To enact section 3318.60 of the Revised Code to permit high-wealth school districts to receive payments for district-directed classroom facilities projects in lieu of participating in other state programs.

Section 1. That section 3318.60 of the Revised Code be enacted to read as follows:

Sec. 3318.60. (A) As used in this section, "basic project cost," "classroom facilities," "percentile," and "project" have the same meanings as in section 3318.01 of the Revised Code.

(B) This section applies to any of the following:

(1) A city, exempted village, or local school district ranked in the seventy-fifth to one hundredth percentile under section 3318.011 of the Revised Code on or after the effective date of this section that has not received state funds under this chapter prior to that date;

(2) A city, exempted village, or local school district ranked in the seventy-fifth to one hundredth percentile under section 3318.011 of the Revised Code on or after the effective date of this section that received state funds under sections 3318.01 to 3318.20 of the Revised Code as those sections existed prior to May 20, 1997, for a project that was limited to less than the total classroom facilities needs of the district;

(3) A big-eight school district, as defined in section 3314.02 of the Revised Code, that received state funds under section 3318.38 of the Revised Code prior to the effective date of this section, for a project which has not been completed, and for which project the school district portion of the basic project cost is at least seventy-five per cent.

A school district described in divisions (B)(1) or (2) of this section that has entered into an agreement to participate in the school building assistance expedited local partnership program under section 3318.36 of the Revised Code may receive a payment under this section.

(C)(1) When a school district described in division (B)(1) of this section becomes eligible for state funds pursuant to section 3318.02 of the Revised Code, or when a school district described in division (B)(2) of this section becomes eligible for additional state funds pursuant to section 3318.02 and division (B)(2) of section 3318.04 of the Revised Code, the board of education of the district may enter into an agreement with the Ohio school facilities commission under which the commission shall pay the district the state's portion of the basic project cost, in accordance with division (F)(1) of this section, in lieu of that district receiving funds under sections 3318.01 to 3318.20 of the Revised Code. At the time the district becomes eligible to enter into an agreement under this section, the commission shall conduct an assessment of the district's current classroom facilities needs in the same manner as if the district is receiving assistance under sections 3318.01 to 3318.20 of the Revised Code. If the district has entered into an agreement to participate in the expedited local partnership program under section 3318.36 of the Revised Code, the school district board and the commission shall cancel that agreement at the time they enter into the agreement under this section, and the commission shall pay the district in accordance with this section and not as prescribed in division (E) of section 3318.36 of the Revised Code.

(2) The board of education of a school district described in division (B)(3) of this section may enter into an agreement with the commission under which the commission and board shall cancel their existing agreement under section 3318.08 of the Revised Code, the commission shall pay the district the amount prescribed in division (F)(2) of this section, and the district board shall administer the remainder of the project in accordance with this section.

(D) Each agreement under this section shall specify the project for which payments shall be made. For a district described in division (B)(3) of this section, the project described in the new agreement shall be the remainder of the project undertaken by the district under section 3318.38 of the Revised Code. Each district board shall use funds received under this section to pay part of the cost of the project specified in the agreement and shall generate the amount necessary to pay the remaining cost of that project.

(E) Each district that receives a payment under this section shall be exempt from the requirements of sections 3318.01 to 3318.20 of the Revised Code. The commission shall not exercise oversight of the project except as necessary to monitor compliance with this section. Management of the project, including, but not limited to, the solicitation of bids for and the awarding of all contracts for project administration, design, and construction and the form and content of all project related contracts, notices, and published procedures and processes, shall be solely the responsibility of the district board. Construction contracts shall be awarded in accordance with section 3313.46 of the Revised Code and other applicable provisions of law, except for section 3318.10 of the Revised Code which shall not apply to those contracts. The commission shall not require the district to comply with the design specifications adopted by the commission as a condition to entering into an agreement or receiving payments under this section.

(F)(1) The aggregate payment to a school district described in division (B)(1) or (2) of this section shall equal the amount that would have been the state's portion of the basic project cost of the project described in the agreement had the project proceeded under sections 3318.01 to 3318.20 of the Revised Code, as determined by the commission at the time the district and commission enter into the agreement under this section.

(2) The aggregate payment to a school district described in division (B)(3) of this section shall equal the state's portion of the basic project cost as initially determined after the assessment conducted under division (B)(1)(a) of section 3318.38 of the Revised Code, prior to any reductions in scope made after the commission and the district board entered into the agreement under section 3318.08 of the Revised Code, less any amount paid to the district for the project prior to entering into the agreement under this section.

(3) The commission shall make the payments from money appropriated to it for classroom facilities assistance programs, in periodic annual installments beginning in the fiscal year in which the school district and commission enter into the agreement under this section in accordance with a schedule specified in the agreement.

(G) A school district that enters into an agreement under this section shall not be required to comply with the maintenance levy requirement, as defined in section 3318.18 of the Revised Code, or otherwise to generate the equivalent amount for maintenance of the classroom facilities acquired under the project, including transfers authorized under section 3318.051 of the Revised Code. Instead, however, in order to receive payments under this section, the district annually shall set aside in a separate fund for the maintenance of those classroom facilities an amount equal to one-half of one per cent of the insurance value of the completed classroom facilities, as determined by the commission, for a period of twenty-three years less the number of years the district already has complied with the maintenance levy requirement or generated the equivalent amount for maintenance.

If the district, prior to entering into the agreement under this section, has taken actions to comply with the maintenance levy requirement by levying a new tax, the county auditor and county treasurer shall discontinue collection of that tax. If the district has taken actions to comply with that requirement by earmarking the proceeds of an existing tax in the manner prescribed in section 3318.052 of the Revised Code or by applying an amount of local donated contribution, as defined in section 3318.084 of the Revised Code, the district may discontinue those actions. If the district has agreed to the transfer of money under section 3318.051 of the Revised Code, the district may discontinue those transfers.

A district that receives a payment under this section is not eligible for the subsidy paid under section 3318.18 of the Revised Code.