As Introduced

126th General Assembly
Regular Session
2005-2006
H. B. No. 116


Representative T. Patton 



A BILL
To amend sections 9.312, 3313.46, 3318.091, and 1
3318.10 and to enact section 3318.312 of the 2
Revised Code to require the board of education of 3
each school district undertaking a school building 4
construction project valued over $25,000 to award 5
the contract for that project only to the lowest 6
responsible Ohio-based bidder or by board option 7
to the lowest responsive and responsible 8
Ohio-based bidder and to require school districts 9
and the Ohio School Facilities Commission to 10
contract with Ohio-based persons when contracting 11
for professional services in support of school 12
district construction projects.13


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

       Section 1. That sections 9.312, 3313.46, 3318.091, and 14
3318.10 be amended and section 3318.312 of the Revised Code be 15
enacted to read as follows:16

       Sec. 9.312.  (A) If a state agency or political subdivision17
is required by law or by an ordinance or resolution adopted under18
division (C) of this section to award a contract to the lowest19
responsive and responsible bidder, a bidder on the contract shall20
be considered responsive if the bidder's proposal responds to bid21
specifications in all material respects and contains no22
irregularities or deviations from the specifications which would23
affect the amount of the bid or otherwise give the bidder a24
competitive advantage. The factors that the state agency or25
political subdivision shall consider in determining whether a26
bidder on the contract is responsible include the experience of27
the bidder, the bidder's financial condition, conduct and28
performance on previous contracts, facilities, management skills, 29
and ability to execute the contract properly.30

       For purposes of this division, the provision of a bid31
guaranty in accordance with divisions (A)(1) and (B) of section32
153.54 of the Revised Code issued by a surety licensed to do33
business in this state is evidence of financial responsibility,34
but a state agency or political subdivision may request additional35
financial information for review from an apparent low bidder after36
it opens all submitted bids. A state agency or political37
subdivision shall keep additional financial information it38
receives pursuant to a request under this division confidential,39
except under proper order of a court. The additional financial40
information is not a public record under section 149.43 of the41
Revised Code.42

       An apparent low bidder found not to be responsive and43
responsible shall be notified by the state agency or political44
subdivision of that finding and the reasons for it. Except for45
contracts awarded by the department of administrative services46
pursuant to section 125.11 of the Revised Code, the notification47
shall be given in writing and by certified mail. When awarding48
contracts pursuant to section 125.11 of the Revised Code, the49
department may send such notice in writing by first class mail.50

       (B) Where a state agency or a political subdivision that has51
adopted an ordinance or resolution under division (C) of this52
section determines to award a contract to a bidder other than the53
apparent low bidder or bidders for the construction,54
reconstruction, improvement, enlargement, alteration, repair,55
painting, or decoration of a public improvement, it shall meet56
with the apparent low bidder or bidders upon a filing of a timely57
written protest. The protest must be received within five days of58
the notification required in division (A) of this section. No59
final award shall be made until the state agency or political60
subdivision either affirms or reverses its earlier determination.61
Notwithstanding any other provisions of the Revised Code, the62
procedure described in this division is not subject to Chapter63
119. of the Revised Code.64

       (C)(1) A municipal corporation, township, school district for 65
purposes other than school building construction, board of county 66
commissioners, any other county board or commission, or any other 67
political subdivision required by law to award contracts by 68
competitive bidding may by ordinance or resolution adopt a policy 69
of requiring each competitively bid contract it awards to be 70
awarded to the lowest responsive and responsible bidder in 71
accordance with this section.72

       (2) A school district board of education may by resolution 73
adopt a policy of requiring each competitively bid contract it 74
awards for school building construction to be awarded in 75
accordance with this section to the lowest responsive and 76
responsible qualified Ohio-based bidder or, if no qualified 77
Ohio-based bidder submits a bid, to the lowest responsive and 78
responsible bidder other than a qualified Ohio-based bidder.79

       As used in division (C)(2) of this section, "qualified 80
Ohio-based bidder" has the same meaning as in division (A)(6)(b) 81
of section 3313.46 of the Revised Code.82

       Sec. 3313.46.  (A) In addition to any other law governing the 83
bidding for contracts by the board of education of any school 84
district, when any such board determines to build, repair, 85
enlarge, improve, or demolish any school building, the cost of 86
which will exceed twenty-five thousand dollars, except in cases of 87
urgent necessity, or for the security and protection of school 88
property, and except as otherwise provided in division (D) of 89
section 713.23 and in section 125.04 of the Revised Code, all of 90
the following shall apply:91

       (1) The board shall cause to be prepared the plans,92
specifications, and related information as required in divisions93
(A), (B), and (D) of section 153.01 of the Revised Code unless the 94
board determines that other information is sufficient to inform 95
any bidders of the board's requirements. However, if the board 96
determines that such other information is sufficient for bidding a 97
project, the board shall not engage in the construction of any 98
such project involving the practice of professional engineering, 99
professional surveying, or architecture, for which plans,100
specifications, and estimates have not been made by, and the 101
construction thereof inspected by, a licensed professional 102
engineer, licensed professional surveyor, or registered architect.103

       (2) The board shall advertise for bids once each week for a 104
period of at least two consecutive weeks in a newspaper of general 105
circulation in the district prior to the date specified by the 106
board for receiving bids.107

       (3) Unless the board extends the time for the opening of bids 108
they shall be opened at the time and place specified by the board 109
in the advertisement for the bids.110

       (4) Each bid shall contain the name of every person111
interested therein. Each bid shall meet the requirements of 112
section 153.54 of the Revised Code.113

       (5) When both labor and materials are embraced in the work114
bid for, the board may require that each be separately stated in115
the bid, with the price thereof, or may require that bids be116
submitted without such separation.117

       (6)(a) None but the lowest responsible bid from a qualified 118
Ohio-based bidder shall be accepted, unless no qualified 119
Ohio-based bidder submits a bid, in which case none but the lowest 120
responsible bid from a bidder other than a qualified Ohio-based 121
bidder shall be accepted. The board may reject all the bids, or 122
accept any bid for both labor and material for such improvement or 123
repair, which is the lowest in the aggregate from a qualified 124
Ohio-based bidder, or from a bidder other than a qualified 125
Ohio-based bidder if no qualified Ohio-based bidder submits a bid 126
for both labor and material. In all other respects, the award of127
contracts for improvement or repair, but not for purchases made128
under section 3327.08 of the Revised Code, shall be pursuant to129
section 153.12 of the Revised Code.130

       (b) As used in division (A)(6)(a) of this section, "qualified 131
Ohio-based bidder" means a bidder that satisfies all of the 132
following conditions:133

       (i) The bidder has its primary place of operation in Ohio;134

       (ii) The bidder has been in business for at least three 135
consecutive years prior to submitting its bid for the district's 136
project;137

       (iii) Seventy-five per cent of the bidder's employees have 138
been residents of Ohio for at least one year prior to the 139
submission of the bid or are returning to or settling in Ohio 140
either after completing active duty as a member of the national 141
guard or a reserve unit of the armed forces of the United States 142
or after honorable separation from the armed forces of the United 143
States. As used in this division, "active duty" means active duty 144
pursuant to an executive order of the president of the United 145
States, an act of the congress of the United States, or section 146
5919.29 of the Revised Code.147

       (7) The contract shall be between the board and the bidders. 148
The board shall pay the contract price for the work pursuant to 149
sections 153.13 and 153.14 of the Revised Code. The board shall 150
approve and retain the estimates referred to in section 153.13 of 151
the Revised Code and make them available to the auditor of state 152
upon request.153

       (8) When two or more bids are equal, in the whole, or in any 154
part thereof, and are lower than any others, either may be155
accepted, but in no case shall the work be divided between such156
bidders.157

       (9) When there is reason to believe there is collusion or158
combination among the bidders, or any number of them, the bids of159
those concerned therein shall be rejected.160

       (B) Division (A) of this section does not apply to the board 161
of education of any school district in any of the following 162
situations:163

       (1) The acquisition of educational materials used in 164
teaching.165

       (2) If the board determines and declares by resolution 166
adopted by two-thirds of all its members that any item is 167
available and can be acquired only from a single source.168

       (3) If the board declares by resolution adopted by two-thirds 169
of all its members that division (A) of this section does not 170
apply to any installation, modification, or remodeling involved in 171
any energy conservation measure undertaken through an installment 172
payment contract under section 3313.372 of the Revised Code or 173
undertaken pursuant to division (G) of section 133.06 of the 174
Revised Code.175

       (4) The acquisition of computer software for instructional176
purposes and computer hardware for instructional purposes pursuant 177
to division (B)(4) of section 3313.37 of the Revised Code.178

       (C) No resolution adopted pursuant to division (B)(2) or (3) 179
of this section shall have any effect on whether sections 153.12 180
to 153.14 and 153.54 of the Revised Code apply to the board of 181
education of any school district with regard to any item.182

       Sec. 3318.091.  Promptly after the written agreement between 183
the school district board and the Ohio school facilities 184
commission has been entered into, the school district board shall 185
proceed with the issuance of its bonds or notes in anticipation 186
thereof pursuant to the provision of such agreement required by187
division (A) of section 3318.08 of the Revised Code and the 188
deposit of the proceeds thereof in the school district's project 189
construction fund pursuant to the provision of such agreement 190
required by division (B) of section 3318.08 of the Revised Code, 191
and the school district board, with the approval of the 192
commission, shall employengage a qualified professional person or193
firm to prepare preliminary plans, working drawings,194
specifications, estimates of cost, and such data as the school 195
district board and the commission consider necessary for the 196
project. When the preliminary plans and preliminary estimates of 197
cost have been prepared, and approved by the school district 198
board, they shall be submitted to the commission for approval, 199
modification, or rejection. The commission shall ensure that the 200
plans and materials proposed for use in the project comply with 201
specifications for plans and materials that shall be established 202
by the commission. When such preliminary plans and preliminary 203
estimates of cost and any modifications thereof have been approved 204
by the commission and the school district board, the school 205
district board shall cause such qualified professional person or 206
firm to prepare the working drawings, specifications, and 207
estimates of cost.208

       The professional person or firm engaged under this section 209
shall be an Ohio-based professional person or firm unless no 210
Ohio-based professional person or firm is available. As used in 211
this paragraph, "Ohio-based professional person or firm" means a 212
person or firm qualified to prepare plans, working drawings, 213
specifications, estimates of cost, and other data necessary for 214
the project that satisfies all of the following additional 215
conditions:216

       (A) The person or firm has a primary place of operation in 217
Ohio;218

       (B) In the case of a person who is an individual who does not 219
employ other individuals, the person either:220

       (1) Has been in that business for at least three consecutive 221
years prior to engagement under this section and has been a 222
resident of Ohio for at least one year prior to engagement under 223
this section;224

       (2) Is returning to or settling in Ohio either after 225
completing active duty as a member of the national guard or a 226
reserve unit of the armed forces of the United States or after 227
honorable separation from the armed forces of the United States. 228
As used in this division and division (C) of this section, "active 229
duty" means active duty pursuant to an executive order of the 230
president of the United States, an act of the congress of the 231
United States, or section 5919.29 of the Revised Code.232

       (C) In the case of a person who employs individuals or of a 233
firm, the person or firm has been in that business for at least 234
three consecutive years prior to engagement under this section and 235
seventy-five per cent of the person's or firm's employees have 236
been residents of Ohio for at least one year prior to engagement 237
under this section or are returning to or settling in Ohio either 238
after completing active duty as a member of the national guard or 239
a reserve unit of the armed forces of the United States or after 240
honorable separation from the armed forces of the United States.241

       Sec. 3318.10.  When such working drawings, specifications,242
and estimates of cost have been approved by the school district243
board and the Ohio school facilities commission, the treasurer of244
the school district board shall advertise for construction bids in 245
accordance with section 3313.46 of the Revised Code. Such notices 246
shall state that plans and specifications for the project are on 247
file in the office of the commission and such other place as may 248
be designated in such notice, and the time and place when and249
where bids therefor will be received.250

       The form of proposal to be submitted by bidders shall be251
supplied by the commission. Bidders may be permitted to bid upon252
all the branches of work and materials to be furnished and253
supplied, upon any branch thereof, or upon all or any thereof.254

       When the construction bids for all branches of work and255
materials have been tabulated, the commission shall cause to be256
prepared a revised estimate of the basic project cost based upon257
the lowest responsible bids received in accordance with section 258
3313.46 of the Revised Code. If such revised estimate exceeds the 259
estimated basic project cost as approved by the controlling board 260
pursuant to section 3318.04 or division (B)(1) of section 3318.41 261
of the Revised Code, no contracts may be entered into pursuant to262
this section unless such revised estimate is approved by the263
commission and by the controlling board. When such revised 264
estimate has been prepared, and after such approvals are given, if 265
necessary, and if the school district board has caused to be 266
transferred to the project construction fund the proceeds from the 267
sale of the first or first and final installment of its bonds or 268
bond anticipation notes pursuant to the provision of written 269
agreement required by division (B) of section 3318.08 of the 270
Revised Code, and when the director of budget and management has 271
certified that there is a balance in the appropriation, not272
otherwise obligated to pay precedent obligations, pursuant to273
which the state's share of such revised estimate is required to be274
paid, the contract for all branches of work and materials to be275
furnished and supplied, or for any branch thereof as determined by276
the school district board, shall be awarded by the school district277
board to the lowest responsible bidder in accordance with division 278
(A)(6) of section 3313.46 of the Revised Code subject to the 279
approval of the commission. Such award shall be made within sixty 280
days after the date on which the bids are opened, and the 281
successful bidder shall enter into a contract within ten days 282
after the successful bidder is notified of the award of the283
contract.284

       Subject to the approval of the commission, the school285
district board may reject all bids and readvertise. Any contract286
made under this section shall be made in the name of the state and287
executed on its behalf by the president and treasurer of the288
school district board.289

       The provisions of sections 9.312 and 3313.46 of the Revised290
Code, which are applicable to construction contracts of boards of291
education, shall apply to construction contracts for the project.292

       The remedies afforded to any subcontractor, materials293
supplier, laborer, mechanic, or persons furnishing material or294
machinery for the project under sections 1311.26 to 1311.32 of the295
Revised Code, shall apply to contracts entered into under this296
section and the itemized statement required by section 1311.26 of297
the Revised Code shall be filed with the school district board.298

       Sec. 3318.312. Any agent, accountant, consultant, advisor, or 299
other independent contractor with whom the Ohio school facilities 300
commission contracts under division (A)(2) of section 3318.31 of 301
the Revised Code shall be an Ohio-based person unless no 302
Ohio-based person is available. As used in this section, 303
"Ohio-based person" means a person that satisfies all of the 304
following conditions:305

       (A) The person has a primary place of operation in Ohio;306

       (B) In the case of a person who is an individual who does not 307
employ other individuals, the person either:308

       (1) Has been in that business for at least three consecutive 309
years prior to entering into the contract with the commission and 310
has been a resident of Ohio for at least one year prior to the 311
date the person enters into the contract with the commission;312

       (2) Is returning to or settling in Ohio either after 313
completing active duty as a member of the national guard or a 314
reserve unit of the armed forces of the United States or after 315
honorable separation from the armed forces of the United States. 316
As used in this division and division (C) of this section, "active 317
duty" means active duty pursuant to an executive order of the 318
president of the United States, an act of the congress of the 319
United States, or section 5919.29 of the Revised Code.320

       (C) In the case of a person who employs individuals to 321
conduct or assist in conducting the work for which the commission 322
contracts, the person has been in that business for at least three 323
consecutive years prior to entering into the contract with the 324
commission and seventy-five per cent of the total number of those 325
individuals have been residents of Ohio for at least one year 326
prior to the date the person enters into the contract with the 327
commission or are returning to or settling in the state either 328
after completing active duty as a member of the national guard or 329
a reserve unit of the armed forces of the United States or after 330
honorable separation from the armed forces of the United States.331

       Section 2. That existing sections 9.312, 3313.46, 3318.091, 332
and 3318.10 of the Revised Code are hereby repealed.333