As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 190

Senator Schiavoni 

Cosponsors: Senators Cafaro, Gentile, Sawyer, Skindell, Tavares, Turner 

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A BILL

To amend sections 117.11, 149.351, 3313.6411,

1

3314.011, 3314.02, 3314.03, and 3314.06 and to

2

enact sections 117.102, 149.46, 3313.6412,

3

3314.019, 3314.025, 3314.031, 3314.062, 3314.075,

4

3314.085, 3314.088, 3314.103, 3314.181, 3314.352,

5

and 3314.45 of the Revised Code to revise the laws

6

regarding the operation of community schools and,

7

for each of fiscal years 2014 and 2015, to limit a

8

community school's or a STEM school's gain in

9

aggregate state funding over the previous fiscal

10

year.

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

Section 1. That sections 117.11, 149.351, 3313.6411,	12
3314.011, 3314.02, 3314.03, and 3314.06 be amended and sections	13
117.102, 149.46, 3313.6412, 3314.019, 3314.025, 3314.031,	14
3314.062, 3314.075, 3314.085, 3314.088, 3314.103, 3314.181,	15
3314.352, and 3314.45 of the Revised Code be enacted to read as	16
follows:	17

Sec. 117.102.  (A) As used in this section:

18

(1) "Community school" means a school established under	19
Chapter 3314. of the Revised Code.	20

(2) "Operator" has the same meaning as in section 3314.02 of	21
the Revised Code.	22

(B) The auditor of state annually shall audit each community	23
school operator and each community school sponsor described in	24
division (C)(1) of section 3314.02 or section 3314.021 or 3314.027	25
of the Revised Code. In the case of a nonpublic operator or	26
sponsor, the audit shall cover only those accounts, reports,	27
records, and files regarding the operator's or sponsor's receipt	28
or expenditure of public funds relating to the operation or	29
sponsorship of a community school.	30

Sec. 117.11.  (A) Except as otherwise provided in this	31
division and in sections 117.102, 117.112, 117.113, and 117.114 of	32
the Revised Code, the auditor of state shall audit each public	33
office at least once every two fiscal years. The auditor of state	34
shall audit a public office each fiscal year if that public office	35
is required to be audited on an annual basis pursuant to "The	36
Single Audit Act of 1984," 98 Stat. 2327, 31 U.S.C.A. 7501 et	37
seq., as amended. In the annual or biennial audit, inquiry shall	38
be made into the methods, accuracy, and legality of the accounts,	39
financial reports, records, files, and reports of the office,	40
whether the laws, rules, ordinances, and orders pertaining to the	41
office have been observed, and whether the requirements and rules	42
of the auditor of state have been complied with. Except as	43
otherwise provided in this division or where auditing standards or	44
procedures dictate otherwise, each audit shall cover at least one	45
fiscal year. If a public office is audited only once every two	46
fiscal years, the audit shall cover both fiscal years.	47

(B) In addition to the annual or biennial audit provided for	48
in division (A) of this section or in section 117.114 of the	49
Revised Code, the auditor of state may conduct an audit of a	50
public office at any time when so requested by the public office	51
or upon the auditor of state's own initiative if the auditor of	52
state has reasonable cause to believe that an additional audit is	53
in the public interest.	54

(C)(1) The auditor of state shall identify any public office	55
in which the auditor of state will be unable to conduct an audit	56
at least once every two fiscal years as required by division (A)	57
of this section and shall provide immediate written notice to the	58
clerk of the legislative authority or governing board of the	59
public office so identified. Within six months of the receipt of	60
such notice, the legislative authority or governing board may	61
engage an independent certified public accountant to conduct an	62
audit pursuant to section 117.12 of the Revised Code.	63

(2) When the chief fiscal officer of a public office notifies	64
the auditor of state that an audit is required at a time prior to	65
the next regularly scheduled audit by the auditor of state, the	66
auditor of state shall either cause an earlier audit to be made by	67
the auditor of state or authorize the legislative authority or	68
governing board of the public office to engage an independent	69
certified public accountant to conduct the required audit. The	70
scope of the audit shall be as authorized by the auditor of state.	71

(3) The auditor of state shall approve the scope of an audit	72
under division (C)(1) or (2) of this section as set forth in the	73
contract for the proposed audit before the contract is executed on	74
behalf of the public office that is to be audited. The independent	75
accountant conducting an audit under division (C)(1) or (2) of	76
this section shall be paid by the public office.	77

(4) The contract for attest services with an independent	78
accountant employed pursuant to this section or section 115.56 of	79
the Revised Code may include binding arbitration provisions,	80
provisions of Chapter 2711. of the Revised Code, or any other	81
alternative dispute resolution procedures to be followed in the	82
event a dispute remains between the state or public office and the	83
independent accountant concerning the terms of or services under	84
the contract, or a breach of the contract, after the	85
administrative provisions of the contract have been exhausted.	86

(D) If a uniform accounting network is established under	87
section 117.101 of the Revised Code, the auditor of state or a	88
certified public accountant employed pursuant to this section or	89
section 115.56 or 117.112 of the Revised Code shall, to the extent	90
practicable, utilize services offered by the network in order to	91
conduct efficient and economical audits of public offices.	92

(E) The auditor of state, in accordance with division (A)(3)	93
of section 9.65 of the Revised Code and this section, may audit an	94
annuity program for volunteer fire fighters established by a	95
political subdivision under section 9.65 of the Revised Code. As	96
used in this section, "volunteer fire fighters" and "political	97
subdivision" have the same meanings as in division (C) of section	98
9.65 of the Revised Code.	99

Sec. 149.351.  (A) All records are the property of the public	100
office concerned and shall not be removed, destroyed, mutilated,	101
transferred, or otherwise damaged or disposed of, in whole or in	102
part, except as provided by law or under the rules adopted by the	103
records commissions provided for under sections 149.38 to 149.42	104
and section 149.46 of the Revised Code or under the records	105
programs established by the boards of trustees of state-supported	106
institutions of higher education under section 149.33 of the	107
Revised Code. Those records shall be delivered by outgoing	108
officials and employees to their successors and shall not be	109
otherwise removed, destroyed, mutilated, or transferred	110
unlawfully.	111

(B) Any person who is aggrieved by the removal, destruction,	112
mutilation, or transfer of, or by other damage to or disposition	113
of a record in violation of division (A) of this section, or by	114
threat of such removal, destruction, mutilation, transfer, or	115
other damage to or disposition of such a record, may commence	116
either or both of the following in the court of common pleas of	117
the county in which division (A) of this section allegedly was	118
violated or is threatened to be violated:	119

(1) A civil action for injunctive relief to compel compliance	120
with division (A) of this section, and to obtain an award of the	121
reasonable attorney's fees incurred by the person in the civil	122
action;	123

(2) A civil action to recover a forfeiture in the amount of	124
one thousand dollars for each violation, but not to exceed a	125
cumulative total of ten thousand dollars, regardless of the number	126
of violations, and to obtain an award of the reasonable attorney's	127
fees incurred by the person in the civil action not to exceed the	128
forfeiture amount recovered.	129

(C)(1) A person is not aggrieved by a violation of division	130
(A) of this section if clear and convincing evidence shows that	131
the request for a record was contrived as a pretext to create	132
potential liability under this section. The commencement of a	133
civil action under division (B) of this section waives any right	134
under this chapter to decline to divulge the purpose for	135
requesting the record, but only to the extent needed to evaluate	136
whether the request was contrived as a pretext to create potential	137
liability under this section.	138

(2) In a civil action under division (B) of this section, if	139
clear and convincing evidence shows that the request for a record	140
was a pretext to create potential liability under this section,	141
the court may award reasonable attorney's fees to any defendant or	142
defendants in the action.	143

(D) Once a person recovers a forfeiture in a civil action	144
commenced under division (B)(2) of this section, no other person	145
may recover a forfeiture under that division for a violation of	146
division (A) of this section involving the same record, regardless	147
of the number of persons aggrieved by a violation of division (A)	148
of this section or the number of civil actions commenced under	149
this section.	150

(E) A civil action for injunctive relief under division	151
(B)(1) of this section or a civil action to recover a forfeiture	152
under division (B)(2) of this section shall be commenced within	153
five years after the day in which division (A) of this section was	154
allegedly violated or was threatened to be violated.	155

Sec. 149.46. Each community school, established under Chapter	156
3314. of the Revised Code, shall have a school records commission.	157
The commission shall meet at least once every twelve months. The	158
function of the commission shall be to review applications for	159
one-time disposal of obsolete records and schedules of records	160
retention and disposition submitted by any employee of the school.	161
The commission may dispose of records pursuant to the procedure	162
outlined in section 149.381 of the Revised Code. The commission,	163
at any time, may review any schedule it has previously approved	164
and, for good cause shown, may revise that schedule under the	165
procedure outlined in that section.	166

Sec. 3313.6411.  (A) As used in this section and section	167
3313.6412 of the Revised Code, "parent" has the same meaning as in	168
section 3313.98 of the Revised Code.	169

(B) When a student enrolls in a school operated by a city,	170
exempted village, or local school district, a school official with	171
responsibility for admissions shall provide the student's parent,	172
during the admissions process, with a copy of the most recent	173
report card issued under section 3302.03 of the Revised Code.	174

Sec. 3313.6412. When the parent of a student enrolled in a	175
school operated by a city, exempted village, or local school	176
district notifies the school of the parent's intent to withdraw	177
the student from the school, a school official with responsibility	178
for admissions shall do the following:	179

(A) Determine if the parent intends to enroll the student in	180
a community school established under Chapter 3314. of the Revised	181
Code and, if so, the name of that school;	182

(B) If the parent intends to enroll the student in a	183
community school, provide the parent with a copy of the most	184
recent report card issued under section 3302.03 of the Revised	185
Code for the school in which the student is currently enrolled and	186
for the community school in which the parent intends to enroll the	187
student to enable the parent to compare the academic performance	188
of the two schools.	189

Sec. 3314.011.  Every community school established under this	190
chapter shall have a designated fiscal officer. The auditor of	191
state may require by rule that the fiscal officer of any community	192
school, before entering upon duties as fiscal officer of the	193
school, execute a bond in an amount and with surety to be approved	194
by the governing authority of the school, payable to the state,	195
conditioned for the faithful performance of all the official	196
duties required of the fiscal officer. Any such bond shall be	197
deposited with the governing authority of the school, and a copy	198
thereof, certified by the governing authority, shall be filed with	199
the county auditor.	200

Prior to assuming the duties of fiscal officer, the fiscal	201
officer designated under this section shall be licensed under	202
section 3301.074 of the Revised Code. Any person serving as a	203
fiscal officer of a community school on the effective date of this	204
amendmentMarch 22, 2013, who is not licensed as a treasurer shall	205
be permitted to serve as a fiscal officer for not more than one	206
year following the effective date of this amendmentuntil March	207
22, 2014. Beginning on that date and thereafterOn and after March	208
22, 2014, no community school shall permit any individual to serve	209
as a fiscal officer without a license as required by this section.	210

No moneys of a community school shall be paid out except on a	211
check signed by the fiscal officer. If the fiscal officer is	212
incapacitated in such a manner that the fiscal officer is unable	213
to sign checks, the governing authority may appoint an officer of	214
the school to sign checks in the capacity of the fiscal officer.	215
Payroll disbursements constitute an exception to this requirement	216
if otherwise provided by law.	217

Sec. 3314.019. Beginning with the report cards, issued under	218
sections 3302.03 and 3314.012 of the Revised Code, for the	219
2014-2015 school year, a community school that receives an overall	220
letter grade of "D" or "F" on its annual report card shall not	221
merge or combine with another community school until the community	222
school receives an overall grade of "C" or better on a subsequent	223
report card.	224

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

225

(1) "Sponsor" means the board of education of a school	226
district or the governing board of an educational service center	227
that agrees to the conversion of all or part of a school or	228
building under division (B) of this section, or an entity listed	229
in division (C)(1) of this section, which either has been approved	230
by the department of education to sponsor community schools or is	231
exempted by section 3314.021 or 3314.027 of the Revised Code from	232
obtaining approval, and with which the governing authority of a	233
community school enters into a contract under section 3314.03 of	234
the Revised Code.	235

(2) "Pilot project area" means the school districts included	236
in the territory of the former community school pilot project	237
established by former Section 50.52 of Am. Sub. H.B. No. 215 of	238
the 122nd general assembly.	239

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

240

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

241

(b) A school district that meets one of the following	242
conditions:	243

(i) On March 22, 2013, the district was in a state of	244
academic emergency or in a state of academic watch under section	245
3302.03 of the Revised Code, as that section existed prior to	246
March 22, 2013;	247

(ii) For two of the 2012-2013, 2013-2014, and 2014-2015	248
school years, the district received a grade of "D" or "F" for the	249
performance index score and a grade of "F" for the value-added	250
progress dimension under section 3302.03 of the Revised Code;	251

(iii) For the 2015-2016 school year and for any school year	252
thereafter, the district has received an overall grade of "D" or	253
"F" under division (C)(3) of section 3302.03 of the Revised Code,	254
or, for at least two of the three most recent school years, the	255
district received a grade of "F" for the value-added progress	256
dimension under division (C)(1)(e) of that section.	257

(c) A big eight school district;

258

(d) A school district ranked in the lowest five per cent of	259
school districts according to performance index score under	260
section 3302.21 of the Revised Code.	261

(4) "Big eight school district" means a school district that	262
for fiscal year 1997 had both of the following:	263

(a) A percentage of children residing in the district and	264
participating in the predecessor of Ohio works first greater than	265
thirty per cent, as reported pursuant to section 3317.10 of the	266
Revised Code;	267

(b) An average daily membership greater than twelve thousand,	268
as reported pursuant to former division (A) of section 3317.03 of	269
the Revised Code.	270

(5) "New start-up school" means a community school other than	271
one created by converting all or part of an existing public school	272
or educational service center building, as designated in the	273
school's contract pursuant to division (A)(17) of section 3314.03	274
of the Revised Code.	275

(6) "Urban school district" means one of the state's	276
twenty-one urban school districts as defined in division (O) of	277
section 3317.02 of the Revised Code as that section existed prior	278
to July 1, 1998.	279

(7) "Internet- or computer-based community school" means a	280
community school established under this chapter in which the	281
enrolled students work primarily from their residences on	282
assignments in nonclassroom-based learning opportunities provided	283
via an internet- or other computer-based instructional method that	284
does not rely on regular classroom instruction or via	285
comprehensive instructional methods that include internet-based,	286
other computer-based, and noncomputer-based learning	287
opportunities.	288

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

289

(a) An individual or organization that manages the daily	290
operations of a community school pursuant to a contract between	291
the operator and the school's governing authority;	292

(b) A nonprofit organization that provides programmatic	293
oversight and support to a community school under a contract with	294
the school's governing authority and that retains the right to	295
terminate its affiliation with the school if the school fails to	296
meet the organization's quality standards.	297

(B) Any person or group of individuals may initially propose	298
under this division the conversion of all or a portion of a public	299
school or a building operated by an educational service center to	300
a community school. The proposal shall be made to the board of	301
education of the city, local, exempted village, or joint	302
vocational school district in which the public school is proposed	303
to be converted or, in the case of the conversion of a building	304
operated by an educational service center, to the governing board	305
of the service center. Upon receipt of a proposal, a board may	306
enter into a preliminary agreement with the person or group	307
proposing the conversion of the public school or service center	308
building, indicating the intention of the board to support the	309
conversion to a community school. A proposing person or group that	310
has a preliminary agreement under this division may proceed to	311
finalize plans for the school, establish a governing authority for	312
the school, and negotiate a contract with the board. Provided the	313
proposing person or group adheres to the preliminary agreement and	314
all provisions of this chapter, the board shall negotiate in good	315
faith to enter into a contract in accordance with section 3314.03	316
of the Revised Code and division (C) of this section.	317

(C)(1) Any person or group of individuals may propose under	318
this division the establishment of a new start-up school to be	319
located in a challenged school district. The proposal may be made	320
to any of the following entities:	321

(a) The board of education of the district in which the	322
school is proposed to be located;	323

(b) The board of education of any joint vocational school	324
district with territory in the county in which is located the	325
majority of the territory of the district in which the school is	326
proposed to be located;	327

(c) The board of education of any other city, local, or	328
exempted village school district having territory in the same	329
county where the district in which the school is proposed to be	330
located has the major portion of its territory;	331

(d) The governing board of any educational service center, as	332
long as the proposed school will be located in a county within the	333
territory of the service center or in a county contiguous to such	334
county. However, the governing board of an educational service	335
center may sponsor a new start-up school in any challenged school	336
district in the state if all of the following are satisfied:	337

(i) If applicable, it satisfies the requirements of division	338
(E) of section 3311.86 of the Revised Code;	339

(ii) It is approved to do so by the department;

340

(iii) It enters into an agreement with the department under	341
section 3314.015 of the Revised Code.	342

(e) A sponsoring authority designated by the board of	343
trustees of any of the thirteen state universities listed in	344
section 3345.011 of the Revised Code or the board of trustees	345
itself as long as a mission of the proposed school to be specified	346
in the contract under division (A)(2) of section 3314.03 of the	347
Revised Code and as approved by the department under division	348
(B)(2) of section 3314.015 of the Revised Code will be the	349
practical demonstration of teaching methods, educational	350
technology, or other teaching practices that are included in the	351
curriculum of the university's teacher preparation program	352
approved by the state board of education;	353

(f) Any qualified tax-exempt entity under section 501(c)(3)	354
of the Internal Revenue Code as long as all of the following	355
conditions are satisfied:	356

(i) The entity has been in operation for at least five years	357
prior to applying to be a community school sponsor.	358

(ii) The entity has assets of at least five hundred thousand	359
dollars and a demonstrated record of financial responsibility.	360

(iii) The department has determined that the entity is an	361
education-oriented entity under division (B)(3) of section	362
3314.015 of the Revised Code and the entity has a demonstrated	363
record of successful implementation of educational programs.	364

(iv) The entity is not a community school.

365

(g) The mayor of a city in which the majority of the	366
territory of a school district to which section 3311.60 of the	367
Revised Code applies is located, regardless of whether that	368
district has created the position of independent auditor as	369
prescribed by that section. The mayor's sponsorship authority	370
under this division is limited to community schools that are	371
located in that school district. Such mayor may sponsor community	372
schools only with the approval of the city council of that city,	373
after establishing standards with which community schools	374
sponsored by the mayor must comply, and after entering into a	375
sponsor agreement with the department as prescribed under section	376
3314.015 of the Revised Code. The mayor shall establish the	377
standards for community schools sponsored by the mayor not later	378
than one hundred eighty days after the effective date of this	379
amendmentJanuary 11, 2014, and shall submit them to the	380
department upon their establishment. The department shall approve	381
the mayor to sponsor community schools in the district, upon	382
receipt of an application by the mayor to do so. Not later than	383
ninety days after the department's approval of the mayor as a	384
community school sponsor, the department shall enter into the	385
sponsor agreement with the mayor.	386

Any entity described in division (C)(1) of this section may	387
enter into a preliminary agreement pursuant to division (C)(2) of	388
this section with the proposing person or group.	389

(2) A preliminary agreement indicates the intention of an	390
entity described in division (C)(1) of this section to sponsor the	391
community school. A proposing person or group that has such a	392
preliminary agreement may proceed to finalize plans for the	393
school, establish a governing authority as described in division	394
(E) of this section for the school, and negotiate a contract with	395
the entity. Provided the proposing person or group adheres to the	396
preliminary agreement and all provisions of this chapter, the	397
entity shall negotiate in good faith to enter into a contract in	398
accordance with section 3314.03 of the Revised Code.	399

(3) A new start-up school that is established in a school	400
district described in either division (A)(3)(b) or (d) of this	401
section may continue in existence once the school district no	402
longer meets the conditions described in either division, provided	403
there is a valid contract between the school and a sponsor.	404

(4) A copy of every preliminary agreement entered into under	405
this division shall be filed with the superintendent of public	406
instruction.	407

(D) A majority vote of the board of a sponsoring entity and a	408
majority vote of the members of the governing authority of a	409
community school shall be required to adopt a contract and convert	410
the public school or educational service center building to a	411
community school or establish the new start-up school. Beginning	412
September 29, 2005, adoption of the contract shall occur not later	413
than the fifteenth day of March, and signing of the contract shall	414
occur not later than the fifteenth day of May, prior to the school	415
year in which the school will open. The governing authority shall	416
notify the department of education when the contract has been	417
signed. Subject to sections 3314.013 and 3314.016 of the Revised	418
Code, an unlimited number of community schools may be established	419
in any school district provided that a contract is entered into	420
for each community school pursuant to this chapter.	421

(E)(1) As used in this division, "immediate relatives" are	422
limited to spouses, children, parents, grandparents, siblings, and	423
in-laws.	424

Each new start-up community school established under this	425
chapter shall be under the direction of a governing authority	426
which shall consist of a board of not less than five individuals.	427

No person shall serve on the governing authority or operate	428
the community school under contract with the governing authority	429
so long as the person owes the state any money or is in a dispute	430
over whether the person owes the state any money concerning the	431
operation of a community school that has closed.	432

(2) No person shall serve on the governing authorities of	433
more than five start-up community schools at the same time.	434

(3) No present or former member, or immediate relative of a	435
present or former member, of the governing authority of any	436
community school established under this chapter shall be an owner,	437
employee, or consultant of any sponsor or operator of a community	438
school, unless at least one year has elapsed since the conclusion	439
of the person's membership.	440

(4) The governing authority of a start-up community school	441
may provide by resolution for the compensation of its members.	442
However, no individual who serves on the governing authority of a	443
start-up community school shall be compensated more than four	444
hundred twenty-five dollars per meeting of that governing	445
authority and no such individual shall be compensated more than a	446
total amount of five thousand dollars per year for all governing	447
authorities upon which the individual serves.	448

(5) No person shall be eligible to the appointment of school	449
physician, school dentist, or school nurse of a community school	450
during the period for which that person serves on the governing	451
authority of that community school.	452

(F)(1) A new start-up school that is established prior to	453
August 15, 2003, in an urban school district that is not also a	454
big-eight school district may continue to operate after that date	455
and the contract between the school's governing authority and the	456
school's sponsor may be renewed, as provided under this chapter,	457
after that date, but no additional new start-up schools may be	458
established in such a district unless the district is a challenged	459
school district as defined in this section as it exists on and	460
after that date.	461

(2) A community school that was established prior to June 29,	462
1999, and is located in a county contiguous to the pilot project	463
area and in a school district that is not a challenged school	464
district may continue to operate after that date, provided the	465
school complies with all provisions of this chapter. The contract	466
between the school's governing authority and the school's sponsor	467
may be renewed, but no additional start-up community school may be	468
established in that district unless the district is a challenged	469
school district.	470

(3) Any educational service center that, on June 30, 2007,	471
sponsors a community school that is not located in a county within	472
the territory of the service center or in a county contiguous to	473
such county may continue to sponsor that community school on and	474
after June 30, 2007, and may renew its contract with the school.	475
However, the educational service center shall not enter into a	476
contract with any additional community school, unless the school	477
is located in a county within the territory of the service center	478
or in a county contiguous to such county, or unless the governing	479
board of the service center has entered into an agreement with the	480
department authorizing the service center to sponsor a community	481
school in any challenged school district in the state.	482

Sec. 3314.025. The governing authority of each community	483
school shall appoint a business advisory council. The council	484
shall advise and provide recommendations to the governing	485
authority on matters specified by the governing authority,	486
including, but not necessarily limited to, the delineation of	487
employment skills and the development of curriculum to instill	488
these skills; changes in the economy and in the job market and the	489
types of employment in which future jobs are most likely to be	490
available; and suggestions for developing a working relationship	491
among local businesses, labor organizations, and educational	492
personnel. Each governing authority shall determine the membership	493
and organization of its council.	494

Sec. 3314.03.  A copy of every contract entered into under	495
this section shall be filed with the superintendent of public	496
instruction. The department of education shall make available on	497
its web site a copy of every approved, executed contract filed	498
with the superintendent under this section.	499

(A) Each contract entered into between a sponsor and the	500
governing authority of a community school shall specify the	501
following:	502

(1) That the school shall be established as either of the	503
following:	504

(a) A nonprofit corporation established under Chapter 1702.	505
of the Revised Code, if established prior to April 8, 2003;	506

(b) A public benefit corporation established under Chapter	507
1702. of the Revised Code, if established after April 8, 2003.	508

(2) The education program of the school, including the	509
school's mission, the characteristics of the students the school	510
is expected to attract, the ages and grades of students, and the	511
focus of the curriculum;	512

(3) The academic goals to be achieved and the method of	513
measurement that will be used to determine progress toward those	514
goals, which shall include the statewide achievement assessments;	515

(4) Performance standards by which the success of the school	516
will be evaluated by the sponsor;	517

(5) The admission standards of section 3314.06 of the Revised	518
Code and, if applicable, section 3314.061 of the Revised Code;	519

(6)(a) Dismissal procedures;

520

(b) A requirement that the governing authority adopt an	521
attendance policy that includes a procedure for automatically	522
withdrawing a student from the school if the student without a	523
legitimate excuse fails to participate in one hundred five	524
consecutive hours of the learning opportunities offered to the	525
student.	526

(7) The ways by which the school will achieve racial and	527
ethnic balance reflective of the community it serves;	528

(8) Requirements for financial audits by the auditor of	529
state. The contract shall require financial records of the school	530
to be maintained in the same manner as are financial records of	531
school districts, pursuant to rules of the auditor of state.	532
Audits shall be conducted in accordance with section 117.10 of the	533
Revised Code.	534

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

535

(10) Qualifications of teachers, including a requirement that	536
the school's classroom teachers be licensed in accordance with	537
sections 3319.22 to 3319.31in compliance with section 3314.103 of	538
the Revised Code, except that a community school may engage	539
noncertificated persons to teach up to twelve hours per week	540
pursuant to section 3319.301 of the Revised Code.	541

(11) That the school will comply with the following	542
requirements:	543

(a) The school will provide learning opportunities to a	544
minimum of twenty-five students for a minimum of nine hundred	545
twenty hours per school year.	546

(b) The governing authority will purchase liability	547
insurance, or otherwise provide for the potential liability of the	548
school.	549

(c) The school will be nonsectarian in its programs,	550
admission policies, employment practices, and all other	551
operations, and will not be operated by a sectarian school or	552
religious institution.	553

(d) The school will comply with sections 9.90, 9.91, 109.65,	554
121.22, 149.43, 2151.357, 2151.421, 2313.19, 3301.0710, 3301.0711,	555
3301.0712, 3301.0715, 3313.211, 3313.472, 3313.50, 3313.536,	556
3313.539, 3313.60, 3313.608, 3313.609, 3313.6012, 3313.6013,	557
3313.6014, 3313.6015, 3313.643, 3313.648, 3313.6411, 3313.66,	558
3313.661, 3313.662, 3313.666, 3313.667, 3313.67, 3313.671,	559
3313.672, 3313.673, 3313.69, 3313.71, 3313.716, 3313.718,	560
3313.719, 3313.80, 3313.814, 3313.816, 3313.817, 3313.86, 3313.96,	561
3315.08, 3317.061, 3319.072, 3319.073, 3319.10, 3319.171, 3319.32,	562
3319.321, 3319.322, 3319.33, 3319.35, 3319.39, 3319.391, 3319.41,	563
3319.45, 3321.01, 3321.041, 3321.13, 3321.14, 3321.17, 3321.18,	564
3321.19, 3321.191, 3327.10, 4111.17, 4113.52, and 5705.391 and	565
Chapters 117., 1347., 2744., 3324., 3365., 3742., 4112., 4123.,	566
4141., and 4167. of the Revised Code as if it were a school	567
district and will comply with section 3301.0714 of the Revised	568
Code in the manner specified in section 3314.17 of the Revised	569
Code.	570

(e) The school shall comply with Chapter 102. and section	571
2921.42 of the Revised Code.	572

(f) The school will comply with sections 3313.61, 3313.611,	573
and 3313.614 of the Revised Code, except that for students who	574
enter ninth grade for the first time before July 1, 2010, the	575
requirement in sections 3313.61 and 3313.611 of the Revised Code	576
that a person must successfully complete the curriculum in any	577
high school prior to receiving a high school diploma may be met by	578
completing the curriculum adopted by the governing authority of	579
the community school rather than the curriculum specified in Title	580
XXXIII of the Revised Code or any rules of the state board of	581
education. Beginning with students who enter ninth grade for the	582
first time on or after July 1, 2010, the requirement in sections	583
3313.61 and 3313.611 of the Revised Code that a person must	584
successfully complete the curriculum of a high school prior to	585
receiving a high school diploma shall be met by completing the	586
Ohio core curriculum prescribed in division (C) of section	587
3313.603 of the Revised Code, unless the person qualifies under	588
division (D) or (F) of that section. Each school shall comply with	589
the plan for awarding high school credit based on demonstration of	590
subject area competency, adopted by the state board of education	591
under division (J) of section 3313.603 of the Revised Code.	592

(g) The school governing authority will submit within four	593
months after the end of each school year a report of its	594
activities and progress in meeting the goals and standards of	595
divisions (A)(3) and (4) of this section and its financial status	596
to the sponsor and the parents of all students enrolled in the	597
school.	598

(h) The school, unless it is an internet- or computer-based	599
community school, will comply with section 3313.801 of the Revised	600
Code as if it were a school district.	601

(i) If the school is the recipient of moneys from a grant	602
awarded under the federal race to the top program, Division (A),	603
Title XIV, Sections 14005 and 14006 of the "American Recovery and	604
Reinvestment Act of 2009," Pub. L. No. 111-5, 123 Stat. 115, the	605
school will pay teachers based upon performance in accordance with	606
section 3317.141 and will comply with section 3319.111 of the	607
Revised Code as if it were a school district.	608

(j) The school annually shall evaluate its teachers in	609
compliance with sections 3319.11, 3319.111, and 3319.112 of the	610
Revised Code as if it were a school district.	611

(12) Arrangements for providing health and other benefits to	612
employees;	613

(13) The length of the contract, which shall begin at the	614
beginning of an academic year. No contract shall exceed five years	615
unless such contract has been renewed pursuant to division (E) of	616
this section.	617

(14) The governing authority of the school, which shall be	618
responsible for carrying out the provisions of the contract;	619

(15) A financial plan detailing an estimated school budget	620
for each year of the period of the contract and specifying the	621
total estimated per pupil expenditure amount for each such year.	622

(16) Requirements and procedures regarding the disposition of	623
employees of the school in the event the contract is terminated or	624
not renewed pursuant to section 3314.07 of the Revised Code;	625

(17) Whether the school is to be created by converting all or	626
part of an existing public school or educational service center	627
building or is to be a new start-up school, and if it is a	628
converted public school or service center building, specification	629
of any duties or responsibilities of an employer that the board of	630
education or service center governing board that operated the	631
school or building before conversion is delegating to the	632
governing authority of the community school with respect to all or	633
any specified group of employees provided the delegation is not	634
prohibited by a collective bargaining agreement applicable to such	635
employees;	636

(18) Provisions establishing procedures for resolving	637
disputes or differences of opinion between the sponsor and the	638
governing authority of the community school;	639

(19) A provision requiring the governing authority to adopt a	640
policy regarding the admission of students who reside outside the	641
district in which the school is located. That policy shall comply	642
with the admissions procedures specified in sections 3314.06 and	643
3314.061 of the Revised Code and, at the sole discretion of the	644
authority, shall do one of the following:	645

(a) Prohibit the enrollment of students who reside outside	646
the district in which the school is located;	647

(b) Permit the enrollment of students who reside in districts	648
adjacent to the district in which the school is located;	649

(c) Permit the enrollment of students who reside in any other	650
district in the state.	651

(20) A provision recognizing the authority of the department	652
of education to take over the sponsorship of the school in	653
accordance with the provisions of division (C) of section 3314.015	654
of the Revised Code;	655

(21) A provision recognizing the sponsor's authority to	656
assume the operation of a school under the conditions specified in	657
division (B) of section 3314.073 of the Revised Code;	658

(22) A provision recognizing both of the following:

659

(a) The authority of public health and safety officials to	660
inspect the facilities of the school and to order the facilities	661
closed if those officials find that the facilities are not in	662
compliance with health and safety laws and regulations;	663

(b) The authority of the department of education as the	664
community school oversight body to suspend the operation of the	665
school under section 3314.072 of the Revised Code if the	666
department has evidence of conditions or violations of law at the	667
school that pose an imminent danger to the health and safety of	668
the school's students and employees and the sponsor refuses to	669
take such action.	670

(23) A description of the learning opportunities that will be	671
offered to students including both classroom-based and	672
non-classroom-based learning opportunities that is in compliance	673
with criteria for student participation established by the	674
department under division (H)(2) of section 3314.08 of the Revised	675
Code;	676

(24) The school will comply with sections 3302.04 and	677
3302.041 of the Revised Code, except that any action required to	678
be taken by a school district pursuant to those sections shall be	679
taken by the sponsor of the school. However, the sponsor shall not	680
be required to take any action described in division (F) of	681
section 3302.04 of the Revised Code.	682

(25) Beginning in the 2006-2007 school year, the school will	683
open for operation not later than the thirtieth day of September	684
each school year, unless the mission of the school as specified	685
under division (A)(2) of this section is solely to serve dropouts.	686
In its initial year of operation, if the school fails to open by	687
the thirtieth day of September, or within one year after the	688
adoption of the contract pursuant to division (D) of section	689
3314.02 of the Revised Code if the mission of the school is solely	690
to serve dropouts, the contract shall be void.	691

(B) The community school shall also submit to the sponsor a	692
comprehensive plan for the school. The plan shall specify the	693
following:	694

(1) The process by which the governing authority of the	695
school will be selected in the future;	696

(2) The management and administration of the school;

697

(3) If the community school is a currently existing public	698
school or educational service center building, alternative	699
arrangements for current public school students who choose not to	700
attend the converted school and for teachers who choose not to	701
teach in the school or building after conversion;	702

(4) The instructional program and educational philosophy of	703
the school;	704

(5) Internal financial controls.

705

(C) A contract entered into under section 3314.02 of the	706
Revised Code between a sponsor and the governing authority of a	707
community school may provide for the community school governing	708
authority to make payments to the sponsor, which is hereby	709
authorized to receive such payments as set forth in the contract	710
between the governing authority and the sponsor. The total amount	711
of such payments for oversight and monitoring of the school shall	712
not exceed three per cent of the total amount of payments for	713
operating expenses that the school receives from the state.	714

(D) The contract shall specify the duties of the sponsor	715
which shall be in accordance with the written agreement entered	716
into with the department of education under division (B) of	717
section 3314.015 of the Revised Code and shall include the	718
following:	719

(1) Monitor the community school's compliance with all laws	720
applicable to the school and with the terms of the contract;	721

(2) Monitor and evaluate the academic and fiscal performance	722
and the organization and operation of the community school on at	723
least an annual basis;	724

(3) Report on an annual basis the results of the evaluation	725
conducted under division (D)(2) of this section to the department	726
of education and to the parents of students enrolled in the	727
community school;	728

(4) Provide technical assistance to the community school in	729
complying with laws applicable to the school and terms of the	730
contract;	731

(5) Take steps to intervene in the school's operation to	732
correct problems in the school's overall performance, declare the	733
school to be on probationary status pursuant to section 3314.073	734
of the Revised Code, suspend the operation of the school pursuant	735
to section 3314.072 of the Revised Code, or terminate the contract	736
of the school pursuant to section 3314.07 of the Revised Code as	737
determined necessary by the sponsor;	738

(6) Have in place a plan of action to be undertaken in the	739
event the community school experiences financial difficulties or	740
closes prior to the end of a school year.	741

(E) Upon the expiration of a contract entered into under this	742
section, the sponsor of a community school may, with the approval	743
of the governing authority of the school, renew that contract for	744
a period of time determined by the sponsor, but not ending earlier	745
than the end of any school year, if the sponsor finds that the	746
school's compliance with applicable laws and terms of the contract	747
and the school's progress in meeting the academic goals prescribed	748
in the contract have been satisfactory. Any contract that is	749
renewed under this division remains subject to the provisions of	750
sections 3314.07, 3314.072, and 3314.073 of the Revised Code.	751

(F) If a community school fails to open for operation within	752
one year after the contract entered into under this section is	753
adopted pursuant to division (D) of section 3314.02 of the Revised	754
Code or permanently closes prior to the expiration of the	755
contract, the contract shall be void and the school shall not	756
enter into a contract with any other sponsor. A school shall not	757
be considered permanently closed because the operations of the	758
school have been suspended pursuant to section 3314.072 of the	759
Revised Code.	760

Sec. 3314.031. Each nonpublic operator of a community school	761
and each nonpublic entity that sponsors a community school shall	762
comply with section 149.43 of the Revised Code as if it were a	763
public office with respect to all records pertaining to the	764
management or sponsorship of the school.	765

Sec. 3314.06.  The governing authority of each community	766
school established under this chapter shall adopt admission	767
procedures that specify the following:	768

(A) That, except as otherwise provided in this section and	769
section 3314.062 of the Revised Code, admission to the school	770
shall be open to any individual age five to twenty-two entitled to	771
attend school pursuant to section 3313.64 or 3313.65 of the	772
Revised Code in a school district in the state.	773

An individual younger than five years of age may be admitted	774
to the school in accordance with division (A)(2) of section	775
3321.01 of the Revised Code.	776

(B)(1) That admission to the school may be limited to	777
students who have attained a specific grade level or are within a	778
specific age group; to students that meet a definition of	779
"at-risk," as defined in the contract; to residents of a specific	780
geographic area within the district, as defined in the contract;	781
or to separate groups of autistic students and nondisabled	782
students, as authorized in section 3314.061 of the Revised Code	783
and as defined in the contract.	784

(2) For purposes of division (B)(1) of this section,	785
"at-risk" students may include those students identified as gifted	786
students under section 3324.03 of the Revised Code.	787

(C) Whether enrollment is limited to students who reside in	788
the district in which the school is located or is open to	789
residents of other districts, as provided in the policy adopted	790
pursuant to the contract.	791

(D)(1) That there will be no discrimination in the admission	792
of students to the school on the basis of race, creed, color,	793
disability, or sex except that:	794

(a) The governing authority may do either of the following	795
for the purpose described in division (G) of this section:	796

(i) Establish a single-gender school for either sex;

797

(ii) Establish single-gender schools for each sex under the	798
same contract, provided substantially equal facilities and	799
learning opportunities are offered for both boys and girls. Such	800
facilities and opportunities may be offered for each sex at	801
separate locations.	802

(b) The governing authority may establish a school that	803
simultaneously serves a group of students identified as autistic	804
and a group of students who are not disabled, as authorized in	805
section 3314.061 of the Revised Code. However, unless the total	806
capacity established for the school has been filled, no student	807
with any disability shall be denied admission on the basis of that	808
disability.	809

(2) That upon admission of any student with a disability, the	810
community school will comply with all federal and state laws	811
regarding the education of students with disabilities.	812

(E) That the school may not limit admission to students on	813
the basis of intellectual ability, measures of achievement or	814
aptitude, or athletic ability, except that a school may limit its	815
enrollment to students as described in division (B) of this	816
section.	817

(F) That the community school will admit the number of	818
students that does not exceed the capacity of the school's	819
programs, classes, grade levels, or facilities.	820

(G) That the purpose of single-gender schools that are	821
established shall be to take advantage of the academic benefits	822
some students realize from single-gender instruction and	823
facilities and to offer students and parents residing in the	824
district the option of a single-gender education.	825

(H) That, except as otherwise provided under division (B) of	826
this section or section 3314.061 of the Revised Code, if the	827
number of applicants exceeds the capacity restrictions of division	828
(F) of this section, students shall be admitted by lot from all	829
those submitting applications, except preference shall be given to	830
students attending the school the previous year and to students	831
who reside in the district in which the school is located.	832
Preference may be given to siblings of students attending the	833
school the previous year.	834

Notwithstanding divisions (A) to (H) of this section, in the	835
event the racial composition of the enrollment of the community	836
school is violative of a federal desegregation order, the	837
community school shall take any and all corrective measures to	838
comply with the desegregation order.	839

Sec. 3314.062.  No community school shall admit any student	840
who is entitled to attend school under section 3313.64 or 3313.65	841
of the Revised Code in the school district in which the community	842
school is located and who is or would be assigned under section	843
3319.01 of the Revised Code, for the school year in which	844
admission is sought, to a district building whose most recent	845
rating issued under section 3302.03 of the Revised Code is better	846
than the most recent rating issued to the community school under	847
section 3314.012 of the Revised Code, unless one of the following	848
applies to the student:	849

(A) The student is a child with a disability entitled to	850
special education and related services under Chapter 3323. of the	851
Revised Code.	852

(B) The principal of the district building to which the	853
student is or would be assigned approves the student's admission	854
to the community school.	855

In accordance with division (B) of section 3314.012 of the	856
Revised Code, the ratings a community school receives for its	857
first two years of operation shall not be considered in	858
determining if the school is subject to this section. Nothing in	859
this section shall prohibit a community school from continuing to	860
enroll a student who was admitted prior to the school becoming	861
subject to this section.	862

Sec. 3314.075.  (A) Unless the state board of education	863
grants approval pursuant to rules adopted under division (B) of	864
this section, the governing authority of a community school shall	865
not terminate its contract with the school's current sponsor or	866
enter into a contract with a new sponsor under section 3314.03 of	867
the Revised Code, if both of the following conditions exist:	868

(1) In the previous school year, the school's sponsor has	869
taken any of the steps listed in division (D)(5) of section	870
3314.03 of the Revised Code.	871

(2) The community school does not currently meet automatic	872
closure criteria, as prescribed by section 3314.35 or 3314.351 of	873
the Revised Code.	874

(B) The state board of education shall adopt rules, in	875
accordance with Chapter 119. of the Revised Code, prescribing the	876
criteria that the state board shall consider when determining	877
whether to approve or deny a request from the governing authority	878
of a community school seeking to terminate its contract with the	879
school's sponsor or to enter into a contract with a new sponsor,	880
if the conditions listed in divisions (A)(1) and (2) of this	881
section exist. The state board shall apply these rules when	882
carrying out its duties pursuant to division (A) of this section.	883

Sec. 3314.085. No community school governing authority,	884
sponsor, or operator shall use state moneys paid to the community	885
school under section 3314.08 of the Revised Code to pay for any	886
advertising, recruiting, or promotional materials for that	887
community school.	888

Sec. 3314.088.  Any community school that receives funds	889
under this chapter shall annually adopt a salary schedule for	890
nonteaching school employees based upon training, experience, and	891
qualifications. Each community school shall prepare and may amend	892
from time to time, specifications descriptive of duties,	893
responsibilities, requirements, and desirable qualifications of	894
the classifications of employees required to perform the duties	895
specified in the salary schedule. All nonteaching school employees	896
are to be notified of the position classification to which they	897
are assigned and the salary for the classification. The	898
compensation of all employees working for the community school	899
shall be uniform for like positions except as compensation would	900
be affected by salary increments based upon length of service.	901

Sec. 3314.103. Teachers employed by a community school shall	902
be highly qualified teachers, as defined in section 3319.074 of	903
the Revised Code, and shall be licensed under sections 3319.22 to	904
3319.31 of the Revised Code and rules of the state board of	905
education implementing those sections.	906

Sec. 3314.181.  No community school shall charge a fee to a	907
student who is eligible for a free lunch under the "National	908
School Lunch Act," 60 Stat. 230 (1946), 42 U.S.C. 1751, as	909
amended, and the "Child Nutrition Act of 1966," 80 Stat. 885, 42	910
U.S.C. 1771, as amended, for any materials needed to enable the	911
pupil to participate fully in a course of instruction. This	912
prohibition does not apply to any fee charged for any of the	913
following:	914

(A) Any materials needed to enable a student to participate	915
fully in extracurricular activities or in any student enrichment	916
program that is not a course of instruction;	917

(B) Any tools, equipment, and materials that are necessary	918
for workforce-readiness training within a career-technical	919
education program that, to the extent the tools, equipment, and	920
materials are not consumed, may be retained by the student upon	921
course completion.	922

Sec. 3314.352.  No operator of a community school that was	923
permanently closed pursuant to section 3314.35 or 3314.351 of the	924
Revised Code shall operate another community school in the same	925
location as the permanently closed community school.	926

Sec. 3314.45. Upon the neglect or failure of a fiscal officer	927
or chief administrative officer of any community school to make	928
required reports, the governing authority of that community school	929
shall appoint some suitable person to make such reports, who shall	930
receive a reasonable compensation to be paid from the community	931
school's funds.	932

Section 2.  That existing sections 117.11, 149.351,	933
3313.6411, 3314.011, 3314.02, 3314.03, and 3314.06 of the Revised	934
Code are hereby repealed.	935

Section 3. (A) Notwithstanding section 3314.08 of the Revised	936
Code, in fiscal year 2014, no community school shall receive	937
payments under divisions (C)(1) and (2) of section 3314.08 of the	938
Revised Code, and division (D) of section 3314.091 of the Revised	939
Code, in an aggregate amount that is greater than the multiple	940
specified in division (B)(1) of Section 263.240 of Am. Sub. H.B.	941
59 of the 130th General Assembly times the sum of the community	942
school's payments for fiscal year 2013 under divisions (D)(1),	943
(2), and (4) to (10) of section 3314.08 of the Revised Code, as	944
that section existed prior to September 29, 2013, division (D) of	945
section 3314.091 of the Revised Code, as that section existed	946
prior to September 29, 2013, and Section 267.30.56 of Am. Sub.	947
H.B. 153 of the 129th General Assembly.	948

(B) Notwithstanding section 3314.08 of the Revised Code, in	949
fiscal year 2015, no community school shall receive payments under	950
divisions (C)(1) and (2) of section 3314.08 of the Revised Code,	951
and division (D) of section 3314.091 of the Revised Code, in an	952
aggregate amount that is greater than the multiple specified in	953
division (B)(2) of Section 263.240 of Am. Sub. H.B. 59 of the	954
130th General Assembly times the aggregate amount of the community	955
school's payments for fiscal year 2014 under divisions (C)(1) and	956
(2) of section 3314.08 of the Revised Code, and division (D) of	957
section 3314.091 of the Revised Code, after any reductions are	958
made for fiscal year 2014 under division (A) of this section.	959

(C) The Department of Education shall reduce a community	960
school's payments under divisions (C)(1)(a), (b), (d), (e), and	961
(f) of section 3314.08 of the Revised Code, and division (D) of	962
section 3314.091 of the Revised Code, proportionately as necessary	963
in order to comply with this section. If those amounts are	964
insufficient, the Department shall proportionately reduce a	965
community school's payments under divisions (C)(1)(c) and (g) of	966
section 3314.08 of the Revised Code.	967

Section 4. (A) Notwithstanding section 3326.33 of the Revised	968
Code, in fiscal year 2014, no STEM school shall receive payments	969
under section 3326.33 of the Revised Code, in an aggregate amount	970
that is greater than the multiple specified in division (B)(1) of	971
Section 263.240 of Am. Sub. H.B. 59 of the 130th General Assembly	972
times the aggregate amount of the STEM school's payments for	973
fiscal year 2013 under section 3326.33 of the Revised Code, as	974
that section existed prior to September 29, 2013.	975

(B) Notwithstanding section 3326.33 of the Revised Code, in	976
fiscal year 2015, no STEM school shall receive payments under	977
section 3326.33 of the Revised Code, in an aggregate amount that	978
is greater than the multiple specified in division (B)(2) of	979
Section 263.240 of of Am. Sub. H.B. 59 of the 130th General	980
Assembly times the aggregate amount of the STEM school's payments	981
for fiscal year 2014 under section 3326.33 of the Revised Code,	982
after any reductions are made for fiscal year 2014 under division	983
(A) of this section.	984

(C) The Department of Education shall reduce a STEM school's	985
payments under divisions (A), (B), (D), (E), and (F) of section	986
3326.33 of the Revised Code, proportionately as necessary in order	987
to comply with this section. If those amounts are insufficient,	988
the Department shall proportionately reduce a STEM school's	989
payments under divisions (C) and (G) of section 3326.33 of the	990
Revised Code.	991