To enact section 3327.18 of the Revised Code to establish the School District Transportation Consolidation Pilot Program and to make an appropriation.

Section 1.  That section 3327.18 of the Revised Code be enacted to read as follows:

Sec. 3327.18.  (A) The school district transportation consolidation pilot program is hereby established. Under the program, the department of education shall award grants on a competitive basis to consortia of school districts and educational service centers that enter into agreements to regionalize student transportation. To be eligible to receive a grant under this section, a consortium shall consist of two or more school districts and an educational service center which have entered into mutual agreements whereby participating school districts equitably share costs of student transportation as arranged and coordinated by the educational service center. The purpose of each grant awarded under this section shall be to pay start-up costs associated with the regionalization agreement. No single grant award shall exceed five million dollars. The participating educational service center shall be the fiscal agent for the grant award.

(B) The regionalization agreement between the participating school districts and educational service center supported by any grant awarded under this section shall specify, at a minimum, the following:

(1) A stipulation that a portion of the moneys received under the grant shall be used for covering costs associated with implementing the regionalization agreement, including the purchase of additional school buses and other goods and services necessary to implement the agreement.

(2) The manner in which any savings resulting from the regionalization agreement will be shared among the participating school districts;

(3) Whether or not the educational service center shall contract with a regional transit authority or other approved transportation provider to provide transportation services to students;

(4) A stipulation specifying the materials and financial resources that may be contributed by the participating school districts;

(5) The aggregate fees to be charged by the fiscal agent and any agency with which it subcontracts to cover personnel and program costs with administering the agreement. Such fees shall not exceed seven per cent of the value of the agreement and shall be subject to controlling board approval if in excess of four per cent of the value of the agreement.

(C)(1) Not later than December 31, 2015, a school district that participates in a grant awarded under this section shall report to the department on the progress and outcomes of the pilot program.

(2) Not later than July 1, 2016, the department shall issue a report to the general assembly, in accordance with section 101.68 of the Revised Code, and to the governor, based on the reports under division (B)(1) of this section, on the progress and outcomes of the pilot program.

(D) The amount paid to or spent on behalf of a school district under this section is in addition to any amount calculated and paid to the district under section 3317.0212 of the Revised Code.

(E) The pilot project established under this section shall cease to exist on July 1, 2018.

Section 2. All items in this section are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all appropriations made in this act, those in the first column are for fiscal year 2014 and those in the second column are for fiscal year 2015. The appropriations made in this act are in addition to any other appropriations made for the FY 2014-FY 2015 biennium.

Appropriations

General Revenue Fund

TRANSPORTATION CONSOLIDATION GRANTS

The foregoing appropriation item 200466, Transportation Consolidation Grants, shall be used by the Department of Education to award grants under the School District Transportation Consolidation Pilot Program pursuant to section 3327.18 of the Revised Code.

An amount equal to the unexpended, unencumbered portion of the foregoing appropriation item 200466, Transportation Consolidation Grants, at the end of fiscal year 2014 is hereby reappropriated to the Department of Education for the same purpose for fiscal year 2015.

Section 3. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the form and manner in which appropriation accounts shall be maintained. Expenditures from appropriations contained in this act shall be accounted for as though made in the main operating appropriations act of the 130th General Assembly.

The appropriations made in this act are subject to all provisions of the main operating appropriations act of the 130th General Assembly that are generally applicable to such appropriations.