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.