As Passed by the House                        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-SAWYER-GARCIA-BUCHY-TERWILLEGER-        9            

                       BRADING-REID-VESPER                         10           


                                                                   12           

                           A   B I L L                                          

             To amend sections 125.04, 125.56, 731.14, 731.141,    14           

                and 735.05 of the Revised Code to allow certain    16           

                political subdivisions to purchase supplies and    17           

                services outside of a Department of                18           

                Administrative Services purchase contract and      19           

                without complying with competitive selection       20           

                procedures if the purchase can be made at a lower  21           

                price than is available through such a contract,   22           

                to increase the competitive bidding  threshold     23           

                for certain municipal contracts from $10,000 to    24           

                $15,000, and to eliminate the requirement that     25           

                state printing contracts be executed  within       26           

                Ohio.                                              27           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        29           

      Section 1.  That sections 125.04, 125.56, 731.14, 731.141,   31           

and 735.05 of the Revised Code be amended to read as follows:      33           

      Sec. 125.04.  (A)  Except as provided in division (C)(D) of  44           

this section, the department of administrative services shall      45           

determine what supplies and services are purchased by or for       46           

state agencies.  Whenever the department of administrative         47           

services makes any change or addition to the lists of supplies     48           

and services that it determines to purchase for state agencies,    49           

it shall provide a list to the agencies of the changes or          50           

additions and indicate when the department will be prepared to     51           

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furnish each item listed.  Except for the requirements of          52           

division (B) of section 125.11 of the Revised Code, sections       53           

125.04 to 125.08 and 125.09 to 125.15 of the Revised Code do not   54           

apply to or affect the educational institutions of the state.      55           

The department shall not include the bureau of workers'            56           

compensation in the lists of supplies, equipment, and services     57           

purchased and furnished by the department.                         58           

      Nothing in this division precludes the bureau from entering  60           

into a contract with the department for the department to perform  61           

services relative to supplies, equipment, and services contained   62           

in this division for the bureau.                                   63           

      (B)  As used in this division, "political subdivision"       65           

means any county, township, municipal corporation, school          66           

district, conservancy district, township park district, park       67           

district created under Chapter 1545. of the Revised Code,          68           

regional transit authority, regional airport authority, regional   69           

water and sewer district, or port authority.  "Political           70           

subdivision" also includes any other political subdivision         71           

described in the Revised Code that has been approved by the        72           

department to participate in the department's contracts under                   

this division.                                                     73           

      The SUBJECT TO DIVISION (C) OF THIS SECTION, THE department  76           

of administrative services may permit a political subdivision to   77           

participate in contracts into which the department has entered     78           

for the purchase of supplies and services.  Any political          79           

subdivision desiring to participate in such purchase contracts     80           

shall file with the department a certified copy of an ordinance    81           

or resolution of the legislative authority or governing board of   82           

the political subdivision.  The resolution or ordinance shall      83           

request that the political subdivision be authorized to            84           

participate in such contracts and shall agree that the political   85           

subdivision will be bound by such terms and conditions as the      86           

department prescribes and that it will directly pay the vendor     87           

under each purchase contract.  The department may charge a         88           

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political subdivision a reasonable fee to cover the                89           

administrative costs the department incurs as a result of the      90           

subdivision's participation in the purchase contract.  Purchases   91           

made by a political subdivision under this division are exempt     92           

from any competitive selection procedures otherwise required by    93           

law.  No political subdivision shall make any purchase under this  94           

division when bids have been received for such purchase by the     95           

subdivision, unless such purchase can be made upon the same        96           

terms, conditions, and specifications at a lower price under this  97           

division.                                                          98           

      The department shall include in its annual report an         100          

estimate of the cost it incurs by permitting political             101          

subdivisions to participate in contracts pursuant to this          102          

division.  The department may require political subdivisions       103          

participating in contracts pursuant to this division to file a     104          

report with the department, as often as it finds necessary,        105          

stating how many such contracts the political subdivisions         106          

participate in within a specified period of time, and any other    107          

information the department requires.                               108          

      (C)  A POLITICAL SUBDIVISION AS DEFINED IN DIVISION (B) OF   110          

THIS SECTION MAY PURCHASE SUPPLIES OR SERVICES FROM ANOTHER        112          

PARTY, INCLUDING ANOTHER POLITICAL SUBDIVISION, INSTEAD OF                      

THROUGH PARTICIPATION IN CONTRACTS DESCRIBED IN DIVISION (B) OF    114          

THIS SECTION IF THE POLITICAL SUBDIVISION CAN PURCHASE THOSE       115          

SUPPLIES OR SERVICES FROM THE OTHER PARTY UPON EQUIVALENT TERMS,   116          

CONDITIONS, AND SPECIFICATIONS BUT AT A LOWER PRICE THAN IT CAN    117          

THROUGH THOSE CONTRACTS.  PURCHASES THAT A POLITICAL SUBDIVISION   118          

MAKES UNDER THIS DIVISION ARE EXEMPT FROM ANY COMPETITIVE          119          

SELECTION PROCEDURES OTHERWISE REQUIRED BY LAW.  A POLITICAL       120          

SUBDIVISION THAT MAKES ANY PURCHASE UNDER THIS DIVISION SHALL      121          

MAINTAIN SUFFICIENT INFORMATION REGARDING THE PURCHASE TO VERIFY   123          

THAT THE POLITICAL SUBDIVISION SATISFIED THE CONDITIONS FOR        124          

MAKING A PURCHASE UNDER THIS DIVISION.                             125          

      (D)  This section does not apply to supplies or services     127          

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required by the legislative or judicial branches, boards of        128          

elections, the capitol square review and advisory board, the       129          

adjutant general, to supplies or services purchased by a state     130          

agency directly as provided in division (A) of section 125.05 of   131          

the Revised Code, to purchases of supplies or services for the     132          

emergency management agency as provided in section 125.023 of the  133          

Revised Code, or to purchases of supplies or services for the      134          

department of rehabilitation and correction in its operation of    135          

the program for the employment of prisoners established under      136          

section 5145.16 of the Revised Code that shall be made pursuant    137          

to rules adopted by the director of administrative services and    138          

the director of rehabilitation and correction in accordance with   139          

Chapter 119. of the Revised Code.  The rules may provide for the   140          

exemption of the program for the employment of prisoners from the  141          

requirements of division (A) of this section.                      142          

      Sec. 125.56.  All printing under sections 125.43 to 125.76   151          

of the Revised Code, must SHALL be executed within this state      152          

PURSUANT TO SECTION 125.11 OF THE REVISED CODE.                    153          

      Sec. 731.14.  All contracts made by the legislative          162          

authority of a village shall be executed in the name of the        163          

village and signed on its behalf by the mayor and clerk.  Except   164          

where the contract is for equipment, services, materials, or       165          

supplies to be purchased under division (D) of section 713.23, or  166          

section 125.04 or 5513.01 of the Revised Code or available from a  167          

qualified nonprofit agency pursuant to sections 4115.31 to         168          

4115.35 of the Revised Code, when any expenditure, other than the  169          

compensation of persons employed therein, exceeds ten FIFTEEN      170          

thousand dollars, such contracts shall be in writing and made      172          

with the lowest and best bidder after advertising for not less     173          

than two nor more than four consecutive weeks in a newspaper of    174          

general circulation within the village.  The bids shall be opened  175          

and shall be publicly read by the clerk of such village or a       176          

person designated by him THE CLERK at the time, date, and place    177          

specified in the advertisement to bidders or specifications.  The  179          

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time, date, and place of bid openings may be extended to a later   180          

date by the legislative authority of the village, provided that    181          

written or oral notice of the change shall be given to all         182          

persons who have received or requested specifications no later     183          

than ninety-six hours prior to the original time and date fixed    184          

for the opening. This section does not apply to those villages     185          

that have provided for the appointment of a village administrator  186          

under section 735.271 of the Revised Code.                         187          

      Sec. 731.141.  In those villages that have established the   196          

position of village administrator, as provided by section 735.271  197          

of the Revised Code, the village administrator shall make          198          

contracts, purchase supplies and materials, and provide labor for  199          

any work under his THE ADMINISTRATOR'S supervision involving not   201          

more than ten FIFTEEN thousand dollars.  When an expenditure,      202          

other than the compensation of persons employed by the village,    203          

exceeds ten FIFTEEN thousand dollars, such expenditure shall       204          

first be authorized and directed by ordinance of the legislative   206          

authority of the village.  When so authorized and directed,        207          

except where the contract is for equipment, services, materials,   208          

or supplies to be purchased under division (D) of section 713.23,  209          

or section 125.04 or 5513.01 of the Revised Code or available      210          

from a qualified nonprofit agency pursuant to sections 4115.31 to  211          

4115.35 of the Revised Code, the village administrator shall make  212          

a written contract with the lowest and best bidder after           213          

advertisement for not less than two nor more than four             214          

consecutive weeks in a newspaper of general circulation within     215          

the village.  The bids shall be opened and shall be publicly read  216          

by the village administrator or a person designated by him THE     217          

VILLAGE ADMINISTRATOR at the time, date, and place as specified    218          

in the advertisement to bidders or specifications.  The time,      220          

date, and place of bid openings may be extended to a later date    221          

by the village administrator, provided that written or oral        222          

notice of the change shall be given to all persons who have        223          

received or requested specifications no later than ninety-six      224          

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hours prior to the original time and date fixed for the opening.   225          

All contracts shall be executed in the name of the village and     226          

signed on its behalf by the village administrator and the clerk.   227          

      The legislative authority of a village may provide, by       229          

ordinance, for central purchasing for all offices, departments,    230          

divisions, boards, and commissions of the village, under the       231          

direction of the village administrator who shall make contracts,   232          

purchase supplies or materials, and provide labor for any work of  233          

the village in the manner provided by this section.                234          

      Sec. 735.05.  The director of public service may make any    243          

contract, purchase supplies or material, or provide labor for any  244          

work under the supervision of the department of public service     245          

involving not more than ten FIFTEEN thousand dollars.  When an     246          

expenditure within the department, other than the compensation of  247          

persons employed therein, exceeds ten FIFTEEN thousand dollars,    248          

such expenditure shall first be authorized and directed by         250          

ordinance of the city legislative authority.  When so authorized   251          

and directed, except where the contract is for equipment,          252          

services, materials, or supplies to be purchased under division    253          

(D) of section 713.23, or section 125.04 or 5513.01 of the         254          

Revised Code or available from a qualified nonprofit agency        255          

pursuant to sections 4115.31 to 4115.35 of the Revised Code, the   256          

director shall make a written contract with the lowest and best    257          

bidder after advertisement for not less than two nor more than     258          

four consecutive weeks in a newspaper of general circulation       259          

within the city.                                                   260          

      Section 2.  That existing sections 125.04, 125.56, 731.14,   262          

731.141, and 735.05 of the Revised Code are hereby repealed.       264          

      Section 3.  Section 125.04 of the Revised Code is presented  266          

in this act as a composite of the section as amended by Am. Sub.   267          

H.B. 107, Am. Sub. S.B. 99, and Am. Sub. S.B. 162 of the 121st     268          

General Assembly, with the new language of none of the acts shown  269          

in capital letters.  This is in recognition of the principle       270          

stated in division (B) of section 1.52 of the Revised Code that    271          

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such amendments are to be harmonized where not substantively       272          

irreconcilable and constitutes a legislative finding that such is  273          

the resulting version in effect prior to the effective date of     274          

this act.