As Reported by the House State Government Committee         1            

122nd General Assembly                                             4            

   Regular Session                            Sub. H. B. No. 204   5            

      1997-1998                                                    6            


    REPRESENTATIVES WACHTMANN-TIBERI-HODGES-TAYLOR-VAN VYVEN-      8            

                      HOOD-SCHULER-PADGETT                         9            


                                                                   11           

                           A   B I L L                                          

             To amend sections 125.04, 125.56, 731.14, 731.141,    13           

                and 735.05 of the Revised Code to allow certain    15           

                political subdivisions to purchase supplies and    16           

                services outside of a Department of                17           

                Administrative Services purchase contract and      18           

                without complying with competitive selection       19           

                procedures if the purchase can be made at a lower  20           

                price than is available through such a contract,   21           

                to increase the competitive bidding  threshold     22           

                for certain municipal contracts from $10,000 to    23           

                $15,000, and to eliminate the requirement that     24           

                state printing contracts be executed  within       25           

                Ohio.                                              26           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        28           

      Section 1.  That sections 125.04, 125.56, 731.14, 731.141,   30           

and 735.05 of the Revised Code be amended to read as follows:      32           

      Sec. 125.04.  (A)  Except as provided in division (C)(D) of  43           

this section, the department of administrative services shall      44           

determine what supplies and services are purchased by or for       45           

state agencies.  Whenever the department of administrative         46           

services makes any change or addition to the lists of supplies     47           

and services that it determines to purchase for state agencies,    48           

it shall provide a list to the agencies of the changes or          49           

additions and indicate when the department will be prepared to     50           

furnish each item listed.  Except for the requirements of          51           

                                                          2      

                                                                 
division (B) of section 125.11 of the Revised Code, sections       52           

125.04 to 125.08 and 125.09 to 125.15 of the Revised Code do not   53           

apply to or affect the educational institutions of the state.      54           

The department shall not include the bureau of workers'            55           

compensation in the lists of supplies, equipment, and services     56           

purchased and furnished by the department.                         57           

      Nothing in this division precludes the bureau from entering  59           

into a contract with the department for the department to perform  60           

services relative to supplies, equipment, and services contained   61           

in this division for the bureau.                                   62           

      (B)  As used in this division, "political subdivision"       64           

means any county, township, municipal corporation, school          65           

district, conservancy district, township park district, park       66           

district created under Chapter 1545. of the Revised Code,          67           

regional transit authority, regional airport authority, regional   68           

water and sewer district, or port authority.  "Political           69           

subdivision" also includes any other political subdivision         70           

described in the Revised Code that has been approved by the        71           

department to participate in the department's contracts under                   

this division.                                                     72           

      The SUBJECT TO DIVISION (C) OF THIS SECTION, THE department  75           

of administrative services may permit a political subdivision to   76           

participate in contracts into which the department has entered     77           

for the purchase of supplies and services.  Any political          78           

subdivision desiring to participate in such purchase contracts     79           

shall file with the department a certified copy of an ordinance    80           

or resolution of the legislative authority or governing board of   81           

the political subdivision.  The resolution or ordinance shall      82           

request that the political subdivision be authorized to            83           

participate in such contracts and shall agree that the political   84           

subdivision will be bound by such terms and conditions as the      85           

department prescribes and that it will directly pay the vendor     86           

under each purchase contract.  The department may charge a         87           

political subdivision a reasonable fee to cover the                88           

                                                          3      

                                                                 
administrative costs the department incurs as a result of the      89           

subdivision's participation in the purchase contract.  Purchases   90           

made by a political subdivision under this division are exempt     91           

from any competitive selection procedures otherwise required by    92           

law.  No political subdivision shall make any purchase under this  93           

division when bids have been received for such purchase by the     94           

subdivision, unless such purchase can be made upon the same        95           

terms, conditions, and specifications at a lower price under this  96           

division.                                                          97           

      The department shall include in its annual report an         99           

estimate of the cost it incurs by permitting political             100          

subdivisions to participate in contracts pursuant to this          101          

division.  The department may require political subdivisions       102          

participating in contracts pursuant to this division to file a     103          

report with the department, as often as it finds necessary,        104          

stating how many such contracts the political subdivisions         105          

participate in within a specified period of time, and any other    106          

information the department requires.                               107          

      (C)  A POLITICAL SUBDIVISION AS DEFINED IN DIVISION (B) OF   109          

THIS SECTION MAY PURCHASE SUPPLIES OR SERVICES FROM ANOTHER        111          

PARTY, INCLUDING ANOTHER POLITICAL SUBDIVISION, INSTEAD OF                      

THROUGH PARTICIPATION IN CONTRACTS DESCRIBED IN DIVISION (B) OF    113          

THIS SECTION IF THE POLITICAL SUBDIVISION CAN PURCHASE THOSE       114          

SUPPLIES OR SERVICES FROM THE OTHER PARTY UPON EQUIVALENT TERMS,   115          

CONDITIONS, AND SPECIFICATIONS BUT AT A LOWER PRICE THAN IT CAN    116          

THROUGH THOSE CONTRACTS.  PURCHASES THAT A POLITICAL SUBDIVISION   117          

MAKES UNDER THIS DIVISION ARE EXEMPT FROM ANY COMPETITIVE          118          

SELECTION PROCEDURES OTHERWISE REQUIRED BY LAW.  A POLITICAL       119          

SUBDIVISION THAT MAKES ANY PURCHASE UNDER THIS DIVISION SHALL      120          

MAINTAIN SUFFICIENT INFORMATION REGARDING THE PURCHASE TO VERIFY   122          

THAT THE POLITICAL SUBDIVISION SATISFIED THE CONDITIONS FOR        123          

MAKING A PURCHASE UNDER THIS DIVISION.                             124          

      (D)  This section does not apply to supplies or services     126          

required by the legislative or judicial branches, boards of        127          

                                                          4      

                                                                 
elections, the capitol square review and advisory board, the       128          

adjutant general, to supplies or services purchased by a state     129          

agency directly as provided in division (A) of section 125.05 of   130          

the Revised Code, to purchases of supplies or services for the     131          

emergency management agency as provided in section 125.023 of the  132          

Revised Code, or to purchases of supplies or services for the      133          

department of rehabilitation and correction in its operation of    134          

the program for the employment of prisoners established under      135          

section 5145.16 of the Revised Code that shall be made pursuant    136          

to rules adopted by the director of administrative services and    137          

the director of rehabilitation and correction in accordance with   138          

Chapter 119. of the Revised Code.  The rules may provide for the   139          

exemption of the program for the employment of prisoners from the  140          

requirements of division (A) of this section.                      141          

      Sec. 125.56.  All printing under sections 125.43 to 125.76   150          

of the Revised Code, must SHALL be executed within this state      151          

PURSUANT TO SECTION 125.11 OF THE REVISED CODE.                    152          

      Sec. 731.14.  All contracts made by the legislative          161          

authority of a village shall be executed in the name of the        162          

village and signed on its behalf by the mayor and clerk.  Except   163          

where the contract is for equipment, services, materials, or       164          

supplies to be purchased under division (D) of section 713.23, or  165          

section 125.04 or 5513.01 of the Revised Code or available from a  166          

qualified nonprofit agency pursuant to sections 4115.31 to         167          

4115.35 of the Revised Code, when any expenditure, other than the  168          

compensation of persons employed therein, exceeds ten FIFTEEN      169          

thousand dollars, such contracts shall be in writing and made      171          

with the lowest and best bidder after advertising for not less     172          

than two nor more than four consecutive weeks in a newspaper of    173          

general circulation within the village.  The bids shall be opened  174          

and shall be publicly read by the clerk of such village or a       175          

person designated by him THE CLERK at the time, date, and place    176          

specified in the advertisement to bidders or specifications.  The  178          

time, date, and place of bid openings may be extended to a later   179          

                                                          5      

                                                                 
date by the legislative authority of the village, provided that    180          

written or oral notice of the change shall be given to all         181          

persons who have received or requested specifications no later     182          

than ninety-six hours prior to the original time and date fixed    183          

for the opening. This section does not apply to those villages     184          

that have provided for the appointment of a village administrator  185          

under section 735.271 of the Revised Code.                         186          

      Sec. 731.141.  In those villages that have established the   195          

position of village administrator, as provided by section 735.271  196          

of the Revised Code, the village administrator shall make          197          

contracts, purchase supplies and materials, and provide labor for  198          

any work under his THE ADMINISTRATOR'S supervision involving not   200          

more than ten FIFTEEN thousand dollars.  When an expenditure,      201          

other than the compensation of persons employed by the village,    202          

exceeds ten FIFTEEN thousand dollars, such expenditure shall       203          

first be authorized and directed by ordinance of the legislative   205          

authority of the village.  When so authorized and directed,        206          

except where the contract is for equipment, services, materials,   207          

or supplies to be purchased under division (D) of section 713.23,  208          

or section 125.04 or 5513.01 of the Revised Code or available      209          

from a qualified nonprofit agency pursuant to sections 4115.31 to  210          

4115.35 of the Revised Code, the village administrator shall make  211          

a written contract with the lowest and best bidder after           212          

advertisement for not less than two nor more than four             213          

consecutive weeks in a newspaper of general circulation within     214          

the village.  The bids shall be opened and shall be publicly read  215          

by the village administrator or a person designated by him THE     216          

VILLAGE ADMINISTRATOR at the time, date, and place as specified    217          

in the advertisement to bidders or specifications.  The time,      219          

date, and place of bid openings may be extended to a later date    220          

by the village administrator, provided that written or oral        221          

notice of the change shall be given to all persons who have        222          

received or requested specifications no later than ninety-six      223          

hours prior to the original time and date fixed for the opening.   224          

                                                          6      

                                                                 
All contracts shall be executed in the name of the village and     225          

signed on its behalf by the village administrator and the clerk.   226          

      The legislative authority of a village may provide, by       228          

ordinance, for central purchasing for all offices, departments,    229          

divisions, boards, and commissions of the village, under the       230          

direction of the village administrator who shall make contracts,   231          

purchase supplies or materials, and provide labor for any work of  232          

the village in the manner provided by this section.                233          

      Sec. 735.05.  The director of public service may make any    242          

contract, purchase supplies or material, or provide labor for any  243          

work under the supervision of the department of public service     244          

involving not more than ten FIFTEEN thousand dollars.  When an     245          

expenditure within the department, other than the compensation of  246          

persons employed therein, exceeds ten FIFTEEN thousand dollars,    247          

such expenditure shall first be authorized and directed by         249          

ordinance of the city legislative authority.  When so authorized   250          

and directed, except where the contract is for equipment,          251          

services, materials, or supplies to be purchased under division    252          

(D) of section 713.23, or section 125.04 or 5513.01 of the         253          

Revised Code or available from a qualified nonprofit agency        254          

pursuant to sections 4115.31 to 4115.35 of the Revised Code, the   255          

director shall make a written contract with the lowest and best    256          

bidder after advertisement for not less than two nor more than     257          

four consecutive weeks in a newspaper of general circulation       258          

within the city.                                                   259          

      Section 2.  That existing sections 125.04, 125.56, 731.14,   261          

731.141, and 735.05 of the Revised Code are hereby repealed.       263          

      Section 3.  Section 125.04 of the Revised Code is presented  265          

in this act as a composite of the section as amended by Am. Sub.   266          

H.B. 107, Am. Sub. S.B. 99, and Am. Sub. S.B. 162 of the 121st     267          

General Assembly, with the new language of none of the acts shown  268          

in capital letters.  This is in recognition of the principle       269          

stated in division (B) of section 1.52 of the Revised Code that    270          

such amendments are to be harmonized where not substantively       271          

                                                          7      

                                                                 
irreconcilable and constitutes a legislative finding that such is  272          

the resulting version in effect prior to the effective date of     273          

this act.