As Passed by the Senate

125th General Assembly
Regular Session
2003-2004
Sub. S. B. No. 55


Senators Randy Gardner, Stivers, Miller, Mumper, Schuler, Prentiss, Mallory, Austria, Carey, Dann, Herington, Fedor, Coughlin, Hagan, Harris, Spada 



A BILL
To amend sections 9.833, 3375.40, 3375.41, and 1
5705.281 and to enact section 3375.392 of the 2
Revised Code to make changes to the law 3
authorizing political subdivisions to self-insure 4
for health care benefits; to revise the bidding 5
threshold for public improvements applicable to 6
free public libraries; to eliminate restrictions 7
on group life insurance coverage offered by free 8
public libraries to their employees; to allow a 9
board of library trustees to authorize its 10
employees to use a credit card held by the library 11
to pay for library business expenses; and to allow 12
the county budget commission to waive certain 13
requirements relating to tax budgets or estimates 14
of contemplated revenue and expenditures in any 15
county in which a single library receives all of 16
the county library and local government support 17
fund or receives all of that portion of the fund 18
that is distributed to libraries.19


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

       Section 1. That sections 9.833, 3375.40, 3375.41, and 20
5705.281 be amended and section 3375.392 of the Revised Code be 21
enacted to read as follows:22

       Sec. 9.833.  (A) As used in this section, "political23
subdivision" means a municipal corporation, township, county,24
school district, or other body corporate and politic responsible25
for governmental activities in a geographic area smaller than that 26
of the state.27

       (B) Political subdivisions that provide health care benefits 28
for their officers or employees may do any of the following:29

       (1) Establish and maintain an individual self-insurance30
program with public moneys to provide authorized health care31
benefits, including but not limited to, health care, prescription 32
drugs, dental care, and vision care, in accordance with division 33
(C) of this section;34

       (2) After establishing an individual self-insurance program, 35
agree with other political subdivisions that have established 36
individual self-insurance programs for health care benefits, that 37
their programs will be jointly administered in a manner specified 38
in the agreement;39

       (3) Pursuant to a written agreement and in accordance with40
division (C) of this section, join in any combination with other41
political subdivisions to establish and maintain a joint42
self-insurance program to provide health care benefits;43

       (4) Pursuant to a written agreement, join in any combination 44
with other political subdivisions to procure or contract for 45
policies, contracts, or plans of insurance to provide health care 46
benefits for their officers and employees subject to the 47
agreement;48

       (5) Use in any combination any of the policies, contracts,49
plans, or programs authorized under this division.50

       (C) Except as otherwise provided in division (D)(E) of this51
section, the following apply to individual or joint self-insurance 52
programs established pursuant to this section:53

       (1) Such funds shall be reserved as are necessary, in the54
exercise of sound and prudent actuarial judgment, to cover55
potential cost of health care benefits for the officers and56
employees of the political subdivision. A report of amounts so57
reserved and disbursements made from such funds, together with a58
written report of a member of the American academy of actuaries59
certifying whether the amounts reserved conform to the60
requirements of this division, are computed in accordance with61
accepted loss reserving standards, and are fairly stated in62
accordance with sound loss reserving principles, shall be prepared 63
and maintained, within ninety days after the last day of the 64
fiscal year of the entity for which the report is provided for 65
that fiscal year, in the office of the program administrator66
described in division (C)(3) of this section.67

       The report required by division (C)(1) of this section shall 68
include, but not be limited to, disbursements made for the69
administration of the pool, including claims paid, costs of the70
legal representation of political subdivisions and employees, and71
fees paid to consultants.72

       The program administrator described in division (C)(3) of73
this section shall make the report required by this division74
available for inspection by any person at all reasonable times75
during regular business hours, and, upon the request of such76
person, shall make copies of the report available at cost within a 77
reasonable period of time.78

       (2) Each political subdivision shall reserve funds necessary 79
for an individual or joint self-insurance program in a special 80
fund that may be established pursuant to an ordinance or81
resolution of the political subdivision and not subject to section 82
5705.12 of the Revised Code. The political subdivision may 83
allocate the costs of insurance or any self-insurance program, or 84
both, among the funds or accounts in the subdivision's treasury on 85
the basis of relative exposure and loss experience.86

       (3) A contract may be awarded, without the necessity of87
competitive bidding, to any person, political subdivision,88
nonprofit corporation organized under Chapter 1702. of the Revised 89
Code, or regional council of governments created under Chapter 90
167. of the Revised Code for purposes of administration of an 91
individual or joint self-insurance program. No such contract shall 92
be entered into without full, prior, public disclosure of all 93
terms and conditions. SuchThe disclosure shall include, at a 94
minimum, a statement listing all representations made in 95
connection with any possible savings and losses resulting from 96
suchthe contract, and potential liability of any political97
subdivision or employee. The proposed contract and statement shall 98
be disclosed and presented at a meeting of the political99
subdivision not less than one week prior to the meeting at which100
the political subdivision authorizes the contract.101

       A contract awarded to a nonprofit corporation or a regional 102
council of governments under this division may provide that all 103
employees of the nonprofit corporation or regional council of 104
governments and the employees of all entities related to the 105
nonprofit corporation or regional council of governments may be 106
covered by the individual or joint self-insurance program under 107
the terms and conditions set forth in the contract.108

       (4) The individual or joint self-insurance program shall109
include a contract with a member of the American academy of110
actuaries for the preparation of the written evaluation of the111
reserve funds required under division (C)(1) of this section.112

       (5) A joint self-insurance program may allocate the costs of 113
funding the program among the funds or accounts in the treasuries 114
of the participating political subdivisions on the basis of their 115
relative exposure and loss experience.116

       (6) An individual self-insurance program may allocate the 117
costs of funding the program among the funds or accounts in the 118
treasury of the political subdivision that established the 119
program.120

       (7) Two or more political subdivisions may also authorize the 121
establishment and maintenance of a joint health care cost122
containment program, including, but not limited to, the employment123
of risk managers, health care cost containment specialists, and124
consultants, for the purpose of preventing and reducing health125
care costs covered by insurance, individual self-insurance, or 126
joint self-insurance programs.127

       (8) A political subdivision is not liable under a joint128
self-insurance program for any amount in excess of amounts payable 129
pursuant to the written agreement for the participation of the 130
political subdivision in the joint self-insurance program. Under a 131
joint self-insurance program agreement, a political subdivision 132
may, to the extent permitted under the written agreement, assume 133
the risks of any other political subdivision. A joint 134
self-insurance program established under this section is deemed a 135
separate legal entity for the public purpose of enabling the 136
members of the joint self-insurance program to obtain insurance or 137
to provide for a formalized, jointly administered self-insurance 138
fund for its members. An entity created pursuant to this section 139
is exempt from all state and local taxes.140

       (9) Any political subdivision may issue general obligation141
bonds, or special obligation bonds whichthat are not payable from142
real or personal property taxes, and may also issue notes in143
anticipation of such bonds, pursuant to an ordinance or resolution 144
of its legislative authority or other governing body for the 145
purpose of providing funds to pay expenses associated with the 146
settlement of claims, whether by way of a reserve or otherwise, 147
and to pay the political subdivision's portion of the cost of 148
establishing and maintaining an individual or joint self-insurance 149
program or to provide for the reserve in the special fund 150
authorized by division (C)(2) of this section.151

       In its ordinance or resolution authorizing bonds or notes152
under this section, a political subdivision may elect to issue153
such bonds or notes under the procedures set forth in Chapter 133. 154
of the Revised Code. In the event of such an election,155
notwithstanding Chapter 133. of the Revised Code, the maturity of156
the bonds may be for any period authorized in the ordinance or157
resolution not exceeding twenty years, which period shall be the158
maximum maturity of the bonds for purposes of section 133.22 of159
the Revised Code.160

       Bonds and notes issued under this section shall not be161
considered in calculating the net indebtedness of the political162
subdivision under sections 133.04, 133.05, 133.06, and 133.07 of163
the Revised Code. Sections 9.98 to 9.983 of the Revised Code are164
hereby made applicable to bonds or notes authorized under this165
section.166

       (10) A joint self-insurance program is not an insurance167
company. Its operation does not constitute doing an insurance168
business and is not subject to the insurance laws of this state.169

       (D) A political subdivision may procure group life insurance 170
for its employees in conjunction with an individual or joint 171
self-insurance program authorized by this section, provided that 172
the policy of group life insurance is not self-insured.173

       (E) Divisions (C)(1), (2), and (4) of this section do not174
apply to individual self-insurance programs in municipal175
corporations, townships, or counties.176

       Sec. 3375.392. (A) A board of library trustees appointed 177
pursuant to section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22, 178
or 3375.30 of the Revised Code may authorize an officer, employee, 179
or appointee of the free public library under its jurisdiction to 180
use a credit card that the library holds to pay for expenses 181
related to library business. The debt incurred as a result of the 182
use of the credit card shall be paid from library funds.183

        (B) Misuse of a credit card of a free public library by an 184
officer, employee, or appointee of the library is subject to 185
section 2913.21 of the Revised Code. The officer, employee, or 186
appointee also may be found personally liable to the library in a 187
civil action for the officer's, employee's, or appointee's misuse 188
of the library's credit card.189

        (C) Any officer, employee, or appointee of a free public 190
library who is authorized to use a credit card that the library 191
holds and who suspects the loss, the theft, or another person's 192
possible unauthorized use of the credit card shall notify the 193
board of library trustees immediately in writing of the suspected 194
loss, theft, or possible unauthorized use. The officer, employee, 195
or appointee may be held personally liable to the library for any 196
unauthorized debt resulting from the credit card's loss, theft, or 197
unauthorized use in the amount of fifty dollars or the amount 198
charged to the credit card as a result of the loss, theft, or 199
unauthorized use, whichever is less.200

       Sec. 3375.40.  Each board of library trustees appointed201
pursuant to sectionssection 3375.06, 3375.10, 3375.12, 3375.15, 202
3375.22, andor 3375.30 of the Revised Code may do the following:203

       (A) Hold title to and have the custody of all real and204
personal property of the free public library under its205
jurisdiction;206

       (B) Expend for library purposes, and in the exercise of the 207
power enumerated in this section, all moneys, whether derived from 208
the county library and local government support fund or otherwise, 209
credited to the free public library under its jurisdiction and 210
generally do all things it considers necessary for the 211
establishment, maintenance, and improvement of the free public212
library under its jurisdiction;213

       (C) Purchase, lease, construct, remodel, renovate, or214
otherwise improve, equip, and furnish buildings or parts of215
buildings and other real property, and purchase, lease, or 216
otherwise acquire motor vehicles and other personal property, 217
necessary for the proper maintenance and operation of the free 218
public librarieslibrary under its jurisdiction, and pay thetheir219
costs thereof in installments or otherwise. Financing of these 220
costs may be provided through the issuance of notes, through an 221
installment sale, or through a lease-purchase agreement. Any such222
notes shall be issued pursuant to section 3375.404 of the Revised 223
Code.224

       (D) Purchase, lease, lease with an option to purchase, or225
erect buildings or parts of buildings to be used as main226
libraries, branch libraries, or library stations pursuant to227
section 3375.41 of the Revised Code;228

       (E) Establish and maintain a main library, branches, library 229
stations, and traveling library service within the territorial 230
boundaries of the political subdivision or district over which it 231
has jurisdiction of free public library service;232

       (F) EstablishExcept as otherwise provided in this division, 233
establish and maintain branches, library stations, and traveling 234
library service in any school district, outside the territorial 235
boundaries of the political subdivision or district over which it 236
has jurisdiction of free public library service, upon application 237
to and approval of the state library board, pursuant to section 238
3375.05 of the Revised Code; provided the. The board of library239
trustees of any free public library maintaining branches,240
stations, or traveling-booktraveling library service, outside the 241
territorial boundaries of the political subdivision or district 242
over which it has jurisdiction of free public library service, on 243
September 4, 1947, may continue to maintain and operate suchthose244
branches, those stations, and that traveling library service 245
without the approval of the state library board;.246

       (G) Appoint and fix the compensation of all of the employees 247
of the free public library under its jurisdiction;, pay the 248
reasonable cost of tuition for any of its employees who enroll in 249
a course of study the board considers essential to the duties of 250
the employee or to the improvement of the employee's performance;,251
and reimburse applicants for employment for any reasonable 252
expenses they incur by appearing for a personal interview;253

       (H) Make and publish rules for the proper operation and254
management of the free public library and facilities under its 255
jurisdiction, including rules pertaining to the provision of 256
library services to individuals, corporations, or institutions 257
that are not inhabitants of the county;258

       (I) Establish and maintain a museum in connection with and as 259
an adjunct to the free public library under its jurisdiction;260

       (J) By the adoption of a resolution, accept any bequest,261
gift, or endowment upon the conditions connected with suchthe262
bequest, gift, or endowment; provided no. No such bequest, gift, 263
or endowment shall be accepted by suchthe board if theits264
conditions thereof remove any portion of the free public library 265
under itsthe board's jurisdiction from the control of suchthe266
board or if suchthe conditions, in any manner, limit the free use 267
of suchthe library or any part thereofof it by the residents of 268
the counties in which suchthe library is located;.269

       (K) At the end of any fiscal year, by a two-thirds vote of270
its full membership, set aside any unencumbered surplus remaining271
in the general fund of the free public library under its 272
jurisdiction for any purpose, including creating or increasing a 273
special building and repair fund, or for operating the library or 274
acquiring equipment and supplies;275

       (L) Procure and pay all or part of the cost of group life,276
hospitalization, surgical, major medical, disability benefit,277
dental care, eye care, hearing aids, or prescription drug278
insurance or coverage, or a combination of any of the foregoing279
those types of insurance or coverage, whether issued by an 280
insurance company or a health insuring corporation duly licensed 281
by the state, covering its employees, and, in the case of group 282
life, hospitalization, surgical, major medical, dental care, eye 283
care, hearing aids, or prescription drug insurance or coverage, 284
also covering the dependents and spouses of suchits employees, 285
and, in the case of disability benefits, also covering the spouses 286
of suchits employees. With respect to life insurance, coverage 287
for any employee shall not exceed the greater of the sum of ten 288
thousand dollars or the annual salary of the employee, exclusive 289
of any double indemnity clause that is a part of the policy.290

       (M) Pay reasonable dues and expenses for the free public 291
library and library trustees in library associations.292

       Any instrument by which real property is acquired pursuant to 293
this section shall identify the agency of the state that has the 294
use and benefit of the real property as specified in section 295
5301.012 of the Revised Code.296

       Sec. 3375.41.  When a board of library trustees appointed297
pursuant to sectionssection 3375.06, 3375.10, 3375.12, 3375.15, 298
3375.22, andor 3375.30 of the Revised Code determines to 299
construct, demolish, alter, repair, or reconstruct a library or 300
make any improvements or repairs, the cost of which will exceed301
fifteentwenty-five thousand dollars, except in cases of urgent 302
necessity or for the security and protection of library property, 303
it shall proceed as follows:304

       (A) The board shall advertise for a period of four weeks for 305
sealed bids in some newspaper of general circulation in the 306
district, and, if there are two such papersnewspapers, the board 307
shall advertise in both of them. If no newspaper has a general 308
circulation in the district, the board shall advertise by posting 309
suchpost the advertisement in three public places thereinin the 310
district. SuchThe advertisement shall be entered in full by the 311
clerk on the record of proceedings of the board.312

       (B) The sealed bids shall be filed with the clerk by twelve 313
noon of the last day stated in the advertisement.314

       (C) The sealed bids shall be opened at the next meeting of 315
the board, shall be publicly read by the clerk, and shall be 316
entered in full on the records of the board; provided, that the 317
board may, by resolution, may provide for the public opening and 318
reading of suchthe bids by the clerk, immediately after the time 319
for their filing such bids has expired, at the usual place of 320
meeting of the board, and for the tabulation of suchthe bids and 321
a report of suchthe tabulation to the board at its next meeting.322

       (D) Each sealed bid shall contain the name of every person323
interested therein,in it and shall meet the requirements of 324
section 153.54 of the Revised Code.325

       (E) When both labor and materials are embraced in the work326
bid for, the board may require that each be separately stated in327
the sealed bid, with thetheir price thereof, or may require that 328
bids be submitted without suchthe separation.329

       (F) None but the lowest responsible bid shall be accepted.330
The board may reject all the bids or accept any bid for both labor 331
and material for suchthe improvement or repair which is the332
lowest in the aggregate.333

       (G) The contract shall be between the board and the bidders. 334
The board shall pay the contract price for the work in cash at the 335
times and in the amounts as provided by sections 153.12, 153.13, 336
and 153.14 of the Revised Code.337

       (H) When two or more bids are equal, in whole or in part, and 338
are lower than any others, either may be accepted, but in no case 339
shall the work be divided between suchthese bidders.340

       (I) When there is reason to believe there is collusion or341
combination among the bidders, the bids of those concerned in such342
the collusion or combination shall be rejected.343

       Sec. 5705.281. (A) Notwithstanding section 5705.28 of the 344
Revised Code, the county budget commission, by an affirmative vote 345
of a majority of the commission, including an affirmative vote by 346
the county auditor, may waive the requirement that the taxing 347
authority of a subdivision or other taxing unit adopt a tax budget348
as provided under section 5705.28 of the Revised Code, but shall 349
require such a taxing authority to provide such information to the 350
commission as may be required by the commission to perform its351
duties under this chapter, including dividing the rates of each of352
the subdivision's or taxing unit's tax levies as provided under353
section 5705.04 of the Revised Code.354

       (B)(1) Notwithstanding divisions (B)(1) and (D) of section 355
5705.28 of the Revised Code, in any county in which a single 356
library receives all of the county library and local government 357
support fund or receives all of that portion of the fund that is 358
distributed to libraries, the county budget commission, by an 359
affirmative vote of a majority of the commission, including an 360
affirmative vote by the county auditor, may waive any or all of 361
the following requirements:362

        (a) The requirement that the board of trustees of a school 363
library district entitled to participate in any appropriation or 364
revenue of a school district or to have a tax proposed by the 365
board of education of a school district file with the board of 366
education of the school district a tax budget, and the requirement 367
that the board of education adopt the tax budget on behalf of the 368
library district, as provided in division (B)(1) of section 369
5705.28 of the Revised Code;370

        (b) The requirement that the board of trustees of a public 371
library desiring to participate in the distribution of the county 372
library and local government support fund certify to the taxing 373
authority its estimate of contemplated revenue and expenditures, 374
and the requirement that the taxing authority include in its 375
budget of receipts and budget of expenditures the full amounts 376
specified or requested by the board of trustees, as provided in 377
division (D) of section 5705.28 of the Revised Code.378

        (2) If a county budget commission waives the requirements 379
described in division (B)(1)(a) or (b) of this section, the 380
commission shall require the board of trustees of the school 381
library district or the board of trustees of the public library 382
desiring to participate in the distribution of the county library 383
and local government support fund to provide to the commission any 384
information the commission may require from the board in order for 385
the commission to perform its duties under this chapter.386

       Section 2. That existing sections 9.833, 3375.40, 3375.41, 387
and 5705.281 of the Revised Code are hereby repealed.388