REPRESENTATIVES Sferra, Widowfield, Schlichter, McGregor, Wolpert, Daniels, Collier, Chandler, Walcher, Skindell, Wagner, Domenick, C. Evans, Cirelli, Ujvagi, Olman, Price, Fessler

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

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free public libraries; to eliminate the monetary

7

restrictions on life insurance coverage offered by

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free public libraries to their employees while

9

limiting procurements to group term life

10

insurance; to allow a board of library trustees to

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authorize its employees to use a credit card held

12

by the library to pay for library business

13

expenses; and to allow the county budget

14

commission to waive certain requirements relating

15

to tax budgets or estimates of contemplated

16

revenue and expenditures in any county in which a

17

single library receives all of the county library

18

and local government support fund or receives all

19

of that portion of the fund that is distributed to

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libraries.

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

Section 1. That sections 9.833, 3375.40, 3375.41, and	22
5705.281 be amended and section 3375.392 of the Revised Code be	23
enacted to read as follows:	24

Sec. 9.833.  (A) As used in this section, "political	25
subdivision" means a municipal corporation, township, county,	26
school district, or other body corporate and politic responsible	27
for governmental activities in a geographic area smaller than that	28
of the state.	29

(B) Political subdivisions that provide health care benefits	30
for their officers or employees may do any of the following:	31

(1) Establish and maintain an individual self-insurance	32
program with public moneys to provide authorized health care	33
benefits, including but not limited to, health care, prescription	34
drugs, dental care, and vision care, in accordance with division	35
(C) of this section;	36

(2) After establishing an individual self-insurance program,	37
agree with other political subdivisions that have established	38
individual self-insurance programs for health care benefits, that	39
their programs will be jointly administered in a manner specified	40
in the agreement;	41

(3) Pursuant to a written agreement and in accordance with	42
division (C) of this section, join in any combination with other	43
political subdivisions to establish and maintain a joint	44
self-insurance program to provide health care benefits;	45

(4) Pursuant to a written agreement, join in any combination	46
with other political subdivisions to procure or contract for	47
policies, contracts, or plans of insurance to provide health care	48
benefits for their officers and employees subject to the	49
agreement;	50

(5) Use in any combination any of the policies, contracts,	51
plans, or programs authorized under this division.	52

(C) Except as otherwise provided in division (D)(E) of this	53
section, the following apply to individual or joint self-insurance	54
programs established pursuant to this section:	55

(1) Such funds shall be reserved as are necessary, in the	56
exercise of sound and prudent actuarial judgment, to cover	57
potential cost of health care benefits for the officers and	58
employees of the political subdivision. A report of amounts so	59
reserved and disbursements made from such funds, together with a	60
written report of a member of the American academy of actuaries	61
certifying whether the amounts reserved conform to the	62
requirements of this division, are computed in accordance with	63
accepted loss reserving standards, and are fairly stated in	64
accordance with sound loss reserving principles, shall be prepared	65
and maintained, within ninety days after the last day of the	66
fiscal year of the entity for which the report is provided for	67
that fiscal year, in the office of the program administrator	68
described in division (C)(3) of this section.	69

The report required by division (C)(1) of this section shall	70
include, but not be limited to, disbursements made for the	71
administration of the pool, including claims paid, costs of the	72
legal representation of political subdivisions and employees, and	73
fees paid to consultants.	74

The program administrator described in division (C)(3) of	75
this section shall make the report required by this division	76
available for inspection by any person at all reasonable times	77
during regular business hours, and, upon the request of such	78
person, shall make copies of the report available at cost within a	79
reasonable period of time.	80

(2) Each political subdivision shall reserve funds necessary	81
for an individual or joint self-insurance program in a special	82
fund that may be established pursuant to an ordinance or	83
resolution of the political subdivision and not subject to section	84
5705.12 of the Revised Code. The political subdivision may	85
allocate the costs of insurance or any self-insurance program, or	86
both, among the funds or accounts in the subdivision's treasury on	87
the basis of relative exposure and loss experience.	88

(3) A contract may be awarded, without the necessity of	89
competitive bidding, to any person, political subdivision,	90
nonprofit corporation organized under Chapter 1702. of the Revised	91
Code, or regional council of governments created under Chapter	92
167. of the Revised Code for purposes of administration of an	93
individual or joint self-insurance program. No such contract shall	94
be entered into without full, prior, public disclosure of all	95
terms and conditions. SuchThe disclosure shall include, at a	96
minimum, a statement listing all representations made in	97
connection with any possible savings and losses resulting from	98
suchthe contract, and potential liability of any political	99
subdivision or employee. The proposed contract and statement shall	100
be disclosed and presented at a meeting of the political	101
subdivision not less than one week prior to the meeting at which	102
the political subdivision authorizes the contract.	103

A contract awarded to a nonprofit corporation or a regional	104
council of governments under this division may provide that all	105
employees of the nonprofit corporation or regional council of	106
governments and the employees of all entities related to the	107
nonprofit corporation or regional council of governments may be	108
covered by the individual or joint self-insurance program under	109
the terms and conditions set forth in the contract.	110

(4) The individual or joint self-insurance program shall	111
include a contract with a member of the American academy of	112
actuaries for the preparation of the written evaluation of the	113
reserve funds required under division (C)(1) of this section.	114

(5) A joint self-insurance program may allocate the costs of	115
funding the program among the funds or accounts in the treasuries	116
of the participating political subdivisions on the basis of their	117
relative exposure and loss experience.	118

(6) An individual self-insurance program may allocate the	119
costs of funding the program among the funds or accounts in the	120
treasury of the political subdivision that established the	121
program.	122

(7) Two or more political subdivisions may also authorize the	123
establishment and maintenance of a joint health care cost	124
containment program, including, but not limited to, the employment	125
of risk managers, health care cost containment specialists, and	126
consultants, for the purpose of preventing and reducing health	127
care costs covered by insurance, individual self-insurance, or	128
joint self-insurance programs.	129

(8) A political subdivision is not liable under a joint	130
self-insurance program for any amount in excess of amounts payable	131
pursuant to the written agreement for the participation of the	132
political subdivision in the joint self-insurance program. Under a	133
joint self-insurance program agreement, a political subdivision	134
may, to the extent permitted under the written agreement, assume	135
the risks of any other political subdivision. A joint	136
self-insurance program established under this section is deemed a	137
separate legal entity for the public purpose of enabling the	138
members of the joint self-insurance program to obtain insurance or	139
to provide for a formalized, jointly administered self-insurance	140
fund for its members. An entity created pursuant to this section	141
is exempt from all state and local taxes.	142

(9) Any political subdivision may issue general obligation	143
bonds, or special obligation bonds whichthat are not payable from	144
real or personal property taxes, and may also issue notes in	145
anticipation of such bonds, pursuant to an ordinance or resolution	146
of its legislative authority or other governing body for the	147
purpose of providing funds to pay expenses associated with the	148
settlement of claims, whether by way of a reserve or otherwise,	149
and to pay the political subdivision's portion of the cost of	150
establishing and maintaining an individual or joint self-insurance	151
program or to provide for the reserve in the special fund	152
authorized by division (C)(2) of this section.	153

In its ordinance or resolution authorizing bonds or notes	154
under this section, a political subdivision may elect to issue	155
such bonds or notes under the procedures set forth in Chapter 133.	156
of the Revised Code. In the event of such an election,	157
notwithstanding Chapter 133. of the Revised Code, the maturity of	158
the bonds may be for any period authorized in the ordinance or	159
resolution not exceeding twenty years, which period shall be the	160
maximum maturity of the bonds for purposes of section 133.22 of	161
the Revised Code.	162

Bonds and notes issued under this section shall not be	163
considered in calculating the net indebtedness of the political	164
subdivision under sections 133.04, 133.05, 133.06, and 133.07 of	165
the Revised Code. Sections 9.98 to 9.983 of the Revised Code are	166
hereby made applicable to bonds or notes authorized under this	167
section.	168

(10) A joint self-insurance program is not an insurance	169
company. Its operation does not constitute doing an insurance	170
business and is not subject to the insurance laws of this state.	171

(D) A political subdivision may procure group life insurance	172
for its employees in conjunction with an individual or joint	173
self-insurance program authorized by this section, provided that	174
the policy of group life insurance is not self-insured.	175

(E) Divisions (C)(1), (2), and (4) of this section do not	176
apply to individual self-insurance programs in municipal	177
corporations, townships, or counties.	178

Sec. 3375.392. (A) A board of library trustees appointed	179
pursuant to section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,	180
or 3375.30 of the Revised Code may authorize an officer, employee,	181
or appointee of the free public library under its jurisdiction to	182
use a credit card that the library holds to pay for expenses	183
related to library business. The debt incurred as a result of the	184
use of the credit card shall be paid from library funds.	185

(B) Misuse of a credit card of a free public library by an	186
officer, employee, or appointee of the library is subject to	187
section 2913.21 of the Revised Code. The officer, employee, or	188
appointee also may be found personally liable to the library in a	189
civil action for the officer's, employee's, or appointee's misuse	190
of the library's credit card.	191

(C) Any officer, employee, or appointee of a free public	192
library who is authorized to use a credit card that the library	193
holds and who suspects the loss, the theft, or another person's	194
possible unauthorized use of the credit card shall notify the	195
board of library trustees immediately in writing of the suspected	196
loss, theft, or possible unauthorized use. The officer, employee,	197
or appointee may be held personally liable to the library for any	198
unauthorized debt resulting from the credit card's loss, theft, or	199
unauthorized use in the amount of fifty dollars or the amount	200
charged to the credit card as a result of the loss, theft, or	201
unauthorized use, whichever is less.	202

Sec. 3375.40.  Each board of library trustees appointed	203
pursuant to sectionssection 3375.06, 3375.10, 3375.12, 3375.15,	204
3375.22, andor 3375.30 of the Revised Code may do the following:	205

(A) Hold title to and have the custody of all real and	206
personal property of the free public library under its	207
jurisdiction;	208

(B) Expend for library purposes, and in the exercise of the	209
power enumerated in this section, all moneys, whether derived from	210
the county library and local government support fund or otherwise,	211
credited to the free public library under its jurisdiction and	212
generally do all things it considers necessary for the	213
establishment, maintenance, and improvement of the free public	214
library under its jurisdiction;	215

(C) Purchase, lease, construct, remodel, renovate, or	216
otherwise improve, equip, and furnish buildings or parts of	217
buildings and other real property, and purchase, lease, or	218
otherwise acquire motor vehicles and other personal property,	219
necessary for the proper maintenance and operation of the free	220
public librarieslibrary under its jurisdiction, and pay thetheir	221
costs thereof in installments or otherwise. Financing of these	222
costs may be provided through the issuance of notes, through an	223
installment sale, or through a lease-purchase agreement. Any such	224
notes shall be issued pursuant to section 3375.404 of the Revised	225
Code.	226

(D) Purchase, lease, lease with an option to purchase, or	227
erect buildings or parts of buildings to be used as main	228
libraries, branch libraries, or library stations pursuant to	229
section 3375.41 of the Revised Code;	230

(E) Establish and maintain a main library, branches, library	231
stations, and traveling library service within the territorial	232
boundaries of the political subdivision or district over which it	233
has jurisdiction of free public library service;	234

(F) EstablishExcept as otherwise provided in this division,	235
establish and maintain branches, library stations, and traveling	236
library service in any school district, outside the territorial	237
boundaries of the political subdivision or district over which it	238
has jurisdiction of free public library service, upon application	239
to and approval of the state library board, pursuant to section	240
3375.05 of the Revised Code; provided the. The board of library	241
trustees of any free public library maintaining branches,	242
stations, or traveling-booktraveling library service, outside the	243
territorial boundaries of the political subdivision or district	244
over which it has jurisdiction of free public library service, on	245
September 4, 1947, may continue to maintain and operate suchthose	246
branches, those stations, and that traveling library service	247
without the approval of the state library board;.	248

(G) Appoint and fix the compensation of all of the employees	249
of the free public library under its jurisdiction;, pay the	250
reasonable cost of tuition for any of its employees who enroll in	251
a course of study the board considers essential to the duties of	252
the employee or to the improvement of the employee's performance;,	253
and reimburse applicants for employment for any reasonable	254
expenses they incur by appearing for a personal interview;	255

(H) Make and publish rules for the proper operation and	256
management of the free public library and facilities under its	257
jurisdiction, including rules pertaining to the provision of	258
library services to individuals, corporations, or institutions	259
that are not inhabitants of the county;	260

(I) Establish and maintain a museum in connection with and as	261
an adjunct to the free public library under its jurisdiction;	262

(J) By the adoption of a resolution, accept any bequest,	263
gift, or endowment upon the conditions connected with suchthe	264
bequest, gift, or endowment; provided no. No such bequest, gift,	265
or endowment shall be accepted by suchthe board if theits	266
conditions thereof remove any portion of the free public library	267
under itsthe board's jurisdiction from the control of suchthe	268
board or if suchthe conditions, in any manner, limit the free use	269
of suchthe library or any part thereofof it by the residents of	270
the counties in which suchthe library is located;.	271

(K) At the end of any fiscal year, by a two-thirds vote of	272
its full membership, set aside any unencumbered surplus remaining	273
in the general fund of the free public library under its	274
jurisdiction for any purpose, including creating or increasing a	275
special building and repair fund, or for operating the library or	276
acquiring equipment and supplies;	277

(L) Procure and pay all or part of the cost of group term	278
life, hospitalization, surgical, major medical, disability	279
benefit, dental care, eye care, hearing aids, or prescription drug	280
insurance or coverage, or a combination of any of the foregoing	281
those types of insurance or coverage, whether issued by an	282
insurance company or a health insuring corporation duly licensed	283
by the state, covering its employees, and, in the case of group	284
term life, hospitalization, surgical, major medical, dental care,	285
eye care, hearing aids, or prescription drug insurance or	286
coverage, also covering the dependents and spouses of suchits	287
employees, and, in the case of disability benefits, also covering	288
the spouses of suchits employees. With respect to life insurance,	289
coverage for any employee shall not exceed the greater of the sum	290
of ten thousand dollars or the annual salary of the employee,	291
exclusive of any double indemnity clause that is a part of the	292
policy.	293

(M) Pay reasonable dues and expenses for the free public	294
library and library trustees in library associations.	295

Any instrument by which real property is acquired pursuant to	296
this section shall identify the agency of the state that has the	297
use and benefit of the real property as specified in section	298
5301.012 of the Revised Code.	299

Sec. 3375.41.  When a board of library trustees appointed	300
pursuant to sectionssection 3375.06, 3375.10, 3375.12, 3375.15,	301
3375.22, andor 3375.30 of the Revised Code determines to	302
construct, demolish, alter, repair, or reconstruct a library or	303
make any improvements or repairs, the cost of which will exceed	304
fifteentwenty-five thousand dollars, except in cases of urgent	305
necessity or for the security and protection of library property,	306
it shall proceed as follows:	307

(A) The board shall advertise for a period of four weeks for	308
sealed bids in some newspaper of general circulation in the	309
district, and, if there are two such papersnewspapers, the board	310
shall advertise in both of them. If no newspaper has a general	311
circulation in the district, the board shall advertise by posting	312
suchpost the advertisement in three public places thereinin the	313
district. SuchThe advertisement shall be entered in full by the	314
clerk on the record of proceedings of the board.	315

(B) The sealed bids shall be filed with the clerk by twelve	316
noon of the last day stated in the advertisement.	317

(C) The sealed bids shall be opened at the next meeting of	318
the board, shall be publicly read by the clerk, and shall be	319
entered in full on the records of the board; provided, that the	320
board may, by resolution, may provide for the public opening and	321
reading of suchthe bids by the clerk, immediately after the time	322
for their filing such bids has expired, at the usual place of	323
meeting of the board, and for the tabulation of suchthe bids and	324
a report of suchthe tabulation to the board at its next meeting.	325

(D) Each sealed bid shall contain the name of every person	326
interested therein,in it and shall meet the requirements of	327
section 153.54 of the Revised Code.	328

(E) When both labor and materials are embraced in the work	329
bid for, the board may require that each be separately stated in	330
the sealed bid, with thetheir price thereof, or may require that	331
bids be submitted without suchthe separation.	332

(F) None but the lowest responsible bid shall be accepted.	333
The board may reject all the bids or accept any bid for both labor	334
and material for suchthe improvement or repair which is the	335
lowest in the aggregate.	336

(G) The contract shall be between the board and the bidders.	337
The board shall pay the contract price for the work in cash at the	338
times and in the amounts as provided by sections 153.12, 153.13,	339
and 153.14 of the Revised Code.	340

(H) When two or more bids are equal, in whole or in part, and	341
are lower than any others, either may be accepted, but in no case	342
shall the work be divided between suchthese bidders.	343

(I) When there is reason to believe there is collusion or	344
combination among the bidders, the bids of those concerned in such	345
the collusion or combination shall be rejected.	346

Sec. 5705.281. (A) Notwithstanding section 5705.28 of the	347
Revised Code, the county budget commission, by an affirmative vote	348
of a majority of the commission, including an affirmative vote by	349
the county auditor, may waive the requirement that the taxing	350
authority of a subdivision or other taxing unit adopt a tax budget	351
as provided under section 5705.28 of the Revised Code, but shall	352
require such a taxing authority to provide such information to the	353
commission as may be required by the commission to perform its	354
duties under this chapter, including dividing the rates of each of	355
the subdivision's or taxing unit's tax levies as provided under	356
section 5705.04 of the Revised Code.	357

(B)(1) Notwithstanding divisions (B)(1) and (D) of section	358
5705.28 of the Revised Code, in any county in which a single	359
library receives all of the county library and local government	360
support fund or receives all of that portion of the fund that is	361
distributed to libraries, the county budget commission, by an	362
affirmative vote of a majority of the commission, including an	363
affirmative vote by the county auditor, may waive any or all of	364
the following requirements:	365

(a) The requirement that the board of trustees of a school	366
library district entitled to participate in any appropriation or	367
revenue of a school district or to have a tax proposed by the	368
board of education of a school district file with the board of	369
education of the school district a tax budget, and the requirement	370
that the board of education adopt the tax budget on behalf of the	371
library district, as provided in division (B)(1) of section	372
5705.28 of the Revised Code;	373

(b) The requirement that the board of trustees of a public	374
library desiring to participate in the distribution of the county	375
library and local government support fund certify to the taxing	376
authority its estimate of contemplated revenue and expenditures,	377
and the requirement that the taxing authority include in its	378
budget of receipts and budget of expenditures the full amounts	379
specified or requested by the board of trustees, as provided in	380
division (D) of section 5705.28 of the Revised Code.	381

(2) If a county budget commission waives the requirements	382
described in division (B)(1)(a) or (b) of this section, the	383
commission shall require the board of trustees of the school	384
library district or the board of trustees of the public library	385
desiring to participate in the distribution of the county library	386
and local government support fund to provide to the commission any	387
information the commission may require from the board in order for	388
the commission to perform its duties under this chapter.	389

Section 2. That existing sections 9.833, 3375.40, 3375.41,	390
and 5705.281 of the Revised Code are hereby repealed.	391