As Reported by the House Municipal Government and Urban Revitalization Committee

125th General Assembly
Regular Session
2003-2004
Sub. H. B. No. 256


REPRESENTATIVES Setzer, Fessler, McGregor, Allen, Seaver, Seitz, Sferra, Wolpert, Willamowski



A BILL
To amend sections 709.45 to 709.48 and to enact 1
sections 709.461 and 709.462 of the Revised Code 2
to revise the Merger Law.3


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

       Section 1. That sections 709.45, 709.46, 709.47, and 709.48 4
be amended and sections 709.461 and 709.462 of the Revised Code be5
enacted to read as follows:6

       Sec. 709.45. (A) A petition may be filed with the board of7
elections proposing that one or more municipal corporations be8
merged with another municipal corporation, or that the9
unincorporated area of a township be merged with one or more10
municipal corporations, as provided by section 709.44 of the11
Revised Code. SuchThe petition may be presented in separate12
petition papers. Each such petition paper shall contain, in13
concise language, the purpose of the petition and the names of not14
less than five electors of each suchaffected municipal15
corporation, or the names of not less than five electors of the16
unincorporated area of suchthe township and the names of not less17
than five electors of each affected municipal corporation, to be 18
nominated to serve as commissioners. The petition shall be 19
governed by the rules of section 3501.38 of the Revised Code. Such20
The petition shall contain signatures of electors of each 21
municipal corporation or of each municipal corporation and the 22
unincorporated area of the township proposed to be merged and23
signatures of electors of the municipal corporation with which24
merger is proposed, numbering not less than ten per cent of the25
number of electors residing in each such political subdivision who26
voted for the office of governor at the most recent general27
election for suchthat office. Such28

       (B) The petition shall be filed with the board of elections29
of the county in which the largest portion of the population of30
the municipal corporation with which merger is proposed resides.31
SuchThe board of elections shall cause the validity of all32
signatures to be ascertained and, in doing so, may require the33
assistance of boards of elections of other counties as the case34
requires. If the petition is sufficient, the board of elections of 35
the county in which the petition is required to be filed shall36
submit the question: "Shall a commission be chosen to draw up a37
statement of conditions for merger of the political subdivisions38
of ........., ..........., and ...........?" for the approval or39
rejection of the electors of each political subdivision proposed40
to be merged and the electors of the municipal corporation to41
which merger is proposed at the next general election, in any42
year, occurring subsequent to the period ending seventy-five days43
after the filing of such petitionsthe petition with the board.44
Provision shall be made on the ballot for the election, from each45
of the component political subdivisions, of five electors who46
shall constitute the commission to draw up the statement of47
conditions for merger of the political subdivisions. If any of the 48
political subdivisions for which merger is proposed are located 49
wholly or partially in a county other than the one in which the 50
petition is required to be filed, the board of elections of the 51
county in which suchthe petition is filed shall, if the petition 52
is found to be sufficient, certify the sufficiency of suchthe53
petition and the statement of the issue to be voted on to the 54
boards of elections of suchthose other counties,; the boards of 55
elections of suchthose other counties shall submit the question 56
of merging and the names of candidates to be elected to the 57
commission to draw up the statement of conditions for merger, for58
the approval or rejection of the electors in the portions of such59
those political subdivisions within their respective counties,;60
and, upon the holding of suchthe election, the boards of61
elections of those other counties shall certify the result thereof62
election results to the board of elections of the county in which63
the petition is required to be filed.64

       (C) In addition to the filing of the petition with the board65
of elections as provided in division (B) of this section, a copy66
of the petition shall be filed with the legislative authority of67
each affected municipal corporation and, if applicable, the board68
of township trustees of the affected township. At a public meeting 69
scheduled not less than thirty days before the date of the 70
election at which the question of merging goes before the 71
electors, each of those legislative authorities and, if 72
applicable, the board of township trustees shall state and explain 73
their position on the proposed merger.74

       Sec. 709.46. (A) If the question of merging one or more75
municipal corporations and the unincorporated territoryarea of a76
township, as provided in section 709.45 of the Revised Code, is77
disapproved by a majority of those voting on it in the township or78
a municipal corporation proposed to be merged or in the municipal79
corporation with which merger is proposed, no further petitions80
shall be filed under that section proposing the same merger for at81
least three years after the date of suchthat disapproval. If82

       If the question of merging as provided in section 709.45 of83
the Revised Code is approved by a majority of those voting on it84
in each political subdivision proposed to be merged and in the85
municipal corporation with which merger is proposed, the five86
candidates from each suchof those political subdivision87
subdivisions shall be elected to the commission to formulate the88
conditions of merging the political subdivisions. The first89
meeting of suchthe commission shall be held in the chamber of the90
legislative authority of the municipal corporation whichthat has91
the smallest population, or, in the case of a merger of the92
unincorporated area of a township and one or more municipal93
corporations, in the office of the board of township trustees, at94
nine a.m. on the tenth day after the certification of the election95
by the last of the respective boards of elections to make such96
that certification, unless suchthat day is a Saturday, Sunday, or97
holiday, in which case suchthe first meeting shall be held on the98
next day thereafter which is not a Saturday, Sunday, or holiday.99
The100

       The clerk of the municipal legislative authority or of the101
board of township trustees in whose chamber or office the first102
meeting of the commission is held shall serve as temporary103
chairmanchairperson until permanent officers are elected. The104
commission shall elect its own permanent officers and shall105
proceed to meet as often as necessary to formulate conditions for106
merger that are satisfactory to a majority of the members of such107
the commission from each political subdivision.108

       (B) In case of a vacancy on the commission, the vacancy shall 109
be filled by an appointee of the legislative authority of the 110
municipal corporation, or the board of township trustees of the 111
township, that the prior commissioner represented. The person112
appointed to fill the vacancy shall be an elector of that113
political subdivision and, if the person is representing a114
township, shall reside in the unincorporated area of that115
township.116

        (C) The costs of the commission shall be divided among the117
participating political subdivisions in proportion to the118
population that each participating political subdivision bears to119
the total population of the territory proposed to be merged. For120
these purposes, a township's population shall be based solely upon121
the population of the unincorporated area of the township proposed122
to be merged. It shall be a proper public purpose for a municipal123
corporation or township to expend general fund moneys for these124
payments.125

        (D) All meetings of a mergerthe commission shall be subject 126
to the requirements of section 121.22 of the Revised Code.127

       The conditions of merger may provide for the election, prior128
to the merger, of new officers to govern the municipal corporation129
with which merger is proposed after the merger is complete,130
provided that such a provision does not conflict with the charter131
of the municipal corporation with which merger is proposed. If132
more than one municipal corporation is to be included in the133
merger, the conditions of merger shall designate one of the134
municipal corporations as the municipal corporation into which the135
township and any other municipal corporations involved are being136
merged. The conditions of merger may also provide that the137
municipal corporation into which the other political subdivisions138
are to be merged shall amend its existing charter to include139
specified provisions and may state that the merger, if approved,140
shall not become effective until the date on which that municipal141
charter includes the required provisions. In the case of a merger142
of a township with a single municipal corporation, the merger143
conditions may also provide for the annexation of a school144
district located wholly within the township to the school district145
of the municipal corporation. As soon as the conditions have been146
agreed upon by a majority of the members of the commission from147
each political subdivision, this fact shall be reported to the148
board of elections of each of the counties in which the political149
subdivisions proposed for merger are located and the question150
shall be submitted to the voters at the next general election151
occurring after the commission is elected. Regardless of whether a 152
merger commission of a township and a municipal corporation153
succeeds in reaching agreement, the commission shall cease to154
exist on the seventy-fifth day prior to the next general election155
after the commission is elected. The boards of elections shall156
submit the conditions of proposed merger for the approval or157
rejection of the electors in the portions of such political158
subdivisions within their respective counties and, upon the159
holding of such election, shall certify the results thereof to the160
board of elections of the county in which the petition is required161
to be filed.162

       Sec. 709.461. (A) In formulating the proposed merger163
conditions, the commission shall attempt to work in a164
collaborative process that results in a consensus of its members165
as to the best proposal for all of the political subdivisions166
involved. To this end, the commission shall adopt rules for the167
orderly operation of commission meetings that permit all168
commission members to be coleaders, as appropriate, so that169
overall no one member has more authority than any of the other170
members in determining the proposed conditions. These rules may171
create a framework for building agreement among the members to172
adopt proposed conditions. The commission also shall seek the173
advice of both public and private sources to help the commission174
fully study the merger situation so that appropriate conditions175
are drafted. If funding permits, the commission may contract with176
a dispute resolution expert to help make the process more177
collaborative. 178

       (B) When a merger proposal includes the unincorporated area179
of a township, the commission shall consider, among the other 180
issues it considers before adopting its proposed merger 181
conditions, both the increase and decrease of funding sources due182
to the unincorporated township territory becoming incorporated183
territory.184

       (C) The proposed merger conditions may provide for the185
election, prior to the merger, of new officers to govern the186
municipal corporation with which merger is proposed after the187
merger is complete, provided that the provision does not conflict188
with the charter of the municipal corporation with which merger is189
proposed. If more than one municipal corporation is to be included190
in the merger, the proposed conditions shall designate one of the191
municipal corporations as the municipal corporation into which the192
township and any other municipal corporations involved are being193
merged. The proposed conditions also may provide that the194
municipal corporation into which the other political subdivisions195
are to be merged shall amend its existing charter to include196
specified provisions and may state that the merger, if approved,197
shall not become effective until the date on which that municipal198
charter includes the required provisions. In the case of a merger199
of a township with a single municipal corporation, the merger200
conditions also may provide for the annexation of a school201
district located wholly within the township to the school district202
of the municipal corporation.203

       Sec. 709.462. (A) Once proposed merger conditions are204
prepared, the members of the commission shall vote on them.205

       (B) If no proposed merger condition can be agreed upon by a206
majority of the members of the commission from each political207
subdivision, the members of the commission may vote on whether the208
merger should not occur. If, in that situation, a majority of the209
members of the commission from each political subdivision votes210
against the merger, no further proceedings shall be had on the211
petition filed under section 709.45 of the Revised Code, and no 212
further petitions shall be filed under that section proposing a 213
merger of any or all of the political subdivisions that were the 214
subjects of that petition for at least three years after the date 215
of the commission's vote.216

       (C) If proposed merger conditions are agreed upon by a217
majority of the members of the commission from each political218
subdivision, the commission shall issue a report listing the219
conditions agreed to and the reasoning behind adopting each220
condition. In addition, after the next general election occurring221
after the election of the members of the commission, but not less 222
than seventy-five days preceding the second general election 223
occurring after the election of the members of the commission, the 224
commission, unless it has ceased to exist under division (D) of 225
this section, shall certify the fact of that agreement and a list 226
of the agreed-to merger conditions to the board of elections of 227
each of the counties in which the political subdivisions proposed 228
for merger are located. The question of the approval or rejection 229
of the merger conditions shall be submitted to the voters at that 230
second general election occurring after the election of the 231
members of the commission. The boards of elections shall submit 232
the merger conditions for the approval or rejection of the 233
electors in the portions of the political subdivisions within 234
their respective counties, and, upon the holding of the election, 235
each board of elections other than the board of the county in 236
which the petition is required to be filed shall certify its237
results to the board of elections of the county in which the238
petition is required to be filed.239

       (D) Regardless of whether a merger commission succeeds in240
reaching an agreement, the commission shall cease to exist on the241
seventy-fifth day preceding the next general election occurring242
after the election of the members of the commission, unless the 243
commission requests an extension of time from the legislative 244
authority of each political subdivision involved and each of those 245
legislative authorities approves the extension. This extension of 246
time may be only until the seventy-fifth day preceding the second 247
general election occurring after the election of the members of 248
the commission. If the commission ceases to exist under this 249
division, no further petitions shall be filed under section 709.45 250
of the Revised Code proposing a merger of any or all of the 251
political subdivisions that were the subjects of the petition 252
considered by the commission for at least three years after the 253
date the commission ceases to exist.254

       Sec. 709.47. (A) If themerger conditions of merger agreed255
upon by a merger commission of a township and one or more256
municipal corporations are disapproved by a majority of those257
voting on them in the township or a municipal corporation proposed258
to be merged or in the municipal corporation with which merger is259
proposed, no further petitions shall be filed under section 709.45260
of the Revised Code proposing the same merger of any of the 261
territory within that proposed merger for at least three years262
after the date of suchthat disapproval. If the263

       If merger conditions of merger are approved by a majority of264
those voting on them in each political subdivision proposed to be265
merged and in the municipal corporation with which merger is266
proposed, the merger is effective on the first day of January of267
the year following the certification of the results of the268
election by the board of elections with which the petition is269
required to be filed, unless the conditions specify a different270
date, in which case the date specified is the effective date of271
merger. On and after suchthe effective date, the territory of272
each political subdivision proposed to be merged is annexed to and273
included in the territory and corporate boundaries of the274
municipal corporation with which the merger is proposed. The form275
of government, ordinances, resolutions, and other rules of the276
municipal corporation with which merger is proposed apply277
throughout suchthe newly included territories to the extent they278
are not in conflict with the conditions approved by the electors.279
The charter, if any, of the municipal corporation with which280
merger is proposed applies throughout the newly included281
territories. The corporate existence and the offices of the282
municipal corporations or of the township proposed to be merged283
terminate on suchthat date. The284

       (B) The municipal corporation with which merger is proposed285
succeeds to the following interests of theeach political286
subdivision proposed to be merged in:287

       (A)(1) All moneys, taxes, and special assessments, whether288
suchthe moneys, taxes, or special assessments are in the289
treasury, or in the process of collection;290

       (B)(2) All property and interests in property, whether real291
or personal;292

       (C)(3) All rights and interests in contracts or in293
securities, bonds, notes, or other instruments;294

       (D)(4) All accounts receivable and rights of action;295

       (E)(5) All other matters not included in division (A),296
divisions (B), (C), or (D)(1) to (4) of this section.297

       (C) On and after suchthe merger's effective date, the298
municipal corporation with which merger is proposed is liable for299
all outstanding franchises, contracts, debts, and other legal300
claims, actions, and obligations of the political subdivision301
subdivisions proposed to be merged.302

       (D) When a merger proposal includes the unincorporated area 303
of a township, the board of county commissioners of the county in 304
which the unincorporated area is located and the legislative 305
authority of the municipal corporation with which merger is 306
proposed shall negotiate an agreement requiring the county to 307
continue providing within the unincorporated area for a determined 308
period of time after the merger's effective date the county 309
services it was providing within the unincorporated area on the 310
day prior to the merger's effective date. During the negotiation 311
process, each of the following shall occur:312

       (1) Before the merger's effective date, the board of county 313
commissioners and the legislative authority of the municipal 314
corporation shall each create a proposed transition plan that 315
addresses, among other potential issues for agreement between the 316
county and the municipal corporation, the following:317

        (a) The period of time the county will continue to provide 318
the county services to the unincorporated area and the date upon 319
which the municipal corporation will succeed to the county's 320
responsibility of providing those services;321

        (b) Payment by the municipal corporation to the county for 322
the continued provision of the county services to the 323
unincorporated area during that period of time.324

       (2) On the merger's effective date, the board of county 325
commissioners and the legislative authority of the municipal 326
corporation shall exchange their proposed transition plans.327

       (3) Within thirty days after the merger's effective date, the 328
board of county commissioners and the legislative authority of the 329
municipal corporation shall meet to discuss the proposed 330
transition plans and the creation of a compromise transition plan 331
that addresses, among other potential issues for agreement between 332
the county and municipal corporation, the issues listed in 333
division (D)(1) of this section.334

       (4) Within sixty days after the date of the meeting between 335
the board of county commissioners and the legislative authority of 336
the municipal corporation under division (D)(3) of this section, 337
the board and the legislative authority shall agree upon a 338
compromise transition plan.339

       Sec. 709.48.  On and after the date on which a petition is340
filed with the board of elections under section 709.45 of the341
Revised Code for the election of a merger commission for the342
merger of one or more municipal corporations and the 343
unincorporated territory of a township, no petition for the 344
annexation of any part of the unincorporated territory of the 345
township shall be filed with a board of county commissioners under 346
section 709.03 or 709.15 of the Revised Code, until one of the 347
following occurs:348

       (A) The question of forming a merger commission is defeated 349
at the election provided for under section 709.45 of the Revised 350
Code by a majority of the electors of any one of the municipal 351
corporations or the unincorporated territory of the township in 352
which the election is held.353

       (B) The merger commission elected pursuant to section 709.45 354
of the Revised Code fails to reach agreement on merger conditions355
of merger no later thanby the seventy-fifth day prior to356
preceding the next general election occurring after the election 357
of the members of the commission was electedor, if the time for 358
the commission's existence is extended under division (D) of 359
section 709.462 of the Revised Code, by the date that extension 360
ceases, whichever is later.361

       (C) The merger conditions of merger agreed upon by the merger362
commission are defeated by a majority of the electors of any one 363
of the municipal corporations or the unincorporated territory of 364
the township in which the election on the conditions is held.365

       Section 2. That existing sections 709.45, 709.46, 709.47, and 366
709.48 of the Revised Code are hereby repealed.367