As Reported by the Senate State and Local Government 1
and Veterans Affairs Committee 2
122nd General Assembly 5
Regular Session Sub. H. B. No. 426 6
1997-1998 7
REPRESENTATIVES CLANCY-CATES-BATEMAN-GARCIA-GRENDELL-PRINGLE- 9
SCHULER-WILLIAMS-CORBIN-SAWYER-REID-SCHUCK-VESPER-VAN VYVEN- 10
ROMAN-HOTTINGER-PADGETT-TAYLOR-LEWIS-CALLENDER-CAREY- 11
OPFER-MOTTLEY-TERWILLEGER-SULZER-O'BRIEN-OGG-WINKLER- 12
CORE-BUCHY-LOGAN-KASPUTIS-GARDNER-HARRIS-METZGER-HAINES- 13
THOMAS-DAMSCHRODER-BRADING-MYERS-HOUSEHOLDER-MASON- 14
AMSTUTZ-PATTON-LUCAS-OLMAN-SALERNO-VERICH-COLONNA- 15
SENATORS GARDNER-NEIN 16
18
A B I L L
To amend sections 1907.24, 2303.201, 2743.70, 20
2949.091, 3109.14, 3316.03, 5705.12, 5705.29, 21
5705.35, 5705.36, 5705.38, 5705.41, 5709.61,
5733.33, 5747.51, and 5747.62; to amend, for the 22
purpose of adopting a new section number as 23
indicated in parentheses, section 5705.13 24
(5705.121); to enact new section 5705.13 and 25
section 5705.131; and to repeal sections 305.23, 26
505.83, and 505.831 of the Revised Code to permit 27
taxing authorities of subdivisions to create 28
accounts in which funds may be reserved for 29
budget stabilization, self-insurance claim 30
payments, the payment of claims under 31
retrospective ratings plans for workers' 33
compensation, accumulated employee leave, capital 34
projects, and nonexpendable trusts; to specify 35
that certain amounts in such reserves shall not 37
affect revenue distributions to certain 38
subdivisions through local government funds; to 41
change the conditions under which a subdivision's
2
spending authority must be changed when its 42
projected revenue changes; to permit all 43
subdivisions to authorize purchases in excess of
$5,000 for certain goods and services without the 44
necessity of authorizing each individual 45
purchase; to alter the definition of a large 47
manufacturing facility eligible to receive tax 48
incentives under the laws governing enterprise
zones, and to allow purchasers of certain large 49
manufacturing facilities to continue receiving 50
credits against the corporate franchise tax that 51
the seller was receiving for the purchase of new
manufacturing machinery and equipment; and to 53
change the time by which certain fees collected
by clerks of court must be transmitted to the 54
Treasurer of State or deposited into the county 55
treasury.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 57
Section 1. That sections 1907.24, 2303.201, 2743.70, 59
2949.091, 3109.14, 3316.03, 5705.12, 5705.29, 5705.35, 5705.36, 61
5705.38, 5705.41, 5709.61, 5733.33, 5747.51, and 5747.62 be
amended, section 5705.13 (5705.121) be amended for the purpose of 63
adopting a new section number as indicated in parentheses, and 64
new section 5705.13 and section 5705.131 of the Revised Code be 65
enacted to read as follows:
Sec. 1907.24. (A) Subject to division (C) of this 77
section, a county court shall fix and tax fees and costs as 78
follows:
(1) The county court shall require an advance deposit for 80
the filing of any new civil action or proceeding when required by 81
division (C) of this section and, in all other cases, shall 82
establish a schedule of fees and costs to be taxed in any civil 83
or criminal action or proceeding. 84
3
(2) The county court by rule may require an advance 86
deposit for the filing of a civil action or proceeding and 87
publication fees as provided in section 2701.09 of the Revised 89
Code. The court may waive an advance deposit requirement upon 90
the presentation of an affidavit or other evidence that
establishes that a party is unable to make the requisite deposit. 91
(3) When a party demands a jury trial in a civil action or 93
proceeding, the county court may require the party to make an 94
advance deposit as fixed by rule of court, unless the court 96
concludes, on the basis of an affidavit or other evidence
presented by the party, that the party is unable to make the 97
requisite deposit. If a jury is called, the county court shall 98
tax the fees of a jury as costs. 99
(4) In a civil or criminal action or proceeding, the 101
county court shall fix the fees of witnesses in accordance with 102
sections 2335.06 and 2335.08 of the Revised Code. 103
(5) A county court may tax as part of the costs in a trial 105
of the cause, in an amount fixed by rule of court, a reasonable 106
charge for driving, towing, carting, storing, keeping, and 108
preserving motor vehicles and other personal property recovered
or seized in a proceeding. 109
(6) The court shall preserve chattel property seized under 111
a writ or process issued by the court pending final disposition 112
for the benefit of all interested persons. The court may place 113
the chattel property in storage when necessary or proper for its 114
preservation. The custodian of chattel property so stored shall 115
not be required to part with the possession of the property until 116
a reasonable charge, to be fixed by the court, is paid.
(7) The county court, as it determines, may refund all 118
deposits and advance payments of fees and costs, including those 119
for jurors and summoning jurors, when they have been paid by the 121
losing party.
(8) The court may tax as part of costs charges for the 123
publication of legal notices required by statute or order of 124
4
court, as provided by section 7.13 of the Revised Code. 126
(B)(1) The county court may determine that, for the 128
efficient operation of the court, additional funds are necessary 129
to acquire and pay for special projects of the court including, 130
but not limited to, the acquisition of additional facilities or 131
the rehabilitation of existing facilities, the acquisition of 132
equipment, the hiring and training of staff, community service
programs, mediation or dispute resolution services, the 133
employment of magistrates, and other related services. Upon that 134
determination, the court by rule may charge a fee, in addition to 135
all other court costs, on the filing of each criminal cause, 136
civil action or proceeding, or judgment by confession. 137
If the county court offers a special program or service in 139
cases of a specific type, the county court by rule may assess an 140
additional charge in a case of that type, over and above court 141
costs, to cover the special program or service. The county court 142
shall adjust the special assessment periodically, but not 143
retroactively, so that the amount assessed in those cases does
not exceed the actual cost of providing the service or program. 144
All moneys collected under division (B) of this section 147
shall be paid to the county treasurer for deposit into either a 148
general special projects fund or a fund established for a
specific special project. Moneys from a fund of that nature 149
shall be disbursed upon an order of the court in an amount no 151
greater than the actual cost to the court of a project. If a 152
specific fund is terminated because of the discontinuance of a
program or service established under division (B) of this 154
section, the county court may order that moneys remaining in the 155
fund be transferred to an account established under this division 156
for a similar purpose.
(2) As used in division (B) of this section: 158
(a) "Criminal cause" means a charge alleging the violation 160
of a statute or ordinance, or subsection of a statute or 161
ordinance, that requires a separate finding of fact or a separate 162
5
plea before disposition and of which the defendant may be found 163
guilty, whether filed as part of a multiple charge on a single 165
summons, citation, or complaint or as a separate charge on a
single summons, citation, or complaint. "Criminal cause" does 166
not include separate violations of the same statute or ordinance, 167
or subsection of the same statute or ordinance, unless each 168
charge is filed on a separate summons, citation, or complaint. 169
(b) "Civil action or proceeding" means any civil 171
litigation that must be determined by judgment entry. 172
(C) Subject to division (C)(E) of this section, prior to 174
January 1, 1993, and on and after January 1, 2003, the county 176
court shall collect the sum of four dollars as additional filing 177
fees in each new civil action or proceeding for the charitable 178
public purpose of providing financial assistance to legal aid 179
societies that operate within the state. Subject to division 180
(C)(E) of this section, from January 1, 1993, through December
31, 2002, the county court shall collect in all its divisions 182
except the small claims division the sum of fifteen dollars as 183
additional filing fees in each new civil action or proceeding for 184
the charitable public purpose of providing financial assistance 185
to legal aid societies that operate within the state. Subject to 186
division (C)(E) of this section, from January 1, 1993, through 187
December 31, 2002, the county court shall collect in its small 188
claims division the sum of seven dollars as additional filing 189
fees in each new civil action or proceeding for the charitable 190
public purpose of providing financial assistance to legal aid 191
societies that operate within the state. This division does not 192
apply to any execution on a judgment, proceeding in aid of 193
execution, or other post-judgment proceeding arising out of a 194
civil action. The filing fees required to be collected under 195
this division shall be in addition to any other court costs 196
imposed in the action or proceeding and shall be collected at the 197
time of the filing of the action or proceeding. The court shall 198
not waive the payment of the additional filing fees in a new 199
6
civil action or proceeding unless the court waives the advanced 200
payment of all filing fees in the action or proceeding. All such 201
moneys COLLECTED DURING A MONTH shall be transmitted on OR BEFORE 203
the first business TWENTIETH day of each THE FOLLOWING month by 205
the clerk of the court to the treasurer of state. The moneys 206
then shall be deposited by the treasurer of state to the credit 207
of the legal aid fund established under section 120.52 of the 208
Revised Code.
The court may retain up to one per cent of the moneys it 210
collects under this division to cover administrative costs, 211
including the hiring of any additional personnel necessary to 212
implement this division. 213
(D) The county court shall establish by rule a schedule of 215
fees for miscellaneous services performed by the county court or 216
any of its judges in accordance with law. If judges of the court 217
of common pleas perform similar services, the fees prescribed in 218
the schedule shall not exceed the fees for those services 219
prescribed by the court of common pleas.
(C)(E) Under the circumstances described in sections 221
2969.21 to 2969.27 of the Revised Code, the clerk of the county 222
court shall charge the fees and perform the other duties 223
specified in those sections.
Sec. 2303.201. (A)(1) The court of common pleas of any 232
county may determine that for the efficient operation of the 233
court additional funds are required to computerize the court, to 234
make available computerized legal research services, or to do 235
both. Upon making a determination that additional funds are 236
required for either or both of those purposes, the court shall 237
authorize and direct the clerk of the court of common pleas to 238
charge one additional fee, not to exceed three dollars, on the 239
filing of each cause of action or appeal under divisions (A), 240
(Q), and (U) of section 2303.20 of the Revised Code. 241
(2) All fees collected under division (A)(1) of this 243
section shall be paid to the county treasurer. The treasurer 244
7
shall place the funds from the fees in a separate fund to be 245
disbursed, upon an order of the court, in an amount not greater 246
than the actual cost to the court of procuring and maintaining 247
computerization of the court, computerized legal research 248
services, or both. 249
(3) If the court determines that the funds in the fund 251
described in division (A)(2) of this section are more than 252
sufficient to satisfy the purpose for which the additional fee 253
described in division (A)(1) of this section was imposed, the 254
court may declare a surplus in the fund and expend those surplus 255
funds for other appropriate technological expenses of the court. 256
(B)(1) The court of common pleas of any county may 258
determine that, for the efficient operation of the court, 259
additional funds are required to computerize the office of the 260
clerk of the court of common pleas and, upon that determination, 261
authorize and direct the clerk of the court of common pleas to 262
charge an additional fee, not to exceed ten dollars, on the 263
filing of each cause of action or appeal, on the filing, 264
docketing, and endorsing of each certificate of judgment, or on 265
the docketing and indexing of each aid in execution or petition 266
to vacate, revive, or modify a judgment under divisions (A), (P), 267
(Q), (T), and (U) of section 2303.20 of the Revised Code. Subject 269
to division (B)(2) of this section, all moneys collected under 270
division (B)(1) of this section shall be paid to the county
treasurer to be disbursed, upon an order of the court of common 271
pleas and subject to appropriation by the board of county 272
commissioners, in an amount no greater than the actual cost to 273
the court of procuring and maintaining computer systems for the 274
office of the clerk of the court of common pleas. 275
(2) If the court of common pleas of a county makes the 277
determination described in division (B)(1) of this section, the 278
board of county commissioners of that county may issue one or 279
more general obligation bonds for the purpose of procuring and 280
maintaining the computer systems for the office of the clerk of 281
8
the court of common pleas. In addition to the purposes stated in 282
division (B)(1) of this section for which the moneys collected 283
under that division may be expended, the moneys additionally may 284
be expended to pay debt charges on and financing costs related to 285
any general obligation bonds issued pursuant to division (B)(2) 286
of this section as they become due. General obligation bonds 287
issued pursuant to division (B)(2) of this section are Chapter 288
133. securities. 289
(C) Prior to January 1, 1993, and on and after January 1, 291
2003, the court of common pleas shall collect the sum of four 293
dollars as additional filing fees in each new civil action or 294
proceeding for the charitable public purpose of providing 295
financial assistance to legal aid societies that operate within 296
the state. From January 1, 1993, through December 31, 2002, the 298
court of common pleas shall collect the sum of fifteen dollars as 299
additional filing fees in each new civil action or proceeding for 300
the charitable public purpose of providing financial assistance 301
to legal aid societies that operate within the state. This 302
division does not apply to proceedings concerning annulments, 303
dissolutions of marriage, divorces, legal separation, spousal 304
support, marital property or separate property distribution, 305
support, or other domestic relations matters; to a juvenile 306
division of a court of common pleas; to a probate division of a 307
court of common pleas, except that the additional filing fees 308
shall apply to name change, guardianship, and adoption 309
proceedings; or to an execution on a judgment, proceeding in aid 310
of execution, or other post-judgment proceeding arising out of a 311
civil action. The filing fees required to be collected under 312
this division shall be in addition to any other filing fees 313
imposed in the action or proceeding and shall be collected at the 314
time of the filing of the action or proceeding. The court shall 315
not waive the payment of the additional filing fees in a new 316
civil action or proceeding unless the court waives the advanced 317
payment of all filing fees in the action or proceeding. All such 318
9
moneys COLLECTED DURING A MONTH shall be transmitted on OR BEFORE 320
the first business TWENTIETH day of each THE FOLLOWING month by 322
the clerk of the court to the treasurer of state. The moneys 323
then shall be deposited by the treasurer of state to the credit 324
of the legal aid fund established under section 120.52 of the 325
Revised Code.
The court may retain up to one per cent of the moneys it 327
collects under this division to cover administrative costs, 328
including the hiring of any additional personnel necessary to 329
implement this division. 330
(D) On and after the thirtieth day after the effective 332
date of this amendment, the court of common pleas shall collect 333
the sum of thirty-two dollars as additional filing fees in each 334
new action or proceeding for annulment, divorce, or dissolution 335
of marriage for the purpose of funding shelters for victims of 336
domestic violence pursuant to sections 3113.35 to 3113.39 of the 337
Revised Code. The filing fees required to be collected under 338
this division shall be in addition to any other filing fees 339
imposed in the action or proceeding and shall be collected at the 340
time of the filing of the action or proceeding. The court shall 341
not waive the payment of the additional filing fees in a new 342
action or proceeding for annulment, divorce, or dissolution of 343
marriage unless the court waives the advanced payment of all 344
filing fees in the action or proceeding. On OR BEFORE the first 345
business TWENTIETH day of each month, all moneys collected DURING 347
THE IMMEDIATELY PRECEDING MONTH pursuant to this division shall 349
be deposited by the clerk of the court into the county treasury 350
in the special fund used for deposit of additional marriage 351
license fees as described in section 3113.34 of the Revised Code. 352
Upon their deposit into the fund, the moneys shall be retained 353
in the fund and expended only as described in section 3113.34 of 354
the Revised Code. 355
Sec. 2743.70. (A)(1) The court, in which any person is 364
convicted of or pleads guilty to any offense other than a traffic 365
10
offense that is not a moving violation, shall impose the 366
following sum as costs in the case in addition to any other court 367
costs that the court is required by law to impose upon the 368
offender: 369
(a) Thirty dollars, if the offense is a felony; 371
(b) Nine dollars, if the offense is a misdemeanor. 373
The court shall not waive the payment of the thirty or nine 375
dollars court costs, unless the court determines that the 376
offender is indigent and waives the payment of all court costs 377
imposed upon the indigent offender. All such moneys shall be 378
transmitted on the first business day of each month by the clerk 379
of the court to the treasurer of state and deposited by the 380
treasurer in the reparations fund. 381
(2) The juvenile court in which a child is found to be a 383
delinquent child or a juvenile traffic offender for an act which, 384
if committed by an adult, would be an offense other than a 385
traffic offense that is not a moving violation, shall impose the 386
following sum as costs in the case in addition to any other court 387
costs that the court is required or permitted by law to impose 388
upon the delinquent child or juvenile traffic offender: 389
(a) Thirty dollars, if the act, if committed by an adult, 391
would be a felony; 392
(b) Nine dollars, if the act, if committed by an adult, 394
would be a misdemeanor. 395
The thirty or nine dollars court costs shall be collected 397
in all cases unless the court determines the juvenile is indigent 398
and waives the payment of all court costs, or enters an order on 399
its journal stating that it has determined that the juvenile is 400
indigent, that no other court costs are to be taxed in the case, 401
and that the payment of the thirty or nine dollars court costs is 402
waived. All such moneys COLLECTED DURING A MONTH shall be 403
transmitted on OR BEFORE the first business TWENTIETH day of each 405
THE FOLLOWING month by the clerk of the court to the treasurer of 407
state and deposited by the treasurer in the reparations fund. 408
11
(B) Whenever a person is charged with any offense other 410
than a traffic offense that is not a moving violation and posts 411
bail pursuant to sections 2937.22 to 2937.46 of the Revised Code, 412
Criminal Rule 46, or Traffic Rule 4, the court shall add to the 413
amount of the bail the thirty or nine dollars required to be paid 414
by division (A)(1) of this section. The thirty or nine dollars 415
shall be retained by the clerk of the court until the person is 416
convicted, pleads guilty, forfeits bail, is found not guilty, or 417
has the charges against him dismissed. If the person is 418
convicted, pleads guilty, or forfeits bail, the clerk shall 419
transmit the thirty or nine dollars to the treasurer of state, 420
who shall deposit it in the reparations fund. If the person is 421
found not guilty or the charges against him are dismissed, the 422
clerk shall return the thirty or nine dollars to the person. 423
(C) No person shall be placed or held in jail for failing 425
to pay the additional thirty or nine dollars court costs or bail 426
that are required to be paid by this section. 427
(D) As used in this section: 429
(1) "Moving violation" means any violation of any statute 431
or ordinance, other than section 4513.263 of the Revised Code or 432
an ordinance that is substantially equivalent to that section, 433
that regulates the operation of vehicles, streetcars, or 434
trackless trolleys on highways or streets or that regulates size 435
or load limitations or fitness requirements of vehicles. "Moving 436
violation" does not include the violation of any statute or 437
ordinance that regulates pedestrians or the parking of vehicles. 438
(2) "Bail" means cash, a check, a money order, a credit 440
card, or any other form of money that is posted by or for an 441
offender pursuant to sections 2937.22 to 2937.46 of the Revised 442
Code, Criminal Rule 46, or Traffic Rule 4 to prevent the offender 443
from being placed or held in a detention facility, as defined in 444
section 2921.01 of the Revised Code. 445
Sec. 2949.091. (A)(1) The court, in which any person is 454
convicted of or pleads guilty to any offense other than a traffic 455
12
offense that is not a moving violation, shall impose the sum of 456
eleven dollars as costs in the case in addition to any other 457
court costs that the court is required by law to impose upon the 458
offender. All such moneys COLLECTED DURING A MONTH shall be 459
transmitted on OR BEFORE the first business TWENTIETH day of each 461
THE FOLLOWING month by the clerk of the court to the treasurer of 463
state and deposited by the treasurer of state into the general 464
revenue fund. The court shall not waive the payment of the 465
additional eleven dollars court costs, unless the court
determines that the offender is indigent and waives the payment 466
of all court costs imposed upon the indigent offender. 467
(2) The juvenile court, in which a child is found to be a 469
delinquent child or a juvenile traffic offender for an act which, 470
if committed by an adult, would be an offense other than a 471
traffic offense that is not a moving violation, shall impose the 472
sum of eleven dollars as costs in the case in addition to any 473
other court costs that the court is required or permitted by law 474
to impose upon the delinquent child or juvenile traffic offender. 475
All such moneys COLLECTED DURING A MONTH shall be transmitted on 476
OR BEFORE the first business TWENTIETH day of each THE FOLLOWING 478
month by the clerk of the court to the treasurer of state and 480
deposited by the treasurer of state into the general revenue
fund. The eleven dollars court costs shall be collected in all 481
cases unless the court determines the juvenile is indigent and 482
waives the payment of all court costs, or enters an order on its 483
journal stating that it has determined that the juvenile is 484
indigent, that no other court costs are to be taxed in the case, 485
and that the payment of the eleven dollars court costs is waived. 486
(B) Whenever a person is charged with any offense other 488
than a traffic offense that is not a moving violation and posts 489
bail, the court shall add to the amount of the bail the eleven 490
dollars required to be paid by division (A)(1) of this section. 491
The eleven dollars shall be retained by the clerk of the court 492
until the person is convicted, pleads guilty, forfeits bail, is 493
13
found not guilty, or has the charges against him dismissed. If 494
the person is convicted, pleads guilty, or forfeits bail, the 495
clerk shall transmit the eleven dollars ON OR BEFORE THE 496
TWENTIETH DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH THE 497
PERSON WAS CONVICTED, PLEADED GUILTY, OR FORFEITED BAIL to the 498
treasurer of state, who shall deposit it into the general revenue 499
fund. If the person is found not guilty or the charges against 500
him are dismissed, the clerk shall return the eleven dollars to 501
the person. 502
(C) No person shall be placed or held in a detention 504
facility for failing to pay the additional eleven dollars court 505
costs or bail that are required to be paid by this section. 506
(D) As used in this section: 508
(1) "Moving violation" and "bail" have the same meanings 510
as in section 2743.70 of the Revised Code. 511
(2) "Detention facility" has the same meaning as in 513
section 2921.01 of the Revised Code. 514
Sec. 3109.14. As used in this section, "birth record" and 523
"certification of birth" have the meanings given in section 524
3705.01 of the Revised Code. 525
The director of health, a person authorized by the 527
director, a local commissioner of health, or a local registrar of 528
vital statistics shall charge and collect for each copy of a 529
birth record and for each certification of birth a fee of two 530
dollars, and for each copy of a death record a fee of two 531
dollars, in addition to the fee imposed by section 3705.24 or any 532
other section of the Revised Code. A local commissioner of 533
health or a local registrar of vital statistics may retain an 534
amount of each additional fee that he collects COLLECTED, not to 535
exceed three per cent of the amount of the additional fee, to be 537
used for costs directly related to the collection of the fee and 538
the forwarding of the fee to the treasurer of state. 539
Upon the filing for a divorce decree under section 3105.10 541
or a decree of dissolution under section 3105.65 of the Revised 542
14
Code, a court of common pleas shall charge and collect a fee of 543
ten dollars in addition to any other court costs or fees. The 544
county clerk of courts may retain an amount of each additional 545
fee that he collects COLLECTED, not to exceed three per cent of 546
the amount of the additional fee, to be used for costs directly 548
related to the collection of the fee and the forwarding of the 549
fee to the treasurer of state. 550
The additional fees collected, but not retained, under this 552
section during each month shall be forwarded not later than the 553
fifth TWENTIETH day of the immediately following month to the 554
treasurer of state, who shall deposit the fees in the state 556
treasury to the credit of the children's trust fund, which is 557
hereby created.
The treasurer of state shall invest the moneys in the fund, 559
and all earnings resulting from investment of the fund shall be 560
credited to the fund, except that actual administrative costs 561
incurred by the treasurer of state in administering the fund may 562
be deducted from the earnings resulting from investments. The 563
amount that may be deducted shall not exceed three per cent of 564
the total amount of fees credited to the fund in each fiscal 565
year, except that the children's trust fund board may approve an 566
amount for actual administrative costs exceeding three per cent 567
but not exceeding four per cent of such amount. The balance of 568
the investment earnings shall be credited to the fund. Moneys 569
credited to the fund shall be used only for the purposes 570
described in sections 3109.17 and 3109.18 of the Revised Code. 571
Sec. 3316.03. (A) The auditor of state shall declare a 580
school district to be in a state of fiscal watch if the auditor 581
of state determines that division (A)(1), (2), or (3) of this 582
section applies to the school district: 583
(1) All of the following conditions are satisfied with 585
respect to the school district: 586
(a) An operating deficit has been certified for the 588
current fiscal year by the auditor of state under section 589
15
3313.483 of the Revised Code, and the certified operating deficit 591
exceeds eight per cent of the school district's general fund 592
revenue for the preceding fiscal year; 593
(b) The unencumbered cash balance in the school district's 596
general fund at the close of the preceding fiscal year, less any 597
advances of property taxes, was less than eight per cent of the 598
expenditures made from the general fund for the preceding fiscal 599
year;
(c) A majority of the voting electors have not voted in 601
favor of levying a tax under section 5705.194 or 5705.21 or 603
Chapter 5748. of the Revised Code that the auditor of state 604
expects will raise enough additional revenue in the next 605
succeeding fiscal year that divisions (A)(1)(a) and (b) of this 606
section will not apply to the district in such next succeeding 607
fiscal year.
(2) The school district has outstanding securities issued 610
under division (A)(4) of section 3316.06 of the Revised Code and 613
its financial planning and supervision commission has been 614
terminated under section 3316.16 of the Revised Code. 616
(3) The school district has received an advancement under 618
section 3316.20 of the Revised Code. 619
(B) The auditor of state, after consulting with the 621
superintendent of public instruction, shall issue an order 622
declaring a school district to be in a state of fiscal emergency 624
if the auditor of state determines that division (B)(1), (2), 625
(3), or (4) of this section applies to the school district: 626
(1) All of the following conditions are satisfied with 628
respect to the school district: 629
(a) The board of education of the school district is not 631
able to demonstrate, to the auditor of state's satisfaction, the 632
district's ability to repay outstanding loans received pursuant 633
to section 3313.483 of the Revised Code or to repay securities 634
issued pursuant to section 133.301 of the Revised Code in 635
accordance with applicable repayment schedules unless the board 636
16
requests additional loans under section 133.301 of the Revised 638
Code in an aggregate principal amount exceeding fifty per cent of 639
the sum of the following: 640
(i) The aggregate original principal amount of loans 643
received in the preceding fiscal year under section 3313.483 of 644
the Revised Code;
(ii) The aggregate amount borrowed by the district under 646
section 133.301 of the Revised Code, excluding any additional 648
amount borrowed as authorized under division (C) of that section. 649
(b) An operating deficit has been certified for the 651
current fiscal year by the auditor of state under section 652
3313.483 of the Revised Code, and the certified operating deficit 654
exceeds fifteen per cent of the school district's general fund 655
revenue for the preceding fiscal year. In determining the amount 656
of an operating deficit under division (B)(1)(b) of this section, 657
the auditor of state shall credit toward the amount of that 658
deficit only the amount that may be borrowed from the spending 659
reserve balance as determined under section 133.301 and division 660
(G)(F) of section 5705.29 of the Revised Code. 661
(c) A majority of the voting electors have not voted in 663
favor of levying a tax under section 5705.194 or 5705.21 or 665
Chapter 5748. of the Revised Code that the auditor of state 666
expects will raise enough additional revenue in the next 667
succeeding fiscal year that divisions (A)(1)(a) and (b) of this 668
section will not apply to the district in such next succeeding 669
fiscal year.
(d) The school district is one that, at the time of the 671
auditor of state's determination under this section, had a total 673
student count of more than ten thousand students as most recently 674
determined by the department of education pursuant to section 676
3317.03 of the Revised Code. 677
(2) The school district board fails, pursuant to section 680
3316.04 of the Revised Code, to submit a plan acceptable to the 681
state superintendent of public instruction within one hundred 682
17
twenty days of the auditor of state's declaration under division 683
(A) of this section; 684
(3) A declaration of fiscal emergency is required by 686
division (D) of section 3316.04 of the Revised Code; 687
(4) The school district has received more than one 689
advancement under section 3316.20 of the Revised Code within a 691
two-year period, or has received only one such advancement but 692
also has an operating deficit as described in division (B)(1)(b) 693
of this section.
(C) In making the determinations under this section, the 695
auditor of state may use financial reports required under section 697
117.43 of the Revised Code; tax budgets, certificates of 698
estimated resources and amendments thereof, annual appropriating 699
measures and spending plans, and any other documents or 700
information prepared pursuant to Chapter 5705. of the Revised 701
Code; and any other documents, records, or information available 702
to the auditor of state that indicate the conditions described in 703
divisions (A) and (B) of this section.
(D) The auditor of state shall certify the action taken 705
under division (A) or (B) of this section to the board of 706
education of the school district, the director of budget and 707
management, the mayor or county auditor who could be required to 708
act pursuant to division (B)(1) of section 3316.05 of the Revised
Code, and to the superintendent of public instruction. 709
(E) A determination by the auditor of state under this 711
section that a fiscal emergency condition does not exist is final 712
and conclusive and not appealable. A determination by the 713
auditor of state under this section that a fiscal emergency 714
exists is final, except that the board of education of the school 715
district affected by such a determination may appeal the
determination of the existence of a fiscal emergency condition to 716
the court of appeals having territorial jurisdiction over the 717
school district. The appeal shall be heard expeditiously by the 718
court of appeals and for good cause shown shall take precedence 719
18
over all other civil matters except earlier matters of the same 720
character. Notice of such appeal must be filed with the auditor
of state and such court within thirty days after certification by 721
the auditor of state to the board of education of the school 722
district provided for in division (D) of this section. In such 723
appeal, determinations of the auditor of state shall be presumed 724
to be valid and the board of education shall have the burden of 725
proving, by clear and convincing evidence, that each of the 726
determinations made by the auditor of state as to the existence
of a fiscal emergency condition under this section was in error. 727
If the board of education fails, upon presentation of its case, 728
to prove by clear and convincing evidence that each such 729
determination by the auditor of state was in error, the court 730
shall dismiss the appeal. The board of education and the auditor 731
of state may introduce any evidence relevant to the existence or
nonexistence of such fiscal emergency conditions. The pendency 732
of any such appeal shall not affect or impede the operations of 733
this chapter; no restraining order, temporary injunction, or 734
other similar restraint upon actions consistent with this chapter 735
shall be imposed by the court or any court pending determination 736
of such appeal; and all things may be done under this chapter 737
that may be done regardless of the pendency of any such appeal.
Any action taken or contract executed pursuant to this chapter 738
during the pendency of such appeal is valid and enforceable among 739
all parties, notwithstanding the decision in such appeal. If the 740
court of appeals reverses the determination of the existence of a 741
fiscal emergency condition by the auditor of state, the 742
determination no longer has any effect, and any procedures 743
undertaken as a result of the determination shall be terminated. 744
Sec. 5705.12. In addition to the funds provided for by 753
sections 5705.09 and, 5705.121, 5705.13, AND 5705.131 of the 755
Revised Code, the taxing authority of a subdivision may 756
establish, with the approval of and in the manner prescribed by 757
the auditor of state, such other funds as are desirable, and may 758
19
provide by ordinance or resolution that money derived from 759
specified sources other than the general property tax shall be 760
paid directly into such funds. The auditor of state shall 761
consult with the tax commissioner before giving his approval 762
APPROVING SUCH FUNDS.
Sec. 5705.13 5705.121. A municipal corporation may 771
establish in the manner provided by law a sanitary police pension 773
fund, an urban redevelopment tax increment equivalent fund, or a 774
cemetery fund. A township may establish by law a cemetery fund. 775
Sec. 5705.13. (A) EXCEPT AS OTHERWISE PROVIDED FOR A 777
BOARD OF EDUCATION UNDER DIVISION (H) OF SECTION 5705.29 OF THE 778
REVISED CODE, A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION 780
OR ORDINANCE, MAY ESTABLISH A RESERVE BALANCE ACCOUNT TO 781
ACCUMULATE CURRENTLY AVAILABLE RESOURCES FOR ANY OF THE FOLLOWING 782
PURPOSES:
(1) TO STABILIZE SUBDIVISION BUDGETS AGAINST CYCLICAL 784
CHANGES IN REVENUES AND EXPENDITURES; 785
(2) EXCEPT AS OTHERWISE PROVIDED BY THIS SECTION, TO 787
PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A SELF-INSURANCE PROGRAM 788
FOR THE SUBDIVISION, IF THE SUBDIVISION IS PERMITTED BY LAW TO 789
ESTABLISH SUCH A PROGRAM;
(3) TO PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A 791
RETROSPECTIVE RATINGS PLAN FOR WORKERS' COMPENSATION. 792
THE ORDINANCE OR RESOLUTION ESTABLISHING A RESERVE BALANCE 794
ACCOUNT SHALL STATE THE PURPOSE FOR WHICH THE RESERVE BALANCE 795
ACCOUNT IS ESTABLISHED, THE FUND IN WHICH THE ACCOUNT IS TO BE 796
ESTABLISHED, AND THE TOTAL AMOUNT OF MONEY TO BE RESERVED IN THE 797
ACCOUNT.
A SUBDIVISION THAT PARTICIPATES IN A RISK-SHARING POOL, BY 799
WHICH GOVERNMENTS POOL RISKS AND FUNDS AND SHARE IN THE COSTS OF 800
LOSSES, SHALL NOT ESTABLISH A RESERVE BALANCE ACCOUNT TO PROVIDE 801
SELF-INSURANCE FOR THE SUBDIVISION. 802
A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT HAVE MORE 804
THAN THREE RESERVE BALANCE ACCOUNTS AT ANY TIME. NOT MORE THAN 806
20
ONE RESERVE BALANCE ACCOUNT MAY BE ESTABLISHED FOR EACH OF THE 807
PURPOSES PERMITTED UNDER THIS SECTION. MONEY TO THE CREDIT OF A 808
RESERVE BALANCE ACCOUNT MAY BE EXPENDED ONLY FOR THE PURPOSE FOR 809
WHICH THE ACCOUNT WAS ESTABLISHED.
A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE 811
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION SHALL BE ESTABLISHED 812
IN THE GENERAL FUND OF THE SUBDIVISION, AND THE AMOUNT OF MONEY 813
TO BE RESERVED IN THAT ACCOUNT IN ANY FISCAL YEAR SHALL NOT 814
EXCEED FIVE PER CENT OF THE GENERAL FUND REVENUE FOR THE 815
PRECEDING FISCAL YEAR. SUBJECT TO DIVISION (G) OF SECTION 816
5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT 817
ESTABLISHED UNDER DIVISION (A)(1) OF THIS SECTION SHALL NOT BE 818
CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF THE 819
SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION 820
(A)(1) OF SECTION 5705.36 OF THE REVISED CODE. 821
AT ANY TIME, A TAXING AUTHORITY OF A SUBDIVISION, BY 823
RESOLUTION OR ORDINANCE, MAY REDUCE OR ELIMINATE THE RESERVE 825
BALANCE IN A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE 826
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION. 827
A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE 829
DESCRIBED IN DIVISION (A)(2) OR (3) OF THIS SECTION SHALL BE 831
ESTABLISHED IN THE GENERAL FUND OF THE SUBDIVISION OR BY THE 833
ESTABLISHMENT OF A SEPARATE INTERNAL SERVICE FUND ESTABLISHED TO 834
ACCOUNT FOR THE OPERATION OF THE SELF-INSURANCE OR RETROSPECTIVE 835
RATINGS PLAN PROGRAM, AND SHALL BE BASED ON SOUND ACTUARIAL 836
PRINCIPLES. THE TOTAL AMOUNT OF MONEY IN A RESERVE BALANCE 837
ACCOUNT FOR SELF-INSURANCE MAY BE EXPRESSED IN DOLLARS OR AS THE 838
AMOUNT DETERMINED TO REPRESENT AN ADEQUATE RESERVE ACCORDING TO 839
SOUND ACTUARIAL PRINCIPLES. 840
A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 842
ORDINANCE, MAY RESCIND A RESERVE BALANCE ACCOUNT ESTABLISHED 843
UNDER THIS DIVISION. IF A RESERVE BALANCE ACCOUNT IS RESCINDED, 844
MONEY THAT HAS ACCUMULATED IN THE ACCOUNT SHALL BE TRANSFERRED TO 845
THE FUND OR FUNDS FROM WHICH THE MONEY ORIGINALLY WAS 846
21
TRANSFERRED.
(B) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 848
ORDINANCE, MAY ESTABLISH A SPECIAL REVENUE FUND FOR THE PURPOSE 850
OF ACCUMULATING RESOURCES FOR THE PAYMENT OF ACCUMULATED SICK 851
LEAVE AND VACATION LEAVE, AND FOR PAYMENTS IN LIEU OF TAKING 852
COMPENSATORY TIME OFF, UPON THE TERMINATION OF EMPLOYMENT OR THE 853
RETIREMENT OF OFFICERS AND EMPLOYEES OF THE SUBDIVISION. THE 854
SPECIAL REVENUE FUND MAY ALSO ACCUMULATE RESOURCES FOR PAYMENT OF 855
SALARIES DURING ANY FISCAL YEAR WHEN THE NUMBER OF PAY PERIODS
EXCEEDS THE USUAL AND CUSTOMARY NUMBER OF PAY PERIODS. 856
NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 OF THE 857
REVISED CODE, THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, 858
MAY TRANSFER MONEY TO THE SPECIAL REVENUE FUND FROM ANY OTHER 860
FUND OF THE SUBDIVISION FROM WHICH SUCH PAYMENTS MAY LAWFULLY BE 861
MADE. THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, MAY 862
RESCIND A SPECIAL REVENUE FUND ESTABLISHED UNDER THIS DIVISION.
IF A SPECIAL REVENUE FUND IS RESCINDED, MONEY THAT HAS 863
ACCUMULATED IN THE FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS 864
FROM WHICH THE MONEY ORIGINALLY WAS TRANSFERRED. 865
(C) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 867
ORDINANCE, MAY ESTABLISH A CAPITAL PROJECTS FUND FOR THE PURPOSE 868
OF ACCUMULATING RESOURCES FOR THE ACQUISITION, CONSTRUCTION, OR 869
IMPROVEMENT OF FIXED ASSETS OF THE SUBDIVISION. FOR THE PURPOSES 870
OF THIS SECTION, "FIXED ASSETS" INCLUDES MOTOR VEHICLES. MORE 871
THAN ONE CAPITAL PROJECTS FUND MAY BE ESTABLISHED AND MAY EXIST 872
AT ANY TIME. THE ORDINANCE OR RESOLUTION SHALL IDENTIFY THE 873
SOURCE OF THE MONEY TO BE USED TO ACQUIRE, CONSTRUCT, OR IMPROVE
THE FIXED ASSETS IDENTIFIED IN THE RESOLUTION OR ORDINANCE, THE 874
AMOUNT OF MONEY TO BE ACCUMULATED FOR THAT PURPOSE, THE PERIOD OF 875
TIME OVER WHICH THAT AMOUNT IS TO BE ACCUMULATED, AND THE FIXED 876
ASSETS THAT THE TAXING AUTHORITY INTENDS TO ACQUIRE, CONSTRUCT, 877
OR IMPROVE WITH THE MONEY TO BE ACCUMULATED IN THE FUND. 878
A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT ACCUMULATE 880
MONEY IN A CAPITAL PROJECTS FUND FOR MORE THAN FIVE YEARS AFTER 882
22
THE RESOLUTION OR ORDINANCE ESTABLISHING THE FUND IS ADOPTED. IF 883
THE SUBDIVISION HAS NOT ENTERED INTO A CONTRACT FOR THE 884
ACQUISITION, CONSTRUCTION, OR IMPROVEMENT OF FIXED ASSETS FOR 885
WHICH MONEY WAS ACCUMULATED IN SUCH A FUND BEFORE THE END OF THAT 886
FIVE-YEAR PERIOD, THE FISCAL OFFICER OF THE SUBDIVISION SHALL 888
TRANSFER ALL MONEY IN THE FUND TO THE FUND OR FUNDS FROM WHICH
THAT MONEY ORIGINALLY WAS TRANSFERRED OR THE FUND THAT ORIGINALLY 889
WAS INTENDED TO RECEIVE THE MONEY. 890
A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 892
ORDINANCE, MAY RESCIND A CAPITAL PROJECTS FUND. IF A CAPITAL 894
PROJECTS FUND IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE 895
FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH THE 896
MONEY ORIGINALLY WAS TRANSFERRED.
NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 OF 898
THE REVISED CODE, THE TAXING AUTHORITY OF A SUBDIVISION, BY 899
RESOLUTION OR ORDINANCE, MAY TRANSFER MONEY TO THE CAPITAL 901
PROJECTS FUND FROM ANY OTHER FUND OF THE SUBDIVISION THAT MAY
LAWFULLY BE USED FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, OR 903
IMPROVING THE FIXED ASSETS IDENTIFIED IN THE RESOLUTION OR 904
ORDINANCE.
Sec. 5705.131. A TAXING AUTHORITY OF A SUBDIVISION MAY 906
ESTABLISH A NONEXPENDABLE TRUST FUND FOR THE PURPOSE OF RECEIVING 907
DONATIONS OR CONTRIBUTIONS THAT THE DONOR OR CONTRIBUTOR REQUIRES 908
TO BE MAINTAINED INTACT. THE PRINCIPAL OF SUCH FUND MAY BE 909
INVESTED, AND THE INVESTMENT EARNINGS ON THE PRINCIPAL SHALL BE 910
CREDITED TO THE FUND. THE PRINCIPAL OF THE FUND, AND ANY 911
ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE 913
REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THE FUND, SHALL 914
NOT BE CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF
THE SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION 915
(A)(1) OF SECTION 5705.36 OF THE REVISED CODE. ONLY INVESTMENT 917
EARNINGS ARISING FROM INVESTMENT OF THE PRINCIPAL OR INVESTMENT
OF SUCH ADDITIONS TO PRINCIPAL MAY BE CONSIDERED AN UNENCUMBERED 918
BALANCE OR REVENUE OF THE SUBDIVISION UNDER THAT DIVISION. 919
23
Sec. 5705.29. The tax budget shall present the following 928
information in such detail as is prescribed by the auditor of 929
state, unless an alternative form of the budget is permitted 930
under section 5705.281 of the Revised Code: 931
(A)(1) A statement of the necessary current operating 933
expenses for the ensuing fiscal year for each department and 934
division of the subdivision, classified as to personal services 935
and other expenses, and the fund from which such expenditures are 936
to be made. Except in the case of a school district, this 937
estimate may include a contingent expense not designated for any 938
particular purpose, and not to exceed three per cent of the total 939
amount of appropriations for current expenses. In the case of a 940
school district, this estimate may include a contingent expense 941
not designated for any particular purpose and not to exceed 942
thirteen per cent of the total amount of appropriations for 943
current expenses. 944
(2) A statement of the expenditures for the ensuing fiscal 946
year necessary for permanent improvements, exclusive of any 947
expense to be paid from bond issues, classified as to the 948
improvements contemplated by the subdivision and the fund from 949
which such expenditures are to be made; 950
(3) The amounts required for the payment of final 952
judgments; 953
(4) A statement of expenditures for the ensuing fiscal 955
year necessary for any purpose for which a special levy is 956
authorized, and the fund from which such expenditures are to be 957
made; 958
(5) Comparative statements, so far as possible, in 960
parallel columns of corresponding items of expenditures for the 961
current fiscal year and the two preceding fiscal years. 962
(B)(1) An estimate of receipts from other sources than the 964
general property tax during the ensuing fiscal year, which shall 965
include an estimate of unencumbered balances at the end of the 966
current fiscal year, and the funds to which such estimated 967
24
receipts are credited; 968
(2) The amount each fund requires from the general 970
property tax, which shall be the difference between the 971
contemplated expenditure from the fund and the estimated 972
receipts, as provided in this section. The section of the 973
Revised Code under which the tax is authorized shall be set 974
forth. 975
(3) Comparative statements, so far as possible, in 977
parallel columns of taxes and other revenues for the current 978
fiscal year and the two preceding fiscal years. 979
(C)(1) The amount required for debt charges; 981
(2) The estimated receipts from sources other than the tax 983
levy for payment of such debt charges, including the proceeds of 984
refunding bonds to be issued to refund bonds maturing in the next 985
succeeding fiscal year; 986
(3) The net amount for which a tax levy shall be made, 988
classified as to bonds authorized and issued prior to January 1, 989
1922, and those authorized and issued subsequent to such date, 990
and as to what portion of the levy will be within and what in 991
excess of the ten-mill limitation. 992
(D) An estimate of amounts from taxes authorized to be 994
levied in excess of the ten-mill limitation on the tax rate, and 995
the fund to which such amounts will be credited, together with 996
the sections of the Revised Code under which each such tax is 997
exempted from all limitations on the tax rate. 998
(E)(1) A board of education may include in its budget for 1,000
the fiscal year in which a levy proposed under section 5705.194, 1,001
5705.21, or 5705.213, or the original levy under section 5705.212 1,002
of the Revised Code is first extended on the tax list and 1,003
duplicate an estimate of expenditures to be known as a voluntary 1,004
contingency reserve balance, which shall not be greater than 1,005
twenty-five per cent of the total amount of the levy estimated to 1,006
be available for appropriation in such year. 1,007
(2) A board of education may include in its budget for the 1,009
25
fiscal year following the year in which a levy proposed under 1,010
section 5705.194, 5705.21, or 5705.213, or the original levy 1,011
under section 5705.212 of the Revised Code is first extended on 1,012
the tax list and duplicate an estimate of expenditures to be 1,013
known as a voluntary contingency reserve balance, which shall not 1,014
be greater than twenty per cent of the amount of the levy 1,015
estimated to be available for appropriation in such year. 1,016
(3) Except as provided in division (E)(4) of this section, 1,018
the full amount of any reserve balance the board includes in its 1,019
budget shall be retained by the county auditor and county 1,020
treasurer out of the first semiannual settlement of taxes until 1,021
the beginning of the next succeeding fiscal year, and thereupon, 1,022
with the depository interest apportioned thereto, it shall be 1,023
turned over to the board of education, to be used for the 1,024
purposes of such fiscal year. 1,025
(4) A board of education may, by a two-thirds vote of all 1,027
members of the board, MAY appropriate any amount withheld as a 1,028
voluntary contingency reserve balance during the fiscal year for 1,029
any lawful purpose, provided that prior to such appropriation the 1,030
board of education has authorized the expenditure of all amounts 1,031
appropriated for contingencies under section 5705.40 of the 1,032
Revised Code. Upon request by the board of education, the county 1,033
auditor shall draw a warrant on the district's account in the 1,034
county treasury payable to the district in the amount requested. 1,035
(F)(1) As used in this division, "police or fire 1,037
department equipment expenditures" includes expenditures for 1,038
equipment used to provide ambulance or emergency medical services 1,039
operated by a police or fire department. 1,040
A board of township trustees may include in its budget an 1,043
estimate of expenditures to be known as a reserve balance for 1,044
police or fire department equipment or road maintenance equipment 1,045
expenditures. This reserve balance shall not exceed ten per cent 1,046
of the total estimated appropriations included in the township 1,047
budget estimate. If, in accordance with division (A) of section 1,048
26
505.83 of the Revised Code, the board of township trustees has 1,049
unanimously adopted a resolution establishing the reserve balance 1,050
account and specifying the reason for its creation and has 1,051
certified the resolution to the county auditor, the full amount 1,052
of the reserve balance, as allowed by the budget commission, 1,053
shall be turned over to the township each year by the county 1,054
auditor and county treasurer out of the second semiannual 1,055
settlement of taxes until the date specified in the resolution, 1,056
which shall not be later than five years from the date of the 1,057
first such deposit in the account, or until the reserve amount 1,058
has been reached, whichever occurs first. 1,059
(2) Upon receipt of a certified copy of a resolution to 1,061
rescind the creation of a township reserve balance account 1,062
pursuant to division (B) of section 505.83 of the Revised Code, 1,063
the county auditor shall close the account and transfer the 1,064
account moneys and depository interest apportioned to it to the 1,065
township's general fund. 1,066
(G)(1) A board of education may include a spending reserve 1,068
in its budget for fiscal years ending on or before June 30, 2002. 1,070
The spending reserve shall consist of an estimate of expenditures 1,072
not to exceed the district's spending reserve balance. A 1,073
district's spending reserve balance is the amount by which the 1,074
designated percentage of the district's estimated personal 1,075
property taxes to be settled during the calendar year in which 1,076
the fiscal year ends exceeds the estimated amount of personal 1,077
property taxes to be so settled and received by the district 1,078
during that fiscal year. Moneys from a spending reserve shall be 1,079
appropriated in accordance with section 133.301 of the Revised 1,080
Code. 1,081
(2) For the purposes of computing a school district's 1,083
spending reserve balance for a fiscal year, the designated 1,084
percentage shall be as follows: 1,085
Fiscal year ending in: Designated percentage 1,088
1998 50% 1,090
27
1999 40% 1,091
2000 30% 1,092
2001 20% 1,093
2002 10% 1,094
(H) As used in this division: 1,097
(1) "Police or fire department equipment expenditures" 1,099
includes expenditures for equipment used to provide ambulance or 1,100
emergency medical services operated by a police or fire 1,101
department.
(2) "Detention facility" means any place used for the 1,103
confinement of a person charged with or convicted of any crime or 1,105
alleged or found to be a delinquent or unruly child.
The legislative authority of a municipal corporation may 1,107
include in its budget an estimate of expenditures to be known as 1,108
a reserve balance for police or fire department equipment 1,109
expenditures, for constructing, acquiring, equipping, or 1,110
repairing a detention facility, or for road maintenance equipment 1,111
expenditures by creating, by ordinance or resolution, a reserve 1,112
balance account. Money credited to the account may be derived 1,113
from any general fund sources or from the proceeds of a special 1,114
levy that may be used for the purpose for which the account is 1,115
established. The ordinance or resolution shall state that money 1,116
in the account may be expended only for the purpose for which the 1,117
account is established, that the account will be maintained until 1,119
a specified date not to exceed five years from the date of the 1,120
first deposit in the account, and that the total amount of money 1,121
in all reserve balance accounts derived from general fund sources 1,122
shall not exceed ten per cent of the current total estimated 1,123
expenditures from the municipal corporation's general fund, and 1,124
the total amount of money in all reserve balance accounts derived 1,125
from a special levy shall not exceed ten per cent of the current 1,126
total estimated expenditures from the special levy. The 1,127
legislative authority shall certify a copy of the ordinance or 1,128
resolution to the county auditor. Upon receiving the certified 1,129
28
copy, the county auditor and county treasurer shall turn over to 1,130
the municipal corporation, out of the second semiannual 1,132
settlement of taxes, any amount of the reserve balance to be
derived from property tax sources, but only until the date 1,134
specified in the ordinance or resolution or until the reserve 1,135
amount as indicated in the ordinance or resolution has been 1,136
reached, whichever occurs first.
A legislative authority may create a separate reserve 1,138
balance account under this division for police department 1,139
equipment expenditures, fire department equipment expenditures, 1,140
or ambulance or emergency medical services equipment 1,141
expenditures, or any combination thereof. Each such account is 1,142
subject to the provisions of this section regarding a single 1,143
account for all such purposes. 1,144
Upon receiving a certified copy of an ordinance or 1,146
resolution to rescind the creation of a municipal reserve balance 1,147
account, the county auditor shall close the account and transfer 1,148
all money in the account to the municipal general fund, if the 1,149
account is derived from the general fund, or to the fund to which 1,150
proceeds of the special levy are credited, if the account is 1,151
derived from the proceeds of a special levy. 1,152
(I) A board of county commissioners that has adopted a 1,155
resolution establishing a reserve balance account under section 1,156
305.23 of the Revised Code may include in its budget an estimate 1,158
of expenditures to be known as a reserve balance for the purpose 1,159
for which the account was established under that section. The 1,160
reserve shall not exceed ten per cent of the total estimated 1,161
appropriations included in the budget estimate of the general 1,162
fund in the case of a reserve balance account established under 1,163
division (A) of that section, or ten per cent of the total 1,165
estimated appropriations included in the budget estimate of the 1,166
special fund in which the account is established in the case of a 1,167
reserve balance account established under division (B) of that 1,168
section. If the board of county commissioners has certified a 1,169
29
copy of a resolution to the county auditor pursuant to that 1,170
section, the county auditor and county treasurer shall deposit 1,171
the amount of the annual reserve balance into the reserve balance 1,172
account out of the second semiannual settlement of taxes until 1,173
the date specified in that resolution, or until the reserve 1,174
amount specified in the resolution has been reached, whichever 1,175
occurs first.
Upon receiving a certified copy of a resolution rescinding 1,177
a reserve balance account, the county auditor shall close the 1,178
account and transfer all money in the account to a special fund 1,179
created for the purpose of receiving that money. Money deposited 1,181
into the fund from the reserve balance account shall be expended 1,182
only for the purpose for which the account was established. 1,183
(J) The(G) EXCEPT AS OTHERWISE PROVIDED IN THIS DIVISION, 1,185
THE county budget commission shall not reduce the taxing 1,187
authority of a board of township trustees, a board of county 1,188
commissioners, or the legislative authority of a municipal 1,189
corporation SUBDIVISION as a result of the creation of a reserve 1,191
balance account, and. EXCEPT AS OTHERWISE PROVIDED IN THIS 1,192
DIVISION, THE COUNTY BUDGET COMMISSION shall not consider the 1,194
amount in a reserve balance account OF A TOWNSHIP, COUNTY, OR
MUNICIPAL CORPORATION as an unencumbered balance or as revenue 1,196
for the purposes of division (E)(3) or (4) of section 5747.51 or 1,197
division (E)(3) or (4) of section 5747.62 of the Revised Code. 1,198
THE COUNTY BUDGET COMMISSION MAY REQUIRE DOCUMENTATION OF THE 1,199
REASONABLENESS OF THE RESERVE BALANCE HELD IN ANY RESERVE BALANCE 1,200
ACCOUNT. THE COMMISSION SHALL CONSIDER ANY AMOUNT IN A RESERVE 1,201
BALANCE ACCOUNT THAT IT DETERMINES TO BE UNREASONABLE AS
UNENCUMBERED AND AS REVENUE FOR THE PURPOSES OF SECTIONS 5747.51 1,202
AND 5747.62 OF THE REVISED CODE AND MAY TAKE SUCH AMOUNTS INTO 1,203
CONSIDERATION WHEN DETERMINING WHETHER TO REDUCE THE TAXING 1,204
AUTHORITY OF A SUBDIVISION.
(K)(H)(1) Each board of education shall include in its tax 1,206
budget a budget reserve fund. The budget reserve fund shall 1,208
30
consist of money reserved for the fund from general fund revenues 1,209
or from other sources that may lawfully be credited to the 1,210
general fund AND SHALL ESTABLISH A RESERVE BALANCE ACCOUNT TO 1,213
ACCUMULATE CURRENTLY AVAILABLE RESOURCES TO STABILIZE THE SCHOOL
DISTRICT'S BUDGET AGAINST CYCLICAL CHANGES IN REVENUES AND 1,214
EXPENDITURES. The balance in the budget reserve fund BALANCE 1,216
ACCOUNT shall not at any time be less than five per cent of 1,217
general fund revenues for the most recently concluded fiscal 1,218
year, except as provided in division (K)(H)(2) or (3) of this 1,219
section, and except for deficiencies arising from the 1,221
appropriation of money from the fund ACCOUNT for unanticipated 1,222
deficiencies in revenue or other emergencies pursuant to a 1,223
resolution adopted by two-thirds of the membership of the board 1,224
of education specifying the reason for the appropriation. The 1,225
auditor of state and the superintendent of public instruction 1,226
jointly shall adopt rules governing conditions that constitute
unanticipated deficiencies in revenue or emergencies for which 1,227
appropriations may be made from a budget reserve fund BALANCE 1,228
ACCOUNT. The rules also shall provide that a board of education 1,230
that includes a BORROWS AGAINST ITS spending reserve ESTABLISHED 1,231
in its tax budget for a fiscal year under division (G)(F) of this 1,232
section is not subject to division (K)(H)(2) of this section for 1,234
that fiscal year. A board of education shall not appropriate 1,236
money from a budget reserve fund BALANCE ACCOUNT without filing a 1,238
schedule for replenishing the fund ACCOUNT with the
superintendent of public instruction and receiving approval of 1,240
the schedule from the superintendent of public instruction. 1,241
(2) Beginning with the fiscal year ending in 1999 and 1,243
continuing each fiscal year until the balance in the budget 1,245
reserve fund BALANCE ACCOUNT equals five per cent of the 1,247
district's revenues received for current expenses for the
preceding fiscal year, if the growth in a district's total 1,248
revenues received for current expenses from one fiscal year to 1,249
the next is three per cent or more, the board of education shall 1,250
31
credit to its budget reserve fund BALANCE ACCOUNT, from the 1,251
general fund or from other sources that may lawfully be credited 1,252
to the general fund, an amount not less than one per cent of the 1,253
revenue received for current expenses for the fiscal year, at 1,254
which time the balance in the budget reserve fund BALANCE ACCOUNT 1,255
shall be maintained as otherwise required under division 1,257
(K)(H)(1) of this section. 1,258
(3) The balance in the budget reserve fund BALANCE ACCOUNT 1,261
of a school district may be less than five per cent of the 1,262
general fund revenue for the most recently concluded fiscal year 1,263
in any fiscal year in which the school district is in a state of 1,264
fiscal watch or fiscal emergency pursuant to section 3316.03 of
the Revised Code. 1,265
(4) Notwithstanding any provision to the contrary in 1,267
Chapter 4117. of the Revised Code, the requirements of division 1,268
(K)(H) of this section prevail over any conflicting provisions of 1,270
agreements between employee organizations and public employers 1,271
entered into after November 21, 1997. 1,272
(5) Notwithstanding division (K)(H)(2) of this section, a 1,274
school district may, pursuant to rules adopted by the auditor of 1,275
state, credit less than one per cent of its prior year's revenue 1,276
received for current expenses into its budget reserve fund 1,277
BALANCE ACCOUNT.
Sec. 5705.35. (A) The certification of the budget 1,286
commission to the taxing authority of each subdivision or taxing 1,287
unit, as set forth in section 5705.34 of the Revised Code, shall 1,288
show the various funds of such subdivisions other than funds to 1,289
be created by transfer and shall be filed by the county budget 1,290
commission with such taxing authority on or before the first day 1,291
of March in the case of school districts and on or before the 1,292
first day of September in each year in the case of all other 1,293
taxing authorities. There shall be set forth on the credit side 1,294
of each fund the estimated unencumbered balances and receipts, 1,295
and if a tax is to be levied for such fund, the estimated revenue 1,296
32
to be derived therefrom, the rate of the levy, and what portion 1,297
thereof is within, and what in excess of, the ten-mill tax 1,298
limitation, and on the debit side, the total appropriations that 1,299
may be made therefrom. SUBJECT TO DIVISION (G) OF SECTION 1,300
5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT 1,301
ESTABLISHED UNDER SECTION 5705.13 OF THE REVISED CODE FOR THE 1,303
PURPOSE DESCRIBED IN DIVISION (A)(1) OF THAT SECTION, AND THE 1,304
PRINCIPAL OF A NONEXPENDABLE TRUST FUND ESTABLISHED UNDER SECTION 1,306
5705.131 OF THE REVISED CODE AND ANY ADDITIONS TO PRINCIPAL
ARISING FROM SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT 1,307
EARNINGS ARISING FROM THAT FUND, ARE NOT UNENCUMBERED BALANCES 1,308
FOR THE PURPOSES OF THIS SECTION. There shall be attached 1,310
thereto TO THE CERTIFICATION a summary, which shall be known as 1,312
the "official certificate of estimated resources," which THAT 1,313
shall state the total estimated resources of each fund of the 1,315
subdivision that are available for appropriation in the fiscal 1,316
year, other than funds to be created by transfer, and a statement 1,317
of the amount of the total tax duplicate of the school district 1,318
to be used in the collection of taxes for the following calendar 1,319
year. Before the end of the fiscal year, the taxing authority of 1,320
each subdivision and other taxing unit shall revise its tax 1,321
budget so that the total contemplated expenditures from any fund 1,322
during the ensuing fiscal year will not exceed the total 1,323
appropriations that may be made from such fund, as determined by 1,324
the budget commission in its certification; and such revised 1,325
budget shall be the basis of the annual appropriation measure. 1,326
(B)(1) Except as otherwise provided in division (B)(2) of 1,328
this section, revenues from real property taxes scheduled to be 1,329
settled on or before the tenth day of August and the fifteenth 1,330
day of February of a fiscal year under divisions (A) AND (C) and 1,332
(A) of section 321.24 of the Revised Code, and revenue from taxes 1,333
levied on personal property used in business scheduled to be 1,334
settled on or before the thirty-first day of October and the 1,335
thirtieth day of June of a fiscal year under divisions (B) AND 1,336
33
(D) and (B) of section 321.24 of the Revised Code shall not be 1,338
available for appropriation by a board of education prior to the 1,339
fiscal year in which such latest scheduled settlement date 1,340
occurs, except that moneys advanced to the treasurer of a board 1,341
of education under division (A)(2)(b) of section 321.34 of the 1,342
Revised Code shall be available for appropriation in the fiscal 1,343
year in which they are paid to the treasurer under such section. 1,344
If the date for any settlement of taxes is extended under 1,345
division (E) of section 321.24 of the Revised Code, the latest 1,346
date set forth in divisions (A) to (D) of that section shall be 1,347
used to determine in which fiscal year the revenues are first 1,348
available for appropriation. 1,349
(2) Revenues available for appropriation by a school 1,351
district during a fiscal year may include amounts borrowed in 1,352
that fiscal year under section 133.301 of the Revised Code in 1,353
anticipation of the collection of taxes that are to be included 1,354
in the settlements made under divisions (C) and (D) of section 1,355
321.24 of the Revised Code in the ensuing fiscal year. 1,356
Sec. 5705.36. (A)(1) On or about the first day of each 1,365
fiscal year, the fiscal officer of each subdivision and other 1,366
taxing unit shall certify to the county auditor the total amount 1,367
from all sources available for expenditures from each fund set up 1,368
in the tax budget or, if adoption of a tax budget was waived 1,369
under section 5705.281 of the Revised Code, from each fund 1,370
created by or on behalf of the taxing authority. The amount 1,371
certified shall include any UNENCUMBERED balances that existed at 1,372
the end of the preceding year, EXCLUDING ANY OF THE FOLLOWING: 1,373
(a) SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE 1,376
REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT ESTABLISHED UNDER 1,377
SECTION 5705.13 OF THE REVISED CODE FOR THE PURPOSE DESCRIBED IN 1,378
DIVISION (A)(1) OF THAT SECTION; 1,379
(b) THE PRINCIPAL OF A NONEXPENDABLE TRUST FUND 1,381
ESTABLISHED UNDER SECTION 5705.131 OF THE REVISED CODE AND ANY 1,382
ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE 1,383
34
REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THAT FUND. 1,384
A school district's certification shall separately show the 1,386
amount of any notes and unpaid and outstanding expenses on the 1,387
preceding thirtieth day of June that are to be paid from property 1,388
taxes that are to be settled during the current fiscal year under 1,389
divisions (C) and (D) of section 321.24 of the Revised Code, and 1,390
the amount of any spending reserve available for appropriation 1,391
during the current fiscal year under section 133.301 of the 1,392
Revised Code. The budget commission, taking into consideration 1,393
the balances and revenues to be derived from taxation and other 1,394
sources, shall revise its estimate of the amounts that will be 1,395
credited to each fund from such sources, and shall certify to the 1,396
taxing authority of each subdivision an amended official 1,397
certificate of estimated resources. If the subdivision collects 1,398
revenue available for the purposes of such fiscal year from a new 1,399
source that is not included in an official certificate, or if the 1,400
actual balances and receipts in any fund exceed the certified 1,401
estimate, then upon the certification by its fiscal officer of 1,402
the amount of the excess balances and receipts, the commission 1,403
shall certify an amended official certificate including them. 1,404
(2) Upon a determination by the treasurer of a board of 1,406
education that the revenue to be collected by a school district 1,407
will be greater or less than the amount included in an official 1,408
certificate, the treasurer shall certify the amount of the 1,409
deficiency or excess to the commission, and the commission shall 1,410
certify an amended official certificate reflecting the deficiency 1,411
or excess. 1,412
(3) Upon (2) SUBJECT TO DIVISIONS (A)(3) AND (4) OF THIS 1,415
SECTION, UPON a determination by the county auditor FISCAL 1,416
OFFICER OF A SUBDIVISION that the revenue to be collected by the 1,417
county SUBDIVISION will be greater or less than the amount 1,419
included in an official certificate, the county auditor shall 1,420
FISCAL OFFICER MAY certify the amount of the deficiency or excess 1,421
to the commission, and if the commission determines that the 1,422
35
auditor's FISCAL OFFICER'S certification is reasonable, the 1,423
commission shall certify an amended official certificate 1,425
reflecting the deficiency or excess. 1,426
(4)(3) Upon a determination by the fiscal officer of a 1,428
municipal corporation SUBDIVISION that the revenue to be 1,429
collected by the municipal corporation SUBDIVISION will be 1,431
greater or less than the amount included in the AN official 1,433
certificate AND THE LEGISLATIVE AUTHORITY INTENDS TO APPROPRIATE 1,434
AND EXPEND THE EXCESS REVENUE, the fiscal officer shall certify 1,437
the amount of the excess or deficiency to the commission, and if 1,438
the commission determines that the fiscal officer's certification 1,439
is reasonable, the commission shall certify an amended official 1,440
certificate reflecting the deficiency or excess.
(4) UPON A DETERMINATION BY THE FISCAL OFFICER OF A 1,442
SUBDIVISION THAT THE REVENUE TO BE COLLECTED BY THE SUBDIVISION 1,443
WILL BE LESS THAN THE AMOUNT INCLUDED IN AN OFFICIAL CERTIFICATE 1,444
AND THAT THE AMOUNT OF THE DEFICIENCY WILL REDUCE AVAILABLE 1,445
RESOURCES BELOW THE LEVEL OF CURRENT APPROPRIATIONS, THE FISCAL 1,446
OFFICER SHALL CERTIFY THE AMOUNT OF THE DEFICIENCY TO THE 1,447
COMMISSION, AND THE COMMISSION SHALL CERTIFY AN AMENDED 1,448
CERTIFICATE REFLECTING THE DEFICIENCY. 1,449
(5) The total appropriations made during the fiscal year 1,451
from any fund shall not exceed the amount set forth as available 1,452
for expenditure from such fund in the official certificate of 1,453
estimated resources, or any amendment thereof, certified prior to 1,454
the making of the appropriation or supplemental appropriation. 1,455
(B) At the time of settlement of taxes against which notes 1,457
have been issued under section 133.301 or division (D) of section 1,458
133.10 of the Revised Code and at the time a tax duplicate is 1,459
delivered pursuant to section 319.28 or 319.29 of the Revised 1,460
Code, the county auditor shall determine whether the total amount 1,461
to be distributed to each school district from such settlement or 1,462
duplicate, when combined with the amounts to be distributed from 1,463
any subsequent settlement, will increase or decrease the amount 1,464
36
available for appropriation during the current fiscal year from 1,465
any fund. The county auditor shall certify this finding to the 1,466
budget commission, which shall certify an amended official 1,467
certificate reflecting the finding or certify to the school 1,468
district that no amended certificate needs to be issued. 1,469
Sec. 5705.38. (A) This division does not apply to school 1,478
district appropriation measures. On or about the first day of 1,479
each year, the taxing authority of each subdivision or other 1,480
taxing unit shall pass an appropriation measure, and thereafter 1,481
during the year it may pass any supplemental appropriation 1,482
measures as it finds necessary, based on the revised tax budget 1,483
and the official certificate of estimated resources or amendments 1,484
of the certificate. If adoption of a tax budget was waived under 1,485
section 5705.281 of the Revised Code, appropriation measures 1,486
shall be based on the official certificate of estimated 1,487
resources. If it desires to postpone the passage of the annual 1,488
appropriation measure until an amended certificate is received 1,489
based on the actual balances, it may pass a temporary
appropriation measure for meeting the ordinary expenses of the 1,490
taxing unit until no later than the first day of April of the 1,491
current year, and the appropriations made in the temporary 1,492
measure shall be chargeable to the appropriations in the annual 1,493
appropriation measure for that fiscal year when passed. 1,494
(B) A board of education shall pass its annual 1,496
appropriation measure by the first day of October. If, by the 1,497
first day of October, a board has not received either the amended 1,498
certificates of estimated resources required by division (B) of 1,499
section 5705.36 of the Revised Code or certifications that no 1,500
amended certificates need be issued, the adoption of the annual 1,501
appropriation measure shall be delayed until the amended 1,502
certificates or certifications are received. Prior to the 1,503
passage of the annual appropriation measure, the board may pass a 1,504
temporary appropriation measure for meeting the ordinary expenses 1,505
of the district until it passes an annual appropriation measure, 1,506
37
and appropriations made in the temporary measure shall be 1,507
chargeable to the appropriations in the annual appropriation 1,508
measure for that fiscal year when passed. During the fiscal year 1,509
and after the passage of the annual appropriation measure, a 1,510
district may pass any supplemental appropriation measures as it 1,511
finds necessary, based on the revised tax budget and the official 1,512
certificate of estimated resources or amendments of the 1,513
certificate. The annual appropriation measure, and any temporary 1,514
or supplemental appropriation measure, shall provide for the 1,515
reservation of a sufficient amount of money for the budget 1,516
reserve fund as required under division (K)(H) of section 5705.29 1,517
of the Revised Code. School district appropriation measures 1,519
shall be in the form as the auditor of state, after consultation 1,520
with the tax commissioner, prescribes. 1,521
(C) Appropriation measures shall be classified so as to 1,523
set forth separately the amounts appropriated for each office, 1,524
department, and division, and, within each, the amount 1,525
appropriated for personal services. In the case of a municipal 1,526
university, the board of directors of which have assumed, in the 1,527
manner provided by law, custody and control of the funds of the 1,528
university, funds shall be appropriated as a lump sum for the use 1,529
of the university. 1,530
Sec. 5705.41. No subdivision or taxing unit shall: 1,539
(A) Make any appropriation of money except as provided in 1,541
Chapter 5705. of the Revised Code; provided, that the 1,542
authorization of a bond issue shall be deemed to be an 1,543
appropriation of the proceeds of the bond issue for the purpose 1,544
for which such bonds were issued, but no expenditure shall be 1,545
made from any bond fund until first authorized by the taxing 1,546
authority; 1,547
(B) Make any expenditure of money unless it has been 1,549
appropriated as provided in such chapter; 1,550
(C) Make any expenditure of money except by a proper 1,552
warrant drawn against an appropriate fund; 1,553
38
(D)(1) Except as otherwise provided in division (D)(2) of 1,555
this section, make any contract or give any order involving the 1,556
expenditure of money unless there is attached thereto a 1,557
certificate of the fiscal officer of the subdivision that the 1,558
amount required to meet the obligation or, in the case of a 1,559
continuing contract to be performed in whole or in part in an 1,560
ensuing fiscal year, the amount required to meet the obligation 1,561
in the fiscal year in which the contract is made, has been 1,562
lawfully appropriated for such purpose and is in the treasury or 1,563
in process of collection to the credit of an appropriate fund 1,564
free from any previous encumbrances. This certificate need be 1,565
signed only by the subdivision's fiscal officer. Every such 1,566
contract made without such a certificate shall be void, and no 1,567
warrant shall be issued in payment of any amount due thereon. If 1,568
no certificate is furnished as required, upon receipt by the 1,569
taxing authority of the subdivision or taxing unit of a 1,570
certificate of the fiscal officer stating that there was at the 1,571
time of the making of such contract or order and at the time of 1,572
the execution of such certificate a sufficient sum appropriated 1,573
for the purpose of such contract and in the treasury or in 1,574
process of collection to the credit of an appropriate fund free 1,575
from any previous encumbrances, such taxing authority may 1,576
authorize the drawing of a warrant in payment of amounts due upon 1,577
such contract, but such resolution or ordinance shall be passed 1,578
within thirty days from the receipt of such certificate; provided 1,579
that, if the amount involved is less than one hundred dollars in 1,580
the case of counties or one thousand dollars in the case of all 1,581
other subdivisions or taxing units, the fiscal officer may 1,582
authorize it to be paid without such affirmation of the taxing 1,583
authority of the subdivision or taxing unit, if such expenditure 1,584
is otherwise valid. 1,585
(2) Annually, the board of county commissioners may adopt 1,587
a resolution exempting for the current fiscal year county 1,588
purchases of seven hundred fifty dollars or less from the 1,589
39
requirement of division (D)(1) of this section that a certificate 1,590
be attached to any contract or order involving the expenditure of 1,591
money. The resolution shall state the dollar amount that is 1,592
exempted from the certificate requirement and whether the 1,593
exemption applies to all purchases, to one or more specific 1,594
classes of purchases, or to the purchase of one or more specific 1,595
items. Prior to the adoption of the resolution, the board shall 1,596
give written notice to the county auditor that it intends to 1,597
adopt the resolution. The notice shall state the dollar amount 1,598
that is proposed to be exempted and whether the exemption would 1,599
apply to all purchases, to one or more specific classes of 1,600
purchases, or to the purchase of one or more specific items. The 1,601
county auditor may review and comment on the proposal, and shall 1,602
send any comments to the board within fifteen days after 1,603
receiving the notice. The board shall wait at least fifteen days 1,604
after giving the notice to the auditor before adopting the 1,605
resolution. A person authorized to make a county purchase in a 1,606
county that has adopted such a resolution shall prepare and file 1,607
with the county auditor, within three business days after 1,608
incurring an obligation not requiring a certificate, a written 1,609
document specifying the purpose and amount of the expenditure, 1,610
the date of the purchase, the name of the vendor, and such 1,611
additional information as the auditor of state may prescribe. 1,612
(3) Upon certification by the auditor or other chief 1,614
fiscal officer that a certain sum of money, not in excess of five 1,615
thousand dollars, has been lawfully appropriated, authorized, or 1,616
directed for a certain purpose and is in the treasury or in the 1,617
process of collection to the credit of a specific line-item 1,618
appropriation account in a certain fund free from previous and 1,619
then outstanding obligations or certifications, then for such 1,620
purpose and from such line-item appropriation account in such 1,621
fund, over a period not exceeding three months and not extending 1,622
beyond the end of the fiscal year, expenditures may be made, 1,623
orders for payment issued, and contracts or obligations calling 1,624
40
for or requiring the payment of money made and assumed; provided, 1,625
that the aggregate sum of money included in and called for by 1,626
such expenditures, orders, contracts, and obligations shall not 1,627
exceed the sum so certified. Such a certification need be signed 1,628
only by the fiscal officer of the subdivision or the taxing 1,629
district and may, but need not, be limited to a specific vendor. 1,630
An itemized statement of obligations incurred and expenditures 1,631
made under such certificate shall be rendered to the auditor or 1,632
other chief fiscal officer before another such certificate may be 1,633
issued, and not more than one such certificate shall be 1,634
outstanding at a time. 1,635
In addition to providing the certification for expenditures 1,637
of five thousand dollars or less as provided in this division, a 1,638
county SUBDIVISION also may make expenditures, issue orders for 1,639
payment, and make contracts or obligations calling for or 1,641
requiring the payment of money made and assumed for specified 1,642
permitted purposes from a specific line-item appropriation 1,643
account in a specified fund for a sum of money exceeding five 1,644
thousand dollars upon the certification by the county auditor 1,645
FISCAL OFFICER OF THE SUBDIVISION that this sum of money has been 1,647
lawfully appropriated, authorized, or directed for a permitted 1,648
purpose and is in the treasury or in the process of collection to 1,649
the credit of the specific line-item appropriation account in the 1,650
specified fund free from previous and then-outstanding 1,651
obligations or certifications; provided that the aggregate sum of 1,652
money included in and called for by the expenditures, orders, and 1,653
obligations shall not exceed the certified sum. The purposes for 1,654
which a county SUBDIVISION may lawfully appropriate, authorize, 1,656
or issue such a certificate are the services of an accountant, 1,657
architect, attorney at law, physician, professional engineer, 1,658
construction project manager, consultant, surveyor, or appraiser 1,659
by or on behalf of the county SUBDIVISION or contracting 1,661
authority; fuel oil, gasoline, food items, roadway materials, and 1,662
utilities; and any purchases exempt from competitive bidding 1,663
41
under section 125.04 of the Revised Code and any other specific 1,664
expenditure that is a recurring and reasonably predictable 1,665
operating expense. Such a certification shall not extend beyond 1,666
the end of the fiscal year or, if the IN THE CASE OF A board of 1,667
county commissioners THAT has established a quarterly spending 1,668
plan under section 5705.392 of the Revised Code, beyond the 1,669
quarter to which the plan applies. Such a certificate shall be 1,670
signed by the county auditor FISCAL OFFICER and may, but need 1,671
not, be limited to a specific vendor. An itemized statement of 1,673
obligations incurred and expenditures made under such a 1,674
certificate shall be rendered to the county auditor FISCAL 1,675
OFFICER for each certificate issued. More than one such 1,677
certificate may be outstanding at any time.
In any case in which a contract is entered into upon a per 1,679
unit basis, the head of the department, board, or commission for 1,680
the benefit of which the contract is made shall make an estimate 1,681
of the total amount to become due upon such contract, which 1,682
estimate shall be certified in writing to the fiscal officer of 1,683
the subdivision. Such a contract may be entered into if the 1,684
appropriation covers such estimate, or so much thereof as may be 1,685
due during the current year. In such a case the certificate of 1,686
the fiscal officer based upon the estimate shall be a sufficient 1,687
compliance with the law requiring a certificate. 1,688
Any certificate of the fiscal officer attached to a 1,690
contract shall be binding upon the political subdivision as to 1,691
the facts set forth therein. Upon request of any person 1,692
receiving an order or entering into a contract with any political 1,693
subdivision, the certificate of the fiscal officer shall be 1,694
attached to such order or contract. "Contract" as used in this 1,695
section excludes current payrolls of regular employees and 1,696
officers. 1,697
Taxes and other revenue in process of collection, or the 1,699
proceeds to be derived from authorized bonds, notes, or 1,700
certificates of indebtedness sold and in process of delivery, 1,701
42
shall for the purpose of this section be deemed in the treasury 1,702
or in process of collection and in the appropriate fund. This 1,703
section applies neither to the investment of sinking funds by the 1,704
trustees of such funds, nor to investments made under sections 1,705
731.56 to 731.59 of the Revised Code. 1,706
No district authority shall, in transacting its own 1,708
affairs, do any of the things prohibited to a subdivision by this 1,709
section, but the appropriation referred to shall become the 1,710
appropriation by the district authority, and the fiscal officer 1,711
referred to shall mean the fiscal officer of the district 1,712
authority. 1,713
Sec. 5709.61. As used in sections 5709.61 to 5709.69 of 1,722
the Revised Code: 1,723
(A) "Enterprise zone" or "zone" means any of the 1,725
following: 1,726
(1) An area with a single continuous boundary designated 1,728
in the manner set forth in section 5709.62 or 5709.63 of the 1,729
Revised Code and certified by the director of development as 1,730
having a population of at least four thousand according to the 1,731
best and most recent data available to the director and having at 1,732
least two of the following characteristics: 1,733
(a) It is located in a municipal corporation defined by 1,735
the United States office of management and budget as a central 1,736
city of a metropolitan statistical area; 1,737
(b) It is located in a county designated as being in the 1,739
"Appalachian region" under the "Appalachian Regional Development 1,740
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended; 1,741
(c) Its average rate of unemployment, during the most 1,743
recent twelve-month period for which data are available, is equal 1,744
to at least one hundred twenty-five per cent of the average rate 1,745
of unemployment for the state of Ohio for the same period; 1,746
(d) There is a prevalence of commercial or industrial 1,748
structures in the area that are vacant or demolished, or are 1,749
vacant and the taxes charged thereon are delinquent, and 1,750
43
certification of the area as an enterprise zone would likely 1,751
result in the reduction of the rate of vacant or demolished 1,752
structures or the rate of tax delinquency in the area; 1,753
(e) The population of all census tracts in the area, 1,755
according to the federal census of 1990, decreased by at least 1,756
ten per cent between the years 1970 and 1990; 1,757
(f) At least fifty-one per cent of the residents of the 1,759
area have incomes of less than eighty per cent of the median 1,760
income of residents of the municipal corporation or municipal 1,761
corporations in which the area is located, as determined in the 1,762
same manner specified under section 119(b) of the "Housing and 1,763
Community Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318, 1,764
as amended; 1,765
(g) The area contains structures previously used for 1,767
industrial purposes but currently not so used due to age, 1,768
obsolescence, deterioration, relocation of the former occupant's 1,769
operations, or cessation of operations resulting from unfavorable 1,770
economic conditions either generally or in a specific economic 1,771
sector; 1,772
(h) An area located within one or more adjacent city, 1,774
local, or exempted village school districts the income-weighted 1,775
tax capacity of each of which is less than seventy per cent of 1,776
the average of the income-weighted tax capacity of all city, 1,777
local, or exempted village school districts in the state 1,778
according to the most recent data available to the director from 1,779
the department of taxation. 1,780
The director of development shall adopt rules in accordance 1,782
with Chapter 119. of the Revised Code establishing conditions 1,783
constituting the characteristics described in divisions 1,784
(A)(1)(d), (g), and (h) of this section. 1,785
If an area could not be certified as an enterprise zone 1,787
unless it satisfied division (A)(1)(g) of this section, the 1,788
legislative authority may enter into agreements in that zone 1,789
under section 5709.62, 5709.63, or 5709.632 of the Revised Code 1,790
44
only if such agreements result in the development of the 1,791
facilities described in that division, the parcel of land on 1,792
which such facilities are situated, or adjacent parcels. The 1,793
director of development annually shall review all agreements in 1,794
such zones to determine whether the agreements have resulted in 1,795
such development; if the director determines that the agreements 1,796
have not resulted in such development, the director immediately 1,797
shall revoke certification of the zone and notify the legislative 1,798
authority of such revocation. Any agreements entered into prior 1,799
to revocation under this paragraph shall continue in effect for 1,800
the period provided in the agreement. 1,801
(2) An area with a single continuous boundary designated 1,803
in the manner set forth in section 5709.63 of the Revised Code 1,804
and certified by the director of development as: 1,805
(a) Being located within a county that contains a 1,807
population of three hundred thousand or less; 1,808
(b) Having a population of at least one thousand according 1,810
to the best and most recent data available to the director; 1,811
(c) Having at least two of the characteristics described 1,813
in divisions (A)(1)(b) to (h) of this section. 1,814
(3) An area with a single continuous boundary designated 1,816
in the manner set forth under division (A)(1) of section 5709.632 1,817
of the Revised Code and certified by the director of development 1,818
as having a population of at least four thousand, or under 1,819
division (A)(2) of that section and certified as having a 1,820
population of at least one thousand, according to the best and 1,821
most recent data available to the director. 1,822
(B) "Enterprise" means any form of business organization 1,824
including, but not limited to, any partnership, sole 1,825
proprietorship, or corporation, including an S corporation as 1,826
defined in section 1361 of the Internal Revenue Code and any 1,827
corporation that is majority work-owned either directly through 1,828
the ownership of stock or indirectly through participation in an 1,829
employee stock ownership plan. 1,830
45
(C) "Facility" means an enterprise's place of business in 1,832
a zone, including land, buildings, machinery, equipment, and 1,833
other materials, except inventory, used in business. "Facility" 1,834
does not include any portion of an enterprise's place of business 1,835
used primarily for making retail sales unless the place of 1,836
business is located in an impacted city as defined in section 1,837
1728.01 of the Revised Code. 1,838
(D) "Vacant facility" means a facility that has been 1,840
vacant for at least ninety days immediately preceding the date on 1,841
which an agreement is entered under section 5709.62 or 5709.63 of 1,842
the Revised Code. 1,843
(E) "Expand" means to make expenditures to add land, 1,845
buildings, machinery, equipment, or other materials, except 1,846
inventory, to a facility that equal at least ten per cent of the 1,847
market value of the facility prior to such expenditures, as 1,848
determined for the purposes of local property taxation. 1,849
(F) "Renovate" means to make expenditures to alter or 1,851
repair a facility that equal at least fifty per cent of the 1,852
market value of the facility prior to such expenditures, as 1,853
determined for the purposes of local property taxation. 1,854
(G) "Occupy" means to make expenditures to alter or repair 1,856
a vacant facility equal to at least twenty per cent of the market 1,857
value of the facility prior to such expenditures, as determined 1,858
for the purposes of local property taxation. 1,859
(H) "Project site" means all or any part of a facility 1,861
that is newly constructed, expanded, renovated, or occupied by an 1,862
enterprise. 1,863
(I) "Project" means any undertaking by an enterprise to 1,865
establish a facility or to improve a project site by expansion, 1,866
renovation, or occupancy. 1,867
(J) "Position" means the position of one full-time 1,869
employee performing a particular set of tasks and duties. 1,870
(K) "Full-time employee" means an individual who is 1,872
employed for consideration by an enterprise for at least 1,873
46
thirty-five hours a week, or who renders any other standard of 1,874
service generally accepted by custom or specified by contract as 1,875
full-time employment. 1,876
(L) "New employee" means a full-time employee first 1,878
employed by an enterprise at a facility that is a project site 1,879
after the enterprise enters an agreement under section 5709.62 or 1,880
5709.63 of the Revised Code. "New employee" does not include an 1,881
employee if, immediately prior to being employed by the 1,882
enterprise, the employee was employed by an enterprise that is a 1,883
related member or predecessor enterprise of that enterprise. 1,884
(M) "Unemployed person" means any person who is totally 1,886
unemployed in this state, as that term is defined in division (M) 1,887
of section 4141.01 of the Revised Code, for at least ten 1,888
consecutive weeks immediately preceding his THAT PERSON'S 1,889
employment at a facility that is a project site, or who is so 1,891
unemployed for at least twenty-six of the fifty-two weeks 1,892
immediately preceding his THAT PERSON'S employment at such a 1,894
facility.
(N) "JTPA eligible employee" means any individual who is 1,896
eligible for employment or training under the "Job Training 1,897
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as 1,898
amended.
(O) "First used in business" means that the property 1,900
referred to has not been used in business in this state by the 1,901
enterprise that owns it, or by an enterprise that is a related 1,902
member or predecessor enterprise of such an enterprise, other 1,903
than as inventory, prior to being used in business at a facility 1,904
as the result of a project. 1,905
(P) "Training program" means any noncredit training 1,907
program or course of study that is offered by any state college 1,908
or university; university branch district; community college; 1,909
technical college; nonprofit college or university certified 1,910
under section 1713.02 of the Revised Code; school district; joint 1,911
vocational school district; school registered and authorized to 1,912
47
offer programs under section 3332.05 of the Revised Code; an 1,913
entity administering any federal, state, or local adult education 1,914
and training program; or any enterprise; and that meets all of 1,915
the following requirements: 1,916
(1) It is approved by the director of development; 1,918
(2) It is established or operated to satisfy the need of a 1,920
particular industry or enterprise for skilled or semi-skilled 1,921
employees; 1,922
(3) An individual is required to complete the course or 1,924
program before filling a position at a project site. 1,925
(Q) "Development" means to engage in the process of 1,927
clearing and grading land, making, installing, or constructing 1,928
water distribution systems, sewers, sewage collection systems, 1,929
steam, gas, and electric lines, roads, curbs, gutters, sidewalks, 1,930
storm drainage facilities, and construction of other facilities 1,931
or buildings equal to at least fifty per cent of the market value 1,932
of the facility prior to the expenditures, as determined for the 1,933
purposes of local property taxation. 1,934
(R) "Large manufacturing facility" means a single Ohio 1,936
facility that employed an average of at least one thousand 1,937
individuals each year during the five CALENDAR years preceding an 1,939
agreement authorized under division (C)(3) of section 5709.62 or 1,940
division (A)(B)(2) of section 5709.63 of the Revised Code. FOR 1,942
PURPOSES OF THIS DIVISION, BOTH OF THE FOLLOWING APPLY: 1,943
(1) A SINGLE OHIO MANUFACTURING FACILITY EMPLOYED AN 1,946
AVERAGE OF AT LEAST ONE THOUSAND INDIVIDUALS DURING THE FIVE 1,947
CALENDAR YEARS PRECEDING ENTERING INTO SUCH AN AGREEMENT IF 1,948
ONE-FIFTH OF THE SUM OF THE NUMBER OF EMPLOYEES EMPLOYED ON THE 1,949
HIGHEST EMPLOYMENT DAY DURING EACH OF THE FIVE CALENDAR YEARS 1,950
EQUALS OR EXCEEDS ONE THOUSAND. 1,951
(2) THE HIGHEST EMPLOYMENT DAY IS THE DAY OR DAYS DURING A 1,954
CALENDAR YEAR ON WHICH THE NUMBER OF EMPLOYEES EMPLOYED AT A
SINGLE OHIO MANUFACTURING FACILITY WAS GREATER THAN ON ANY OTHER 1,956
DAY DURING THE CALENDAR YEAR.
48
(S) "Business cycle" means the cycle of business activity 1,958
usually regarded as passing through alternating stages of 1,959
prosperity and depression. 1,960
(T) "Making retail sales" means the effecting of 1,962
transactions wherein one party is obligated to pay the price and 1,963
the other party is obligated to provide a service or to transfer 1,964
title to or possession of the item sold. 1,965
(U) "Environmentally contaminated" means that hazardous 1,967
substances exist at a facility under conditions that have caused 1,968
or would cause the facility to be identified as contaminated by 1,969
the state or federal environmental protection agency. These may 1,970
include facilities located at sites identified in the master 1,971
sites list or similar database maintained by the state 1,972
environmental protection agency if the sites have been 1,973
investigated by the agency and found to be contaminated. 1,974
(V) "Remediate" means to make expenditures to clean up an 1,976
environmentally contaminated facility so that it is no longer 1,977
environmentally contaminated that equal at least ten per cent of 1,978
the real property market value of the facility prior to such 1,979
expenditures as determined for the purposes of property taxation. 1,980
(W) "Related member" has the same meaning as defined in 1,982
section 5733.042 of the Revised Code without regard to division 1,983
(B) of that section, except that it is used with respect to an 1,984
enterprise rather than a taxpayer. 1,985
(X) "Predecessor enterprise" means an enterprise from 1,987
which the assets or equity of another enterprise has been 1,988
transferred, which transfer resulted in the full or partial 1,989
nonrecognition of gain or loss, or resulted in a carryover basis, 1,990
both as determined by rule adopted by the tax commissioner. 1,991
(Y) "Successor enterprise" means an enterprise to which 1,993
the assets or equity of another enterprise has been transferred, 1,994
which transfer resulted in the full or partial nonrecognition of 1,995
gain or loss, or resulted in a carryover basis, both as 1,996
determined by rule adopted by the tax commissioner. 1,997
49
Sec. 5733.33. (A) As used in this section: 2,006
(1) "Manufacturing machinery and equipment" means engines 2,008
and machinery, and tools and implements, of every kind used, or 2,009
designed to be used, in refining and manufacturing. 2,010
(2) "New manufacturing machinery and equipment" means 2,012
manufacturing machinery and equipment, the original use in this 2,013
state of which commences with the taxpayer or with a partnership 2,014
of which the taxpayer is a partner. 2,015
(3)(a) "Purchase" has the same meaning as in section 2,017
179(d)(2) of the Internal Revenue Code. 2,018
(b) Any purchase, for purposes of this section, is 2,020
considered to occur at the time the agreement to acquire the 2,021
property to be purchased becomes binding. 2,022
(c) Notwithstanding section 179(d) of the Internal Revenue 2,024
Code, a taxpayer's direct or indirect acquisition of new 2,025
manufacturing machinery and equipment is not purchased on or 2,026
after July 1, 1995, if the taxpayer, or a person whose 2,027
relationship to the taxpayer is described in subparagraphs (A), 2,028
(B), or (C) of section 179(d)(2) of the Internal Revenue Code, 2,029
had directly or indirectly entered into a binding agreement to 2,030
acquire the property at any time prior to July 1, 1995. 2,031
(4) "Qualifying period" means the period that begins July 2,033
1, 1995, and ends December 31, 2000. 2,034
(5) "County average new manufacturing machinery and 2,036
equipment investment" means either of the following: 2,037
(a) The average annual cost of new manufacturing machinery 2,040
and equipment purchased for use in the county during baseline 2,041
years, in the case of a taxpayer or partnership that was in 2,042
existence for more than one year during baseline years. 2,043
(b) Zero, in the case of a taxpayer or partnership that 2,045
was not in existence for more than one year during baseline 2,046
years. 2,047
(6) "Partnership" includes a limited liability company 2,050
formed under Chapter 1705. of the Revised Code or under the laws 2,052
50
of any other state, provided that the company is not classified 2,053
for federal income tax purposes as an association taxable as a 2,054
corporation. 2,055
(7) "Partner" includes a member of a limited liability 2,057
company formed under Chapter 1705. of the Revised Code or under 2,060
the laws of any other state, provided that the company is not 2,061
classified for federal income tax purposes as an association 2,062
taxable as a corporation. 2,063
(8) "Distressed area" means either a municipal corporation 2,065
that has a population of at least fifty thousand or a county that 2,067
meets two of the following criteria of economic distress, or a 2,068
municipal corporation the majority of the population of which is 2,069
situated in such a county:
(a) Its average rate of unemployment, during the most 2,072
recent five-year period for which data are available, is equal to 2,073
at least one hundred twenty-five per cent of the average rate of 2,074
unemployment for the United States for the same period;
(b) It has a per capita income equal to or below eighty 2,077
per cent of the median county per capita income of the United 2,078
States as determined by the most recently available figures from 2,079
the United States census bureau; 2,081
(c)(i) In the case of a municipal corporation, at least 2,084
twenty per cent of the residents have a total income for the most 2,085
recent census year that is below the official poverty line; 2,086
(ii) In the case of a county, in intercensal years, the 2,089
county has a ratio of transfer payment income to total county 2,090
income equal to or greater than twenty-five per cent. 2,091
(9) "Eligible area" means a distressed area, a labor 2,093
surplus area, an inner city area, or a situational distress area. 2,095
(10) "Inner city area" means, in a municipal corporation 2,097
that has a population of at least one hundred thousand and does 2,098
not meet the criteria of a labor surplus area or a distressed 2,099
area, targeted investment areas established by the municipal 2,100
corporation within its boundaries that are comprised of the most 2,101
51
recent census block tracts that individually have at least twenty 2,102
per cent of their population at or below the state poverty level 2,103
or other census block tracts contiguous to such census block 2,104
tracts.
(11) "Labor surplus area" means an area designated as a 2,106
labor surplus area by the United States department of labor. 2,108
(12) "Official poverty line" has the same meaning as in 2,110
division (A) of section 3923.51 of the Revised Code. 2,111
(13) "Situational distress area" means a county or a 2,113
municipal corporation that has experienced or is experiencing a 2,114
closing or downsizing of a major employer, that will adversely 2,115
affect the county's or municipal corporation's economy. In order 2,117
to be designated as a situational distress area for a period not 2,118
to exceed thirty-six months, the county or municipal corporation 2,119
may petition the director of development. The petition shall 2,120
include written documentation that demonstrates all of the 2,121
following adverse effects on the local economy: 2,122
(a) The number of jobs lost by the closing or downsizing; 2,124
(b) The impact that the job loss has on the county's or 2,127
municipal corporation's unemployment rate as measured by the Ohio 2,128
bureau of employment services; 2,129
(c) The annual payroll associated with the job loss; 2,131
(d) The amount of state and local taxes associated with 2,133
the job loss;
(e) The impact that the closing or downsizing has on the 2,135
suppliers located in the county or municipal corporation. 2,136
(14) "Cost" has the same meaning and limitation as in 2,138
section 179(d)(3) of the Internal Revenue Code. 2,139
(15) "Baseline years" means: 2,141
(a) Calendar years 1992, 1993, and 1994, with regard to a 2,143
credit claimed for the purchase during calendar year 1995, 1996, 2,144
1997, or 1998 of new manufacturing machinery and equipment; 2,145
(b) Calendar years 1993, 1994, and 1995, with regard to a 2,147
credit claimed for the purchase during calendar year 1999 of new 2,148
52
manufacturing machinery and equipment; 2,149
(c) Calendar years 1994, 1995, and 1996, with regard to a 2,151
credit claimed for the purchase during calendar year 2000 of new 2,152
manufacturing machinery and equipment. 2,153
(B)(1) A nonrefundable credit is allowed against the tax 2,156
imposed by section 5733.06 of the Revised Code for a taxpayer 2,157
that purchases new manufacturing machinery and equipment during 2,158
the qualifying period, provided that the new manufacturing 2,159
machinery and equipment is ARE installed in this state no later 2,160
than December 31, 2001. 2,161
(2) The credit is also available to a taxpayer that is a 2,163
partner in a partnership that purchases new manufacturing 2,164
machinery and equipment during the qualifying period, provided 2,165
that the partnership installs the new manufacturing machinery and 2,166
equipment in this state no later than December 31, 2001. The 2,167
taxpayer shall determine the credit amount as provided in 2,169
division (H) of this section.
(3)(a) Except as otherwise provided in division (B)(3)(b) 2,172
of this section, a credit may be claimed under this section in 2,173
excess of one million dollars only if the cost of all 2,174
manufacturing machinery and equipment owned in this state by the 2,175
taxpayer claiming the credit on the last day of the calendar year 2,176
exceeds the cost of all manufacturing machinery and equipment 2,177
owned in this state by the taxpayer on the first day of that 2,178
calendar year.
As used in division (B)(3)(a) of this section, "calendar 2,181
year" means the calendar year in which the machinery and
equipment for which the credit is claimed was purchased. 2,182
(b) Division (B)(3)(a) of this section does not apply if 2,186
the taxpayer claiming the credit applies for and is issued a 2,187
waiver of the requirement of that division. A taxpayer may apply 2,188
to the director of the department of development for such a 2,189
waiver in the manner prescribed by the director, and the director 2,190
may issue such a waiver if the director determines that granting 2,191
53
the credit is necessary to increase or retain employees in this 2,193
state, and that the credit has not caused relocation of 2,194
manufacturing machinery and equipment among counties within this 2,195
state for the primary purpose of qualifying for the credit. 2,196
(C)(1) Except as otherwise provided in division (C)(2) of 2,199
this section, the credit amount is equal to seven and one-half 2,200
per cent of the excess of the cost of the new manufacturing 2,201
machinery and equipment purchased during the calendar year for 2,202
use in a county over the county average new manufacturing 2,203
machinery and equipment investment for that county. 2,204
(2) As used in division (C)(2) of this section, "county 2,207
excess" means the taxpayer's excess cost for a county as computed 2,208
under division (C)(1) of this section. 2,209
For a taxpayer with a county excess, whose purchases 2,211
included purchases for use in any eligible area in the county, 2,212
the credit amount is equal to thirteen and one-half per cent of 2,213
the cost of the new manufacturing machinery and equipment 2,215
purchased during the calendar year for use in the eligible areas 2,216
in the county, provided that the cost subject to the thirteen and 2,217
one-half per cent rate shall not exceed the county excess. If 2,218
the county excess is greater than the cost of the new 2,219
manufacturing machinery and equipment purchased during the 2,221
calendar year for use in eligible areas in the county, the credit 2,222
amount also shall include an amount equal to seven and one-half 2,224
per cent of the amount of the difference.
(3) If a taxpayer is allowed a credit for purchases of new 2,226
manufacturing machinery and equipment in more than one county or 2,227
eligible area, it shall aggregate the amount of those credits 2,229
each year.
(4) The taxpayer shall claim one-seventh of the credit 2,231
amount for the tax year immediately following the calendar year 2,232
in which the new manufacturing machinery and equipment is 2,233
purchased for use in the county by the taxpayer or partnership. 2,235
One-seventh of the taxpayer credit amount is allowed for each of 2,236
54
the six ensuing tax years. Except for carried-forward amounts, 2,237
the taxpayer is not allowed any credit amount remaining if the 2,238
new manufacturing machinery and equipment is sold by the taxpayer 2,240
or partnership or is transferred by the taxpayer or partnership 2,241
out of the county before the end of the seven-year period. 2,242
(5)(a) A taxpayer that acquires manufacturing machinery 2,244
and equipment as a result of a merger with the taxpayer with whom 2,246
commenced the original use in this state of the manufacturing 2,247
machinery and equipment, or with a taxpayer that was a partner in 2,248
a partnership with whom commenced the original use in this state 2,249
of the manufacturing machinery and equipment, is entitled to any 2,250
remaining or carried-forward credit amounts to which the taxpayer 2,251
was entitled.
(b) A TAXPAYER THAT ENTERS INTO AN AGREEMENT UNDER 2,253
DIVISION (C)(3) OF SECTION 5709.62 OF THE REVISED CODE AND THAT 2,254
ACQUIRES MANUFACTURING MACHINERY OR EQUIPMENT AS A RESULT OF 2,256
PURCHASING A LARGE MANUFACTURING FACILITY, AS DEFINED IN SECTION
5709.61 OF THE REVISED CODE, FROM ANOTHER TAXPAYER WITH WHOM 2,257
COMMENCED THE ORIGINAL USE IN THIS STATE OF THE MANUFACTURING 2,259
MACHINERY OR EQUIPMENT, AND THAT OPERATES THE LARGE MANUFACTURING 2,260
FACILITY SO PURCHASED, IS ENTITLED TO ANY REMAINING OR
CARRIED-FORWARD CREDIT AMOUNTS TO WHICH THE OTHER TAXPAYER WHO 2,261
SOLD THE FACILITY WOULD HAVE BEEN ENTITLED UNDER THIS SECTION HAD 2,263
THE OTHER TAXPAYER NOT SOLD THE MANUFACTURING FACILITY OR 2,264
EQUIPMENT.
(c) New manufacturing machinery and equipment is not 2,267
considered sold if a pass-through entity transfers to another 2,268
pass-through entity substantially all of its assets as part of a 2,269
plan of reorganization under which substantially all gain and 2,270
loss is not recognized by the pass-through entity that is 2,271
transferring the new manufacturing machinery and equipment to the 2,272
transferee and under which the transferee's basis in the new
manufacturing machinery and equipment is determined, in whole or 2,273
in part, by reference to the basis of the pass-through entity 2,274
55
which transferred the new manufacturing machinery and equipment 2,275
to the transferee. 2,276
(c)(d) Division (C)(5) of this section shall apply only if 2,278
the acquiring taxpayer or transferee does not sell the new 2,280
manufacturing machinery and equipment or transfer the new 2,281
manufacturing machinery and equipment out of the county before 2,282
the end of the seven-year period to which division (C)(4) of this 2,283
section refers. 2,284
(e) DIVISION (C)(5)(b) OF THIS SECTION APPLIES ONLY TO THE 2,287
EXTENT THAT THE TAXPAYER THAT SOLD THE MANUFACTURING MACHINERY OR 2,288
EQUIPMENT, UPON REQUEST, TIMELY PROVIDES TO THE TAX COMMISSIONER 2,289
ANY INFORMATION THAT THE TAX COMMISSIONER CONSIDERS TO BE 2,290
NECESSARY TO ASCERTAIN ANY REMAINING OR CARRIED-FORWARD AMOUNTS 2,291
TO WHICH THE TAXPAYER THAT SOLD THE FACILITY WOULD HAVE BEEN 2,292
ENTITLED UNDER THIS SECTION HAD THE TAXPAYER NOT SOLD THE 2,293
MANUFACTURING MACHINERY OR EQUIPMENT. NOTHING IN DIVISION 2,294
(C)(5)(b) OR (e) OF THIS SECTION SHALL BE CONSTRUED TO ALLOW A 2,296
TAXPAYER TO CLAIM ANY CREDIT AMOUNT WITH RESPECT TO THE ACQUIRED 2,297
MANUFACTURING MACHINERY OR EQUIPMENT THAT IS GREATER THAN THE 2,298
AMOUNT THAT WOULD HAVE BEEN AVAILABLE TO THE OTHER TAXPAYER THAT 2,299
SOLD THE MANUFACTURING MACHINERY OR EQUIPMENT HAD THE OTHER 2,300
TAXPAYER NOT SOLD THE MANUFACTURING MACHINERY OR EQUIPMENT. 2,301
(D) The taxpayer shall claim the credit in the order 2,304
required under section 5733.98 of the Revised Code. Each year, 2,305
any credit amount in excess of the tax due under section 5733.06 2,306
of the Revised Code after allowing for any other credits that 2,308
precede the credit under this section in that order may be 2,309
carried forward for three tax years. 2,310
(E) A taxpayer purchasing new manufacturing machinery and 2,313
equipment and intending to claim the credit shall file, with the 2,314
department of development, a notice of intent to claim the credit 2,315
on a form prescribed by the department of development. The 2,316
department of development shall inform the tax commissioner of 2,317
the notice of intent to claim the credit. 2,318
56
(F) The director of development shall annually certify, by 2,321
the first day of January of each year during the qualifying 2,322
period, the eligible areas for the tax credit for the calendar 2,323
year that includes that first day of January. The director shall 2,324
send a copy of the certification to the tax commissioner. 2,325
(G) New manufacturing machinery and equipment for which a 2,327
taxpayer claims the credit under section 5733.31, 5733.311, 2,329
5747.26, or 5747.261 of the Revised Code shall not be considered 2,331
new manufacturing machinery and equipment for purposes of the 2,332
credit under this section.
(H)(1) With regard to a taxpayer that is a partner in a 2,334
partnership, the county average new manufacturing machinery and 2,335
equipment investment shall be determined based on the number of 2,336
years, if any, the partnership was in existence during baseline 2,337
years. In determining the county average new manufacturing 2,338
machinery and equipment investment, the excess of the cost of new 2,339
manufacturing machinery and equipment purchased during the 2,340
calendar year, and all other amounts necessary to calculate the
credit allowed by this section, the taxpayer shall include the 2,341
taxpayer's distributive share of the cost of new manufacturing 2,342
machinery and equipment purchased by a partnership in which the 2,343
corporation had a direct or indirect investment during the 2,344
calendar year prior to the first day of a tax year for which the 2,345
taxpayer is claiming the credit. These determinations and 2,346
calculations shall be made for the taxpayer's calendar year 2,347
during which the partnership made the purchase. 2,348
(2) Nothing in this section shall be construed to limit or 2,350
disallow pass-through treatment of a pass-through entity's 2,351
income, deductions, credits, or other amounts necessary to 2,352
compute the tax imposed by section 5733.06 of the Revised Code 2,353
and the credits allowed by this chapter. 2,354
Sec. 5747.51. (A) Within ten days after the fifteenth day 2,363
of July of each year, the tax commissioner shall make and certify 2,364
to the county auditor of each county an estimate of the amount of 2,365
57
the local government fund to be allocated to the undivided local 2,366
government fund of each county for the ensuing calendar year and 2,367
the estimated amount to be received by the undivided local 2,368
government fund of each county from the taxes levied pursuant to 2,369
section 5707.03 of the Revised Code for the ensuing calendar 2,370
year. 2,371
(B) At each annual regular session of the county budget 2,373
commission convened pursuant to section 5705.27 of the Revised 2,374
Code, each auditor shall present to the commission the 2,375
certificate of the commissioner, the annual tax budget and 2,376
estimates, and the records showing the action of the commission 2,377
in its last preceding regular session. The estimates shown on 2,378
the certificate of the commissioner of the amount to be allocated 2,379
from the local government fund and the amount to be received from 2,380
taxes levied pursuant to section 5707.03 of the Revised Code 2,381
shall be combined into one total comprising the estimate of the 2,382
undivided local government fund of the county. The commission, 2,383
after extending to the representatives of each subdivision an 2,384
opportunity to be heard, under oath administered by any member of 2,385
the commission, and considering all the facts and information 2,386
presented to it by the auditor, shall determine the amount of the 2,387
undivided local government fund needed by and to be apportioned 2,388
to each subdivision for current operating expenses, as shown in 2,389
the tax budget of the subdivision. This determination shall be 2,390
made pursuant to divisions (C) to (I) of this section, unless the 2,391
commission has provided for a formula pursuant to section 5747.53 2,392
of the Revised Code. 2,393
Nothing in this section prevents the budget commission, for 2,396
the purpose of apportioning the undivided local government fund, 2,397
from inquiring into the claimed needs of any subdivision as 2,398
stated in its tax budget, or from adjusting claimed needs to 2,399
reflect actual needs. For the purposes of this section, "current 2,400
operating expenses" means the lawful expenditures of a 2,401
subdivision, except those for permanent improvements and except 2,402
58
payments for interest, sinking fund, and retirement of bonds, 2,403
notes, and certificates of indebtedness of the subdivision. 2,404
(C) The commission shall determine the combined total of 2,406
the estimated expenditures, including transfers, from the general 2,407
fund and any special funds other than special funds established 2,408
for road and bridge; street construction, maintenance, and 2,409
repair; state highway improvement; and gas, water, sewer, and 2,410
electric public utilities operated by a subdivision, as shown in 2,411
the subdivision's tax budget for the ensuing calendar year. 2,412
(D) From the combined total of expenditures calculated 2,414
pursuant to division (C) of this section, the commission shall 2,415
deduct the following expenditures, if included in these funds in 2,416
the tax budget: 2,417
(1) Expenditures for permanent improvements as defined in 2,419
division (E) of section 5705.01 of the Revised Code; 2,420
(2) In the case of counties and townships, transfers to 2,422
the road and bridge fund, and in the case of municipalities, 2,423
transfers to the street construction, maintenance, and repair 2,424
fund and the state highway improvement fund; 2,425
(3) Expenditures for the payment of debt charges; 2,427
(4) Expenditures for the payment of judgments. 2,429
(E) In addition to the deductions made pursuant to 2,431
division (D) of this section, revenues accruing to the general 2,432
fund and any special fund considered under division (C) of this 2,433
section from the following sources shall be deducted from the 2,434
combined total of expenditures calculated pursuant to division 2,435
(C) of this section: 2,436
(1) Taxes levied within the ten-mill limitation, as 2,438
defined in section 5705.02 of the Revised Code; 2,439
(2) The budget commission allocation of estimated county 2,441
library and local government support fund revenues to be 2,442
distributed pursuant to section 5747.48 of the Revised Code; 2,443
(3) Estimated unencumbered balances as shown on the tax 2,445
budget as of the thirty-first day of December of the current year 2,446
59
in the general fund, but not any estimated balance in any special 2,447
fund considered in division (C) of this section; 2,448
(4) Revenue, including transfers, shown in the general 2,450
fund and any special funds other than special funds established 2,451
for road and bridge; street construction, maintenance, and 2,452
repair; state highway improvement; and gas, water, sewer, and 2,453
electric public utilities, from all other sources except those 2,454
that a subdivision receives from an additional tax or service 2,455
charge voted by its electorate or receives from special 2,456
assessment or revenue bond collection. For the purposes of this 2,457
division, where the charter of a municipal corporation prohibits 2,458
the levy of an income tax, an income tax levied by the 2,459
legislative authority of such municipal corporation pursuant to 2,460
an amendment of the charter of that municipal corporation to 2,461
authorize such a levy represents an additional tax voted by the 2,462
electorate of that municipal corporation. For the purposes of 2,463
this division, any measure adopted by a board of county 2,464
commissioners pursuant to section 322.02, 324.02, 4504.02, or 2,465
5739.021 of the Revised Code, including those measures upheld by 2,466
the electorate in a referendum conducted pursuant to section 2,467
322.021, 324.021, 4504.021, or 5739.022 of the Revised Code, 2,468
shall not be considered an additional tax voted by the 2,469
electorate. 2,470
Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE 2,473
REVISED CODE, MONEY in a reserve balance account established by a 2,474
county or, township, OR MUNICIPAL CORPORATION under section 2,476
305.23, 505.83, or 505.831 5705.13 of the Revised Code or by a 2,477
municipal corporation pursuant to an ordinance or resolution that 2,478
has been included as a reserve balance in the county's, 2,479
township's, or municipal corporation's budget under section 2,480
5705.29 of the Revised Code shall not be considered an 2,481
unencumbered balance or revenue under division (E)(3) or (4) of 2,482
this section.
If a COUNTY, TOWNSHIP, OR municipal corporation has created 2,484
60
and maintains a NONEXPENDABLE TRUST fund exclusively for the 2,485
purpose of investing the principal of the fund and using the 2,488
investment earnings to fund expenditures UNDER SECTION 5705.131 2,489
OF THE REVISED CODE, the principal of the fund, and any additions 2,490
to the principal arising from sources other than the reinvestment 2,491
of investment earnings arising from such a fund, shall not be 2,492
considered an unencumbered balance or revenue under division 2,493
(E)(3) or (4) of this section. Only investment earnings arising 2,494
from investment of the principal or INVESTMENT OF SUCH additions 2,496
to principal may be considered an unencumbered balance or revenue 2,497
under those divisions.
(F) The total expenditures calculated pursuant to division 2,499
(C) of this section, less the deductions authorized in divisions 2,500
(D) and (E) of this section, shall be known as the "relative 2,501
need" of the subdivision, for the purposes of this section. 2,502
(G) The budget commission shall total the relative need of 2,504
all participating subdivisions in the county, and shall compute a 2,505
relative need factor by dividing the total estimate of the 2,506
undivided local government fund by the total relative need of all 2,507
participating subdivisions. 2,508
(H) The relative need of each subdivision shall be 2,510
multiplied by the relative need factor to determine the 2,511
proportionate share of the subdivision in the undivided local 2,512
government fund of the county; provided, that the maximum 2,513
proportionate share of a county shall not exceed the following 2,514
maximum percentages of the total estimate of the undivided local 2,515
government fund governed by the relationship of the percentage of 2,516
the population of the county that resides within municipal 2,517
corporations within the county to the total population of the 2,518
county as reported in the reports on population in Ohio by the 2,519
department of development as of the twentieth day of July of the 2,520
year in which the tax budget is filed with the budget commission: 2,521
Percentage of Percentage share 2,522
municipal population of the county 2,523
61
within the county: shall not exceed: 2,524
Less than forty-one per cent Sixty per cent 2,527
Forty-one per cent or more but Fifty per cent 2,529
less than eighty-one per
cent
Eighty-one per cent or more Thirty per cent 2,530
Where the proportionate share of the county exceeds the 2,533
limitations established in this division, the budget commission 2,534
shall adjust the proportionate shares determined pursuant to this 2,535
division so that the proportionate share of the county does not 2,536
exceed these limitations, and it shall increase the proportionate 2,537
shares of all other subdivisions on a pro rata basis. In 2,538
counties having a population of less than one hundred thousand, 2,539
not less than ten per cent shall be distributed to the townships 2,540
therein. 2,541
(I) The proportionate share of each subdivision in the 2,543
undivided local government fund determined pursuant to division 2,544
(H) of this section for any calendar year shall not be less than 2,545
the product of the average of the percentages of the undivided 2,546
local government fund of the county as apportioned to that 2,547
subdivision for the calendar years 1968, 1969, and 1970, 2,548
multiplied by the total amount of the undivided local government 2,549
fund of the county apportioned pursuant to former section 5735.23 2,550
of the Revised Code for the calendar year 1970. For the purposes 2,551
of this division, the total apportioned amount for the calendar 2,552
year 1970 shall be the amount actually allocated to the county in 2,553
1970 from the state collected intangible tax as levied by section 2,554
5707.03 of the Revised Code and distributed pursuant to section 2,555
5725.24 of the Revised Code, plus the amount received by the 2,556
county in the calendar year 1970 pursuant to division (B)(1) of 2,557
former section 5739.21 of the Revised Code, and distributed 2,558
pursuant to former section 5739.22 of the Revised Code. If the 2,559
total amount of the undivided local government fund for any 2,560
calendar year is less than the amount of the undivided local 2,561
62
government fund apportioned pursuant to former section 5739.23 of 2,562
the Revised Code for the calendar year 1970, the minimum amount 2,563
guaranteed to each subdivision for that calendar year pursuant to 2,564
this division shall be reduced on a basis proportionate to the 2,565
amount by which the amount of the undivided local government fund 2,566
for that calendar year is less than the amount of the undivided 2,567
local government fund apportioned for the calendar year 1970. 2,568
(J) On the basis of such apportionment, the county auditor 2,570
shall compute the percentage share of each such subdivision in 2,571
the undivided local government fund and shall at the same time 2,572
certify to the tax commissioner the percentage share of the 2,573
county as a subdivision. No payment shall be made from the 2,574
undivided local government fund, except in accordance with such 2,575
percentage shares. 2,576
Within ten days after the budget commission has made its 2,578
apportionment, whether conducted pursuant to section 5747.51 or 2,579
5747.53 of the Revised Code, the auditor shall publish a list of 2,580
the subdivisions and the amount each is to receive from the 2,581
undivided local government fund and the percentage share of each 2,582
subdivision, in a newspaper or newspapers of countywide 2,583
circulation, and send a copy of such allocation to the tax 2,584
commissioner. 2,585
The county auditor shall also send by certified mail, 2,587
return receipt requested, a copy of such allocation to the fiscal 2,588
officer of each subdivision entitled to participate in the 2,589
allocation of the undivided local government fund of the county. 2,590
This copy shall constitute the official notice of the commission 2,591
action referred to in section 5705.37 of the Revised Code. 2,592
All money received into the treasury of a subdivision from 2,594
the undivided local government fund in a county treasury shall be 2,595
paid into the general fund and used for the current operating 2,596
expenses of the subdivision. 2,597
If a municipal corporation maintains a municipal 2,599
university, such municipal university, when the board of trustees 2,600
63
so requests the legislative authority of the municipal 2,601
corporation, shall participate in the money apportioned to such 2,602
municipal corporation from the total local government fund, 2,603
however created and constituted, in such amount as requested by 2,604
the board of trustees, provided such sum does not exceed nine per 2,605
cent of the total amount paid to the municipal corporation. 2,606
If any public official fails to maintain the records 2,608
required by sections 5747.50 to 5747.55 of the Revised Code, or 2,609
by the rules issued by the tax commissioner, the auditor of 2,610
state, or the treasurer of state, pursuant to such sections, or 2,611
fails to comply with any law relating to the enforcement of such 2,612
sections, the local government fund money allocated to the county 2,613
shall be withheld until such time as the public official has 2,614
complied with such sections or such law or the rules issued 2,615
pursuant thereto. 2,616
Sec. 5747.62. (A) As used in this section and section 2,625
5747.63 of the Revised Code, "subdivision" means a municipal 2,626
corporation, township, park district, or county. 2,627
(B) At each annual regular session of the county budget 2,629
commission convened pursuant to section 5705.27 of the Revised 2,630
Code, each auditor shall present to the commission the 2,631
certificate of the commissioner, the annual tax budget and 2,632
estimates, and the records showing the action of the commission 2,633
in its last preceding regular session. The commission, after 2,634
extending to the representatives of each subdivision an 2,635
opportunity to be heard, under oath administered by any member of 2,636
the commission, and considering all the facts and information 2,637
presented to it by the auditor, shall determine the amount of the 2,638
undivided local government revenue assistance fund needed by and 2,639
to be apportioned to each subdivision for current operating 2,640
expenses, as shown in the tax budget of the subdivision. This 2,641
determination shall be made pursuant to divisions (C) to (H) of 2,642
this section, unless the commission has provided for a formula 2,643
pursuant to section 5747.63 of the Revised Code. Nothing in this 2,644
64
section prevents the budget commission, for the purpose of 2,645
apportioning the undivided local government revenue assistance 2,646
fund, from inquiring into the claimed needs of any subdivision as 2,647
stated in its tax budget, or from adjusting claimed needs to 2,648
reflect actual needs. For the purposes of this section, "current 2,649
operating expenses" means the lawful expenditures of a 2,650
subdivision, except those for permanent improvements and except 2,651
payments for interest, sinking fund, and retirement of bonds, 2,652
notes, and certificates of indebtedness of the subdivision. 2,653
(C) The commission shall determine the combined total of 2,655
the estimated expenditures, including transfers, from the general 2,656
fund and any special funds other than special funds established 2,657
for road and bridge; street construction, maintenance, and 2,658
repair; state highway improvement; and gas, water, sewer, and 2,659
electric public utilities operated by a subdivision, as shown in 2,660
the subdivision's tax budget for the ensuing calendar year. 2,661
(D) From the combined total of expenditures calculated 2,663
pursuant to division (C) of this section, the commission shall 2,664
deduct the following expenditures, if included in these funds in 2,665
the tax budget: 2,666
(1) Expenditures for permanent improvements as defined in 2,668
division (E) of section 5705.01 of the Revised Code; 2,669
(2) In the case of counties and townships, transfers to 2,671
the road and bridge fund, and in the case of municipalities, 2,672
transfers to the street construction, maintenance, and repair 2,673
fund and the state highway improvement fund; 2,674
(3) Expenditures for the payment of debt charges; 2,676
(4) Expenditures for the payment of judgments. 2,678
(E) In addition to the deductions made pursuant to 2,680
division (D) of this section, revenues accruing to the general 2,681
fund and any special fund considered under division (C) of this 2,682
section from the following sources shall be deducted from the 2,683
combined total of expenditures calculated pursuant to division 2,684
(C) of this section: 2,685
65
(1) Taxes levied within the ten-mill limitation, as 2,687
defined in section 5705.02 of the Revised Code; 2,688
(2) The budget commission allocation of estimated county 2,690
library and local government support fund revenues to be 2,691
distributed pursuant to section 5747.48 of the Revised Code; 2,692
(3) Estimated unencumbered balances as shown on the tax 2,694
budget as of the thirty-first day of December of the current year 2,695
in the general fund, but not any estimated balance in any special 2,696
fund considered in division (C) of this section; 2,697
(4) Revenue, including transfers, shown in the general 2,699
fund and any special funds other than special funds established 2,700
for road and bridge; street construction, maintenance, and 2,701
repair; state highway improvement; and gas, water, sewer, and 2,702
electric public utilities, from all other sources except those 2,703
that a subdivision receives from an additional tax or service 2,704
charge voted by its electorate or receives from special 2,705
assessment or revenue bond collection. For the purposes of this 2,706
division, where the charter of a municipal corporation prohibits 2,707
the levy of an income tax, an income tax levied by the 2,708
legislative authority of such municipal corporation pursuant to 2,709
an amendment of the charter of that municipal corporation to 2,710
authorize such a levy represents an additional tax voted by the 2,711
electorate of that municipal corporation. For the purposes of 2,712
this division, any measure adopted by a board of county 2,713
commissioners pursuant to section 322.02, 324.02, 4504.02, or 2,714
5739.021 of the Revised Code, including those measures upheld by 2,715
the electorate in a referendum conducted pursuant to section 2,716
322.021, 324.021, 4504.021, or 5739.022 of the Revised Code, 2,717
shall not be considered an additional tax voted by the 2,718
electorate. 2,719
Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE 2,722
REVISED CODE, MONEY in a reserve balance account established by a 2,723
county or, township, OR MUNICIPAL CORPORATION under section 2,725
305.23, 505.83, or 505.831 of the Revised Code or by a municipal 2,726
66
corporation pursuant to an ordinance or resolution that has been 2,727
included as a reserve balance in the county's, township's, or 2,728
municipal corporation's budget under section 5705.29 5705.13 of 2,729
the Revised Code shall not be considered an unencumbered balance 2,731
or revenue under division (E)(3) or (4) of this section. 2,732
If a COUNTY, TOWNSHIP, OR municipal corporation has created 2,734
and maintains a NONEXPENDABLE TRUST fund exclusively for the 2,735
purpose of investing the principal of the fund and using the 2,737
investment earnings to fund expenditures UNDER SECTION 5705.131 2,738
OF THE REVISED CODE, the principal of the fund, and any additions
to the principal arising from sources other than the reinvestment 2,740
of investment earnings arising from such a fund, shall not be 2,741
considered an unencumbered balance or revenue under division 2,742
(E)(3) or (4) of this section. Only investment earnings arising 2,743
from investment of the principal or INVESTMENT OF SUCH additions 2,745
to principal may be considered an unencumbered balance or revenue 2,747
under those divisions.
(F) The total expenditures calculated pursuant to division 2,749
(C) of this section, less the deductions authorized in divisions 2,750
(D) and (E) of this section, shall be known as the "relative 2,751
need" of the subdivision, for the purposes of this section. 2,752
(G) The budget commission shall total the relative need of 2,754
all participating subdivisions in the county, and shall compute a 2,755
relative need factor by dividing the total estimate of the 2,756
undivided local government revenue assistance fund by the total 2,757
relative need of all participating subdivisions. 2,758
(H) The relative need of each subdivision shall be 2,760
multiplied by the relative need factor to determine the 2,761
proportionate share of the subdivision in the undivided local 2,762
government revenue assistance fund of the county, provided that 2,763
the maximum proportionate share of a county shall not exceed the 2,764
following maximum percentages of the total estimate of the 2,765
undivided local government revenue assistance fund governed by 2,766
the relationship of the percentage of the population of the 2,767
67
county that resides within municipal corporations within the 2,768
county to the total population of the county as reported in the 2,769
reports on population in Ohio by the department of development as 2,770
of the twentieth day of July of the year in which the tax budget 2,771
is filed with the budget commission: 2,772
Percentage of Percentage share 2,773
municipal population of the county 2,774
within the county: shall not exceed: 2,775
Less than forty-one per cent Sixty per cent 2,778
Forty-one per cent or more but Fifty per cent 2,780
less than eighty-one per
cent
Eighty-one per cent or more Thirty per cent 2,782
Where the proportionate share of the county exceeds the 2,785
limitations established in this division, the budget commission 2,786
shall adjust the proportionate shares determined pursuant to this 2,787
division so that the proportionate share of the county does not 2,788
exceed these limitations, and it shall increase the proportionate 2,789
shares of all other subdivisions on a pro rata basis. In 2,790
counties having a population of less than one hundred thousand, 2,791
not less than ten per cent shall be distributed to the townships 2,792
therein. 2,793
(I) On the basis of such apportionment, the county auditor 2,795
shall compute the percentage share of each such subdivision in 2,796
the undivided local government revenue assistance fund and shall 2,797
at the same time certify to the tax commissioner the percentage 2,798
share of the county as a subdivision. No payment shall be made 2,799
from the undivided local government revenue assistance fund, 2,800
except in accordance with such percentage shares. 2,801
Within ten days after the budget commission has made its 2,803
apportionment, whether conducted pursuant to this section or 2,804
section 5747.63 of the Revised Code, the auditor shall publish a 2,805
list of the subdivisions and the amount each is to receive from 2,806
the undivided local government revenue assistance fund and the 2,807
68
percentage share of each subdivision, in a newspaper or 2,808
newspapers of countywide circulation, and send a copy of such 2,809
apportionment to the tax commissioner. 2,810
The county auditor shall also send by certified mail, 2,812
return receipt requested, a copy of such apportionment to the 2,813
fiscal officer of each subdivision entitled to participate in the 2,814
allocation of the undivided local government revenue assistance 2,815
fund of the county. This copy shall constitute the official 2,816
notice of the commission action referred to in section 5705.37 of 2,817
the Revised Code. 2,818
All money received by a subdivision from the county 2,820
undivided local government revenue assistance fund shall be paid 2,821
into the subdivision's general fund and used for current 2,822
operating expenses. 2,823
If any public official fails to maintain the records 2,825
required by sections 5747.61 to 5747.63 of the Revised Code, or 2,826
by the rules issued by the tax commissioner, the auditor of 2,827
state, or the treasurer of state, pursuant to such sections, or 2,828
fails to comply with any law relating to the enforcement of such 2,829
sections, the local government revenue assistance fund money 2,830
allocated to the county shall be withheld until such time as the 2,831
public official has complied with such sections or such law or 2,832
the rules issued pursuant thereto. 2,833
Section 2. That existing sections 1907.24, 2303.201, 2,835
2743.70, 2949.091, 3109.14, 3316.03, 5705.12, 5705.13, 5705.29, 2,836
5705.35, 5705.36, 5705.38, 5705.41, 5709.61, 5733.33, 5747.51, 2,837
and 5747.62 and sections 305.23, 505.83, and 505.831 of the 2,839
Revised Code are hereby repealed. 2,840
Section 3. Section 1907.24 of the Revised Code is 2,842
presented in this act as a composite of the section as amended by 2,843
Sub. H.B. 423, Am. Sub. H.B. 438, and Sub. H.B. 455 of the 121st 2,845
General Assembly, with the new language of none of the acts shown 2,846
in capital letters. This is in recognition of the principle 2,847
stated in division (B) of section 1.52 of the Revised Code that 2,848
69
such amendments are to be harmonized where not substantively 2,849
irreconcilable and constitutes a legislative finding that such is 2,850
the resulting version in effect prior to the effective date of 2,851
this act.
Section 4. Sections 3316.03 and 5705.29 of the Revised 2,853
Code are amended by this act and also by Am. Sub. H.B. 650 of the 2,854
122nd General Assembly (effective July 1, 1998). The amendments 2,855
of Am. Sub. H.B. 650 are included in this act in lower case to 2,856
confirm the intention to retain them, but are not intended to be 2,857
effective until July 1, 1998. The amendment by this act to
division (H)(5) of section 5705.29 of the Revised Code takes 2,858
effect at the same time as the Am. Sub. H.B. 650 amendment it 2,859
affects, or at the earliest time permitted by law, whichever is 2,860
later.