As Reported by the Senate Education Committee

129th General Assembly Regular Session 2011-2012

Am. Sub. H. B. No. 30

Representative Gardner 

Cosponsors: Representatives Wachtmann, Stautberg, Sears, Derickson, Brenner, Maag, Adams, J., Carey, Beck, Blair, Burke, Combs, Hottinger, Snitchler, Kozlowski, Grossman, Bubp, Stebelton, Ruhl, Blessing, Huffman, Baker, Hackett, McClain, Amstutz, Roegner, Henne, Young, Anielski, Boose, Buchy, Coley, Dovilla, Duffey, Gonzales, Goodwin, Hall, Hayes, Martin, Mecklenborg, Newbold, Peterson, Rosenberger, Schuring, Slaby, Thompson, Uecker Speaker Batchelder 

Senator Hite 

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A BILL

To amend sections 3301.07, 3301.16, 3302.05, 3302.07,

1

3306.01, 3306.02, 3306.05, 3306.06, 3306.07,

2

3306.08, 3306.09, 3306.091, 3306.10, 3315.18,

3

3315.19, 3316.06, 3316.16, 3317.018, 3317.024,

4

3321.01, and 3321.05; to enact section 3301.96;

5

and to repeal sections 3306.18, 3306.25, 3306.30,

6

3306.31, 3306.33, 3306.34, 3306.35, 3306.40,

7

3313.821, 3313.822, 3315.17, 3315.171, and

8

3318.312 of the Revised Code; and to repeal

9

Section 265.70.70 of Am. Sub. H.B. 1 of the 128th

10

General Assembly and Section 9 of Sub. H.B. 318 of

11

the 128th General Assembly to eliminate spending

12

and reporting requirements related to the school

13

funding system, to eliminate the prohibition on

14

unit funding for gifted student services effective

15

after fiscal year 2011, to eliminate the

16

requirement that school districts offer all-day

17

kindergarten, to eliminate the requirement that

18

school districts annually set aside operating

19

funds for textbooks and instructional materials,

20

and to eliminate the requirement that school

21

districts establish family and civic engagement

22

teams except as required for implementation of

23

federal "Race to the Top" grants.

24

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

Section 1.  That sections 3301.07, 3301.16, 3302.05, 3302.07,	25
3306.01, 3306.02, 3306.05, 3306.06, 3306.07, 3306.08, 3306.09,	26
3306.091, 3306.10, 3315.18, 3315.19, 3316.06, 3316.16, 3317.018,	27
3317.024, 3321.01, and 3321.05 be amended and section 3301.96 of	28
the Revised Code be enacted to read as follows:	29

Sec. 3301.07.  The state board of education shall exercise	30
under the acts of the general assembly general supervision of the	31
system of public education in the state. In addition to the powers	32
otherwise imposed on the state board under the provisions of law,	33
the board shall have the powers described in this section.	34

(A) The state board shall exercise policy forming, planning,	35
and evaluative functions for the public schools of the state	36
except as otherwise provided by law.	37

(B)(1) The state board shall exercise leadership in the	38
improvement of public education in this state, and administer the	39
educational policies of this state relating to public schools, and	40
relating to instruction and instructional material, building and	41
equipment, transportation of pupils, administrative	42
responsibilities of school officials and personnel, and finance	43
and organization of school districts, educational service centers,	44
and territory. Consultative and advisory services in such matters	45
shall be provided by the board to school districts and educational	46
service centers of this state.	47

(2) The state board also shall develop a standard of	48
financial reporting which shall be used by each school district	49
board of education and educational service center governing board	50
to make its financial information and annual budgets for each	51
school building under its control available to the public in a	52
format understandable by the average citizen. The format shall	53
show, among other things, at the district and educational service	54
center level or at the school building level, as determined	55
appropriate by the department of education, revenue by source;	56
expenditures for salaries, wages, and benefits of employees,	57
showing such amounts separately for classroom teachers, other	58
employees required to hold licenses issued pursuant to sections	59
3319.22 to 3319.31 of the Revised Code, and all other employees;	60
expenditures other than for personnel, by category, including	61
utilities, textbooks and other educational materials, equipment,	62
permanent improvements, pupil transportation, extracurricular	63
athletics, and other extracurricular activities; and per pupil	64
expenditures.	65

(C) The state board shall administer and supervise the	66
allocation and distribution of all state and federal funds for	67
public school education under the provisions of law, and may	68
prescribe such systems of accounting as are necessary and proper	69
to this function. It may require county auditors and treasurers,	70
boards of education, educational service center governing boards,	71
treasurers of such boards, teachers, and other school officers and	72
employees, or other public officers or employees, to file with it	73
such reports as it may prescribe relating to such funds, or to the	74
management and condition of such funds.	75

(D)(1) Wherever in Titles IX, XXIII, XXIX, XXXIII, XXXVII,	76
XLVII, and LI of the Revised Code a reference is made to standards	77
prescribed under this section or division (D) of this section,	78
that reference shall be construed to refer to the standards	79
prescribed under division (D)(2) of this section, unless the	80
context specifically indicates a different meaning or intent.	81

(2) The state board shall formulate and prescribe minimum	82
standards to be applied to all elementary and secondary schools in	83
this state for the purpose of requiring a general education of	84
high quality. Such standards shall provide adequately for: the	85
licensing of teachers, administrators, and other professional	86
personnel and their assignment according to training and	87
qualifications; efficient and effective instructional materials	88
and equipment, including library facilities; the proper	89
organization, administration, and supervision of each school,	90
including regulations for preparing all necessary records and	91
reports and the preparation of a statement of policies and	92
objectives for each school; buildings, grounds, health and	93
sanitary facilities and services; admission of pupils, and such	94
requirements for their promotion from grade to grade as will	95
assure that they are capable and prepared for the level of study	96
to which they are certified; requirements for graduation; and such	97
other factors as the board finds necessary.	98

In the formulation and administration of such standards for	99
nonpublic schools the board shall also consider the particular	100
needs, methods and objectives of those schools, provided they do	101
not conflict with the provision of a general education of a high	102
quality and provided that regular procedures shall be followed for	103
promotion from grade to grade of pupils who have met the	104
educational requirements prescribed.	105

In the formulation and administration of such standards as	106
they relate to instructional materials and equipment in public	107
schools, including library materials, the board shall require that	108
the material and equipment be aligned with and promote skills	109
expected under the statewide academic standards adopted under	110
section 3301.079 of the Revised Code.	111

(3) In addition to the minimum standards required by division	112
(D)(2) of this section, the state board shall formulate and	113
prescribe the following additional minimum operating standards for	114
school districts:	115

(a) Standards for the effective and efficient organization,	116
administration, and supervision of each school district so that it	117
becomes a thinking and learning organization according to	118
principles of systems design and collaborative professional	119
learning communities research as defined by the superintendent of	120
public instruction, including a focus on the personalized and	121
individualized needs of each student; a shared responsibility	122
among school boards, administrators, faculty, and staff to develop	123
a common vision, mission, and set of guiding principles; a shared	124
responsibility among school boards, administrators, faculty, and	125
staff to engage in a process of collective inquiry, action	126
orientation, and experimentation to ensure the academic success of	127
all students; commitment to teaching and learning strategies that	128
utilize technological tools and emphasize inter-disciplinary,	129
real-world, project-based, and technology-oriented learning	130
experiences to meet the individual needs of every student;	131
commitment to high expectations for every student and commitment	132
to closing the achievement gap so that all students achieve core	133
knowledge and skills in accordance with the statewide academic	134
standards adopted under section 3301.079 of the Revised Code;	135
commitment to the use of assessments to diagnose the needs of each	136
student; effective connections and relationships with families and	137
others that support student success; and commitment to the use of	138
positive behavior intervention supports throughout a district to	139
ensure a safe and secure learning environment for all students;	140

(b) Standards for the establishment of business advisory	141
councils and family and civic engagement teams by school districts	142
under sectionssection 3313.82, 3313.821, and 3313.822 of the	143
Revised Code;	144

(c) Standards incorporating the classifications for the	145
components of the adequacy amount under Chapter 3306. of the	146
Revised Code into core academic strategy components and academic	147
improvement components, as specified in rules adopted under	148
section 3306.25 of the Revised Code;	149

(d) Standards for school district organizational units, as	150
defined in sections 3306.02 and 3306.04 of the Revised Code, that	151
require:	152

(i) The effective and efficient organization, administration,	153
and supervision of each school district organizational unit so	154
that it becomes a thinking and learning organization according to	155
principles of systems design and collaborative professional	156
learning communities research as defined by the state	157
superintendent, including a focus on the personalized and	158
individualized needs of each student; a shared responsibility	159
among organizational unit administrators, faculty, and staff to	160
develop a common vision, mission, and set of guiding principles; a	161
shared responsibility among organizational unit administrators,	162
faculty, and staff to engage in a process of collective inquiry,	163
action orientation, and experimentation to ensure the academic	164
success of all students; commitment to job embedded professional	165
development and professional mentoring and coaching; established	166
periods of time for teachers to pursue planning time for the	167
development of lesson plans, professional development, and shared	168
learning; commitment to effective management strategies that allow	169
administrators reasonable access to classrooms for observation and	170
professional development experiences; commitment to teaching and	171
learning strategies that utilize technological tools and emphasize	172
inter-disciplinary, real-world, project-based, and	173
technology-oriented learning experiences to meet the individual	174
needs of every student; commitment to high expectations for every	175
student and commitment to closing the achievement gap so that all	176
students achieve core knowledge and skills in accordance with the	177
statewide academic standards adopted under section 3301.079 of the	178
Revised Code; commitment to the use of assessments to diagnose the	179
needs of each student; effective connections and relationships	180
with families and others that support student success; commitment	181
to the use of positive behavior intervention supports throughout	182
the organizational unit to ensure a safe and secure learning	183
environment for all students;	184

(ii) A school organizational unit leadership team to	185
coordinate positive behavior intervention supports, family and	186
civic engagement services, learning environments, thinking and	187
learning systems, collaborative planning, planning time, student	188
academic interventions, student extended learning opportunities,	189
and other activities identified by the team and approved by the	190
district board of education. The team shall include the building	191
principal, representatives from each collective bargaining unit,	192
the building lead teacher, parents, business representatives, and	193
others that support student success.	194

(E) The state board may require as part of the health	195
curriculum information developed under section 2108.34 of the	196
Revised Code promoting the donation of anatomical gifts pursuant	197
to Chapter 2108. of the Revised Code and may provide the	198
information to high schools, educational service centers, and	199
joint vocational school district boards of education;	200

(F) The state board shall prepare and submit annually to the	201
governor and the general assembly a report on the status, needs,	202
and major problems of the public schools of the state, with	203
recommendations for necessary legislative action and a ten-year	204
projection of the state's public and nonpublic school enrollment,	205
by year and by grade level.	206

(G) The state board shall prepare and submit to the director	207
of budget and management the biennial budgetary requests of the	208
state board of education, for its agencies and for the public	209
schools of the state.	210

(H) The state board shall cooperate with federal, state, and	211
local agencies concerned with the health and welfare of children	212
and youth of the state.	213

(I) The state board shall require such reports from school	214
districts and educational service centers, school officers, and	215
employees as are necessary and desirable. The superintendents and	216
treasurers of school districts and educational service centers	217
shall certify as to the accuracy of all reports required by law or	218
state board or state department of education rules to be submitted	219
by the district or educational service center and which contain	220
information necessary for calculation of state funding. Any	221
superintendent who knowingly falsifies such report shall be	222
subject to license revocation pursuant to section 3319.31 of the	223
Revised Code.	224

(J) In accordance with Chapter 119. of the Revised Code, the	225
state board shall adopt procedures, standards, and guidelines for	226
the education of children with disabilities pursuant to Chapter	227
3323. of the Revised Code, including procedures, standards, and	228
guidelines governing programs and services operated by county	229
boards of developmental disabilities pursuant to section 3323.09	230
of the Revised Code.	231

(K) For the purpose of encouraging the development of special	232
programs of education for academically gifted children, the state	233
board shall employ competent persons to analyze and publish data,	234
promote research, advise and counsel with boards of education, and	235
encourage the training of teachers in the special instruction of	236
gifted children. The board may provide financial assistance out of	237
any funds appropriated for this purpose to boards of education and	238
educational service center governing boards for developing and	239
conducting programs of education for academically gifted children.	240

(L) The state board shall require that all public schools	241
emphasize and encourage, within existing units of study, the	242
teaching of energy and resource conservation as recommended to	243
each district board of education by leading business persons	244
involved in energy production and conservation, beginning in the	245
primary grades.	246

(M) The state board shall formulate and prescribe minimum	247
standards requiring the use of phonics as a technique in the	248
teaching of reading in grades kindergarten through three. In	249
addition, the state board shall provide in-service training	250
programs for teachers on the use of phonics as a technique in the	251
teaching of reading in grades kindergarten through three.	252

(N) The state board may adopt rules necessary for carrying	253
out any function imposed on it by law, and may provide rules as	254
are necessary for its government and the government of its	255
employees, and may delegate to the superintendent of public	256
instruction the management and administration of any function	257
imposed on it by law. It may provide for the appointment of board	258
members to serve on temporary committees established by the board	259
for such purposes as are necessary. Permanent or standing	260
committees shall not be created.	261

Compliance(O) Upon application from the board of education	262
of a school district, the superintendent of public instruction may	263
issue a waiver exempting the district from compliance with the	264
standards adopted under divisions (B)(2) and (D) of this section,	265
as they relate to the operation of a school operated by a school	266
the district, may be waived by the state superintendent pursuant	267
to section 3306.40 of the Revised Code. The state board shall	268
adopt standards for the approval or disapproval of waivers under	269
this division. The state superintendent shall consider every	270
application for a waiver, and shall determine whether to grant or	271
deny a waiver in accordance with the state board's standards. For	272
each waiver granted, the state superintendent shall specify the	273
period of time during which the waiver is in effect, which shall	274
not exceed five years. A district board may apply to renew a	275
waiver.	276

Sec. 3301.16.  Pursuant to standards prescribed by the state	277
board of education as provided in division (D) of section 3301.07	278
of the Revised Code, the state board shall classify and charter	279
school districts and individual schools within each district	280
except that no charter shall be granted to a nonpublic school	281
unless the school complies with section 3313.612 of the Revised	282
Code.	283

In the course of considering the charter of a new school	284
district created under section 3311.26 or 3311.38 of the Revised	285
Code, the state board shall require the party proposing creation	286
of the district to submit to the board a map, certified by the	287
county auditor of the county in which the proposed new district is	288
located, showing the boundaries of the proposed new district. In	289
the case of a proposed new district located in more than one	290
county, the map shall be certified by the county auditor of each	291
county in which the proposed district is located.	292

The state board shall revoke the charter of any school	293
district or school which fails to meet the standards for	294
elementary and high schools as prescribed by the board. The state	295
board shall also revoke the charter of any nonpublic school that	296
does not comply with section 3313.612 of the Revised Code. The	297
state board may revoke the charter of any school district that	298
fails to meet the operating standards established under division	299
(D)(3) of section 3301.07 of the Revised Code.	300

In the issuance and revocation of school district or school	301
charters, the state board shall be governed by the provisions of	302
Chapter 119. of the Revised Code.	303

No school district, or individual school operated by a school	304
district, shall operate without a charter issued by the state	305
board under this section.	306

In case a school district charter is revoked pursuant to this	307
section, the state board may dissolve the school district and	308
transfer its territory to one or more adjacent districts. An	309
equitable division of the funds, property, and indebtedness of the	310
school district shall be made by the state board among the	311
receiving districts. The board of education of a receiving	312
district shall accept such territory pursuant to the order of the	313
state board. Prior to dissolving the school district, the state	314
board shall notify the appropriate educational service center	315
governing board and all adjacent school district boards of	316
education of its intention to do so. Boards so notified may make	317
recommendations to the state board regarding the proposed	318
dissolution and subsequent transfer of territory. Except as	319
provided in section 3301.161 of the Revised Code, the transfer	320
ordered by the state board shall become effective on the date	321
specified by the state board, but the date shall be at least	322
thirty days following the date of issuance of the order.	323

A high school is one of higher grade than an elementary	324
school, in which instruction and training are given in accordance	325
with sections 3301.07 and 3313.60 of the Revised Code and which	326
also offers other subjects of study more advanced than those	327
taught in the elementary schools and such other subjects as may be	328
approved by the state board of education.	329

An elementary school is one in which instruction and training	330
are given in accordance with sections 3301.07 and 3313.60 of the	331
Revised Code and which offers such other subjects as may be	332
approved by the state board of education. In districts wherein a	333
junior high school is maintained, the elementary schools in that	334
district may be considered to include only the work of the first	335
six school years inclusive, plus the kindergarten year.	336

A high school or an elementary school may consist of less	337
than one or more than one organizational unit, as defined in	338
sections 3306.02 and 3306.04 of the Revised Code.	339

Sec. 3301.96.  Any school district that is required by the	340
agreement for a grant awarded under the federal Race to the Top	341
program, Division (A), Title XIV, Sections 14005 and 14006 of the	342
"American Recovery and Reinvestment Act of 2009," Pub. L. No.	343
111-5, 123 Stat. 115, to employ a linkage coordinator and engage	344
in other activities for closing the achievement gap and increasing	345
the graduation rate or to have a family and civic engagement team	346
shall continue to comply with those provisions for the life of the	347
grant award, in the manner provided for by former sections	348
3306.31, 3313.821, and 3313.822 of the Revised Code, which	349
sections were repealed by Sub. H.B. 30 of the 129th general	350
assembly.	351

Sec. 3302.05.  The state board of education shall adopt rules	352
freeing school districts declared to be excellent under division	353
(B)(1) or effective under division (B)(2) of section 3302.03 of	354
the Revised Code from specified state mandates. Any mandates	355
included in the rules shall be only those statutes or rules	356
pertaining to state education requirements. The rules shall not	357
exempt districts from any standard or requirement of Chapter 3306.	358
section 3306.09 of the Revised Code or from any operating standard	359
adopted under division (D)(3) of section 3301.07 of the Revised	360
Code.	361

Sec. 3302.07.  (A) The board of education of any school	362
district, the governing board of any educational service center,	363
or the administrative authority of any chartered nonpublic school	364
may submit to the state board of education an application	365
proposing an innovative education pilot program the implementation	366
of which requires exemptions from specific statutory provisions or	367
rules. If a district or service center board employs teachers	368
under a collective bargaining agreement adopted pursuant to	369
Chapter 4117. of the Revised Code, any application submitted under	370
this division shall include the written consent of the teachers'	371
employee representative designated under division (B) of section	372
4117.04 of the Revised Code. The exemptions requested in the	373
application shall be limited to any requirement of Title XXXIII of	374
the Revised Code or of any rule of the state board adopted	375
pursuant to that title except that the application may not propose	376
an exemption from any requirement of or rule adopted pursuant to	377
section 3306.09, Chapter 3307. or 3309., sections 3319.07 to	378
3319.21, or Chapter 3323. of the Revised Code. Furthermore, an	379
exemption from any standard or requirement of Chapter 3306. or	380
from any operating standard adopted under division (D)(3) of	381
section 3301.07 of the Revised Code shall be granted only pursuant	382
to a waiver granted by the superintendent of public instruction	383
under division (O) of that section 3306.40 of the Revised Code.	384

(B) The state board of education shall accept any application	385
submitted in accordance with division (A) of this section. The	386
superintendent of public instruction shall approve or disapprove	387
the application in accordance with standards for approval, which	388
shall be adopted by the state board.	389

(C) The superintendent of public instruction shall exempt	390
each district or service center board or chartered nonpublic	391
school administrative authority with an application approved under	392
division (B) of this section for a specified period from the	393
statutory provisions or rules specified in the approved	394
application. The period of exemption shall not exceed the period	395
during which the pilot program proposed in the application is	396
being implemented and a reasonable period to allow for evaluation	397
of the effectiveness of the program.	398

Sec. 3306.01.  This chapter shall be administered by the	399
state board of education. The superintendent of public instruction	400
shall calculate the amounts payable to each school district and	401
shall certify the amounts payable to each eligible district to the	402
treasurer of the district as determined under this chapter. As	403
soon as possible after such amounts are calculated, the	404
superintendent shall certify to the treasurer of each school	405
district the district's adjusted charge-off increase, as defined	406
in section 5705.211 of the Revised Code. No moneys shall be	407
distributed pursuant to this chapter without the approval of the	408
controlling board.	409

The state board of education shall, in accordance with	410
appropriations made by the general assembly, meet the financial	411
obligations of this chapter.	412

Annually, the department of education shall calculate and	413
report to each school district the district's adequacy amount	414
utilizing the calculations in sections 3306.03 and 3306.13 of the	415
Revised Code. The department shall calculate and report separately	416
for each school district the district's total state and local	417
funds for its students with disabilities, utilizing the	418
calculations in sections 3306.05, 3306.11, and 3306.13 of the	419
Revised Code. The department shall calculate and report separately	420
for each school district the amount of funding calculated for each	421
factor of the district's adequacy amount.	422

Not later than the thirty-first day of August of each fiscal	423
year, the department of education shall provide to each school	424
district a preliminary estimate of the amount of funding that the	425
department calculates the district will receive under section	426
3306.13 of the Revised Code. Not later than the first day of	427
December of each fiscal year, the department shall update that	428
preliminary estimate.	429

Moneys distributed pursuant to this chapter shall be	430
calculated and paid on a fiscal year basis, beginning with the	431
first day of July and extending through the thirtieth day of June.	432
Unless otherwise provided, the moneys appropriated for each fiscal	433
year shall be distributed at least monthly to each school	434
district. The state board shall submit a yearly distribution plan	435
to the controlling board at its first meeting in July. The state	436
board shall submit any proposed midyear revision of the plan to	437
the controlling board in January. Any year-end revision of the	438
plan shall be submitted to the controlling board in June. If	439
moneys appropriated for each fiscal year are distributed other	440
than monthly, such distribution shall be on the same basis for	441
each school district.	442

The total amounts paid each month shall constitute, as nearly	443
as possible, one-twelfth of the total amount payable for the	444
entire year.	445

Payments shall be calculated to reflect the reporting of	446
formula ADM. Annualized periodic payments for each school district	447
shall be based on the district's final student counts verified by	448
the superintendent of public instruction based on reports under	449
section 3317.03 of the Revised Code, as adjusted, if so ordered,	450
under division (K) of that section.	451

(A) Except as otherwise provided, payments under this chapter	452
shall be made only to those school districts that comply with	453
divisions (A)(1) to (3) of this section.	454

(1) Each city, exempted village, and local school district	455
shall levy for current operating expenses at least twenty mills.	456
Levies for joint vocational or cooperative education school	457
districts or county school financing districts, limited to or to	458
the extent apportioned to current expenses, shall be included in	459
this qualification requirement. School district income tax levies	460
under Chapter 5748. of the Revised Code, limited to or to the	461
extent apportioned to current operating expenses, shall be	462
included in this qualification requirement to the extent	463
determined by the tax commissioner under division (D) of section	464
3317.021 of the Revised Code.	465

(2) Each city, exempted village, local, and joint vocational	466
school district, during the school year next preceding the fiscal	467
year for which payments are calculated under this chapter, shall	468
meet the requirement of section 3313.48 or 3313.481 of the Revised	469
Code, with regard to the minimum number of days or hours school	470
must be open for instruction with pupils in attendance, for	471
individualized parent-teacher conference and reporting periods,	472
and for professional meetings of teachers. The superintendent of	473
public instruction shall waive a number of days in accordance with	474
section 3317.01 of the Revised Code on which it had been necessary	475
for a school to be closed because of disease epidemic, hazardous	476
weather conditions, inoperability of school buses or other	477
equipment necessary to the school's operation, damage to a school	478
building, or other temporary circumstances due to utility failure	479
rendering the school building unfit for school use.	480

A school district shall not be considered to have failed to	481
comply with this division or section 3313.481 of the Revised Code	482
because schools were open for instruction but either twelfth grade	483
students were excused from attendance for up to three days or only	484
a portion of the kindergarten students were in attendance for up	485
to three days in order to allow for the gradual orientation to	486
school of such students.	487

The superintendent of public instruction shall waive the	488
requirements of this section with reference to the minimum number	489
of days or hours a school must be open for instruction with pupils	490
in attendance for the school year succeeding the school year in	491
which a board of education initiates a plan of operation pursuant	492
to section 3313.481 of the Revised Code. The minimum requirements	493
of this section shall again be applicable to the district	494
beginning with the school year commencing the second July	495
succeeding the initiation of the plan, and for each school year	496
thereafter.	497

A school district shall not be considered to have failed to	498
comply with this division or section 3313.48 or 3313.481 of the	499
Revised Code because schools were open for instruction but the	500
length of the regularly scheduled learning day, for any number of	501
days during the school year, was reduced by not more than two	502
hours due to hazardous weather conditions.	503

(3) Each city, exempted village, local, and joint vocational	504
school district shall have on file, and shall pay in accordance	505
with, a teachers' salary schedule which complies with section	506
3317.13 of the Revised Code.	507

(B) A school district board of education or educational	508
service center governing board that has not conformed with other	509
law, and the rules pursuant thereto, shall not participate in the	510
distribution of funds authorized by this chapter, except for good	511
and sufficient reason established to the satisfaction of the state	512
board of education and the state controlling board.	513

(C) All funds allocated to school districts under this	514
chapter, except those specifically allocated for other purposes,	515
shall be used only to pay current operating expenses or for either	516
of the following purposes:	517

(1) The modification or purchase of classroom space to	518
provide all-day kindergarten as required by section 3321.05 of the	519
Revised Code, provided the district certifies its shortage of	520
space for providing all-day kindergarten to the department of	521
education, in a manner specified by the department;	522

(2) The modification or purchase of classroom space to reduce	523
class sizes in grades kindergarten through three to attain the	524
goal of fifteen students per core teacher, provided the district	525
certifies its need for additional classroom space to the	526
department, in a manner specified by the department.	527

(D) On or before the last day of each month, the department	528
of education shall certify to the director of budget and	529
management for payment, for each county:	530

(1)(a) That portion of the allocation of money under section	531
3306.13 of the Revised Code that is required to be paid in that	532
month to each school district located wholly within the county	533
subsequent to the deductions described in division (D)(1)(b) of	534
this section;	535

(b) The amounts deducted from such allocation under sections	536
3307.31 and 3309.51 of the Revised Code for payment directly to	537
the school employees and state teachers retirement systems under	538
such sections.	539

(2) If the district is located in more than one county, an	540
apportionment of the amounts that would otherwise be certified	541
under division (D)(1) of this section. The amounts apportioned to	542
the county shall equal the amounts certified under division (D)(1)	543
of this section times the percentage of the district's resident	544
pupils who reside both in the district and in the county, based on	545
the average daily membership reported under division (A) of	546
section 3317.03 of the Revised Code in October of the prior fiscal	547
year.	548

Sec. 3306.02.  As used in this chapter:

549

(A) "Adequacy amount" means the amount described in section	550
3306.03 of the Revised Code.	551

(B) "Building manager" means a person who supervises the	552
administrative (non-curricular, non-instructional) functions of	553
school operation so that a school principal can focus on	554
supporting instruction, providing instructional leadership, and	555
engaging teachers as part of the instructional leadership team. A	556
building manager may be, but is not required to be, a licensed	557
educator under section 3319.22 of the Revised Code.	558

(C) "Career-technical education teacher" means an education	559
professional who holds a valid license to provide specialized	560
instruction in career and technical courses.	561

(D)(1) "Category one special education ADM" means a school	562
district's formula ADM of children whose primary or only	563
identified disability is a speech and language disability, as this	564
term is defined pursuant to Chapter 3323. of the Revised Code.	565
Beginning in fiscal year 2010, for any school district for which	566
formula ADM means the number verified in the previous fiscal year,	567
the category one special education ADM also shall be as verified	568
from the previous year.	569

(2) "Category two special education ADM" means a school	570
district's formula ADM of children identified as specific learning	571
disabled or developmentally disabled, as these terms are defined	572
pursuant to Chapter 3323. of the Revised Code, or as having an	573
other health impairment-minor, as defined in this section.	574
Beginning in fiscal year 2010, for any school district for which	575
formula ADM means the number verified in the previous fiscal year,	576
the category two special education ADM also shall be as verified	577
from the previous year.	578

(3) "Category three special education ADM" means a school	579
district's formula ADM of children identified as hearing disabled	580
or severe behavior disabled, as these terms are defined pursuant	581
to Chapter 3323. of the Revised Code. Beginning in fiscal year	582
2010, for any school district for which formula ADM means the	583
number verified in the previous fiscal year, the category three	584
special education ADM also shall be as verified from the previous	585
year.	586

(4) "Category four special education ADM" means a school	587
district's formula ADM of children identified as vision impaired,	588
as this term is defined pursuant to Chapter 3323. of the Revised	589
Code, or as having an other health impairment-major, as defined in	590
this section. Beginning in fiscal year 2010, for any school	591
district for which formula ADM means the number verified in the	592
previous fiscal year, the category four special education ADM also	593
shall be as verified from the previous year.	594

(5) "Category five special education ADM" means a school	595
district's formula ADM of children identified as orthopedically	596
disabled or as having multiple disabilities, as these terms are	597
defined pursuant to Chapter 3323. of the Revised Code. Beginning	598
in fiscal year 2010, for any school district for which formula ADM	599
means the number verified in the previous fiscal year, the	600
category five special education ADM also shall be as verified from	601
the previous year.	602

(6) "Category six special education ADM" means a school	603
district's formula ADM of children identified as autistic, having	604
traumatic brain injuries, or as both visually and hearing	605
impaired, as these terms are defined pursuant to Chapter 3323. of	606
the Revised Code. Beginning in fiscal year 2010, for any school	607
district for which formula ADM means the number verified in the	608
previous fiscal year, the category six special education ADM also	609
shall be as verified from the previous year.	610

(E) "Class one effective operating tax rate" of a school	611
district means the quotient obtained by dividing the district's	612
class one taxes charged and payable for current expenses,	613
excluding taxes levied under sections 5705.194 to 5705.197,	614
5705.199, 5705.213, and 5705.219 of the Revised Code, by the	615
district's class one taxable value.	616

(F) "Core teacher" means an education professional who	617
provides instruction in English-language arts, mathematics,	618
science, social studies, or foreign languages.	619

(G) "Counselor" means a person with a valid educator license	620
issued pursuant to section 3319.22 of the Revised Code who	621
provides pre-college and career counseling, general academic	622
counseling, course planning, and other counseling services that	623
are not related to a student's individualized education plan, as	624
defined in section 3323.01 of the Revised Code.	625

(H)(1) "Formula ADM" means, for a city, local, or exempted	626
village school district, the average daily membership described in	627
division (A) of section 3317.03 of the Revised Code, as verified	628
by the superintendent of public instruction and adjusted if so	629
ordered under division (K) of that section, further adjusted by	630
the department of education, as follows:	631

(a) Count only twenty per cent of the number of joint	632
vocational school district students counted under division (A)(3)	633
of section 3317.03 of the Revised Code;	634

(b) Add twenty per cent of the number of students who are	635
entitled to attend school in the district under section 3313.64 or	636
3313.65 of the Revised Code and are enrolled in another school	637
district under a career-technical educational compact.	638

(2) In making calculations under this chapter that utilize	639
formula ADM, the department shall use the formula ADM derived from	640
the final, verified, and adjusted average daily membership	641
described under division (A) of section 3317.03 of the Revised	642
Code for the prior fiscal year, unless such average daily	643
membership for the current fiscal year exceeds that number by two	644
per cent or more. In that case, the department shall derive the	645
formula ADM from such average daily membership for the current	646
fiscal year.	647

(3) For fiscal year 2010, the department shall calculate	648
formula ADM on the basis of the final, verified, and adjusted	649
average daily membership, described in division (A) of the version	650
of section 3317.03 of the Revised Code in effect on and after the	651
effective date of this amendmentJuly 17, 2009, for October 2008	652
unless such average daily membership for October 2009 exceeds that	653
number by two per cent or more. In that case, the department shall	654
derive the formula ADM from such average daily membership for	655
October 2009.	656

(I) "Gifted coordinator" means a person who holds a valid	657
educator license issued under section 3319.22 of the Revised Code,	658
meets the qualifications for a gifted coordinator specified in the	659
operating standards for identifying and serving gifted students	660
prescribed in rules adopted by the state board of education, and	661
provides coordination services for gifted students in accordance	662
with those standards.	663

(J) "Gifted intervention specialist" means a person who holds	664
a valid gifted intervention specialist license or endorsement	665
issued under section 3319.22 of the Revised Code and serves gifted	666
students in accordance with the operating standards for	667
identifying and serving gifted students prescribed in rules	668
adopted by the state board of education.	669

(K) "Internet- or computer-based community school" has the	670
same meaning as in section 3314.02 of the Revised Code.	671

(L) "Lead teacher" means a teacher who provides mentoring and	672
coaching for new teachers. A lead teacher also assists in	673
coordinating professional development activities, in the	674
development of professional learning communities, and in common	675
planning time, and assists teachers in developing project-based,	676
real-world learning activities for their students. The lead	677
teacher position shall be a rotating position in which an	678
individual shall serve no more than three years. After lead	679
teacher licenses become available under section 3319.22 of the	680
Revised Code, only teachers who hold that license shall be	681
appointed as lead teachers. Until that time, each school district	682
shall designate qualifications for the lead teacher position that	683
are comparable to the licensing requirements, and shall give	684
preference for appointment to the position to teachers who are	685
certified by the national board for professional teaching	686
standards or who meet the qualifications for a "master teacher"	687
established by the educator standards board.	688

(M) "Limited English proficiency teacher" means a person who	689
provides instruction in English as a second language.	690

(N) "Medically fragile child" means a child to whom all of	691
the following apply:	692

(1) The child requires the services of a doctor of medicine	693
or osteopathic medicine at least once a week due to the	694
instability of the child's medical condition.	695

(2) The child requires the services of a registered nurse on	696
a daily basis.	697

(3) The child is at risk of institutionalization in a	698
hospital, skilled nursing facility, or intermediate care facility	699
for the mentally retarded.	700

(O) "Ohio educational challenge factor" means an index to	701
adjust the funding amount for each school district to account for	702
student and community socioeconomic factors affecting teacher	703
recruitment and retention, professional development, and other	704
factors related to quality instruction. The Ohio educational	705
challenge factor for each school district includes the district's	706
college attainment rate of population, wealth per pupil, and	707
concentration of poverty, and is listed in section 3306.051 of the	708
Revised Code.	709

(P) "Organizational unit" means, for the purpose of	710
calculating a school district's adequacy amount under this	711
chapter, a unit used to index a school district's formula ADM in	712
certain grade levels. Calculating the number of organizational	713
units in a school district functions to allocate the state's	714
resources in a manner that achieves a thorough, efficient, and	715
adequate educational system that provides the appropriate services	716
to students enrolled in that district. In recognition of the fact	717
that students have different educational needs at each	718
developmental stage, organizational units group the grade levels	719
into elementary school units, middle school units, and high school	720
units. Except as provided in division (C) of section 3306.04 of	721
the Revised Code, a school district's "organizational units" is	722
the sum of its elementary school units, middle school units, and	723
high school units.	724

(Q) A child may be identified as having an "other health	725
impairment-major" if the child's condition meets the definition of	726
"other health impaired" established in rules adopted by the state	727
board of education prior to July 1, 2001, and if either of the	728
following applyapplies:	729

(1) The child is identified as having a medical condition	730
that is among those listed by the superintendent of public	731
instruction as conditions where a substantial majority of cases	732
fall within the definition of "medically fragile child."	733

(2) The child is determined by the superintendent of public	734
instruction to be a medically fragile child. A school district may	735
petition the superintendent of public instruction for a	736
determination that a child is a medically fragile child.	737

(R) A child may be identified as having an "other health	738
impairment-minor" if the child's condition meets the definition of	739
"other health impaired" established in rules adopted by the state	740
board of education prior to July 1, 2001, but the child's	741
condition does not meet either of the conditions specified in	742
division (Q)(1) or (2) of this section.	743

(S) "Potential value" of a school district means:

744

(1) For a district with a class one effective operating rate	745
that is less than twenty and one-tenth effective mills, the sum of	746
its total taxable value plus its tax exempt value;	747

(2) For a district with a class one effective operating rate	748
that is greater than or equal to twenty and one-tenth effective	749
mills, the sum of its recognized valuation plus its tax exempt	750
value.	751

(T) "Principal" means a person who provides management	752
oversight of building operations, academic leadership for the	753
teaching professionals, and other administrative duties.	754

(U) "Property exemption value" means the amount certified for	755
a school district under divisions (A)(6) and (7) of section	756
3317.021 of the Revised Code.	757

(V) "Recognized valuation" means the amount calculated for a	758
school district pursuant to section 3317.015 of the Revised Code.	759

(W) "School nurse wellness coordinator" means a person who	760
has fulfilled the requirements for the issuance of a school nurse	761
wellness coordinator license under section 3319.221 of the Revised	762
Code.	763

(X) "Small school district" means a city, local, or exempted	764
village school district that has a formula ADM of less than four	765
hundred eighteen students in grades kindergarten through twelve.	766

(Y) "Special education" has the same meaning as in section	767
3323.01 of the Revised Code.	768

(Z) "Special education teacher" means a teacher who holds the	769
necessary license issued pursuant to section 3319.22 of the	770
Revised Code to meet the unique needs of children with	771
disabilities.	772

(AA) "Special education teacher's aide" means a person	773
providing support for special education teachers and other	774
associated duties.	775

(BB) "Specialist teacher" means a person holding a valid	776
educator's license, issued pursuant to section 3319.22 of the	777
Revised Code, who provides instruction in dance, drama and	778
theater, music, visual art, or physical education.	779

(CC) "State share percentage" means the quotient of a school	780
district's state share of the adequacy amount determined under	781
section 3306.13 of the Revised Code divided by the total adequacy	782
amount for the district as described in section 3306.03 of the	783
Revised Code. If the quotient is a negative number, the district's	784
state share percentage is zero.	785

(DD) "Family and community liaisons" means individuals who	786
provide assistance to students and their families, individuals who	787
are linkage coordinators as described in section 3306.31 of the	788
Revised Code, and may include individuals who hold valid licenses	789
as family liaisons, social workers, and student advocates.	790

(EE) "Supplemental teacher" means a person holding a valid	791
educator license issued pursuant to section 3319.22 of the Revised	792
Code, or qualified to secure such a license and approved by the	793
school district to provide remedial services, intensive	794
subject-based instruction, homework help, or other forms of	795
supplemental instruction.	796

(FF) "Targeted poverty indicator" means the percentage of a	797
school district's students who are economically disadvantaged, as	798
determined for purposes of the report card issued under section	799
3302.03 of the Revised Code.	800

(GG) "Tax exempt value" of a school district means the amount	801
certified for a school district under division (A)(4) of section	802
3317.021 of the Revised Code.	803

(HH) "Total taxable value" means the sum of the amounts	804
certified for a school district under divisions (A)(1) and (2) of	805
section 3317.021 of the Revised Code.	806

Sec. 3306.05.  (A) The instructional services support	807
component of the adequacy amount for each city, local, and	808
exempted village school district is the sum of the following:	809

(1) The core teacher factor;

810

(2) The specialist teacher factor;

811

(3) The lead teacher factor;

812

(4) The special education teacher factor;

813

(5) The special education teacher's aide factor;

814

(6) The limited English proficiency teacher factor;

815

(7) The supplemental teacher factor.

816

(B) Each factor listed in division (A) of this section shall	817
be calculated by multiplying the Ohio educational challenge	818
factor, specified for the district in section 3306.051 of the	819
Revised Code, times the statewide base teacher salary of $56,902	820
in fiscal year 2010 and $57,812 in fiscal year 2011, times the	821
number of positions funded, as follows:	822

(1) The number of core teacher positions funded shall be	823
calculated by dividing the district's formula ADM in grades four	824
to twelve by twenty-five, and then adding that number to the	825
quotient of the district's formula ADM in grades kindergarten to	826
three divided by the following:	827

(a) In fiscal years 2010 and 2011, nineteen;

828

(b) In fiscal years 2012 and 2013, seventeen;

829

(c) In fiscal year 2014 and in each fiscal year thereafter,	830
fifteen.	831

(2) The number of specialist teacher positions funded shall	832
be calculated by multiplying the number of core teacher positions	833
determined under division (B)(1) of this section for grades	834
kindergarten to eight by one-fifth, and by multiplying the number	835
of core teacher positions determined for grades nine to twelve by	836
one-fourth.	837

(3) The number of lead teacher positions funded shall equal	838
the number of the district's organizational units.	839

(4) The number of special education teacher positions and	840
special education teacher's aide positions funded shall be	841
calculated as provided in section 3306.11 of the Revised Code.	842

(5) The number of limited English proficiency teacher	843
positions funded shall be calculated by multiplying the district's	844
formula ADM times the district's percentage of limited English	845
proficient students, as defined in 20 U.S.C. 7801, and then	846
dividing that product by one hundred;	847

(6) The number of supplemental teacher positions funded shall	848
be calculated by multiplying the district's formula ADM times its	849
targeted poverty indicator, and then dividing that product by one	850
hundred.	851

(C) Each school district shall account separately for	852
expenditures of the amounts received for instructional services	853
support under this section and report that information to the	854
department of education.	855

Sec. 3306.06.  (A) The additional services support component	856
of the adequacy amount for each city, local, and exempted village	857
school district is the sum of the following:	858

(1) The family and community liaison factor;

859

(2) The counselor factor;

860

(3) The summer remediation factor;

861

(4) The school nurse wellness coordinator factor;

862

(5) The district health professional factor.

863

(B)(1) The family and community liaison factor shall be	864
calculated by multiplying the school district's formula ADM times	865
its targeted poverty indicator and dividing the product by	866
seventy-five, and then multiplying the quotient by the product of	867
the applicable Ohio educational challenge factor times $38,633, in	868
fiscal year 2010, and times $39,381, in fiscal year 2011.	869

(2) The counselor factor shall be calculated by dividing the	870
district's formula ADM for grades six to twelve by two hundred	871
fifty, and then multiplying the quotient by a dollar amount for	872
each fiscal year established by law. No counselor factor shall be	873
calculated and paid for fiscal years 2010 and 2011.	874

(3) The summer remediation program factor shall be calculated	875
by multiplying the district's formula ADM times its targeted	876
poverty indicator times fifty per cent, which represents the	877
anticipated participation rate, dividing that product by thirty,	878
which is the assumed student-to-teacher ratio for summer	879
remediation, and multiplying that quotient by the product of	880
$3,000 times the applicable Ohio educational challenge factor.	881

(4) The school nurse wellness coordinator factor shall be	882
calculated by multiplying the number of the district's	883
organizational units times a dollar amount for each fiscal year	884
established by law, except that in a small school district, the	885
school nurse wellness coordinator factor shall be zero. No school	886
nurse wellness coordinator factor shall be calculated and paid for	887
fiscal years 2010 and 2011.	888

(5) The district health professional factor for each district	889
equals a dollar amount specified by law for each fiscal year. No	890
district health professional factor shall be calculated and paid	891
for fiscal years 2010 and 2011.	892

(C) In adopting expenditure and reporting standards under	893
section 3306.25 of the Revised Code, the superintendent of public	894
instruction shall include standards that encourage school	895
districts to give preference to employing or obtaining the	896
services of licensed school nurses with funds received for the	897
school nurse wellness coordinator factor and the district health	898
professional factor.	899

(D) Each school district shall account separately for	900
expenditures of the amounts received for additional services	901
support under this section and report that information to the	902
department of education.	903

Sec. 3306.07.  (A) The administrative services support	904
component of the adequacy amount for each city, local, and	905
exempted village school district is the sum of the following:	906

(1) The district administration factor;

907

(2) The principal factor;

908

(3) The administrative support personnel factor;

909

(B)(1) The district administration factor equals $187,176 in	910
fiscal year 2010 and $190,801 in fiscal year 2011.	911

(2) The principal factor shall be calculated by multiplying	912
the number of the district's organizational units times $89,563 in	913
fiscal year 2010 and $91,297 in fiscal year 2011. However, each	914
type 1 or type 2 school district shall receive for a principal	915
factor an amount not less than the applicable dollar amount	916
specified in this paragraph times the number of school buildings	917
in the district for which the department of education issued a	918
report card under section 3302.03 of the Revised Code for the	919
prior school year. As used in this division, "type 1 school	920
district" means a school district characterized as a type 1	921
(rural/agricultural, high poverty, low median income) district,	922
and "type 2 school district" means a school district characterized	923
as a type 2 (rural/agricultural, small student population, low	924
poverty, low to moderate median income), in the typology of	925
districts published by the department in July 2007.	926

(3) The administrative support personnel factor is funding	927
determined for building managers, secretaries, and	928
noninstructional aides.	929

(a) The funding for building managers shall be calculated by	930
multiplying $33,624 in fiscal year 2010 and $34,275 in fiscal year	931
2011 times the number of the district's organizational units.	932

(b) The funding for secretaries shall be calculated by	933
multiplying $33,624 in fiscal year 2010 and $34,275 in fiscal year	934
2011 times the number of the district's organizational units,	935
where two additional secretaries shall be funded for each high	936
school organizational unit.	937

(c) The funding for noninstructional aides shall be a dollar	938
amount set by law for each fiscal year times the number of the	939
district's organizational units, where the organizational units	940
are multiplied by two in the case of elementary school and middle	941
school organizational units and by three in case of high school	942
organizational units.	943

However, each small school district shall receive funding for	944
one building manager, one secretary, and one noninstructional	945
aide. Every other city, local, and exempted village school	946
district shall receive funding for at least one building manager,	947
one secretary, and one noninstructional aide.	948

No funding shall be calculated and paid for noninstructional	949
aides for fiscal years 2010 and 2011.	950

(C) Each school district shall account separately for the	951
amounts received for administrative services support under this	952
section and report that information to the department of	953
education.	954

Sec. 3306.08. (A) The operations and maintenance support	955
component of the adequacy amount for each city, local, and	956
exempted village school district shall be calculated by	957
multiplying the district's formula ADM times $884.	958

(B) The operations and maintenance support for each city,	959
local, and exempted village school district shall be adjusted by	960
multiplying the calculated amount by 0.45 in fiscal years 2010 and	961
2011, and by 0.75 in fiscal years 2012 and 2013.	962

(C) Each school district shall account separately for	963
expenditures of the amounts received for operations and	964
maintenance support under this section and report that information	965
to the department of education.	966

Sec. 3306.09.  (A) The gifted education support component of	967
the adequacy amount for each city, local, and exempted village	968
school district is the sum of the following:	969

(1) The gifted identification factor;

970

(2) The gifted coordinator factor;

971

(3) The gifted intervention specialist factor;

972

(4) The gifted intervention specialist professional	973
development factor.	974

(B)(1) The gifted identification factor shall be calculated	975
by multiplying the district's formula ADM times $5.	976

(2) The gifted coordinator factor shall be calculated by	977
multiplying $66,375 in fiscal year 2010 and $67,660 in fiscal year	978
2011 times the quotient of the district's formula ADM divided by	979
two thousand five hundred.	980

(3) The gifted intervention specialist factor shall be	981
calculated by multiplying the number of the district's	982
organizational units times the Ohio educational challenge factor	983
specified for the district in section 3306.051 of the Revised Code	984
times the statewide base teacher salary specified in section	985
3306.05 of the Revised Code.	986

(4) The gifted intervention specialist professional	987
development factor shall be calculated by multiplying the number	988
of the district's organizational units times the	989
per-teaching-position dollar amount specified for the professional	990
development factor in division (A)(7) of section 3306.03 of the	991
Revised Code.	992

(C) The gifted intervention specialist factor and the gifted	993
intervention specialist professional development factor for each	994
city, local, and exempted village school district, shall be	995
adjusted by multiplying the calculated amount by 0.20 in fiscal	996
year 2010, by 0.30 in fiscal year 2011, by 0.40 in fiscal years	997
2012 and 2013, by 0.60 in fiscal years 2014 and 2015, and by 0.80	998
in fiscal years 2016 and 2017.	999

(D) A school district that does not submit an annual report	1000
under section 3324.05 of the Revised Code, or that reports zero	1001
students identified as gifted, shall receive zero funding for the	1002
gifted coordinator factor, the gifted intervention specialist	1003
factor, and the gifted intervention specialist professional	1004
development factor.	1005

(E) Each school district shall expend the funds calculated	1006
under the gifted education support component in accordance with	1007
rules adopted under section 3306.25 of the Revised Codeby the	1008
state board of education. Those rules shall require that such	1009
funds be spent only for the employment of staff to serve students	1010
identified as gifted, in accordance with Chapter 3324. of the	1011
Revised Code, or for other services to such students. The rules	1012
shall be aligned with the operating standards for identifying and	1013
serving gifted students prescribed in rules adopted by the state	1014
board of education. Notwithstanding anything to the contrary in	1015
section 3306.25 of the Revised Code, theThe rules regarding the	1016
expenditure and reporting of funds for the gifted education	1017
support component adopted under thatthis section shall take	1018
effect July 1, 20112013.	1019

Subject to approval by the department of education, a school	1020
district may use up to fifteen per cent of the portion of the	1021
gifted intervention specialist factor attributable to the grade	1022
six through twelve formula ADM to support access to services	1023
provided by the district that are not services described in	1024
Chapter 3324. of the Revised Code but are specified in gifted	1025
students' written education plans prepared in accordance with the	1026
state board's operating standards for identifying and serving	1027
gifted students.	1028

(F) Each school district shall account separately for	1029
expenditures of the amounts received for gifted identification,	1030
gifted coordinators, gifted intervention specialists, and gifted	1031
intervention specialist professional development under this	1032
section and report that information to the department of	1033
education.	1034

(G)(1) Each city, local, and exempted village school district	1035
that received for fiscal year 2009 unit funding for staff to	1036
provide gifted student services under division (L) of section	1037
3317.024 and division (E) of section 3317.05 of the Revised Code,	1038
as those sections existed for that fiscal year, shall spend in	1039
each fiscal year thereafter for staff to provide services to	1040
identified gifted students from the funds received under this	1041
chapter an amount not less than the aggregate amount received for	1042
such gifted unit funding for fiscal year 2009.	1043

(2) Each city, local, and exempted village school district	1044
that, in fiscal year 2009, received gifted student services from	1045
staff employed for that purpose by an educational service center,	1046
which service center received for fiscal year 2009 unit funding	1047
for gifted student services, shall in each fiscal year thereafter	1048
do either of the following:	1049

(a) Obtain staff to provide gifted student services from an	1050
educational service center that are comparable to the gifted	1051
student staff services provided to the district with gifted unit	1052
funding in fiscal year 2009 by an educational service center;	1053

(b) Spend for staff to provide services to identified gifted	1054
students from the funds received under this chapter an amount not	1055
less than the amount of gifted unit funding expended by an	1056
educational service center in fiscal year 2009 for the district's	1057
students.	1058

(3) No district to which division (G)(1) or (2) of this	1059
section applies shall apply for or receive a waiver under section	1060
3306.40 of the Revised Code from the spending requirements	1061
prescribed in those divisions or under division (E) of this	1062
section.	1063

(4) Each educational service center that received for fiscal	1064
year 2009 unit funding for staff to provide gifted student	1065
services shall spend from its state funds in each fiscal year	1066
thereafter for staff to provide services to identified gifted	1067
students an amount not less than the aggregate amount received for	1068
gifted unit funding for fiscal year 2009. No educational service	1069
center to which division (G)(4) of this section shall receive any	1070
waiver of this requirement.	1071

(H) A city, local, or exempted village school district that	1072
did not receive for fiscal year 2009 unit funding for gifted	1073
student services under division (L) of section 3317.024 and	1074
division (E) of section 3317.05 of the Revised Code, as those	1075
sections existed for that fiscal year, may apply to the	1076
superintendent of public instruction for a waiver under section	1077
3306.40 of the Revised Code from any expenditure requirements	1078
prescribed under division (E) of this section. Notwithstanding	1079
anything to the contrary in section 3306.40 of the Revised Code,	1080
theThe first waiver granted to a district pursuant to this	1081
division shall not be effective for longer than two years, and	1082
any. A district may receive one subsequent renewal of that waiver,	1083
which shall not be effective for longer than one year.	1084

(I) Each school district and educational center shall account	1085
for the funds spent under division (G) of this section and report	1086
that information to the department. The operating standards for	1087
identifying and serving gifted students shall apply to the staff	1088
funded under this section. The department shall monitor and	1089
enforce compliance with the spending requirements in division (G)	1090
of this section.	1091

Sec. 3306.091.  (A) The enrichment support component of the	1092
adequacy amount for each city, local, and exempted village school	1093
district shall be calculated by multiplying the district's formula	1094
ADM times $100 times the Ohio educational challenge factor.	1095

(B) The enrichment support for each city, local, and exempted	1096
village school district shall be adjusted by multiplying the	1097
calculated amount by 0.20 in fiscal year 2010, by 0.30 in fiscal	1098
year 2011, by 0.40 in fiscal years 2012 and 2013, by 0.60 in	1099
fiscal years 2014 and 2015, and by 0.80 in fiscal years 2016 and	1100
2017.	1101

(C) The enrichment support component shall be used for	1102
purposes other than services for students identified as gifted	1103
delivered in accordance with Chapter 3324. of the Revised Code. A	1104
district may spend the enrichment support component to pay for	1105
enrichment activities that may encourage the intellectual and	1106
creative pursuits of all students, including the fine arts.	1107

(D) Each school district shall account separately for	1108
expenditures of the amounts received for enrichment support under	1109
this section and report that information to the department of	1110
education.	1111

Sec. 3306.10. (A) The technology resources support component	1112
of the adequacy amount for each city, local, and exempted village	1113
school district is the sum of the following:	1114

(1) The licensed librarian and media specialist factor;

1115

(2) The technical equipment factor.

1116

(B)(1) The licensed librarian and media specialist factor	1117
shall be calculated by multiplying the number of the district's	1118
organizational units times $60,000.	1119

(2) The technical equipment factor shall be calculated by	1120
multiplying the district's formula ADM times $250.	1121

(C) The licensed librarian and media specialist factor and	1122
the technical equipment factor for each city, local, and exempted	1123
village school district shall be adjusted by multiplying the	1124
calculated amounts by 0.20 in fiscal year 2010, by 0.30 in fiscal	1125
year 2011, by 0.40 in fiscal years 2012 and 2013, by 0.60 in	1126
fiscal years 2014 and 2015, and by 0.80 in fiscal years 2016 and	1127
2017.	1128

(D) Each school district shall account separately for the	1129
amounts received for technology resources support under this	1130
section and report that information to the department of	1131
education.	1132

Sec. 3315.18.  (A) The board of education of each city,	1133
exempted village, local, and joint vocational school district	1134
shall establish a capital and maintenance fund. Each board	1135
annually shall deposit into that fund an amount derived from	1136
revenues received by the district that would otherwise have been	1137
deposited in the general fund that is equal to three per cent of	1138
the formula amount for the preceding fiscal year, as defined in	1139
section 3317.02 of the Revised Code, or another percentage if	1140
established by the auditor of state under division (B) of this	1141
section, multiplied by the district's student population for the	1142
preceding fiscal year, except that money received from a permanent	1143
improvement levy authorized by section 5705.21 of the Revised Code	1144
may replace general revenue moneys in meeting the requirements of	1145
this section. Money in the fund shall be used solely for	1146
acquisition, replacement, enhancement, maintenance, or repair of	1147
permanent improvements, as that term is defined in section 5705.01	1148
of the Revised Code. Any money in the fund that is not used in any	1149
fiscal year shall carry forward to the next fiscal year.	1150

(B) The state superintendent of public instruction and the	1151
auditor of state jointly shall adopt rules in accordance with	1152
Chapter 119. of the Revised Code defining what constitutes	1153
expenditures permitted by division (A) of this section. The	1154
auditor of state may designate a percentage, other than three per	1155
cent, of the formula amount multiplied by the district's student	1156
population that must be deposited into the fund.	1157

(C) Within its capital and maintenance fund, a school	1158
district board of education may establish a separate account	1159
solely for the purpose of depositing funds transferred from the	1160
district's reserve balance account established under former	1161
division (H) of section 5705.29 of the Revised Code. After April	1162
10, 2001, a board may deposit all or part of the funds formerly	1163
included in such reserve balance account in the separate account	1164
established under this section. Funds deposited in this separate	1165
account and interest on such funds shall be utilized solely for	1166
the purpose of providing the district's portion of the basic	1167
project costs of any project undertaken in accordance with Chapter	1168
3318. of the Revised Code.	1169

(D)(1) Notwithstanding division (A) of this section, in any	1170
year a district is in fiscal emergency status as declared pursuant	1171
to section 3316.03 of the Revised Code, the district may deposit	1172
an amount less than required by division (A) of this section, or	1173
make no deposit, into the district capital and maintenance fund	1174
for that year.	1175

(2) Notwithstanding division (A) of this section, in any	1176
fiscal year that a school district is either in fiscal watch	1177
status, as declared pursuant to section 3316.03 of the Revised	1178
Code, or in fiscal caution status, as declared pursuant to section	1179
3316.031 of the Revised Code, the district may apply to the	1180
superintendent of public instruction for a waiver from the	1181
requirements of division (A) of this section, under which the	1182
district may be permitted to deposit an amount less than required	1183
by that division or permitted to make no deposit into the district	1184
capital and maintenance fund for that year. The superintendent may	1185
grant a waiver under division (D)(2) of this section if the	1186
district demonstrates to the satisfaction of the superintendent	1187
that compliance with division (A) of this section that year will	1188
create an undue financial hardship on the district.	1189

(3) Notwithstanding division (A) of this section, not more	1190
often than one fiscal year in every three consecutive fiscal	1191
years, any school district that does not satisfy the conditions	1192
for the exemption described in division (D)(1) of this section or	1193
the conditions to apply for the waiver described in division	1194
(D)(2) of this section may apply to the superintendent of public	1195
instruction for a waiver from the requirements of division (A) of	1196
this section, under which the district may be permitted to deposit	1197
an amount less than required by that division or permitted to make	1198
no deposit into the district capital and maintenance fund for that	1199
year. The superintendent may grant a waiver under division (D)(3)	1200
of this section if the district demonstrates to the satisfaction	1201
of the superintendent that compliance with division (A) of this	1202
section that year will necessitate the reduction or elimination of	1203
a program currently offered by the district that is critical to	1204
the academic success of students of the district and that no	1205
reasonable alternatives exist for spending reductions in other	1206
areas of operation within the district that negate the necessity	1207
of the reduction or elimination of that program.	1208

(E) Notwithstanding any provision to the contrary in Chapter	1209
4117. of the Revised Code, the requirements of this section	1210
prevail over any conflicting provisions of agreements between	1211
employee organizations and public employers entered into after	1212
November 21, 1997.	1213

(F) As used in this section, "student population" means the	1214
average, daily, full-time equivalent number of students in	1215
kindergarten through twelfth grade receiving any educational	1216
services from the school district during the first full school	1217
week in October, excluding students enrolled in adult education	1218
classes, but including all of the following:	1219

(1) Adjacent or other district students enrolled in the	1220
district under an open enrollment policy pursuant to section	1221
3313.98 of the Revised Code;	1222

(2) Students receiving services in the district pursuant to a	1223
compact, cooperative education agreement, or a contract, but who	1224
are entitled to attend school in another district pursuant to	1225
section 3313.64 or 3313.65 of the Revised Code;	1226

(3) Students for whom tuition is payable pursuant to sections	1227
3317.081 and 3323.141 of the Revised Code.	1228

The department of education shall determine a district's	1229
student population using data reported to it under section 3317.03	1230
of the Revised Code for the applicable fiscal year.	1231

Sec. 3315.19.  Notwithstanding the provisions of sections	1232
3315.17 andsection 3315.18 of the Revised Code as they existit	1233
exists after the effective date of this sectionJuly 1, 2001, the	1234
board of education of any school district annually may elect to	1235
set aside funds for textbooks and instructional materials or for	1236
capital and maintenance in accordance with the provisions of those	1237
sectionsthat section as theyit existed prior to the effective	1238
date of this sectionJuly 1, 2001, and the rules adopted under	1239
those sectionsthat section. Any district board making such an	1240
election under this section shall notify the auditor of state	1241
within ninety days after the beginning of the fiscal year whether	1242
the district intends to comply with the provisions of one or both	1243
former sectionssection 3315.18 of the Revised Code. A school	1244
district making an election under this section shall not be	1245
required to comply, during the fiscal year of the election, with	1246
the provisions of the applicable sectionssection 3315.18 of the	1247
Revised Code as they existit exists after the effective date of	1248
this sectionJuly 1, 2001.	1249

Sec. 3316.06.  (A) Within one hundred twenty days after the	1250
first meeting of a school district financial planning and	1251
supervision commission, the commission shall adopt a financial	1252
recovery plan regarding the school district for which the	1253
commission was created. During the formulation of the plan, the	1254
commission shall seek appropriate input from the school district	1255
board and from the community. This plan shall contain the	1256
following:	1257

(1) Actions to be taken to:

1258

(a) Eliminate all fiscal emergency conditions declared to	1259
exist pursuant to division (B) of section 3316.03 of the Revised	1260
Code;	1261

(b) Satisfy any judgments, past-due accounts payable, and all	1262
past-due and payable payroll and fringe benefits;	1263

(c) Eliminate the deficits in all deficit funds, except that	1264
any prior year deficits in the textbook and instructional	1265
materials fund established pursuant to section 3315.17 of the	1266
Revised Code and the capital and maintenance fund established	1267
pursuant to section 3315.18 of the Revised Code shall be forgiven;	1268

(d) Restore to special funds any moneys from such funds that	1269
were used for purposes not within the purposes of such funds, or	1270
borrowed from such funds by the purchase of debt obligations of	1271
the school district with the moneys of such funds, or missing from	1272
the special funds and not accounted for, if any;	1273

(e) Balance the budget, avoid future deficits in any funds,	1274
and maintain on a current basis payments of payroll, fringe	1275
benefits, and all accounts;	1276

(f) Avoid any fiscal emergency condition in the future;

1277

(g) Restore the ability of the school district to market	1278
long-term general obligation bonds under provisions of law	1279
applicable to school districts generally.	1280

(2) The management structure that will enable the school	1281
district to take the actions enumerated in division (A)(1) of this	1282
section. The plan shall specify the level of fiscal and management	1283
control that the commission will exercise within the school	1284
district during the period of fiscal emergency, and shall	1285
enumerate respectively, the powers and duties of the commission	1286
and the powers and duties of the school board during that period.	1287
The commission may elect to assume any of the powers and duties of	1288
the school board it considers necessary, including all powers	1289
related to personnel, curriculum, and legal issues in order to	1290
successfully implement the actions described in division (A)(1) of	1291
this section.	1292

(3) The target dates for the commencement, progress upon, and	1293
completion of the actions enumerated in division (A)(1) of this	1294
section and a reasonable period of time expected to be required to	1295
implement the plan. The commission shall prepare a reasonable time	1296
schedule for progress toward and achievement of the requirements	1297
for the plan, and the plan shall be consistent with that time	1298
schedule.	1299

(4) The amount and purpose of any issue of debt obligations	1300
that will be issued, together with assurances that any such debt	1301
obligations that will be issued will not exceed debt limits	1302
supported by appropriate certifications by the fiscal officer of	1303
the school district and the county auditor. Debt obligations	1304
issued pursuant to section 133.301 of the Revised Code shall	1305
include assurances that such debt shall be in an amount not to	1306
exceed the amount certified under division (B) of such section. If	1307
the commission considers it necessary in order to maintain or	1308
improve educational opportunities of pupils in the school	1309
district, the plan may include a proposal to restructure or	1310
refinance outstanding debt obligations incurred by the board under	1311
section 3313.483 of the Revised Code contingent upon the approval,	1312
during the period of the fiscal emergency, by district voters of a	1313
tax levied under section 718.09, 718.10, 5705.194, 5705.21,	1314
5748.02, or 5748.08 of the Revised Code that is not a renewal or	1315
replacement levy, or a levy under section 5705.199 of the Revised	1316
Code, and that will provide new operating revenue. Notwithstanding	1317
any provision of Chapter 133. or sections 3313.483 to 3313.4811 of	1318
the Revised Code, following the required approval of the district	1319
voters and with the approval of the commission, the school	1320
district may issue securities to evidence the restructuring or	1321
refinancing. Those securities may extend the original period for	1322
repayment, not to exceed ten years, and may alter the frequency	1323
and amount of repayments, interest or other financing charges, and	1324
other terms of agreements under which the debt originally was	1325
contracted, at the discretion of the commission, provided that any	1326
loans received pursuant to section 3313.483 of the Revised Code	1327
shall be paid from funds the district would otherwise receive	1328
under Chapter 3306. of the Revised Code, as required under	1329
division (E)(3) of section 3313.483 of the Revised Code. The	1330
securities issued for the purpose of restructuring or refinancing	1331
the debt shall be repaid in equal payments and at equal intervals	1332
over the term of the debt and are not eligible to be included in	1333
any subsequent proposal for the purpose of restructuring or	1334
refinancing debt under this section.	1335

(B) Any financial recovery plan may be amended subsequent to	1336
its adoption. Each financial recovery plan shall be updated	1337
annually.	1338

(C) Each school district financial planning and supervision	1339
commission shall submit the financial recovery plan it adopts or	1340
updates under this section to the state superintendent of public	1341
instruction for approval immediately following its adoption or	1342
updating. The state superintendent shall evaluate the plan and	1343
either approve or disapprove it within thirty calendar days from	1344
the date of its submission. If the plan is disapproved, the state	1345
superintendent shall recommend modifications that will render it	1346
acceptable. No financial planning and supervision commission shall	1347
implement a financial recovery plan that is adopted or updated on	1348
or after April 10, 2001, unless the state superintendent has	1349
approved it.	1350

Sec. 3316.16.  (A) A school district financial planning and	1351
supervision commission, with respect to its functions under this	1352
chapter, shall continue in existence until such time as a	1353
determination is made under division (B) of this section that all	1354
of the following have occurred:	1355

(1) An effective financial accounting and reporting system in	1356
accordance with section 3316.10 of the Revised Code is in the	1357
process of being implemented, and it is reasonably expected that	1358
this implementation will be completed within two years.	1359

(2) All of the fiscal emergency conditions determined	1360
pursuant to division (B) of section 3316.03 of the Revised Code	1361
have been corrected or eliminated, and no new fiscal emergency	1362
conditions have occurred.	1363

(3) The objectives of the financial recovery plan described	1364
in section 3316.06 of the Revised Code are being met.	1365

(4) The school district board has prepared a financial	1366
forecast for a five-year period in accordance with the standards	1367
issued by the auditor of state and an opinion has been rendered by	1368
the auditor of state that the financial forecast is considered to	1369
be nonadverse. The forecast shall display the district's projected	1370
compliance with sections 3315.17 andsection 3315.18 of the	1371
Revised Code beginning in the year the commission is proposed for	1372
termination.	1373

(B) The determination that all conditions listed in division	1374
(A) of this section for the termination of the existence of the	1375
commission and its functions exist may be made either by the	1376
auditor of state or by the commission and shall be certified to	1377
the commission, the auditor of state, the governor, the director	1378
of budget and management, and the budget commission, whereupon	1379
such commission and its functions under this chapter shall	1380
terminate. This determination shall be made by the auditor of	1381
state upon the filing with the auditor of state of a written	1382
request for such a determination by the school district board, the	1383
governor, or the commission, or may be made by the auditor of	1384
state upon the auditor of state's own initiative.	1385

(C) The commission shall prepare and submit at the time of	1386
such certification a final report of its activities, in such form	1387
as is appropriate for the purpose of providing a record of its	1388
activities and assisting other commissions created under this	1389
chapter in the conduct of their functions. All of the books and	1390
records of the commission shall be delivered to the auditor of	1391
state for retention and safekeeping.	1392

(D) Upon receipt of the certification provided for in	1393
division (B) of this section, the director of budget and	1394
management shall follow the procedures set forth in section 126.29	1395
of the Revised Code.	1396

(E) If, at the time of termination of the commission, an	1397
effective financial accounting and reporting system has not been	1398
fully implemented, the auditor of state shall monitor the progress	1399
of implementation and shall exercise authority under this section	1400
and Chapter 117. of the Revised Code to secure full implementation	1401
at the earliest time feasible but within two years after such	1402
termination.	1403

Sec. 3317.018. (A) The department of education shall make no	1404
calculations or payments under Chapter 3317. of the Revised Code	1405
for any fiscal year except as prescribed in this section.	1406

(B) School districts shall report student enrollment data as	1407
prescribed by section 3317.03 of the Revised Code, which data the	1408
department shall use to make payments under Chapters 3306. and	1409
3317. of the Revised Code.	1410

(C) The tax commissioner shall report data regarding tax	1411
valuation and receipts for school districts as prescribed by	1412
sections 3317.015, 3317.021, 3317.025, 3317.026, 3317.027,	1413
3317.028, 3317.0210, 3317.0211, and 3317.08 and by division (M) of	1414
section 3317.02 of the Revised Code, which data the department	1415
shall use to make payments under Chapters 3306. and 3317. of the	1416
Revised Code.	1417

(D) Unless otherwise specified by another provision of law,	1418
in addition to the payments prescribed by Chapter 3306. of the	1419
Revised Code, the department shall continue to make payments to or	1420
adjustments for school districts in fiscal years after fiscal year	1421
2009 under the following provisions of Chapter 3317. of the	1422
Revised Code:	1423

(1) The catastrophic cost reimbursement under division (C)(3)	1424
of section 3317.022 of the Revised Code. No other payments shall	1425
be made under that section.	1426

(2) All payments or adjustments under section 3317.023 of the	1427
Revised Code, except no payments or adjustments shall be made	1428
under divisions (B), (C), and (D) of that section.	1429

(3) All payments or adjustments under section 3317.024 of the	1430
Revised Code, except no payments or adjustments shall be made	1431
under divisions (F), (L), and (N) of that section for fiscal years	1432
after fiscal year 2009 or under division (L) of that section for	1433
fiscal years 2010 and 2011.	1434

(4) All payments and adjustments under sections 3317.025,	1435
3317.026, 3317.027, 3317.028, 3317.0210, and 3317.0211 of the	1436
Revised Code;	1437

(5) Payments under section 3317.04 of the Revised Code;

1438

(6) Unit payments under sections 3317.05, 3317.051, 3317.052,	1439
and 3317.053 of the Revised Code, except that no units for gifted	1440
funding are authorized after fiscal year 2009for fiscal years	1441
2010 and 2011.	1442

(7) Payments under sections 3317.06, 3317.063, and 3317.064	1443
of the Revised Code;	1444

(8) Payments under section 3317.07 of the Revised Code;

1445

(9) Payments to educational service centers under section	1446
3317.11 of the Revised Code;	1447

(10) The catastrophic cost reimbursement under division (E)	1448
of section 3317.16 of the Revised Code and excess cost	1449
reimbursements under division (G) of that section. No other	1450
payments shall be made under that section;	1451

(11) Payments under section 3317.17 of the Revised Code;

1452

(12) Adjustments under section 3317.18 of the Revised Code;

1453

(13) Payments to cooperative education school districts under	1454
section 3317.19 of the Revised Code;	1455

(14) Payments to county MR/DD boards under section 3317.20 of	1456
the Revised Code;	1457

(15) Payments to state institutions for weighted special	1458
education funding under section 3317.201 of the Revised Code.	1459

(E) Sections 3317.016 and 3317.017 shall not apply to fiscal	1460
years after fiscal year 2009.	1461

(F) This section does not affect the provisions of sections	1462
3317.031, 3317.032, 3317.033, 3317.035, 3317.061, 3317.08,	1463
3317.081, 3317.082, 3317.09, 3317.12, 3317.13, 3317.14, 3317.15,	1464
3317.50, 3317.51, 3317.62, 3317.63, and 3317.64 of the Revised	1465
Code.	1466

Sec. 3317.024.  The following shall be distributed monthly,	1467
quarterly, or annually as may be determined by the state board of	1468
education, except that the department of education shall not make	1469
payments under divisions (F), (L), and (N) of this section for any	1470
fiscal year after fiscal year 2009 or under division (L) of this	1471
section for fiscal year 2010 or 2011:	1472

(A) An amount for each island school district and each joint	1473
state school district for the operation of each high school and	1474
each elementary school maintained within such district and for	1475
capital improvements for such schools. Such amounts shall be	1476
determined on the basis of standards adopted by the state board of	1477
education.	1478

(B) An amount for each school district operating classes for	1479
children of migrant workers who are unable to be in attendance in	1480
an Ohio school during the entire regular school year. The amounts	1481
shall be determined on the basis of standards adopted by the state	1482
board of education, except that payment shall be made only for	1483
subjects regularly offered by the school district providing the	1484
classes.	1485

(C) An amount for each school district with guidance,	1486
testing, and counseling programs approved by the state board of	1487
education. The amount shall be determined on the basis of	1488
standards adopted by the state board of education.	1489

(D) An amount for the emergency purchase of school buses as	1490
provided for in section 3317.07 of the Revised Code;	1491

(E) An amount for each school district required to pay	1492
tuition for a child in an institution maintained by the department	1493
of youth services pursuant to section 3317.082 of the Revised	1494
Code, provided the child was not included in the calculation of	1495
the district's average daily membership for the preceding school	1496
year.	1497

(F) An amount for adult basic literacy education for each	1498
district participating in programs approved by the state board of	1499
education. The amount shall be determined on the basis of	1500
standards adopted by the state board of education.	1501

(G) An amount for the approved cost of transporting eligible	1502
pupils with disabilities attending a special education program	1503
approved by the department of education whom it is impossible or	1504
impractical to transport by regular school bus in the course of	1505
regular route transportation provided by the district or service	1506
center. No district or service center is eligible to receive a	1507
payment under this division for the cost of transporting any pupil	1508
whom it transports by regular school bus and who is included in	1509
the district's transportation ADM. The state board of education	1510
shall establish standards and guidelines for use by the department	1511
of education in determining the approved cost of such	1512
transportation for each district or service center.	1513

(H) An amount to each school district, including each	1514
cooperative education school district, pursuant to section 3313.81	1515
of the Revised Code to assist in providing free lunches to needy	1516
children and an amount to assist needy school districts in	1517
purchasing necessary equipment for food preparation. The amounts	1518
shall be determined on the basis of rules adopted by the state	1519
board of education.	1520

(I) An amount to each school district, for each pupil	1521
attending a chartered nonpublic elementary or high school within	1522
the district. The amount shall equal the amount appropriated for	1523
the implementation of section 3317.06 of the Revised Code divided	1524
by the average daily membership in grades kindergarten through	1525
twelve in nonpublic elementary and high schools within the state	1526
as determined during the first full week in October of each school	1527
year.	1528

(J) An amount for each county DD board, distributed on the	1529
basis of standards adopted by the state board of education, for	1530
the approved cost of transportation required for children	1531
attending special education programs operated by the county DD	1532
board under section 3323.09 of the Revised Code;	1533

(K) An amount for each school district that establishes a	1534
mentor teacher program that complies with rules of the state board	1535
of education. No school district shall be required to establish or	1536
maintain such a program in any year unless sufficient funds are	1537
appropriated to cover the district's total costs for the program.	1538

(L) An amount to each school district or educational service	1539
center for the total number of gifted units approved pursuant to	1540
section 3317.05 of the Revised Code. The amount for each such unit	1541
shall be the sum of the minimum salary for the teacher of the	1542
unit, calculated on the basis of the teacher's training level and	1543
years of experience pursuant to the salary schedule prescribed in	1544
the version of section 3317.13 of the Revised Code in effect prior	1545
to July 1, 2001, plus fifteen per cent of that minimum salary	1546
amount, plus two thousand six hundred seventy-eight dollars.	1547

(M) An amount to each institution defined under section	1548
3317.082 of the Revised Code providing elementary or secondary	1549
education to children other than children receiving special	1550
education under section 3323.091 of the Revised Code. This amount	1551
for any institution in any fiscal year shall equal the total of	1552
all tuition amounts required to be paid to the institution under	1553
division (A)(1) of section 3317.082 of the Revised Code.	1554

(N) A grant to each school district and joint vocational	1555
school district that operates a "graduation, reality, and	1556
dual-role skills" (GRADS) program for pregnant and parenting	1557
students that is approved by the department. The amount of the	1558
payment shall be the district's state share percentage, as defined	1559
in section 3317.022 or 3317.16 of the Revised Code, times the	1560
GRADS personnel allowance times the full-time-equivalent number of	1561
GRADS teachers approved by the department. The GRADS personnel	1562
allowance is $47,555 in fiscal years 2008 and 2009. The GRADS	1563
program shall include instruction on adoption as an option for	1564
unintended pregnancies.	1565

The state board of education or any other board of education	1566
or governing board may provide for any resident of a district or	1567
educational service center territory any educational service for	1568
which funds are made available to the board by the United States	1569
under the authority of public law, whether such funds come	1570
directly or indirectly from the United States or any agency or	1571
department thereof or through the state or any agency, department,	1572
or political subdivision thereof.	1573

Sec. 3321.01. (A)(1) As used in this chapter, "parent,"	1574
"guardian," or "other person having charge or care of a child"	1575
means either parent unless the parents are separated or divorced	1576
or their marriage has been dissolved or annulled, in which case	1577
"parent" means the parent who is the residential parent and legal	1578
custodian of the child. If the child is in the legal or permanent	1579
custody of a person or government agency, "parent" means that	1580
person or government agency. When a child is a resident of a home,	1581
as defined in section 3313.64 of the Revised Code, and the child's	1582
parent is not a resident of this state, "parent," "guardian," or	1583
"other person having charge or care of a child" means the head of	1584
the home.	1585

A child between six and eighteen years of age is "of	1586
compulsory school age" for the purpose of sections 3321.01 to	1587
3321.13 of the Revised Code. A child under six years of age who	1588
has been enrolled in kindergarten also shall be considered "of	1589
compulsory school age" for the purpose of sections 3321.01 to	1590
3321.13 of the Revised Code unless at any time the child's parent	1591
or guardian, at the parent's or guardian's discretion and in	1592
consultation with the child's teacher and principal, formally	1593
withdraws the child from kindergarten. The compulsory school age	1594
of a child shall not commence until the beginning of the term of	1595
such schools, or other time in the school year fixed by the rules	1596
of the board of the district in which the child resides.	1597

(2) No child shall be admitted to a kindergarten or a first	1598
grade of a public school in a district in which all children are	1599
admitted to kindergarten and the first grade in August or	1600
September unless the child is five or six years of age,	1601
respectively, by the thirtieth day of September of the year of	1602
admittance, or by the first day of a term or semester other than	1603
one beginning in August or September in school districts granting	1604
admittance at the beginning of such term or semester, except that	1605
in those school districts using or obtaining educationally	1606
accepted standardized testing programs for determining entrance,	1607
as approved by the board of education of such districts, the board	1608
shall admit a child to kindergarten or the first grade who fails	1609
to meet the age requirement, provided the child meets necessary	1610
standards as determined by such standardized testing programs. If	1611
the board of education has not established a standardized testing	1612
program, the board shall designate the necessary standards and a	1613
testing program it will accept for the purpose of admitting a	1614
child to kindergarten or first grade who fails to meet the age	1615
requirement. Each child who will be the proper age for entrance to	1616
kindergarten or first grade by the first day of January of the	1617
school year for which admission is requested shall be so tested	1618
upon the request of the child's parent.	1619

(3) Notwithstanding divisions (A)(2) and (D) of this section,	1620
beginning with the school year that starts in 2001 and continuing	1621
thereafter the board of education of any district may adopt a	1622
resolution establishing the first day of August in lieu of the	1623
thirtieth day of September as the required date by which students	1624
must have attained the age specified in those divisions.	1625

(B) As used in divisions (C) and (D) of this section,	1626
"successfully completed kindergarten" and "successful completion	1627
of kindergarten" mean that the child has completed the	1628
kindergarten requirements at one of the following:	1629

(1) A public or chartered nonpublic school;

1630

(2) A kindergarten class that is both of the following:

1631

(a) Offered by a day-care provider licensed under Chapter	1632
5104. of the Revised Code;	1633

(b) If offered after July 1, 1991, is directly taught by a	1634
teacher who holds one of the following:	1635

(i) A valid educator license issued under section 3319.22 of	1636
the Revised Code;	1637

(ii) A Montessori preprimary credential or age-appropriate	1638
diploma granted by the American Montessori society or the	1639
association Montessori internationale;	1640

(iii) Certification determined under division (G) of this	1641
section to be equivalent to that described in division	1642
(B)(2)(b)(ii) of this section;	1643

(iv) Certification for teachers in nontax-supported schools	1644
pursuant to section 3301.071 of the Revised Code.	1645

(C) Except as provided in division (D) of this section, no	1646
school district shall admit to the first grade any child who has	1647
not successfully completed kindergarten.	1648

(D) Upon request of a parent, the requirement of division (C)	1649
of this section may be waived by the district's pupil personnel	1650
services committee in the case of a child who is at least six	1651
years of age by the thirtieth day of September of the year of	1652
admittance and who demonstrates to the satisfaction of the	1653
committee the possession of the social, emotional, and cognitive	1654
skills necessary for first grade.	1655

The board of education of each city, local, and exempted	1656
village school district shall establish a pupil personnel services	1657
committee. The committee shall be composed of all of the following	1658
to the extent such personnel are either employed by the district	1659
or employed by the governing board of the educational service	1660
center within whose territory the district is located and the	1661
educational service center generally furnishes the services of	1662
such personnel to the district:	1663

(1) The director of pupil personnel services;

1664

(2) An elementary school counselor;

1665

(3) An elementary school principal;

1666

(4) A school psychologist;

1667

(5) A teacher assigned to teach first grade;

1668

(6) A gifted coordinator.

1669

The responsibilities of the pupil personnel services	1670
committee shall be limited to the issuing of waivers allowing	1671
admittance to the first grade without the successful completion of	1672
kindergarten. The committee shall have no other authority except	1673
as specified in this section.	1674

(E) The scheduling of times for kindergarten classes and	1675
length of the school day for kindergarten shall be determined by	1676
the board of education of a city, exempted village, or local	1677
school district, subject to section 3321.05 of the Revised Code.	1678

(F) Any kindergarten class offered by a day-care provider or	1679
school described by division (B)(1) or (B)(2)(a) of this section	1680
shall be developmentally appropriate.	1681

(G) Upon written request of a day-care provider described by	1682
division (B)(2)(a) of this section, the department of education	1683
shall determine whether certification held by a teacher employed	1684
by the provider meets the requirement of division (B)(2)(b)(iii)	1685
of this section and, if so, shall furnish the provider a statement	1686
to that effect.	1687

(H) As used in this division, "all-day kindergarten" has the	1688
same meaning as in section 3321.05 of the Revised Code.	1689

(1) Any school district that did not receive for fiscal year	1690
2009 poverty-based assistance for all-day kindergarten under	1691
division (D) of section 3317.029 of the Revised Code may charge	1692
fees or tuition for students enrolled in all-day kindergarten. If	1693
a district charges fees or tuition for all-day kindergarten under	1694
this division, the district shall develop a sliding fee scale	1695
based on family incomes.	1696

(2) The department of education shall conduct an annual	1697
survey of each school district described in division (H)(1) of	1698
this section to determine the following:	1699

(1)(a) Whether the district charges fees or tuition for	1700
students enrolled in all-day kindergarten;	1701

(b) The amount of the fees or tuition charged;

1702

(c) How many of the students for whom tuition is charged are	1703
eligible for free lunches under the "National School Lunch Act,"	1704
60 Stat. 230 (1946), 42 U.S.C. 1751, as amended, and the "Child	1705
Nutrition Act of 1966," 80 Stat. 885, 42 U.S.C. 1771, as amended,	1706
and how many of the students for whom tuition is charged are	1707
eligible for reduced price lunches under those acts;	1708

(2)(d) How many students are enrolled in traditional half-day	1709
kindergarten and how many students are enrolled inrather than	1710
all-day kindergarten, as defined in section 3321.05 of the Revised	1711
Code.	1712

Each district shall report to the department, in the manner	1713
prescribed by the department, the information required by this	1714
divisiondescribed in divisions (H)(2)(a) to (d) of this section.	1715

The department shall issue an annual report on the results of	1716
the survey and shall post the report on its web site. The	1717
department shall issue the first report not later than April 30,	1718
2008, and shall issue a report not later than the thirtieth day of	1719
April each year thereafter.	1720

Sec. 3321.05.  (A) As used in this section, "all-day	1721
kindergarten" means a kindergarten class that is in session five	1722
days per week for not less than the same number of clock hours	1723
each day as for students in grades one through six.	1724

(B) Any school district may operate all-day kindergarten or	1725
extended kindergarten, but beginning in fiscal year 2011, each	1726
city, local, and exempted village school district shall provide	1727
all-day kindergarten to each student enrolled in kindergarten,	1728
except as specified in divisions (C) and (D) of this section.	1729

(C) The board of education of a school district may apply to	1730
the superintendent of public instruction for a waiver of the	1731
requirement to provide all-day kindergarten for all kindergarten	1732
students. In making the determination to grant or deny the waiver,	1733
the state superintendent may consider space concerns or	1734
alternative delivery approaches used by the school district.	1735

(D) Nono district shall require any student to attend	1736
kindergarten for more than one-half of the number of clock hours	1737
required each day for grades one through sixtraditional	1738
kindergarten by the minimum standards adopted under division (D)	1739
of section 3301.07 of the Revised Code. Each school district that	1740
operates all-day or extended kindergarten shall accommodate	1741
kindergarten students whose parents or guardians elect to enroll	1742
them for one-half of the minimum number of hours required each	1743
day for grades one through six.	1744

(E)(C) A school district may use space in child day-care	1745
centers licensed under Chapter 5104. of the Revised Code to	1746
provide all-day kindergarten under this section.	1747

Section 2.  That existing sections 3301.07, 3301.16, 3302.05,	1748
3302.07, 3306.01, 3306.02, 3306.05, 3306.06, 3306.07, 3306.08,	1749
3306.09, 3306.091, 3306.10, 3315.18, 3315.19, 3316.06, 3316.16,	1750
3317.018, 3317.024, 3321.01, and 3321.05 and sections 3306.18,	1751
3306.25, 3306.30, 3306.31, 3306.33, 3306.34, 3306.35, 3306.40,	1752
3313.821, 3313.822, 3315.17, 3315.171, and 3318.312 of the Revised	1753
Code are hereby repealed.	1754

Section 3. That Section 265.70.70 of Am. Sub. H.B. 1 of the	1755
128th General Assembly and Section 9 of Sub. H.B. 318 of the 128th	1756
General Assembly are hereby repealed.	1757

Section 4. Sections 1, 2, and 3 of this act take effect July	1758
1, 2011.	1759

Section 5.  Sections 3301.07 and 3317.024 of the Revised Code	1760
are presented in this act as composites of the sections as amended	1761
by both Am. Sub. H.B. 1 and Sub. S.B. 79 of the 128th General	1762
Assembly. The General Assembly, applying the principle stated in	1763
division (B) of section 1.52 of the Revised Code that amendments	1764
are to be harmonized if reasonably capable of simultaneous	1765
operation, finds that the composites are the resulting versions of	1766
the sections in effect prior to the effective date of the sections	1767
as presented in this act.	1768