Bill Text: OH HB502 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To prohibit an urban school district that is a party to an annexation agreement from declining to extend the agreement.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2010-05-05 - To Education [HB502 Detail]

Download: Ohio-2009-HB502-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 502

Representative Grossman 

Cosponsors: Representatives Boose, Lehner, Bacon 

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A BILL

To amend section 3311.06 of the Revised Code to

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prohibit an urban school district that is a party

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to an annexation agreement from declining to

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extend the agreement.

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

Section 1.  That section 3311.06 of the Revised Code be	5
amended to read as follows:	6

Sec. 3311.06.  (A) As used in this section:

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(1) "Annexation" and "annexed" mean annexation for municipal	8
purposes under sections 709.02 to 709.37 of the Revised Code.	9

(2) "Annexed territory" means territory that has been annexed	10
for municipal purposes to a city served by an urban school	11
district, but on September 24, 1986, has not been transferred to	12
the urban school district.	13

(3) "Urban school district" means a city school district with	14
an average daily membership for the 1985-1986 school year in	15
excess of twenty thousand that is the school district of a city	16
that contains annexed territory.	17

(4) "Annexation agreement" means an agreement entered into	18
under division (F) of this section that has been approved by the	19
state board of education or an agreement entered into prior to	20
September 24, 1986, that meets the requirements of division (F) of	21
this section and has been filed with the state board.	22

(B) The territory included within the boundaries of a city,	23
local, exempted village, or joint vocational school district shall	24
be contiguous except where a natural island forms an integral part	25
of the district, where the state board of education authorizes a	26
noncontiguous school district, as provided in division (E)(1) of	27
this section, or where a local school district is created pursuant	28
to section 3311.26 of the Revised Code from one or more local	29
school districts, one of which has entered into an agreement under	30
section 3313.42 of the Revised Code.	31

(C)(1) When all of the territory of a school district is	32
annexed to a city or village, such territory thereby becomes a	33
part of the city school district or the school district of which	34
the village is a part, and the legal title to school property in	35
such territory for school purposes shall be vested in the board of	36
education of the city school district or the school district of	37
which the village is a part.	38

(2) When the territory so annexed to a city or village	39
comprises part but not all of the territory of a school district,	40
the said territory becomes part of the city school district or the	41
school district of which the village is a part only upon approval	42
by the state board of education, unless the district in which the	43
territory is located is a party to an annexation agreement with	44
the city school district.	45

Any urban school district that has not entered into an	46
annexation agreement with any other school district whose	47
territory would be affected by any transfer under this division	48
and that desires to negotiate the terms of transfer with any such	49
district shall conduct any negotiations under division (F) of this	50
section as part of entering into an annexation agreement with such	51
a district.	52

Any school district, except an urban school district,	53
desiring state board approval of a transfer under this division	54
shall make a good faith effort to negotiate the terms of transfer	55
with any other school district whose territory would be affected	56
by the transfer. Before the state board may approve any transfer	57
of territory to a school district, except an urban school	58
district, under this section, it must receive the following:	59

(a) A resolution requesting approval of the transfer, passed	60
by at least one of the school districts whose territory would be	61
affected by the transfer;	62

(b) Evidence determined to be sufficient by the state board	63
to show that good faith negotiations have taken place or that the	64
district requesting the transfer has made a good faith effort to	65
hold such negotiations;	66

(c) If any negotiations took place, a statement signed by all	67
boards that participated in the negotiations, listing the terms	68
agreed on and the points on which no agreement could be reached.	69

(D) The state board of education shall adopt rules governing	70
negotiations held by any school district except an urban school	71
district pursuant to division (C)(2) of this section. The rules	72
shall encourage the realization of the following goals:	73

(1) A discussion by the negotiating districts of the present	74
and future educational needs of the pupils in each district;	75

(2) The educational, financial, and territorial stability of	76
each district affected by the transfer;	77

(3) The assurance of appropriate educational programs,	78
services, and opportunities for all the pupils in each	79
participating district, and adequate planning for the facilities	80
needed to provide these programs, services, and opportunities.	81

Districts involved in negotiations under such rules may agree	82
to share revenues from the property included in the territory to	83
be transferred, establish cooperative programs between the	84
participating districts, and establish mechanisms for the	85
settlement of any future boundary disputes.	86

(E)(1) If territory annexed after September 24, 1986, is part	87
of a school district that is a party to an annexation agreement	88
with the urban school district serving the annexing city, the	89
transfer of such territory shall be governed by the agreement. If	90
the agreement does not specify how the territory is to be dealt	91
with, the boards of education of the district in which the	92
territory is located and the urban school district shall negotiate	93
with regard to the transfer of the territory which shall be	94
transferred to the urban school district unless, not later than	95
ninety days after the effective date of municipal annexation, the	96
boards of education of both districts, by resolution adopted by a	97
majority of the members of each board, agree that the territory	98
will not be transferred and so inform the state board of	99
education.	100

If territory is transferred under this division the transfer	101
shall take effect on the first day of July occurring not sooner	102
than ninety-one days after the effective date of the municipal	103
annexation. Territory transferred under this division need not be	104
contiguous to the district to which it is transferred.	105

(2) Territory annexed prior to September 24, 1986, by a city	106
served by an urban school district shall not be subject to	107
transfer under this section if the district in which the territory	108
is located is a party to an annexation agreement or becomes a	109
party to such an agreement not later than ninety days after	110
September 24, 1986. If the district does not become a party to an	111
annexation agreement within the ninety-day period, transfer of	112
territory shall be governed by division (C)(2) of this section. If	113
the district subsequently becomes a party to an agreement,	114
territory annexed prior to September 24, 1986, other than	115
territory annexed under division (C)(2) of this section prior to	116
the effective date of the agreement, shall not be subject to	117
transfer under this section.	118

(F) An urban school district may enter into a comprehensive	119
agreement with one or more school districts under which transfers	120
of territory annexed by the city served by the urban school	121
district after September 24, 1986, shall be governed by the	122
agreement. Such agreement must provide for the establishment of a	123
cooperative education program under section 3313.842 of the	124
Revised Code in which all the parties to the agreement are	125
participants and must be approved by resolution of the majority of	126
the members of each of the boards of education of the school	127
districts that are parties to it. An agreement may provide for	128
interdistrict payments based on local revenue growth resulting	129
from development in any territory annexed by the city served by	130
the urban school district.	131

An agreement entered into under this division may be altered,	132
modified, or terminated only by agreement, by resolution approved	133
by the majority of the members of each board of education, of all	134
school districts that are parties to the agreement, except that	135
with regard to any provision that affects only the urban school	136
district and one of the other districts that is a party, that	137
district and the urban district may modify or alter the agreement	138
by resolution approved by the majority of the members of the board	139
of that district and the urban district. Alterations,	140
modifications, terminations, and extensions of an agreement	141
entered into under this division do not require approval of the	142
state board of education, but shall be filed with the board after	143
approval and execution by the parties.	144

If an agreement provides for interdistrict payments, each	145
party to the agreement, except any school district specifically	146
exempted by the agreement, shall agree to make an annual payment	147
to the urban school district with respect to any of its territory	148
that is annexed territory in an amount not to exceed the amount	149
certified for that year under former section 3317.029 of the	150
Revised Code as that section existed prior to July 1, 1998; except	151
that such limitation of annual payments to amounts certified under	152
former section 3317.029 of the Revised Code does not apply to	153
agreements or extensions of agreements entered into on or after	154
June 1, 1992, unless such limitation is expressly agreed to by the	155
parties. The agreement may provide that all or any part of the	156
payment shall be waived if the urban school district receives its	157
payment with respect to such annexed territory under former	158
section 3317.029 of the Revised Code and that all or any part of	159
such payment may be waived if the urban school district does not	160
receive its payment with respect to such annexed territory under	161
such section.	162

With respect to territory that is transferred to the urban	163
school district after September 24, 1986, the agreement may	164
provide for annual payments by the urban school district to the	165
school district whose territory is transferred to the urban school	166
district subsequent to annexation by the city served by the urban	167
school district.	168

In the case of an agreement entered into under this division	169
that was in effect on January 1, 2010, the urban school district	170
shall not decline to extend that agreement upon the expiration of	171
its term, as long as at least one other district that is a party	172
to the agreement desires to extend the agreement.	173

(G) In the event territory is transferred from one school	174
district to another under this section, an equitable division of	175
the funds and indebtedness between the districts involved shall be	176
made under the supervision of the state board of education and	177
that board's decision shall be final. Such division shall not	178
include funds payable to or received by a school district under	179
Chapter 3306. or 3317. of the Revised Code or payable to or	180
received by a school district from the United States or any	181
department or agency thereof. In the event such transferred	182
territory includes real property owned by a school district, the	183
state board of education, as part of such division of funds and	184
indebtedness, shall determine the true value in money of such real	185
property and all buildings or other improvements thereon. The	186
board of education of the school district receiving such territory	187
shall forthwith pay to the board of education of the school	188
district losing such territory such true value in money of such	189
real property, buildings, and improvements less such percentage of	190
the true value in money of each school building located on such	191
real property as is represented by the ratio of the total	192
enrollment in day classes of the pupils residing in the territory	193
transferred enrolled at such school building in the school year in	194
which such annexation proceedings were commenced to the total	195
enrollment in day classes of all pupils residing in the school	196
district losing such territory enrolled at such school building in	197
such school year. The school district receiving such payment shall	198
place the proceeds thereof in its sinking fund or bond retirement	199
fund.	200

(H) The state board of education, before approving such	201
transfer of territory, shall determine that such payment has been	202
made and shall apportion to the acquiring school district such	203
percentage of the indebtedness of the school district losing the	204
territory as is represented by the ratio that the assessed	205
valuation of the territory transferred bears to the total assessed	206
valuation of the entire school district losing the territory as of	207
the effective date of the transfer, provided that in ascertaining	208
the indebtedness of the school district losing the territory the	209
state board of education shall disregard such percentage of the	210
par value of the outstanding and unpaid bonds and notes of said	211
school district issued for construction or improvement of the	212
school building or buildings for which payment was made by the	213
acquiring district as is equal to the percentage by which the true	214
value in money of such building or buildings was reduced in fixing	215
the amount of said payment.	216

(I) No transfer of school district territory or division of	217
funds and indebtedness incident thereto, pursuant to the	218
annexation of territory to a city or village shall be completed in	219
any other manner than that prescribed by this section regardless	220
of the date of the commencement of such annexation proceedings,	221
and this section applies to all proceedings for such transfers and	222
divisions of funds and indebtedness pending or commenced on or	223
after October 2, 1959.	224

Section 2.  That existing section 3311.06 of the Revised Code	225
is hereby repealed.	226