,	175
engineering, installation, maintenance, repairs, and debt service,	176
and estimates of the amounts by which energy consumption and	177
resultant operational and maintenance costs, as defined by the	178
Ohio school facilities commission, would be reduced.	179

If the board finds after receiving the report that the amount	180
of money the district would spend on such installations,	181
modifications, or remodeling is not likely to exceed the amount of	182
money it would save in energy and resultant operational and	183
maintenance costs over the ensuing fifteenthirty years, the board	184
may submit to the commission a copy of its findings and a request	185
for approval to incur indebtedness to finance the making or	186
modification of installations or the remodeling of buildings for	187
the purpose of significantly reducing energy consumption.	188

If the commission determines that the board's findings are	189
reasonable, it shall approve the board's request. Upon receipt of	190
the commission's approval, the district may issue securities	191
without a vote of the electors in a principal amount not to exceed	192
nine-tenths of one per cent of its tax valuation for the purpose	193
of making such installations, modifications, or remodeling, but	194
the total net indebtedness of the district without a vote of the	195
electors incurred under this and all other sections of the Revised	196
Code, except section 3318.052 of the Revised Code, shall not	197
exceed one per cent of the district's tax valuation.	198

So long as any securities issued under division (G)(1) of	199
this section remain outstanding, the board of education shall	200
monitor the energy consumption and resultant operational and	201
maintenance costs of buildings in which installations or	202
modifications have been made or remodeling has been done pursuant	203
to division (G)(1) of this section and shall maintain and annually	204
update a report documenting the reductions in energy consumption	205
and resultant operational and maintenance cost savings	206
attributable to such installations, modifications, or remodeling.	207
The report shall be certified by an architect or engineer	208
independent of any person that provided goods or services to the	209
board in connection with the energy conservation measures that are	210
the subject of the report. The resultant operational and	211
maintenance cost savings shall be certified by the school district	212
treasurer. The report shall be made available to the commission	213
upon request.	214

(2) The board may submit to the commission a request for	215
approval to incur indebtedness to finance the installation or	216
modification of an installation in, or remodeling of, buildings	217
owned by the district, or installation of equipment on, in, or	218
proximate to the buildings, to generate electricity from renewable	219
energy resources. If the commission determines that the request is	220
reasonable, it shall approve the board's request. Upon receipt of	221
the commission's approval, the district may issue securities	222
without a vote of the electors in a principal amount not to exceed	223
nine-tenths of one per cent of its tax valuation for the purpose	224
of making such installations, modifications, or remodeling, but	225
the total net indebtedness of the district without a vote of the	226
electors incurred under this and all other sections of the Revised	227
Code, except section 3318.052 of the Revised Code, shall not	228
exceed one per cent of the district's valuation.	229

(H) With the consent of the superintendent of public	230
instruction, a school district may incur without a vote of the	231
electors net indebtedness that exceeds the amounts stated in	232
divisions (A) and (G) of this section for the purpose of paying	233
costs of permanent improvements, if and to the extent that both of	234
the following conditions are satisfied:	235

(1) The fiscal officer of the school district estimates that	236
receipts of the school district from payments made under or	237
pursuant to agreements entered into pursuant to section 725.02,	238
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62,	239
5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised	240
Code, or distributions under division (C) of section 5709.43 of	241
the Revised Code, or any combination thereof, are, after	242
accounting for any appropriate coverage requirements, sufficient	243
in time and amount, and are committed by the proceedings, to pay	244
the debt charges on the securities issued to evidence that	245
indebtedness and payable from those receipts, and the taxing	246
authority of the district confirms the fiscal officer's estimate,	247
which confirmation is approved by the superintendent of public	248
instruction;	249

(2) The fiscal officer of the school district certifies, and	250
the taxing authority of the district confirms, that the district,	251
at the time of the certification and confirmation, reasonably	252
expects to have sufficient revenue available for the purpose of	253
operating such permanent improvements for their intended purpose	254
upon acquisition or completion thereof, and the superintendent of	255
public instruction approves the taxing authority's confirmation.	256

The maximum maturity of securities issued under division (H)	257
of this section shall be the lesser of twenty years or the maximum	258
maturity calculated under section 133.20 of the Revised Code.	259

(I) A school district may incur net indebtedness by the	260
issuance of securities in accordance with the provisions of this	261
chapter in excess of the limit specified in division (B) or (C) of	262
this section when necessary to raise the school district portion	263
of the basic project cost and any additional funds necessary to	264
participate in a project under Chapter 3318. of the Revised Code,	265
including the cost of items designated by the Ohio school	266
facilities commission as required locally funded initiatives and	267
the cost for site acquisition. The school facilities commission	268
shall notify the superintendent of public instruction whenever a	269
school district will exceed either limit pursuant to this	270
division.	271

(J) A school district whose portion of the basic project cost	272
of its classroom facilities project under sections 3318.01 to	273
3318.20 of the Revised Code is greater than or equal to one	274
hundred million dollars may incur without a vote of the electors	275
net indebtedness in an amount up to two per cent of its tax	276
valuation through the issuance of general obligation securities in	277
order to generate all or part of the amount of its portion of the	278
basic project cost if the controlling board has approved the	279
school facilities commission's conditional approval of the project	280
under section 3318.04 of the Revised Code. The school district	281
board and the Ohio school facilities commission shall include the	282
dedication of the proceeds of such securities in the agreement	283
entered into under section 3318.08 of the Revised Code. No state	284
moneys shall be released for a project to which this section	285
applies until the proceeds of any bonds issued under this section	286
that are dedicated for the payment of the school district portion	287
of the project are first deposited into the school district's	288
project construction fund.	289

Sec. 133.20.  (A) This section applies to bonds that are	290
general obligation Chapter 133. securities. If the bonds are	291
payable as to principal by provision for annual installments, the	292
period of limitations on their last maturity, referred to as their	293
maximum maturity, shall be measured from a date twelve months	294
prior to the first date on which provision for payment of	295
principal is made. If the bonds are payable as to principal by	296
provision for semiannual installments, the period of limitations	297
on their last maturity shall be measured from a date six months	298
prior to the first date on which provision for payment of	299
principal is made.	300

(B) Bonds issued for the following permanent improvements or	301
for permanent improvements for the following purposes shall have	302
maximum maturities not exceeding the number of years stated:	303

(1) Fifty years:

304

(a) The clearance and preparation of real property for	305
redevelopment as an urban redevelopment project;	306

(b) Acquiring, constructing, widening, relocating, enlarging,	307
extending, and improving a publicly owned railroad or line of	308
railway or a light or heavy rail rapid transit system, including	309
related bridges, overpasses, underpasses, and tunnels, but not	310
including rolling stock or equipment;	311

(c) Pursuant to section 307.675 of the Revised Code,	312
constructing or repairing a bridge using long life expectancy	313
material for the bridge deck, and purchasing, installing, and	314
maintaining any performance equipment to monitor the physical	315
condition of a bridge so constructed or repaired. Additionally,	316
the average maturity of the bonds shall not exceed the expected	317
useful life of the bridge deck as determined by the county	318
engineer under that section.	319

(2) Forty years:

320

(a) General waterworks or water system permanent	321
improvements, including buildings, water mains, or other	322
structures and facilities in connection therewith;	323

(b) Sewers or sewage treatment or disposal works or	324
facilities, including fireproof buildings or other structures in	325
connection therewith;	326

(c) Storm water drainage, surface water, and flood prevention	327
facilities.	328

(3) Thirty-five years:

329

(a) An arena, a convention center, or a combination of an	330
arena and convention center under section 307.695 of the Revised	331
Code;	332

(b) Sports facilities.

333

(4) Thirty years:

334

(a) Municipal recreation, excluding recreational equipment;

335

(b) Urban redevelopment projects;

336

(c) Acquisition of real property;

337

(d) Street or alley lighting purposes or relocating overhead	338
wires, cables, and appurtenant equipment underground;	339

(e) Energy conservation and energy generation measures as	340
authorized by section 133.06 of the Revised Code.	341

(5) Twenty years: constructing, reconstructing, widening,	342
opening, improving, grading, draining, paving, extending, or	343
changing the line of roads, highways, expressways, freeways,	344
streets, sidewalks, alleys, or curbs and gutters, and related	345
bridges, viaducts, overpasses, underpasses, grade crossing	346
eliminations, service and access highways, and tunnels.	347

(6) Fifteen years:

348

(a) Resurfacing roads, highways, streets, or alleys;

349

(b) Alarm, telegraph, or other communications systems for	350
police or fire departments or other emergency services;	351

(c) Passenger buses used for mass transportation;

352

(d) Energy conservation measures as authorized by section	353
133.06 of the Revised Code.	354

(7) Ten years:

355

(a) Water meters;

356

(b) Fire department apparatus and equipment;

357

(c) Road rollers and other road construction and servicing	358
vehicles;	359

(d) Furniture, equipment, and furnishings;

360

(e) Landscape planting and other site improvements;

361

(f) Playground, athletic, and recreational equipment and	362
apparatus;	363

(g) Energy conservation measures as authorized by section	364
505.264 of the Revised Code.	365

(8) Five years: New motor vehicles other than those described	366
in any other division of this section and those for which	367
provision is made in other provisions of the Revised Code.	368

(C) Bonds issued for any permanent improvements not within	369
the categories set forth in division (B) of this section shall	370
have maximum maturities of from five to thirty years as the fiscal	371
officer estimates is the estimated life or period of usefulness of	372
those permanent improvements. Bonds issued under section 133.51 of	373
the Revised Code for purposes other than permanent improvements	374
shall have the maturities, not to exceed forty years, that the	375
taxing authority shall specify. Bonds issued for energy	376
conservation measures under section 307.041 of the Revised Code	377
shall have maximum maturities not exceeding the lesser of the	378
average life of the energy conservation measures as detailed in	379
the energy conservation report prepared under that section or	380
thirty years.	381

(D) Securities issued under section 505.265 of the Revised	382
Code shall mature not later than December 31, 2035.	383

(E) A securities issue for one purpose may include permanent	384
improvements within two or more categories under divisions (B) and	385
(C) of this section. The maximum maturity of such a bond issue	386
shall not exceed the average number of years of life or period of	387
usefulness of the permanent improvements as measured by the	388
weighted average of the amounts expended or proposed to be	389
expended for the categories of permanent improvements.	390

Sec. 3313.372.  (A) As used in this section, "energy:

391

(1) "Energy conservation measure" means an installation or	392
modification of an installation in, or remodeling of, a building,	393
to reduce energy consumption. It includes:	394

(1)(a) Insulation of the building structure and systems	395
within the building;	396

(2)(b) Storm windows and doors, multiglazed windows and	397
doors, heat absorbing or heat reflective glazed and coated window	398
and door systems, additional glazing, reductions in glass area,	399
and other window and door system modifications that reduce energy	400
consumption;	401

(3)(c) Automatic energy control systems;

402

(4)(d) Heating, ventilating, or air conditioning system	403
modifications or replacements;	404

(5)(e) Caulking and weatherstripping;

405

(6)(f) Replacement or modification of lighting fixtures to	406
increase the energy efficiency of the system without increasing	407
the overall illumination of a facility, unless such increase in	408
illumination is necessary to conform to the applicable state or	409
local building code for the proposed lighting system;	410

(7)(g) Energy recovery systems;

411

(8) Cogeneration systems that produce steam or forms of	412
energy such as heat, as well as electricity, for use primarily	413
within a building or complex of buildings;	414

(9)(h) Any other modification, installation, or remodeling	415
approved by the Ohio school facilities commission as an energy	416
conservation measure.	417

(2) "Renewable energy generation measure" means an	418
installation or modification of an installation in, or remodeling	419
of, a building, or installation of equipment on, in, or proximate	420
to a building, to generate electricity from renewable energy	421
resources as defined in section 4928.01 of the Revised Code. A	422
"renewable energy generation measure" includes cogeneration	423
systems or other systems that produce or generate steam or forms	424
of energy such as heat, as well as electricity, for use on the	425
premises or in conjunction with a net metering system.	426

(B) A board of education of a city, exempted village, local,	427
or joint vocational school district may enter into an installment	428
payment contract for the purchase and installation of energy	429
conservation measures or renewable energy generation measures. The	430
provisions of such installment payment contracts dealing with	431
interest charges and financing terms shall not be subject to the	432
competitive bidding requirements of section 3313.46 of the Revised	433
Code, and shall be on the following terms:	434

(1) Not less than one-fifteenthone-thirtieth of the costs	435
thereof shall be paid within two years from the date of purchase.	436

(2) The remaining balance of the costs thereof shall be paid	437
within fifteenthirty years from the date of purchase.	438

An installment payment contract entered into by a board of	439
education under this section shall require the board to contract	440
in accordance with division (A) of section 3313.46 of the Revised	441
Code for the installation, modification, or remodeling of energy	442
conservation measures or purchase and installation of renewable	443
energy generation measures unless division (A) of section 3313.46	444
of the Revised Code does not apply pursuant to division (B)(3) of	445
that section. An installment payment contract entered into under	446
this chapter may provide for the seller to retain title to	447
renewable energy generation equipment for part or all of the term	448
of the contract.	449

(C) The board may issue the notes of the school district	450
signed by the president and the treasurer of the board and	451
specifying the terms of the purchase and securing the deferred	452
payments provided in this section, payable at the times provided	453
and bearing interest at a rate not exceeding the rate determined	454
as provided in section 9.95 of the Revised Code. The notes may	455
contain an option for prepayment and shall not be subject to	456
Chapter 133. of the Revised Code. In the resolution authorizing	457
the notes, the board may provide, without the vote of the electors	458
of the district, for annually levying and collecting taxes in	459
amounts sufficient to pay the interest on and retire the notes,	460
except that the total net indebtedness of the district without a	461
vote of the electors incurred under this and all other sections of	462
the Revised Code, except section 3318.052 of the Revised Code,	463
shall not exceed one per cent of the district's tax valuation.	464
Revenues derived from local taxes or otherwise, for the purpose of	465
conserving or generating energy or for defraying the current	466
operating expenses of the district, may be applied to the payment	467
of interest and the retirement of such notes. The notes may be	468
sold at private sale or given to the contractor under the	469
installment payment contract authorized by division (B) of this	470
section.	471

(D) Debt incurred under this section shall not be included in	472
the calculation of the net indebtedness of a school district under	473
section 133.06 of the Revised Code.	474

(E)(1) No school district board shall enter into an	475
installment payment contract under division (B) of this section	476
for the purchase and installation of energy conservation measures	477
unless it first obtains a report of the costs of the energy	478
conservation measures and the savings thereof as described under	479
division (G)(1) of section 133.06 of the Revised Code as a	480
requirement for issuing energy securities, makes a finding that	481
the amount spent on such measures is not likely to exceed the	482
amount of money it would save in energy costs and resultant	483
operational and maintenance costs as described in that division,	484
except that that finding shall cover the ensuing fifteenthirty	485
years, and the Ohio school facilities commission determines that	486
the district board's findings are reasonable and approves the	487
contract as described in that division.	488

The district board shall monitor the savings and maintain a	489
report of those savings, which shall be available to the	490
commission in the same manner as required by division (G) of	491
section 133.06 of the Revised Code in the case of energy	492
securities.	493

(2) No school district board shall enter into an installment	494
payment contract under division (B) of this section for the	495
purchase and installation of renewable energy generation measures	496
unless the commission determines that the board's request to enter	497
into the contract is reasonable and approves the contract as	498
described in that division.	499

Sec. 3313.377. (A) As used in this section, "solar energy	500
system" means a system providing solar-sourced electricity.	501

(B)(1) Except as provided in division (B)(2) of this section,	502
each school district within the state shall ensure that, within	503
five years after the effective date of this section, at least	504
twenty-five per cent of the district's schools have a long-term	505
supply of solar-sourced electricity derived in accordance with	506
this section.	507

(2) If the thirty-year cost of compliance with the	508
solar-sourced electricity requirements of this section would be	509
uneconomic regarding one or more schools in a district relative to	510
the reasonably forecasted retail rate of electricity payable for	511
that school or schools over the thirty-year period, with the	512
result that the district is unable to comply with the percentage	513
requirement of division (B)(1) of this section, the district shall	514
comply with the solar-sourced electricity requirements at a	515
percentage rate as close as possible to the percentage requirement	516
of that division.	517

(3) The district board of education shall designate the	518
particular schools that shall have the long-term supply described	519
in division (B)(1) of this section.	520

(C)(1) To comply with division (B) of this section, the	521
district board of education shall provide for the installation,	522
operation, and maintenance of a solar energy system on the	523
property of each designated school. The board may provide for such	524
system either by its direct ownership of the system or by hosting	525
the system pursuant to a contract with a third-party provider,	526
other than the school, that shall own the system and install,	527
operate, and maintain the system. In the case of direct ownership	528
of the system, the board may enter into an installment payment	529
contract for renewable energy generation measures pursuant to	530
section 3313.372 of the Revised Code. In the case of a board	531
hosting the system pursuant to a contract with a third party	532
provider, the board shall enter into a power purchase agreement	533
with the third-party provider to supply the designated school	534
with the electricity generated by the solar energy system	535
installed at the school.	536

(2) A solar energy system installed at a school under this	537
section shall be capable of generating the annual average	538
electricity load of the school and shall have a minimum, peak,	539
alternating current generating-capacity of fifty kilowatts or	540
direct current generating-capacity of fifty thousand kilowatt	541
hours. When deciding upon the configuration of a solar energy	542
system, the board shall consider the size of the roof of the	543
school building on which the system may be installed or any other	544
applicable property limitation at the school.	545

(D) No school district shall purchase renewable energy	546
resource credits to meet the solar energy requirements of this	547
section.	548

Sec. 3313.46.  (A) In addition to any other law governing	549
the bidding for contracts by the board of education of any school	550
district, when any such board determines to build, repair,	551
enlarge, improve, or demolish any school building, the cost of	552
which will exceed twenty-five thousand dollars, except in cases of	553
urgent necessity, or for the security and protection of school	554
property, and except as otherwise provided in division (D) of	555
section 713.23 and in section 125.04 of the Revised Code, all of	556
the following shall apply:	557

(1) The board shall cause to be prepared the plans,	558
specifications, and related information as required in divisions	559
(A), (B), and (D) of section 153.01 of the Revised Code unless the	560
board determines that other information is sufficient to inform	561
any bidders of the board's requirements. However, if the board	562
determines that such other information is sufficient for bidding a	563
project, the board shall not engage in the construction of any	564
such project involving the practice of professional engineering,	565
professional surveying, or architecture, for which plans,	566
specifications, and estimates have not been made by, and the	567
construction thereof inspected by, a licensed professional	568
engineer, licensed professional surveyor, or registered architect.	569

(2) The board shall advertise for bids once each week for a	570
period of not less than two consecutive weeks in a newspaper of	571
general circulation in the district before the date specified by	572
the board for receiving bids. The board may also cause notice to	573
be inserted in trade papers or other publications designated by	574
it or to be distributed by electronic means, including posting	575
the notice on the board's internet web site. If the board posts	576
the notice on its web site, it may eliminate the second notice	577
otherwise required to be published in a newspaper of general	578
circulation within the school district, provided that the first	579
notice published in such newspaper meets all of the following	580
requirements:	581

(a) It is published at least two weeks before the opening of	582
bids.	583

(b) It includes a statement that the notice is posted on the	584
board of education's internet web site.	585

(c) It includes the internet address of the board's internet	586
web site.	587

(d) It includes instructions describing how the notice may be	588
accessed on the board's internet web site.	589

(3) Unless the board extends the time for the opening of bids	590
they shall be opened at the time and place specified by the board	591
in the advertisement for the bids.	592

(4) Each bid shall contain the name of every person	593
interested therein. Each bid shall meet the requirements of	594
section 153.54 of the Revised Code.	595

(5) When both labor and materials are embraced in the work	596
bid for, the board may require that each be separately stated in	597
the bid, with the price thereof, or may require that bids be	598
submitted without such separation.	599

(6) None but the lowest responsible bid shall be accepted.	600
The board may reject all the bids, or accept any bid for both	601
labor and material for such improvement or repair, which is the	602
lowest in the aggregate. In all other respects, the award of	603
contracts for improvement or repair, but not for purchases made	604
under section 3327.08 of the Revised Code, shall be pursuant to	605
section 153.12 of the Revised Code.	606

(7) The contract shall be between the board and the bidders.	607
The board shall pay the contract price for the work pursuant to	608
sections 153.13 and 153.14 of the Revised Code. The board shall	609
approve and retain the estimates referred to in section 153.13 of	610
the Revised Code and make them available to the auditor of state	611
upon request.	612

(8) When two or more bids are equal, in the whole, or in any	613
part thereof, and are lower than any others, either may be	614
accepted, but in no case shall the work be divided between such	615
bidders.	616

(9) When there is reason to believe there is collusion or	617
combination among the bidders, or any number of them, the bids of	618
those concerned therein shall be rejected.	619

(B) Division (A) of this section does not apply to the board	620
of education of any school district in any of the following	621
situations:	622

(1) The acquisition of educational materials used in	623
teaching.	624

(2) If the board determines and declares by resolution	625
adopted by two-thirds of all its members that any item is	626
available and can be acquired only from a single source.	627

(3) If the board declares by resolution adopted by two-thirds	628
of all its members that division (A) of this section does not	629
apply to any installation, modification, or remodeling involved in	630
anyof either of the following:	631

(a) An energy conservation measure undertaken through an	632
installment payment contract under section 3313.372 of the	633
Revised Code or undertaken pursuant to division (G)(1) of section	634
133.06 of the Revised Code;	635

(b) A renewable energy generation measure, including a solar	636
energy system under section 3313.377 of the Revised Code,	637
undertaken through an installment payment contract under section	638
3313.372 of the Revised Code or undertaken pursuant to division	639
(G)(2) of section 133.06 of the Revised Code.	640

(4) The acquisition of computer software for instructional	641
purposes and computer hardware for instructional purposes pursuant	642
to division (B)(4) of section 3313.37 of the Revised Code.	643

(C) No resolution adopted pursuant to division (B)(2) or (3)	644
of this section shall have any effect on whether sections 153.12	645
to 153.14 and 153.54 of the Revised Code apply to the board of	646
education of any school district with regard to any item.	647

Sec. 4928.62.  (A) There is hereby created the advanced	648
energy program, which shall be administered by the director of	649
development. Under the program, the director may authorize the use	650
of moneys in the advanced energy fund for financial, technical,	651
and related assistance for advanced energy projects in this state	652
or for economic development assistance, in furtherance of the	653
purposes set forth in section 4928.63 of the Revised Code. To the	654
extent feasible given approved applications for assistance, the	655
assistance shall be distributed among the certified territories of	656
electric distribution utilities and participating electric	657
cooperatives, and among the service areas of participating	658
municipal electric utilities, in amounts proportionate to the	659
remittances of each utility and cooperative under divisions (B)(1)	660
and (3) of section 4928.61 of the Revised Code.	661

The director shall not authorize financial assistance for an	662
advanced energy project under the program unless the director	663
first determines that the project will create new jobs or preserve	664
existing jobs in this state or use innovative technologies or	665
materials.	666

(B) In carrying out sections 4928.61 to 4928.63 of the	667
Revised Code, the director may do all of the following to further	668
the public interest in advanced energy projects and economic	669
development:	670

(1) Award grants, contracts, loans, loan participation	671
agreements, linked deposits, and energy production incentives;	672

(2) Acquire in the name of the director any property of any	673
kind or character in accordance with this section, by purchase,	674
purchase at foreclosure, or exchange, on such terms and in such	675
manner as the director considers proper;	676

(3) Make and enter into all contracts and agreements	677
necessary or incidental to the performance of the director's	678
duties and the exercise of the director's powers under sections	679
4928.61 to 4928.63 of the Revised Code;	680

(4) Employ or enter into contracts with financial	681
consultants, marketing consultants, consulting engineers,	682
architects, managers, construction experts, attorneys, technical	683
monitors, energy evaluators, or other employees or agents as the	684
director considers necessary, and fix their compensation;	685

(5) Adopt rules prescribing the application procedures for	686
financial assistance under the advanced energy program; the terms	687
and conditions of any grants, contracts, loans, loan participation	688
agreements, linked deposits, and energy production incentives;	689
criteria pertaining to the eligibility of participating lending	690
institutions; and any other matters necessary for the	691
implementation of the program;	692

(6) Do all things necessary and appropriate for the operation	693
of the program.	694

(C) The department of development may hold ownership to any	695
unclaimed energy efficiency and renewable energy emission	696
allowances provided for in Chapter 3745-14 of the Administrative	697
Code or otherwise, that result from advanced energy projects that	698
receive funding from the advanced energy fund, and it may use the	699
allowances to further the public interest in advanced energy	700
projects or for economic development.	701

(D) Financial statements, financial data, and trade secrets	702
submitted to or received by the director from an applicant or	703
recipient of financial assistance under sections 4928.61 to	704
4928.63 of the Revised Code, or any information taken from those	705
statements, data, or trade secrets for any purpose, are not public	706
records for the purpose of section 149.43 of the Revised Code.	707

(E) Nothing in the amendments of sections 4928.61, 4928.62,	708
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	709
general assembly shall affect any pending or effected assistance,	710
pending or effected purchases or exchanges of property made, or	711
pending or effected contracts or agreements entered into pursuant	712
to division (A) or (B) of this section as the section existed	713
prior to the effective date of those amendments, January 4, 2007,	714
or shall affect the exemption provided under division (C) of this	715
section as the section existed prior to that effective date.	716

(F) Any assistance a school district receives for an advanced	717
energy project, including a geothermal heating, ventilating, and	718
air conditioning system, and renewable energy generation measures	719
under sections 3313.372 and 3313.377 of the Revised Code, shall be	720
in addition to any assistance provided under Chapter 3318. of the	721
Revised Code and. Any assistance for an advanced energy project	722
under this division shall not be included as part of the district	723
or state portion of the basic project cost under that chapter	724
Chapter 3318. of the Revised Code.	725

Section 2. That existing sections 133.06, 133.20, 3313.372,	726
3313.46, and 4928.62 of the Revised Code are hereby repealed.	727