The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
As Introduced*
122nd General Assembly
Regular Session
1997-1998 | S. B. No. 102 |
SENATORS DIX-GILLMOR-B. JOHNSON-BLESSING-CARNES-CUPP-
DRAKE-FINAN-GAETH-GARDNER-HORN-KEARNS-LATTA-NEIN-
RAY-SCHAFRATH-WHITE
A BILL
To amend sections 133.06, 3313.372, 3318.01, 3318.011, 3318.02, 3318.03,
3318.04,
3318.05, 3318.051, 3318.06, 3318.07, 3318.08, 3318.081,
3318.091, 3318.10, 3318.111, 3318.12, 3318.13, 3318.14, 3318.15,
3318.16, 3318.17, 3318.18, 3318.19, 3318.22, 3318.23, 3318.24,
3318.25, 3318.26, 3318.27, 3318.29, and 4115.04 and to enact sections
3318.041, 3318.082, 3318.30, 3318.31, and 3318.35 to create the Ohio
School Facilities Commission, to transfer responsibility
for the Classroom Facilities Assistance Program from the State
Board of Education to the Commission, to make other changes to
the Classroom Facilities Assistance Law, to exempt from prevailing wage law
public improvements and construction undertaken by school districts and
educational service centers, and to make an
appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 133.06, 3313.372, 3318.01, 3318.011, 3318.02,
3318.03,
3318.04, 3318.05, 3318.051, 3318.06, 3318.07, 3318.08, 3318.081,
3318.091, 3318.10, 3318.111, 3318.12, 3318.13, 3318.14, 3318.15,
3318.16, 3318.17, 3318.18, 3318.19, 3318.22, 3318.23, 3318.24,
3318.25, 3318.26, 3318.27, 3318.29, and 4115.04 be amended and sections
3318.041,
3318.082, 3318.30, 3318.31, and 3318.35 of the Revised Code be
enacted to read as follows:
Sec. 133.06. (A) A school district shall not incur,
without a vote of the electors, net indebtedness that exceeds an
amount equal to one-tenth of one per cent of its tax valuation
except as provided in divisions (G) and (H)
of this section and
in division (C) of section 3313.372 of the Revised Code.
(B) Except as provided in divisions (E) and (F) of this
section, a school district shall not incur net indebtedness that
exceeds an amount equal to nine per cent of its tax valuation.
(C) A school district shall not submit to a vote of the
electors the question of the issuance of securities in an amount
that will make the district's net indebtedness after the issuance
of the securities exceed an amount equal to four per cent of its
tax valuation, unless the superintendent of public instruction,
acting under policies adopted by the state board of education,
and the tax commissioner, acting under written policies of the
commissioner, consent to the submission. A request for the
consents shall be made at least thirty days prior to the election
at which the question is to be submitted except that the
superintendent of public instruction and the tax commissioner may
waive this thirty-day deadline or grant their consents after the
election if the school district shows good cause for such waiver
or consent after the election.
(D) In calculating the net indebtedness of a school
district none of the following shall be considered:
(1) Securities issued to acquire school buses and other
equipment used in transporting pupils or issued pursuant to
division (D) of section 133.10 of the Revised Code;
(2) Securities issued under division (F) of this section,
under section 133.301 of the Revised Code, and, to the extent in
excess of the limitation stated in division (B) of this section,
under division (E) of this section;
(3) Indebtedness resulting from the dissolution of a joint
vocational school district under section 3311.217 of the Revised
Code, evidenced by outstanding securities of that joint
vocational school district;
(4) Loans, evidenced by any securities, received under
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the
Revised Code;
(5) Debt incurred under section 3313.374 of the Revised Code;
(6) Debt incurred pursuant to division (B)(5) of
section 3313.37 of the Revised Code to acquire computers and related hardware.
(E) A school district may become a special needs district
as to certain securities as provided in this division (E).
(1) A board of education, by resolution, may declare its
school district to be a special needs district by determining
both of the following:
(a) The student population is not being adequately
serviced by the existing permanent improvements of the district.
(b) The district cannot obtain sufficient funds by the
issuance of securities within the limitation of division (B) of
this section to provide additional or improved needed permanent
improvements in time to meet the needs.
(2) The board of education shall certify a copy of that
resolution to the superintendent of public instruction with a
statistical report showing all of the following:
(a) A history of and a projection of the growth of the
student population;
(b) The history of and a projection of the growth of the
tax valuation;
(c) The projected needs;
(d) The estimated cost of permanent improvements proposed
to meet such projected needs.
(3) The superintendent of public instruction shall certify
the district as an approved special needs district if the
superintendent finds both of the following:
(a) The district does not have available sufficient
additional funds from state or federal sources to meet the
projected needs.
(b) The projection of the potential average growth of tax
valuation during the next five years, according to the
information certified to the superintendent and any other
information the superintendent obtains, indicates a likelihood of
potential average growth of tax valuation of the district during
the next five years of an average of not less than three per cent
per year. The findings and certification of the superintendent
shall be conclusive.
(4) An approved special needs district may incur net
indebtedness by the issuance of securities in accordance with the
provisions of this chapter in an amount that does not exceed an
amount equal to the greater of the following:
(a) Nine per cent of the sum of its tax valuation plus an
amount that is the product of multiplying that tax valuation by
the percentage by which the tax valuation has increased over the
tax valuation on the first day of the sixtieth month preceding
the month in which its board determines to submit to the electors
the question of issuing the proposed securities;
(b) Nine per cent of the sum of its tax valuation plus an
amount that is the product of multiplying that tax valuation by
the percentage, determined by the superintendent of public
instruction, by which that tax valuation is projected to increase
during the next ten years.
(F) A school district may issue securities for emergency
purposes, in a principal amount that does not exceed an amount
equal to three per cent of its tax valuation, as provided in this
division.
(1) A board of education, by resolution, may declare an
emergency if it determines both of the following:
(a) School buildings or other necessary school facilities
in the district have been wholly or partially destroyed, or
condemned by a constituted public authority, or that such
buildings or facilities are partially constructed, or so
constructed or planned as to require additions and improvements
to them before the buildings or facilities are usable for their
intended purpose, or that corrections to permanent improvements
are necessary to remove or prevent health or safety hazards.
(b) Existing fiscal and net indebtedness limitations make
adequate replacement, additions, or improvements impossible.
(2) Upon the declaration of an emergency, the board of
education may, by resolution, submit to the electors of the
district pursuant to section 133.18 of the Revised Code the
question of issuing securities for the purpose of paying the
cost, in excess of any insurance or condemnation proceeds
received by the district, of permanent improvements to respond to
the emergency need.
(3) The procedures for the election shall be as provided
in section 133.18 of the Revised Code, except that:
(a) The form of the ballot shall describe the emergency
existing, refer to this division as the authority under which the
emergency is declared, and state that the amount of the proposed
securities exceeds the limitations prescribed by division (B) of
this section;
(b) The resolution required by division (B) of section
133.18 of the Revised Code shall be certified to the county
auditor and the board of elections at least seventy-five days
prior to the election;
(c) The county auditor shall advise and, not later than
sixty-five days before the election, confirm that advice by
certification to, the board of education of the information
required by division (C) of section 133.18 of the Revised Code;
(d) The board of education shall then certify its
resolution and the information required by division (D) of
section 133.18 of the Revised Code to the board of elections not
less than sixty days prior to the election.
(4) Notwithstanding division (B) of section 133.21 of the
Revised Code, the first principal payment of securities issued
under this division may be set at any date not later than sixty
months after the earliest possible principal payment otherwise
provided for in that division.
(G) The board of education may contract with an architect,
professional engineer, or other person experienced in the design
and implementation of energy conservation measures for an
analysis and recommendations pertaining to installations,
modifications of installations, or remodeling that would
significantly reduce energy consumption in buildings owned by the
district. The report shall include estimates of all costs of
such installations, modifications, or remodeling including costs
of design, engineering, installation, maintenance, repairs and
debt service, and estimates of the amounts by which energy
consumption and resultant operational and maintenance costs, as defined by the
department of education OHIO SCHOOL FACILITIES
COMMISSION, would be reduced.
If the board finds after receiving the report that the
amount of money the district would spend on such installations,
modifications, or remodeling is not likely to exceed the amount
of money it would save in energy and resultant operational and
maintenance costs over the ensuing ten
years, the board may submit to the department of education
COMMISSION a copy of its findings and a request for approval to incur
indebtedness
to finance the making or modification of installations or the
remodeling of buildings for the purpose of significantly reducing
energy consumption.
If the department COMMISSION determines that the board's
findings are
reasonable, it shall approve the board's request. Upon receipt
of the department's COMMISSION'S approval, the district may
issue securities
without a vote of the electors in a principal amount not to
exceed nine-tenths of one per cent of its tax valuation for the
purpose of making such installations, or modifications, or
remodeling, but the total net indebtedness of the district
without a vote of the electors incurred under this and all other
sections of the Revised Code shall not exceed one per cent of the
district's tax valuation.
So long as any securities issued under this division (G)
remain outstanding, the board of education shall monitor the
energy consumption and resultant operational and maintenance costs of
buildings in which installations or
modifications have been made or remodeling has been done pursuant
to this division (G) and shall maintain and annually update a
report documenting the reductions in energy
consumption and resultant operational and maintenance cost savings
attributable to such installations,
modifications, or remodeling. The report shall be certified by
an architect or engineer independent of any person that provided
goods or services to the board in connection with the energy
conservation measures that are the subject of the report. The resultant
operational and maintenance cost savings shall be certified by the school
district treasurer. The report shall be made available to the department
of
education COMMISSION upon request.
(H) With the consent of the superintendent of public
instruction, a school district may incur without a vote of the
electors net indebtedness that exceeds the amounts stated in
divisions (A) and (G) of this section for the purpose of
paying
costs of permanent improvements, if and to the extent that both
of the following conditions are satisfied:
(1) The fiscal officer of the school district estimates
that receipts of the school district from compensation derived
from or under agreements entered into pursuant to section 5709.82
of the Revised Code, or distributions under division (C) of
section 5709.43 of the Revised Code, or any combination thereof,
are, after accounting for any appropriate coverage requirements,
sufficient in time and amount, and are committed by the
proceedings, to pay the debt charges on the securities issued to
evidence that indebtedness and payable from those receipts, and
the taxing authority of the district confirms the fiscal
officer's estimate, which confirmation is approved by the
superintendent of public instruction;
(2) The fiscal officer of the school district certifies,
and the taxing authority of the district confirms, that the
district, at the time of the certification and confirmation,
reasonably expects to have sufficient revenue available for the
purpose of operating such permanent improvements for their
intended purpose upon acquisition or completion thereof, and the
superintendent of public instruction approves the taxing
authority's confirmation.
The maximum maturity of securities issued under division
(H) of this section shall be the lesser of twenty years or the
maximum maturity calculated under section 133.20 of the Revised
Code.
Sec. 3313.372. (A) As used in this section, "energy
conservation measure" means an installation or modification of an
installation in, or remodeling of, a building, to reduce energy
consumption. It includes:
(1) Insulation of the building structure and systems
within the building;
(2) Storm windows and doors, multiglazed windows and
doors, heat absorbing or heat reflective glazed and coated window
and door systems, additional glazing, reductions in glass area,
and other window and door system modifications that reduce energy
consumption;
(3) Automatic energy control systems;
(4) Heating, ventilating, or air conditioning system
modifications or replacements;
(5) Caulking and weatherstripping;
(6) Replacement or modification of lighting fixtures to
increase the energy efficiency of the system without increasing
the overall illumination of a facility, unless such increase in
illumination is necessary to conform to the applicable state or
local building code for the proposed lighting system;
(7) Energy recovery systems;
(8) Cogeneration systems that produce steam or forms of
energy such as heat, as well as electricity, for use primarily
within a building or complex of buildings;
(9) Any other modification, installation, or remodeling
approved by the department of education OHIO SCHOOL
FACILITIES COMMISSION as an energy conservation
measure.
(B) A board of education of a city, exempted village,
local, or joint vocational school district may enter into an
installment payment contract for the purchase and installation of
energy conservation measures. The provisions of such installment
payment contracts dealing with interest charges and financing
terms shall not be subject to the competitive bidding
requirements of section 3313.46 of the Revised Code, and shall be
on the following terms:
(1) Not less than one-tenth of the costs thereof
shall be
paid within two years from the date of purchase.
(2) The remaining balance of the costs thereof shall be
paid within ten years from the date of purchase.
An installment payment contract entered into by a
board of education under this section shall require the board to
contract in accordance with division (A) of section 3313.46 of the Revised
Code
for the installation, modification, or remodeling of energy
conservation measures unless division (A) of section 3313.46 of the Revised
Code does not apply pursuant to division (B)(3) of that section.
(C) The board may issue the notes of the school district
signed by the president and the treasurer of the board and
specifying the terms of the purchase and securing the deferred
payments provided in this section, payable at the times provided
and bearing interest at a rate not exceeding the rate determined
as provided in section 9.95 of the Revised Code. The notes may
contain an option for prepayment and shall not be subject to
Chapter 133. of the Revised Code. In the resolution authorizing the notes,
the board may provide, without the vote of the electors of the district, for
annually levying and collecting taxes in amounts sufficient to pay the
interest on and retire the notes, except that the total net indebtedness
of the district without a vote of the electors incurred under this and
all other sections of the Revised Code shall not exceed one per cent of the
district's tax valuation. Revenues derived from local
taxes or otherwise, for the purpose of conserving energy or for
defraying the current operating expenses of the district, may be
applied to the payment of interest and the retirement of such
notes. The notes may be sold at private sale or given to the
contractor under the installment payment contract authorized by
division (B) of this section.
(D) Debt incurred under this section shall not be included
in the calculation of the net indebtedness of a school district
under section 133.06 of the Revised Code.
(E) No school district board shall enter into an installment
payment contract under division (B) of this section unless it first
obtains a report of the costs of the energy conservation measures and the
savings thereof as described under division (G) of section 133.06
of the Revised Code as a requirement for issuing energy securities, makes a
finding that the
amount spent on such measures is not likely to exceed the amount of money it
would save in energy costs and resultant operational and maintenance costs as
described in that division,
and the department of education
OHIO SCHOOL FACILITIES COMMISSION determines that the district
board's findings are reasonable and approves the contract as
described in that division.
The district board shall monitor the savings and maintain a report of those
savings, which shall be available to the department COMMISSION
in the same manner as
required by division (G) of section 133.06 of the Revised Code in the case of
energy securities.
Sec. 3318.01. As used in sections 3318.01 to 3318.20 of
the Revised Code:
(A) "State board OHIO SCHOOL FACILITIES COMMISSION"
means the state board of education COMMISSION
created pursuant to
Section 4 of Article VI, Ohio Constitution,
acting for itself and on behalf of the state department of education, as
agencies of state government SECTION 3318.30 of the Revised Code.
(B) "Classroom facilities" means rooms in which pupils
regularly assemble in public school buildings to receive
instruction and education and such facilities and building
improvements for the operation and use of such rooms as may be
needed in order to provide a complete educational program, AND MAY
INCLUDE SPACE WITHIN WHICH A CHILD DAY-CARE FACILITY OR A COMMUNITY RESOURCE
CENTER IS HOUSED.
(C) "Project" means a project to construct or acquire classroom
facilities, or to reconstruct or
make additions to existent EXISTING classroom facilities,
to be used for housing the applicable school district and its functions.
(D) "School district" means a local, exempted village, or
city school district as such districts are defined in Chapter
3311. of the Revised Code, acting as an agency of state government, performing
essential governmental functions of state government pursuant to sections
3318.01 and 3318.20 of the Revised Code.
(E) "School district board" means the board of education
of a school district.
(F) "Net bonded indebtedness" means the difference between
the SUM OF THE par value of all outstanding and unpaid bonds and notes
which
a school district board is obligated to pay, together with ANY
AMOUNTS THE SCHOOL DISTRICT IS OBLIGATED TO PAY UNDER LEASE-PURCHASE
AGREEMENTS ENTERED INTO UNDER SECTION 3313.375 of the Revised Code, AND the
par value of bonds authorized by the electors but not yet issued,
the proceeds of which can lawfully be used for the project, and
the amount held in the sinking fund and other indebtedness
retirement funds for their redemption. Notes issued for school
buses in accordance with section 3327.08 of the Revised Code,
notes issued in anticipation of the collection of current
revenues, and bonds issued to pay final judgments shall not be
considered in calculating the net bonded indebtedness.
"Net bonded indebtedness" does not include indebtedness arising from
the acquisition of land to provide a site for classroom facilities
constructed, acquired, or added to pursuant to sections 3318.01 to 3318.20
of the Revised Code.
(G) "Board of elections" means the board of elections of
the county containing the most populous portion of the school
district.
(H) "County auditor" means the auditor of the county in
which the greatest value of taxable property of such school
district is located.
(I) "Tax duplicates" means the general tax lists and
duplicates prescribed by sections 319.28 and 319.29 of the
Revised Code.
(J) "Required level of indebtedness" means:
(1) In, IN the case of a school district contained in
the first quartile of the most recent ranking of school districts
according to adjusted valuation per pupil compiled by the
department of education pursuant to section 3318.011 of the
Revised Code, five per cent of the total value of all property in
the district as listed and assessed for taxation on the tax
duplicates.
(2) In the case of a school district contained in the
second quartile of such ranking, six per cent of such total value
of all property DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE HUNDREDTH
PERCENTILES, FIVE PER
CENT OF VALUATION PLUS [TWO ONE-HUNDREDTHS OF ONE PER CENT MULTIPLIED BY
(THE
PERCENTILE IN WHICH THE DISTRICT RANKS MINUS ONE)].
(3) In the case of all other school districts, seven per
cent of such total value of all property.
(K) "Required percentage of the basic project costs" means:
(1) In, IN the case of a district contained in the
first decile of the most recent ranking of school districts according
to adjusted valuation per pupil compiled by the department of
education pursuant to section 3318.011 of the Revised Code, an
amount equal to zero;
(2) In the case of a district contained in the second
decile of such ranking, an amount equal to ten per cent of the basic
project costs;
(3) In the case of a district contained in the third
decile of such ranking, an amount equal to twenty per cent of the basic
project costs;
(4) In the case of a district contained in the fourth
decile of such ranking, an amount equal to thirty per cent of the basic
project costs;
(5) In the case of a district contained in the fifth
decile of such ranking, an amount equal to forty per cent of the basic
project costs;
(6) In the case of a district contained in the sixth
decile of such ranking, an amount equal to fifty per cent of the basic
project costs;
(7) In the case of a district contained in the seventh
decile of such ranking, an amount equal to sixty per cent of the
basic project costs;
(8) In the case of a district contained in the eighth
decile of such ranking, an amount equal to seventy per cent of
the basic project costs;
(9) In the case of a district contained in the ninth
decile of such ranking, an amount equal to eighty per cent of the basic
project costs;
(10) In the case of a district contained in the tenth
decile of such ranking, an amount equal to ninety per cent of the
basic project costs DISTRICTS RANKED IN THE ELEVENTH THROUGH ONE
HUNDREDTH PERCENTILES, ONE PER CENT OF THE BASIC PROJECT COSTS TIMES THE
PERCENTILE IN WHICH THE DISTRICT RANKS.
(L) "Basic project cost" means a cost amount determined in accordance with
a
written policy RULES adopted UNDER SECTION 111.15 of the Revised Code by
the superintendent of public instruction, the
director of budget and management, and the director of the legislative budget
office of the legislative service commission and agreed to by them
OHIO SCHOOL FACILITIES COMMISSION. The basic
project cost calculation shall take into consideration the square footage and
cost per square foot necessary for the grade levels to be housed in the
classroom facilities, the variation across the state in construction and
related costs, THE COST OF THE INSTALLATION OF SITE UTILITIES AND SITE
PREPARATION, the cost of insuring the project until it is
completed, and the
professional planning, administration, and design fees that a district may
have to pay to undertake a classroom facilities project.
(M) "CHILD DAY-CARE FACILITY" MEANS
SPACE WITHIN A CLASSROOM FACILITY IN WHICH THE NEEDS OF INFANTS,
TODDLERS, PRESCHOOL CHILDREN, AND SCHOOL CHILDREN ARE PROVIDED
FOR BY PERSONS OTHER THAN THE PARENT OR GUARDIAN OF SUCH
CHILDREN FOR ANY PART OF THE DAY, INCLUDING PERSONS NOT EMPLOYED BY THE SCHOOL
DISTRICT OPERATING SUCH CLASSROOM FACILITY.
(N) "COMMUNITY RESOURCE
CENTER" MEANS SPACE WITHIN A CLASSROOM FACILITY IN WHICH
COMPREHENSIVE SERVICES THAT SUPPORT THE NEEDS OF FAMILIES AND
CHILDREN ARE PROVIDED BY COMMUNITY BASED SOCIAL SERVICE
PROVIDERS.
(O) "VALUATION" MEANS THE TOTAL VALUE OF ALL PROPERTY IN THE
DISTRICT AS LISTED AND ASSESSED FOR TAXATION ON THE TAX DUPLICATES.
(P) "PERCENTILE" MEANS THE PERCENTILE IN WHICH THE DISTRICT IS
RANKED PURSUANT TO DIVISION (C) OF SECTION 3318.011 of the Revised Code.
(Q) "INSTALLATION OF SITE UTILITIES" MEANS THE INSTALLATION
OF A SITE DOMESTIC WATER SYSTEM, SITE FIRE PROTECTION SYSTEM,
SITE GAS DISTRIBUTION SYSTEM, SITE SANITARY SYSTEM, SITE STORM
DRAINAGE SYSTEM, AND SITE TELEPHONE AND DATA SYSTEM.
(R) "SITE PREPARATION"
MEANS THE EARTHWORK NECESSARY FOR PREPARATION OF THE BUILDING
FOUNDATION SYSTEM, THE PAVED PEDESTRIAN AND VEHICULAR
CIRCULATION SYSTEM, PLAYGROUNDS ON THE PROJECT SITE, AND LAWN
AND PLANTING ON THE PROJECT SITE.
Sec. 3318.011. For purposes of providing assistance under
sections 3318.01 to 3318.20 of the Revised Code, the department
of education shall annually do all of the following:
(A) Calculate the adjusted valuation per pupil of each
city, local, and exempted village school district according to
the formula set forth in section 3317.0213 of the Revised Code;
(B) Rank all such districts in order of adjusted valuation
per pupil from the district with the lowest adjusted valuation
per pupil to the district with the highest adjusted valuation per
pupil;
(C) Divide such ranking into quartiles with the first
quartile containing those twenty-five per cent of school
districts having the lowest adjusted valuation per pupil and the
fourth quartile containing those twenty-five per cent of school
districts having the highest adjusted valuation per pupil DIVIDE SUCH
RANKING INTO PERCENTILES WITH THE FIRST PERCENTILE CONTAINING THE ONE PER CENT
OF SCHOOL DISTRICTS HAVING THE LOWEST ADJUSTED VALUATION PER PUPIL AND THE
ONE-HUNDREDTH PERCENTILE CONTAINING THE ONE PER CENT OF SCHOOL DISTRICTS
HAVING THE HIGHEST ADJUSTED VALUATION PER PUPIL;
(D) Divide such ranking into deciles with the first decile
containing those ten per cent of school districts having the
lowest adjusted valuation per pupil and the tenth quartile
containing those ten per cent of school districts having the
highest adjusted valuation per pupil.
(E) Determine the school districts that have an adjusted
valuation per pupil that is greater than the median adjusted valuation per
pupil for all school districts in the state;
(E) CERTIFY THE INFORMATION DESCRIBED IN DIVISIONS (A)
TO (D) OF THIS SECTION TO THE OHIO SCHOOL FACILITIES
COMMISSION.
Sec. 3318.02. (A) For purposes of Chapter 3318. SECTIONS 3318.01
TO 3318.31 of the Revised Code, the
state board of education OHIO SCHOOL FACILITIES
COMMISSION shall periodically perform an assessment of the
classroom facility needs in the state to identify school districts in need of
additional classroom facilities, or replacement or reconstruction of existent
classroom facilities, and the cost to each such district of constructing or
acquiring such additional facilities or making such renovations.
(B) Based upon the most recent assessment conducted pursuant to division (A)
of this section, the state board of education COMMISSION
shall, in ascending order of the
most current ranking of school districts under division (B) of section
3318.011 of the Revised Code, conduct on-site visits to school districts
identified as having classroom facilities needs and to confirm the findings of
the periodic assessment and to further evaluate the facilities needs of the
district. The evaluation shall assess the district's need to construct or
acquire new classroom facilities and may include an assessment of the
district's need for building additions or for the reconstruction of existent
buildings in lieu of constructing or acquiring replacement buildings.
In THE FIRST ROUND OF ON-SITE VISITS FIRST SUCCEEDING THE
EFFECTIVE DATE OF THIS AMENDMENT SHALL BE LIMITED TO THE SCHOOL
DISTRICTS IN THE FIRST THROUGH FIFTH PERCENTILES, EXCLUDING
DISTRICTS THAT ARE INELIGIBLE FOR FUNDING UNDER THIS CHAPTER
PURSUANT TO SECTION 3318.04 OF THE
REVISED CODE. THE SECOND ROUND OF
ON-SITE VISITS SHALL BE LIMITED TO THE SCHOOL DISTRICTS IN THE
FIRST THROUGH TENTH PERCENTILES, EXCLUDING DISTRICTS THAT ARE
INELIGIBLE FOR FUNDING UNDER THIS CHAPTER PURSUANT TO SECTION
3318.04 of the Revised Code. EACH SUCCEEDING ROUND OF ON-SITE
VISITS SHALL BE LIMITED TO THE PERCENTILES INCLUDED IN THE
IMMEDIATELY PRECEDING ROUND OF ON-SITE VISITS PLUS THE NEXT FIVE
PERCENTILES. EXCEPT FOR THE FIRST ROUND OF ON-SITE VISITS, NO
ROUND OF ON-SITE VISITS SHALL COMMENCE UNLESS EIGHTY PER CENT OF
THE DISTRICTS FOR WHICH ON-SITE VISITS WERE PERFORMED DURING THE
IMMEDIATELY PRECEDING ROUND, AND FOR WHICH A PROJECT WAS
APPROVED UNDER SECTION 3318.04 OF THE
REVISED CODE, HAVE AT LEAST COMMENCED
CONSTRUCTION OR ACQUISITION OF THE APPROVED PROJECT.
(C) NOTWITHSTANDING
DIVISION (B) OF THIS SECTION, IN
any biennium, the state board COMMISSION may limit the number
of districts for which
it conducts on-site visits based upon its projections of the moneys available
and moneys necessary to undertake projects under this chapter
SECTIONS 3318.01 TO 3318.31 of the Revised Code for the current
biennium.
Sec. 3318.03. Upon conducting the on-site evaluation under section 3318.02 of
the Revised Code, the department of education OHIO SCHOOL
FACILITIES COMMISSION shall
make a determination of
the needs of the school district for additional classroom facilities; the
number of classroom facilities to be included in a project and the basic
project cost of constructing, acquiring, reconstructing, or making additions
to each such facility; IF THE SCHOOL DISTRICT IS RANKED IN THE ELEVENTH
THROUGH ONE-HUNDREDTH PERCENTILES, the amount of such cost that the
school district can
supply from
available funds, by the issuance of bonds previously authorized
by the electors of the school district the proceeds of which can
lawfully be used for the project, and by the issuance of bonds
under section 3318.05 of the Revised Code; and the remaining amount
of such cost that shall be supplied by the
state. The state board COMMISSION shall make a
favorable determination only upon evidence that the proposed
project conforms to sound educational practice, that it is in
keeping with the orderly process of school district
reorganization and consolidation, and that the actual or
projected enrollment in each classroom facility proposed to be included in
the project
is at least three hundred fifty pupils. Exceptions shall be authorized
only in those districts
where topography, sparcity of population, and other factors make
larger schools impracticable.
Sections 125.81 and 153.04 of the Revised Code shall not
apply to classroom facilities constructed under sections 3318.01
to 3318.20 of the Revised Code.
Sec. 3318.04. If the state board of
education OHIO SCHOOL FACILITIES COMMISSION makes a
determination under section 3318.03 of the Revised
Code in favor of the proposed project, the
project shall be conditionally approved
and the state board COMMISSION thereupon shall reserve and
encumber from the
total funds appropriated for the purpose of sections 3318.01 to
3318.20 of the Revised Code, the estimated amount of the state's
portion of the basic project cost. Such conditional approval
shall be submitted to the controlling board for approval thereof. The
controlling board shall forthwith approve or reject the state
board's COMMISSION'S determination, conditional approval, and the
estimated
amount of the state's portion of the basic project cost. In the event
of approval thereof by the controlling
board, the superintendent of public instruction COMMISSION shall
certify
such conditional approval to the school district board.
NO SCHOOL DISTRICT GIVEN CONDITIONAL APPROVAL FOR A
PROJECT UNDER THIS SECTION, AND WHICH IS RANKED IN THE FIRST
THROUGH TENTH PERCENTILES, SHALL BE REQUIRED TO PAY ANY PORTION
OF THE BASIC PROJECT COST.
From and after the date of such certification, no bonds or
notes shall be issued by a school district board without the
approval of the state board COMMISSION for the purpose of
acquiring
classroom facilities so long as the state board's COMMISSION'S
conditional
approval of such school district's project remains in effect.
NO SCHOOL DISTRICT THAT HAS PREVIOUSLY RECEIVED FUNDING UNDER
ANY VERSION OF SECTIONS 3318.01 TO 3318.20 OF THE REVISED
CODE SHALL HAVE A PROJECT CONDITIONALLY APPROVED PURSUANT
TO THIS SECTION FOR A PERIOD OF TEN YEARS AFTER THE DATE UPON
WHICH THE ELECTORS OF SUCH DISTRICT APPROVED A LEVY PURSUANT TO
ANY VERSION OF SECTION 3318.06 OF THE REVISED
CODE.
Sec. 3318.041. A SCHOOL DISTRICT RANKED IN THE FIRST THROUGH FIFTH
PERCENTILES MAY ADOPT AND CERTIFY TO THE OHIO SCHOOL FACILITIES
COMMISSION A RESOLUTION SPECIFYING A PROPOSED PROJECT THAT MEETS THE
REQUIREMENTS OF THIS CHAPTER AND THE NEEDS OF THE DISTRICT, AS CONFIRMED
THROUGH AN ON-SITE VISIT PURSUANT TO SECTION 3318.02 of the Revised Code. THE COMMISSION
SHALL CONSIDER SUCH PROJECTS FOR CONDITIONAL APPROVAL PURSUANT TO SECTION
3318.03 AND SHALL ENCUMBER FUNDS PURSUANT TO SECTION 3318.04 of the Revised Code IN THE ORDER
IN WHICH SUCH RESOLUTIONS ARE RECEIVED.
Sec. 3318.05. The conditional approval of the state board
of education OHIO SCHOOL FACILITIES COMMISSION FOR A PROJECT
OF A SCHOOL DISTRICT RANKED IN THE FIRST THROUGH TENTH PERCENTILES SHALL LAPSE
AND THE AMOUNT RESERVED AND ENCUMBERED FOR SUCH PROJECT SHALL BE RELEASED
UNLESS THE SCHOOL DISTRICT BOARD ACCEPTS SUCH CONDITIONAL APPROVAL WITHIN ONE
HUNDRED TWENTY DAYS OF THE DATE OF CERTIFICATION OF THE CONDITIONAL APPROVAL
TO THE SCHOOL DISTRICT BOARD AND THE ELECTORS OF THE SCHOOL DISTRICT VOTE
FAVORABLY ON THE PROPOSITION DESCRIBED IN DIVISION (B) OF THIS
SECTION WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. THE CONDITIONAL
APPROVAL OF THE OHIO SCHOOL FACILITIES COMMISSION for a
project OF A SCHOOL DISTRICT RANKED IN THE ELEVENTH THROUGH ONE HUNDREDTH
PERCENTILES shall lapse and the amount reserved
and encumbered for such project shall be released unless,
THE SCHOOL DISTRICT BOARD ACCEPTS SUCH CONDITIONAL APPROVAL within one
hundred twenty days following the date of certification of
the conditional approval to the school district board or such
other time as may be fixed by the state board for good cause
shown, the school district board accepts such conditional
approval and the electors of the school district vote favorably
on both of the propositions described in divisions
(A) and (B) of this section, which
WITHIN ONE YEAR OF THE DATE OF SUCH CERTIFICATION. THE propositions
DESCRIBED IN DIVISIONS (A) AND (B) OF THIS SECTION
shall be combined in a single proposal. The state board of education may
reconsider and reprioritize a school district's project if IF the
district board or the district's electors fail to meet such requirements
AND THE AMOUNT RESERVED AND ENCUMBERED FOR THE DISTRICT'S PROJECT IS
RELEASED, THE DISTRICT SHALL BE GIVEN FIRST PRIORITY FOR PROJECT FUNDING AS
SUCH FUNDS BECOME AVAILABLE.
(A) On the question of issuing bonds of the school
district board, for the school district's portion of the basic project
cost, in either whatever amount may be necessary to raise
the net bonded indebtedness of the school district to within five
thousand dollars of the required level of indebtedness calculated for
the year preceding the year in which the resolution declaring the necessity of
the election is adopted or an amount equal to the required percentage
of the basic project costs, whichever is greater; provided, that such
question need not be submitted if at the time of the passage of
such resolution the net bonded indebtedness of the school
district (1) aggregates ninety-five per cent or more of the
required level of indebtedness, or (2) is within twenty thousand
dollars of such level and the required percentage of the basic project
costs is not greater than either the amount necessary to raise
the net bonded indebtedness of the school district to within five
thousand dollars of the required level of indebtedness or twenty
thousand dollars; and
(B) On the question of levying a tax the proceeds of
which shall be used to pay the cost of maintaining the
classroom facilities included in the project, except that in any year the
district's adjusted valuation per pupil is greater than the state-wide median
adjusted valuation per pupil one-half of the proceeds of the tax shall be used
for such maintenance and one-half of such proceeds shall be used to pay
the cost of the purchase of the classroom facilities from the
state under the provisions of sections 3318.01 to 3318.20 of the
Revised Code. Such tax shall be at the rate of one-half mill for
each dollar of valuation except that in those years in which the
state superintendent of public instruction OHIO SCHOOL
FACILITIES COMMISSION, pursuant to section 3318.051 of
the
Revised Code, requires the district to increase the tax rate to
an amount greater than one-half mill, but not in excess of four
mills, until the purchase price is paid but in no case longer
than twenty-three years. Proceeds of the tax to be used for maintenance of
the classroom facilities shall be deposited into a separate fund established
by the school district for such purpose.
Sec. 3318.051. (A) The purpose of this section is to
ensure that no school district that constructs, acquires,
reconstructs, or makes additions to classroom facilities pursuant to sections
3318.01 to 3318.20 of the Revised Code increases its tax rate for debt service
solely to avoid making payments as described in division (B) of section
3318.05 of the Revised Code in excess of one-half mill.
In furtherance of this public policy, the state superintendent of public
instruction OHIO SCHOOL FACILITIES COMMISSION annually
shall review the tax budget of each such
school district and such additional information as the state
superintendent COMMISSION may require from the school district and
make a
determination as to whether the district's tax rate for debt
service, excluding the amount of debt service paid for such classroom
facilities
under sections 3318.01 to 3318.20 of the Revised Code, is reasonably
necessary for the retirement of the school district's bonded
indebtedness. If the state superintendent COMMISSION determines
that the tax rate
for debt service excluding the amount paid for the
construction, acquisition, reconstruction, or additions to of
classroom facilities under such sections is not reasonably necessary
for the retirement of the district's bonded indebtedness,
the state superintendent COMMISSION may require the district to
increase
its tax rate for the payments described under
division (B) of section 3318.05 of the Revised Code to an amount greater than
one-half mill, but not exceeding four mills. In determining the
tax rate necessary for the retirement of a school district's
bonded indebtedness, the state superintendent COMMISSION, in
accordance
with the guidelines established pursuant to division (B) of this section, may
disregard that portion of the tax rate to
retire bonded indebtedness issued after the effective date of
that district's agreement to construct, acquire,
reconstruct, or make additions to classroom facilities under sections
3318.01 to 3318.20 of the Revised Code.
(B) The state superintendent COMMISSION shall establish
guidelines to conduct
the review described in division (A) of this section. In
reviewing the tax budget of a school district and determining the
tax rate for the payments described under division (B) of
section 3318.05 of the Revised Code, the state superintendent
COMMISSION
shall exempt any debt service payments required for
constructing, acquiring, reconstructing, or adding to classroom
facilities under sections 3318.01 to 3318.20 of the Revised Code and
may exempt debt service payments required for any other purpose.
(C) For the period that payments under division (B) of section 3318.05
of the Revised Code are required, each school district shall annually
submit a copy of its tax budget to the state superintendent
COMMISSION within
five working days of its adoption pursuant to section 5705.28 of
the Revised Code. The state superintendent COMMISSION shall
make a determination
in accordance with this section within thirty days of the date
upon which a school district submits its tax budget.
(D) If a county budget commission considers it necessary
to modify any tax rate for debt service contained in the tax
budget of a school district constructing, acquiring,
reconstructing, or adding to classroom facilities from
the state pursuant to sections 3318.01 to 3318.20 of the Revised
Code due to a change in the district's tax duplicates or the
issuance by the district of new bonded indebtedness, the state
superintendent OHIO SCHOOL FACILITIES COMMISSION may
review these changes in accordance with
division (B) of this section for the purpose of reducing the
district's tax rate for the payments described in division (B) of
section 3318.05 of the Revised Code, provided such rate shall not be less than
one-half mill.
Sec. 3318.06. After receipt of the conditional approval of
the state board of education OHIO SCHOOL FACILITIES
COMMISSION, the school district board by a
majority of all of its members shall, if it desires to proceed
with the project, declare all of the following by resolution:
(A) That IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH ONE
HUNDREDTH PERCENTILES, THAT with a net bonded indebtedness of within five
thousand dollars of the required level of indebtedness or by
issuing bonds in an amount equal to the required percentage of
the project costs, the district is unable to provide adequate
classroom facilities without assistance from the state;
(B) That to qualify for such state assistance it is
necessary to levy a tax outside the ten-mill limitation the
proceeds of which shall be used to pay the cost of
maintaining the classroom facilities included in the project, except that in
any year the district's adjusted valuation per pupil is greater than the
state-wide median adjusted valuation per pupil one-half of the proceeds of the
tax shall be used for such maintenance and one-half of such proceeds shall be
used to pay the cost of the purchase of the classroom
facilities from the state;
(C) That the question of such tax levy shall be submitted
to the electors of the school district at the next general or
primary election, if there be a general or primary election not
less than seventy-five and not more than ninety-five days after
the day of the adoption of such resolution or, if not, at a
special election to be held at a time specified in the resolution
which shall be not less than seventy-five days after the day of
the adoption of the resolution and which shall be in accordance
with the requirements of section 3501.01 of the Revised Code.
Such resolution shall also state, if such be the case, that
the question of issuing bonds of the board shall be combined in a
single proposal with the question of such tax levy. More than
one election under this section may be held in any one calendar
year. Such resolution shall specify both of the following:
(1) That the rate which it is necessary to levy shall be at the rate of
one-half mill for each one dollar of valuation except that in those years in
which the state superintendent of public instruction COMMISSION,
pursuant to section
3318.051 of the Revised Code, requires the district to increase the tax rate
to an amount greater than one-half mill, but not in excess of four mills, and
that such tax shall be levied until the purchase price is paid but in no case
longer than twenty-three years;
(2) That the proceeds of the tax shall be used to pay the cost of
maintaining the classroom facilities included in the project, except in any
year the district's adjusted valuation per pupil is greater than the statewide
median adjusted valuation per pupil one-half of the proceeds of the tax shall
be used for such maintenance and one-half of the proceeds of the tax shall be
used to pay the cost of the purchase of the classroom facilities from the
state under sections 3318.01 to 3318.20 of the Revised Code.
A copy of such resolution shall after its passage and not less than
seventy-five days prior to the date set therein for the election
be certified to the county board of elections.
If the question of issuing bonds of the board is to be
combined with the question of levying the tax, the resolution of the
school district board, in addition to meeting other applicable
requirements of section 133.18 of the Revised Code, shall state
that the amount of bonds to be issued will be either whatever
amount may be necessary to raise the net bonded indebtedness of
the school district to within five thousand dollars of the
required level of indebtedness calculated for the year preceding the
year in which such resolution is adopted or an amount equal to the required
percentage of the basic project costs, whichever is greater and state
that the maximum maturity of the bonds which, notwithstanding
section 133.20 of the Revised Code, may be any number of years
not exceeding twenty-three as determined by the board. In
estimating the amount of bonds to be issued, the board shall take
into consideration the amount of moneys then in the bond
retirement fund and the amount of moneys to be collected for and
disbursed from the bond retirement fund during the remainder of
the year in which the resolution of necessity is adopted.
Notice of the election shall include the fact that the tax
levy shall be at the rate of one-half mill for each one dollar of
valuation except that in those years in which the superintendent
COMMISSION, pursuant to
section 3318.051 of the Revised Code,
requires the district to increase the tax rate to an amount
greater than one-half mill, but not in excess of four mills,
that the levy shall be made until the purchase price is paid but
in no case longer than twenty-three years, and that the proceeds of
the tax shall be used to pay the cost of
maintaining the classroom facilities included in the project, except in any
year the district's adjusted valuation per pupil is greater than the statewide
median adjusted valuation per pupil one-half of the proceeds of the tax shall
be used for such maintenance and one-half of the proceeds of the tax shall be
used to pay the cost of the purchase of the classroom facilities from the
state under sections 3318.01 to 3318.20 of the Revised Code.
The form of the ballot to be used at such election shall
be:
"A majority affirmative vote is necessary for passage.
Shall bonds be issued by the Board of Education of the
............ (here insert name of school district) for the
purpose of ............ (here insert purpose of bond issue) in
either an amount sufficient to raise the net indebtedness of the
school district to within five thousand dollars of ............
(here insert five, six, or seven per cent depending on the
district's required level of indebtedness) of the total value of
all property in the school district as listed and assessed for
taxation on the tax duplicate for the year ............ (here
insert the year preceding the year in which the resolution declaring
the necessity of
the election was adopted) or an amount equal to ............
(here insert the required percentage of the basic project costs),
whichever is greater, and a levy of taxes be made outside of the
ten-mill limitation for a maximum period of ............ (here
insert longest maturity) years to pay the principal and interest
of such bonds, the amount of such bonds being estimated to be
............ (here insert estimated amount of bond issue) for
which the levy of taxes is estimated by the county auditor to
average ............ (here insert number of mills) mills for each
one dollar of valuation, which amounts to ............ (here
insert rate expressed in dollars and cents) for each one hundred
dollars of valuation?"
and
"Shall an additional levy of taxes be made for the benefit
of the ............ (name of school district), the proceeds of which
shall be used to pay the cost of
maintaining the classroom facilities included in the project, except that in
any year the district's adjusted valuation per pupil is greater than the
state-wide median adjusted valuation per pupil one-half of the proceeds of the
tax shall be used for such maintenance and one-half of such proceeds shall be
used to pay the cost of the purchase of classroom facilities from the
state, at the rate of one-half mill for each one dollar of
valuation except that in those years in which the state superintendent of
public instruction OHIO SCHOOL FACILITIES COMMISSION,
pursuant to section 3318.051 of the Revised Code,
requires the district to increase the tax rate to an amount
greater than one-half mill, but not in excess of four mills,
until the purchase price is paid but in no case longer than
twenty-three years?
_______________________________________________ | |
FOR THE BOND ISSUE AND TAX LEVY | |
_______________________________________________ | |
AGAINST THE BOND ISSUE AND TAX LEVY | |
_______________________________________________ | " |
Where it is not necessary to include the question of
issuing bonds of the school district board with the question of
levying the tax, the first paragraph of the foregoing ballot form shall
be omitted and the question to be voted on shall be "For the Tax
Levy" and "Against the Tax Levy."
(D) If it is necessary for the school district to acquire a site for the
classroom facilities to be acquired pursuant to sections 3318.01 to 3318.20 of
the Revised Code, the district board may propose either to issue bonds of the
board or to levy a tax to pay for the acquisition of such site, and may
combine the question of doing so with the questions specified in division (C)
of this section. Bonds issued under this division for the purpose of
acquiring a site are a general obligation of the school district and are
Chapter 133. securities.
The form of that portion of the ballot to include the question of either
issuing bonds or levying a tax for site acquisition purposes shall be one of
the following:
(1) "Shall bonds be issued by the board of education of the ......... (name
of the school district) for the purpose of .......... (purpose of the bond
issue, which shall be for the purpose of acquiring a site for classroom
facilities) in the principal amount of ........ (principal amount of the bond
issue), to be repaid annually over a maximum period of ......... (maximum
number of years over which the principal of the bonds may be paid) years, and
an annual levy of property taxes be made outside the ten-mill limitation,
estimated by the county auditor to average over the repayment period of the
bond issue ....... (number of mills) mills for each one dollar of tax
valuation, which amount to ....... (rate expressed in dollars and cents) for
each one hundred dollars of valuation?"
(2) "Shall an additional levy of taxes be made for the benefit of the
......... (name of the school district) ......... for the purpose .........
(purpose of the levy, which shall be for the purpose
of acquiring a site for classroom facilities) in the sum of ......... (annual
amount the levy is to produce) and a levy of taxes to be made outside of the
ten-mill limitation estimated by the county auditor to average ........
(number of mills) mills for each one hundred dollars of valuation, for a
period of ......... (number of years the millage is to be imposed) years?"
Where it is necessary to combine the question of issuing bonds of the school
district and levying a tax as described in division (C) of this section with
the question of issuing bonds of the school district for acquisition of a
site, the question specified in division (C) of this section to be voted on
shall be "For the Bond Issues and the Tax Levy" and "Against the Bond Issues
and the Tax Levy." In the event it is not necessary to include the question
of issuing bonds as described in division (C) of this section, the question
specified in that division to be voted on shall be "For the Bond Issue and the
Tax Levy" and "Against the Bond Issue and the Tax Levy."
Where it is necessary to combine the question of issuing bonds of the school
district and levying a tax as described in division (C) of this section with
the question of levying a tax for the acquisition of a site, the question
specified in division (C) of this section to be voted on shall be "For the
Bond Issue and the Tax Levies" and "Against the Bond Issue and the Tax
Levies." In the event it is not necessary to include the question of issuing
bonds as described in division (C) of this section, the question specified in
that division to be voted on shall be "For the Tax Levies" and "Against the
Tax Levies."
If a majority of those voting upon a proposition hereunder
which includes the question of issuing bonds vote in favor
thereof, and if the agreement provided for by section 3318.08 of
the Revised Code has been entered into, the school district board
may proceed under Chapter 133. of the Revised Code, with the
issuance of bonds or bond anticipation notes in accordance with
the terms of the agreement.
Sec. 3318.07. The board of elections shall certify the result of the election
to the tax commissioner, to the auditor of the county or counties in which the
school district is located, to the treasurer of the school district board, and
to the state board of education OHIO SCHOOL FACILITIES
COMMISSION. The necessary tax levy for debt service on
the bonds shall be included in the annual tax budget that is certified to the
county budget commission.
Sec. 3318.08. If the requisite favorable vote on the
election is obtained, the state board of education OHIO
SCHOOL FACILITIES COMMISSION, upon
certification of the results of the election to it, shall enter
into a written agreement with the school district board for the
construction and sale of the project, which agreement shall
include, but need not be limited to, the following provisions:
(A) The IF THE DISTRICT IS RANKED IN THE ELEVENTH THROUGH ONE
HUNDREDTH PERCENTILES, THE sale and issuance of bonds or notes in
anticipation thereof, as soon as practicable after the execution
of the agreement, in either an amount which will raise the net
bonded indebtedness of the school district, as of the date of the
resolution authorizing the issuance of such bonds or notes, to
within five thousand dollars of the required level of
indebtedness calculated for the year preceding the year in which
the resolution declaring the
necessity of the election was adopted or an amount equal to the
required percentage of the basic project costs, whichever is
greater; provided, that if at that time the county treasurer of each
county in which the school district is located has not commenced
the collection of taxes on the general duplicate of real and
public utility property for such year, the school district board
shall authorize the issuance of a first installment of bond
anticipation notes in an amount specified by the agreement, which
amount shall not exceed an amount necessary to raise the net
bonded indebtedness of the school district as to the date of such
authorizing resolution to within five thousand dollars of the
required level of indebtedness for the preceding year. In the
event that a first installment of bond anticipation notes is
issued, the school district board shall, as soon as practicable
after the county treasurer of each county in which the school
district is located has commenced the collection of taxes on the
general duplicate of real and public utility property for the
year in which the resolution declaring the necessity of the
election was adopted, authorize the issuance of a second and
final installment of bond anticipation notes or a first and final
issue of bonds. The combined value of the first and second
installment of bond anticipation notes or the value of the first
and final issue of bonds shall be equal to either an amount which
will raise the net indebtedness of the school district as of the
date of such authorizing resolution to within five thousand
dollars of the required level of indebtedness, or an amount equal
to the required percentage of the project costs, whichever is
greater. The proceeds of any such bonds shall be used first to
retire any bond anticipation notes. Otherwise, the proceeds of
such bonds and of any bond anticipation notes, except the premium
and accrued interest thereon, shall be deposited in the school
district's project construction fund. In determining the amount
of net indebtedness for the purpose of fixing the amount of an
issue of either bonds or bond anticipation notes, gross
indebtedness shall be reduced by moneys in the bond retirement
fund only to the extent of the moneys therein on the first day of
the year preceding the year in which the resolution authorizing such
bonds or notes
is adopted. Should there be a decrease in the tax valuation of
the school district so that the amount of indebtedness which can
be incurred on the tax duplicates for the year in which the
resolution declaring the necessity of the election was adopted is
less than the amount of the first installment of bond
anticipation notes, there shall be paid from the school
district's project construction account to the school district's
bond retirement fund to be applied against such notes an amount
sufficient to cause the net indebtedness of the school district,
as of the first day of the year following the year in which the
resolution declaring the necessity of the election was adopted,
to be within five thousand dollars of the required level of
indebtedness for the year in which that resolution was adopted. The maximum
amount of indebtedness to be incurred by any school
district board as its share of the cost of the project is either
an amount which will cause its net indebtedness, as of the first
day of the year following the year in which the resolution
declaring the necessity of the bond issue was adopted, to be
within five thousand dollars of the required level of
indebtedness calculated for the year preceding the year in which
that resolution was adopted or
an amount equal to the required percentage of the basic project costs,
whichever is greater. All bonds and bond anticipation notes
shall be issued in accordance with Chapter 133. of the Revised
Code, and notes may be renewed as provided in section 133.22 of
the Revised Code.
(B) The transfer of such funds of the school district
board available for the project, together with the proceeds of
the sale of the bonds or notes, except premium, accrued interest,
and interest included in the amount of the issue, to the school
district's project construction account in the school district's
depository;
(C) The levy of the tax authorized at the election for the
payment of maintenance costs or the cost of purchasing
the classroom facilities;
(D) Ownership of the project during the period of
construction, which shall be divided between the state
COMMISSION and the
school district board in proportion to their respective
contributions to the school district's project construction
account;
(E) The transfer of the state's interest in the project to
the school district upon completion of the project;
(F) The insurance of the project by the school district
from the time there is an insurable interest therein and so long
as any part of the purchase price remains unpaid, in such amounts
and against such risks as the state board COMMISSION shall
require;
provided, that the cost of any required insurance until the
project is completed shall be a part of the basic project cost;
(G) The certification by the director of budget and
management that funds are available and have been set aside to
meet the state's share of the basic project cost as approved
by the controlling board pursuant to section 3318.04 of the
Revised Code, such certification to consider any necessary
revision of the state's share by the superintendent of public
instruction required by changes in the school district's ability
to provide more or less local funds than was estimated at the
time of the conditional approval under section 3318.04 of the
Revised Code;
(H) Authorization of the school district board to
advertise for and receive construction bids for the project, for
and on behalf of the state board COMMISSION, and to award
contracts in the
name of the state subject to approval by the superintendent of
public instruction COMMISSION;
(I) Provisions for the disbursement of moneys from the
school district's project account upon issuance by the
superintendent of public instruction COMMISSION of vouchers for
work done to
be certified to the superintendent COMMISSION by the treasurer
of the
school district board;
(J) Disposal of any balance left in the school district's
project construction account upon completion of the project;
(K) Prohibition against alienation of any interest in the
project by the school district board or its successor in interest
without the consent of the state board COMMISSION so long as any
part of the
purchase price of the project remains unpaid, but in no case
longer than twenty-three years;
(L) Limitations upon use of the project or any part of it
so long as any part of the purchase price of the project remains
unpaid, but in no case longer than twenty-three years;
(M) Suspension of the power to issue bonds or notes by the
school district board for permanent improvements without the
prior consent of the state board COMMISSION for so long as any
part of the
purchase price of the project remains unpaid, but in no case
longer than twenty-three years;
(N) Provision for vesting absolute interest in the project
in the school district board when the purchase price has been
paid or at the expiration of the period of twenty-three years;
(O) Provision for deposit of an executed copy of the
agreement in the office of the state board COMMISSION and the
office of the
county recorder of the county or counties in which the project is
situated;
(P) Provision for termination of the contract and release
of the funds encumbered at the time of the conditional approval,
if the proceeds of the sale of the bonds of the school district
board are not paid into the school district's project
construction account and if bids for the construction of the
project have not been taken within such period after the
execution of the agreement as may be fixed by the state board
COMMISSION;
(Q) PROVISION FOR THE SCHOOL DISTRICT TO MAINTAIN THE PROJECT IN
ACCORDANCE WITH A PLAN APPROVED BY THE COMMISSION;
(R) PROVISION THAT ALL
STATE FUNDS RESERVED AND ENCUMBERED TO PAY THE STATE SHARE OF
THE COST OF THE PROJECT PURSUANT TO SECTION 3318.03 OF THE
REVISED CODE BE SPENT ON THE
CONSTRUCTION OR ACQUISITION OF THE PROJECT PRIOR TO THE
EXPENDITURE OF ANY FUNDS PROVIDED BY THE SCHOOL DISTRICT TO PAY
FOR ITS SHARE OF THE PROJECT COST.
Sec. 3318.081. If the board of education of a school
district authorized to impose a tax pursuant to section 3318.06
of the Revised Code determines that taxable value of property
subject to the tax has increased to the extent it will not be
necessary to impose such tax for twenty-three years in order to
pay the purchase price, it may request the county auditor to
determine the amount of the purchase price remaining to be paid
and the estimated rate of taxation required each year to repay
such remainder in equal installments over the maximum number of
remaining years the tax may be in effect. The auditor shall make
such determination upon request and certify the results thereof
to the board of education.
Upon receipt of the auditor's determination, the board of
education may request the state board of education OHIO
SCHOOL FACILITIES COMMISSION to enter into
a supplemental agreement under which the district may repay the
remainder of the purchase price in annual amounts equal to the
quotient obtained by dividing the amount remaining to be paid by
the maximum number of remaining years the tax may be in effect.
If such an agreement is entered into, the state board COMMISSION
shall
certify a copy thereof to the county auditor and the tax
authorized by section 3318.06 of the Revised Code thereafter
shall be levied at the rate required to make the annual payments
required by the supplemental agreement rather than the rate
required by such section.
Sec. 3318.082. THE BOARD OF EDUCATION OF ANY SCHOOL DISTRICT IMPOSING A
TAX FOR THE PURPOSE OF PAYING THE COST OF THE PURCHASE OF CLASSROOM FACILITIES
FROM THE STATE PURSUANT TO SECTION 3318.06 of the Revised Code PRIOR TO THE EFFECTIVE DATE OF
THE AMENDMENTS TO THAT SECTION BY AMENDED SUBSTITUTE
HOUSE BILL NO. 748 OF THE 121stGENERAL ASSEMBLY, MAY ENTER INTO A SUPPLEMENTAL AGREEMENT
WITH THE OHIO SCHOOL FACILITIES COMMISSION UNDER WHICH THE PROCEEDS
OF SUCH TAX SHALL
BE DISTRIBUTED IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 3318.06 of the Revised Code, AS
AMENDED BY AMENDED SUBSTITUTE HOUSE BILL
NO. 748 OF THE 121stGENERAL
ASSEMBLY.
Sec. 3318.091. Promptly after the written agreement between the school
district board and the state board of education OHIO SCHOOL
FACILITIES COMMISSION has been entered into,
the
school district board shall proceed with the issuance of its bonds or notes in
anticipation thereof pursuant to the provision of such agreement required by
division (A) of section 3318.08 of the Revised Code and the deposit of the
proceeds thereof in the school district's project construction account
pursuant to the provision of such agreement required by division (B) of
section 3318.08 of the Revised Code, and the school district board, with the
approval of the superintendent of public instruction COMMISSION
shall employ a
qualified
professional person or firm to prepare preliminary plans, working drawings,
specifications, estimates of cost, and such data as the school district board
and the superintendent of public instruction COMMISSION deem
necessary for the project.
When the preliminary plans and preliminary estimates of cost have been
prepared, and approved by the school district board, they shall be submitted
to the superintendent of public instruction COMMISSION for
approval, modification, or
rejection. The superintendent COMMISSION shall ensure that the
plans and materials
proposed for use in the project comply with specifications for plans and
materials that shall be established by the state board of
education COMMISSION. When such preliminary plans and preliminary
estimates
of cost and
any modifications thereof have been approved by the superintendent of
public
instruction COMMISSION and the school district board, the school
district board shall
cause such qualified professional person or firm to prepare the working
drawings, specifications, and estimates of cost.
Sec. 3318.10. When such working drawings, specifications,
and estimates of cost have been approved by the school district
board and the superintendent of public instruction OHIO
SCHOOL FACILITIES COMMISSION, the treasurer
of the school district board shall advertise for construction
bids for the project once a week for four consecutive weeks in a
newspaper published in and of general circulation in the county
in which the project is located. Such notices shall state that
plans and specifications for the project are on file in the
office of the state board of education COMMISSION and such other
place as
may be designated in such notice, and the time and place when and
where bids therefor will be received.
The form of proposal to be submitted by bidder BIDDERS shall be
supplied by the state board COMMISSION. Bidders may be
permitted to bid
upon all the branches of work and materials to be furnished and
supplied, upon any branch thereof, or upon all or any thereof.
A proposal shall be invalid and not considered unless it
meets the requirements of section 153.54 of the Revised Code.
When the construction bids for all branches of work and
materials have been tabulated, the superintendent of public
instruction COMMISSION shall cause to be prepared a revised
estimate of the basic
project cost based upon the lowest responsible bids received. If
such revised estimate exceeds the estimated basic project cost as
approved by the controlling board pursuant to section 3318.04 of
the Revised Code as adjusted for inflation from the time of such
approval, no contracts may be entered into pursuant to
this section unless such revised estimate is approved by the
state board COMMISSION and by the controlling board referred to
in section
3318.04 of the Revised Code. The adjustment for inflation shall be
calculated and agreed to by the superintendent of public
instruction, the
director of the legislative budget office of the legislative service
commission, and the director of the office of budget and
management. When such revised estimate has been
prepared, and after such approvals are given, if necessary, and
if the school district board has caused to be transferred to the
project construction account the proceeds from the sale of the
first or first and final installment of its bonds or bond
anticipation notes pursuant to the provision of written agreement
required by division (B) of section 3318.08 of the Revised Code,
and when the director of budget and management has certified that
there is a balance in the appropriation, not otherwise obligated
to pay precedent obligations, pursuant to which the state's share
of such revised estimate is required to be paid, the contract for
all branches of work and materials to be furnished and supplied,
or for any branch thereof as determined by the school district
board, shall be awarded by the school district board to the
lowest responsible bidder subject to the approval of the
superintendent of public instruction COMMISSION. Such award
shall be made
within thirty days after the date on which the bids are opened,
and the successful bidder shall enter into a contract within ten
days after the successful bidder is notified of the award of the
contract.
Subject to the approval of the superintendent of public
instruction COMMISSION, the school district board may reject all
bids and
readvertise. Any contract made under this section shall be made
in the name of the state and executed on its behalf by the
president and treasurer of the school district board.
The provisions of sections 153.50 to 153.99 of the Revised
Code, which are applicable to construction contracts of boards of
education and which permit bids to be made for two or more trades
or kinds of work, shall apply to construction contracts for the
project to the exclusion of sections 153.01 to 153.20 of the
Revised Code applicable to state construction contracts.
The remedies afforded to any subcontractor, materialman MATERIALS
SUPPLIER,
laborer, mechanic, or persons furnishing material or machinery
for the project under sections 1311.26 to 1311.32 of the Revised
Code, shall apply to contracts entered into under this section
and the itemized statement required by section 1311.26 of the
Revised Code shall be filed with the school district board.
Sec. 3318.111. The school district board shall have authority, with the
approval of the superintendent of public instruction OHIO
SCHOOL FACILITIES COMMISSION and
notwithstanding the
provisions of sections 135.01 to 135.21, inclusive, of the Revised
Code, to
invest funds on deposit in the project construction account in bonds, notes,
certificates of indebtedness, treasury bills, or other securities issued by
and constituting direct obligations of the United States, or the state of Ohio
maturing, or redeemable at the option of the holder, not later than the dates
on which such funds will be required to be disbursed from such account.
Sec. 3318.12. The superintendent of public instruction
OHIO SCHOOL FACILITIES COMMISSION
shall cause to be transferred to the school district's project
construction account the necessary amounts from amounts
appropriated by the general assembly and set aside for such
purpose, from time to time as may be necessary to pay obligations
chargeable to such account when due. The treasurer of the school
district board shall disburse funds from the school district's
project construction account only upon the approval of the
superintendent of public instruction COMMISSION. The
superintendent of
public instruction COMMISSION or his THE COMMISSION'S
designated
representative shall issue vouchers against such account, in such amounts, and
at such times as required by the contracts for construction of the project.
Any surplus remaining in the school district's project
construction account after the project has been completed shall
be transferred to the state board of education COMMISSION for
expenditure
pursuant to sections 3318.01 to 3318.20 of the Revised Code;
provided, that if the final cost of the project is less than the
amount of moneys paid into the school district's project
construction account by the school district board, the amount by
which the school district's contribution exceeds the actual cost
shall be returned to the school district board.
Sec. 3318.13. Notwithstanding any provision of sections
5705.27 to 5705.50 of the Revised Code, the tax to be levied on
all taxable property within a school district for the purpose of paying the
cost of maintaining the classroom facilities included in the project or
for paying the purchase price of the project to the state under the
agreement provided in section 3318.08 of the Revised Code or the
supplemental agreement provided in section 3318.081 of the
Revised Code shall be included in the budget of the school
district for each year upon the certification to the county
budget commission or commissions of the county or counties in
which said school district is located, by the state board of
education OHIO SCHOOL FACILITIES COMMISSION of the balance
due the state under said agreement or
supplemental agreement. Such certification shall be made on or
before the fifteenth day of July in each year. Thereafter, the
respective county budget commissions shall treat such
certification as an additional item on the tax budget for the
school district as to which such certification has been made and
shall provide for the levy therefor in the manner provided in
sections 5705.27 to 5705.50 of the Revised Code for tax levies
included directly in the budgets of the subdivisions.
The levy of taxes shall be included in the next annual tax
budget that is certified to the county budget commission after
the execution of the agreement for the project.
Sec. 3318.14. Notwithstanding the provision of section 321.31 of the Revised
Code, immediately after each settlement with the county auditor, on
presentation of the warrant of the county auditor therefor, the county
treasurer shall pay to the school district the proceeds of the tax levy
provided in section 3318.13 of the Revised Code to be used to pay the cost of
maintaining the
classroom facilities included in the project and pay to the state board
OHIO SCHOOL FACILITIES COMMISSION
any proceeds of the tax levy provided in section 3318.13 of the Revised Code
to be applied to the unpaid purchase price of the project.
Sec. 3318.15. There is hereby created the public school
building fund within the state treasury consisting of all moneys
received from the sale of classroom facilities pursuant to
sections 3318.01 to 3318.20 of the Revised Code, any moneys
transferred or appropriated to the fund by the general assembly,
and any grants, gifts, or contributions received by the state board of
education OHIO SCHOOL FACILITIES COMMISSION to be used for
the purposes of the fund.
Moneys transferred or appropriated to the fund by the general
assembly and moneys in the fund from grants, gifts, and contributions shall be
used to acquire classroom facilities for sale to school districts pursuant to
sections 3318.01 to 3318.20 of the Revised Code. The moneys in the fund
received from the sale of classroom
facilities shall be held in a separate account in the fund. Such
moneys may be used partially to acquire additional classroom
facilities for sale to school districts pursuant to sections
3318.01 to 3318.20 and partially to pay bond service charges as
defined in division (C) of section 3318.21 of the Revised Code on
obligations, the proceeds of which are deposited into the school
districts facilities fund created in section 3318.23 of the
Revised Code.
Sec. 3318.16. Title to interests in real property purchased with moneys in
the school district's project construction account shall be taken in the name
of the state of Ohio. Upon completion of the project, the title to such
interest in real property shall be conveyed to the school district board and
the president and the secretary of the state board OHIO
SCHOOL FACILITIES COMMISSION shall execute and deliver
deeds to complete the transfer of such interests.
Upon completion of the project, the interest of the state in the project shall
be transferred to the school district board, which interest is equal to that
portion of the final cost of the project represented by funds contributed by
the state for the project. The purchase price to be paid by the school
district board for the state's interest in the project shall be the total
amount of funds contributed by the state for the project.
Sec. 3318.17. A school district board may purchase
classroom facilities from the state from time to time under the
procedure set forth in sections 3318.01 to 3318.12 of the Revised
Code. The levy of taxes required by section 3318.14 of the
Revised Code shall be at the rate of one-half mill for
each one dollar of valuation except that in those years in which
the state superintendent of public instruction OHIO SCHOOL
FACILITIES COMMISSION, pursuant to section 3318.051
of the Revised Code, requires the district to increase the tax rate to
an amount greater than one-half mill, but not in excess of four
mills, and shall be for a maximum period of twenty-three years
after the last purchase and except in those years in which a
supplemental agreement authorized by section 3318.081 of the
Revised Code is in effect, the rate shall be as prescribed for
such section for the period during which such agreement is in
effect. Where a school district has purchased classroom
facilities from the state on which any portion of the purchase
price remains unpaid and it desires to purchase additional
classroom facilities, the notice of election and form of ballot
set forth in section 3318.06 of the Revised Code shall provide
that the levy is an extension of an existing levy for a maximum
period of twenty-three years. Where there has been more than one
purchase of classroom facilities from the state, any
proceeds of the tax to be used to pay the purchase price of such
facilities shall be applied to the unpaid purchase price of the projects
in the order in which they were purchased.
Sec. 3318.18. The unpaid purchase price of a project shall
constitute an indebtedness of the school district but shall not
be included in the calculation of indebtedness under sections
133.04 and 133.06 of the Revised Code. In the event all or a
portion of the territory comprising a school district, which has
outstanding an indebtedness to the state representing the unpaid
purchase price of a project or projects, is transferred to
another school district, or, if a new school district is created
to include all or a portion of such school district, the
outstanding indebtedness for each project shall be apportioned
between the acquiring school district and the original school
district in the ratio, as of the effective date of the transfer,
which the assessed valuation of the territory transferred to the
acquiring school district bears to the assessed valuation of the
original school district.
The amount of the indebtedness so assumed by the new school
district or acquiring school district shall be equal to one-half
mill multiplied by the total value of all property as listed and
assessed for taxation in the original school district or
territory transferred for each of the years remaining in the
agreement for payment of purchase price between the original
school district and the state board of education. On or before
the first day of July of each year, the department of taxation
shall certify to the state board of education OHIO SCHOOL
FACILITIES COMMISSION the amount of the
tax duplicate of the original school district or territory
transferred for the calendar year ending on the thirty-first day
of December immediately preceding. This tax duplicate shall be
used in the calculation of the indebtedness so assumed.
The acquiring school district shall levy a tax outside the
ten-mill limitation upon all property in the acquiring school
district to pay the indebtedness so assumed until the
indebtedness so assumed has been discharged but not longer than
twenty-three years after the original incurrence of the
indebtedness, provided, that the levy in the acquiring school
district in any year shall not exceed the levy in the original
school district to pay the purchase price of projects acquired
from the state. The proceeds of the aforesaid tax levy in the
acquiring school district shall be applied to the discharge of
indebtedness first incurred in point of time whether or not it be
an indebtedness assumed from another school district.
Sec. 3318.19. A complete detailed report of the expenditure of funds pursuant
to the provisions of sections 3318.01 to 3318.20, inclusive, of the
Revised
Code shall be made by the state board OHIO SCHOOL
FACILITIES COMMISSION biennially to the general assembly. The
report shall contain a detailed statement of classroom facilities acquired in
whole or in part by the state and sold to school districts, the moneys
received from school districts for credit against their indebtedness to the
state, and such other information as will advise the general assembly of the
nature and progress of this program.
Sec. 3318.22. (A) The general assembly finds that many
school districts are prevented by their size, tax base, or other
conditions from performing their essential functions as agencies of state
government to provide adequate classroom facilities and
issuing securities under Chapter 133. of the Revised Code at
favorable interest rates or charges. Accordingly, the state
board of education OHIO SCHOOL FACILITIES COMMISSION is
invested with the powers and duties
provided in sections 3318.21 to 3318.29 of the Revised Code in
order to provide deserved assistance and materially contribute to
the educational revitalization of such school districts and
result in improving the education and welfare of all the people
of the state.
(B) Sections 3318.21 to 3318.29 of the Revised Code do not
authorize the state board of education COMMISSION or the issuing
authority
to incur bonded indebtedness of the state or any political
subdivision of the state, or to obligate or pledge moneys raised
by taxation for the payment of any bonds or notes issued pursuant
to sections 3318.21 to 3318.29 of the Revised Code.
Sec. 3318.23. (A) There is hereby created the school
districts facilities fund within the state treasury that shall
consist of the proceeds of obligations issued pursuant to section
3318.26 of the Revised Code for the purposes of such fund, which
obligations are payable, in part, from moneys in the public
school building fund created in section 3318.15 of the Revised
Code; moneys received by the state from sources specified in
section 3318.27 of the Revised Code; service or other charges
imposed pursuant to section 3318.24 of the Revised Code; any
grants, gifts, or contributions of money received by the state
board of education OHIO SCHOOL FACILITIES COMMISSION for
use in making loans from the fund pursuant
to section 3318.24 of the Revised Code; and all other moneys
appropriated or transferred to the fund; provided that the school
districts facilities fund shall not be comprised, in any part, of
money raised by taxation.
(B) Moneys in the public school building fund that are
pledged receipts and that are, pursuant to section 3318.26 of the
Revised Code, made available by the state board of education
COMMISSION to
pay bond service charges for obligations issued pursuant to that
section shall be credited to the school facilities bond service
fund created in division (S) of section 3318.26 of the Revised
Code for each issuance of obligations authorized under that
section unless otherwise provided in the applicable bond
proceedings.
(C) Subject to the approval of the controlling board, all
moneys appropriated or transferred to the school districts
facilities fund may be released at the request of the state board
of education COMMISSION for the making of loans pursuant to section
3318.24
of the Revised Code.
Sec. 3318.24. (A) The state board of education OHIO
SCHOOL FACILITIES COMMISSION shall
adopt rules in accordance with Chapter 119. of the Revised Code
under which, in any fiscal year for which moneys are available in
the school districts facilities fund, the state board
COMMISSION, subject to
the approval of the controlling board, may make loans from the
fund to school districts for the purpose of paying the allowable
costs of a permanent improvement. The rules shall include, but
need not be limited to, all of the following:
(1) Application procedures, including the date by which
applications shall be made;
(2) Eligibility criteria, which shall include at least the
following provisions:
(a) A requirement that an applicant district demonstrate
need for additional or improved classroom facilities. Indicators
of need shall include, but need not be limited to, enrollment
levels and enrollment changes; ability of the district to
maintain minimum educational standards; the inability of the
district to finance the allowable costs of the permanent
improvement through ordinary financial channels upon reasonable
terms and at a reasonable interest rate or charge; and
demonstrated good faith efforts by the district to provide
classroom facilities by other means.
(b) A requirement that the loan will be adequately secured
by the issuance of general obligation bonds by the school
district as voted upon and approved by the district's electors
pursuant to section 133.18 of the Revised Code.
(c) A requirement that an applicant district demonstrate
the ability to repay the loan and interest charge within the
maximum period permitted by division (A)(4) of this section.
(3) Loan approval procedures and criteria, including
criteria for prioritizing eligible applications in accordance
with demonstrated need for additional or improved classroom
facilities.
(4) Provisions governing repayment of loans and interest
charges, including a provision that loans and interest charges be
repaid within a maximum of twenty-five years.
(5) Provisions governing the charging, altering, and
collection, by the state board COMMISSION, of fees or interest
or other
charges for loans or service charges for the making of a loan.
(B) The state board COMMISSION shall enter into a loan
agreement with
each district it approves for a loan pursuant to division (A) of
this section. The agreement shall specify the amount of the
loan, the amount of the interest charged for the loan, the
purpose for which the loan is to be used, the duration of the
loan, and the repayment schedule. Every such agreement shall
contain a provision authorizing the state board COMMISSION to
deduct from
payments due to the district under Chapter 3317. of the Revised
Code or from any other funds appropriated to the district by the
general assembly, the amount of any scheduled loan payment due
but not paid by the district. The state board COMMISSION may
take any
necessary or appropriate action to collect or otherwise deal with
any loan made pursuant to this section.
Sec. 3318.25. There is hereby created in the state
treasury the school building program assistance fund. The fund shall
consist of the proceeds of obligations issued for the purposes of
such fund pursuant to section 3318.26 of the Revised Code that
are payable from moneys in the lottery profits education fund
created in section 3770.06 of the Revised Code. Moneys in the fund shall
be used as directed by the state board of education OHIO
SCHOOL FACILITIES COMMISSION for the cost
to the state of acquiring classroom facilities for sale to school
districts pursuant to sections 3318.01 to 3318.20 of the Revised
Code.
Sec. 3318.26. (A) Subject to the limitations provided in
section 3318.29 of the Revised Code, the issuing authority, upon
the certification by the state board of education OHIO
SCHOOL FACILITIES COMMISSION to the issuing
authority of the amount of moneys or additional moneys needed in
the school districts facilities fund for the purpose of making
loans for allowable costs from such fund or in the school
building program assistance fund for the purposes of sections
3318.01 to 3318.20 of the Revised Code, or needed for capitalized
interest, for funding reserves, and for paying costs and expenses
incurred in connection with the issuance, carrying, securing,
paying, redeeming, or retirement of the obligations or any
obligations refunded thereby, including payment of costs and
expenses relating to letters of credit, lines of credit,
insurance, put agreements, standby purchase agreements, indexing,
marketing, remarketing and administrative arrangements, interest
swap or hedging agreements, and any other credit enhancement,
liquidity, remarketing, renewal, or refunding arrangements, all
of which are authorized by this section, shall issue obligations
of the state under this section in the required amount. The
proceeds of such obligations, except for obligations
issued to
provide moneys for the school building program assistance fund or
except for such portion to be deposited in special funds,
including reserve funds, as may be provided in the bond
proceedings, shall as provided in the bond proceedings be
deposited by the treasurer of state to the school districts
facilities fund. The issuing authority may appoint trustees,
paying agents, and transfer agents and may retain the services of
financial advisors and accounting experts and retain or contract
for the services of marketing, remarketing, indexing, and
administrative agents, other consultants, and independent
contractors, including printing services, as are necessary in the
issuing authority's judgment to carry out this section. The
costs of such services are payable from the school districts
facilities fund, the school building program assistance fund, or
any special fund determined by the issuing authority.
(B) The holders or owners of such obligations shall have
no right to have moneys raised by taxation obligated or pledged,
and moneys raised by taxation shall not be obligated or pledged,
for the payment of bond service charges. Such holders or owners
shall have no rights to payment of bond service charges from any
money or property received by the state board of education
COMMISSION,
treasurer of state, or the state, or from any other use of the
proceeds of the sale of the obligations, and no such moneys may
be used for the payment of bond service charges, except for
accrued interest, capitalized interest, and reserves funded from
proceeds received upon the sale of the obligations and except as
otherwise expressly provided in the applicable bond proceedings
pursuant to written directions by the treasurer of state. The
right of such holders and owners to payment of bond service
charges shall be limited to all or that portion of the pledged
receipts and those special funds pledged thereto pursuant to the
bond proceedings in accordance with this section, and each such
obligation shall bear on its face a statement to that effect.
(C) Obligations shall be authorized by resolution or order
of the issuing authority and the bond proceedings shall provide
for the purpose thereof and the principal amount or amounts, and
shall provide for or authorize the manner or agency for
determining the principal maturity or maturities, not exceeding
the limits specified in section 3318.29 of the Revised Code, the
interest rate or rates or the maximum interest rate, the date of
the obligations and the dates of payment of interest thereon,
their denomination, and the establishment within or without the
state of a place or places of payment of bond service charges.
Sections 9.98 to 9.983 of the Revised Code are applicable to
obligations issued under this section, subject to any applicable
limitation under section 3318.29 of the Revised Code. The
purpose of such obligations may be stated in the bond proceedings
in terms describing the general purpose or purposes to be served.
The bond proceedings shall also provide, subject to the
provisions of any other applicable bond proceedings, for the
pledge of all, or such part as the issuing authority may
determine, of the pledged receipts and the applicable special
fund or funds to the payment of bond service charges, which
pledges may be made either prior or subordinate to other
expenses, claims, or payments, and may be made to secure the
obligations on a parity with obligations theretofore or
thereafter issued, if and to the extent provided in the bond
proceedings. The pledged receipts and special funds so pledged
and thereafter received by the state are immediately subject to
the lien of such pledge without any physical delivery thereof or
further act, and the lien of any such pledges is valid and
binding against all parties having claims of any kind against the
state or any governmental agency of the state, irrespective of
whether such parties have notice thereof, and shall create a
perfected security interest for all purposes of Chapter 1309. of
the Revised Code, without the necessity for separation or
delivery of funds or for the filing or recording of the bond
proceedings by which such pledge is created or any certificate,
statement or other document with respect thereto; and the pledge
of such pledged receipts and special funds is effective and the
money therefrom and thereof may be applied to the purposes for
which pledged without necessity for any act of appropriation,
except as required by section 3770.06 of the Revised Code. Every
pledge, and every covenant and agreement made with respect
thereto, made in the bond proceedings may therein be extended to
the benefit of the owners and holders of obligations authorized
by this section, and to any trustee therefor, for the further
security of the payment of the bond service charges.
(D) The bond proceedings may contain additional provisions
as to:
(1) The redemption of obligations prior to maturity at the
option of the issuing authority at such price or prices and under
such terms and conditions as are provided in the bond
proceedings;
(2) Other terms of the obligations;
(3) Limitations on the issuance of additional obligations;
(4) The terms of any trust agreement or indenture securing
the obligations or under which the same may be issued;
(5) The deposit, investment and application of special
funds, and the safeguarding of moneys on hand or on deposit,
without regard to Chapter 131., 133., or 135. of the Revised
Code, but subject to any special provisions of sections 3318.21
to 3318.29 of the Revised Code, with respect to particular funds
or moneys, provided that any bank or trust company that acts as
depository of any moneys in the special funds may furnish such
indemnifying bonds or may pledge such securities as required by
the issuing authority;
(6) Any or every provision of the bond proceedings being
binding upon such officer, board, commission, authority, agency,
department, or other person or body as may from time to time have
the authority under law to take such actions as may be necessary
to perform all or any part of the duty required by such
provision;
(7) Any provision that may be made in a trust agreement
or indenture;
(8) The lease or sublease of any interest of the school district or the state
in one or more projects as defined in division (C) of section 3318.01 of the
Revised Code, or in one or more permanent improvements, to or from the issuing
authority, as provided in one or more lease or sublease agreements between the
school or the state and the issuing authority;
(9) Any other or additional agreements with the holders of
the obligations, or the trustee therefor, relating to the
obligations or the security therefor, including in the case of
obligations issued to provide moneys for the school district
facilities fund the assignment of security obtained or to be
obtained for loans under section 3318.24 of the Revised Code.
(E) The obligations may have the great seal of the state
or a facsimile thereof affixed thereto or printed thereon. The
obligations and any coupons pertaining to obligations shall be
signed or bear the facsimile signature of the issuing authority.
Any obligations or coupons may be executed by the person who, on
the date of execution, is the proper issuing authority although
on the date of such bonds or coupons such person was not the
issuing authority. In case the issuing authority whose signature
or a facsimile of whose signature appears on any such obligation
or coupon ceases to be the issuing authority before delivery
thereof, such signature or facsimile is nevertheless valid and
sufficient for all purposes as if the issuing authority had
remained the issuing
authority until such delivery; and in case the seal to be affixed
to obligations has been changed after a facsimile of the seal has
been imprinted on such obligations, such facsimile seal shall
continue to be sufficient as to such obligations and obligations
issued in substitution or exchange therefor.
(F) All obligations are negotiable instruments and
securities under Chapter 1308. of the Revised Code, subject to
the provisions of the bond proceedings as to registration. The
obligations may be issued in coupon or in registered form, or
both, as the issuing authority determines. Provision may be made
for the registration of any obligations with coupons attached
thereto as to principal alone or as to both principal and
interest, their exchange for obligations so registered, and for
the conversion or reconversion into obligations with coupons
attached thereto of any obligations registered as to both
principal and interest, and for reasonable charges for such
registration, exchange, conversion, and reconversion.
(G) Obligations may be sold at public sale or at private
sale, as determined in the bond proceedings.
(H) Pending preparation of definitive obligations, the
issuing authority may issue interim receipts or certificates
which shall be exchanged for such definitive obligations.
(I) In the discretion of the issuing authority,
obligations may be secured additionally by a trust agreement or
indenture between the issuing authority and a corporate trustee
which may be any trust company or bank having its principal place
of business within the state. Any such agreement or indenture
may contain the resolution or order authorizing the issuance of
the obligations, any provisions that may be contained in any bond
proceedings, and other provisions that are customary or
appropriate in an agreement or indenture of such type, including,
but not limited to:
(1) Maintenance of each pledge, trust agreement,
indenture, or other instrument comprising part of the bond
proceedings until the state has fully paid the bond service
charges on the obligations secured thereby, or provision therefor
has been made;
(2) In the event of default in any payments required to be
made by the bond proceedings, or any other agreement of the
issuing authority made as a part of the contract under which the
obligations were issued, enforcement of such payments or
agreement by mandamus, the appointment of a receiver, suit in
equity, action at law, or any combination of the foregoing;
(3) The rights and remedies of the holders of obligations
and of the trustee, and provisions for protecting and enforcing
them, including limitations on rights of individual holders of
obligations;
(4) The replacement of any obligations that become
mutilated or are destroyed, lost, or stolen;
(5) Such other provisions as the trustee and the issuing
authority agree upon, including limitations, conditions, or
qualifications relating to any of the foregoing.
(J) Any holder of obligations or a trustee under the bond
proceedings, except to the extent that the holder's or
trustee's rights are restricted
by the bond proceedings, may by any suitable form of legal
proceedings, protect and enforce any rights under the laws of
this state or granted by such bond proceedings. Such rights
include the right to compel the performance of all duties of the
issuing authority, the state board of education COMMISSION, or
the director
of budget and management required by sections 3318.21 to 3318.29
of the Revised Code or the bond proceedings; to enjoin unlawful
activities; and in the event of default with respect to the
payment of any bond service charges on any obligations or in the
performance of any covenant or agreement on the part of the
issuing authority, the state board of education COMMISSION, or
the director
of budget and management in the bond proceedings, to apply to a
court having jurisdiction of the cause to appoint a receiver to
receive and administer the pledged receipts and special funds,
other than those in the custody of the treasurer of state or the
state board of education COMMISSION, which are pledged to the
payment of the
bond service charges on such obligations or which are the subject
of the covenant or agreement, with full power to pay, and to
provide for payment of bond service charges on, such obligations,
and with such powers, subject to the direction of the court, as
are accorded receivers in general equity cases, excluding any
power to pledge additional revenues or receipts or other income
or moneys of the issuing authority or the state or governmental
agencies of the state to the payment of such principal and
interest and excluding the power to take possession of, mortgage,
or cause the sale or otherwise dispose of any permanent
improvement.
Each duty of the issuing authority and the issuing
authority's officers and employees, and of each governmental
agency and its officers, members, or employees, undertaken
pursuant to the bond proceedings or any agreement or loan made
under authority of sections 3318.21 to 3318.29 of the Revised
Code, and in every agreement by or with the issuing authority, is
hereby established as a duty of the issuing authority, and of
each such officer, member, or employee having authority to
perform such duty, specifically enjoined by the law resulting
from an office, trust, or station within the meaning of section
2731.01 of the Revised Code.
The person who is at the time the issuing authority, or the
issuing authority's officers or employees, are not liable in
their personal capacities on any obligations issued by the
issuing authority or any agreements of or with the issuing
authority.
(K) The issuing authority may authorize and issue
obligations for the refunding, including funding and retirement,
and advance refunding with or without payment or redemption prior
to maturity, of any obligations previously issued by the issuing
authority. Such obligations may be issued in amounts sufficient
for payment of the principal amount of the prior obligations, any
redemption premiums thereon, principal maturities of any such
obligations maturing prior to the redemption of the remaining
obligations on a parity therewith, interest accrued or to accrue
to the maturity dates or dates of redemption of such obligations,
and any allowable costs including expenses incurred or to be
incurred in connection with such issuance and such refunding,
funding, and retirement. Subject to the bond proceedings
therefor, the portion of proceeds of the sale of obligations
issued under this division to be applied to bond service charges
on the prior obligations shall be credited to an appropriate
account held by the trustee for such prior or new obligations or
to the appropriate account in the bond service fund for such
obligations. Obligations authorized under this division shall be
deemed to be issued for those purposes for which such prior
obligations were issued and are subject to the provisions of this
section pertaining to other obligations, except as otherwise
provided in this section; provided that, unless otherwise
authorized by the general assembly, any limitations imposed by
the general assembly pursuant to this section with respect to
bond service charges applicable to the prior obligations shall be
applicable to the obligations issued under this division to
refund, fund, advance refund or retire such prior obligations.
(L) The authority to issue obligations under this section
includes authority to refund or refinance any obligations
previously issued by the state under sections 3318.21 to 3318.29 of the
Revised Code.
The authority to issue obligations under this section also
includes authority to issue obligations in the form of bond
anticipation notes and to renew the same from time to time by the
issuance of new notes. The holders of such notes or interest
coupons pertaining thereto shall have a right to be paid solely
from the pledged receipts and special funds that may be pledged
to the payment of the bonds anticipated, or from the proceeds of
such bonds or renewal notes, or both, as the issuing authority
provides in the resolution or order authorizing such notes. Such
notes may be additionally secured by covenants of the issuing
authority to the effect that the issuing authority and the state
will do such or all things necessary for the issuance of such
bonds or renewal notes in appropriate amount, and apply the
proceeds thereof to the extent necessary, to make full payment of
the principal of and interest on such notes at the time or times
contemplated, as provided in such resolution or order. For such
purpose, the issuing authority may issue bonds or renewal notes
in such principal amount and upon such terms as may be necessary
to provide funds to pay when required the principal of and
interest on such notes, notwithstanding any limitations
prescribed by or for purposes of this section. Subject to this
division, all provisions for and references to obligations in
this section are applicable to notes authorized under this
division.
The issuing authority in the bond proceedings authorizing
the issuance of bond anticipation notes shall set forth for such
bonds an estimated interest rate and a schedule of principal
payments for such bonds and the annual maturity dates thereof,
and for purposes of any limitation on bond service charges
prescribed under section 3318.29 of the Revised Code, the amount
of bond service charges on such bond anticipation notes shall be
deemed to be the bond service charges for the bonds anticipated
thereby as set forth in the bond proceedings applicable to such
notes, but this provision does not modify any authority in this
section to pledge pledged receipts and special funds to, and
covenant to issue bonds to fund, the payment of principal of and
interest and any premium on such notes.
(M) Obligations issued under this section are lawful
investments for banks, societies for savings, savings and loan
associations, deposit guarantee associations, trust companies,
trustees, fiduciaries, insurance companies, including domestic
for life and domestic not for life, trustees or other officers
having charge of sinking and bond retirement or other special
funds of political subdivisions and taxing districts of this
state, the commissioners of the sinking fund of the state, the
administrator of workers' compensation,
the state teachers retirement system, the public employees
retirement system, the school employees retirement system, and
the police and firemen's disability and pension fund,
notwithstanding any other provisions of the Revised Code or rules
adopted pursuant thereto by any governmental agency of the state
with respect to investments by them, and also are acceptable as
security for the deposit of public moneys.
(N) Unless otherwise provided in any applicable bond
proceedings, moneys to the credit of or in the special funds
established by or pursuant to this section may be invested by or
on behalf of the issuing authority only in notes, bonds, or other
obligations of the United States, or of any agency or
instrumentality of the United States,
obligations guaranteed as to principal
and interest by the United States, obligations of this state or
any political subdivision of this state, and certificates of
deposit of
any national bank located in this state and any bank, as defined
in section 1101.01 of the Revised Code, subject to inspection by
the superintendent of financial institutions. If the law
or the instrument
creating a trust pursuant to division (I) of this section
expressly permits investment in direct obligations of the United
States or an agency of the United States,
unless expressly prohibited by the
instrument, such moneys also may be invested in no front end load
money market mutual funds consisting exclusively of obligations
of the United States or an agency of the United States and in repurchase
agreements, including those issued by the fiduciary itself,
secured by obligations of the United States or an agency of the United States;
and in collective investment funds established in
accordance with section
1111.14 of the Revised Code and consisting exclusively
of any such securities,
notwithstanding division (A)(1)(c) of that section. The
income from such
investments shall be credited to such funds
as the issuing authority determines, and such investments may be
sold at such times as the issuing authority determines or
authorizes.
(O) Provision may be made in the applicable bond
proceedings for the establishment of separate accounts in the
bond service fund and for the application of such accounts only
to the specified bond service charges on obligations pertinent to
such accounts and bond service fund and for other accounts
therein within the general purposes of such fund. Unless
otherwise provided in any applicable bond proceedings, moneys to
the credit of or in the several special funds established
pursuant to this section shall be disbursed on the order of the
treasurer of state, provided that no such order is required for
the payment from the bond service fund when due of bond service
charges on obligations.
(P) The issuing authority may pledge all, or such portion
as the issuing authority determines, of the pledged receipts to
the payment of bond service charges on obligations issued under
this section, and for the establishment and maintenance of any
reserves, as provided in the bond proceedings, and make other
provisions therein with respect to pledged receipts as authorized
by this chapter, which provisions shall be controlling
notwithstanding any other provisions of law pertaining thereto.
(Q) The issuing authority may covenant in the bond
proceedings, and any such covenants shall be controlling
notwithstanding any other provision of law, that the state and
applicable officers and governmental agencies of the state,
including the general assembly, so long as any obligations
are outstanding, shall:
(1) Maintain statutory authority for and cause to be
operated the state lottery, including the transfers to and from
the lottery profits education fund created in section 3770.06 of
the Revised Code so that the pledged receipts shall be sufficient
in amount to meet bond service charges, and the establishment and
maintenance of any reserves and other requirements provided for
in the bond proceedings;
(2) Take or permit no action, by statute or otherwise,
that would impair the exclusion from gross income for federal
income tax purposes of the interest on any obligations designated
by the bond proceeding as tax-exempt obligations.
(R) There is hereby created the school building program
bond service fund, which shall be in the custody of the treasurer
of state but shall be separate and apart from and not a part of
the state treasury. All moneys received by or on account of the
issuing authority or state agencies and required by the
applicable bond proceedings, consistent with this section, to be
deposited, transferred, or credited to the school building
program bond service fund, and all other moneys transferred or
allocated to or received for the purposes of the fund, shall be
deposited and credited to such fund and to any separate accounts
therein, subject to applicable provisions of the bond
proceedings, but without necessity for any act of appropriation,
except as required by section 3770.06 of the Revised Code. During the period
beginning with the date of the first issuance
of obligations and continuing during such time as any such
obligations are outstanding, and so long as moneys in the school
building program bond service fund are insufficient to pay all
bond service charges on such obligations becoming due in each
year, a sufficient amount of the moneys from the lottery profits
education fund included in pledged receipts, subject to
appropriation for such purpose as provided in section 3770.06 of
the Revised Code, are committed and shall be paid to the school
building program bond service fund in each year for the purpose
of paying the bond service charges becoming due in that year. The school
building program bond service fund is a trust fund and
is hereby pledged to the payment of bond service charges solely
on obligations issued to provide moneys for the school building
program assistance fund to the extent provided in the applicable
bond proceedings, and payment thereof from such fund shall be
made or provided for by the treasurer of state in accordance with
such bond proceedings without necessity for any act of
appropriation except as required by section 3770.06 of the
Revised Code.
(S) There is hereby created the school facilities bond
service fund, which shall be in the custody of the treasurer of
state but shall be separate and apart from and not a part of the
state treasury. All moneys received by or on account of the
issuing authority or state agencies and required by the
applicable bond proceedings, consistent with this section, to be
deposited, transferred, or credited to the school facilities bond
service fund, and all other moneys transferred or allocated to or
received for the purposes of the fund, shall be deposited and
credited to such fund and to any separate accounts therein,
subject to applicable provisions of the bond proceedings, but
without necessity for any act of appropriation. During the
period beginning with the date of the first issuance of
obligations and continuing during such time as any such
obligations are outstanding, and so long as moneys in the school
facilities bond service fund are insufficient to pay all bond
service charges on such obligations becoming due in each year, a
sufficient amount of the moneys from the public school building
fund included in pledged receipts are committed and shall be paid
to the bond service fund in each year for the purpose of paying
the bond service charges becoming due in that year. The school
facilities bond service fund is a trust fund and is hereby
pledged to the payment of bond service charges on obligations
issued to provide moneys for the school districts facilities fund
to the extent provided in the applicable bond proceedings, and
payment thereof from such fund shall be made or provided for by
the treasurer of state in accordance with such bond proceedings
without necessity for any act or appropriation.
(T) The obligations, the transfer thereof, and the income
therefrom, including any profit made on the sale thereof,
at all times shall be free from taxation within the state.
Sec. 3318.27. There shall be credited to the school
facilities bond service fund the moneys received by the state
from the repayment of loans, including interest thereon, made
from the school districts facilities fund with moneys derived
from the proceeds of the sale of obligations under section
3318.26 of the Revised Code. Such moneys shall be applied as
provided in sections 3318.21 to 3318.29 of the Revised Code.
Accounts may be established by the state board of education
OHIO SCHOOL FACILITIES COMMISSION in
the school districts facilities fund for particular projects or
otherwise. Income from the investment of moneys in the school
districts facilities fund shall be credited to that fund and, as
may be provided in bond proceedings, to particular accounts
therein. The treasurer of state may withdraw from the school
districts facilities fund or the school building program
assistance fund, or, subject to provisions of the applicable bond
proceedings, from any special funds established pursuant to the
bond proceedings, or from any accounts in such funds, any amounts
of investment income required to be rebated and paid to the
federal government in order to maintain the exemption from
federal income taxation of interest on obligations issued under
sections 3318.21 to 3318.29 of the Revised Code, which withdrawal
and payment may be made without necessity for appropriation.
Sec. 3318.29. The maximum maturity of any obligations
issued pursuant to section 3318.26 of the Revised Code to provide
moneys for the school building program assistance fund shall be
ten years. The terms of the obligations shall be such that in
any fiscal year the aggregate amount of moneys from the lottery
profits education fund, and not from other sources, that are
pledged to pay bond service charges on obligations issued to
provide moneys for the school building program assistance fund
shall not exceed ten million dollars.
As used in this section, "other sources" includes the
annual investment income on special funds to the extent the
income will be available for payment of any bond service charges
in lieu of use of moneys from the lottery profits education fund.
The annual investment income shall be estimated on the basis of
the expected funding of those special funds and assumed
investment earnings thereon at a rate equal to the weighted
average yield on investments of those special funds determined as
of any date within sixty days immediately preceding the date of
issuance of the bonds in respect of which the determination is
being made.
The determinations required by this section shall be made
by the treasurer of state at the time of issuance of an issue of
obligations and shall be conclusive for purposes of such issuance
of obligations from and after their issuance and delivery.
The maximum maturity of obligations issued pursuant to
section 3318.26 of the Revised Code to provide moneys for the
school district facilities fund shall not exceed the maximum
maturity of the loan made from such fund pursuant to section
3318.24 of the Revised Code utilizing the proceeds of such
obligations or ten years, whichever is less. The terms of the
obligations shall be such that in any fiscal year the aggregate
amount of moneys from the public school building fund that are
pledged to pay bond service charges on obligations issued to
provide moneys for the school districts facilities fund shall not
exceed an amount which shall be established by the state board of
education OHIO SCHOOL FACILITIES COMMISSION.
Sec. 3318.30. (A) THERE IS HEREBY CREATED
THE OHIO SCHOOL FACILITIES
COMMISSION. THE COMMISSION SHALL ADMINISTER THE PROVISION OF
FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS FOR THE ACQUISITION OR
CONSTRUCTION OF CLASSROOM FACILITIES IN ACCORDANCE WITH SECTIONS
3318.01 TO 3318.31 OF THE
REVISED CODE.
THE COMMISSION IS A BODY CORPORATE AND POLITIC, AN AGENCY
OF STATE GOVERNMENT AND AN INSTRUMENTALITY OF THE STATE,
PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS OF THIS STATE. THE
CARRYING OUT OF THE PURPOSES AND THE EXERCISE BY THE COMMISSION
OF ITS POWERS CONFERRED BY SECTIONS 3318.01 TO 3318.31 OF THE
REVISED CODE ARE ESSENTIAL PUBLIC
FUNCTIONS AND PUBLIC PURPOSES OF THE STATE. THE COMMISSION MAY,
IN ITS OWN NAME, SUE AND BE SUED, ENTER INTO CONTRACTS, AND
PERFORM ALL THE POWERS AND DUTIES GIVEN TO IT BY SECTIONS
3318.01 TO 3318.31 OF THE
REVISED CODE BUT IT DOES NOT HAVE AND
SHALL NOT EXERCISE THE POWER OF EMINENT DOMAIN.
(B) THE COMMISSION SHALL
CONSIST OF FIVE MEMBERS, THREE OF WHOM ARE VOTING MEMBERS. THE
VOTING MEMBERS OF THE COMMISSION SHALL BE THE DIRECTOR OF THE
OFFICE OF BUDGET AND MANAGEMENT, THE DIRECTOR
OF ADMINISTRATIVE SERVICES, AND THE SUPERINTENDENT OF PUBLIC
INSTRUCTION, OR THEIR DESIGNEES. OF THE NONVOTING MEMBERS, ONE
SHALL BE A MEMBER OF THE SENATE APPOINTED BY THE PRESIDENT OF
THE SENATE AND ONE SHALL BE A MEMBER OF THE HOUSE OF
REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE.
NONVOTING MEMBERS SHALL SERVE AS MEMBERS OF THE COMMISSION
DURING THE LEGISLATIVE BIENNIUM FOR WHICH THEY ARE APPOINTED,
EXCEPT THAT ANY SUCH MEMBER WHO CEASES TO BE A MEMBER OF THE
LEGISLATIVE HOUSE FROM WHICH THE MEMBER WAS APPOINTED SHALL
CEASE TO BE A MEMBER OF THE COMMISSION. EACH NONVOTING MEMBER
SHALL BE APPOINTED WITHIN THIRTY-ONE DAYS OF THE END OF THE TERM
OF THAT MEMBER'S PREDECESSOR. SUCH MEMBERS MAY BE REAPPOINTED.
VACANCIES OF NONVOTING MEMBERS SHALL BE FILLED IN THE MANNER
PROVIDED FOR ORIGINAL APPOINTMENTS.
MEMBERS OF THE COMMISSION SHALL SERVE WITHOUT
COMPENSATION.
AFTER THE INITIAL NONVOTING MEMBERS OF THE COMMISSION HAVE
BEEN APPOINTED, THE COMMISSION SHALL MEET AND ORGANIZE BY
ELECTING VOTING MEMBERS AS THE CHAIRPERSON AND VICE-CHAIRPERSON
OF THE COMMISSION, WHO SHALL HOLD THEIR
OFFICES UNTIL THE NEXT ORGANIZATIONAL MEETING OF THE COMMISSION.
ORGANIZATIONAL MEETINGS OF THE COMMISSION SHALL BE HELD AT THE
FIRST MEETING OF EACH CALENDAR YEAR. AT EACH ORGANIZATIONAL
MEETING, THE COMMISSION SHALL ELECT FROM AMONG ITS VOTING
MEMBERS A CHAIRPERSON AND VICE-CHAIRPERSON, WHO SHALL SERVE UNTIL THE NEXT
ANNUAL
ORGANIZATIONAL MEETING. THE COMMISSION SHALL ADOPT RULES
PURSUANT TO SECTION 111.15 OF THE
REVISED CODE FOR THE CONDUCT OF ITS
INTERNAL BUSINESS AND SHALL KEEP A JOURNAL OF ITS PROCEEDINGS.
INCLUDING THE ORGANIZATIONAL MEETING, THE COMMISSION SHALL MEET
AT LEAST ONCE EACH CALENDAR QUARTER.
TWO VOTING MEMBERS OF THE COMMISSION CONSTITUTE A QUORUM,
AND THE AFFIRMATIVE VOTE OF TWO MEMBERS IS NECESSARY FOR
APPROVAL OF ANY ACTION TAKEN BY THE COMMISSION. A VACANCY IN
THE MEMBERSHIP OF THE COMMISSION DOES NOT IMPAIR A QUORUM FROM
EXERCISING ALL THE RIGHTS AND PERFORMING ALL THE DUTIES OF THE
COMMISSION. MEETINGS OF THE COMMISSION MAY BE HELD ANYWHERE IN
THE STATE, AND SHALL BE HELD IN COMPLIANCE WITH SECTION 121.22
of the Revised Code.
(C) THE COMMISSION SHALL
FILE AN ANNUAL REPORT OF ITS ACTIVITIES AND FINANCES WITH THE
GOVERNOR, SPEAKER OF THE HOUSE OF REPRESENTATIVES, PRESIDENT OF
THE SENATE, AND CHAIRPERSONS OF THE HOUSE AND SENATE FINANCE
COMMITTEES.
(D) THE COMMISSION SHALL
BE EXEMPT FROM THE REQUIREMENTS OF SECTIONS 101.82, 101.84, AND
101.86 OF THE REVISED CODE.
Sec. 3318.31. THE
OHIO SCHOOL FACILITIES
COMMISSION MAY PERFORM ANY ACT AND ENSURE THE PERFORMANCE OF ANY
FUNCTION NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF,
AND EXERCISE THE POWERS GRANTED UNDER, SECTIONS 3318.01 TO
3318.31 OF THE REVISED CODE, INCLUDING ANY OF THE
FOLLOWING:
(A) EMPLOY AND FIX THE
COMPENSATION OF SUCH EMPLOYEES
AS WILL FACILITATE THE ACTIVITIES AND PURPOSES OF THE
COMMISSION, AND WHO SHALL SERVE AT THE PLEASURE OF THE COMMISSION.
(B) ADOPT, AMEND, AND
RESCIND, PURSUANT TO SECTION 111.15 OF THE
REVISED CODE, RULES FOR THE
ADMINISTRATION OF SECTIONS 3318.01 TO 3318.31 OF THE
REVISED CODE.
(C) CONTRACT WITH,
RETAIN THE SERVICES OF, OR DESIGNATE, AND FIX THE COMPENSATION
OF, SUCH AGENTS, ACCOUNTANTS, ATTORNEYS, CONSULTANTS, ADVISERS,
AND OTHER INDEPENDENT CONTRACTORS AS MAY BE NECESSARY OR
DESIRABLE TO CARRY OUT THE PURPOSES OF SECTIONS 3318.01 TO
3318.31 OF THE REVISED CODE.
(D) RECEIVE AND ACCEPT
ANY GIFTS, GRANTS, DONATIONS, AND PLEDGES, AND RECEIPTS
THEREFROM, TO BE USED FOR THE PURPOSES OF SECTIONS 3318.01 TO
3318.31 OF THE REVISED CODE.
(E) MAKE AND ENTER INTO
ALL CONTRACTS, COMMITMENTS, AND AGREEMENTS, AND EXECUTE ALL
INSTRUMENTS, NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF ITS
DUTIES AND THE EXECUTION OF ITS RIGHTS AND POWERS UNDER SECTIONS
3318.01 TO 3318.31 OF THE
REVISED CODE.
Sec. 3318.35. (A) AS
USED IN THIS SECTION, "OHIO
SCHOOL FACILITIES COMMISSION" HAS THE SAME MEANING AS IN SECTION
3318.01 OF THE REVISED CODE.
(B) THE
OHIO SCHOOL FACILITIES
COMMISSION SHALL ESTABLISH AND ADMINISTER THE EMERGENCY SCHOOL
BUILDING REPAIR PROGRAM. UNDER THE PROGRAM, THE COMMISSION
SHALL DISTRIBUTE MONEYS APPROPRIATED BY THE GENERAL ASSEMBLY FOR
SUCH PURPOSE TO SCHOOL DISTRICTS BEGINNING WITH THOSE DISTRICTS
WITH AN ADJUSTED PER PUPIL VALUATION LESS THAN THE THRESHOLD
VALUATION DEFINED IN SECTION 3317.0213 OF THE
REVISED CODE. THE COMMISSION SHALL
DETERMINE THE NECESSITY OF EMERGENCY REPAIRS BASED ON AN ON-SITE
INSPECTION OF THE SCHOOL BUILDINGS IN A SCHOOL DISTRICT. ANY
SCHOOL DISTRICT THAT RECEIVES MONEYS UNDER THIS SECTION SHALL
EXPEND THEM ONLY TO REPAIR THE FOLLOWING:
(1) HEATING SYSTEMS;
(2) FLOORS, ROOFS, AND EXTERIOR DOORS;
(3) AIR DUCTS AND OTHER AIR VENTILATION
DEVICES;
(4) EMERGENCY EXIT OR EGRESS PASSAGEWAY LIGHTING;
(5) FIRE ALARM SYSTEMS;
(6) HANDICAPPED ACCESS NEEDS;
(7) SEWAGE SYSTEMS;
(8) WATER SUPPLIES;
(9) ASBESTOS REMOVAL; AND
(10) ANY OTHER REPAIRS TO A SCHOOL BUILDING
THAT MEET THE REQUIREMENTS OF THE LIFE SAFETY CODE, AS
INTERPRETED BY THE COMMISSION.
(C) NO MONEYS FOR
EMERGENCY SCHOOL BUILDING REPAIR UNDER THIS SECTION SHALL BE
DISTRIBUTED TO A SCHOOL DISTRICT TO REPAIR A SCHOOL BUILDING
THAT THE COMMISSION REASONABLY BELIEVES WILL BE SUBSTANTIALLY
REPLACED WITHIN THE NEXT SEVEN FISCAL YEARS PURSUANT TO SECTIONS
3318.01 TO 3318.31 OF THE
REVISED CODE.
(D) AFTER RECEIPT OF
MONEYS FROM THE EMERGENCY SCHOOL BUILDING REPAIR PROGRAM, NO
SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE ADDITIONAL MONEYS
FROM THE PROGRAM FOR THE FOLLOWING FIVE FISCAL YEARS UNLESS A
SCHOOL BUILDING IN THAT DISTRICT IS DAMAGED DUE TO AN ACT OF
GOD THAT COULD NOT HAVE BEEN
PREVENTED BY REASONABLE MAINTENANCE OF THAT BUILDING.
Sec. 4115.04. Every public authority authorized to
contract for or construct with its own forces a public
improvement, before advertising for bids or undertaking such
construction with its own forces, shall have the bureau of employment services
determine the prevailing rates of wages of
mechanics and laborers in accordance with section 4115.05 of the
Revised Code for the class of work called for by the public
improvement, in the locality where the work is to be performed.
Such schedule of wages shall be attached to and made part of the
specifications for the work, and shall be printed on the bidding
blanks where the work is done by contract. A copy of the bidding
blank shall be filed with the bureau before such contract is awarded. A
minimum rate of wages for
common laborers, on work coming under the jurisdiction of the
department of transportation, shall be fixed in each county of
the state by said department of transportation, in accordance
with section 4115.05 of the Revised Code.
Sections 4115.03 to 4115.16 of the Revised Code do not apply to:
(A) Public improvements in any case where the federal government or any of
its agencies
furnishes by loan or grant all or any part of the funds used in
constructing such improvements, provided the federal government
or any of its agencies prescribes predetermined minimum wages to
be paid to mechanics and laborers employed in the construction of
such improvements;
(B) A participant of the subsidized employment program established
under section 5101.82 of the Revised Code or the work experience program
established under section 5101.83 of the Revised Code when a public authority
directly uses
the labor of the participant to construct a public improvement;
(C) PUBLIC IMPROVEMENTS UNDERTAKEN BY, OR UNDER CONTRACT FOR, THE
BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OR THE GOVERNING BOARD OF ANY
EDUCATIONAL SERVICE CENTER.
Section 2. That existing sections 133.06, 3313.372, 3318.01, 3318.011,
3318.02,
3318.03, 3318.04, 3318.05, 3318.051, 3318.06, 3318.07, 3318.08,
3318.081, 3318.091, 3318.10, 3318.111, 3318.12, 3318.13,
3318.14, 3318.15, 3318.16, 3318.17, 3318.18, 3318.19, 3318.22,
3318.23, 3318.24, 3318.25, 3318.26, 3318.27, 3318.29, and 4115.04 of the
Revised Code are hereby repealed.
Section 3. All personnel, equipment, materials, assets, liabilities, and
records of the Department of Education, irrespective of form or
medium, deemed necessary by the Ohio School Facilities
Commission to implement the provisions of Chapter 3318. of the Revised Code
shall be transferred to the Commission not later than one hundred twenty days
after the effective date of this section, in accordance with a transition plan
which shall be developed and appproved by the Commission in consultation with
the Department.
All appropriations, encumbrances, and funds of the Department,
including the Public School Building Fund (Fund 021) and the
School Building Assistance Fund (Fund 032), deemed necessary by
the Commission to implement the provisions of Chapter 3318. of
the Revised Code, shall be transferred to the Commission
not later than one hundred twenty days after the effective date of
this section in accordance with the transition plan.
Any business commenced but not completed by the Department on
the effective date of this section relating to the
implementation of Chapter 3318. of the Revised Code and the
functions transferred by this act shall continue to be
administered by the Department for a period of one hundred
twenty days after the effective date of this section or until
the transition plan described in this section is approved by the
Ohio School Facilities Commission, whichever occurs first.
The Department shall provide the Commission whatever
administrative assistance the Commission requires during the
period of transition, which assistance shall be specified in the
transition plan described in this section.
Wherever any law, contract, or other document refers to the
Department, the State Board of Education, or the Superintendent
of Public Instruction in regard to the implementation or
administration of Chapter 3318. of the Revised Code, the
references shall be deemed to refer to the Commission or the
Director of the Commission. No action or proceeding pending on
the effective date of this act relating to the implementation or
administration of Chapter 3318. of the Revised Code is affected
by the transfer. In all such actions and proceedings, the
Commission or the Director shall be substituted as a party upon
application by the receiving entity to the court or other
appropriate tribunal.
Section 4. School building assistance projects proposed to
be funded pursuant to Chapter 3318. of the Revised Code that
were on a list approved by the State Board of Education as of
January 1993, but which projects had not yet obtained voter
approval by September 17, 1996, shall be subject to all
provisions of Chapter 3318. of the Revised Code in effect prior
to September 17, 1996, except that the provisions of division
(B) of section 3318.05 of the Revised Code, as that section
existed after September 17, 1996, shall apply to those projects
with respect to the disposition of the half mill levy required
by that section.
Section 5. SFC SCHOOL FACILITIES COMMISSION
General Revenue Fund
GRF | 230-428 | Lease Rental Payments | $ | 21,780,000 | $ | 36,030,000 |
TOTAL GRF General Revenue Fund | $ | 21,780,000 | $ | 36,030,000 |
State Special Revenue Fund
5E3 | 230-644 | Operating
Expenses | $ | 2,000,000 | $ | 2,400,000 |
Total SSR State Special Revenue Fund
Group | $ | 2,000,000 | $ | 2,400,000 |
TOTAL ALL BUDGET FUND GROUPS | $ | 23,780,000 | $ | 38,430,000 |
Operating Expenses
The foregoing appropriation item 230-644, Operating Expenses,
shall be used by the Ohio School Facilities Commission to carry
out its responsibilities pursuant to this section and Chapter
3318. of the Revised Code.
There is hereby created in the state treasury the Ohio School
Facilities Commission Fund (Fund 5E3). The fund shall consist
of transfers of moneys authorized by the General Assembly,
grants and other revenues described in division (D) of section 3318.31 of the
Revised Code, and investment earnings of the fund. Moneys
credited to the fund may be used by the commission for staffing
and other administrative expenses, to conduct evaluations of
school facilities, to prepare building design specifications, to
provide project management services, and for any other purposes
deemed necessary by the commission consistent with Chapter 3318.
of the Revised Code.
Within 10 days of the effective date of this section, the Director of Budget
and Management shall transfer $2,000,000 by intrastate transfer
voucher from the School Facilities Commission's appropriation item 230-428,
Lease Rental Payments, to the Ohio School Facilities Commission
Fund (Fund 5E3). In fiscal year 1999, by July 10, 1998, the Director of
Budget and Management shall transfer $2,400,000 by intrastate transfer voucher
from the School Facilities Commission's line item 230-428 Lease Rental
Payments to the Ohio School Facilities Commission Fund (Fund 5E3). Investment
earnings to the School Building Assistance Fund (Fund 032) in excess of the
amounts required to meet estimated federal arbitrage rebate requirements may
be transferred at the request of the Ohio School Facilities Commission by the
Director of Budget and Management to the Ohio School Facilities Commission
Fund (Fund 5E3). Investment earnings to the Public School Building Fund (Fund
021) and repayments to the Public School Building Fund (Fund 021) made
pursuant to Chapter 3318. of the Revised Code may be tranferred at the request
of the Ohio School Facilities Commission by the Director of Budget and
Management to the Ohio School Facilities Commission Fund (Fund 5E3).
Lease Rental Payments
After the transfers described in this section under the heading, "Operating
Expenses" are made, the remaining appropriation shall be used by the School
Facilities Commission
to
meet all payments at the times required to be made during the period from July
1, 1997, to June 30, 1999, to pay bond service charges on obligations issued
pursuant to Chapter 3318. of the Revised Code.
Section 6. Debt Service AppropriationsGeneral revenue appropriations to the School Facilities Commission
include $21,780,000 in fiscal year 1998 and $36,030,000 in fiscal
year 1999 for
appropriation item 230-428, Lease Rental Payments.
Of the $699,417,200 in fiscal year 1998 and $702,623,028 in
fiscal year 1999 that is estimated to be transferred from the
State Lottery Fund to the Lottery Profits Education Fund, up to
$21,280,000 in fiscal year 1998 and $31,530,000 in fiscal year 1999 shall
first be transferred from
the Lottery Profits Education Fund to the General Revenue Fund
for reimbursement of funds spent under appropriation item 230-428, Lease
Rental
Payments. These funds shall then be transferred by the Director
of Budget and Management to the School Building Program Bond
Service Fund pursuant to section 3770.06 of the Revised Code.
Section 7. All items set forth in this section are hereby
appropriated out of any moneys in the state treasury to the
credit of the School Building Program Assistance Fund (Fund
032). Revenues to the School Building Program Assistance Fund
shall consist of proceeds of obligations authorized to pay costs
of capital facilities as defined in section 3318.21 of the
Revised Code.
Appropriations
SFC SCHOOL FACILITIES COMMISSION
CAP-737 | School Building Program Assistance | $ | 300,000,000 |
Total School Facilities Commission | | $ | 300,000,000 |
School Building Assistance
Of the foregoing appropriation item CAP-737, School Building
Program Assistance, up to $200,000,000 shall be used by the Ohio
School Facilities Commission to provide funds to schools
that receive conditional approval by the Ohio School
Facilities Commission pursuant to Chapter 3318. of the Revised Code.
Of the foregoing appropriation item CAP-737, School Building Program
Assistance, up to $50,000,000 shall be used by the Ohio School Facilities
Commission to administer the Emergency School Building Repair Program,
pursuant to section 3318.35 of the Revised Code.
Of the foregoing appropriation item CAP-737, School Building
Program Assistance, notwithstanding Chapter 3318. of the Revised
Code, up to $100,000,000 shall be used by the Ohio School
Facilities Commission to provide funds to the big eight school
districts
to be used for major renovations and repairs of
school facilities. Funds shall be allocated to the school
districts on a per pupil basis, based on fiscal year 1997 total
average daily membership as defined in section 3317.03 of the
Revised Code. To be eligible to receive these funds, each school
district shall:
(1) Provide a 100 per cent match from funds that
are approved by the Ohio School Facilities Commission;
(2) Develop and submit a capital renovations plan for the use of
state and local funds subject to approval by the Ohio School
Facilities Commission.
As used in this section, "big eight school district" means a school district
that for fiscal year 1997 had a percentage of children residing
in the district and receiving Aid to Dependent Children greater
than thirty per cent, as reported pursuant to section 3317.10 of
the Revised Code, and had an average daily
membership greater than twelve thousand, as reported pursuant to
division (A) of section 3317.03
of the Revised Code.
Section 8. The Treasurer of State is hereby authorized to
issue and sell, in accordance with the provisions of Section 2i
of Article VIII, Ohio Constitution, and section 3318.26 of the
Revised Code, original obligations in an aggregate principal
amount not to exceed $300,000,000 in addition to the original
issuance of obligations heretofore authorized by prior acts of
the General Assembly. These authorized obligations shall be
issued to provide funds appropriated in this act for the School
Building Program Assistance Fund for the Ohio School Facilities
Commission to distribute pursuant to Chapter 3318.
of the Revised Code, the owners or holders of which shall have
no right to have excises or taxes levied by the General Assembly
for the payment of principal or interest thereon.
Section 9. The codified and uncodified sections of law
contained in this act, and the items of law of which the
codified and uncodified sections of law contained in this act
are composed, are not subject to the referendum. Therefore,
under Ohio Constitution, Article II, Section 1d and section
1.471 of the Revised Code, the codified and uncodified sections
of law contained in this act, and the items of law of which the
codified and uncodified sections of law contained in this act
are composed, go into immediate effect when this act becomes
law.
Section 10. Section 4115.04 of the Revised Code is presented in this act
as a composite of the section as amended by both
Sub. H.B. 167 and Am. Sub. S.B. 162 of the 121st General Assembly, with the
new language of
neither of the acts shown in capital letters. This is in
recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act.
|