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H. B. No. 454 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Representatives Brown, Harwood, Heard, Letson, Luckie, Lundy, Skindell, Stewart, D., Strahorn, Williams, B., Yuko
A BILL
To amend sections 3313.41, 3314.013, 3314.014,
3314.02, 3314.021, 3314.051, and 3318.08, to enact
section 3314.027, and to repeal sections 3314.016
and 3314.017 of the Revised Code to establish a
moratorium on new "brick and mortar" community
schools until July 1, 2010, to require community
school operators to be nonprofit entities, and to
eliminate the requirement that school districts
offer property suitable for classroom space for
sale to community schools under certain
conditions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3313.41, 3314.013, 3314.014,
3314.02, 3314.021, 3314.051, and 3318.08 be amended and section
3314.027 of the Revised Code be enacted to read as follows:
Sec. 3313.41. (A) Except as provided in divisions (C),
(D),
and
(F), and (G) of this section, when a board of education
decides to
dispose of real or personal property that it owns in
its corporate
capacity and that exceeds in value ten thousand
dollars, it
shall
sell the property at public auction, after
giving at least
thirty
days' notice of the auction by publication
in a newspaper
of
general circulation or by posting notices in
five of the most
public places in the school district in which the
property, if it
is real property, is situated, or, if it is
personal property, in
the school district of the board of
education that owns the
property. The board may offer real
property for sale as an
entire
tract or in parcels.
(B) When the board of education has offered real or
personal
property for sale at public auction at least once pursuant to
division
(A) of this section, and the property has not been sold,
the
board may sell it at a private sale. Regardless of how it was
offered at public auction, at a private sale, the board shall, as
it considers best, sell real property as an entire tract or in
parcels, and personal property in a single lot or in several
lots.
(C) If a board of education decides to dispose of real or
personal property that it owns in its corporate capacity and that
exceeds in value ten thousand dollars, it may sell the property
to
the adjutant general; to any subdivision or taxing authority as
respectively defined in divisions (A) and (C) of section 5705.01
of the
Revised Code, township park district, board of park
commissioners
established under Chapter 755. of the Revised Code,
or park
district established under Chapter 1545. of the Revised
Code; to
a wholly or partially tax-supported university,
university
branch, or college; or to the board of
trustees of a
school district library, upon such terms as are
agreed upon. The
sale of real or personal property to the board
of trustees of a
school district library is limited, in the case
of real property,
to a school district library within whose
boundaries the real
property is situated, or, in the case of
personal property, to a
school district library whose boundaries
lie in whole or in part
within the school district of the selling
board of education.
(D) When a board of education decides to trade as a part
or
an entire consideration, an item of personal property on the
purchase price of an item of similar personal property, it may
trade the same upon such terms as are agreed upon by the parties
to the trade.
(E) The president and the treasurer of the board of
education
shall execute and deliver deeds or other necessary
instruments of
conveyance to complete any sale or trade under
this
section.
(F) When a board of education has identified a parcel of
real
property that it determines is needed for school purposes,
the
board may, upon a majority vote of the members of the board,
acquire that property by exchanging real property that the board
owns in its corporate capacity for the identified real property or
by using real property that the board owns in its corporate
capacity as part or an entire consideration for the purchase price
of the
identified real property. Any exchange or acquisition made
pursuant to this
division shall be made by a conveyance executed
by the president and the
treasurer of the board.
(G)(1) When a school district board of education decides to
dispose of real property suitable for use as classroom space,
prior to disposing of that property under divisions (A) to (F)
of
this section, it shall first offer that property for sale to
the
governing authorities of the start-up community schools
established under Chapter 3314. of the Revised Code located
within
the territory of the school district, at a price that is
not
higher than the appraised fair
market value of that property.
If
more than one community school
governing authority accepts the
offer made by the school district
board,
the board shall sell the
property to the governing authority that accepted the offer first
in time. If no
community school governing authority accepts
the
offer within sixty days after the offer is made by the school
district board, the board may dispose of the property in the
applicable manner prescribed under divisions (A) to (F) of this
section.
(2) When a school district board of education has not used
real property suitable for classroom space for academic
instruction, administration, storage, or any other educational
purpose for one full school year and has not adopted a resolution
outlining a plan for using that property for any of those purposes
within the next three school years, it shall offer that property
for sale to the governing authorities of the start-up community
schools established under Chapter 3314. of the Revised Code
located within the territory of the school district, at a price
that is not higher than the appraised fair market value of that
property. If more than one community school governing authority
accepts the offer made by the school district board, the board
shall sell the property to the governing authority that accepted
the offer first in time.
(H) When a school district board of education has property
that the board, by resolution, finds is not needed for school
district use, is obsolete, or is unfit for the use for which it
was acquired, the board may donate that property in accordance
with this division if the fair market value of the property is, in
the opinion of the board, two thousand five hundred dollars or
less.
The property may be donated to an eligible nonprofit
organization that is located in this state and is exempt from
federal income taxation pursuant to 26 U.S.C. 501(a) and (c)(3).
Before donating any property under this
division, the board shall
adopt a resolution expressing its intent
to make unneeded,
obsolete, or unfit-for-use school district property
available to
these organizations. The resolution shall include
guidelines and
procedures the board considers to be necessary to
implement the
donation program and shall indicate whether the
school district
will conduct the donation program or the board will
contract with
a representative to conduct it. If a representative
is known when
the resolution is adopted, the resolution shall
provide contact
information such as the representative's name,
address, and
telephone number.
The resolution shall include within its procedures a
requirement that any nonprofit organization desiring to obtain
donated property under this division shall submit a written notice
to the board or its representative. The written notice shall
include evidence that the organization is a nonprofit organization
that is located in this state and is
exempt from federal income
taxation pursuant to 26 U.S.C. 501(a)
and (c)(3); a description of
the organization's primary purpose; a
description of the type or
types of property the organization
needs; and the name, address,
and telephone number of a person
designated by the organization's
governing board to receive
donated property and to serve as its
agent.
After adoption of the resolution, the board shall publish, in
a newspaper of general circulation in the school district, notice
of its
intent to donate unneeded, obsolete, or unfit-for-use
school district
property to eligible nonprofit organizations. The
notice shall
include a summary of the information provided in the
resolution
and shall be published at least twice. The second and
any
subsequent notice shall be published not less than ten nor
more
than twenty days after the previous notice. A similar notice
also
shall be posted continually in the board's office, and, if
the
school district maintains a web site on the internet, the
notice shall be
posted continually at that web site.
The board or its representatives shall maintain a list of all
nonprofit organizations that notify the board or its
representative of their desire to obtain donated property under
this division and that the board or its representative determines
to be eligible, in accordance with the requirements set forth in
this section and in
the donation program's guidelines and
procedures, to receive
donated property.
The board or its representative also shall maintain a list of
all school district property the board finds to be unneeded,
obsolete, or
unfit for use and to be available for donation under
this
division. The list shall be posted continually in a
conspicuous
location in the board's office, and, if the school
district maintains a
web site on the internet, the list shall be
posted continually at
that web site. An item of property on the
list shall be donated
to the eligible nonprofit organization that
first declares to the
board or its representative its desire to
obtain the item unless
the board previously has established, by
resolution, a list of
eligible nonprofit organizations that shall
be given priority with
respect to the item's donation. Priority
may be given on the
basis that the purposes of a nonprofit
organization have a direct
relationship to specific school
district purposes of programs provided or
administered by the
board. A resolution giving priority to
certain nonprofit
organizations with respect to the donation of an
item of property
shall specify the reasons why the organizations
are given that
priority.
Members of the board shall consult with the Ohio ethics
commission, and comply with Chapters 102. and 2921. of the Revised
Code, with respect to any donation under this division to a
nonprofit organization of which a board member, any member of a
board member's family, or any business associate of a board member
is a trustee, officer, board member, or employee.
Sec. 3314.013. (A)(1) Until July 1, 2000, no
more than
seventy-five contracts between start-up schools and the state
board of
education may be in effect outside the pilot project area
at any time under
this chapter.
(2) After July 1, 2000, and until July 1, 2001, no more
than
one
hundred twenty-five contracts between start-up schools and the
state board of
education may be in effect outside the pilot
project area at any time
under this chapter.
(3) This division applies only to contracts between start-up
schools and the state board of education and contracts between
start-up schools and entities described in divisions (C)(1)(b) to
(f) of section 3314.02 of the Revised Code.
Until July 1, 2005, not more than two hundred twenty-five
contracts
to which this
division applies may be in effect at any
time
under
this chapter.
(4) This division applies only to contracts between start-up
schools and entities described in divisions (C)(1)(b) to (f) of
section 3314.02 of the Revised Code.
Except as otherwise provided in section 3314.014 of the
Revised Code, after July 1, 2005, and until July 1, 2007, the
number of contracts to which this division applies in effect at
any time under this chapter shall be not more than thirty plus the
number of such contracts with schools that were open for operation
as of May 1, 2005.
(5) This division applies only to contracts between a
conversion school that is an internet- or computer-based community
school or a start-up school and the board of education of the
school district in which the school is or is proposed to be
located.
Except as otherwise provided in section 3314.014 of the
Revised Code,
until July 1, 2007, the number of contracts to which
this division applies in effect at any time under this chapter
shall be not more than thirty plus the number of such contracts
with schools that were open for operation as of May 1, 2005.
(6) Division (A)(1) of this section applies only to community
schools that are not internet- or computer-based community
schools.
Until July 1, 2010, no start-up or conversion community
school subject to this division shall operate unless the school
was open for instruction as of May 1, 2008. No entity described in
division (C)(1) of section 3314.02 of the Revised Code shall enter
into a contract to sponsor a community school subject to this
division between May 1, 2008, and July 1, 2010, except that an
entity may renew a contract that the entity entered into with a
community school subject to this division prior to May 1, 2008, if
the school was open for operation as of that date.
If a sponsor entered into a contract with a community school
subject to this division but the school was not open for operation
as of May 1, 2008, the contract shall be void and the entity shall
not enter into another contract with the school until July 1,
2010.
(2) Until the effective date of any standards enacted by the
general assembly governing the operation of internet- or
computer-based community schools, no internet- or computer-based
community school shall operate unless the school was open for
instruction as of May 1, 2005. No entity described in division
(C)(1) of section 3314.02 of the Revised Code shall enter into a
contract to sponsor an internet- or computer-based community
school, including a conversion school, between May 1, 2005, and
the effective date of any standards enacted by the general
assembly governing the operation of internet- or computer-based
community schools, except as follows:
(a) Any that an entity described in division (C)(1) of that
section may renew a contract that the entity entered into with an
internet- or computer-based community school prior to May 1, 2005,
if the school was open for operation as of that date.
(b) Any entity described in divisions (C)(1)(a) to (e) of
that section may assume sponsorship of an existing internet- or
computer-based community school that was formerly sponsored by
another entity and may enter into a contract with that community
school in accordance with section 3314.03 of the Revised Code.
(c) Any entity described in division (C)(1)(f) of that
section may assume sponsorship of an existing internet- or
computer-based community school in accordance with division (A)(7)
of this section and may enter into a contract with that community
school in accordance with section 3314.03 of the Revised Code.
If a sponsor entered into a contract with an internet- or
computer-based community school, including a conversion school,
but the school was not open for operation as of May 1, 2005, the
contract shall be void and the entity shall not enter into another
contract with the school until the effective date of any standards
enacted by the general assembly governing the operation of
internet- or computer-based community schools.
(7) Until July 1, 2005, any entity described in division
(C)(1)(f) of section 3314.02 of the Revised Code may sponsor only
a community school that formerly was sponsored by the state board
of education under division (C)(1)(d) of that section, as it
existed prior to April 8, 2003. After July 1, 2005, any such
entity may assume sponsorship of any existing community school,
and may sponsor any new community school that is not an internet-
or computer-based community school. Beginning on the effective
date of any standards enacted by the general assembly governing
the operation of internet- or computer-based community schools,
any such entity may sponsor a new internet- or computer-based
community school.
(8)(3) Nothing in division (A) of this section prohibits a
community school from increasing the number of grade levels it
offers.
(B) Within twenty-four hours of a request by any person, the
superintendent of public instruction shall indicate the number of
preliminary agreements for
start-up schools
currently outstanding
and the number of contracts for these
schools in effect at the
time of the request.
(C) It is the intent of the general assembly to consider
whether
to provide limitations on the number of start-up community
schools after
July 1, 2001, following its examination of the
results of
the studies by the legislative office of education
oversight required under
Section 50.39 of
Am.
Sub.
H.B.
No. 215 of
the 122nd general
assembly and
Section 50.52.2
of
Am.
Sub.
H.B.
No. 215 of the 122nd general
assembly, as amended
by Am.
Sub.
H.B.
No. 770 of the 122nd general
assembly.
Sec. 3314.014. (A) As used in this chapter, "operator" means
either of the following:
(1) An individual or organization (A) A nonprofit entity that
manages the daily operations of a community school pursuant to a
contract between the operator and the school's governing
authority;
(2)(B) A nonprofit organization that provides programmatic
oversight and support to a community school under a contract with
the school's governing authority and that retains the right to
terminate its affiliation with the school if the school fails to
meet the organization's quality standards.
(B)(1) Notwithstanding the limit prescribed by division
(A)(4) of section 3314.013 of the Revised Code, a start-up school
sponsored by an entity described in divisions (C)(1)(b) to (f) of
section 3314.02 of the Revised Code may be established after the
date that limit is reached, provided the school's governing
authority enters into a contract with an operator permitted to
manage the school under division (C) of this section.
(2) Notwithstanding the limit prescribed by division (A)(5)
of section 3314.013 of the Revised Code, a conversion school that
is an internet- or computer-based community school or a start-up
school sponsored by the school district in which the school is or
is proposed to be located may be established after the date that
limit is reached, provided the school's governing authority enters
into a contract with an operator permitted to manage the school
under division (C) of this section. However, a conversion school
that is an internet- or computer-based community school may be
established after that date only if the prohibition prescribed by
division (A)(6) of section 3314.013 of the Revised Code is no
longer in effect.
(C) An operator may enter into contracts with the governing
authorities of community schools established after the date the
limit prescribed by division (A)(4) or (5) of section 3314.013 of
the Revised Code, as applicable, is reached, provided the total
number of schools for which the operator enters into such
contracts, excluding conversion schools that are not internet- or
computer-based community schools, does not exceed the number of
community schools managed by the operator in Ohio or other states
on the applicable date that are rated excellent, effective, or in
need of continuous improvement pursuant to section 3302.03 of the
Revised Code or perform comparably to schools so rated, as
determined by the department of education.
(D) Notwithstanding the limit prescribed by division (A)(4)
of section 3314.013 of the Revised Code, after the date the limit
prescribed in that division is reached, the governing authority of
a start-up school sponsored by an entity described in divisions
(C)(1)(b) to (f) of section 3314.02 of the Revised Code may
establish one additional school serving the same grade levels and
providing the same educational program as the current start-up
school and may open that additional school in the 2006-2007 school
year, if both of the following conditions are met:
(1) The governing authority entered into another contract
with the same sponsor or a different sponsor described in
divisions (C)(1)(b) to (f) of section 3314.02 of the Revised Code
and filed a copy of that contract with the superintendent of
public instruction prior to March 15, 2006.
(2) The governing authority's current school satisfies all of
the following conditions:
(a) The school currently is rated as excellent or effective
pursuant to section 3302.03 of the Revised Code.
(b) The school made adequate yearly progress, as defined in
section 3302.01 of the Revised Code, for the previous school year.
(c) The school has been in operation for at least four school
years.
(d) The school is not managed by an operator.
Sec. 3314.02. (A) As used in this chapter:
(1)
"Sponsor" means
an entity listed in division
(C)(1)
of
this
section, which has been approved by the department
of
education to sponsor community schools and
with which the
governing
authority of the
proposed
community school enters into a
contract pursuant to this
section.
(2)
"Pilot project area" means
the school districts
included
in the territory of the former community
school pilot project
established by former Section 50.52 of Am. Sub. H.B. No. 215
of
the 122nd general assembly.
(3)
"Challenged school district"
means any of the following:
(a) A school district that is part of the pilot project
area;
(b) A school district that is
either in a state of academic
emergency
or in a state of academic watch under section 3302.03 of
the Revised
Code;
(c) A big eight school district.
(4)
"Big eight school district" means
a school district that
for fiscal year 1997 had
both of the following:
(a) A percentage of children residing in the
district and
participating in the predecessor of
Ohio works first greater than
thirty per cent, as reported pursuant to section 3317.10 of the
Revised
Code;
(b) An average daily membership greater than
twelve
thousand,
as reported pursuant to former division
(A) of section
3317.03 of
the
Revised Code.
(5)
"New start-up school" means a community school other
than
one created
by converting all or part of an existing public
school, as designated in the
school's contract pursuant to
division (A)(17) of section 3314.03
of the Revised Code.
(6)
"Urban school district" means one of the state's
twenty-one
urban school districts as defined in division (O) of
section 3317.02
of the Revised Code as that section existed prior
to July 1, 1998.
(7) "Internet- or
computer-based community school" means a
community school
established under this chapter in which the
enrolled students work primarily from their residences on
assignments in nonclassroom-based learning opportunities provided
via an internet- or other computer-based
instructional method that
does not rely on regular classroom
instruction or via
comprehensive instructional methods that include internet-based,
other computer-based, and noncomputer-based learning
opportunities.
(B) Any person or group of
individuals may initially propose
under this
division the conversion of all or a portion of a public
school to a community
school.
The proposal
shall be made to the
board of education of
the city, local, or
exempted village school
district
in
which the public school is
proposed to be converted.
Upon receipt of a
proposal, a board may
enter into a preliminary
agreement with the person or
group
proposing the conversion of the
public school, indicating the
intention of the board of education
to
support the conversion to a
community school. A proposing
person or group
that has a
preliminary
agreement under this
division may proceed to finalize
plans for the school,
establish a
governing authority for the
school, and negotiate a contract with
the board of education.
Provided the proposing person or group
adheres to the
preliminary
agreement and all provisions of this
chapter, the board of
education shall negotiate in good faith to
enter into a contract
in accordance
with section 3314.03 of the
Revised Code and
division (C) of this section.
(C)(1) Any person or group of
individuals may propose under
this division the
establishment of a new start-up school to be
located in
a challenged
school district. The proposal may be
made
to
any of the following
entities:
(a) The board of education of the
district in which the
school is proposed to be
located;
(b) The board of education of any joint
vocational school
district with territory in the county in which is
located the
majority
of the territory of the district in which the
school is
proposed to be located;
(c) The board of education of any other
city, local, or
exempted village school district having
territory in the same
county where the
district in which the school is proposed to be
located has the major
portion of its territory;
(d) The
governing
board of
any educational service
center, as
long as the proposed school will be located in a county within the
territory of the service center or in a county contiguous to such
county;
(e) A
sponsoring
authority designated by the
board
of
trustees of
any of the thirteen state universities listed in
section
3345.011 of the Revised Code
or the board of
trustees
itself
as
long as a mission of the proposed school to be specified
in the
contract under division (A)(2) of section 3314.03 of the
Revised
Code and as approved by the department of education under
division
(B)(2) of section 3314.015 of the Revised Code will be
the
practical demonstration of teaching methods,
educational
technology, or other teaching practices that are
included in the
curriculum of the university's teacher preparation
program
approved by the state board of education;
(f) Any qualified tax-exempt entity under section
501(c)(3)
of the Internal Revenue Code as long as all of the
following
conditions are satisfied:
(i) The entity has been in operation for at least five
years
prior to applying to be a community school sponsor.
(ii) The entity has assets of at least five hundred
thousand
dollars and a demonstrated record of financial responsibility.
(iii) The department of education has determined that the
entity is an education-oriented entity under division (B)(3) of
section 3314.015 of the Revised Code and the entity has a
demonstrated record of successful implementation of educational
programs.
(iv) The entity is not a community school.
Any entity
described in division (C)(1) of this
section may
enter
into a
preliminary agreement
pursuant
to
division (C)(2) of
this
section with the proposing
person or
group.
(2) A preliminary agreement indicates the
intention of
an
entity described in division (C)(1)
of this section
to
sponsor the
community school. A proposing person or
group that
has such a
preliminary agreement may proceed to
finalize plans for
the
school, establish a governing authority
as described in
division
(E) of this section
for the school, and
negotiate a
contract with
the
entity. Provided the
proposing person or
group adheres to the
preliminary agreement and
all provisions of
this chapter, the
entity shall negotiate
in good faith to
enter into a
contract in
accordance with section
3314.03 of the
Revised
Code.
(3) A new start-up school that is established in a school
district while that district is
either in a state of academic
emergency
or in a state of academic watch under section
3302.03 of
the Revised Code may
continue in
existence once the school
district is no longer
in a
state of
academic emergency
or academic
watch, provided there is a valid
contract between
the
school and a
sponsor.
(4) A copy of every preliminary agreement entered into under
this
division shall be filed with the superintendent of public
instruction.
(D) A majority vote of
the board of a sponsoring
entity
and a
majority vote of the members of the
governing authority of a
community school shall be required to
adopt a contract and
convert
the public school to a community
school or establish the new
start-up school. Beginning September 29, 2005, adoption of the
contract shall occur not later than the fifteenth day of March,
and signing of the contract shall occur not later than the
fifteenth day of May, prior to the school year in which the school
will open. The governing authority shall notify the department of
education when the contract has been signed. Subject to sections
section
3314.013, 3314.014, 3314.016, and 3314.017 of the Revised
Code, an
unlimited number
of
community schools
may be
established
in any
school district
provided that a contract is
entered into
for each
community school
pursuant to
this chapter.
(E)(1) As used in this division, "immediate relatives" are
limited to spouses, children, parents, grandparents, siblings, and
in-laws.
Each new start-up community school established under
this
chapter shall be under the direction of a governing authority
which shall consist of a board of not less than five individuals.
No person shall serve on the governing authority or
operate
the community school under contract with the governing
authority
so long as the person owes the state any money or is in
a dispute
over whether the person owes the state any money
concerning the
operation of a community school that has closed.
(2) No person shall serve on the governing authorities of
more than two start-up community schools at the same time.
(3) No present or former member, or immediate relative of a
present or former member, of the governing authority of any
community school established under this chapter shall be an owner,
employee, or consultant of any nonprofit or for-profit operator of
a community school, unless at least one year has elapsed since the
conclusion of
the person's membership.
(F) Nothing in this chapter shall be construed to permit the
establishment of a community school in more than one school
district under the same contract.
(G)(1) A new start-up school that is established prior to
August 15, 2003, in an urban school district that is not also a
big-eight school district may continue to operate after that date
and the contract between the school's governing authority and the
school's sponsor may be renewed, as provided under this chapter,
after that date, but no additional new start-up schools may be
established in such a district unless the district is a challenged
school district as defined in this section as it exists on and
after that date.
(2) A community school that was established prior to June 29,
1999, and is located in a county contiguous to the pilot project
area and in a school district that is not a challenged school
district may continue to operate after that date, provided the
school complies with all provisions of this chapter. The contract
between the school's governing authority and the school's sponsor
may be renewed, but no additional start-up community school may be
established in that district unless the district is a challenged
school district.
(3) Any educational service center that, on the effective
date of this amendment June 30, 2007, sponsors a community school
that is not
located in a county within the territory of the
service center or
in a county contiguous to such county may
continue to sponsor that
community school on and after the
effective date of this amendment June 30, 2007,
and may renew its
contract with the school. However, the
educational service center
shall not enter into a contract with
any additional community
school unless the school is located in a
county within the
territory of the service center or in a county
contiguous to such
county.
Sec. 3314.021. (A) This section applies to any entity that is
exempt from taxation under section 501(c)(3) of the Internal
Revenue Code and that satisfies the conditions specified in
divisions (C)(1)(f)(ii) and (iii) of section 3314.02 of the
Revised Code but does not satisfy the condition specified in
division (C)(1)(f)(i) of that section.
(B) Notwithstanding division (C)(1)(f)(i) of section 3314.02
of the Revised Code, an entity described in division (A) of this
section may do both of the following without obtaining the
department of education's approval of its sponsorship under
division (B)(1) of section 3314.015 of the Revised Code:
(1) Succeed the board of trustees of a state university
located in the pilot project area or that board's designee as the
sponsor of a community school established under this chapter;
(2) Continue to sponsor that school in conformance with
the
terms of the contract between the board of trustees or its
designee and the governing authority of the community school and
renew that contract as provided in division (E) of section
3314.03
of the Revised Code.
(C) The entity that succeeds the board of trustees or the
board's designee as sponsor of a community school under division
(B) of this section also may enter into
contracts to sponsor
other community schools located in any challenged school district,
without obtaining the department's approval of its sponsorship
under division (B)(1) of section 3314.015 of the Revised Code, and
not subject to the restriction of division (A)(7) of section
3314.013 of the Revised Code, as long as the contracts conform
with and the entity complies with all other requirements of this
chapter.
Sec. 3314.027. If, on the effective date of this section, the
governing authority of a community school has a contract with an
operator that is not a nonprofit entity as required by section
3314.014 of the Revised Code, as it exists on and
after the
effective date of this section, the governing authority
shall not
be subject to the requirement that an operator of a
community
school be a nonprofit entity until the expiration of
that
contract. If the governing authority elects to continue
management of the school by an operator after the expiration of
that contract, the governing authority shall enter into a contract
with a new operator that complies with section
3314.014 of the
Revised Code, as it exists on and after the
effective date of
this section. Section 3314.026 of the Revised
Code shall not
apply to any operator that is not a nonprofit
entity and whose
contract is not renewed pursuant to this section.
Sec. 3314.051. (A) When the governing authority of a
community school that acquired real property from a school
district pursuant to division (G)(2) of section 3313.41 of the
Revised Code, as it existed prior to the effective date of this
amendment, decides to dispose of that property, it first shall
offer that property for sale to the school district board of
education from which it acquired the property, at a price that is
not higher than the appraised fair market value of that property.
If the district board does not accept the offer within sixty days
after the offer is made, the community school may dispose of the
property in another lawful manner.
(B) When a community school that acquired real property from
a school district pursuant to division (G)(2) of section 3313.41
of the Revised Code, as it existed prior to the effective date of
this
amendment, permanently closes, in distributing the
school's
assets under section 3314.074 of the Revised Code, that
property
first shall be offered for sale to the school district
board of
education from which the community school acquired the
property,
at a price that is not higher than the appraised fair
market
value of that property. If the district board does not
accept the
offer within sixty days after the offer is made, the
property may
be disposed in another lawful manner.
Sec. 3318.08.
Except in the case of a joint vocational
school district that receives assistance under sections 3318.40 to
3318.45 of the Revised Code, if the requisite favorable vote on
the
election is obtained, or if the school district board has
resolved
to apply
the proceeds of a property tax levy or the
proceeds of an
income tax, or a combination of proceeds from such
taxes, as
authorized in
section 3318.052 of the Revised Code, the
Ohio
school facilities commission, upon
certification to it of
either
the results of the election or
the resolution under section
3318.052 of the Revised Code, shall enter
into a written agreement
with the school district board for the
construction and sale of
the project. In the case of a joint vocational school
district
that receives assistance under sections 3318.40 to
3318.45 of the
Revised Code, if the school district board of
education and the
school district electors have satisfied the
conditions prescribed
in division (D)(1) of section 3318.41 of the
Revised Code, the
commission shall enter into an agreement with
the school district
board for the construction and sale of the
project. In either
case, the agreement shall
include, but need not
be
limited to, the
following provisions:
(A) The sale and issuance of bonds or notes in
anticipation
thereof, as soon as practicable after the execution
of the
agreement, in an amount equal to the
school district's portion of
the basic
project cost, including any securities
authorized under
division (J) of
section 133.06 of the Revised
Code and dedicated
by the school
district board to payment of the
district's portion
of the basic
project cost of the project; 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 the
year in
which the
controlling
board approved the project, 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 of
the
date of
the
controlling board's approval 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 controlling board approved the
project,
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 the
school district's portion of the
basic project cost. 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 bonded 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 controlling
board approved the
project. Should there be
a decrease in the tax
valuation of
the school district so that the amount of
indebtedness
that can
be incurred on the tax duplicates for the
year in which the
controlling board approved the project is
less
than the amount of the first installment of bond
anticipation
notes, there shall be paid from the school
district's project
construction fund to the school
district's
bond retirement fund to
be applied against such notes an amount
sufficient to cause the
net bonded indebtedness of the school district,
as of the first
day of the year following the year in which the
controlling board
approved the project,
to be within five thousand dollars of the
required level of
indebtedness for the year in which the
controlling board approved the project. 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 that will
cause its net bonded
indebtedness, as of the first
day of the year
following the year in which the controlling board
approved the
project, to be
within five thousand dollars of the required level
of
indebtedness,
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 fund;
(C)
For all school districts except joint vocational school
districts that receive assistance under sections 3318.40 to
3318.45 of the Revised Code, the following provisions as
applicable:
(1) If section 3318.052 of the Revised Code applies, the
earmarking of the
proceeds of a tax levied under section 5705.21
of the Revised Code for general permanent improvements
or
under
section 5705.218 of the Revised Code for the purpose of
permanent
improvements, or
the proceeds of a school district
income tax
levied under Chapter
5748. of the Revised Code, or the
proceeds
from a
combination of
those two taxes, in an amount to
pay all or
part of the service
charges on bonds issued to pay the
school
district portion of the
project and
an amount equivalent to all or
part of the tax
required under division
(B) of
section 3318.05 of
the Revised
Code;
(2) If section 3318.052 of the Revised Code does not
apply,
one of
the following:
(a) The levy of the tax authorized at the election for
the
payment of maintenance costs, as specified in
division (B) of
section 3318.05 of the Revised
Code;
(b) If the school district electors have approved a
continuing
tax
for general
permanent improvements under
section
5705.21
of the Revised Code and that tax can be
used for
maintenance, the
earmarking of an amount
of the proceeds from such
tax for
maintenance of classroom facilities as
specified in
division (B)
of
section 3318.05 of the Revised Code;
(c) If, in lieu of the tax otherwise required under division
(B) of section 3318.05 of the Revised Code, the commission has
approved the transfer of money to the maintenance fund in
accordance with section 3318.051 of the Revised Code, a
requirement that the district board comply with the provisions
that section. The district board may rescind the provision
prescribed under division (C)(2)(c) of this section only so long
as the electors of the district have approved, in accordance with
section 3318.063 of the Revised Code, the levy of a tax for the
maintenance of the classroom facilities acquired under the
district's project and that levy continues to be collected as
approved by the electors.
(D) For joint vocational school districts that receive
assistance under sections 3318.40 to 3318.45 of the Revised Code,
provision for deposit of school district moneys dedicated to
maintenance of the classroom facilities acquired under those
sections as prescribed in section 3318.43 of the Revised Code;
(E) Dedication of any local donated contribution as
provided
for under section 3318.084 of the Revised Code, including
a
schedule for depositing such moneys applied as an offset of the
district's obligation to levy the tax described in division (B) of
section 3318.05 of the Revised Code as required under division
(D)(2) of section 3318.084 of the Revised Code;
(F) Ownership of or interest in the project during the
period
of
construction, which shall be divided between the
commission and
the
school district board in proportion to their
respective
contributions to the school district's project
construction
fund;
(G) Maintenance of the state's interest in the
project
until
any
obligations issued for the project under section 3318.26
of
the
Revised Code are no longer outstanding;
(H) The insurance of the project by the school district
from
the time there is an insurable interest therein and so long
as the
state retains
any ownership or interest in the project
pursuant to
division
(F) of
this
section, in such amounts
and
against such
risks as the 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;
(I) 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
either section 3318.04
or
division (B)(1) of section 3318.41 of the
Revised
Code;
(J) Authorization of the school district board to
advertise
for and receive construction bids for the project, for
and on
behalf of the commission, and to award
contracts in the
name of
the state subject to approval by the commission;
(K) Provisions for the disbursement of moneys from the
school
district's project account upon issuance by the
commission
or the
commission's designated representative of vouchers
for
work
done
to
be certified to the commission by the treasurer
of the
school
district board;
(L) Disposal of any balance left in the school district's
project construction fund upon completion of the
project;
(M) Limitations upon use of the project or any part of it
so
long as any obligations
issued to finance the project under
section 3318.26 of the Revised
Code are outstanding;
(N) Provision for vesting the state's interest in the
project
to the school district board when the
obligations issued
to
finance the project under section 3318.26 of the
Revised Code
are
outstanding;
(O) Provision for deposit of an executed copy of the
agreement in the office of the commission;
(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
fund
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
commission;
(Q) Provision for the school district to maintain the
project
in
accordance with a plan approved by the commission;
(R)(1) For all school districts except
a district
undertaking
a
project under section 3318.38 of the Revised Code
or
a joint
vocational school district undertaking a project under
sections
3318.40 to 3318.45 of the Revised Code,
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, unless
the
school district
certifies to the
commission that expenditure
by
the school
district is
necessary to
maintain the tax-exempt
status
of notes
or bonds issued by the
school district to pay for
its
share of the
project cost
or to
comply with applicable
temporary
investment
periods or spending
exceptions to rebate as
provided
for under
federal law in regard
to those notes or bonds,
in which
cases, the
school district
may commit to
spend, or
spend, a
portion
of the
funds it
provides;
(2) For
a school
district undertaking a project
under section
3318.38 of the Revised Code
or a joint vocational
school district
undertaking a project under sections 3318.40 to
3318.45 of the
Revised Code, provision that the state funds
reserved and
encumbered and the funds provided by the school
district to pay
the basic project cost of any segment of the
project, or of the
entire project if it is not divided into
segments, be spent on the
construction and acquisition of the
project simultaneously in
proportion to the state's and the school
district's respective
shares of that basic project cost as
determined under section
3318.032 of the Revised Code
or, if the
district is a joint
vocational school district, under section
3318.42 of the Revised
Code.
(S) A provision stipulating that the commission may
prohibit
the
district from proceeding with any project if the
commission
determines that
the site is not suitable for
construction
purposes. The commission may
perform soil tests in
its
determination of whether a site is appropriate for
construction
purposes.
(T) A provision stipulating that, unless otherwise
authorized
by the commission, any contingency
reserve portion of
the
construction budget prescribed by the
commission shall be used
only to pay costs resulting from
unforeseen job conditions, to
comply with rulings regarding
building and other codes, to pay
costs related to design
clarifications or corrections to contract
documents, and to pay
the costs of settlements or judgments
related to the project as
provided under section 3318.086 of the
Revised Code;
(U) Provision stipulating that for continued release of
project funds the school district board shall comply with section
3313.41 of the Revised Code throughout the project and shall
notify the department of education and the Ohio community school
association when the board plans to dispose of facilities by sale
under that section;
(V) Provision that the commission shall not approve a
contract for demolition of a facility until the school district
board has complied with section 3313.41 of the Revised Code
relative to that facility, unless demolition of that facility is
to clear a site for construction of a replacement facility
included in the district's project.
Section 2. That existing sections 3313.41, 3314.013,
3314.014, 3314.02, 3314.021, 3314.051, and 3318.08 and sections
3314.016 and 3314.017 of the Revised Code are hereby repealed.
Section 3. Section 3314.014 of the Revised Code is
presented in
this act as a composite of the section as amended by
both Am. Sub. H.B. 79 and Am. Sub. H.B. 276 of
the 126th General
Assembly. The General Assembly, applying the
principle stated in
division (B) of section 1.52 of the Revised
Code that amendments
are to be harmonized if reasonably capable of
simultaneous
operation, finds that the composite is the resulting
version of
the section in effect prior to the effective date of
the section
as presented in this act.
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