As Passed by the House                        1            

122nd General Assembly                                             4            

   Regular Session                          Am. Sub. S. B. No. 62  5            

      1997-1998                                                    6            


    SENATORS BLESSING-SHOEMAKER-GAETH-GARDNER-SWEENEY-DRAKE-       8            

     KEARNS-B. JOHNSON-NEIN-LATTA-SCHAFRATH-OELSLAGER-WATTS-       9            

    FINAN-ZALESKI-REPRESENTATIVES GARCIA-CORE-SCHULER-VESPER-      10           

      SCHURING-MOTTLEY-CORBIN-LEWIS-PATTON-VERICH-GRENDELL-        11           

              REID-SAWYER-PERZ-O'BRIEN-WILSON-OLMAN                12           


                                                                   14           

                           A   B I L L                                          

             To amend sections 307.12 and 505.10 and to enact      16           

                sections 9.48 and 133.151 of the Revised Code to   17           

                authorize a county or township to participate in   18           

                contracts of other counties or  townships, or in   19           

                joint purchasing programs of a national or state   20           

                association of political subdivisions, for the     21           

                acquisition of equipment, materials,  supplies,    22           

                or services, to authorize counties or townships    23           

                to issue self-supporting securities for the        24           

                purpose of paying the costs of their own  and      25           

                other counties' or townships' permanent            26           

                improvements, and to establish a fair market       27           

                value below which a county or township is not                   

                required  to conduct a public auction for the      29           

                sale of unnecessary personal property or sell it                

                by sealed bid and may sell it without public       30           

                notice.                                            31           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        33           

      Section 1.  That sections 307.12 and 505.10 be amended and   35           

sections 9.48 and 133.151 of the Revised Code be enacted to read   36           

as follows:                                                                     

      Sec. 9.48.  A COUNTY OR TOWNSHIP MAY DO EITHER OF THE        38           

                                                          2      

                                                                 
FOLLOWING:                                                                      

      (A)  PERMIT ONE OR MORE OTHER COUNTIES OR TOWNSHIPS TO       41           

PARTICIPATE IN CONTRACTS INTO WHICH IT HAS ENTERED FOR THE         42           

ACQUISITION OF EQUIPMENT, MATERIALS, SUPPLIES, OR SERVICES, AND    43           

MAY CHARGE SUCH PARTICIPATING COUNTIES OR TOWNSHIPS A REASONABLE   44           

FEE TO COVER ANY ADDITIONAL COSTS INCURRED AS A RESULT OF THEIR    45           

PARTICIPATION;                                                                  

      (B)  PARTICIPATE IN A JOINT PURCHASING PROGRAM OPERATED BY   47           

OR THROUGH A NATIONAL OR STATE ASSOCIATION OF POLITICAL            50           

SUBDIVISIONS IN WHICH THE PURCHASING COUNTY OR TOWNSHIP IS         51           

ELIGIBLE FOR MEMBERSHIP.                                                        

      ACQUISITION BY A COUNTY OR TOWNSHIP OF EQUIPMENT, MATERIAL,  54           

SUPPLIES, OR SERVICES, THROUGH PARTICIPATION IN A CONTRACT OF      55           

ANOTHER COUNTY OR TOWNSHIP OR PARTICIPATION IN AN ASSOCIATION      56           

PROGRAM UNDER THIS SECTION, IS EXEMPT FROM ANY COMPETITIVE         58           

SELECTION REQUIREMENTS OTHERWISE REQUIRED BY LAW, IF THE CONTRACT  59           

IN WHICH IT IS PARTICIPATING WAS AWARDED PURSUANT TO A             60           

COMPETITIVE SELECTION PROCEDURE, AND, IN THE CASE OF                            

PARTICIPATION IN A JOINT PURCHASING PROGRAM OPERATED BY OR         61           

THROUGH A NATIONAL OR STATE ASSOCIATION OF POLITICAL               62           

SUBDIVISIONS, IF THE PROGRAM HAS EMPLOYED A COMPETITIVE SELECTION  63           

PROCEDURE SUBSTANTIALLY SIMILAR TO THE PROCEDURE THAT WOULD HAVE   64           

BEEN REQUIRED OF THE PURCHASING COUNTY OR TOWNSHIP ACTING ALONE.                

NO COUNTY OR TOWNSHIP SHALL ACQUIRE EQUIPMENT, MATERIALS,          65           

SUPPLIES, OR SERVICES BY PARTICIPATING IN A CONTRACT UNDER THIS    66           

SECTION IF IT HAS RECEIVED BIDS FOR SUCH ACQUISITION, UNLESS ITS   67           

PARTICIPATION ENABLES IT TO MAKE THE ACQUISITION UPON THE SAME     68           

TERMS, CONDITIONS, AND SPECIFICATIONS AT A LOWER PRICE.            69           

      Sec. 133.151.  (A)  A COUNTY OR TOWNSHIP MAY ISSUE, FOR      71           

ITSELF OR ON BEHALF OF ANY OTHER COUNTY OR TOWNSHIP OR IN A JOINT  72           

EXERCISE OF THEIR POWERS, SELF-SUPPORTING SECURITIES FOR EITHER    74           

OR BOTH OF THE FOLLOWING PURPOSES:                                              

      (1)  PAYING THE COSTS OF ANY PERMANENT IMPROVEMENTS THAT IT  77           

IS AUTHORIZED TO ACQUIRE, IMPROVE, OR CONSTRUCT;                                

                                                          3      

                                                                 
      (2)  MAKING LOANS OR OTHERWISE PROVIDING, BY COOPERATIVE     79           

ACTION, FINANCIAL ASSISTANCE TO ONE OR MORE COUNTIES OR TOWNSHIPS  81           

TO ASSIST SUCH OTHER COUNTIES OR TOWNSHIPS IN PAYING THE COSTS OF  82           

PERMANENT IMPROVEMENTS.                                                         

      (B)  SELF-SUPPORTING SECURITIES ISSUED UNDER THIS SECTION    84           

SHALL NOT BE GENERAL OBLIGATIONS OF THE ISSUER, BUT SHALL BE       85           

SECURED BY ANY OF THE FOLLOWING:                                   86           

      (1)  A PLEDGE OF AND A LIEN UPON THE REVENUES OF THE         88           

ISSUER, DERIVED FROM OWNERSHIP OR OPERATION OF THE PERMANENT       89           

IMPROVEMENTS, INCLUDING THOSE RATES, CHARGES, OR RENTS AND ANY     90           

INTEREST SUBSIDIES OR DEBT CHARGES, GRANTS, OR OTHER PAYMENTS BY   91           

FEDERAL OR STATE AGENCIES THEREFOR, AND THE COVENANTS OF THE       92           

ISSUER TO MAINTAIN SUFFICIENT RATES, CHARGES, AND RENTALS TO       93           

PRODUCE REVENUES SUFFICIENT TO PAY ALL CURRENT EXPENSES OF THE     94           

PERMANENT IMPROVEMENTS PAYABLE BY THE ISSUER, AND TO PAY DEBT      95           

SERVICE CHARGES ON THE SECURITIES AND ESTABLISH AND MAINTAIN ANY   96           

CONTRACTUALLY REQUIRED SPECIAL FUNDS RELATING TO THE SECURITIES,   97           

AND, IF THE SECURITIES ARE ANTICIPATORY SECURITIES, TO ISSUE THE   98           

SELF-SUPPORTING SECURITIES FOR WHICH THE ANTICIPATORY SECURITIES   99           

ARE ISSUED;                                                        100          

      (2)  AMOUNTS RECEIVED FROM OTHER COUNTIES OR TOWNSHIPS AS    103          

REPAYMENT OF LOANS OR OTHER COOPERATIVE FINANCIAL ASSISTANCE MADE  104          

TO THEM FROM THE PROCEEDS OF SUCH SELF-SUPPORTING SECURITIES;      105          

      (3)  A PLEDGE OF AND LIEN ON THE PROCEEDS OF ANY SECURITIES  108          

ISSUED TO FUND OR REFUND THOSE SELF-SUPPORTING SECURITIES.         109          

      (C)  A COUNTY OR TOWNSHIP ISSUING SELF-SUPPORTING            111          

SECURITIES UNDER THIS SECTION SHALL DO SO BY RESOLUTION, AND SUCH  113          

RESOLUTION SHALL SET FORTH THE TERMS OF THE SECURITIES, THE DATE   114          

OF THE SECURITIES, THE AMOUNT TO BE ISSUED, AND THE MAXIMUM RATE   115          

OF INTEREST.  THE SECURITIES SHALL MATURE AT SUCH TIMES NOT        116          

EXCEEDING THE MAXIMUM LIMITS SPECIFIED FOR GENERAL OBLIGATIONS IN  117          

SECTION 133.20 OF THE REVISED CODE, AND SHALL BE EXECUTED IN SUCH  118          

MANNER AS THE RESOLUTION PROVIDES.  THE SECURITIES SHALL BE        119          

NEGOTIABLE, BEAR INTEREST AT SUCH RATE OR RATES, BE IN SUCH        120          

                                                          4      

                                                                 
DENOMINATIONS, BE IN SUCH FORM, CARRY SUCH REGISTRATION            121          

PRIVILEGES, BE PAYABLE IN SUCH MEDIUM OF PAYMENT AT SUCH PLACE OR  123          

PLACES, AND BE SUBJECT TO SUCH TERMS OF REDEMPTION AS THE ISSUER   124          

MAY AUTHORIZE.  THE SECURITIES MAY BE SOLD AT PUBLIC OR PRIVATE    125          

SALE.                                                                           

      (D)  SELF-SUPPORTING SECURITIES ISSUED UNDER THIS SECTION,   127          

THEIR TRANSFER, AND ANY INCOME THEREFROM, INCLUDING ANY PROFIT     128          

MADE ON THE SALE THEREOF, SHALL AT ALL TIMES BE FREE FROM          129          

TAXATION WITHIN THE STATE.                                         130          

      (E)  COSTS OF PERMANENT IMPROVEMENTS THAT MAY BE FINANCED    132          

WITH, AND PAID FROM THE PROCEEDS OF, SELF-SUPPORTING SECURITIES    134          

ISSUED UNDER THIS SECTION INCLUDE, WITHOUT LIMITATION AS TO OTHER  135          

COSTS PROPERLY ALLOCABLE TO THE PERMANENT IMPROVEMENTS, THE COSTS  136          

OF:  ACQUIRING, CONSTRUCTING, RECONSTRUCTING, REHABILITATING,      137          

INSTALLING, REMODELING, RENOVATING, ENLARGING, EQUIPPING,          138          

FURNISHING, OR OTHERWISE IMPROVING PERMANENT IMPROVEMENTS; SITE    139          

CLEARANCE, IMPROVEMENT, AND PREPARATION; ACQUISITION OF REAL OR    140          

PERSONAL PROPERTY; INDEMNITY AND SURETY BONDS AND PREMIUMS ON      141          

INSURANCE; ALL RELATED DIRECT ADMINISTRATIVE EXPENSES AND          142          

ALLOCABLE PORTIONS OF DIRECT COSTS OF THE ISSUER; ENGINEERING,     143          

ARCHITECTURAL, LEGAL, AND OTHER CONSULTING AND PROFESSIONAL        144          

SERVICES; DESIGNS, PLANS, SPECIFICATIONS, FEASIBILITY OR RATE      145          

STUDIES, APPRAISALS, SURVEYS, AND ESTIMATES OF COST; INTEREST OR   146          

INTEREST EQUIVALENT ON THE SECURITIES, WHETHER CAPITALIZED OR      147          

NOT; FINANCING COSTS; TITLE WORK AND TITLE COMMITMENT, INSURANCE,  148          

AND GUARANTIES; AMOUNTS NECESSARY TO ESTABLISH ANY DEBT SERVICE    149          

RESERVE OR OTHER RESERVES AS REQUIRED BY THE PROCEEDINGS FOR THE   150          

SECURITIES; AUDITS; THE REIMBURSEMENT OF MONEYS ADVANCED OR        151          

APPLIED BY OR BORROWED FROM ANY PERSON, WHETHER TO OR BY THE       152          

ISSUER OR OTHERS, FROM WHATEVER SOURCE PROVIDED, FOR THE PAYMENT   153          

OF ANY ITEM OR ITEMS OF COST OF THE PERMANENT IMPROVEMENTS; AND    154          

ALL OTHER EXPENSES NECESSARY OR INCIDENTAL TO PLANNING OR          155          

DETERMINING FEASIBILITY OR PRACTICABILITY WITH RESPECT TO          156          

PERMANENT IMPROVEMENTS OR NECESSARY OR INCIDENTAL TO THE           157          

                                                          5      

                                                                 
ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION,         158          

INSTALLATION, REMODELING, RENOVATION, ENLARGEMENT, EQUIPPING,      159          

FURNISHING, OR OTHER IMPROVEMENT OF THE PERMANENT IMPROVEMENTS,    160          

THE FINANCING OF THE PERMANENT IMPROVEMENTS, AND THE PLACING OF    161          

THE PERMANENT IMPROVEMENTS IN CONDITION FOR USE AND OPERATION,     162          

AND ALL LIKE OR RELATED COSTS, INCLUDING ANY ONE, PART, OR         163          

COMBINATION OF, OR THE ISSUER'S SHARE OF, THOSE COSTS AND          164          

EXPENSES.                                                          165          

      Sec. 307.12.  (A)  When the board of county commissioners    175          

finds, by resolution, that the county has personal property,       176          

including motor vehicles acquired for the use of county officers   177          

and departments, and road machinery, equipment, tools, or          178          

supplies, which is not needed for public use, or is obsolete or    179          

unfit for the use for which it was acquired, AND WHEN THE FAIR     180          

MARKET VALUE OF THE PROPERTY TO BE SOLD UNDER THIS DIVISION IS,    181          

IN THE OPINION OF THE BOARD, IN EXCESS OF TWO THOUSAND FIVE        182          

HUNDRED DOLLARS, the board may do either of the following:         183          

      (1)  Sell such property at public auction or by sealed bid   185          

to the highest bidder, after giving at least ten days' notice of   186          

the time, place, and manner of sale by posting a typewritten or    187          

printed notice in the offices of the county auditor and board.     188          

In case the fair market value of the property to be sold pursuant  189          

to this division is, in the opinion of the board, in excess of     190          

two thousand dollars, notice.  NOTICE of the time, place, and      191          

manner of the sale shall also be published in a newspaper of       193          

general circulation in the county at least ten days prior to such  194          

THE sale, AND A TYPEWRITTEN OR PRINTED NOTICE OF THE TIME, PLACE,  195          

AND MANNER OF THE SALE SHALL BE POSTED AT LEAST TEN DAYS BEFORE    196          

THE SALE IN THE OFFICES OF THE COUNTY AUDITOR AND THE BOARD OF     197          

COUNTY COMMISSIONERS.  The board of county commissioners may       198          

authorize the sale of such personal property without               199          

advertisement or public notification and competitive bidding to    200          

the federal government, state, or any political subdivision of     201          

the state.                                                                      

                                                          6      

                                                                 
      If a board conducts a sale of personal property by sealed    203          

bid, the form of the bid shall be as prescribed by the board, and  204          

each bid shall contain the name of the person submitting it. Bids  206          

received shall be opened and tabulated at the time stated in the   207          

notice.  The property shall be sold to the highest bidder, except  208          

that the board may reject all bids and hold another sale, by       209          

public auction or sealed bid, in the manner prescribed by this                  

section.                                                           210          

      (2)  Donate any motor vehicle that does not exceed four      212          

thousand five hundred dollars in value to a nonprofit              213          

organization exempt from federal income taxation pursuant to 26    214          

U.S.C. 501(a) and (c)(3) for the purpose of meeting the            215          

transportation needs of participants in the Ohio works first                    

program established under Chapter 5107. of the Revised Code and    216          

participants in the prevention, retention, and contingency         217          

program established under Chapter 5108. of the Revised Code.       218          

      (B)  WHEN THE BOARD OF COUNTY COMMISSIONERS FINDS, BY        220          

RESOLUTION, THAT THE COUNTY HAS PERSONAL PROPERTY, INCLUDING       221          

MOTOR VEHICLES ACQUIRED FOR THE USE OF COUNTY OFFICERS AND         222          

DEPARTMENTS, AND ROAD MACHINERY, EQUIPMENT, TOOLS, OR SUPPLIES,    223          

WHICH IS NOT NEEDED FOR PUBLIC USE, OR IS OBSOLETE OR UNFIT FOR    224          

THE USE FOR WHICH IT WAS ACQUIRED, AND WHEN THE FAIR MARKET VALUE               

OF THE PROPERTY TO BE SOLD UNDER THIS DIVISION IS, IN THE OPINION  225          

OF THE BOARD, TWO THOUSAND FIVE HUNDRED DOLLARS OR LESS, THE       226          

BOARD MAY SELL THE PROPERTY BY PRIVATE SALE, WITHOUT               227          

ADVERTISEMENT OR PUBLIC NOTIFICATION.  NOTWITHSTANDING ANYTHING    228          

TO THE CONTRARY IN DIVISION (A) OF THIS SECTION AND REGARDLESS OF  229          

THE PROPERTY'S VALUE, THE BOARD MAY SELL PERSONAL PROPERTY NOT                  

NEEDED FOR PUBLIC USE OR OBSOLETE OR UNFIT FOR THE USE FOR WHICH   230          

IT WAS ACQUIRED TO THE FEDERAL GOVERNMENT, THE STATE, OR ANY       231          

POLITICAL SUBDIVISION OF THE STATE WITHOUT ADVERTISEMENT OR        232          

PUBLIC NOTIFICATION.                                                            

      (C)  When a county officer or department head determines     234          

that county-owned personal property under the jurisdiction of the  236          

                                                          7      

                                                                 
officer or department head, including motor vehicles, road                      

machinery, equipment, tools, or supplies, is not of immediate      237          

need, the county officer or department head may NOTIFY THE BOARD   238          

OF COUNTY COMMISSIONERS AND THE BOARD MAY lease such personal      239          

property to any municipal corporation, township, or other          240          

political subdivision of the state.  Such lease shall require the  241          

county to be reimbursed under terms, conditions, and fees          242          

established by the board of county commissioners, or under                      

contracts approved EXECUTED by the board.                          243          

      (C)(D)  Where the board finds, by resolution, that the       245          

county has vehicles, equipment, or machinery which is not needed,  246          

or is unfit for public use, and the board desires to sell such     247          

vehicles, equipment, or machinery to the person or firm from       248          

which it proposes to purchase other vehicles, equipment, or        249          

machinery, the board may offer to sell the vehicles, equipment,    250          

or machinery to such person or firm, and to have such selling      251          

price credited to the person or firm against the purchase price    252          

of other vehicles, equipment, or machinery.                        253          

      (D)(E)  Where the board advertises for bids for the sale of  255          

new vehicles, equipment, or machinery to the county, it may        256          

include in the same advertisement a notice of the willingness of   257          

such board to accept bids for the purchase of county-owned         258          

vehicles, equipment, or machinery which is obsolete or not needed  259          

for public use, and to have the amount of such bids subtracted     260          

from the selling price of the other vehicles, equipment, or        261          

machinery as a means of determining the lowest responsible         262          

bidder.                                                            263          

      Sec. 505.10.  The board of township trustees may accept, on  272          

behalf of the township, the donation by bequest, devise, deed of   273          

gift, or otherwise, of any property, real or personal, for any     274          

township use.  When the township has property, including motor     275          

vehicles, road machinery, equipment, and tools, which the board,   276          

by resolution, finds it does not need, the board may sell and      277          

convey such property.  Except as otherwise provided in division    278          

                                                          8      

                                                                 
(C)(A) OR (B) of this section and in sections 505.08 and 505.101   281          

of the Revised Code, the sale must be by public auction and upon   282          

notice thereof being given as follows:                                          

      (A)  If the fair market value of the property to be sold     284          

is, in the opinion of the board, two thousand dollars or less,     285          

the board shall post a typewritten or printed notice of the time,  286          

place, and manner of the sale in the office of the board for at    287          

least ten days prior to the sale.  The board shall not hold in     288          

any calendar month more than one sale for which notice is given    289          

under this division, and each such sale shall be held on the same  290          

day of the week, at the same time of day, and at the same place.   291          

      (B)  If the fair market value of the property to be sold     293          

is, in the opinion of the board, in excess of two thousand FIVE    294          

HUNDRED dollars, the board shall post notice as provided in        295          

division (A) of this section and shall publish notice of the       296          

time, place, and manner of the sale once a week for three weeks    297          

in a newspaper published, or of general circulation, in such THE   298          

township, the last of such publications to be at least five days   300          

before the date of sale, AND SHALL POST A TYPEWRITTEN OR PRINTED   301          

NOTICE OF THE TIME, PLACE, AND MANNER OF THE SALE IN THE OFFICE    302          

OF THE BOARD FOR AT LEAST TEN DAYS PRIOR TO THE SALE.  IF THE      303          

FAIR MARKET VALUE OF THE PROPERTY TO BE SOLD IS, IN THE OPINION    304          

OF THE BOARD, TWO THOUSAND FIVE HUNDRED DOLLARS OR LESS, THE                    

BOARD MAY SELL THE PROPERTY BY PRIVATE SALE, WITHOUT               305          

ADVERTISEMENT OR PUBLIC NOTIFICATION.                              306          

      Where the board finds, by resolution, that the township has  308          

motor vehicles, road machinery, equipment, or tools which are not  309          

needed, or which are unfit for public use, and the board wishes    310          

to sell such motor vehicles, road machinery, equipment, or tools   311          

to the person or firm from which it proposes to purchase other     312          

motor vehicles, road machinery, equipment, or tools, the board     313          

may offer to sell the motor vehicles, road machinery, equipment,   314          

or tools to such person or firm, and to have such selling price    315          

credited to the person or firm against the purchase price of       316          

                                                          9      

                                                                 
other motor vehicles, road machinery, equipment, or tools.         317          

      Where the board advertises for bids for the sale of new      319          

motor vehicles, road machinery, equipment, or tools to the         320          

township, it may include in the same advertisement a notice of     321          

the willingness of the board to accept bids for the purchase of    322          

township-owned motor vehicles, road machinery, equipment, or       323          

tools, which are obsolete or not needed for public use, and to     324          

have the amount of such bids subtracted from the selling price of  325          

the new motor vehicles, road machinery, equipment, or tools, as a  326          

means of determining the lowest responsible bidder.                327          

      When a township has title to real property, the board of     329          

such township may, by resolution, authorize the transfer and       330          

conveyance of such property to any other political subdivision of  331          

the state upon such terms as are agreed to between such board and  332          

the legislative authority of such political subdivision.           333          

      (C)(B)  When the board has offered property at public        335          

auction under this section and has not received an acceptable      337          

offer, the board, by resolution, may enter into a contract,        338          

without advertising or bidding, for the sale of that property.     339          

The resolution shall specify a minimum acceptable price and the    340          

minimum acceptable terms for the contract.  The minimum                         

acceptable price shall not be lower than the minimum price         341          

established for the public auction.                                342          

      Section 2.  That existing sections 307.12 and 505.10 of the  344          

Revised Code are hereby repealed.                                  345