REPRESENTATIVES Coates, Otterman, Allen, Carano, Driehaus, McGregor, Strahorn, Setzer, Wolpert, Flowers, Schmidt, Salerno, Seaver, Sykes, Perry, Cirelli, Distel, Krupinski, Rhine, Beatty, Hartnett, Sferra, DePiero, Fedor, R. Miller, DeBose, Brown, Latell, Niehaus, Seitz, Hollister, D. Miller, Reidelbach, Hughes, Raga, Hagan, Willamowski, Redfern, Ogg, Britton, Manning, Damschroder, Hoops

To amend section 5705.41 of the Revised Code to raise

1

the threshold amount below which the fiscal officer

2

of a political subdivision can approve expenditures

3

made without a certificate of available funds.

4

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

Section 1. That section 5705.41 of the Revised Code be	5
amended to read as follows:	6

Sec. 5705.41.  No subdivision or taxing unit shall:

7

(A) Make any appropriation of money except as provided in	8
Chapter 5705. of the Revised Code; provided, that the	9
authorization of a bond issue shall be deemed to be an	10
appropriation of the proceeds of the bond issue for the purpose	11
for which such bonds were issued, but no expenditure shall be made	12
from any bond fund until first authorized by the taxing authority;	13

(B) Make any expenditure of money unless it has been	14
appropriated as provided in such chapter;	15

(C) Make any expenditure of money except by a proper warrant	16
drawn against an appropriate fund;	17

(D)(1) Except as otherwise provided in division (D)(2) of	18
this section and section 5705.44 of the Revised Code, make any	19
contract or give any order involving the expenditure of money	20
unless there is attached thereto a certificate of the fiscal	21
officer of the subdivision that the amount required to meet the	22
obligation or, in the case of a continuing contract to be	23
performed in whole or in part in an ensuing fiscal year, the	24
amount required to meet the obligation in the fiscal year in which	25
the contract is made, has been lawfully appropriated for such	26
purpose and is in the treasury or in process of collection to the	27
credit of an appropriate fund free from any previous encumbrances.	28
This certificate need be signed only by the subdivision's fiscal	29
officer. Every such contract made without such a certificate	30
shall be void, and no warrant shall be issued in payment of any	31
amount due thereon. If no certificate is furnished as required,	32
upon receipt by the taxing authority of the subdivision or taxing	33
unit of a certificate of the fiscal officer stating that there was	34
at the time of the making of such contract or order and at the	35
time of the execution of such certificate a sufficient sum	36
appropriated for the purpose of such contract and in the treasury	37
or in process of collection to the credit of an appropriate fund	38
free from any previous encumbrances, such taxing authority may	39
authorize the drawing of a warrant in payment of amounts due upon	40
such contract, but such resolution or ordinance shall be passed	41
within thirty days after the taxing authority receives such	42
certificate; provided that, if the amount involved is less than	43
one hundred dollars in the case of counties or onethree thousand	44
dollars in the case of all other subdivisions or taxing units, the	45
fiscal officer may authorize it to be paid without such	46
affirmation of the taxing authority of the subdivision or taxing	47
unit, if such expenditure is otherwise valid.	48

(2) Annually, the board of county commissioners may adopt a	49
resolution exempting for the current fiscal year county purchases	50
of seven hundred fifty dollars or less from the requirement of	51
division (D)(1) of this section that a certificate be attached to	52
any contract or order involving the expenditure of money. The	53
resolution shall state the dollar amount that is exempted from the	54
certificate requirement and whether the exemption applies to all	55
purchases, to one or more specific classes of purchases, or to the	56
purchase of one or more specific items. Prior to the adoption of	57
the resolution, the board shall give written notice to the county	58
auditor that it intends to adopt the resolution. The notice shall	59
state the dollar amount that is proposed to be exempted and	60
whether the exemption would apply to all purchases, to one or more	61
specific classes of purchases, or to the purchase of one or more	62
specific items. The county auditor may review and comment on the	63
proposal, and shall send any comments to the board within fifteen	64
days after receiving the notice. The board shall wait at least	65
fifteen days after giving the notice to the auditor before	66
adopting the resolution. A person authorized to make a county	67
purchase in a county that has adopted such a resolution shall	68
prepare and file with the county auditor, within three business	69
days after incurring an obligation not requiring a certificate, a	70
written document specifying the purpose and amount of the	71
expenditure, the date of the purchase, the name of the vendor, and	72
such additional information as the auditor of state may prescribe.	73

(3) Upon certification by the auditor or other chief fiscal	74
officer that a certain sum of money, not in excess of five	75
thousand dollars, has been lawfully appropriated, authorized, or	76
directed for a certain purpose and is in the treasury or in the	77
process of collection to the credit of a specific line-item	78
appropriation account in a certain fund free from previous and	79
then outstanding obligations or certifications, then for such	80
purpose and from such line-item appropriation account in such	81
fund, over a period not exceeding three months and not extending	82
beyond the end of the fiscal year, expenditures may be made,	83
orders for payment issued, and contracts or obligations calling	84
for or requiring the payment of money made and assumed; provided,	85
that the aggregate sum of money included in and called for by such	86
expenditures, orders, contracts, and obligations shall not exceed	87
the sum so certified. Such a certification need be signed only by	88
the fiscal officer of the subdivision or the taxing district and	89
may, but need not, be limited to a specific vendor. An itemized	90
statement of obligations incurred and expenditures made under such	91
certificate shall be rendered to the auditor or other chief fiscal	92
officer before another such certificate may be issued, and not	93
more than one such certificate shall be outstanding at a time.	94

In addition to providing the certification for expenditures	95
of five thousand dollars or less as provided in this division, a	96
subdivision also may make expenditures, issue orders for payment,	97
and make contracts or obligations calling for or requiring the	98
payment of money made and assumed for specified permitted purposes	99
from a specific line-item appropriation account in a specified	100
fund for a sum of money upon the certification by the fiscal	101
officer of the subdivision that this sum of money has been	102
lawfully appropriated, authorized, or directed for a permitted	103
purpose and is in the treasury or in the process of collection to	104
the credit of the specific line-item appropriation account in the	105
specified fund free from previous and then-outstanding obligations	106
or certifications; provided that the aggregate sum of money	107
included in and called for by the expenditures, orders, and	108
obligations shall not exceed the certified sum. The purposes for	109
which a subdivision may lawfully appropriate, authorize, or issue	110
such a certificate are the services of an accountant, architect,	111
attorney at law, physician, professional engineer, construction	112
project manager, consultant, surveyor, or appraiser by or on	113
behalf of the subdivision or contracting authority; fuel oil,	114
gasoline, food items, roadway materials, and utilities; and any	115
purchases exempt from competitive bidding under section 125.04 of	116
the Revised Code and any other specific expenditure that is a	117
recurring and reasonably predictable operating expense. Such a	118
certification shall not extend beyond the end of the fiscal year	119
or, in the case of a board of county commissioners that has	120
established a quarterly spending plan under section 5705.392 of	121
the Revised Code, beyond the quarter to which the plan applies.	122
Such a certificate shall be signed by the fiscal officer and may,	123
but need not, be limited to a specific vendor. An itemized	124
statement of obligations incurred and expenditures made under such	125
a certificate shall be rendered to the fiscal officer for each	126
certificate issued. More than one such certificate may be	127
outstanding at any time.	128

In any case in which a contract is entered into upon a per	129
unit basis, the head of the department, board, or commission for	130
the benefit of which the contract is made shall make an estimate	131
of the total amount to become due upon such contract, which	132
estimate shall be certified in writing to the fiscal officer of	133
the subdivision. Such a contract may be entered into if the	134
appropriation covers such estimate, or so much thereof as may be	135
due during the current year. In such a case the certificate of	136
the fiscal officer based upon the estimate shall be a sufficient	137
compliance with the law requiring a certificate.	138

Any certificate of the fiscal officer attached to a contract	139
shall be binding upon the political subdivision as to the facts	140
set forth therein. Upon request of any person receiving an order	141
or entering into a contract with any political subdivision, the	142
certificate of the fiscal officer shall be attached to such order	143
or contract. "Contract" as used in this section excludes current	144
payrolls of regular employees and officers.	145

Taxes and other revenue in process of collection, or the	146
proceeds to be derived from authorized bonds, notes, or	147
certificates of indebtedness sold and in process of delivery,	148
shall for the purpose of this section be deemed in the treasury or	149
in process of collection and in the appropriate fund. This	150
section applies neither to the investment of sinking funds by the	151
trustees of such funds, nor to investments made under sections	152
731.56 to 731.59 of the Revised Code.	153

No district authority shall, in transacting its own affairs,	154
do any of the things prohibited to a subdivision by this section,	155
but the appropriation referred to shall become the appropriation	156
by the district authority, and the fiscal officer referred to	157
shall mean the fiscal officer of the district authority.	158

Section 2. That existing section 5705.41 of the Revised Code	159
is hereby repealed.	160

Section 3.  Section 5705.41 of the Revised Code is presented	161
in this act as a composite of the section as amended by both Am.	162
H.B. 21 and Am. Sub. H.B. 94 of the 124th General Assembly. The	163
General Assembly, applying the principle stated in division (B) of	164
section 1.52 of the Revised Code that amendments are to be	165
harmonized if reasonably capable of simultaneous operation, finds	166
that the composite is the resulting version of the section in	167
effect prior to the effective date of the section as presented in	168
this act.	169