Sub. H. B. No. 532 As Reported by the Senate Finance Committee

As Reported by the Senate Finance Committee

129th General Assembly

Regular Session

2011-2012

Sub. H. B. No. 532

Representatives Kozlowski, Gonzales

Cosponsors: Representatives Henne, Gardner, Derickson, Adams, J., Bubp, Pillich, Garland, Grossman, Sears, Szollosi, Hottinger, Buchy, Fende, Wachtmann, Lundy, Ruhl, Yuko, Reece, Dovilla, Boose, Conditt, Stebelton, Maag, Young, Goodwin, Johnson, Landis, Butler, Fedor, Hagan, C., Martin, Milkovich, Rosenberger, Amstutz, Adams, R., Anielski, Antonio, Ashford, Baker, Beck, Blair, Blessing, Boyce, Brenner, Budish, DeVitis, Duffey, Gerberry, Hackett, Hall, Hayes, Hill, Huffman, Letson, Lynch, McClain, Murray, Newbold, O'Brien, Okey, Patmon, Phillips, Roegner, Slesnick, Smith, Sprague, Stautberg, Terhar, Thompson, Uecker Speaker Batchelder
Senator Sawyer

A BILL

To amend sections 3313.41, 3313.411, 3354.121, and

5913.11, to enact section 3313.412 of the Revised

Code, and to amend Section 707.10 of Am. Sub. H.B.

487 of the 129th General Assembly to revise the

Ohio Military Medal of Distinction law; to allow

certain community colleges to acquire, construct,

and maintain housing and dining facilities; to

expand the areas for which a municipal corporation

in Stark County may use up to 5% of its water and

sewer funds for sewage or water system extensions

to include areas within a joint economic

development district and areas within the

municipal corporation's boundaries; to temporarily

permit a school district to offer highest priority

to purchase an athletic field to the current

leaseholder; to permit a school district to sell

or lease real property directly to a STEM school

in certain circumstances; and to make an

appropriation.

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

Section 1. That sections 3313.41, 3313.411, 3354.121, and	20
5913.11 be amended and section 3313.412 of the Revised Code be	21
enacted to read as follows:	22

Sec. 3313.41. (A) Except as provided in divisions (C), (D),	23
(F), and (G) of this section and in section 3313.412 of the	24
Revised Code, when a board of education decides to dispose of real	25
or personal property that it owns in its corporate capacity and	26
that exceeds in value ten thousand dollars, it shall sell the	27
property at public auction, after giving at least thirty days'	28
notice of the auction by publication in a newspaper of general	29
circulation in the school district, by publication as provided in	30
section 7.16 of the Revised Code, or by posting notices in five of	31
the most public places in the school district in which the	32
property, if it is real property, is situated, or, if it is	33
personal property, in the school district of the board of	34
education that owns the property. The board may offer real	35
property for sale as an entire tract or in parcels.	36

(B) When the board of education has offered real or personal	37
property for sale at public auction at least once pursuant to	38
division (A) of this section, and the property has not been sold,	39
the board may sell it at a private sale. Regardless of how it was	40
offered at public auction, at a private sale, the board shall, as	41
it considers best, sell real property as an entire tract or in	42
parcels, and personal property in a single lot or in several lots.	43

(C) If a board of education decides to dispose of real or	44
personal property that it owns in its corporate capacity and that	45
exceeds in value ten thousand dollars, it may sell the property to	46
the adjutant general; to any subdivision or taxing authority as	47
respectively defined in section 5705.01 of the Revised Code,	48
township park district, board of park commissioners established	49
under Chapter 755. of the Revised Code, or park district	50
established under Chapter 1545. of the Revised Code; to a wholly	51
or partially tax-supported university, university branch, or	52
college; to a nonprofit institution of higher education that has a	53
certificate of authorization under Chapter 1713. of the Revised	54
Code; to the governing authority of a chartered nonpublic school;	55
or to the board of trustees of a school district library, upon	56
such terms as are agreed upon. The sale of real or personal	57
property to the board of trustees of a school district library is	58
limited, in the case of real property, to a school district	59
library within whose boundaries the real property is situated, or,	60
in the case of personal property, to a school district library	61
whose boundaries lie in whole or in part within the school	62
district of the selling board of education.	63

(D) When a board of education decides to trade as a part or	64
an entire consideration, an item of personal property on the	65
purchase price of an item of similar personal property, it may	66
trade the same upon such terms as are agreed upon by the parties	67
to the trade.	68

(E) The president and the treasurer of the board of education	69
shall execute and deliver deeds or other necessary instruments of	70
conveyance to complete any sale or trade under this section.	71

(F) When a board of education has identified a parcel of real	72
property that it determines is needed for school purposes, the	73
board may, upon a majority vote of the members of the board,	74
acquire that property by exchanging real property that the board	75
owns in its corporate capacity for the identified real property or	76
by using real property that the board owns in its corporate	77
capacity as part or an entire consideration for the purchase price	78
of the identified real property. Any exchange or acquisition made	79
pursuant to this division shall be made by a conveyance executed	80
by the president and the treasurer of the board.	81

(G) ~~When~~Except as provided in section 3313.412 of the	82
Revised Code, when a school district board of education decides to	83
dispose of real property, prior to disposing of that property	84
under divisions (A) to (F) of this section, it shall first offer	85
that property for sale to the governing authorities of the	86
start-up community schools established under Chapter 3314. of the	87
Revised Code, and the board of trustees of any college-preparatory	88
boarding school established under Chapter 3328. of the Revised	89
Code, that are located within the territory of the school	90
district. The district board shall offer the property at a price	91
that is not higher than the appraised fair market value of that	92
property as determined in an appraisal of the property that is not	93
more than one year old. If more than one community school	94
governing authority or college-preparatory boarding school board	95
of trustees accepts the offer made by the school district board,	96
the board shall sell the property to the governing authority or	97
board that accepted the offer first in time. If no community	98
school governing authority or college-preparatory boarding school	99
board of trustees accepts the offer within sixty days after the	100
offer is made by the school district board, the board may dispose	101
of the property in the applicable manner prescribed under	102
divisions (A) to (F) of this section.	103

(H) When a school district board of education has property	104
that the board, by resolution, finds is not needed for school	105
district use, is obsolete, or is unfit for the use for which it	106
was acquired, the board may donate that property in accordance	107
with this division if the fair market value of the property is, in	108
the opinion of the board, two thousand five hundred dollars or	109
less.	110

The property may be donated to an eligible nonprofit	111
organization that is located in this state and is exempt from	112
federal income taxation pursuant to 26 U.S.C. 501(a) and (c)(3).	113
Before donating any property under this division, the board shall	114
adopt a resolution expressing its intent to make unneeded,	115
obsolete, or unfit-for-use school district property available to	116
these organizations. The resolution shall include guidelines and	117
procedures the board considers to be necessary to implement the	118
donation program and shall indicate whether the school district	119
will conduct the donation program or the board will contract with	120
a representative to conduct it. If a representative is known when	121
the resolution is adopted, the resolution shall provide contact	122
information such as the representative's name, address, and	123
telephone number.	124

The resolution shall include within its procedures a	125
requirement that any nonprofit organization desiring to obtain	126
donated property under this division shall submit a written notice	127
to the board or its representative. The written notice shall	128
include evidence that the organization is a nonprofit organization	129
that is located in this state and is exempt from federal income	130
taxation pursuant to 26 U.S.C. 501(a) and (c)(3); a description of	131
the organization's primary purpose; a description of the type or	132
types of property the organization needs; and the name, address,	133
and telephone number of a person designated by the organization's	134
governing board to receive donated property and to serve as its	135
agent.	136

After adoption of the resolution, the board shall publish, in	137
a newspaper of general circulation in the school district or as	138
provided in section 7.16 of the Revised Code, notice of its intent	139
to donate unneeded, obsolete, or unfit-for-use school district	140
property to eligible nonprofit organizations. The notice shall	141
include a summary of the information provided in the resolution	142
and shall be published twice. The second notice shall be published	143
not less than ten nor more than twenty days after the previous	144
notice. A similar notice also shall be posted continually in the	145
board's office. If the school district maintains a web site on the	146
internet, the notice shall be posted continually at that web site.	147

The board or its representatives shall maintain a list of all	148
nonprofit organizations that notify the board or its	149
representative of their desire to obtain donated property under	150
this division and that the board or its representative determines	151
to be eligible, in accordance with the requirements set forth in	152
this section and in the donation program's guidelines and	153
procedures, to receive donated property.	154

The board or its representative also shall maintain a list of	155
all school district property the board finds to be unneeded,	156
obsolete, or unfit for use and to be available for donation under	157
this division. The list shall be posted continually in a	158
conspicuous location in the board's office, and, if the school	159
district maintains a web site on the internet, the list shall be	160
posted continually at that web site. An item of property on the	161
list shall be donated to the eligible nonprofit organization that	162
first declares to the board or its representative its desire to	163
obtain the item unless the board previously has established, by	164
resolution, a list of eligible nonprofit organizations that shall	165
be given priority with respect to the item's donation. Priority	166
may be given on the basis that the purposes of a nonprofit	167
organization have a direct relationship to specific school	168
district purposes of programs provided or administered by the	169
board. A resolution giving priority to certain nonprofit	170
organizations with respect to the donation of an item of property	171
shall specify the reasons why the organizations are given that	172
priority.	173

Members of the board shall consult with the Ohio ethics	174
commission, and comply with Chapters 102. and 2921. of the Revised	175
Code, with respect to any donation under this division to a	176
nonprofit organization of which a board member, any member of a	177
board member's family, or any business associate of a board member	178
is a trustee, officer, board member, or employee.	179

Sec. 3313.411. (A) As used in this section:

180

(1) "College-preparatory boarding school" means a	181
college-preparatory boarding school established under Chapter	182
3328. of the Revised Code.	183

(2) "Community school" means a community school established	184
under Chapter 3314. of the Revised Code.	185

(3) "Unused school facilities" means any real property that	186
has been used by a school district for school operations,	187
including, but not limited to, academic instruction or	188
administration, since July 1, 1998, but has not been used in that	189
capacity for two years.	190

(B)(1) OnExcept as provided in section 3313.412 of the	191
Revised Code, on and after June 30, 2011, any school district	192
board of education shall offer any unused school facilities it	193
owns in its corporate capacity for lease or sale to the governing	194
authorities of community schools, and the board of trustees of any	195
college-preparatory boarding school, that are located within the	196
territory of the district.	197

(2) At the same time that a district board makes the offer	198
required under division (B)(1) of this section, the board also	199
may, but shall not be required to, offer that property for sale or	200
lease to the governing authorities of community schools with	201
plans, stipulated in their contracts entered into under section	202
3314.03 of the Revised Code, either to relocate their operations	203
to the territory of the district or to add facilities, as	204
authorized by division (B)(3) or (4) of section 3314.05 of the	205
Revised Code, to be located within the territory of the district.	206

(C)(1) If, not later than sixty days after the district board	207
makes the offer, only one qualified party offered the property	208
under division (B) of this section notifies the district treasurer	209
in writing of the intention to purchase the property, the district	210
board shall sell the property to that party for the appraised fair	211
market value of the property as determined in an appraisal of the	212
property that is not more than one year old.	213

(2) If, not later than sixty days after the district board	214
makes the offer, more than one qualified party offered the	215
property under division (B) of this section notifies the district	216
treasurer in writing of the intention to purchase the property,	217
the board shall conduct a public auction in the manner required	218
for auctions of district property under division (A) of section	219
3313.41 of the Revised Code. Only the parties offered the property	220
under division (B) of this section that notify the district	221
treasurer of the intention to purchase the property are eligible	222
to bid at the auction. The district board is not obligated to	223
accept any bid for the property that is lower than the appraised	224
fair market value of the property as determined in an appraisal	225
that is not more than one year old.	226

(3) If more than one qualified party offered the property	227
under division (B) of this section notifies the district treasurer	228
in writing of the intention to lease the property, the district	229
board shall conduct a lottery to select from among those parties	230
the one qualified party to which the district board shall lease	231
the property.	232

(4) The lease price offered by a district board to a	233
community school or college-preparatory boarding school under this	234
section shall not be higher than the fair market value for such a	235
leasehold as determined in an appraisal that is not more than one	236
year old.	237

(5) If no qualified party offered the property under division	238
(B) of this section accepts the offer to lease or buy the property	239
within sixty days after the offer is made, the district board may	240
offer the property to any other entity in accordance with	241
divisions (A) to (F) of section 3313.41 of the Revised Code.	242

(D) Notwithstanding division (B) of this section, a school	243
district board may renew any agreement it originally entered into	244
prior to June 30, 2011, to lease real property to an entity other	245
than a community school or college-preparatory boarding school.	246
Nothing in this section shall affect the leasehold arrangements	247
between the district board and that other entity.	248

Sec. 3313.412. A school district board of education may	249
offer for sale or lease any parcel of real property directly to	250
the governing body of a STEM school established under Chapter	251
3326. of the Revised Code without offering that property under	252
divisions (A) and (G) of section 3313.41 or under section 3313.411	253
of the Revised Code, if all of the following apply:	254

(A) The district board offered that real property for sale	255
under division (G) of section 3313.41 of the Revised Code prior to	256
June 30, 2011.	257

(B) No entity accepted the offer described in division (A) of	258
this section.	259

(C) The district board still owns that real property and has	260
decided again to dispose of it by sale or lease.	261

(D) The STEM school, to which the real property is sold or	262
leased under this section, was approved for operation under	263
section 3326.03 of the Revised Code between October 1 and December	264
31, 2012.	265

Sec. 3354.121. (A)(1) Each community college district may	266
acquire, by purchase, lease, lease-purchase, lease with option to	267
purchase, or otherwise, construct, equip, furnish, reconstruct,	268
alter, enlarge, remodel, renovate, rehabilitate, improve,	269
maintain, repair, and operate, and lease to or from others,	270
auxiliary facilities or education facilities, except housing and	271
dining facilities, and may pay for the facilities out of available	272
receipts of such district. To pay all or part of the costs of	273
auxiliary facilities or education facilities, except housing and	274
dining facilities, and any combination of them, and to refund	275
obligations previously issued for such purpose, each community	276
college district may issue obligations in the manner provided by	277
and subject to the applicable provisions of section 3345.12 of the	278
Revised Code.	279

(2) A community college district that is located within one	280
mile of a four-year private, nonprofit institution of higher	281
education in the state may acquire, by purchase, lease,	282
lease-purchase, lease with option to purchase, or otherwise,	283
construct, equip, furnish, reconstruct, alter, enlarge, remodel,	284
renovate, rehabilitate, improve, maintain, repair, and operate,	285
and lease to or from others, housing and dining facilities, and	286
may pay for the facilities out of the available receipts of such	287
district. To pay all or part of the costs of the housing and	288
dining facilities, and to refund obligations previously issued for	289
such purpose, the community college district may issue obligations	290
in the manner provided by and subject to the applicable provisions	291
of section 3345.12 of the Revised Code.	292

(B) Except as otherwise provided in this section, the	293
definitions set forth in section 3345.12 of the Revised Code apply	294
to this section.	295

(C) Fee variations provided for in division (G) of section	296
3354.09 of the Revised Code need not be applied to fees pledged to	297
secure obligations.	298

(D) The obligations authorized by this section are not bonded	299
indebtedness of the community college district, shall not	300
constitute general obligations or the pledge of the full faith and	301
credit of such district, and the holders or owners thereof shall	302
have no right to require the board to levy or collect any taxes	303
for the payment of bond service charges, but they shall have the	304
right to payment thereof solely from the available receipts and	305
funds pledged for such payment as authorized by section 3345.12 of	306
the Revised Code and this section.	307

The bond proceedings may provide the method whereby the	308
general administrative overhead expense of the district shall be	309
allocated among the several operations and facilities of the	310
district for purposes of determining any operating and maintenance	311
expenses payable from the pledged available receipts prior to the	312
provision for payment of bond service charges, and for other	313
purposes of the bond proceedings.	314

(E) The powers granted in this section are in addition to any	315
other powers at any time granted by the Constitution and laws of	316
the state, and not in derogation thereof or restrictions thereon.	317

Sec. 5913.11. (A) There is hereby created the Ohio military	318
medal of distinction. The adjutant general shall design the medal	319
and coordinate an eligibility establishment program. An individual	320
is eligible for the medal if the individual was killed ~~in the line~~	321
~~of duty~~on or after September 10, 2001, while doing one of the	322
following:	323

(1) Engaging in an action against an enemy of the United	324
States;	325

(2) Engaging in military operations involving conflict with	326
an opposing foreign force;	327

(3) Serving with friendly foreign forces engaged in an armed	328
conflict against an opposing armed force in which the United	329
States is not a belligerent party; or	330

(4) Serving in a combat zone designated by presidential	331
order.	332

(B) To receive the Ohio military medal of distinction, an	333
individual shall be at least one of the following at the time the	334
member was killed ~~in the line of duty~~:	335

(1) ~~An Ohio~~A national guard member who is a resident of this	336
state;	337

(2) An Ohio national guard member;

338

(3) A United States military reserves member who is a	339
resident of this state;	340

~~(3)~~(4) A United States armed forces member who is ~~either~~ a	341
resident of this state ~~or stationed in this state by a United~~	342
~~States department of defense order~~.	343

(C)(1) At least once per year, ~~both houses of the general~~	344
~~assembly~~the adjutant general shall ~~obtain~~provide a list of	345
eligible medal recipients ~~from~~to the ~~adjutant general and meet in~~	346
~~joint convention to~~department of veterans services and the	347
governor. The adjutant general shall prepare a medal for each	348
eligible medal recipient. The medal shall be presented to the	349
recipient's primary next of kin, as designated by the recipient.	350
If the recipient has not designated a primary next of kin or if	351
the designated primary next of kin is deceased, the primary next	352
of kin shall be determined under the rules of the United States	353
department of defense.	354

(2) The governor and the general assembly annually shall hold	355
a joint ceremony to recognize the medal recipients for the prior	356
year and to present each medal to the recipient's primary next of	357
kin, as determined under division (C)(1) of this section.	358

(D)(1) If a parent of the medal recipient is the primary next	359
of kin, as determined under division (C)(1) of this section, and	360
the medal recipient's parents are not married to each other or are	361
legally separated from each other, the medal recipient's other	362
living parent may request a duplicate medal at no cost.	363

If neither of the medal recipient's parents is the primary	364
next of kin, as determined under division (C)(1) of this section,	365
the living parents of the medal recipient jointly may request a	366
duplicate medal at no cost, except that if the parents of the	367
medal recipient are not married to each other or are legally	368
separated from each other, each living parent may request a	369
duplicate medal at no cost.	370

If the medal recipient's spouse is not the primary next of	371
kin, the spouse may request a duplicate medal at no cost.	372

The adjutant general shall prescribe a form by which a parent	373
or spouse may request a duplicate medal under division (D)(1) of	374
this section.	375

(2) A surviving spouse, a natural or adopted child who is at	376
least eighteen years of age, a parent, a brother or sister,	377
whether of the whole or the half blood, who is at least eighteen	378
years of age, an aunt or uncle who is at least eighteen years of	379
age, or a grandparent of a medal recipient may apply to the	380
adjutant general, on a form prescribed by the adjutant general, to	381
receive a duplicate medal. The applicant shall include with the	382
application a fee in an amount to be determined by the adjutant	383
general. The adjutant general shall set the fee at an amount no	384
greater than the cost of producing the duplicate medal.	385

(E) There is hereby created in the state treasury the	386
military medal of distinction fund. The fund shall consist of all	387
fees collected from applicants for duplicate medals as well as	388
appropriations made by the general assembly for purposes of the	389
Ohio military medal of distinction program. The fund shall be used	390
to pay for the production of medals. Investment earnings of the	391
fund shall be credited to the fund.	392

Section 2. That existing sections 3313.41, 3313.411,	393
3354.121, and 5913.11 of the Revised Code are hereby repealed.	394

Section 3. All items in this section are hereby appropriated	395
as designated out of any moneys in the state treasury to the	396
credit of the State Special Revenue Fund Group. For all	397
appropriations made in this act, those in the first column are for	398
fiscal year 2012 and those in the second column are for fiscal	399
year 2013. The appropriations made in this act are in addition to	400
any other appropriations made for the FY 2012-FY 2013 biennium.	401

Appropriations

ADJ ADJUTANT GENERAL	402

State Special Revenue Fund Group	403

5LY0	745626	Military Medal of Distinction	$	$	2,500	404
TOTAL SSR State Special Revenue Fund Group			$	$	2,500	405
TOTAL ALL BUDGET FUND GROUPS			$	$	2,500	406

MILITARY MEDAL OF DISTINCTION

407

On the effective date of this act, or as soon as possible	408
thereafter, the Director of Budget and Management shall transfer	409
$2,500 cash from the General Revenue Fund to the Military Medal of	410
Distinction Fund (Fund 5LY0). The amount transferred shall be used	411
by the Adjutant General for the purposes described in section	412
5913.11 of the Revised Code.	413

Section 4. Within the limits set forth in this act, the	414
Director of Budget and Management shall establish accounts	415
indicating the source and amount of funds for each appropriation	416
made in this act, and shall determine the form and manner in which	417
appropriation accounts shall be maintained. Expenditures from	418
appropriations contained in this act shall be accounted for as	419
though made in Am. Sub. H.B. 153 of the 129th General Assembly.	420

The appropriations made in this act are subject to all	421
provisions of Am. Sub. H.B. 153 of the 129th General Assembly that	422
are generally applicable to such appropriations.	423

Section 5. That Section 707.10 of Am. Sub. H.B. 487 of the	424
129th General Assembly be amended to read as follows:	425

Sec. 707.10. For fiscal years 2013 and 2014, the legislative	426
authority of a municipal corporation in a county, with a	427
population between three hundred seventy-five thousand and four	428
hundred thousand according to the most recent federal decennial	429
census, may conduct a pilot program whereby the legislative	430
authority may use up to five per cent of the aggregate amount of	431
money deposited in the municipal corporation's sewer fund and up	432
to five per cent of the aggregate amount of money deposited in a	433
fund created by the municipal corporation for water-works for the	434
purpose of extending the municipal corporation's water or sewerage	435
system, as applicable, if both of the following apply:	436

(A) The water or sewerage system is being extended to areas	437
for economic development purposes.	438

(B) The areas into which the water or sewerage system is	439
being extended are ~~the~~one of the following:	440

(1) The subject of a cooperative economic development	441
agreement entered into by the municipal corporation under section	442
701.07 of the Revised Code;	443

(2) Within a joint economic development district created	444
under sections 715.72 to 715.81 of the Revised Code for which the	445
municipal corporation is a contracting party;	446

(3) Within the boundaries of the municipal corporation.

447

With regard to either fund, the legislative authority shall	448
not exceed the five per cent limit established in this section.	449

Section 6. That existing Section 707.10 of Am. Sub. H.B. 487	450
of the 129th General Assembly is hereby repealed.	451

Section 7. (A) This section applies only to a city school	452
district that currently leases an athletic field to the governing	453
authority of a chartered nonpublic school.	454

(B) Notwithstanding section 3313.41 of the Revised Code, the	455
board of education of a school district to which this section	456
applies may offer for sale an athletic field that it owns in its	457
corporate capacity to the chartered nonpublic school that is the	458
current leaseholder of that property prior to offering that	459
property for sale under the provisions of section 3313.41 of the	460
Revised Code.	461

462