As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 562

Representative Dyer 

Cosponsor: Representative Heard 

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A BILL

To amend sections 3314.013, 3314.016, 3314.02,

1

3314.021, 3314.025, 3314.03, 3314.05, and 3314.35;

2

to enact new section 3314.014; and to repeal

3

section 3314.014 of the Revised Code to specify

4

the conditions for establishing a new start-up

5

community school after June 30, 2011, and to

6

repeal the prohibition on persons serving on the

7

governing authorities of more than two start-up

8

community schools simultaneously.

9

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

Section 1.  That sections 3314.013, 3314.016, 3314.02,	10
3314.021, 3314.025, 3314.03, 3314.05, and 3314.35 be amended and	11
new section 3314.014 of the Revised Code be enacted to read as	12
follows:	13

Sec. 3314.013.  (A)(1) Until July 1, 2000, no more than	14
seventy-five contracts between start-up schools and the state	15
board of education may be in effect outside the pilot project area	16
at any time under this chapter.	17

(2) After July 1, 2000, and until July 1, 2001, no more than	18
one hundred twenty-five contracts between start-up schools and the	19
state board of education may be in effect outside the pilot	20
project area at any time under this chapter.	21

(3) This division applies only to contracts between start-up	22
schools and the state board of education and contracts between	23
start-up schools and entities described in divisions (C)(1)(b) to	24
(f) of section 3314.02 of the Revised Code.	25

Until July 1, 2005, not more than two hundred twenty-five	26
contracts to which this division applies may be in effect at any	27
time under this chapter.	28

(4) This division applies only to contracts between start-up	29
schools and entities described in divisions (C)(1)(b) to (f) of	30
section 3314.02 of the Revised Code.	31

Except as otherwise provided in section 3314.014 of the	32
Revised Code, after July 1, 2005, and until July 1, 2007, the	33
number of contracts to which this division applies in effect at	34
any time under this chapter shall be not more than thirty plus the	35
number of such contracts with schools that were open for operation	36
as of May 1, 2005.	37

(5) This division applies only to contracts between a	38
conversion school that is an internet- or computer-based community	39
school or a start-up school and the board of education of the	40
school district in which the school is or is proposed to be	41
located.	42

Except as otherwise provided in section 3314.014 of the	43
Revised Code, until July 1, 2007, the number of contracts to which	44
this division applies in effect at any time under this chapter	45
shall be not more than thirty plus the number of such contracts	46
with schools that were open for operation as of May 1, 2005.	47

(6) Until the effective date of any standards enacted by the	48
general assembly governing the operation of internet- or	49
computer-based community schools, no internet- or computer-based	50
community school shall operate unless the school was open for	51
instruction as of May 1, 2005. No entity described in division	52
(C)(1) of section 3314.02 of the Revised Code shall enter into a	53
contract to sponsor an internet- or computer-based community	54
school, including a conversion school, between May 1, 2005, and	55
the effective date of any standards enacted by the general	56
assembly governing the operation of internet- or computer-based	57
community schools, except as follows:	58

(a) Any(1) The entity described in division (C)(1) of that	59
section may renew a contract that the entity entered into with an	60
internet- or computer-based community school prior to May 1, 2005,	61
if the school was open for operation as of that date.	62

(b) Any(2) The entity described in divisions (C)(1)(a) to	63
(e) of that section may assume sponsorship of an existing	64
internet- or computer-based community school that was formerly	65
sponsored by another entity and may enter into a contract with	66
that community school in accordance with section 3314.03 of the	67
Revised Code.	68

(c) Any entity described in division (C)(1)(f) of that	69
section may assume sponsorship of an existing internet- or	70
computer-based community school in accordance with division (A)(7)	71
of this section and may enter into a contract with that community	72
school in accordance with section 3314.03 of the Revised Code.	73

If a sponsor entered into a contract with an internet- or	74
computer-based community school, including a conversion school,	75
but the school was not open for operation as of May 1, 2005, the	76
contract shall be void and the entity shall not enter into another	77
contract with the school until the effective date of any standards	78
enacted by the general assembly governing the operation of	79
internet- or computer-based community schools.	80

(7) Until July 1, 2005, any entity described in division	81
(C)(1)(f) of section 3314.02 of the Revised Code may sponsor only	82
a community school that formerly was sponsored by the state board	83
of education under division (C)(1)(d) of that section, as it	84
existed prior to April 8, 2003. After July 1, 2005, any such	85
entity may assume sponsorship of any existing community school,	86
and may sponsor any new community school that is not an internet-	87
or computer-based community school. Beginning on the effective	88
date of any standards enacted by the general assembly governing	89
the operation of internet- or computer-based community schools,	90
any such entity may sponsor a new internet- or computer-based	91
community school.	92

(8)(B) Nothing in division (A) of this section prohibits aan	93
internet- or a computer-based community school from increasing the	94
number of grade levels it offers.	95

(B)(C) Within twenty-four hours of a request by any person,	96
the superintendent of public instruction shall indicate the number	97
of preliminary agreements for start-up schools currently	98
outstanding and the number of contracts for these schools in	99
effect at the time of the request.	100

(C) It is the intent of the general assembly to consider	101
whether to provide limitations on the number of start-up community	102
schools after July 1, 2001, following its examination of the	103
results of the studies by the legislative office of education	104
oversight required under Section 50.39 of Am. Sub. H.B. No. 215 of	105
the 122nd general assembly and Section 50.52.2 of Am. Sub. H.B.	106
No. 215 of the 122nd general assembly, as amended by Am. Sub. H.B.	107
No. 770 of the 122nd general assembly.	108

Sec. 3314.014. (A) As used in this section, "advocate" means	109
the governing authority of an existing community school that is	110
managed by an operator that meets the requirements of divisions	111
(B)(2) and (3) of this section. However, the governing authority	112
of a new start-up school that has entered into a contract with an	113
advocate under division (D) of this section shall not be eligible	114
to be an advocate itself until that contract is no longer in	115
effect.	116

(B) The governing authority of each new start-up school that	117
first opens for instruction after June 30, 2011, shall enter into	118
a contract with an operator that meets the following requirements	119
or shall comply with division (D) of this section:	120

(1) The operator manages at least one other school in Ohio.

121

(2) No Ohio school managed by the operator was declared to be	122
under an academic watch or in a state of academic emergency on its	123
most recent report card issued under section 3302.03 of the	124
Revised Code.	125

(3) The operator satisfies one of the following conditions:

126

(a) Each Ohio school managed by the operator was declared to	127
be in need of continuous improvement on its most recent report	128
card issued under section 3302.03 of the Revised Code.	129

(b) At least one Ohio school managed by the operator was	130
declared to be effective or excellent on its most recent report	131
card issued under section 3302.03 of the Revised Code.	132

(4) The operator has not reached any limit prescribed by	133
division (C) of this section on the number of new start-up schools	134
to which this section applies with which the operator may contract	135
in the applicable school year.	136

(C) In each school year in which an operator satisfies the	137
condition in division (B)(3)(a) of this section, the operator may	138
enter into a contract with one new start-up school to which this	139
section applies. In each school year in which an operator	140
satisfies the condition in division (B)(3)(b) of this section, the	141
operator may enter into a contract with any number of new start-up	142
schools to which this section applies. A renewal of an existing	143
contract with a new start-up school to which this section applies	144
shall not count toward any limit prescribed by this division.	145

(D) As an alternative to entering into a contract with an	146
operator that meets the requirements of division (B) of this	147
section, the governing authority of a new start-up school that	148
first opens for instruction after June 30, 2011, may enter into a	149
contract with an operator that currently does not manage any	150
schools in Ohio. If the governing authority elects to enter into a	151
contract with an operator that currently does not manage any Ohio	152
schools, the governing authority also shall enter into a separate	153
contract with an advocate. The initial term of the contract with	154
the advocate shall be at least two full school years. The contract	155
may be renewed for any number of full school years.	156

(1) The contract with the advocate shall require the advocate	157
to provide the governing authority and operator of the new	158
start-up school with technical assistance and advice in handling	159
functions related to opening the school and successfully managing	160
the school's daily operations. The contract shall specify the	161
duties of the advocate, which may include, but are not limited to,	162
the following:	163

(a) Reviewing the new start-up school's contract with its	164
sponsor adopted under section 3314.03 of the Revised Code;	165

(b) Consistently evaluating the new start-up school's	166
educational plan and financial plan and the implementation of	167
those plans;	168

(c) Making site visits to the new start-up school to provide	169
guidance and assist in solving problems.	170

(2) The contract with the advocate may require the governing	171
authority or operator of the new start-up school to make payments,	172
in an amount not to exceed five hundred dollars per month, to the	173
advocate for the services provided by the advocate.	174

(3) If the term of the contract with the advocate is longer	175
than two school years, the advocate may terminate the contract at	176
any time between the end of the initial two school years of the	177
contract and the contract's expiration, upon a determination that	178
the new start-up school is not making sufficient progress toward	179
becoming a successful school. The termination shall take effect	180
only at the end of a school year. The advocate's decision to	181
terminate the contract is final and may not be appealed.	182

(E) No operator hired by a new start-up school under division	183
(D) of this section shall enter into a contract for the management	184
of any other new start-up school to which this section applies	185
until the department issues a report card under section 3302.03 of	186
the Revised Code for the second year of operation of the new	187
start-up school that hired the operator. After the issuance of	188
that report card, the governing authority of any new start-up	189
school to which this section applies may enter into a contract	190
with the operator in accordance with division (B) of this section.	191

Sec. 3314.016.  (A) After June 30, 2007, and until June 30,	192
2011, a new start-up school may be established under this chapter	193
only if the school's governing authority enters into a contract	194
with an operator that manages other schools in the United States	195
that perform at a level higher than academic watch. The governing	196
authority of the community school may sign a contract with an	197
operator only if the operator has fewer contracts with the	198
governing authorities of new start-up schools established under	199
this chapter after June 30, 2007, than the number of schools	200
managed by the operator in the United States that perform at a	201
level higher than academic watch, as determined by the department	202
of education. However, the governing authority shall not contract	203
with an operator that currently manages any community schools in	204
Ohio for which the department issues annual report cards under	205
section 3314.012 of the Revised Code, unless the latest report	206
card issued for at least one of those schools designates a	207
performance rating under section 3302.03 of the Revised Code of in	208
need of continuous improvement or higher.	209

(B) Notwithstanding division (A) of this section, the	210
governing authority of a start-up school sponsored by an entity	211
described in divisions (C)(1)(b) to (f) of section 3314.02 of the	212
Revised Code may establish one additional school serving the same	213
grade levels and providing the same educational program as the	214
current start-up school and may open that additional school in the	215
2007-2008 school year, if both of the following conditions are	216
met:	217

(1) The governing authority entered into another contract	218
with the same sponsor or a different sponsor described in	219
divisions (C)(1)(b) to (f) of section 3314.02 of the Revised Code	220
and filed a copy of that contract with the superintendent of	221
public instruction prior to March 15, 2006.	222

(2) The governing authority's current school satisfies all of	223
the following conditions:	224

(a) The school currently is rated as excellent or effective	225
pursuant to section 3302.03 of the Revised Code.	226

(b) The school made adequate yearly progress, as defined in	227
section 3302.01 of the Revised Code, for the previous school year.	228

(c) The school has been in operation for at least four school	229
years.	230

(d) The school is not managed by an operator.

231

(C) Notwithstanding division (A) of this section, the	232
governing authority of a start-up school sponsored by the big	233
eight school district in which the school is located may establish	234
one additional start-up school that is located in the same school	235
district and that provides a general educational program to	236
students in any or all of grades kindergarten through five to	237
facilitate their transition to the current start-up school, and	238
may open the additional start-up school in the 2009-2010 school	239
year, if both of the following conditions are met:	240

(1) The governing authority enters into another contract with	241
the same sponsor and files a copy of the contract with the	242
superintendent of public instruction prior to March 15, 2009.	243

(2) The governing authority's current school satisfies all of	244
the following conditions:	245

(a) The school provided instruction to students for eleven	246
months in the previous school year.	247

(b) The school has been in operation for at least two school	248
years.	249

(c) The school qualified to be rated in need of continuous	250
improvement or higher pursuant to section 3302.03 of the Revised	251
Code for its first school year of operation, even though the	252
department of education did not issue a report card for the school	253
for that school year.	254

Sec. 3314.02.  (A) As used in this chapter:

255

(1) "Sponsor" means an entity listed in division (C)(1) of	256
this section, which has been approved by the department of	257
education to sponsor community schools and with which the	258
governing authority of the proposed community school enters into a	259
contract pursuant to this section.	260

(2) "Pilot project area" means the school districts included	261
in the territory of the former community school pilot project	262
established by former Section 50.52 of Am. Sub. H.B. No. 215 of	263
the 122nd general assembly.	264

(3) "Challenged school district" means any of the following:

265

(a) A school district that is part of the pilot project area;

266

(b) A school district that is either in a state of academic	267
emergency or in a state of academic watch under section 3302.03 of	268
the Revised Code;	269

(c) A big eight school district.

270

(4) "Big eight school district" means a school district that	271
for fiscal year 1997 had both of the following:	272

(a) A percentage of children residing in the district and	273
participating in the predecessor of Ohio works first greater than	274
thirty per cent, as reported pursuant to section 3317.10 of the	275
Revised Code;	276

(b) An average daily membership greater than twelve thousand,	277
as reported pursuant to former division (A) of section 3317.03 of	278
the Revised Code.	279

(5) "New start-up school" means a community school other than	280
one created by converting all or part of an existing public school	281
or educational service center building, as designated in the	282
school's contract pursuant to division (A)(17) of section 3314.03	283
of the Revised Code.	284

(6) "Urban school district" means one of the state's	285
twenty-one urban school districts as defined in division (O) of	286
section 3317.02 of the Revised Code as that section existed prior	287
to July 1, 1998.	288

(7) "Internet- or computer-based community school" means a	289
community school established under this chapter in which the	290
enrolled students work primarily from their residences on	291
assignments in nonclassroom-based learning opportunities provided	292
via an internet- or other computer-based instructional method that	293
does not rely on regular classroom instruction or via	294
comprehensive instructional methods that include internet-based,	295
other computer-based, and noncomputer-based learning	296
opportunities.	297

(8) "Operator" means either of the following:

298

(a) An individual or nonprofit or for-profit organization	299
that manages the daily operations of a community school pursuant	300
to a contract between the operator and the school's governing	301
authority;	302

(b) A nonprofit organization that provides programmatic	303
oversight and support to a community school under a contract with	304
the school's governing authority and that retains the right to	305
terminate its affiliation with the school if the school fails to	306
meet the organization's quality standards.	307

(B) Any person or group of individuals may initially propose	308
under this division the conversion of all or a portion of a public	309
school or a building operated by an educational service center to	310
a community school. The proposal shall be made to the board of	311
education of the city, local, exempted village, or joint	312
vocational school district in which the public school is proposed	313
to be converted or, in the case of the conversion of a building	314
operated by an educational service center, to the governing board	315
of the service center. Upon receipt of a proposal, a board may	316
enter into a preliminary agreement with the person or group	317
proposing the conversion of the public school or service center	318
building, indicating the intention of the board to support the	319
conversion to a community school. A proposing person or group that	320
has a preliminary agreement under this division may proceed to	321
finalize plans for the school, establish a governing authority for	322
the school, and negotiate a contract with the board. Provided the	323
proposing person or group adheres to the preliminary agreement and	324
all provisions of this chapter, the board shall negotiate in good	325
faith to enter into a contract in accordance with section 3314.03	326
of the Revised Code and division (C) of this section.	327

(C)(1) Any person or group of individuals may propose under	328
this division the establishment of a new start-up school to be	329
located in a challenged school district. The proposal may be made	330
to any of the following entities:	331

(a) The board of education of the district in which the	332
school is proposed to be located;	333

(b) The board of education of any joint vocational school	334
district with territory in the county in which is located the	335
majority of the territory of the district in which the school is	336
proposed to be located;	337

(c) The board of education of any other city, local, or	338
exempted village school district having territory in the same	339
county where the district in which the school is proposed to be	340
located has the major portion of its territory;	341

(d) The governing board of any educational service center, as	342
long as the proposed school will be located in a county within the	343
territory of the service center or in a county contiguous to such	344
county;	345

(e) A sponsoring authority designated by the board of	346
trustees of any of the thirteen state universities listed in	347
section 3345.011 of the Revised Code or the board of trustees	348
itself as long as a mission of the proposed school to be specified	349
in the contract under division (A)(2) of section 3314.03 of the	350
Revised Code and as approved by the department of education under	351
division (B)(2) of section 3314.015 of the Revised Code will be	352
the practical demonstration of teaching methods, educational	353
technology, or other teaching practices that are included in the	354
curriculum of the university's teacher preparation program	355
approved by the state board of education;	356

(f) Any qualified tax-exempt entity under section 501(c)(3)	357
of the Internal Revenue Code as long as all of the following	358
conditions are satisfied:	359

(i) The entity has been in operation for at least five years	360
prior to applying to be a community school sponsor.	361

(ii) The entity has assets of at least five hundred thousand	362
dollars and a demonstrated record of financial responsibility.	363

(iii) The department of education has determined that the	364
entity is an education-oriented entity under division (B)(3) of	365
section 3314.015 of the Revised Code and the entity has a	366
demonstrated record of successful implementation of educational	367
programs.	368

(iv) The entity is not a community school.

369

Any entity described in division (C)(1) of this section may	370
enter into a preliminary agreement pursuant to division (C)(2) of	371
this section with the proposing person or group.	372

(2) A preliminary agreement indicates the intention of an	373
entity described in division (C)(1) of this section to sponsor the	374
community school. A proposing person or group that has such a	375
preliminary agreement may proceed to finalize plans for the	376
school, establish a governing authority as described in division	377
(E) of this section for the school, and negotiate a contract with	378
the entity. Provided the proposing person or group adheres to the	379
preliminary agreement and all provisions of this chapter, the	380
entity shall negotiate in good faith to enter into a contract in	381
accordance with section 3314.03 of the Revised Code.	382

(3) A new start-up school that is established in a school	383
district while that district is either in a state of academic	384
emergency or in a state of academic watch under section 3302.03 of	385
the Revised Code may continue in existence once the school	386
district is no longer in a state of academic emergency or academic	387
watch, provided there is a valid contract between the school and a	388
sponsor.	389

(4) A copy of every preliminary agreement entered into under	390
this division shall be filed with the superintendent of public	391
instruction.	392

(D) A majority vote of the board of a sponsoring entity and a	393
majority vote of the members of the governing authority of a	394
community school shall be required to adopt a contract and convert	395
the public school or educational service center building to a	396
community school or establish the new start-up school. Beginning	397
September 29, 2005, adoption of the contract shall occur not later	398
than the fifteenth day of March, and signing of the contract shall	399
occur not later than the fifteenth day of May, prior to the school	400
year in which the school will open. The governing authority shall	401
notify the department of education when the contract has been	402
signed. Subject to sections 3314.013, 3314.014, 3314.016, and	403
3314.017 of the Revised Code, an unlimited number of community	404
schools may be established in any school district provided that a	405
contract is entered into for each community school pursuant to	406
this chapter.	407

(E)(1) As used in this division, "immediate relatives" are	408
limited to spouses, children, parents, grandparents, siblings, and	409
in-laws.	410

(1) Each new start-up community school established under this	411
chapter shall be under the direction of a governing authority	412
which shall consist of a board of not less than five individuals.	413

No person shall serve on the governing authority or operate	414
the community school under contract with the governing authority	415
so long as the person owes the state any money or is in a dispute	416
over whether the person owes the state any money concerning the	417
operation of a community school that has closed.	418

(2) No person shall serve on the governing authorities of	419
more than two start-up community schools at the same time.	420

(3) No present or former member, or immediate relative of a	421
present or former member, of the governing authority of any	422
community school established under this chapter shall be an owner,	423
employee, or consultant of any nonprofit or for-profit operator of	424
a community school, unless at least one year has elapsed since the	425
conclusion of the person's membership.	426

(F)(1) A new start-up school that is established prior to	427
August 15, 2003, in an urban school district that is not also a	428
big-eight school district may continue to operate after that date	429
and the contract between the school's governing authority and the	430
school's sponsor may be renewed, as provided under this chapter,	431
after that date, but no additional new start-up schools may be	432
established in such a district unless the district is a challenged	433
school district as defined in this section as it exists on and	434
after that date.	435

(2) A community school that was established prior to June 29,	436
1999, and is located in a county contiguous to the pilot project	437
area and in a school district that is not a challenged school	438
district may continue to operate after that date, provided the	439
school complies with all provisions of this chapter. The contract	440
between the school's governing authority and the school's sponsor	441
may be renewed, but no additional start-up community school may be	442
established in that district unless the district is a challenged	443
school district.	444

(3) Any educational service center that, on June 30, 2007,	445
sponsors a community school that is not located in a county within	446
the territory of the service center or in a county contiguous to	447
such county may continue to sponsor that community school on and	448
after June 30, 2007, and may renew its contract with the school.	449
However, the educational service center shall not enter into a	450
contract with any additional community school unless the school is	451
located in a county within the territory of the service center or	452
in a county contiguous to such county.	453

Sec. 3314.021. (A) This section applies to any entity that is	454
exempt from taxation under section 501(c)(3) of the Internal	455
Revenue Code and that satisfies the conditions specified in	456
divisions (C)(1)(f)(ii) and (iii) of section 3314.02 of the	457
Revised Code but does not satisfy the condition specified in	458
division (C)(1)(f)(i) of that section.	459

(B) Notwithstanding division (C)(1)(f)(i) of section 3314.02	460
of the Revised Code, an entity described in division (A) of this	461
section may do both of the following without obtaining the	462
department of education's initial approval of its sponsorship	463
under divisions (A)(2) and (B)(1) of section 3314.015 of the	464
Revised Code:	465

(1) Succeed the board of trustees of a state university	466
located in the pilot project area or that board's designee as the	467
sponsor of a community school established under this chapter;	468

(2) Continue to sponsor that school in conformance with the	469
terms of the contract between the board of trustees or its	470
designee and the governing authority of the community school and	471
renew that contract as provided in division (E) of section 3314.03	472
of the Revised Code.	473

(C) The entity that succeeds the board of trustees or the	474
board's designee as sponsor of a community school under division	475
(B) of this section also may enter into contracts to sponsor other	476
community schools located in any challenged school district,	477
without obtaining the department's initial approval of its	478
sponsorship of those schools under divisions (A)(2) and (B)(1) of	479
section 3314.015 of the Revised Code, and not subject to the	480
restriction of division (A)(7) of section 3314.013 of the Revised	481
Code, as long as the contracts conform with and the entity	482
complies with all other requirements of this chapter.	483

(D) Regardless of the entity's authority to sponsor community	484
schools without the initial approval of the department, the entity	485
is under the continuing oversight of the department in accordance	486
with rules adopted under section 3314.015 of the Revised Code.	487

Sec. 3314.025. The governing authority of a start-up	488
community school may provide by resolution for the compensation of	489
each of its members in an amount up to one hundred twenty-five	490
dollars for each meeting of the governing authority that the	491
member attends. However, no individual shall be compensated more	492
than one hundred twenty-five dollars in any month by each	493
governing authority of which the individual is a member.	494

Except in the case of a community school that has contracted	495
with an operator, as defined in section 3314.014 of the Revised	496
Code, the compensation for governing authority members shall be	497
paid by the school's fiscal officer from the operating funds held	498
in the treasury of the school. In the case of a community school	499
that has contracted with an operator, the compensation for	500
governing authority members shall be paid by the operator from	501
funds paid to the operator by the school.	502

If an individual is a member of the governing authority of	503
more than one start-up community school and those governing	504
authorities convene their meetings at the same place on the same	505
day, that individual shall receive as compensation for all of	506
those meetings combined not more than the highest amount	507
per-member per-meeting specified by the governing authorities of	508
those schools. The amount paid to that individual for that day	509
shall be divided evenly among the start-up community schools for	510
which that individual is a governing authority member, and for	511
which the governing authorities have specified compensation for	512
their members in accordance with this section.	513

Sec. 3314.03.  A copy of every contract entered into under	514
this section shall be filed with the superintendent of public	515
instruction.	516

(A) Each contract entered into between a sponsor and the	517
governing authority of a community school shall specify the	518
following:	519

(1) That the school shall be established as either of the	520
following:	521

(a) A nonprofit corporation established under Chapter 1702.	522
of the Revised Code, if established prior to April 8, 2003;	523

(b) A public benefit corporation established under Chapter	524
1702. of the Revised Code, if established after April 8, 2003;.	525

(2) The education program of the school, including the	526
school's mission, the characteristics of the students the school	527
is expected to attract, the ages and grades of students, and the	528
focus of the curriculum;	529

(3) The academic goals to be achieved and the method of	530
measurement that will be used to determine progress toward those	531
goals, which shall include the statewide achievement assessments;	532

(4) Performance standards by which the success of the school	533
will be evaluated by the sponsor;	534

(5) The admission standards of section 3314.06 of the Revised	535
Code and, if applicable, section 3314.061 of the Revised Code;	536

(6)(a) Dismissal procedures;

537

(b) A requirement that the governing authority adopt an	538
attendance policy that includes a procedure for automatically	539
withdrawing a student from the school if the student without a	540
legitimate excuse fails to participate in one hundred five	541
consecutive hours of the learning opportunities offered to the	542
student.	543

(7) The ways by which the school will achieve racial and	544
ethnic balance reflective of the community it serves;	545

(8) Requirements for financial audits by the auditor of	546
state. The contract shall require financial records of the school	547
to be maintained in the same manner as are financial records of	548
school districts, pursuant to rules of the auditor of state.	549
Audits shall be conducted in accordance with section 117.10 of the	550
Revised Code.	551

(9) The facilities to be used and their locations;

552

(10) Qualifications of teachers, including a requirement that	553
the school's classroom teachers be licensed in accordance with	554
sections 3319.22 to 3319.31 of the Revised Code, except that a	555
community school may engage noncertificated persons to teach up to	556
twelve hours per week pursuant to section 3319.301 of the Revised	557
Code;	558

(11) That the school will comply with the following	559
requirements:	560

(a) The school will provide learning opportunities to a	561
minimum of twenty-five students for a minimum of nine hundred	562
twenty hours per school year.	563

(b) The governing authority will purchase liability	564
insurance, or otherwise provide for the potential liability of the	565
school.	566

(c) The school will be nonsectarian in its programs,	567
admission policies, employment practices, and all other	568
operations, and will not be operated by a sectarian school or	569
religious institution.	570

(d) The school will comply with sections 9.90, 9.91, 109.65,	571
121.22, 149.43, 2151.357, 2151.421, 2313.18, 3301.0710, 3301.0711,	572
3301.0712, 3301.0715, 3313.472, 3313.50, 3313.536, 3313.608,	573
3313.6012, 3313.6013, 3313.6014, 3313.6015, 3313.643, 3313.648,	574
3313.66, 3313.661, 3313.662, 3313.666, 3313.667, 3313.67,	575
3313.671, 3313.672, 3313.673, 3313.69, 3313.71, 3313.716,	576
3313.718, 3313.719, 3313.80, 3313.86, 3313.96, 3319.073, 3319.321,	577
3319.39, 3319.391, 3319.41, 3321.01, 3321.041, 3321.13, 3321.14,	578
3321.17, 3321.18, 3321.19, 3321.191, 3327.10, 4111.17, 4113.52,	579
and 5705.391 and Chapters 117., 1347., 2744., 3365., 3742., 4112.,	580
4123., 4141., and 4167. of the Revised Code as if it were a school	581
district and will comply with section 3301.0714 of the Revised	582
Code in the manner specified in section 3314.17 of the Revised	583
Code.	584

(e) The school shall comply with Chapter 102. and section	585
2921.42 of the Revised Code.	586

(f) The school will comply with sections 3313.61, 3313.611,	587
and 3313.614 of the Revised Code, except that for students who	588
enter ninth grade for the first time before July 1, 2010, the	589
requirement in sections 3313.61 and 3313.611 of the Revised Code	590
that a person must successfully complete the curriculum in any	591
high school prior to receiving a high school diploma may be met by	592
completing the curriculum adopted by the governing authority of	593
the community school rather than the curriculum specified in Title	594
XXXIII of the Revised Code or any rules of the state board of	595
education. Beginning with students who enter ninth grade for the	596
first time on or after July 1, 2010, the requirement in sections	597
3313.61 and 3313.611 of the Revised Code that a person must	598
successfully complete the curriculum of a high school prior to	599
receiving a high school diploma shall be met by completing the	600
Ohio core curriculum prescribed in division (C) of section	601
3313.603 of the Revised Code, unless the person qualifies under	602
division (D) or (F) of that section. Each school shall comply with	603
the plan for awarding high school credit based on demonstration of	604
subject area competency, adopted by the state board of education	605
under division (J) of section 3313.603 of the Revised Code.	606

(g) The school governing authority will submit within four	607
months after the end of each school year a report of its	608
activities and progress in meeting the goals and standards of	609
divisions (A)(3) and (4) of this section and its financial status	610
to the sponsor and the parents of all students enrolled in the	611
school.	612

(h) The school, unless it is an internet- or computer-based	613
community school, will comply with section 3313.801 of the Revised	614
Code as if it were a school district.	615

(12) Arrangements for providing health and other benefits to	616
employees;	617

(13) The length of the contract, which shall begin at the	618
beginning of an academic year. No contract shall exceed five years	619
unless such contract has been renewed pursuant to division (E) of	620
this section.	621

(14) The governing authority of the school, which shall be	622
responsible for carrying out the provisions of the contract;	623

(15) A financial plan detailing an estimated school budget	624
for each year of the period of the contract and specifying the	625
total estimated per pupil expenditure amount for each such year.	626
The plan shall specify for each year the base formula amount that	627
will be used for purposes of funding calculations under section	628
3314.08 of the Revised Code. This base formula amount for any year	629
shall not exceed the formula amount defined under section 3317.02	630
of the Revised Code. The plan may also specify for any year a	631
percentage figure to be used for reducing the per pupil amount of	632
the subsidy calculated pursuant to section 3317.029 of the Revised	633
Code the school is to receive that year under section 3314.08 of	634
the Revised Code.	635

(16) Requirements and procedures regarding the disposition of	636
employees of the school in the event the contract is terminated or	637
not renewed pursuant to section 3314.07 of the Revised Code;	638

(17) Whether the school is to be created by converting all or	639
part of an existing public school or educational service center	640
building or is to be a new start-up school, and if it is a	641
converted public school or service center building, specification	642
of any duties or responsibilities of an employer that the board of	643
education or service center governing board that operated the	644
school or building before conversion is delegating to the	645
governing authority of the community school with respect to all or	646
any specified group of employees provided the delegation is not	647
prohibited by a collective bargaining agreement applicable to such	648
employees;	649

(18) Provisions establishing procedures for resolving	650
disputes or differences of opinion between the sponsor and the	651
governing authority of the community school;	652

(19) A provision requiring the governing authority to adopt a	653
policy regarding the admission of students who reside outside the	654
district in which the school is located. That policy shall comply	655
with the admissions procedures specified in sections 3314.06 and	656
3314.061 of the Revised Code and, at the sole discretion of the	657
authority, shall do one of the following:	658

(a) Prohibit the enrollment of students who reside outside	659
the district in which the school is located;	660

(b) Permit the enrollment of students who reside in districts	661
adjacent to the district in which the school is located;	662

(c) Permit the enrollment of students who reside in any other	663
district in the state.	664

(20) A provision recognizing the authority of the department	665
of education to take over the sponsorship of the school in	666
accordance with the provisions of division (C) of section 3314.015	667
of the Revised Code;	668

(21) A provision recognizing the sponsor's authority to	669
assume the operation of a school under the conditions specified in	670
division (B) of section 3314.073 of the Revised Code;	671

(22) A provision recognizing both of the following:

672

(a) The authority of public health and safety officials to	673
inspect the facilities of the school and to order the facilities	674
closed if those officials find that the facilities are not in	675
compliance with health and safety laws and regulations;	676

(b) The authority of the department of education as the	677
community school oversight body to suspend the operation of the	678
school under section 3314.072 of the Revised Code if the	679
department has evidence of conditions or violations of law at the	680
school that pose an imminent danger to the health and safety of	681
the school's students and employees and the sponsor refuses to	682
take such action;	683

(23) A description of the learning opportunities that will be	684
offered to students including both classroom-based and	685
non-classroom-based learning opportunities that is in compliance	686
with criteria for student participation established by the	687
department under division (L)(2) of section 3314.08 of the Revised	688
Code;	689

(24) The school will comply with sections 3302.04 and	690
3302.041 of the Revised Code, except that any action required to	691
be taken by a school district pursuant to those sections shall be	692
taken by the sponsor of the school. However, the sponsor shall not	693
be required to take any action described in division (F) of	694
section 3302.04 of the Revised Code.	695

(25) Beginning in the 2006-2007 school year, the school will	696
open for operation not later than the thirtieth day of September	697
each school year, unless the mission of the school as specified	698
under division (A)(2) of this section is solely to serve dropouts.	699
In its initial year of operation, if the school fails to open by	700
the thirtieth day of September, or within one year after the	701
adoption of the contract pursuant to division (D) of section	702
3314.02 of the Revised Code if the mission of the school is solely	703
to serve dropouts, the contract shall be void.	704

(B) The community school shall also submit to the sponsor a	705
comprehensive plan for the school. The plan shall specify the	706
following:	707

(1) The process by which the governing authority of the	708
school will be selected in the future;	709

(2) The management and administration of the school;

710

(3) If the community school is a currently existing public	711
school or educational service center building, alternative	712
arrangements for current public school students who choose not to	713
attend the converted school and for teachers who choose not to	714
teach in the school or building after conversion;	715

(4) The instructional program and educational philosophy of	716
the school;	717

(5) Internal financial controls.

718

(C) A contract entered into under section 3314.02 of the	719
Revised Code between a sponsor and the governing authority of a	720
community school may provide for the community school governing	721
authority to make payments to the sponsor, which is hereby	722
authorized to receive such payments as set forth in the contract	723
between the governing authority and the sponsor. The total amount	724
of such payments for oversight and monitoring of the school shall	725
not exceed three per cent of the total amount of payments for	726
operating expenses that the school receives from the state.	727

(D) The contract shall specify the duties of the sponsor	728
which shall be in accordance with the written agreement entered	729
into with the department of education under division (B) of	730
section 3314.015 of the Revised Code and shall include the	731
following:	732

(1) Monitor the community school's compliance with all laws	733
applicable to the school and with the terms of the contract;	734

(2) Monitor and evaluate the academic and fiscal performance	735
and the organization and operation of the community school on at	736
least an annual basis;	737

(3) Report on an annual basis the results of the evaluation	738
conducted under division (D)(2) of this section to the department	739
of education and to the parents of students enrolled in the	740
community school;	741

(4) Provide technical assistance to the community school in	742
complying with laws applicable to the school and terms of the	743
contract;	744

(5) Take steps to intervene in the school's operation to	745
correct problems in the school's overall performance, declare the	746
school to be on probationary status pursuant to section 3314.073	747
of the Revised Code, suspend the operation of the school pursuant	748
to section 3314.072 of the Revised Code, or terminate the contract	749
of the school pursuant to section 3314.07 of the Revised Code as	750
determined necessary by the sponsor;	751

(6) Have in place a plan of action to be undertaken in the	752
event the community school experiences financial difficulties or	753
closes prior to the end of a school year.	754

(E) Upon the expiration of a contract entered into under this	755
section, the sponsor of a community school may, with the approval	756
of the governing authority of the school, renew that contract for	757
a period of time determined by the sponsor, but not ending earlier	758
than the end of any school year, if the sponsor finds that the	759
school's compliance with applicable laws and terms of the contract	760
and the school's progress in meeting the academic goals prescribed	761
in the contract have been satisfactory. Any contract that is	762
renewed under this division remains subject to the provisions of	763
sections 3314.07, 3314.072, and 3314.073 of the Revised Code.	764

(F) If a community school fails to open for operation within	765
one year after the contract entered into under this section is	766
adopted pursuant to division (D) of section 3314.02 of the Revised	767
Code or permanently closes prior to the expiration of the	768
contract, the contract shall be void and the school shall not	769
enter into a contract with any other sponsor. A school shall not	770
be considered permanently closed because the operations of the	771
school have been suspended pursuant to section 3314.072 of the	772
Revised Code. Any contract that becomes void under this division	773
shall not count toward any statewide limit on the number of such	774
contracts prescribed by section 3314.013 of the Revised Code.	775

Sec. 3314.05.  (A) The contract between the community school	776
and the sponsor shall specify the facilities to be used for the	777
community school and the method of acquisition. Except as provided	778
in division (B)(3) of this section, no community school shall be	779
established in more than one school district under the same	780
contract.	781

(B) Division (B) of this section shall not apply to internet-	782
or computer-based community schools.	783

(1) A community school may be located in multiple facilities	784
under the same contract only if the limitations on availability of	785
space prohibit serving all the grade levels specified in the	786
contract in a single facility or division (B)(2) or (3) of this	787
section applies to the school. The school shall not offer the same	788
grade level classrooms in more than one facility.	789

(2) A community school may be located in multiple facilities	790
under the same contract and, notwithstanding division (B)(1) of	791
this section, may assign students in the same grade level to	792
multiple facilities, as long as all of the following apply:	793

(a) The governing authority of the community school filed a	794
copy of its contract with the school's sponsor under section	795
3314.03 of the Revised Code with the superintendent of public	796
instruction on or before May 15, 2008.	797

(b) The school was not open for operation prior to July 1,	798
2008.	799

(c) The governing authority has entered into and maintains a	800
contract with an operator of the type described in division	801
(A)(2)(8)(b) of section 3314.0143314.02 of the Revised Code.	802

(d) The contract with that operator qualified the school to	803
be established pursuant to division (A) of section 3314.016 of the	804
Revised Code.	805

(e) The school's rating under section 3302.03 of the Revised	806
Code does not fall below "in need of continuous improvement" for	807
two or more consecutive years.	808

(3) A new start-up community school may be established in two	809
school districts under the same contract if all of the following	810
apply:	811

(a) At least one of the school districts in which the school	812
is established is a challenged school district;	813

(b) The school operates not more than one facility in each	814
school district and, in accordance with division (B)(1) of this	815
section, the school does not offer the same grade level classrooms	816
in both facilities; and	817

(c) Transportation between the two facilities does not	818
require more than thirty minutes of direct travel time as measured	819
by school bus.	820

In the case of a community school to which division (B)(3) of	821
this section applies, if only one of the school districts in which	822
the school is established is a challenged school district, that	823
district shall be considered the school's primary location and the	824
district in which the school is located for the purposes of	825
division (A)(19) of section 3314.03 and divisions (C) and (H) of	826
section 3314.06 of the Revised Code and for all other purposes of	827
this chapter. If both of the school districts in which the school	828
is established are challenged school districts, the school's	829
governing authority shall designate one of those districts to be	830
considered the school's primary location and the district in which	831
the school is located for the purposes of those divisions and all	832
other purposes of this chapter and shall notify the department of	833
education of that designation.	834

(4) Any facility used for a community school shall meet all	835
health and safety standards established by law for school	836
buildings.	837

(C) In the case where a community school is proposed to be	838
located in a facility owned by a school district or educational	839
service center, the facility may not be used for such community	840
school unless the district or service center board owning the	841
facility enters into an agreement for the community school to	842
utilize the facility. Use of the facility may be under any terms	843
and conditions agreed to by the district or service center board	844
and the school.	845

Sec. 3314.35.  (A)(1) Except as provided in division (A)(3)	846
of this section, this section applies to any community school that	847
meets one of the following criteria after July 1, 2008, but before	848
July 1, 2009:	849

(a) The school does not offer a grade level higher than three	850
and has been declared to be in a state of academic emergency under	851
section 3302.03 of the Revised Code for four consecutive school	852
years.	853

(b) The school satisfies all of the following conditions:

854

(i) The school offers any of grade levels four to eight but	855
does not offer a grade level higher than nine.	856

(ii) The school has been declared to be in a state of	857
academic emergency under section 3302.03 of the Revised Code for	858
three consecutive school years.	859

(iii) For two of those school years, the school showed less	860
than one standard year of academic growth in either reading or	861
mathematics, as determined by the department of education in	862
accordance with rules adopted under division (A) of section	863
3302.021 of the Revised Code.	864

(c) The school satisfies all of the following conditions:

865

(i) The school offers any of grade levels ten to twelve.

866

(ii) The school has been declared to be in a state of	867
academic emergency under section 3302.03 of the Revised Code for	868
three consecutive school years.	869

(iii) For two of those school years, the school showed less	870
than two standard years of academic growth in either reading or	871
mathematics, as determined by the department in accordance with	872
rules adopted under division (A) of section 3302.021 of the	873
Revised Code.	874

(2) Except as provided in division (A)(3) of this section,	875
this section applies to any community school that meets one of the	876
following criteria after July 1, 2009:	877

(a) The school does not offer a grade level higher than three	878
and has been declared to be in a state of academic emergency under	879
section 3302.03 of the Revised Code for three of the four most	880
recent school years.	881

(b) The school satisfies all of the following conditions:

882

(i) The school offers any of grade levels four to eight but	883
does not offer a grade level higher than nine.	884

(ii) The school has been declared to be in a state of	885
academic emergency under section 3302.03 of the Revised Code for	886
two of the three most recent school years.	887

(iii) In at least two of the three most recent school years,	888
the school showed less than one standard year of academic growth	889
in either reading or mathematics, as determined by the department	890
in accordance with rules adopted under division (A) of section	891
3302.021 of the Revised Code.	892

(c) The school offers any of grade levels ten to twelve and	893
has been declared to be in a state of academic emergency under	894
section 3302.03 of the Revised Code for three of the four most	895
recent school years.	896

(3) This section does not apply to eitherany of the	897
following:	898

(a) Any community school in which a majority of the students	899
are enrolled in a dropout prevention and recovery program that is	900
operated by the school and that has been granted a waiver under	901
section 3314.36 of the Revised Code;	902

(b) Any community school in which a majority of the enrolled	903
students are children with disabilities receiving special	904
education and related services in accordance with Chapter 3323. of	905
the Revised Code;	906

(c) Any community school during the period of time that the	907
school has a valid contract with an advocate under division (D) of	908
section 3314.014 of the Revised Code. Except as otherwise provided	909
in division (A)(3)(a) or (b) of this section, upon the nonrenewal	910
or termination of that contract, the school shall become subject	911
to this section and, subject to division (D) of this section and	912
division (B) of section 3314.012 of the Revised Code, ratings	913
issued for the school under section 3302.03 of the Revised Code	914
prior to the nonrenewal or termination shall count in determining	915
if the school meets the criteria of division (A)(2) of this	916
section.	917

(B) Any community school to which this section applies shall	918
permanently close at the conclusion of the school year in which	919
the school first becomes subject to this section. The sponsor and	920
governing authority of the school shall comply with all procedures	921
for closing a community school adopted by the department under	922
division (E) of section 3314.015 of the Revised Code. The	923
governing authority of the school shall not enter into a contract	924
with any other sponsor under section 3314.03 of the Revised Code	925
after the school closes.	926

(C) Not later than July 1, 2008, the department shall	927
determine the feasibility of using the value-added progress	928
dimension, as defined in section 3302.01 of the Revised Code, as a	929
factor in evaluating the academic performance of community schools	930
described in division (A)(1)(c)(i) of this section.	931
Notwithstanding divisions (A)(1)(c)(ii) and (iii) of this section,	932
if the department determines that using the value-added progress	933
dimension to evaluate community schools described in division	934
(A)(1)(c)(i) of this section is not feasible, a community school	935
described in that division shall be required to permanently close	936
under this section only if it has been declared to be in a state	937
of academic emergency under section 3302.03 of the Revised Code	938
for four consecutive school years.	939

(D) In accordance with division (B) of section 3314.012 of	940
the Revised Code, the department shall not consider the	941
performance ratings assigned to a community school for its first	942
two years of operation when determining whether the school meets	943
the criteria prescribed by division (A)(2) of this section. The	944
department shall reevaluate each community school that the	945
department directed to close at the conclusion of the 2009-2010	946
school year to determine if the school still meets the criteria	947
prescribed by division (A)(2) of this section when the school's	948
performance ratings for its first two years of operation are not	949
considered and, if the school no longer meets those criteria, the	950
department shall not require the school to close at the conclusion	951
of that school year.	952

Section 2.  That existing sections 3314.013, 3314.016,	953
3314.02, 3314.021, 3314.025, 3314.03, 3314.05, and 3314.35 and	954
section 3314.014 of the Revised Code are hereby repealed.	955