To amend sections 3318.021, 3318.04, and 3318.36 and to enact sections 3318.084, 3318.311, and 3318.37 of the Revised Code to permanently set aside school facilities assistance moneys for school districts with exceptional needs, to phase-in an increased number of school districts that annually may participate in the School Building Assistance Expedited Local Partnership Program, and to make other changes to the Classroom Facilities Assistance Program.

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

Sec. 3318.021. Notwithstanding section 3318.02 of the Revised Code, IN EACH CALENDAR YEAR PRIOR TO 2005 the Ohio school facilities commission annually may conduct on-site visits to no more than five school districts in the twentieth to fortieth percentiles, AND IN CALENDAR YEAR 2005 AND IN EACH CALENDAR YEAR THEREAFTER THE COMMISSION MAY CONDUCT ON-SITE VISITS TO SCHOOL DISTRICTS IN THE TWENTIETH TO FIFTIETH PERCENTILES, as determined under section 3318.011 of the Revised Code, if a district board adopts a resolution certifying to the commission the board's intent to participate in the school building assistance expedited local partnership program under section 3318.36 of the Revised Code.

Sec. 3318.04. (A) If the Ohio school facilities commission makes a determination under section 3318.03 of the Revised Code in favor of constructing, acquiring, reconstructing, or making additions to a classroom facility, the project shall be conditionally approved. Such conditional approval shall be submitted to the controlling board for approval thereof. The controlling board shall forthwith approve or reject the commission's determination, conditional approval, the amount of the state's portion of the basic project cost, and, if the state's portion exceeds forty million dollars, the amount of the state's portion to be encumbered in the current fiscal biennium. In the event of approval thereof by the controlling board, the commission shall certify such conditional approval to the school district board and shall encumber from the total funds appropriated for the purpose of sections 3318.01 to 3318.20 of the Revised Code the amount of the state's portion of the basic project cost or, if the state's portion exceeds forty million dollars, the amount approved under this section to be encumbered in the current fiscal biennium.

The basic project cost for a project approved under this section shall not exceed the cost that would otherwise have to be incurred if the classroom facilities to be constructed, acquired, or reconstructed, or the additions to be made to classroom facilities, under such project meet, but do not exceed, the specifications for plans and materials for classroom facilities adopted by the commission.

(B)(1) No school district shall have a project conditionally approved pursuant to this section if the project includes the reconstruction of, or the making of additions to, any classroom facilities that were constructed, acquired, reconstructed, or added to as part of a project funded under any version of sections 3318.01 to 3318.20 of the Revised Code, and the prior project was one for which the electors of such district approved a levy within the last ten TWENTY-FIVE years pursuant to any version of section 3318.06 of the Revised Code for purposes of qualifying for the funding of that project, UNLESS THE DISTRICT DEMONSTRATES TO THE SATISFACTION OF THE COMMISSION THAT THE DISTRICT HAS EXPERIENCED SINCE APPROVAL OF ITS PRIOR PROJECT AN EXCEPTIONAL INCREASE IN ENROLLMENT ABOVE THE DISTRICT'S DESIGN CAPACITY UNDER THAT PRIOR PROJECT AS DETERMINED BY RULE OF THE COMMISSION.

(2) NOTWITHSTANDING DIVISION (B)(1) OF THIS SECTION, ANY SCHOOL DISTRICT THAT RECEIVED ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE, AS THOSE SECTIONS EXISTED PRIOR TO MAY 20, 1997, MAY RECEIVE ADDITIONAL ASSISTANCE UNDER THOSE SECTIONS, AS THEY EXIST ON AND AFTER MAY 20, 1997, PRIOR TO THE EXPIRATION OF THE PERIOD OF TIME REQUIRED UNDER DIVISION (B)(1) OF THIS SECTION, IF THE PERCENTILE IN WHICH THE SCHOOL DISTRICT IS LOCATED, AS DETERMINED UNDER SECTION 3318.011 OF THE REVISED CODE, IS ELIGIBLE FOR ASSISTANCE AS PRESCRIBED IN SECTION 3318.02 OF THE REVISED CODE.

THE COMMISSION MAY PROVIDE ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE PURSUANT TO THIS DIVISION TO NO MORE THAN FIVE SCHOOL DISTRICTS PER FISCAL YEAR UNTIL ALL ELIGIBLE SCHOOL DISTRICTS HAVE RECEIVED THE ADDITIONAL ASSISTANCE AUTHORIZED UNDER THIS DIVISION. THE COMMISSION SHALL ESTABLISH APPLICATION PROCEDURES, DEADLINES, AND PRIORITIES FOR FUNDING PROJECTS UNDER THIS DIVISION.

Sec. 3318.084. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN CHAPTER 3318. OF THE REVISED CODE, A SCHOOL DISTRICT BOARD MAY APPLY ANY LOCAL DONATED CONTRIBUTION TOWARD THE DISTRICT'S PORTION OF THE BASIC PROJECT COST OF A PROJECT UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE AND MAY USE SUCH LOCAL DONATED CONTRIBUTION TO REDUCE THE AMOUNT OF BONDS THE DISTRICT OTHERWISE MUST ISSUE IN ORDER TO RECEIVE STATE ASSISTANCE UNDER THOSE SECTIONS.

AS USED IN THIS SECTION, "LOCAL DONATED CONTRIBUTION" MEANS EITHER OF THE FOLLOWING:

(A) ANY MONEYS IRREVOCABLY DONATED OR GRANTED TO A SCHOOL DISTRICT BOARD BY A SOURCE OTHER THAN THE STATE WHICH THE BOARD HAS THE AUTHORITY TO APPLY TO THE SCHOOL DISTRICT'S PROJECT UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE AND WHICH THE BOARD HAS PLEDGED FOR THAT PURPOSE BY RESOLUTION ADOPTED BY A MAJORITY OF ITS MEMBERS;

(B) ANY CASH A SCHOOL DISTRICT HAS ON HAND OR ANY IRREVOCABLE LETTER OF CREDIT ISSUED ON BEHALF OF A SCHOOL DISTRICT EITHER OF WHICH THE SCHOOL DISTRICT BOARD HAS ENCUMBERED FOR PAYMENT OF THE SCHOOL DISTRICT'S SHARE OF ITS PROJECT UNDER SECTIONS 3318.01 TO 3318.20 OF THE REVISED CODE AND EITHER OF WHICH HAS BEEN APPROVED BY THE OHIO SCHOOL FACILITIES COMMISSION IN CONSULTATION WITH THE DEPARTMENT OF EDUCATION.

Sec. 3318.311. NO LESS THAN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE OHIO SCHOOL FACILITIES COMMISSION SHALL PRESENT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE PRESIDENT OF THE SENATE, AND THE GOVERNOR A PROPOSAL FOR LEGISLATION TO PROVIDE CLASSROOM FACILITIES ASSISTANCE TO JOINT VOCATIONAL SCHOOL DISTRICTS.

Sec. 3318.36. (A) As used in this section:

(1) "Ohio school facilities commission," "classroom facilities," "school district," "school district board," "net bonded indebtedness," "required percentage of the basic project costs," "basic project cost," "valuation," and "percentile" have the same meanings as in section 3318.01 of the Revised Code.

(2) "Required level of indebtedness" means five per cent of the school district's valuation for the year preceding the year in which the commission and school district enter into an agreement under division (B) of this section, plus 6[two one-hundredths of one per cent multiplied by (the percentile in which the district ranks in the fiscal year the commission and the school district enter into such agreement minus one)]7.

(B)(1) There is hereby established the school building assistance expedited local partnership program. Under the program, IN CALENDAR YEARS PRIOR TO 2005 the Ohio school facilities commission may enter into an agreement AGREEMENTS with the school district board BOARDS of any school district DISTRICTS ranked in the twentieth to fortieth percentiles, AND IN YEARS 2005 AND THEREAFTER THE COMMISSION MAY ENTER INTO AGREEMENTS WITH THE BOARDS OF SCHOOL DISTRICTS RANKED IN THE TWENTIETH TO FIFTIETH PERCENTILES, as determined under section 3318.011 of the Revised Code in the fiscal year that the commission and school district board enter into such agreement. Under the agreement, the school district board may proceed with the new construction or major repairs of a part of the school district's classroom facilities needs, as determined under sections 3318.01 to 3318.20 of the Revised Code, through the expenditure of local resources prior to the school district's eligibility for state assistance under sections 3318.01 to 3318.20 of the Revised Code and may apply that expenditure toward meeting the school district's portion of the basic project cost of the total of the school district's classroom facilities needs, as determined under sections 3318.01 to 3318.20 of the Revised Code and as recalculated under division (E) of this section, that are eligible for state assistance under sections 3318.01 to 3318.20 of the Revised Code when the school district becomes eligible for such state assistance.

(2) The commission may enter into an agreement NEW AGREEMENTS under this section with no more than five school districts each year ACCORDING TO THE FOLLOWING SCHEDULE:

(a) PRIOR TO CALENDAR YEAR 2001, WITH UP TO FIVE SCHOOL DISTRICTS PER CALENDAR YEAR;

(b) IN CALENDAR YEAR 2001, WITH UP TO TEN SCHOOL DISTRICTS;

(c) IN CALENDAR YEAR 2002, WITH UP TO FIFTEEN SCHOOL DISTRICTS;

(d) IN CALENDAR YEAR 2003, WITH UP TO TWENTY SCHOOL DISTRICTS;

(e) IN CALENDAR YEAR 2004 AND IN EACH CALENDAR YEAR THEREAFTER, WITH UP TO THIRTY SCHOOL DISTRICTS.

(3) To participate in the program, a school district board shall first adopt a resolution certifying to the commission the board's intent to participate in the program.

The commission shall consider school districts for participation in the program under this section each year in the order in which they adopt the resolutions required under this section and submit them to the commission ESTABLISH APPLICATION PROCEDURES, DEADLINES, AND PRIORITIES FOR ACCEPTING APPLICATIONS UNDER THIS SECTION.

(4) Any project under this section shall comply with section 3318.03 of the Revised Code and with any specifications for plans and materials for classroom facilities adopted by the commission under section 3318.04 of the Revised Code.

(C) If the commission and a school district board enter into an agreement authorized under division (B) of this section, the commission shall conduct on-site visits to the school district and shall conduct an assessment of the school district's classroom facilities needs as authorized in section 3318.021 of the Revised Code within six months of the execution of the agreement. Based on the results of the on-site visits and assessment, the commission shall determine the basic project cost of the school district's classroom facilities needs. The commission shall determine the school district's portion of such basic project cost, which shall be the greater of:

(1) The required percentage of the basic project costs, determined based on the school district's percentile ranking in the fiscal year the commission and the school district enter into the agreement under division (B) of this section;

(2) An amount necessary to raise the school district's net bonded indebtedness, as of the fiscal year the commission and the school district enter into the agreement under division (B) of this section, to within five thousand dollars of the required level of indebtedness.

(D)(1) When the commission determines the basic project cost of the classroom facilities needs of a school district and the school district's portion of that basic project cost under division (C) of this section, the project shall be conditionally approved. Such conditional approval shall be submitted to the controlling board for approval thereof. The controlling board shall forthwith approve or reject the commission's determination, conditional approval, and the amount of the state's portion of the basic project cost; however, no state funds shall be encumbered under this section. Upon approval by the controlling board, the school district board may identify a discrete part of its classroom facilities needs, which shall include only new construction of or additions or major repairs to a particular building, to address with local resources. Upon identifying a part of the school district's basic project cost to address with local resources, the school district board may allocate any available school district moneys to pay the cost of that identified part, including the proceeds of an issuance of bonds if approved by the electors of the school district.

All local resources utilized under this division shall first be deposited in the project construction account required under section 3318.08 of the Revised Code.

(2) For a school district to qualify for participation in the program authorized under this section, the electors of the school district by a majority vote shall approve the levy of taxes outside the ten-mill limitation for a period not to exceed twenty-three years at the rate of one-half mill for each dollar of valuation to be used to pay the cost of maintaining the classroom facilities included in the basic project cost as determined by the commission. The form of the ballot to be used to submit the question whether to approve the tax required under this division to the electors of the school district shall be the form for an additional levy of taxes prescribed in division (C) of section 3318.06 of the Revised Code. Proceeds of this additional levy of taxes shall be deposited into a separate fund as specified in division (B) of section 3318.05 of the Revised Code.

(E) If the school district becomes eligible for state assistance under sections 3318.01 to 3318.20 of the Revised Code based on its percentile ranking as determined under division (B) of this section, the commission shall conduct a new assessment of the school district's classroom facilities needs and shall recalculate the basic project cost based on this new assessment. The basic project cost recalculated under this division shall include the amount of expenditures made by the school district board under division (D)(1) of this section. The commission shall then recalculate the school district's portion of the new basic project cost by utilizing the proportion of the original basic project cost assigned to the school district as its portion under division (C) of this section. The commission shall deduct the expenditure of school district moneys made under division (D)(1) of this section from the school district's portion of the basic project cost as recalculated under this division. If the amount of school district resources applied by the school district board to the school district's portion of the basic project cost under this section is less than the total amount of such portion as recalculated under this division, the school district board by a majority vote of all of its members shall, if it desires to seek state assistance under sections 3318.01 to 3318.20 of the Revised Code, adopt a resolution as specified in section 3318.06 of the Revised Code to submit to the electors of the school district the question of approval of a bond issue in order to pay any additional amount of school district portion required for state assistance. The tax levy approved under division (D)(2) of this section shall satisfy the requirements to levy the one-half mill additional tax under section 3318.06 of the Revised Code.

If the amount of school district resources applied by the school district board to the school district's portion of the basic project cost under this section is more than the total amount of such portion as recalculated under this division, the commission may reimburse to the school district the difference between the two calculated portions, but at no time shall the commission expend any state funds on a project in an amount greater than the state's portion of the basic project cost as recalculated under this division.

Sec. 3318.37. (A) AS USED IN THIS SECTION:

(1) "LOW WEALTH SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT IN THE LOWEST FIFTY PER CENT OF ADJUSTED VALUATION PER PUPIL AS DETERMINED UNDER SECTION 3318.011 OF THE REVISED CODE.

(2) A "SCHOOL DISTRICT WITH AN EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM FACILITY ASSISTANCE" MEANS A SCHOOL DISTRICT WITH AN EXCEPTIONAL NEED FOR NEW FACILITIES IN ORDER TO PROTECT THE HEALTH AND SAFETY OF ALL OR A PORTION OF ITS STUDENTS. SCHOOL DISTRICTS REASONABLY EXPECTED TO BE ELIGIBLE FOR STATE ASSISTANCE UNDER SECTIONS 3318.01 TO 3318.20 of the Revised Code PRIOR TO JUNE 30, 2002, SHALL NOT BE ELIGIBLE FOR ASSISTANCE UNDER THIS SECTION.

(B)(1) THERE IS HEREBY ESTABLISHED THE EXCEPTIONAL NEEDS SCHOOL FACILITIES ASSISTANCE PROGRAM. UNDER THE PROGRAM, THE OHIO SCHOOL FACILITIES COMMISSION MAY SET ASIDE FROM THE MONEYS ANNUALLY APPROPRIATED TO IT FOR CLASSROOM FACILITIES ASSISTANCE PROJECTS UP TO TWENTY-FIVE PER CENT FOR ASSISTANCE TO SCHOOL DISTRICTS WITH EXCEPTIONAL NEEDS FOR IMMEDIATE CLASSROOM FACILITY ASSISTANCE.

(2)(a) AFTER CONSULTING WITH EDUCATION AND CONSTRUCTION EXPERTS, THE COMMISSION SHALL ADOPT GUIDELINES FOR IDENTIFYING SCHOOL DISTRICTS WITH AN EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM FACILITIES ASSISTANCE.

(b) THE GUIDELINES SHALL INCLUDE APPLICATION FORMS AND INSTRUCTIONS FOR SCHOOL DISTRICTS THAT BELIEVE THEY HAVE AN EXCEPTIONAL NEED FOR IMMEDIATE CLASSROOM FACILITIES ASSISTANCE.

(3) THE COMMISSION SHALL EVALUATE THE CLASSROOM FACILITIES, AND THE NEED FOR REPLACEMENT CLASSROOM FACILITIES FROM THE APPLICATIONS RECEIVED UNDER THIS SECTION. THE COMMISSION, UTILIZING THE GUIDELINES ADOPTED UNDER DIVISION (B)(2)(a) OF THIS SECTION, SHALL PRIORITIZE THE SCHOOL DISTRICTS TO BE ASSESSED.

NOTWITHSTANDING SECTION 3318.02 of the Revised Code, THE COMMISSION MAY CONDUCT ON-SITE EVALUATION OF THE SCHOOL DISTRICTS PRIORITIZED UNDER THIS SECTION AND APPROVE AND AWARD FUNDS UNTIL SUCH TIME AS ALL FUNDS SET ASIDE UNDER DIVISION (B)(1) OF THIS SECTION HAVE BEEN ENCUMBERED UNDER SECTION 3318.04 of the Revised Code.

(4) NOTWITHSTANDING DIVISION (A) OF SECTION 3318.05 of the Revised Code, THE SCHOOL DISTRICT'S PORTION OF THE BASIC PROJECT COST UNDER THIS SECTION SHALL BE THE "REQUIRED PERCENTAGE OF THE BASIC PROJECT COSTS," AS DEFINED IN DIVISION (K) OF SECTION 3318.01 of the Revised Code.