As Introduced

124th General Assembly
Regular Session
2001-2002
H. B. No. 513


REPRESENTATIVES Seitz, Schmidt, Raga, Brinkman, Hagan, Faber, Collier, Carano, Seaver, Schaffer, Lendrum, Fessler, Grendell, Blasdel, Schneider



A BILL
To amend sections 505.10, 507.11, 517.15, 5571.14, and1
5705.13 and to repeal sections 517.16, 517.17, and2
517.18 of the Revised Code to authorize taxing3
authorities to create multiple reserve balance4
accounts for rainy day funds; to expand the5
authority of townships pertaining to the permanent6
endowment fund for their cemeteries; to authorize7
townships to sell real property under certain8
circumstances without a public auction or9
competitive bidding; to authorize townships to10
declare a road obstruction to be a nuisance and to11
order its removal; and to permit authorized12
township officers and employees to incur13
obligations of up to $2500 without prior approval.14


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

       Section 1. That sections 505.10, 507.11, 517.15, 5571.14, and15
5705.13 of the Revised Code be amended to read as follows:16

       Sec. 505.10.  The board of township trustees may accept, on17
behalf of the township, the donation by bequest, devise, deed of18
gift, or otherwise, of any real or personal property for any19
township use. When the township has property, including motor20
vehicles, road machinery, equipment, and tools, which the board,21
by resolution, finds it does not need for public use, are22
obsolete, or are unfit for the use for which they were acquired,23
the board may sell and convey that property or otherwise dispose24
of it in accordance with this section. Except as otherwise25
provided in sections 505.08 and, 505.101, and 505.102 of the26
Revised Code, the sale or other disposition of unneeded, obsolete,27
or unfit property shall be made in accordance with one of the28
following:29

       (A)(1) If the fair market value of property to be sold is,30
in the opinion of the board, in excess of two thousand five31
hundred dollars, the sale shall be by public auction and the board32
shall publish notice of the time, place, and manner of the sale33
once a week for three weeks in a newspaper published, or of34
general circulation, in the township, the last of those35
publications to be at least five days before the date of sale, and36
shall post a typewritten or printed notice of the time, place, and37
manner of the sale in the office of the board for at least ten38
days prior to the sale.39

       (2) If the fair market value of property to be sold is, in40
the opinion of the board, two thousand five hundred dollars or41
less, the board may sell the property by private sale, without42
advertisement or public notification.43

       (3) If the board finds, by resolution, that the township has44
motor vehicles, road machinery, equipment, or tools which are not45
needed, or are unfit for public use, and the board wishes to sell 46
the motor vehicles, road machinery, equipment, or tools to the47
person or firm from which it proposes to purchase other motor48
vehicles, road machinery, equipment, or tools, the board may offer49
to sell the motor vehicles, road machinery, equipment, or tools to 50
that person or firm, and to have the selling price credited to51
the person or firm against the purchase price of other motor52
vehicles, road machinery, equipment, or tools.53

       (4) If the board advertises for bids for the sale of new54
motor vehicles, road machinery, equipment, or tools to the55
township, it may include in the same advertisement a notice of the56
willingness of the board to accept bids for the purchase of57
township-owned motor vehicles, road machinery, equipment, or tools58
which are obsolete or not needed for public use, and to have the59
amount of those bids subtracted from the selling price of the new60
motor vehicles, road machinery, equipment, or tools, as a means of61
determining the lowest responsible bidder.62

       (5) When a township has title to real property, the board of63
township trustees, by resolution, may authorize the transfer and64
conveyance of that property to any other political subdivision of65
the state upon such terms as are agreed to between the board and66
the legislative authority of that political subdivision.67

       (6) When a township has title to real property and the board68
of township trustees wishes to sell or otherwise transfer the69
property, the board, upon a unanimous vote of its members, and by70
resolution, may authorize the transfer and conveyance of that real71
property to any person upon whatever terms are agreed to between72
the board and that person.73

       (7) If the board of township trustees determines that74
township personal property is not needed for public use, or is75
obsolete or unfit for the use for which it was acquired, and that76
the property has no value, the board may discard or salvage that77
property.78

       (B) When the board has offered property at public auction79
under this section and has not received an acceptable offer, the80
board, by resolution, may enter into a contract, without81
advertising or bidding, for the sale of that property. The82
resolution shall specify a minimum acceptable price and the83
minimum acceptable terms for the contract. The minimum acceptable84
price shall not be lower than the minimum price established for85
the public auction.86

       (C) Notwithstanding anything to the contrary in division (A)87
or (B) of this section and regardless of the property's value, the88
board of township trustees may sell personal property, including89
motor vehicles, road machinery, equipment, tools, or supplies,90
which is not needed for public use, or is obsolete or unfit for91
the use for which it was acquired, by internet auction. The board92
shall adopt, during each calendar year, a resolution expressing93
its intent to sell that property by internet auction. The94
resolution shall include a description of how the auctions will be95
conducted and shall specify the number of days for bidding on the96
property, which shall be no less than fifteen days, including97
Saturdays, Sundays, and legal holidays. The resolution shall98
indicate whether the township will conduct the auction or the99
board will contract with a representative to conduct the auction100
and shall establish the general terms and conditions of sale. If101
a representative is known when the resolution is adopted, the102
resolution shall provide contact information such as the103
representative's name, address, and telephone number.104

       After adoption of the resolution, the board shall publish, in105
a newspaper of general circulation in the township, notice of its106
intent to sell unneeded, obsolete, or unfit township personal107
property by internet auction. The notice shall include a summary108
of the information provided in the resolution and shall be109
published at least twice. The second and any subsequent notice110
shall be published not less than ten nor more than twenty days111
after the previous notice. A clerk also shall post a similar112
notice throughout the calendar year in a conspicuous place in the113
board's office and, if the township maintains a website on the114
internet, the notice shall be posted continually throughout the115
calendar year at that website.116

       When property is to be sold by internet auction, the board or117
its representative may establish a minimum price that will be118
accepted for specific items and may establish any other terms and119
conditions for the particular sale, including requirements for120
pick-up or delivery, method of payment, and sales tax. This type121
of information shall be provided on the internet at the time of122
the auction and may be provided before that time upon request123
after the terms and conditions have been determined by the board124
or its representative.125

       As used in this section, "internet" means the international126
computer network of both federal and nonfederal interoperable127
packet switched data networks, including the graphical subnetwork128
called the world wide web.129

       Sec. 507.11.  (A) The board of township trustees may130
authorize, by resolution, authorize township officers and131
employees to incur obligations of seventwo thousand five hundred132
fifty dollars or less on behalf of the township, or it may133
authorize, by resolution, the township administrator to so134
authorize township officers and employees. The obligations135
incurred on behalf of the township by a township officer or136
employee acting pursuant to any such resolution shall be137
subsequently approved by the adoption of a formal resolution of138
the board of township trustees.139

       (B) No money belonging to the township shall be paid out,140
except upon an order sign personallysigned by at least two of the141
township trustees, and countersigned by the township clerk.142

       Sec. 517.15. The(A) A board of township trustees may143
receive by gift, devise, bequest, or otherwise, any money,144
securities, or other property, in trust, as a permanent fund to be145
held and invested by the board and its successors in office, the146
income therefrom to be used and expended under its direction, in147
create a permanent cemetery endowment fund for the purpose of148
maintaining, improving, and beautifying township cemeteries and149
burial lots in township cemeteries. The fund shall consist of150
money arising from the following sources:151

       (1) Gifts, devises, or bequests received for the purpose of152
maintaining, improving, or beautifying township cemeteries;153

       (2) Charges added to the price regularly charged for burial154
lots for the purpose of maintaining, improving, or beautifying155
township cemeteries;156

       (3) Contributions of money from the township general fund;157

       (4) An individual agreement with the purchaser of a burial158
lot providing that a part of the purchase price is to be applied159
to the purpose of maintaining, improving, or beautifying any160
burial lot designated and named by the purchaser;161

       (5) Individual gifts, devises, or bequests made for the care162
maintenance, improvement, and beautifyingbeautification of any163
burial lot designated and named by the person making suchthe164
gift, devise, or bequest, in any township cemetery over which such165
board has jurisdiction.166

       (B) The board shall invest money in the permanent cemetery167
endowment fund in interest-bearing securities. Income from the168
investment of money in the fund shall be free from taxation within169
this state.170

       Separate accounts shall be established in the fund, one for171
money arising from the sources described in divisions (A)(1), (2),172
and (3) of this section and at least one for money arising from173
each of the sources described in divisions (A)(4) and (5) of this174
section. The principal of the account established for money175
arising from the sources described in divisions (A)(1), (2), and176
(3) of this section shall be held permanently in that account, and177
only the income from the investment of the principal shall be178
expended for the purpose for which the account is created and for179
any expense of managing the account. The principal of money180
arising from a source described in division (A)(4) or (5) of this181
section and the income arising from the investment of that182
principal shall be held in trust, and the income shall be expended183
only for the maintenance, improvement, or beautification of the184
designated burial lot and for expenses incurred in managing the185
applicable account. Money in an account established for a source186
described in division (A)(4) or (5) of this section may be187
invested with money in other accounts of the fund, but the income188
arising from that investment shall be apportioned among the189
separate accounts on a pro rata basis according to the sum190
invested from each account.191

       (C) The township clerk shall keep an accurate and separate192
account of the permanent cemetery endowment fund and each of the193
accounts in the fund, the income from the investment of money in194
those accounts, and all disbursements from those accounts. The195
clerk's account shall be open to inspection at all reasonable196
times and shall be approved by the board at each annual meeting.197
All moneys and securities in the fund shall remain in the custody198
of the clerk and the clerk's successors in office, and the clerk199
and the clerk's sureties shall be liable upon the official bond200
for their safekeeping and proper accounting, as for other moneys,201
securities, and property in the clerk's possession and belonging202
to the township. For any purpose connected with money held in203
trust in the fund, the board and its successors may commence any204
action in court, or make any defense in an action in court,205
necessary to the execution of the trust.206

       Sec. 5571.14. Whenever any fence(A) A board of township207
trustees or township highway superintendent may determine that an208
object bounding any public highway, and located wholly or in part209
on the land belonging to suchthe highway, in any way interferes210
with snow or ice removal from, the maintenance of, or the proper211
grading, draining, or dragging of suchthe highway, or causes the212
drifting of snow on the highway, or in any other manner obstructs213
or endangers the public travel of suchthe highway, the. The214
board of township trusteesor superintendent then may declare such215
fencethe object to be a public nuisance and order the owner,216
agent, or occupant of the landsland on or bordering upon which217
such fencethe object is maintained, to remove it from such218
highway within thirty days. If suchthat person refuses or219
neglects to comply with theirthe order, the board or220
superintendent shall have the fenceobject removed, and the. The221
expense incurred in that removal shall be certified to the county222
auditor and entered on the tax duplicate against suchthat land,223
to be collected in the same manner as other taxes.224

       (B)(1) The authority granted in this section is in addition225
to the authority granted in section 5543.14 of the Revised Code to226
remove vegetation and the authority granted in section 5547.03 of227
the Revised Code to remove objects or structures constituting228
highway obstructions.229

        (2) The authority granted in this section applies to land230
belonging to a highway whether owned in fee simple or by easement.231

       (3) Objects that may be declared to be a public nuisance232
under this section include a fence, post, pole, athletic or233
recreational apparatus, rock, or berm, any vegetation, or any234
other object identified by the board or superintendent as235
interfering with or obstructing the highway under division (A) of236
this section.237

       (C) The authority granted in this section does not apply to238
an object that is lawfully entitled to be maintained on land239
belonging to a highway pursuant to a franchise or other grant of240
public authority.241

       Sec. 5705.13.  (A) A taxing authority of a subdivision, by242
resolution or ordinance, may establish a reserve balance account243
accounts to accumulate currently available resources for any of244
the following purposes:245

       (1) To stabilize subdivision budgets against cyclical246
changes in revenues and expenditures;247

       (2) Except as otherwise provided by this section, to provide248
for the payment of claims under a self-insurance program for the249
subdivision, if the subdivision is permitted by law to establish250
such a program;251

       (3) To provide for the payment of claims under a252
retrospective ratings plan for workers' compensation.253

       The ordinance or resolution establishing a reserve balance254
account shall state the purpose for which the reserve balance255
account is established, the fund in which the account is to be256
established, and the total amount of money to be reserved in the257
account.258

       A subdivision that participates in a risk-sharing pool, by259
which governments pool risks and funds and share in the costs of260
losses, shall not establish a reserve balance account to provide261
self-insurance for the subdivision.262

       A taxing authority of a subdivision shall not have more than263
three reserve balance accounts at any time. Not more than one264
reserve balance account may be established for each of the265
purposes permitted under divisions (A)(2) and (3) of this section.266
Money to the credit of a reserve balance account may be expended267
only for the purpose for which the account was established.268

       A reserve balance account established for the purpose269
described in division (A)(1) of this section shallmay be270
established in the general fund or in one or more special funds of271
the subdivision, and the. The amount of money to be reserved in272
thatsuch an account in any fiscal year shall not exceed five per273
cent of the general fund revenue forcredited in the preceding274
fiscal year to the fund in which the account is established.275
Subject to division (G) of section 5705.29 of the Revised Code,276
any reserve balance in an account established under division277
(A)(1) of this section shall not be considered part of the278
unencumbered balance or revenue of the subdivision under division279
(A) of section 5705.35 or division (A)(1) of section 5705.36 of280
the Revised Code.281

       At any time, a taxing authority of a subdivision, by282
resolution or ordinance, may reduce or eliminate the reserve283
balance in a reserve balance account established for the purpose284
described in division (A)(1) of this section.285

       A reserve balance account established for the purpose286
described in division (A)(2) or (3) of this section shall be287
established in the general fund of the subdivision or by the288
establishment of a separate internal service fund established to289
account for the operation of the self-insurance or retrospective290
ratings plan program, and shall be based on sound actuarial291
principles. The total amount of money in a reserve balance292
account for self-insurance may be expressed in dollars or as the293
amount determined to represent an adequate reserve according to294
sound actuarial principles.295

       A taxing authority of a subdivision, by resolution or296
ordinance, may rescind a reserve balance account established under297
this division. If a reserve balance account is rescinded, money298
that has accumulated in the account shall be transferred to the299
fund or funds from which the money originally was transferred.300

       (B) A taxing authority of a subdivision, by resolution or301
ordinance, may establish a special revenue fund for the purpose of302
accumulating resources for the payment of accumulated sick leave303
and vacation leave, and for payments in lieu of taking304
compensatory time off, upon the termination of employment or the305
retirement of officers and employees of the subdivision. The306
special revenue fund may also accumulate resources for payment of307
salaries during any fiscal year when the number of pay periods308
exceeds the usual and customary number of pay periods.309
Notwithstanding sections 5705.14, 5705.15, and 5705.16 of the310
Revised Code, the taxing authority, by resolution or ordinance,311
may transfer money to the special revenue fund from any other fund312
of the subdivision from which such payments may lawfully be made.313
The taxing authority, by resolution or ordinance, may rescind a314
special revenue fund established under this division. If a315
special revenue fund is rescinded, money that has accumulated in316
the fund shall be transferred to the fund or funds from which the317
money originally was transferred.318

       (C) A taxing authority of a subdivision, by resolution or319
ordinance, may establish a capital projects fund for the purpose320
of accumulating resources for the acquisition, construction, or321
improvement of fixed assets of the subdivision. For the purposes322
of this section, "fixed assets" includes motor vehicles. More323
than one capital projects fund may be established and may exist at324
any time. The ordinance or resolution shall identify the source325
of the money to be used to acquire, construct, or improve the326
fixed assets identified in the resolution or ordinance, the amount327
of money to be accumulated for that purpose, the period of time328
over which that amount is to be accumulated, and the fixed assets329
that the taxing authority intends to acquire, construct, or330
improve with the money to be accumulated in the fund.331

       A taxing authority of a subdivision shall not accumulate332
money in a capital projects fund for more than five years after333
the resolution or ordinance establishing the fund is adopted. If334
the subdivision has not entered into a contract for the335
acquisition, construction, or improvement of fixed assets for336
which money was accumulated in such a fund before the end of that337
five-year period, the fiscal officer of the subdivision shall338
transfer all money in the fund to the fund or funds from which339
that money originally was transferred or the fund that originally340
was intended to receive the money.341

       A taxing authority of a subdivision, by resolution or342
ordinance, may rescind a capital projects fund. If a capital343
projects fund is rescinded, money that has accumulated in the fund344
shall be transferred to the fund or funds from which the money345
originally was transferred.346

       Notwithstanding sections 5705.14, 5705.15, and 5705.16 of the347
Revised Code, the taxing authority of a subdivision, by resolution348
or ordinance, may transfer money to the capital projects fund from349
any other fund of the subdivision that may lawfully be used for350
the purpose of acquiring, constructing, or improving the fixed351
assets identified in the resolution or ordinance.352

       Section 2. That existing sections 505.10, 507.11, 517.15,353
5571.14, and 5705.13 and sections 517.16, 517.17, and 517.18 of354
the Revised Code are hereby repealed.355