REPRESENTATIVES Wolpert, Daniels, Cirelli, Collier, Domenick, Flowers, McGregor, Price, Schlichter, Sferra, Skindell, Ujvagi, Wagner, Walcher, Aslanides, Book, Callender, Calvert, Carmichael, Chandler, DeBose, C. Evans, D. Evans, Gibbs, Hagan, Hartnett, Hughes, Jolivette, Niehaus, Olman, Otterman, S. Patton, Schaffer, Schmidt, Schneider, Seitz, Setzer, J. Stewart, Taylor, Webster, Young

To amend sections 122.17, 135.35, 301.27, 505.10,

1

2913.01, 5575.01, 5705.41, 5709.62, 5709.63,

2

5709.67, and 5709.82 and to enact sections 9.361

3

and 301.29 of the Revised Code to modify the

4

authority of a county treasurer to invest public

5

moneys in securities lending agreements, to

6

authorize boards of county commissioners to

7

approve the use of procurement cards for certain

8

work-related purchases, to make changes pertaining

9

to the exemption of county expenditures from the

10

certification of available funds, to make changes

11

to the County Credit Card Law, to allow counties

12

to authorize a payroll deduction program to

13

provide for certain employee transportation

14

benefits, to extend the term of enterprise zone

15

tax exemptions from ten to fifteen years for

16

uranium-related projects under certain conditions,

17

to authorize the reimbursement of taxing units for

18

tax revenue foregone as a result of certain tax

19

exemptions, to change the definition of "new

20

employee" for purposes of the job creation tax

21

credit, to permit the disposal of certain

22

unneeded, obsolete, or unfit for use township

23

property by sealed bid, and to exempt certain

24

township road projects from the force account

25

assessment form requirement.

26

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

Section 1. That sections 122.17, 135.35, 301.27, 505.10,	27
2913.01, 5575.01, 5705.41, 5709.62, 5709.63, 5709.67, and 5709.82	28
be amended and sections 9.361 and 301.29 of the Revised Code be	29
enacted to read as follows:	30

Sec. 9.361.  A board of county commissioners may authorize,	31
by resolution, a payroll deduction benefit program to implement	32
the qualified transportation fringe benefit provided for in	33
section 132(f) of the Internal Revenue Code of 1986, 26 U.S.C.	34
132(f), as amended, for county employees, but only insofar as it	35
applies to parking and transit passes. If the program includes a	36
parking benefit for parking at a facility that is not owned by the	37
county, the county shall require a third-party administrator to	38
administer the program for the county, unless, on or before the	39
effective date of this section, the county already is providing	40
such a parking benefit for which it is acting as the	41
administrator.	42

The resolution shall provide a process whereby any county	43
officer or employee may participate in or withdraw from the	44
program upon the filing of a written application. Upon appropriate	45
written authorization, the county auditor shall make the	46
appropriate payroll deductions and issue warrants as required by	47
the program.	48

Sec. 122.17.  (A) As used in this section:

49

(1) "Full-time employee" means an individual who is employed	50
for consideration for at least thirty-five hours a week, or who	51
renders any other standard of service generally accepted by custom	52
or specified by contract as full-time employment.	53

(2) "New employee" means one of the following:

54

(a) A full-time employee first employed by a taxpayer in the	55
project that is the subject of the agreement after the taxpayer	56
enters into a tax credit agreement with the tax credit authority	57
under this section;	58

(b) A full-time employee first employed by a taxpayer in the	59
project that is the subject of the tax credit after the tax credit	60
authority approves a project for a tax credit under this section	61
in a public meeting, as long as the taxpayer enters into the tax	62
credit agreement prepared by the department of development after	63
such meeting within sixty days after receiving the agreement from	64
the department. If the taxpayer fails to enter into the agreement	65
within sixty days, "new employee" has the same meaning as under	66
division (A)(2)(a) of this section.	67

Under division (A)(2)(a) or (b) of this section, if the tax	68
credit authority determines it appropriate, "new employee" also	69
may include an employee re-hired or called back from lay-off to	70
work in a new facility or on a new product or service established	71
or produced by the taxpayer after entering into the agreement	72
under this section or after the tax credit authority approves the	73
tax credit in a public meeting. "NewExcept as otherwise provided	74
in this paragraph, "new employee" does not include any employee of	75
the taxpayer who was previously employed in this state by a	76
related member of the taxpayer and whose employment was shifted to	77
the taxpayer after the taxpayer entered into the tax credit	78
agreement or after the tax credit authority approved the credit in	79
a public meeting, or any employee of the taxpayer for which the	80
taxpayer has been granted a certificate under division (B) of	81
section 5709.66 of the Revised Code. However, if the taxpayer is	82
engaged in the enrichment and commercialization of uranium or	83
uranium products or is engaged in research and development	84
activities related thereto and if the tax credit authority	85
determines it appropriate, "new employee" may include an employee	86
of the taxpayer who was previously employed in this state by a	87
related member of the taxpayer and whose employment was shifted to	88
the taxpayer after the taxpayer entered into the tax credit	89
agreement or after the tax credit authority approved the credit in	90
a public meeting. "New employee" also does not include an employee	91
of the taxpayer who is employed in an employment position that was	92
relocated to a project from other operations of the taxpayer in	93
this state or from operations of a related member of the taxpayer	94
in this state. In addition, "new employee" does not include a	95
child, grandchild, parent, or spouse, other than a spouse who is	96
legally separated from the individual, of any individual who is an	97
employee of the taxpayer and who has a direct or indirect	98
ownership interest of at least five per cent in the profits,	99
capital, or value of the taxpayer. Such ownership interest shall	100
be determined in accordance with section 1563 of the Internal	101
Revenue Code and regulations prescribed thereunder.	102

(3) "New income tax revenue" means the total amount withheld	103
under section 5747.06 of the Revised Code by the taxpayer during	104
the taxable year from the compensation of new employees for the	105
tax levied under Chapter 5747. of the Revised Code.	106

(4) "Related member" has the same meaning as under division	107
(A)(6) of section 5733.042 of the Revised Code without regard to	108
division (B) of that section.	109

(B) The tax credit authority may make grants under this	110
section to foster job creation in this state. Such a grant shall	111
take the form of a refundable credit allowed against the tax	112
imposed by section 5733.06 or 5747.02 of the Revised Code. The	113
credit shall be claimed for the taxable years specified in the	114
taxpayer's agreement with the tax credit authority under division	115
(D) of this section. The credit shall be claimed after the	116
allowance of all other credits provided by Chapter 5733. or 5747.	117
of the Revised Code. The amount of the credit equals the new	118
income tax revenue for the taxable year multiplied by the	119
percentage specified in the agreement with the tax credit	120
authority.	121

(C) A taxpayer or potential taxpayer who proposes a project	122
to create new jobs in this state may apply to the tax credit	123
authority to enter into an agreement for a tax credit under this	124
section. The director of development shall prescribe the form of	125
the application. After receipt of an application, the authority	126
may enter into an agreement with the taxpayer for a credit under	127
this section if it determines all of the following:	128

(1) The taxpayer's project will create new jobs in this	129
state;	130

(2) The taxpayer's project is economically sound and will	131
benefit the people of this state by increasing opportunities for	132
employment and strengthening the economy of this state;	133

(3) Receiving the tax credit is a major factor in the	134
taxpayer's decision to go forward with the project.	135

(D) An agreement under this section shall include all of the	136
following:	137

(1) A detailed description of the project that is the subject	138
of the agreement;	139

(2) The term of the tax credit, which shall not exceed	140
fifteen years, and the first taxable year for which the credit may	141
be claimed;	142

(3) A requirement that the taxpayer shall maintain operations	143
at the project location for at least twice the number of years as	144
the term of the tax credit;	145

(4) The percentage, as determined by the tax credit	146
authority, of new income tax revenue that will be allowed as the	147
amount of the credit for each taxable year;	148

(5) A specific method for determining how many new employees	149
are employed during a taxable year;	150

(6) A requirement that the taxpayer annually shall report to	151
the director of development the number of new employees, the new	152
income tax revenue withheld in connection with the new employees,	153
and any other information the director needs to perform the	154
director's duties under this section;	155

(7) A requirement that the director of development annually	156
shall verify the amounts reported under division (D)(6) of this	157
section, and after doing so shall issue a certificate to the	158
taxpayer stating that the amounts have been verified;	159

(8)(a) A provision requiring that the taxpayer, except as	160
otherwise provided in division (D)(8)(b) of this section, shall	161
not relocate employment positions from elsewhere in this state to	162
the project site that is the subject of the agreement for the	163
lesser of five years from the date the agreement is entered into	164
or the number of years the taxpayer is entitled to claim the tax	165
credit.	166

(b) The taxpayer may relocate employment positions from	167
elsewhere in this state to the project site that is the subject of	168
the agreement if the director of development determines both of	169
the following:	170

(i) That the site from which the employment positions would	171
be relocated is inadequate to meet market and industry conditions,	172
expansion plans, consolidation plans, or other business	173
considerations affecting the taxpayer;	174

(ii) That the legislative authority of the county, township,	175
or municipal corporation from which the employment positions would	176
be relocated has been notified of the relocation.	177

For purposes of this section, the movement of an employment	178
position from one political subdivision to another political	179
subdivision shall be considered a relocation of an employment	180
position, but the transfer of an individual employee from one	181
political subdivision to another political subdivision shall not	182
be considered a relocation of an employment position as long as	183
the individual's employment position in the first political	184
subdivision is refilled.	185

(E) If a taxpayer fails to meet or comply with any condition	186
or requirement set forth in a tax credit agreement, the tax credit	187
authority may amend the agreement to reduce the percentage or term	188
of the tax credit. The reduction of the percentage or term shall	189
take effect in the taxable year immediately following the taxable	190
year in which the authority amends the agreement. If the taxpayer	191
relocates employment positions in violation of the provision	192
required under division (D)(8)(a) of this section, the taxpayer	193
shall not claim the tax credit under section 5733.0610 of the	194
Revised Code for any tax years following the calendar year in	195
which the relocation occurs, or shall not claim the tax credit	196
under section 5747.058 of the Revised Code for the taxable year in	197
which the relocation occurs and any subsequent taxable years.	198

(F) Projects that consist solely of point-of-final-purchase	199
retail facilities are not eligible for a tax credit under this	200
section. If a project consists of both point-of-final-purchase	201
retail facilities and nonretail facilities, only the portion of	202
the project consisting of the nonretail facilities is eligible for	203
a tax credit and only the new income tax revenue from new	204
employees of the nonretail facilities shall be considered when	205
computing the amount of the tax credit. If a warehouse facility is	206
part of a point-of-final-purchase retail facility and supplies	207
only that facility, the warehouse facility is not eligible for a	208
tax credit. Catalog distribution centers are not considered	209
point-of-final-purchase retail facilities for the purposes of this	210
division, and are eligible for tax credits under this section.	211

(G) Financial statements and other information submitted to	212
the department of development or the tax credit authority by an	213
applicant or recipient of a tax credit under this section, and any	214
information taken for any purpose from such statements or	215
information, are not public records subject to section 149.43 of	216
the Revised Code. However, the chairperson of the authority may	217
make use of the statements and other information for purposes of	218
issuing public reports or in connection with court proceedings	219
concerning tax credit agreements under this section. Upon the	220
request of the tax commissioner, the chairperson of the authority	221
shall provide to the commissioner any statement or information	222
submitted by an applicant or recipient of a tax credit in	223
connection with the credit. The commissioner shall preserve the	224
confidentiality of the statement or information.	225

(H) A taxpayer claiming a credit under this section shall	226
submit to the tax commissioner a copy of the director of	227
development's certificate of verification under division (D)(7) of	228
this section for the taxable year. However, failure to submit a	229
copy of the certificate does not invalidate a claim for a credit.	230

(I) The director of development, after consultation with the	231
tax commissioner and in accordance with Chapter 119. of the	232
Revised Code, shall adopt rules necessary to implement this	233
section. The rules may provide for recipients of tax credits under	234
this section to be charged fees to cover administrative costs of	235
the tax credit program. At the time the director gives public	236
notice under division (A) of section 119.03 of the Revised Code of	237
the adoption of the rules, the director shall submit copies of the	238
proposed rules to the chairpersons of the standing committees on	239
economic development in the senate and the house of	240
representatives.	241

(J) For the purposes of this section, a taxpayer may include	242
a partnership, a corporation that has made an election under	243
subchapter S of chapter one of subtitle A of the Internal Revenue	244
Code, or any other business entity through which income flows as a	245
distributive share to its owners. A credit received under this	246
section by a partnership, S-corporation, or other such business	247
entity shall be apportioned among the persons to whom the income	248
or profit of the partnership, S-corporation, or other entity is	249
distributed, in the same proportions as those in which the income	250
or profit is distributed.	251

(K) If the director of development determines that a taxpayer	252
who has received a credit under this section is not complying with	253
the requirement under division (D)(3) of this section, the	254
director shall notify the tax credit authority of the	255
noncompliance. After receiving such a notice, and after giving the	256
taxpayer an opportunity to explain the noncompliance, the tax	257
credit authority may require the taxpayer to refund to this state	258
a portion of the credit in accordance with the following:	259

(1) If the taxpayer maintained operations at the project	260
location for at least one and one-half times the number of years	261
of the term of the tax credit, an amount not exceeding twenty-five	262
per cent of the sum of any previously allowed credits under this	263
section;	264

(2) If the taxpayer maintained operations at the project	265
location for at least the number of years of the term of the tax	266
credit, an amount not exceeding fifty per cent of the sum of any	267
previously allowed credits under this section;	268

(3) If the taxpayer maintained operations at the project	269
location for less than the number of years of the term of the tax	270
credit, an amount not exceeding one hundred per cent of the sum of	271
any previously allowed credits under this section.	272

In determining the portion of the tax credit to be refunded	273
to this state, the tax credit authority shall consider the effect	274
of market conditions on the taxpayer's project and whether the	275
taxpayer continues to maintain other operations in this state.	276
After making the determination, the authority shall certify the	277
amount to be refunded to the tax commissioner. The commissioner	278
shall make an assessment for that amount against the taxpayer	279
under Chapter 5733. or 5747. of the Revised Code. The time	280
limitations on assessments under Chapter 5733. or 5747. of the	281
Revised Code do not apply to an assessment under this division,	282
but the commissioner shall make the assessment within one year	283
after the date the authority certifies to the commissioner the	284
amount to be refunded.	285

(L) On or before the thirty-first day of March each year, the	286
director of development shall submit a report to the governor, the	287
president of the senate, and the speaker of the house of	288
representatives on the tax credit program under this section. The	289
report shall include information on the number of agreements that	290
were entered into under this section during the preceding calendar	291
year, a description of the project that is the subject of each	292
such agreement, and an update on the status of projects under	293
agreements entered into before the preceding calendar year.	294

During the fifth year of the tax credit program, the director	295
of development in conjunction with the director of budget and	296
management shall conduct an evaluation of it. The evaluation shall	297
include assessments of the effectiveness of the program in	298
creating new jobs in this state and of the revenue impact of the	299
program, and may include a review of the practices and experiences	300
of other states with similar programs. The director of development	301
shall submit a report on the evaluation to the governor, the	302
president of the senate, and the speaker of the house of	303
representatives on or before January 1, 1998.	304

(M) There is hereby created the tax credit authority, which	305
consists of the director of development and four other members	306
appointed as follows: the governor, the president of the senate,	307
and the speaker of the house of representatives each shall appoint	308
one member who shall be a specialist in economic development; the	309
governor also shall appoint a member who is a specialist in	310
taxation. Of the initial appointees, the members appointed by the	311
governor shall serve a term of two years; the members appointed by	312
the president of the senate and the speaker of the house of	313
representatives shall serve a term of four years. Thereafter,	314
terms of office shall be for four years. Initial appointments to	315
the authority shall be made within thirty days after January 13,	316
1993. Each member shall serve on the authority until the end of	317
the term for which the member was appointed. Vacancies shall be	318
filled in the same manner provided for original appointments. Any	319
member appointed to fill a vacancy occurring prior to the	320
expiration of the term for which the member's predecessor was	321
appointed shall hold office for the remainder of that term.	322
Members may be reappointed to the authority. Members of the	323
authority shall receive their necessary and actual expenses while	324
engaged in the business of the authority. The director of	325
development shall serve as chairperson of the authority, and the	326
members annually shall elect a vice-chairperson from among	327
themselves. Three members of the authority constitute a quorum to	328
transact and vote on the business of the authority. The majority	329
vote of the membership of the authority is necessary to approve	330
any such business, including the election of the vice-chairperson.	331

The director of development may appoint a professional	332
employee of the department of development to serve as the	333
director's substitute at a meeting of the authority. The director	334
shall make the appointment in writing. In the absence of the	335
director from a meeting of the authority, the appointed substitute	336
shall serve as chairperson. In the absence of both the director	337
and the director's substitute from a meeting, the vice-chairperson	338
shall serve as chairperson.	339

Sec. 135.35.  (A) The investing authority shall deposit or	340
invest any part or all of the county's inactive moneys and shall	341
invest all of the money in the county library and local government	342
support fund when required by section 135.352 of the Revised Code.	343
The following classifications of securities and obligations are	344
eligible for such deposit or investment:	345

(1) United States treasury bills, notes, bonds, or any other	346
obligation or security issued by the United States treasury or any	347
other obligation guaranteed as to principal or interest by the	348
United States.	349

Nothing in the classification of eligible securities and	350
obligations set forth in division (A)(1) of this section or in the	351
classifications of eligible securities and obligations set forth	352
in divisions (A)(2) to (8) of this section shall be construed to	353
authorize any investment in stripped principal or interest	354
obligations of such eligible securities and obligations.	355

(2) Bonds, notes, debentures, or any other obligations or	356
securities issued by any federal government agency or	357
instrumentality, including but not limited to, the federal	358
national mortgage association, federal home loan bank, federal	359
farm credit bank, federal home loan mortgage corporation,	360
government national mortgage association, and student loan	361
marketing association. All federal agency securities shall be	362
direct issuances of federal government agencies or	363
instrumentalities.	364

(3) Time certificates of deposit or savings or deposit	365
accounts, including, but not limited to, passbook accounts, in any	366
eligible institution mentioned in section 135.32 of the Revised	367
Code;	368

(4) Bonds and other obligations of this state or the	369
political subdivisions of this state, provided that such political	370
subdivisions are located wholly or partly within the same county	371
as the investing authority;	372

(5) No-load money market mutual funds consisting exclusively	373
of obligations described in division (A)(1) or (2) of this section	374
and repurchase agreements secured by such obligations, provided	375
that investments in securities described in this division are made	376
only through eligible institutions mentioned in section 135.32 of	377
the Revised Code;	378

(6) The Ohio subdivision's fund as provided in section 135.45	379
of the Revised Code;	380

(7) Securities lending agreements with any eligible	381
institution mentioned in section 135.32 of the Revised Code that	382
is a member of the federal reserve system or federal home loan	383
bank or with any recognized United States government securities	384
dealer meeting the description in division (J)(1) of this section,	385
under the terms of which agreements the investing authority lends	386
securities and the eligible institution or dealer agrees to	387
simultaneously exchange eithersimilar securities described in	388
division (A)(1) or (2) of this section or cash or both securities	389
and cash, equal value for equal value;.	390

Securities and cash received as collateral for a securities	391
lending agreement are not inactive moneys of the county or moneys	392
of a county library and local government support fund. The	393
investment of cash collateral received pursuant to a securities	394
lending agreement may be invested only in instruments specified by	395
the investing authority in the written investment policy described	396
in division (K) of this section.	397

(8) Up to twenty-five per cent of the county's total average	398
portfolio in either of the following investments:	399

(a) Commercial paper notes issued by an entity that is	400
defined in division (D) of section 1705.01 of the Revised Code and	401
that has assets exceeding five hundred million dollars, to which	402
notes all of the following apply:	403

(i) The notes are rated at the time of purchase in the	404
highest classification established by at least two nationally	405
recognized standard rating services.	406

(ii) The aggregate value of the notes does not exceed ten per	407
cent of the aggregate value of the outstanding commercial paper of	408
the issuing corporation.	409

(iii) The notes mature not later than one hundred eighty days	410
after purchase.	411

(b) Bankers acceptances of banks that are insured by the	412
federal deposit insurance corporation and to which both of the	413
following apply:	414

(i) The obligations are eligible for purchase by the federal	415
reserve system.	416

(ii) The obligations mature not later than one hundred eighty	417
days after purchase.	418

No investment shall be made pursuant to division (A)(8) of	419
this section unless the investing authority has completed	420
additional training for making the investments authorized by	421
division (A)(8) of this section. The type and amount of additional	422
training shall be approved by the auditor of state and may be	423
conducted by or provided under the supervision of the auditor of	424
state.	425

(B) Nothing in the classifications of eligible obligations	426
and securities set forth in divisions (A)(1) to (8) of this	427
section shall be construed to authorize investment in a	428
derivative, and no investing authority shall invest any county	429
inactive moneys or any moneys in a county library and local	430
government support fund in a derivative. For purposes of this	431
division, "derivative" means a financial instrument or contract or	432
obligation whose value or return is based upon or linked to	433
another asset or index, or both, separate from the financial	434
instrument, contract, or obligation itself. Any security,	435
obligation, trust account, or other instrument that is created	436
from an issue of the United States treasury or is created from an	437
obligation of a federal agency or instrumentality or is created	438
from both is considered a derivative instrument. An eligible	439
investment described in this section with a variable interest rate	440
payment, based upon a single interest payment or single index	441
comprised of other eligible investments provided for in division	442
(A)(1) or (2) of this section, is not a derivative, provided that	443
such variable rate investment has a maximum maturity of two years.	444

(C) Except as provided in division (D) of this section, any	445
investment made pursuant to this section must mature within five	446
years from the date of settlement, unless the investment is	447
matched to a specific obligation or debt of the county or to a	448
specific obligation or debt of a political subdivision of this	449
state located wholly or partly within the county, and the	450
investment is specifically approved by the investment advisory	451
committee.	452

(D) The investing authority may also enter into a written	453
repurchase agreement with any eligible institution mentioned in	454
section 135.32 of the Revised Code or any eligible securities	455
dealer pursuant to division (J) of this section, under the terms	456
of which agreement the investing authority purchases and the	457
eligible institution or dealer agrees unconditionally to	458
repurchase any of the securities listed in divisions (B)(1) to	459
(5), except letters of credit described in division (B)(2), of	460
section 135.18 of the Revised Code. The market value of securities	461
subject to an overnight written repurchase agreement must exceed	462
the principal value of the overnight written repurchase agreement	463
by at least two per cent. A written repurchase agreement must	464
exceed the principal value of the overnight written repurchase	465
agreement, by at least two per cent. A written repurchase	466
agreement shall not exceed thirty days, and the market value of	467
securities subject to a written repurchase agreement must exceed	468
the principal value of the written repurchase agreement by at	469
least two per cent and be marked to market daily. All securities	470
purchased pursuant to this division shall be delivered into the	471
custody of the investing authority or the qualified custodian of	472
the investing authority or an agent designated by the investing	473
authority. A written repurchase agreement with an eligible	474
securities dealer shall be transacted on a delivery versus payment	475
basis. The agreement shall contain the requirement that for each	476
transaction pursuant to the agreement the participating	477
institution shall provide all of the following information:	478

(1) The par value of the securities;

479

(2) The type, rate, and maturity date of the securities;

480

(3) A numerical identifier generally accepted in the	481
securities industry that designates the securities.	482

No investing authority shall enter into a written repurchase	483
agreement under the terms of which the investing authority agrees	484
to sell securities owned by the county to a purchaser and agrees	485
with that purchaser to unconditionally repurchase those	486
securities.	487

(E) No investing authority shall make an investment under	488
this section, unless the investing authority, at the time of	489
making the investment, reasonably expects that the investment can	490
be held until its maturity. The investing authority's written	491
investment policy shall specify the conditions under which an	492
investment may be redeemed or sold prior to maturity.	493

(F) No investing authority shall pay a county's inactive	494
moneys or moneys of a county library and local government support	495
fund into a fund established by another subdivision, treasurer,	496
governing board, or investing authority, if that fund was	497
established by the subdivision, treasurer, governing board, or	498
investing authority for the purpose of investing or depositing the	499
public moneys of other subdivisions. This division does not apply	500
to the payment of public moneys into either of the following:	501

(1) The Ohio subdivision's fund pursuant to division (A)(6)	502
of this section;	503

(2) A fund created solely for the purpose of acquiring,	504
constructing, owning, leasing, or operating municipal utilities	505
pursuant to the authority provided under section 715.02 of the	506
Revised Code or Section 4 of Article XVIII, Ohio Constitution.	507

For purposes of division (F) of this section, "subdivision"	508
includes a county.	509

(G) The use of leverage, in which the county uses its current	510
investment assets as collateral for the purpose of purchasing	511
other assets, is prohibited. The issuance of taxable notes for the	512
purpose of arbitrage is prohibited. Contracting to sell securities	513
not owned by the county, for the purpose of purchasing such	514
securities on the speculation that bond prices will decline, is	515
prohibited.	516

(H) Any securities, certificates of deposit, deposit	517
accounts, or any other documents evidencing deposits or	518
investments made under authority of this section shall be issued	519
in the name of the county with the county treasurer or investing	520
authority as the designated payee. If any such deposits or	521
investments are registrable either as to principal or interest, or	522
both, they shall be registered in the name of the treasurer.	523

(I) The investing authority shall be responsible for the	524
safekeeping of all documents evidencing a deposit or investment	525
acquired under this section, including, but not limited to,	526
safekeeping receipts evidencing securities deposited with a	527
qualified trustee, as provided in section 135.37 of the Revised	528
Code, and documents confirming the purchase of securities under	529
any repurchase agreement under this section shall be deposited	530
with a qualified trustee, provided, however, that the qualified	531
trustee shall be required to report to the investing authority,	532
auditor of state, or an authorized outside auditor at any time	533
upon request as to the identity, market value, and location of the	534
document evidencing each security, and that if the participating	535
institution is a designated depository of the county for the	536
current period of designation, the securities that are the subject	537
of the repurchase agreement may be delivered to the treasurer or	538
held in trust by the participating institution on behalf of the	539
investing authority.	540

Upon the expiration of the term of office of an investing	541
authority or in the event of a vacancy in the office for any	542
reason, the officer or the officer's legal representative shall	543
transfer and deliver to the officer's successor all documents	544
mentioned in this division for which the officer has been	545
responsible for safekeeping. For all such documents transferred	546
and delivered, suchthe officer shall be credited with, and the	547
officer's successor shall be charged with, the amount of moneys so	548
evidenced by such documents.	549

(J)(1) All investments, except for investments in securities	550
described in divisions (A)(5) and (6) of this section, shall be	551
made only through a member of the national association of	552
securities dealers, through a bank, savings bank, or savings and	553
loan association regulated by the superintendent of financial	554
institutions, or through an institution regulated by the	555
comptroller of the currency, federal deposit insurance	556
corporation, or board of governors of the federal reserve system.	557

(2) Payment for investments shall be made only upon the	558
delivery of securities representing such investments to the	559
treasurer, investing authority, or qualified trustee. If the	560
securities transferred are not represented by a certificate,	561
payment shall be made only upon receipt of confirmation of	562
transfer from the custodian by the treasurer, governing board, or	563
qualified trustee.	564

(K)(1) Except as otherwise provided in division (K)(2) of	565
this section, no investing authority shall make an investment or	566
deposit under this section, unless there is on file with the	567
auditor of state a written investment policy approved by the	568
investing authority. The policy shall require that all entities	569
conducting investment business with the investmentinvesting	570
authority shall sign the investment policy of that investment	571
investing authority. All brokers, dealers, and financial	572
institutions, described in division (J)(1) of this section,	573
initiating transactions with the investmentinvesting authority by	574
giving advice or making investment recommendations shall sign the	575
investmentinvesting authority's investment policy thereby	576
acknowledging their agreement to abide by the policy's contents.	577
All brokers, dealers, and financial institutions, described in	578
division (J)(1) of this section, executing transactions initiated	579
by the investmentinvesting authority, having read the policy's	580
contents, shall sign the investment policy thereby acknowledging	581
their comprehension and receipt.	582

(2) If a written investment policy described in division	583
(K)(1) of this section is not filed on behalf of the county with	584
the auditor of state, the investing authority of that county shall	585
invest the county's inactive moneys and moneys of the county	586
library and local government support fund only in time	587
certificates of deposits or savings or deposit accounts pursuant	588
to division (A)(3) of this section, no-load money market mutual	589
funds pursuant to division (A)(5) of this section, or the Ohio	590
subdivision's fund pursuant to division (A)(6) of this section.	591

(L)(1) The investing authority shall establish and maintain	592
an inventory of all obligations and securities acquired by the	593
investing authority pursuant to this section. The inventory shall	594
include a description of each obligation or security, including	595
type, cost, par value, maturity date, settlement date, and any	596
coupon rate.	597

(2) The investing authority shall also keep a complete record	598
of all purchases and sales of the obligations and securities made	599
pursuant to this section.	600

(3) The investing authority shall maintain a monthly	601
portfolio report and issue a copy of the monthly portfolio report	602
describing such investments to the county investment advisory	603
committee, detailing the current inventory of all obligations and	604
securities, all transactions during the month that affected the	605
inventory, any income received from the obligations and	606
securities, and any investment expenses paid, and stating the	607
names of any persons effecting transactions on behalf of the	608
investing authority.	609

(4) The monthly portfolio report shall be a public record and	610
available for inspection under section 149.43 of the Revised Code.	611

(5) The inventory and the monthly portfolio report shall be	612
filed with the board of county commissioners.	613

(M) An investing authority may enter into a written	614
investment or deposit agreement that includes a provision under	615
which the parties agree to submit to nonbinding arbitration to	616
settle any controversy that may arise out of the agreement,	617
including any controversy pertaining to losses of public moneys	618
resulting from investment or deposit. The arbitration provision	619
shall be set forth entirely in the agreement, and the agreement	620
shall include a conspicuous notice to the parties that any party	621
to the arbitration may apply to the court of common pleas of the	622
county in which the arbitration was held for an order to vacate,	623
modify, or correct the award. Any such party may also apply to the	624
court for an order to change venue to a court of common pleas	625
located more than one hundred miles from the county in which the	626
investing authority is located.	627

For purposes of this division, "investment or deposit	628
agreement" means any agreement between an investing authority and	629
a person, under which agreement the person agrees to invest,	630
deposit, or otherwise manage, on behalf of the investing	631
authority, a county's inactive moneys or moneys in a county	632
library and local government support fund, or agrees to provide	633
investment advice to the investing authority.	634

(N) An investment held in the county portfolio on September	635
27, 1996, that was a legal investment under the law as it existed	636
before September 27, 1996, may be held until maturity, or if the	637
investment does not have a maturity date the investment may be	638
held until five years from September 27, 1996, regardless of	639
whether the investment would qualify as a legal investment under	640
the terms of this section as amended.	641

Sec. 301.27.  (A) As used in this section:

642

(1) "Credit card" includes a gasoline and telephone credit	643
card and a telephone credit cardcards but excludes any	644
procurement card authorized under section 301.29 of the Revised	645
Code.	646

(2) "Officer" includes an individual who also is an	647
appointing authority.	648

(3) "Gasoline and oil expenses," and "minor motor vehicle	649
repair and maintenance expenses," and "emergency motor vehicle	650
repair expenses" refer to only those expenses incurred for motor	651
vehicles owned or leased by the county.	652

(B)(1) A credit card held by a board of county commissioners	653
or the office of any other county appointing authority shall be	654
used only to pay the following work-related expenses, limited to	655
the following:	656

(1)(a) Food expenses;

657

(2)(b) Transportation expenses;

658

(3)(c) Gasoline and oil expenses;

659

(4) Minor motor(d) Motor vehicle repair and maintenance	660
expenses;	661

(5) Emergency motor vehicle repair expenses;

662

(6)(e) Telephone expenses;

663

(7)(f) Lodging expenses;

664

(8)(g) Internet service provider expenses;

665

(9)(h) In the case of a public children services agency,	666
expenses for purchases for children for whom the agency is	667
providing temporary emergency care pursuant to section 5153.16 of	668
the Revised Code, children in the temporary or permanent custody	669
of the agency, and children in a planned permanent living	670
arrangement.	671

(2) No late charges or finance charges shall be allowed as an	672
allowable expense unless authorized by the board of county	673
commissioners.	674

(C) A county appointing authority may apply to the board of	675
county commissioners for authorization to have an officer or	676
employee of the appointing authority use a credit card held by	677
that appointing authority. The authorization request shall state	678
whether the card is to be issued only in the name of the office of	679
the appointing authority itself or whether the issued card also	680
shall also include the name of a specified officer or employee.	681

(D) The debt incurred as a result of the use of a credit card	682
pursuant to this section shall be paid from moneys appropriated to	683
specific appropriation line items of the appointing authority for	684
work-related expenses listed in division (B)(1) of this section.	685

(E)(1) Except as otherwise provided in division (E)(2) of	686
this section, every officer or employee authorized to use a credit	687
card held by the board or appointing authority shall submit to the	688
board by the first day of each month an estimate of the officer's	689
or employee's work-related expenses listed in division (B)(1) of	690
this section for that month along with the specific appropriation	691
line items from which those expenditures are to be made, unless	692
the board authorizes, by resolution, the officer or employee to	693
submit to the board such an estimate for a period longer than one	694
month. The board may revise the estimate and determine the amount	695
it approves, if any, not to exceed the estimated amount. The board	696
shall certify the amount of its determination to the county	697
auditor along with the necessary information for the auditor to	698
determine the appropriatespecific appropriation line itemitems	699
from which suchthe expenditures are to be made. After receiving	700
certification from the county auditor that the determined sum of	701
money is in the treasury or in the process of collection to the	702
credit of the appropriatespecific appropriation line itemitems	703
for which the credit card is approved for use, and is free from	704
previous and then-outstanding obligations or certifications, the	705
board shall authorize the officer or employee to incur debt for	706
suchthe expenses against the county's credit up to the authorized	707
amount.	708

(2) In lieu of following the procedure set forth in division	709
(E)(1) of this section, a board of county commissioners may adopt	710
a resolution authorizing an officer or employee of an appointing	711
authority to use a county credit card to pay for specific classes	712
of the work-related expenses listed in division (B)(1) of this	713
section, or use a specific credit card for any of those	714
work-related expenses listed in division (B)(1) of this section,	715
without submitting an estimate of those expenses to the board as	716
required by division (E)(1) of this section. Prior to adopting the	717
resolution, the board shall notify the county auditor. The	718
resolution shall specify whether the officer's or employee's	719
exemption extends to the use of a specific credit card, which card	720
shall be identified by its number, or to one or more specific	721
work-related uses from the classes of uses permitted under	722
division (B)(1) of this section. Before any credit card exempted	723
for specific uses may be used to make purchases for uses other	724
than those specific uses listed in the resolution, the procedures	725
outlined in division (E)(1) of this section must be followed or	726
the use shall be considered an unauthorized use. Use of any credit	727
card under division (E)(2) of this section shall be limited to the	728
amount appropriated and encumbered in a specific appropriation	729
line item for the permitted use or uses designated in the	730
authorizing resolution, or, in the case of a resolution that	731
authorizes use of a specific credit card, for each of the	732
permitted uses listed in division (B) of this section, but only to	733
the extent the moneys in such appropriationsthose specific	734
appropriation line items are not otherwise encumberencumbered.	735

(F)(1) Any time a county credit card approved for use for an	736
authorized amount under division (E)(1) of this section is used	737
for more than that authorized amount, the appointing authority may	738
request the board of county commissioners to authorize after the	739
fact the expenditure of any amount charged beyond the originally	740
authorized amount if, upon the board's request, the county auditor	741
certifies that sum of money is in the treasury or in the process	742
of collection to the credit of the appropriate appropriation line	743
item for which the credit card was used, and is free from previous	744
and then-outstanding obligations or certifications. If the card is	745
used for more than the amount originally authorized and if for any	746
reason that amount is not authorized after the fact, then the	747
county treasury shall be reimbursed for any amount spent beyond	748
the originally authorized amount in the following manner:	749

(a) If the card is issued in the name of a specific officer	750
or employee, then that officer or employee is liable in person and	751
upon any official bond the officer or employee has given to the	752
county to reimburse the county treasury for the amount charged to	753
the county beyond the originally authorized amount.	754

(b) If the card wasis issued to the office of the appointing	755
authority, then the appointing authority is liable in person and	756
upon any official bond the appointing authority has given to the	757
county for the amount charged to the county beyond the originally	758
authorized amount.	759

(2) Any time a county credit card authorized for use under	760
division (E)(2) of this section is used for more than the amount	761
appropriated under that division, the appointing authority may	762
request the board of county commissioners to issue a supplemental	763
appropriation or make a transfer to the proper line item account	764
as permitted in section 5705.40 of the Revised Code, to cover the	765
amount charged beyond the originally appropriated amount. If the	766
card is used for more than the amount originally appropriated and	767
if for any reason that amount is not appropriated or transferred	768
as permitted by this section, then the county treasury shall be	769
reimbursed for any amount spent beyond the originally appropriated	770
amount in the following manner:	771

(a) If the card is issued in the name of a specific officer	772
or employee, then that officer or employee is liable in person and	773
upon any official bond the officer or employee has given to the	774
county for reimbursing the county treasury for any amount charged	775
on the card beyond the originally appropriated amount.	776

(b) If the card is issued in the name of the office of the	777
appointing authority, then the appointing authority is liable in	778
person and upon any official bond the appointing authority has	779
given to the county for reimbursement for any amount charged on	780
the card beyond the originally appropriated amount.	781

(3) Whenever any officer or employee who is authorized to use	782
a credit card held by the board or the office of any other county	783
appointing authority suspects the loss, theft, or possibility of	784
unauthorized use of the county credit card the officer or employee	785
is authorized to use, the officer or employee shall so notify the	786
county auditor and either the officer's or employee's appointing	787
authority or the board immediately and in writing.	788

(4) If the county auditor determines there has been a credit	789
card expenditure beyond the appropriated or authorized amount as	790
provided in division (E) of this section, the auditor immediately	791
shall notify the board of county commissioners of this fact. When	792
the board of county commissioners determines, on its own or after	793
notification from the county auditor, that the county treasury	794
should be reimbursed for credit card expenditures beyond the	795
appropriated or authorized amount as provided in divisions (F)(1)	796
and (2) of this section, it shall give written notice to the	797
county auditor and to the officer or employee or appointing	798
authority liable to the treasury as provided in those divisions	799
(F)(1) and (2) of this section. If, within thirty days after	800
issuance of thisthe written notice, the county treasury is not	801
reimbursed for the amount shown on the written notice, the	802
prosecuting attorney of the county shall recover that amount from	803
the officer or employee or appointing authority who is liable	804
under this section by civil action in any court of appropriate	805
jurisdiction.	806

(G) Use of a county credit card for any use other than those	807
permitted under division (B)(1) of this section is a violation of	808
law for the purposes of section 2913.21 of the Revised Code.	809

Sec. 301.29. (A) As used in this section:

810

(1) "Officer" includes an individual who also is an	811
appointing authority.	812

(2) "Procurement card" means a financial transaction device	813
as defined in section 301.28 of the Revised Code and as authorized	814
under this section, but excludes any credit card authorized under	815
section 301.27 of the Revised Code.	816

(B) A procurement card held by a board of county	817
commissioners or the office of any other county appointing	818
authority shall be used only to pay work-related expenses. No late	819
charges or finance charges shall be allowed as an allowable	820
expense unless authorized by the board of county commissioners.	821

(C)(1) In any county that chooses to use procurement cards,	822
the board of county commissioners shall, by resolution, adopt a	823
policy with the advice of the county auditor, for the county's use	824
of those cards. The resolution shall include provisions that limit	825
the use of a procurement card to payment for one or more specific	826
work-related or specific classes of work-related expenses, and	827
limit procurement card transactions to a specific number of	828
transactions per day, month, quarter, or other specified period as	829
authorized in division (F)(2) of this section, by supplier or	830
work-related expense. In addition, the resolution shall limit a	831
procurement card to daily and monthly spending limits.	832

The resolution also shall contain a list of administrative	833
controls that the board determines, after consulting with the	834
county auditor, will be sufficient for use of a procurement card.	835
Those administrative controls shall include at a minimum the	836
following:	837

(a) An aggregate amount that may be incurred through use of	838
each card within a day, week, or month;	839

(b) Classes of permissible goods and services that may be	840
purchased with a procurement card;	841

(c) In case a procurement card is misused, a procedure for	842
revocation of the card.	843

(2) The county auditor shall develop internal accounting	844
controls in consultation with the auditor of state for the	845
implementation of this section.	846

(3) If a board of county commissioners adopts a policy under	847
division (C)(1) of this section, it shall advertise a request for	848
proposals from issuers of procurement cards in a newspaper of	849
general circulation within the county at least once a week for two	850
consecutive weeks. The advertisement shall specify the purpose of	851
the request, the type of procurement card or cards sought, and the	852
date by which proposals must be received. That date shall not be	853
less than ten days after the last day of the second week in which	854
the request is advertised.	855

The board also may post the advertisement by electronic	856
means, including posting the advertisement on the county's	857
internet site on the world wide web. If the advertisement is	858
posted on the county web site, the board may eliminate the second	859
newspaper publication otherwise required by this division if the	860
first notice published in a newspaper of general circulation meets	861
all of the following:	862

(a) It is published at least two weeks before the date	863
required for the receipt of the proposals.	864

(b) It includes a statement that the notice is posted on the	865
county's internet site on the world wide web.	866

(c) It includes the county's internet address on the world	867
wide web.	868

(d) It provides instruction for accessing the advertisement	869
on the county web site.	870

The board shall determine upon the advice of the county	871
auditor and county treasurer whether to contract with any one or	872
more issuers that submit a timely proposal. Before entering into a	873
contract, the board shall adopt a resolution stating the	874
contract's intent and guidelines consistent with divisions (C)(1)	875
and (2) of this section for the use of each procurement card.	876

(D) A county appointing authority may apply to the board of	877
county commissioners for authorization to have an officer or	878
employee of the appointing authority use a procurement card held	879
by that appointing authority. The authorization request shall	880
state whether the card is to be issued only in the name of the	881
office of the appointing authority or whether the issued card also	882
shall include the name of a specified officer or employee.	883

(E) The debt incurred as a result of the use of a procurement	884
card under this section shall be paid from moneys appropriated to	885
specific appropriation line items of the appointing authority.	886

(F)(1) Except as otherwise provided in division (F)(2) of	887
this section, every officer or employee authorized to use a	888
procurement card held by the board or appointing authority shall	889
submit to the board by the first day of each month an estimate of	890
the officer's or employee's work-related expenses for that month,	891
unless the board authorizes, by resolution, the officer or	892
employee to submit to the board such an estimate for a period	893
longer than one month. The board may revise the estimate and	894
determine the amount it approves, if any, not to exceed the	895
estimated amount. The board shall certify the amount of its	896
determination to the county auditor along with the specific	897
appropriation line items from which the expenditures are to be	898
made. After receiving certification pursuant to division (D) of	899
section 5705.41 of the Revised Code that the specific	900
appropriation line item for which the procurement card is approved	901
for use is free from previous and then-outstanding obligations or	902
certifications, the board shall authorize the officer or employee	903
to incur debt for the expenses against the county's credit up to	904
the authorized amount.	905

(2) In lieu of following the procedure set forth in division	906
(F)(1) of this section, a board of county commissioners may adopt	907
a resolution authorizing an officer or employee of an appointing	908
authority to use a county procurement card to pay for specific	909
classes of work-related expenses, or to use a specific procurement	910
card for any work-related expenses, without submitting an estimate	911
of those expenses to the board as required by division (F)(1) of	912
this section. Prior to adopting the resolution, the board shall	913
notify the county auditor. The resolution shall specify whether	914
the officer's or employee's exemption extends to the use of a	915
specific procurement card, which card shall be identified by its	916
number, or to one or more specific work-related uses. Before any	917
procurement card issued for specific uses may be used to make	918
purchases for uses other than those specific uses listed in the	919
resolution, the procedures outlined in division (F)(1) of this	920
section must be followed or the use shall be considered an	921
unauthorized use. Use of any procurement card under division	922
(F)(2) of this section shall be limited to the amount appropriated	923
and encumbered in a specific appropriation line item for the	924
permitted use or uses designated in the authorizing resolution,	925
or, in the case of a resolution that authorizes use of a specific	926
procurement card, for any work-related expense, but only to the	927
extent the moneys in those specific appropriation line items are	928
not otherwise encumbered.	929

(3) A procurement card shall not be used in any manner that	930
circumvents the competitive bidding requirements of section 307.86	931
of the Revised Code.	932

(G)(1) Any time a county procurement card approved for use	933
for an authorized amount under division (F)(1) of this section is	934
used for more than that authorized amount, the appointing	935
authority may request the board of county commissioners to	936
authorize after the fact the expenditure of any amount charged	937
beyond the originally authorized amount if, upon the board's	938
request, the county auditor certifies that sum of money is in the	939
treasury or in the process of collection to the credit of the	940
appropriate appropriation line item for which the procurement card	941
was used, and is free from previous and then-outstanding	942
obligations or certifications. If the card is used for more than	943
the amount originally authorized and if for any reason that amount	944
is not authorized after the fact, the county treasury shall be	945
reimbursed for any amount spent beyond the originally authorized	946
amount in the following manner:	947

(a) If the card is issued in the name of a specific officer	948
or employee, the officer or employee is liable in person and upon	949
any official bond the officer or employee has given to the county	950
to reimburse the county treasury for the amount charged to the	951
county beyond the originally authorized amount.	952

(b) If the card is issued to the office of the appointing	953
authority, the appointing authority is liable in person and upon	954
any official bond the appointing authority has given to the county	955
for the amount charged to the county beyond the originally	956
authorized amount.	957

(2) No user of a county procurement card authorized for use	958
under division (F)(2) of this section shall use the card for any	959
expenditure that is more than the amount appropriated under that	960
division. If at any time a county procurement card authorized for	961
use under division (F)(2) of this section is used for more than	962
the amount appropriated under that division, the appointing	963
authority may request the board of county commissioners to issue a	964
supplemental appropriation or make a transfer to the specific	965
appropriation line items as permitted in section 5705.40 of the	966
Revised Code, to cover the amount charged beyond the originally	967
appropriated amount. If the card is used for more than the amount	968
originally appropriated and if for any reason that amount is not	969
appropriated or transferred as permitted by this division, the	970
county treasury shall be reimbursed for any amount spent beyond	971
the originally appropriated amount in the following manner:	972

(a) If the card is issued in the name of a specific officer	973
or employee, the officer or employee is liable in person and upon	974
any official bond the officer or employee has given to the county	975
for reimbursing the county treasury for any amount charged on the	976
card beyond the originally appropriated amount.	977

(b) If the card is issued in the name of the office of the	978
appointing authority, the appointing authority is liable in person	979
and upon any official bond the appointing authority has given to	980
the county for reimbursement for any amount charged on the card	981
beyond the originally appropriated amount.	982

(3) Whenever any officer or employee who is authorized to use	983
a procurement card held by the board or the office of any other	984
county appointing authority suspects the loss, theft, or	985
possibility of unauthorized or unlawful use of the card, the	986
officer or employee shall notify the county auditor and the	987
officer's or employee's appointing authority or the board	988
immediately and in writing.	989

(4) If the county auditor determines there has been a	990
procurement card expenditure beyond the appropriated or authorized	991
amount as provided in division (F) of this section, or for an	992
unlawful purpose, the auditor immediately shall notify the board	993
of county commissioners. When the board determines, on its own or	994
after notification from the county auditor, that the county	995
treasury should be reimbursed for procurement card expenditures	996
beyond the appropriated or authorized amount as provided in	997
divisions (G)(1) and (2) of this section, it shall give written	998
notice to the county auditor and to the officer or employee or	999
appointing authority liable to the treasury as provided in those	1000
divisions. If, within thirty days after issuance of this written	1001
notice, the county treasury is not reimbursed for the amount shown	1002
on the written notice, the prosecuting attorney of the county	1003
shall recover that amount from the officer or employee or	1004
appointing authority who is liable under this section by civil	1005
action in any court of appropriate jurisdiction.	1006

(H) Use of a county procurement card for any use other than	1007
those permitted under division (B) of this section is a violation	1008
of law for the purposes of section 2913.21 of the Revised Code.	1009

Sec. 505.10.  The board of township trustees may accept, on	1010
behalf of the township, the donation by bequest, devise, deed of	1011
gift, or otherwise, of any real or personal property for any	1012
township use. When the township has property, including motor	1013
vehicles, road machinery, equipment, and tools, which the board,	1014
by resolution, finds it doesis not needneeded for public use, is	1015
obsolete, or is unfit for the use for which it was acquired, the	1016
board may sell and convey that property or otherwise dispose of it	1017
in accordance with this section. Except as otherwise provided in	1018
sections 505.08, 505.101, and 505.102 of the Revised Code, the	1019
sale or other disposition of unneeded, obsolete, or unfit for use	1020
property shall be made in accordance with one of the following:	1021

(A)(1) If the fair market value of property to be sold is, in	1022
the opinion of the board, in excess of two thousand five hundred	1023
dollars, the sale shall be by public auction, and theor by sealed	1024
bid to the highest bidder. The board shall publish notice of the	1025
time, place, and manner of the sale once a week for three weeks in	1026
a newspaper published, or of general circulation, in the township,	1027
the last of those publications to be at least five days before the	1028
date of sale, and shall post a typewritten or printed notice of	1029
the time, place, and manner of the sale in the office of the board	1030
for at least ten days prior to the sale.	1031

If the board conducts the sale of the property by sealed bid,	1032
the form of the bid shall be as prescribed by the board, and each	1033
bid shall contain the name of the person submitting it. Bids	1034
received shall be opened and tabulated at the time stated in the	1035
published and posted notices. The property shall be sold to the	1036
highest bidder, except that the board may reject all bids and hold	1037
another sale, by public auction or sealed bid, in the manner	1038
prescribed by this section.	1039

(2) If the fair market value of property to be sold is, in	1040
the opinion of the board, two thousand five hundred dollars or	1041
less, the board may sell the property by private sale, without	1042
advertisement or public notification.	1043

(3) If the board finds, by resolution, that the township has	1044
motor vehicles, road machinery, equipment, or tools which are not	1045
needed or are unfit for public use, and the board wishes to sell	1046
the motor vehicles, road machinery, equipment, or tools to the	1047
person or firm from which it proposes to purchase other motor	1048
vehicles, road machinery, equipment, or tools, the board may offer	1049
to sell the motor vehicles, road machinery, equipment, or tools to	1050
that person or firm, and to have the selling price credited to the	1051
person or firm against the purchase price of other motor vehicles,	1052
road machinery, equipment, or tools.	1053

(4) If the board advertises for bids for the sale of new	1054
motor vehicles, road machinery, equipment, or tools to the	1055
township, it may include in the same advertisement a notice of the	1056
willingness of the board to accept bids for the purchase of	1057
township-owned motor vehicles, road machinery, equipment, or tools	1058
which are obsolete or not needed for public use, and to have the	1059
amount of those bids subtracted from the selling price of the new	1060
motor vehicles, road machinery, equipment, or tools, as a means of	1061
determining the lowest responsible bidder.	1062

(5) When a township has title to real property, the board of	1063
township trustees, by resolution, may authorize the transfer and	1064
conveyance of that property to any other political subdivision of	1065
the state upon such terms as are agreed to between the board and	1066
the legislative authority of that political subdivision.	1067

(6) When a township has title to real property and the board	1068
of township trustees wishes to sell or otherwise transfer the	1069
property, the board, upon a unanimous vote of its members and by	1070
resolution, may authorize the transfer and conveyance of that real	1071
property to any person upon whatever terms are agreed to between	1072
the board and that person.	1073

(7) If the board of township trustees determines that	1074
township personal property is not needed for public use, or is	1075
obsolete or unfit for the use for which it was acquired, and that	1076
the property has no value, the board may discard or salvage that	1077
property.	1078

(B) When the board has offered property at public auction	1079
under this section and has not received an acceptable offer, the	1080
board, by resolution, may enter into a contract, without	1081
advertising or bidding, for the sale of that property. The	1082
resolution shall specify a minimum acceptable price and the	1083
minimum acceptable terms for the contract. The minimum acceptable	1084
price shall not be lower than the minimum price established for	1085
the public auction.	1086

(C) Notwithstanding anything to the contrary in division (A)	1087
or (B) of this section and regardless of the property's value, the	1088
board of township trustees may sell personal property, including	1089
motor vehicles, road machinery, equipment, tools, or supplies,	1090
which is not needed for public use, or is obsolete or unfit for	1091
the use for which it was acquired, by internet auction. The board	1092
shall adopt, during each calendar year, a resolution expressing	1093
its intent to sell that property by internet auction. The	1094
resolution shall include a description of how the auctions will be	1095
conducted and shall specify the number of days for bidding on the	1096
property, which shall be no less than fifteen days, including	1097
Saturdays, Sundays, and legal holidays. The resolution shall	1098
indicate whether the township will conduct the auction or the	1099
board will contract with a representative to conduct the auction	1100
and shall establish the general terms and conditions of sale. If a	1101
representative is known when the resolution is adopted, the	1102
resolution shall provide contact information such as the	1103
representative's name, address, and telephone number.	1104

After adoption of the resolution, the board shall publish, in	1105
a newspaper of general circulation in the township, notice of its	1106
intent to sell unneeded, obsolete, or unfit for use township	1107
personal property by internet auction. The notice shall include a	1108
summary of the information provided in the resolution and shall be	1109
published at least twice. The second and any subsequent notice	1110
shall be published not less than ten nor more than twenty days	1111
after the previous notice. A clerk also shall post a similar	1112
notice throughout the calendar year in a conspicuous place in the	1113
board's office, and, if the township maintains a websiteweb site	1114
on the internet, the notice shall be posted continually throughout	1115
the calendar year at that websiteweb site.	1116

When property is to be sold by internet auction, the board or	1117
its representative may establish a minimum price that will be	1118
accepted for specific items and may establish any other terms and	1119
conditions for the particular sale, including requirements for	1120
pick-up or delivery, method of payment, and sales tax. This type	1121
of information shall be provided on the internet at the time of	1122
the auction and may be provided before that time upon request	1123
after the terms and conditions have been determined by the board	1124
or its representative.	1125

As used in this section, "internet" means the international	1126
computer network of both federal and nonfederal interoperable	1127
packet switched data networks, including the graphical subnetwork	1128
called the world wide web.	1129

Sec. 2913.01.  As used in this chapter, unless the context	1130
requires that a term be given a different meaning:	1131

(A) "Deception" means knowingly deceiving another or causing	1132
another to be deceived by any false or misleading representation,	1133
by withholding information, by preventing another from acquiring	1134
information, or by any other conduct, act, or omission that	1135
creates, confirms, or perpetuates a false impression in another,	1136
including a false impression as to law, value, state of mind, or	1137
other objective or subjective fact.	1138

(B) "Defraud" means to knowingly obtain, by deception, some	1139
benefit for oneself or another, or to knowingly cause, by	1140
deception, some detriment to another.	1141

(C) "Deprive" means to do any of the following:

1142

(1) Withhold property of another permanently, or for a period	1143
that appropriates a substantial portion of its value or use, or	1144
with purpose to restore it only upon payment of a reward or other	1145
consideration;	1146

(2) Dispose of property so as to make it unlikely that the	1147
owner will recover it;	1148

(3) Accept, use, or appropriate money, property, or services,	1149
with purpose not to give proper consideration in return for the	1150
money, property, or services, and without reasonable justification	1151
or excuse for not giving proper consideration.	1152

(D) "Owner" means, unless the context requires a different	1153
meaning, any person, other than the actor, who is the owner of,	1154
who has possession or control of, or who has any license or	1155
interest in property or services, even though the ownership,	1156
possession, control, license, or interest is unlawful.	1157

(E) "Services" include labor, personal services, professional	1158
services, public utility services, common carrier services, and	1159
food, drink, transportation, entertainment, and cable television	1160
services and, for purposes of section 2913.04 of the Revised Code,	1161
include cable services as defined in that section.	1162

(F) "Writing" means any computer software, document, letter,	1163
memorandum, note, paper, plate, data, film, or other thing having	1164
in or upon it any written, typewritten, or printed matter, and any	1165
token, stamp, seal, credit card, badge, trademark, label, or other	1166
symbol of value, right, privilege, license, or identification.	1167

(G) "Forge" means to fabricate or create, in whole or in part	1168
and by any means, any spurious writing, or to make, execute,	1169
alter, complete, reproduce, or otherwise purport to authenticate	1170
any writing, when the writing in fact is not authenticated by that	1171
conduct.	1172

(H) "Utter" means to issue, publish, transfer, use, put or	1173
send into circulation, deliver, or display.	1174

(I) "Coin machine" means any mechanical or electronic device	1175
designed to do both of the following:	1176

(1) Receive a coin, bill, or token made for that purpose;

1177

(2) In return for the insertion or deposit of a coin, bill,	1178
or token, automatically dispense property, provide a service, or	1179
grant a license.	1180

(J) "Slug" means an object that, by virtue of its size,	1181
shape, composition, or other quality, is capable of being inserted	1182
or deposited in a coin machine as an improper substitute for a	1183
genuine coin, bill, or token made for that purpose.	1184

(K) "Theft offense" means any of the following:

1185

(1) A violation of section 2911.01, 2911.02, 2911.11,	1186
2911.12, 2911.13, 2911.31, 2911.32, 2913.02, 2913.03, 2913.04,	1187
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	1188
2913.33, 2913.34, 2913.40, 2913.42, 2913.43, 2913.44, 2913.45,	1189
2913.47, former section 2913.47 or 2913.48, or section 2913.51,	1190
2915.05, or 2921.41 of the Revised Code;	1191

(2) A violation of an existing or former municipal ordinance	1192
or law of this or any other state, or of the United States,	1193
substantially equivalent to any section listed in division (K)(1)	1194
of this section or a violation of section 2913.41, 2913.81, or	1195
2915.06 of the Revised Code as it existed prior to July 1, 1996;	1196

(3) An offense under an existing or former municipal	1197
ordinance or law of this or any other state, or of the United	1198
States, involving robbery, burglary, breaking and entering, theft,	1199
embezzlement, wrongful conversion, forgery, counterfeiting,	1200
deceit, or fraud;	1201

(4) A conspiracy or attempt to commit, or complicity in	1202
committing, any offense under division (K)(1), (2), or (3) of this	1203
section.	1204

(L) "Computer services" includes, but is not limited to, the	1205
use of a computer system, computer network, computer program, data	1206
that is prepared for computer use, or data that is contained	1207
within a computer system or computer network.	1208

(M) "Computer" means an electronic device that performs	1209
logical, arithmetic, and memory functions by the manipulation of	1210
electronic or magnetic impulses. "Computer" includes, but is not	1211
limited to, all input, output, processing, storage, computer	1212
program, or communication facilities that are connected, or	1213
related, in a computer system or network to an electronic device	1214
of that nature.	1215

(N) "Computer system" means a computer and related devices,	1216
whether connected or unconnected, including, but not limited to,	1217
data input, output, and storage devices, data communications	1218
links, and computer programs and data that make the system capable	1219
of performing specified special purpose data processing tasks.	1220

(O) "Computer network" means a set of related and remotely	1221
connected computers and communication facilities that includes	1222
more than one computer system that has the capability to transmit	1223
among the connected computers and communication facilities through	1224
the use of computer facilities.	1225

(P) "Computer program" means an ordered set of data	1226
representing coded instructions or statements that, when executed	1227
by a computer, cause the computer to process data.	1228

(Q) "Computer software" means computer programs, procedures,	1229
and other documentation associated with the operation of a	1230
computer system.	1231

(R) "Data" means a representation of information, knowledge,	1232
facts, concepts, or instructions that are being or have been	1233
prepared in a formalized manner and that are intended for use in a	1234
computer, computer system, or computer network. For purposes of	1235
section 2913.47 of the Revised Code, "data" has the additional	1236
meaning set forth in division (A) of that section.	1237

(S) "Cable television service" means any services provided by	1238
or through the facilities of any cable television system or other	1239
similar closed circuit coaxial cable communications system, or any	1240
microwave or similar transmission service used in connection with	1241
any cable television system or other similar closed circuit	1242
coaxial cable communications system.	1243

(T) "Gain access" means to approach, instruct, communicate	1244
with, store data in, retrieve data from, or otherwise make use of	1245
any resources of a computer, computer system, or computer network,	1246
or any cable service or cable system both as defined in section	1247
2913.04 of the Revised Code.	1248

(U) "Credit card" includes, but is not limited to, a card,	1249
code, device, or other means of access to a customer's account for	1250
the purpose of obtaining money, property, labor, or services on	1251
credit, or for initiating an electronic fund transfer at a	1252
point-of-sale terminal, an automated teller machine, or a cash	1253
dispensing machine. It also includes a county procurement card	1254
issued under section 301.29 of the Revised Code.	1255

(V) "Electronic fund transfer" has the same meaning as in 92	1256
Stat. 3728, 15 U.S.C.A. 1693a, as amended.	1257

(W) "Rented property" means personal property in which the	1258
right of possession and use of the property is for a short and	1259
possibly indeterminate term in return for consideration; the	1260
rentee generally controls the duration of possession of the	1261
property, within any applicable minimum or maximum term; and the	1262
amount of consideration generally is determined by the duration of	1263
possession of the property.	1264

(X) "Telecommunication" means the origination, emission,	1265
dissemination, transmission, or reception of data, images,	1266
signals, sounds, or other intelligence or equivalence of	1267
intelligence of any nature over any communications system by any	1268
method, including, but not limited to, a fiber optic, electronic,	1269
magnetic, optical, digital, or analog method.	1270

(Y) "Telecommunications device" means any instrument,	1271
equipment, machine, or other device that facilitates	1272
telecommunication, including, but not limited to, a computer,	1273
computer network, computer chip, computer circuit, scanner,	1274
telephone, cellular telephone, pager, personal communications	1275
device, transponder, receiver, radio, modem, or device that	1276
enables the use of a modem.	1277

(Z) "Telecommunications service" means the providing,	1278
allowing, facilitating, or generating of any form of	1279
telecommunication through the use of a telecommunications device	1280
over a telecommunications system.	1281

(AA) "Counterfeit telecommunications device" means a	1282
telecommunications device that, alone or with another	1283
telecommunications device, has been altered, constructed,	1284
manufactured, or programmed to acquire, intercept, receive, or	1285
otherwise facilitate the use of a telecommunications service or	1286
information service without the authority or consent of the	1287
provider of the telecommunications service or information service.	1288
"Counterfeit telecommunications device" includes, but is not	1289
limited to, a clone telephone, clone microchip, tumbler telephone,	1290
or tumbler microchip; a wireless scanning device capable of	1291
acquiring, intercepting, receiving, or otherwise facilitating the	1292
use of telecommunications service or information service without	1293
immediate detection; or a device, equipment, hardware, or software	1294
designed for, or capable of, altering or changing the electronic	1295
serial number in a wireless telephone.	1296

(BB)(1) "Information service" means, subject to division	1297
(BB)(2) of this section, the offering of a capability for	1298
generating, acquiring, storing, transforming, processing,	1299
retrieving, utilizing, or making available information via	1300
telecommunications, including, but not limited to, electronic	1301
publishing.	1302

(2) "Information service" does not include any use of a	1303
capability of a type described in division (BB)(1) of this section	1304
for the management, control, or operation of a telecommunications	1305
system or the management of a telecommunications service.	1306

(CC) "Elderly person" means a person who is sixty-five years	1307
of age or older.	1308

(DD) "Disabled adult" means a person who is eighteen years of	1309
age or older and has some impairment of body or mind that makes	1310
the person unfit to work at any substantially remunerative	1311
employment that the person otherwise would be able to perform and	1312
that will, with reasonable probability, continue for a period of	1313
at least twelve months without any present indication of recovery	1314
from the impairment, or who is eighteen years of age or older and	1315
has been certified as permanently and totally disabled by an	1316
agency of this state or the United States that has the function of	1317
so classifying persons.	1318

(EE) "Firearm" and "dangerous ordnance" have the same	1319
meanings as in section 2923.11 of the Revised Code.	1320

(FF) "Motor vehicle" has the same meaning as in section	1321
4501.01 of the Revised Code.	1322

(GG) "Dangerous drug" has the same meaning as in section	1323
4729.01 of the Revised Code.	1324

(HH) "Drug abuse offense" has the same meaning as in section	1325
2925.01 of the Revised Code.	1326

Sec. 5575.01. (A) In the maintenance and repair of roads,	1327
the board of township trustees may proceed either by contract or	1328
force account, provided the board hasbut, unless the exemption	1329
specified in division (C) of this section applies, if the board	1330
wishes to proceed by force account, it first causedshall cause	1331
the county engineer to complete the force account assessment form	1332
developed by the auditor of state under section 117.16 of the	1333
Revised Code. Except as otherwise provided in sections 505.08 and	1334
505.101 of the Revised Code, when the board proceeds by contract,	1335
the contract shall, if the amount involved exceeds forty-five	1336
thousand dollars, be let by the board to the lowest responsible	1337
bidder after advertisement for bids once, not later than two	1338
weeks, prior to the date fixed for the letting of suchthe	1339
contract, in a newspaper published in the county and of general	1340
circulation within the township, butor, if there is no such paper	1341
newspaper is published in the county, then in onea newspaper	1342
having general circulation in the township. If the amount involved	1343
is forty-five thousand dollars or less, a contract may be let	1344
without competitive bidding, or the work may be done by force	1345
account. Such a contract shall be performed under the supervision	1346
of a member of the board or the township road superintendent.	1347

(B) Before undertaking the construction or reconstruction of	1348
a township road, the board shall cause to be made by the county	1349
engineer an estimate of the cost of suchthe work, which estimate	1350
shall include labor, material, freight, fuel, hauling, use of	1351
machinery and equipment, and all other items of cost. If the board	1352
finds it in the best interest of the public, it may, in lieu of	1353
constructing the road by contract, proceed to construct the road	1354
by force account. Except as otherwise provided under sections	1355
505.08 and 505.101 of the Revised Code, where the total estimate	1356
cost of the work exceeds fifteen thousand dollars per mile, the	1357
board shall invite and receive competitive bids for furnishing all	1358
the labor, materials, and equipment and doing the work, as	1359
provided in section 5575.02 of the Revised Code, and shall	1360
consider and reject them before ordering the work done by force	1361
account. When such bids are received, considered, and rejected,	1362
and the work is done by force account, suchthe work shall be	1363
performed in compliance with the plans and specifications upon	1364
which the bids were based.	1365

(C) Force account assessment forms are not required under	1366
division (A) of this section for road maintenance or repair	1367
projects of less than fifteen thousand dollars, or under division	1368
(B) of this section for road construction or reconstruction	1369
projects of less than five thousand dollars per mile.	1370

(D) All force account work under this section shall be done	1371
under the direction of a member of the board or the township road	1372
superintendent.	1373

Sec. 5705.41.  No subdivision or taxing unit shall:

1374

(A) Make any appropriation of money except as provided in	1375
Chapter 5705. of the Revised Code; provided, that the	1376
authorization of a bond issue shall be deemed to be an	1377
appropriation of the proceeds of the bond issue for the purpose	1378
for which such bonds were issued, but no expenditure shall be made	1379
from any bond fund until first authorized by the taxing authority;	1380

(B) Make any expenditure of money unless it has been	1381
appropriated as provided in such chapter;	1382

(C) Make any expenditure of money except by a proper warrant	1383
drawn against an appropriate fund;	1384

(D)(1) Except as otherwise provided in division (D)(2) of	1385
this section and section 5705.44 of the Revised Code, make any	1386
contract or give any order involving the expenditure of money	1387
unless there is attached thereto a certificate of the fiscal	1388
officer of the subdivision that the amount required to meet the	1389
obligation or, in the case of a continuing contract to be	1390
performed in whole or in part in an ensuing fiscal year, the	1391
amount required to meet the obligation in the fiscal year in which	1392
the contract is made, has been lawfully appropriated for such	1393
purpose and is in the treasury or in process of collection to the	1394
credit of an appropriate fund free from any previous encumbrances.	1395
This certificate need be signed only by the subdivision's fiscal	1396
officer. Every such contract made without such a certificate shall	1397
be void, and no warrant shall be issued in payment of any amount	1398
due thereon. If no certificate is furnished as required, upon	1399
receipt by the taxing authority of the subdivision or taxing unit	1400
of a certificate of the fiscal officer stating that there was at	1401
the time of the making of such contract or order and at the time	1402
of the execution of such certificate a sufficient sum appropriated	1403
for the purpose of such contract and in the treasury or in process	1404
of collection to the credit of an appropriate fund free from any	1405
previous encumbrances, such taxing authority may authorize the	1406
drawing of a warrant in payment of amounts due upon such contract,	1407
but such resolution or ordinance shall be passed within thirty	1408
days after the taxing authority receives such certificate;	1409
provided that, if the amount involved is less than one hundred	1410
dollars in the case of counties or three thousand dollars in the	1411
case of all other subdivisions or taxing units, the fiscal officer	1412
may authorize it to be paid without such affirmation of the taxing	1413
authority of the subdivision or taxing unit, if such expenditure	1414
is otherwise valid.	1415

(2) Annually, the board of county commissioners may adopt a	1416
resolution exempting for the current fiscal year county purchases	1417
of seven hundred fiftyone thousand dollars or less from the	1418
requirement of division (D)(1) of this section that a certificate	1419
be attached to any contract or order involving the expenditure of	1420
money. The resolution shall state the dollar amount that is	1421
exempted from the certificate requirement and whether the	1422
exemption applies to all purchases, to one or more specific	1423
classes of purchases, or to the purchase of one or more specific	1424
items. Prior to the adoption of the resolution, the board shall	1425
give written notice to the county auditor that it intends to adopt	1426
the resolution. The notice shall state the dollar amount that is	1427
proposed to be exempted and whether the exemption would apply to	1428
all purchases, to one or more specific classes of purchases, or to	1429
the purchase of one or more specific items. The county auditor may	1430
review and comment on the proposal, and shall send any comments to	1431
the board within fifteen days after receiving the notice. The	1432
board shall wait at least fifteen days after giving the notice to	1433
the auditor before adopting the resolution. A person authorized to	1434
make a county purchase in a county that has adopted such a	1435
resolution shall prepare and file with the county auditor, within	1436
three business days after incurring an obligation not requiring a	1437
certificate, or within any other period of time the board of	1438
county commissioners specifies in the resolution, a written or	1439
electronically transferred document specifying the purpose and	1440
amount of the expenditure, the date of the purchase, the name of	1441
the vendor, the specific appropriation items from which the	1442
expenditures are to be made, and suchany additional information	1443
as the auditor of state may prescribe.	1444

(3) Upon certification by the auditor or other chief fiscal	1445
officer that a certain sum of money, not in excess of an amount	1446
established by resolution or ordinance adopted by a majority of	1447
the members of the legislative authority of the subdivision or	1448
taxing unit, has been lawfully appropriated, authorized, or	1449
directed for a certain purpose and is in the treasury or in the	1450
process of collection to the credit of a specific line-item	1451
appropriation account in a certain fund free from previous and	1452
then outstanding obligations or certifications, then for such	1453
purpose and from such line-item appropriation account in such	1454
fund, over a period not extending beyond the end of the fiscal	1455
year, expenditures may be made, orders for payment issued, and	1456
contracts or obligations calling for or requiring the payment of	1457
money made and assumed; provided, that the aggregate sum of money	1458
included in and called for by such expenditures, orders,	1459
contracts, and obligations shall not exceed the sum so certified.	1460
Such a certification need be signed only by the fiscal officer of	1461
the subdivision or the taxing district and may, but need not, be	1462
limited to a specific vendor. An itemized statement of obligations	1463
incurred and expenditures made under such certificate shall be	1464
rendered to the auditor or other chief fiscal officer before	1465
another such certificate may be issued, and not more than one such	1466
certificate shall be outstanding at a time.	1467

In addition to providing the certification for expenditures	1468
as specified in this division, a subdivision also may make	1469
expenditures, issue orders for payment, and make contracts or	1470
obligations calling for or requiring the payment of money made and	1471
assumed for specified permitted purposes from a specific line-item	1472
appropriation account in a specified fund for a sum of money upon	1473
the certification by the fiscal officer of the subdivision that	1474
this sum of money has been lawfully appropriated, authorized, or	1475
directed for a permitted purpose and is in the treasury or in the	1476
process of collection to the credit of the specific line-item	1477
appropriation account in the specified fund free from previous and	1478
then-outstanding obligations or certifications; provided that the	1479
aggregate sum of money included in and called for by the	1480
expenditures, orders, and obligations shall not exceed the	1481
certified sum. The purposes for which a subdivision may lawfully	1482
appropriate, authorize, or issue such a certificate are the	1483
services of an accountant, architect, attorney at law, physician,	1484
professional engineer, construction project manager, consultant,	1485
surveyor, or appraiser by or on behalf of the subdivision or	1486
contracting authority; fuel oil, gasoline, food items, roadway	1487
materials, and utilities; and any purchases exempt from	1488
competitive bidding under section 125.04 of the Revised Code and	1489
any other specific expenditure that is a recurring and reasonably	1490
predictable operating expense. Such a certification shall not	1491
extend beyond the end of the fiscal year or, in the case of a	1492
board of county commissioners that has established a quarterly	1493
spending plan under section 5705.392 of the Revised Code, beyond	1494
the quarter to which the plan applies. Such a certificate shall be	1495
signed by the fiscal officer and may, but need not, be limited to	1496
a specific vendor. An itemized statement of obligations incurred	1497
and expenditures made under such a certificate shall be rendered	1498
to the fiscal officer for each certificate issued. More than one	1499
such certificate may be outstanding at any time.	1500

In any case in which a contract is entered into upon a per	1501
unit basis, the head of the department, board, or commission for	1502
the benefit of which the contract is made shall make an estimate	1503
of the total amount to become due upon such contract, which	1504
estimate shall be certified in writing to the fiscal officer of	1505
the subdivision. Such a contract may be entered into if the	1506
appropriation covers such estimate, or so much thereof as may be	1507
due during the current year. In such a case the certificate of the	1508
fiscal officer based upon the estimate shall be a sufficient	1509
compliance with the law requiring a certificate.	1510

Any certificate of the fiscal officer attached to a contract	1511
shall be binding upon the political subdivision as to the facts	1512
set forth therein. Upon request of any person receiving an order	1513
or entering into a contract with any political subdivision, the	1514
certificate of the fiscal officer shall be attached to such order	1515
or contract. "Contract" as used in this section excludes current	1516
payrolls of regular employees and officers.	1517

(E) Taxes and other revenue in process of collection, or the	1518
proceeds to be derived from authorized bonds, notes, or	1519
certificates of indebtedness sold and in process of delivery,	1520
shall for the purpose of this section be deemed in the treasury or	1521
in process of collection and in the appropriate fund. This section	1522
applies neither to the investment of sinking funds by the trustees	1523
of such funds, nor to investments made under sections 731.56 to	1524
731.59 of the Revised Code.	1525

No district authority shall, in transacting its own affairs,	1526
do any of the things prohibited to a subdivision by this section,	1527
but the appropriation referred to shall become the appropriation	1528
by the district authority, and the fiscal officer referred to	1529
shall mean the fiscal officer of the district authority.	1530

Sec. 5709.62.  (A) In any municipal corporation that is	1531
defined by the United States office of management and budget as a	1532
central city of a metropolitan statistical area, or in a city	1533
designated as an urban cluster in a rural statistical area, the	1534
legislative authority of the municipal corporation may designate	1535
one or more areas within its municipal corporation as proposed	1536
enterprise zones. Upon designating an area, the legislative	1537
authority shall petition the director of development for	1538
certification of the area as having the characteristics set forth	1539
in division (A)(1) of section 5709.61 of the Revised Code as	1540
amended by Substitute Senate Bill No. 19 of the 120th general	1541
assembly. Except as otherwise provided in division (E) of this	1542
section, on and after July 1, 1994, legislative authorities shall	1543
not enter into agreements under this section unless the	1544
legislative authority has petitioned the director and the director	1545
has certified the zone under this section as amended by that act;	1546
however, all agreements entered into under this section as it	1547
existed prior to July 1, 1994, and the incentives granted under	1548
those agreements shall remain in effect for the period agreed to	1549
under those agreements. Within sixty days after receiving such a	1550
petition, the director shall determine whether the area has the	1551
characteristics set forth in division (A)(1) of section 5709.61 of	1552
the Revised Code, and shall forward the findings to the	1553
legislative authority of the municipal corporation. If the	1554
director certifies the area as having those characteristics, and	1555
thereby certifies it as a zone, the legislative authority may	1556
enter into an agreement with an enterprise under division (C) of	1557
this section.	1558

(B) Any enterprise that wishes to enter into an agreement	1559
with a municipal corporation under division (C) of this section	1560
shall submit a proposal to the legislative authority of the	1561
municipal corporation on a form prescribed by the director of	1562
development, together with the application fee established under	1563
section 5709.68 of the Revised Code. The form shall require the	1564
following information:	1565

(1) An estimate of the number of new employees whom the	1566
enterprise intends to hire, or of the number of employees whom the	1567
enterprise intends to retain, within the zone at a facility that	1568
is a project site, and an estimate of the amount of payroll of the	1569
enterprise attributable to these employees;	1570

(2) An estimate of the amount to be invested by the	1571
enterprise to establish, expand, renovate, or occupy a facility,	1572
including investment in new buildings, additions or improvements	1573
to existing buildings, machinery, equipment, furniture, fixtures,	1574
and inventory;	1575

(3) A listing of the enterprise's current investment, if any,	1576
in a facility as of the date of the proposal's submission.	1577

The enterprise shall review and update the listings required	1578
under this division to reflect material changes, and any agreement	1579
entered into under division (C) of this section shall set forth	1580
final estimates and listings as of the time the agreement is	1581
entered into. The legislative authority may, on a separate form	1582
and at any time, require any additional information necessary to	1583
determine whether an enterprise is in compliance with an agreement	1584
and to collect the information required to be reported under	1585
section 5709.68 of the Revised Code.	1586

(C) Upon receipt and investigation of a proposal under	1587
division (B) of this section, if the legislative authority finds	1588
that the enterprise submitting the proposal is qualified by	1589
financial responsibility and business experience to create and	1590
preserve employment opportunities in the zone and improve the	1591
economic climate of the municipal corporation, the legislative	1592
authority, on or before October 15, 2009, may do one of the	1593
following:	1594

(1) Enter into an agreement with the enterprise under which	1595
the enterprise agrees to establish, expand, renovate, or occupy a	1596
facility and hire new employees, or preserve employment	1597
opportunities for existing employees, in return for one or more of	1598
the following incentives:	1599

(a) Exemption for a specified number of years, not to exceed	1600
ten, of a specified portion, up to seventy-five per cent, of the	1601
assessed value of tangible personal property first used in	1602
business at the project site as a result of the agreement. An	1603
exemption granted pursuant to this division applies to inventory	1604
required to be listed pursuant to sections 5711.15 and 5711.16 of	1605
the Revised Code, except that, in the instance of an expansion or	1606
other situations in which an enterprise was in business at the	1607
facility prior to the establishment of the zone, the inventory	1608
that is exempt is that amount or value of inventory in excess of	1609
the amount or value of inventory required to be listed in the	1610
personal property tax return of the enterprise in the return for	1611
the tax year in which the agreement is entered into.	1612

(b) Exemption for a specified number of years, not to exceed	1613
ten, of a specified portion, up to seventy-five per cent, of the	1614
increase in the assessed valuation of real property constituting	1615
the project site subsequent to formal approval of the agreement by	1616
the legislative authority;	1617

(c) Provision for a specified number of years, not to exceed	1618
ten, of any optional services or assistance that the municipal	1619
corporation is authorized to provide with regard to the project	1620
site.	1621

(2) Enter into an agreement under which the enterprise agrees	1622
to remediate an environmentally contaminated facility, to spend an	1623
amount equal to at least two hundred fifty per cent of the true	1624
value in money of the real property of the facility prior to	1625
remediation as determined for the purposes of property taxation to	1626
establish, expand, renovate, or occupy the remediated facility,	1627
and to hire new employees or preserve employment opportunities for	1628
existing employees at the remediated facility, in return for one	1629
or more of the following incentives:	1630

(a) Exemption for a specified number of years, not to exceed	1631
ten, of a specified portion, not to exceed fifty per cent, of the	1632
assessed valuation of the real property of the facility prior to	1633
remediation;	1634

(b) Exemption for a specified number of years, not to exceed	1635
ten, of a specified portion, not to exceed one hundred per cent,	1636
of the increase in the assessed valuation of the real property of	1637
the facility during or after remediation;	1638

(c) The incentive under division (C)(1)(a) of this section,	1639
except that the percentage of the assessed value of such property	1640
exempted from taxation shall not exceed one hundred per cent;	1641

(d) The incentive under division (C)(1)(c) of this section.

1642

(3) Enter into an agreement with an enterprise that plans to	1643
purchase and operate a large manufacturing facility that has	1644
ceased operation or announced its intention to cease operation, in	1645
return for exemption for a specified number of years, not to	1646
exceed ten, of a specified portion, up to one hundred per cent, of	1647
the assessed value of tangible personal property used in business	1648
at the project site as a result of the agreement, or of the	1649
assessed valuation of real property constituting the project site,	1650
or both.	1651

(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this	1652
section, the portion of the assessed value of tangible personal	1653
property or of the increase in the assessed valuation of real	1654
property exempted from taxation under those divisions may exceed	1655
seventy-five per cent in any year for which that portion is	1656
exempted if the average percentage exempted for all years in which	1657
the agreement is in effect does not exceed sixty per cent, or if	1658
the board of education of the city, local, or exempted village	1659
school district within the territory of which the property is or	1660
will be located approves a percentage in excess of seventy-five	1661
per cent.	1662

(2) Notwithstanding any provision of the Revised Code to the	1663
contrary, the exemptions described in divisions (C)(1)(a), (b),	1664
and (c), (C)(2)(a), (b), and (c), and (C)(3) of this section may	1665
be for up to fifteen years if the board of education of the city,	1666
local, or exempted village school district within the territory in	1667
which the property is or will be located approves a number of	1668
years in excess of ten, but only if the project that is part of	1669
the agreement includes a fixed asset investment of at least one	1670
hundred million dollars or the director of development determines	1671
there are extraordinary circumstances, and only if the project	1672
involves the enrichment and commercialization of uranium or	1673
uranium products or the research and development activities	1674
related to that enrichment or commercialization. For	1675

(3) For the purpose of obtaining such approvalthe approval	1676
of a city, local, or exempted village school district under	1677
division (D)(1) or (2) of this section, the legislative authority	1678
shall deliver to the board of education a notice not later than	1679
forty-five days prior to approving the agreement, excluding	1680
Saturdays, Sundays, and legal holidays as defined in section 1.14	1681
of the Revised Code. The notice shall state the percentage to be	1682
exempted, an estimate of the true value of the property to be	1683
exempted, and the number of years the property is to be exempted.	1684
The board of education, by resolution adopted by a majority of the	1685
board, shall approve or disapprove the agreement and certify a	1686
copy of the resolution to the legislative authority not later than	1687
fourteen days prior to the date stipulated by the legislative	1688
authority as the date upon which approval of the agreement is to	1689
be formally considered by the legislative authority. The board of	1690
education may include in the resolution conditions under which the	1691
board would approve the agreement, including the execution of an	1692
agreement to compensate the school district under division (B) of	1693
section 5709.82 of the Revised Code. The legislative authority may	1694
approve the agreement at any time after the board of education	1695
certifies its resolution approving the agreement to the	1696
legislative authority, or, if the board approves the agreement	1697
conditionally, at any time after the conditions are agreed to by	1698
the board and the legislative authority.	1699

If a board of education has adopted a resolution waiving its	1700
right to approve agreements and the resolution remains in effect,	1701
approval of an agreement by the board is not required under this	1702
division. If a board of education has adopted a resolution	1703
allowing a legislative authority to deliver the notice required	1704
under this division fewer than forty-five business days prior to	1705
the legislative authority's approval of the agreement, the	1706
legislative authority shall deliver the notice to the board not	1707
later than the number of days prior to such approval as prescribed	1708
by the board in its resolution. If a board of education adopts a	1709
resolution waiving its right to approve agreements or shortening	1710
the notification period, the board shall certify a copy of the	1711
resolution to the legislative authority. If the board of education	1712
rescinds such a resolution, it shall certify notice of the	1713
rescission to the legislative authority.	1714

(2)(4) The legislative authority shall comply with section	1715
5709.83 of the Revised Code unless the board of education has	1716
adopted a resolution under that section waiving its right to	1717
receive such notice.	1718

(E) This division applies to zones certified by the director	1719
of development under this section prior to July 22, 1994.	1720

On or before October 15, 2009, the legislative authority that	1721
designated a zone to which this division applies may enter into an	1722
agreement with an enterprise if the legislative authority makes	1723
the finding required under that division and determines that the	1724
enterprise satisfies one of the criteria described in divisions	1725
(E)(1) to (5) of this section:	1726

(1) The enterprise currently has no operations in this state	1727
and, subject to approval of the agreement, intends to establish	1728
operations in the zone;	1729

(2) The enterprise currently has operations in this state	1730
and, subject to approval of the agreement, intends to establish	1731
operations at a new location in the zone that would not result in	1732
a reduction in the number of employee positions at any of the	1733
enterprise's other locations in this state;	1734

(3) The enterprise, subject to approval of the agreement,	1735
intends to relocate operations, currently located in another	1736
state, to the zone;	1737

(4) The enterprise, subject to approval of the agreement,	1738
intends to expand operations at an existing site in the zone that	1739
the enterprise currently operates;	1740

(5) The enterprise, subject to approval of the agreement,	1741
intends to relocate operations, currently located in this state,	1742
to the zone, and the director of development has issued a waiver	1743
for the enterprise under division (B) of section 5709.633 of the	1744
Revised Code.	1745

The agreement shall require the enterprise to agree to	1746
establish, expand, renovate, or occupy a facility in the zone and	1747
hire new employees, or preserve employment opportunities for	1748
existing employees, in return for one or more of the incentives	1749
described in division (C) of this section.	1750

(F) All agreements entered into under this section shall be	1751
in the form prescribed under section 5709.631 of the Revised Code.	1752
After an agreement is entered into under this division, if the	1753
legislative authority revokes its designation of a zone, or if the	1754
director of development revokes the zone's certification, any	1755
entitlements granted under the agreement shall continue for the	1756
number of years specified in the agreement.	1757

(G) Except as otherwise provided in this division, an	1758
agreement entered into under this section shall require that the	1759
enterprise pay an annual fee equal to the greater of one per cent	1760
of the dollar value of incentives offered under the agreement or	1761
five hundred dollars; provided, however, that if the value of the	1762
incentives exceeds two hundred fifty thousand dollars, the fee	1763
shall not exceed two thousand five hundred dollars. The fee shall	1764
be payable to the legislative authority once per year for each	1765
year the agreement is effective on the days and in the form	1766
specified in the agreement. Fees paid shall be deposited in a	1767
special fund created for such purpose by the legislative authority	1768
and shall be used by the legislative authority exclusively for the	1769
purpose of complying with section 5709.68 of the Revised Code and	1770
by the tax incentive review council created under section 5709.85	1771
of the Revised Code exclusively for the purposes of performing the	1772
duties prescribed under that section. The legislative authority	1773
may waive or reduce the amount of the fee charged against an	1774
enterprise, but such a waiver or reduction does not affect the	1775
obligations of the legislative authority or the tax incentive	1776
review council to comply with section 5709.68 or 5709.85 of the	1777
Revised Code.	1778

(H) When an agreement is entered into pursuant to this	1779
section, the legislative authority authorizing the agreement shall	1780
forward a copy of the agreement to the director of development and	1781
to the tax commissioner within fifteen days after the agreement is	1782
entered into. If any agreement includes terms not provided for in	1783
section 5709.631 of the Revised Code affecting the revenue of a	1784
city, local, or exempted village school district or causing	1785
revenue to be foregone by the district, including any compensation	1786
to be paid to the school district pursuant to section 5709.82 of	1787
the Revised Code, those terms also shall be forwarded in writing	1788
to the director of development along with the copy of the	1789
agreement forwarded under this division.	1790

(I) After an agreement is entered into, the enterprise shall	1791
file with each personal property tax return required to be filed,	1792
or annual report required to be filed under section 5727.08 of the	1793
Revised Code, while the agreement is in effect, an informational	1794
return, on a form prescribed by the tax commissioner for that	1795
purpose, setting forth separately the property, and related costs	1796
and values, exempted from taxation under the agreement.	1797

(J) Enterprises may agree to give preference to residents of	1798
the zone within which the agreement applies relative to residents	1799
of this state who do not reside in the zone when hiring new	1800
employees under the agreement.	1801

(K) An agreement entered into under this section may include	1802
a provision requiring the enterprise to create one or more	1803
temporary internship positions for students enrolled in a course	1804
of study at a school or other educational institution in the	1805
vicinity, and to create a scholarship or provide another form of	1806
educational financial assistance for students holding such a	1807
position in exchange for the student's commitment to work for the	1808
enterprise at the completion of the internship.	1809

Sec. 5709.63.  (A) With the consent of the legislative	1810
authority of each affected municipal corporation or of a board of	1811
township trustees, a board of county commissioners may, in the	1812
manner set forth in section 5709.62 of the Revised Code, designate	1813
one or more areas in one or more municipal corporations or in	1814
unincorporated areas of the county as proposed enterprise zones. A	1815
board of county commissioners may designate no more than one area	1816
within a township, or within adjacent townships, as a proposed	1817
enterprise zone. The board shall petition the director of	1818
development for certification of the area as having the	1819
characteristics set forth in division (A)(1) or (2) of section	1820
5709.61 of the Revised Code as amended by Substitute Senate Bill	1821
No. 19 of the 120th general assembly. Except as otherwise provided	1822
in division (D) of this section, on and after July 1, 1994, boards	1823
of county commissioners shall not enter into agreements under this	1824
section unless the board has petitioned the director and the	1825
director has certified the zone under this section as amended by	1826
that act; however, all agreements entered into under this section	1827
as it existed prior to July 1, 1994, and the incentives granted	1828
under those agreements shall remain in effect for the period	1829
agreed to under those agreements. The director shall make the	1830
determination in the manner provided under section 5709.62 of the	1831
Revised Code. Any enterprise wishing to enter into an agreement	1832
with the board under division (B) or (D) of this section shall	1833
submit a proposal to the board on the form and accompanied by the	1834
application fee prescribed under division (B) of section 5709.62	1835
of the Revised Code. The enterprise shall review and update the	1836
estimates and listings required by the form in the manner required	1837
under that division. The board may, on a separate form and at any	1838
time, require any additional information necessary to determine	1839
whether an enterprise is in compliance with an agreement and to	1840
collect the information required to be reported under section	1841
5709.68 of the Revised Code.	1842

(B) If the board of county commissioners finds that an	1843
enterprise submitting a proposal is qualified by financial	1844
responsibility and business experience to create and preserve	1845
employment opportunities in the zone and to improve the economic	1846
climate of the municipal corporation or municipal corporations or	1847
the unincorporated areas in which the zone is located and to which	1848
the proposal applies, the board, on or before October 15, 2009,	1849
and with the consent of the legislative authority of each affected	1850
municipal corporation or of the board of township trustees may do	1851
either of the following:	1852

(1) Enter into an agreement with the enterprise under which	1853
the enterprise agrees to establish, expand, renovate, or occupy a	1854
facility in the zone and hire new employees, or preserve	1855
employment opportunities for existing employees, in return for the	1856
following incentives:	1857

(a) When the facility is located in a municipal corporation,	1858
the board may enter into an agreement for one or more of the	1859
incentives provided in division (C) of section 5709.62 of the	1860
Revised Code, subject to division (D) of that section;	1861

(b) When the facility is located in an unincorporated area,	1862
the board may enter into an agreement for one or more of the	1863
following incentives:	1864

(i) Exemption for a specified number of years, not to exceed	1865
ten, of a specified portion, up to sixty per cent, of the assessed	1866
value of tangible personal property first used in business at a	1867
project site as a result of the agreement. An exemption granted	1868
pursuant to this division applies to inventory required to be	1869
listed pursuant to sections 5711.15 and 5711.16 of the Revised	1870
Code, except, in the instance of an expansion or other situations	1871
in which an enterprise was in business at the facility prior to	1872
the establishment of the zone, the inventory that is exempt is	1873
that amount or value of inventory in excess of the amount or value	1874
of inventory required to be listed in the personal property tax	1875
return of the enterprise in the return for the tax year in which	1876
the agreement is entered into.	1877

(ii) Exemption for a specified number of years, not to exceed	1878
ten, of a specified portion, up to sixty per cent, of the increase	1879
in the assessed valuation of real property constituting the	1880
project site subsequent to formal approval of the agreement by the	1881
board;	1882

(iii) Provision for a specified number of years, not to	1883
exceed ten, of any optional services or assistance the board is	1884
authorized to provide with regard to the project site;	1885

(iv) The incentive described in division (C)(2) of section	1886
5709.62 of the Revised Code.	1887

(2) Enter into an agreement with an enterprise that plans to	1888
purchase and operate a large manufacturing facility that has	1889
ceased operation or has announced its intention to cease	1890
operation, in return for exemption for a specified number of	1891
years, not to exceed ten, of a specified portion, up to one	1892
hundred per cent, of tangible personal property used in business	1893
at the project site as a result of the agreement, or of real	1894
property constituting the project site, or both.	1895

(C)(1)(a) Notwithstanding divisions (B)(1)(b)(i) and (ii) of	1896
this section, the portion of the assessed value of tangible	1897
personal property or of the increase in the assessed valuation of	1898
real property exempted from taxation under those divisions may	1899
exceed sixty per cent in any year for which that portion is	1900
exempted if the average percentage exempted for all years in which	1901
the agreement is in effect does not exceed fifty per cent, or if	1902
the board of education of the city, local, or exempted village	1903
school district within the territory of which the property is or	1904
will be located approves a percentage in excess of sixty per cent.	1905

(b) Notwithstanding any provision of the Revised Code to the	1906
contrary, the exemptions described in divisions (B)(1)(b)(i),	1907
(ii), (iii), and (iv) and (B)(2) of this section may be for up to	1908
fifteen years if the board of education of the city, local, or	1909
exempted village school district within the territory in which the	1910
property is or will be located approves a number of years in	1911
excess of ten, but only if the project that is part of the	1912
agreement includes a fixed asset investment of at least one	1913
hundred million dollars or the director of development determines	1914
there are extraordinary circumstances, and only if the project	1915
involves the enrichment and commercialization of uranium or	1916
uranium products or the research and development activities	1917
related to that enrichment or commercialization. For	1918

(c) For the purpose of obtaining such approvalthe approval	1919
of a city, local, or exempted village school district under	1920
division (C)(1)(a) or (b) of this section, the board of	1921
commissioners shall deliver to the board of education a notice not	1922
later than forty-five days prior to approving the agreement,	1923
excluding Saturdays, Sundays, and legal holidays as defined in	1924
section 1.14 of the Revised Code. The notice shall state the	1925
percentage to be exempted, an estimate of the true value of the	1926
property to be exempted, and the number of years the property is	1927
to be exempted. The board of education, by resolution adopted by a	1928
majority of the board, shall approve or disapprove the agreement	1929
and certify a copy of the resolution to the board of commissioners	1930
not later than fourteen days prior to the date stipulated by the	1931
board of commissioners as the date upon which approval of the	1932
agreement is to be formally considered by the board of	1933
commissioners. The board of education may include in the	1934
resolution conditions under which the board would approve the	1935
agreement, including the execution of an agreement to compensate	1936
the school district under division (B) of section 5709.82 of the	1937
Revised Code. The board of county commissioners may approve the	1938
agreement at any time after the board of education certifies its	1939
resolution approving the agreement to the board of county	1940
commissioners, or, if the board of education approves the	1941
agreement conditionally, at any time after the conditions are	1942
agreed to by the board of education and the board of county	1943
commissioners.	1944

If a board of education has adopted a resolution waiving its	1945
right to approve agreements and the resolution remains in effect,	1946
approval of an agreement by the board of education is not required	1947
under division (C) of this section. If a board of education has	1948
adopted a resolution allowing a board of county commissioners to	1949
deliver the notice required under this division fewer than	1950
forty-five business days prior to approval of the agreement by the	1951
board of county commissioners, the board of county commissioners	1952
shall deliver the notice to the board of education not later than	1953
the number of days prior to such approval as prescribed by the	1954
board of education in its resolution. If a board of education	1955
adopts a resolution waiving its right to approve agreements or	1956
shortening the notification period, the board of education shall	1957
certify a copy of the resolution to the board of county	1958
commissioners. If the board of education rescinds such a	1959
resolution, it shall certify notice of the rescission to the board	1960
of county commissioners.	1961

(2) The board of county commissioners shall comply with	1962
section 5709.83 of the Revised Code unless the board of education	1963
has adopted a resolution under that section waiving its right to	1964
receive such notice.	1965

(D) This division applies to zones certified by the director	1966
of development under this section prior to July 22, 1994.	1967

On or before October 15, 2009, and with the consent of the	1968
legislative authority of each affected municipal corporation or	1969
board of township trustees of each affected township, the board of	1970
commissioners that designated a zone to which this division	1971
applies may enter into an agreement with an enterprise if the	1972
board makes the finding required under that division and	1973
determines that the enterprise satisfies one of the criteria	1974
described in divisions (D)(1) to (5) of this section:	1975

(1) The enterprise currently has no operations in this state	1976
and, subject to approval of the agreement, intends to establish	1977
operations in the zone;	1978

(2) The enterprise currently has operations in this state	1979
and, subject to approval of the agreement, intends to establish	1980
operations at a new location in the zone that would not result in	1981
a reduction in the number of employee positions at any of the	1982
enterprise's other locations in this state;	1983

(3) The enterprise, subject to approval of the agreement,	1984
intends to relocate operations, currently located in another	1985
state, to the zone;	1986

(4) The enterprise, subject to approval of the agreement,	1987
intends to expand operations at an existing site in the zone that	1988
the enterprise currently operates;	1989

(5) The enterprise, subject to approval of the agreement,	1990
intends to relocate operations, currently located in this state,	1991
to the zone, and the director of development has issued a waiver	1992
for the enterprise under division (B) of section 5709.633 of the	1993
Revised Code.	1994

The agreement shall require the enterprise to agree to	1995
establish, expand, renovate, or occupy a facility in the zone and	1996
hire new employees, or preserve employment opportunities for	1997
existing employees, in return for one or more of the incentives	1998
described in division (B) of this section.	1999

(E) All agreements entered into under this section shall be	2000
in the form prescribed under section 5709.631 of the Revised Code.	2001
After an agreement under this section is entered into, if the	2002
board of county commissioners revokes its designation of the zone,	2003
or if the director of development revokes the zone's	2004
certification, any entitlements granted under the agreement shall	2005
continue for the number of years specified in the agreement.	2006

(F) Except as otherwise provided in this paragraph, an	2007
agreement entered into under this section shall require that the	2008
enterprise pay an annual fee equal to the greater of one per cent	2009
of the dollar value of incentives offered under the agreement or	2010
five hundred dollars; provided, however, that if the value of the	2011
incentives exceeds two hundred fifty thousand dollars, the fee	2012
shall not exceed two thousand five hundred dollars. The fee shall	2013
be payable to the board of commissioners once per year for each	2014
year the agreement is effective on the days and in the form	2015
specified in the agreement. Fees paid shall be deposited in a	2016
special fund created for such purpose by the board and shall be	2017
used by the board exclusively for the purpose of complying with	2018
section 5709.68 of the Revised Code and by the tax incentive	2019
review council created under section 5709.85 of the Revised Code	2020
exclusively for the purposes of performing the duties prescribed	2021
under that section. The board may waive or reduce the amount of	2022
the fee charged against an enterprise, but such waiver or	2023
reduction does not affect the obligations of the board or the tax	2024
incentive review council to comply with section 5709.68 or 5709.85	2025
of the Revised Code, respectively.	2026

(G) With the approval of the legislative authority of a	2027
municipal corporation or the board of township trustees of a	2028
township in which a zone is designated under division (A) of this	2029
section, the board of county commissioners may delegate to that	2030
legislative authority or board any powers and duties of the board	2031
to negotiate and administer agreements with regard to that zone	2032
under this section.	2033

(H) When an agreement is entered into pursuant to this	2034
section, the legislative authority authorizing the agreement shall	2035
forward a copy of the agreement to the director of development and	2036
to the tax commissioner within fifteen days after the agreement is	2037
entered into. If any agreement includes terms not provided for in	2038
section 5709.631 of the Revised Code affecting the revenue of a	2039
city, local, or exempted village school district or causing	2040
revenue to be foregone by the district, including any compensation	2041
to be paid to the school district pursuant to section 5709.82 of	2042
the Revised Code, those terms also shall be forwarded in writing	2043
to the director of development along with the copy of the	2044
agreement forwarded under this division.	2045

(I) After an agreement is entered into, the enterprise shall	2046
file with each personal property tax return required to be filed,	2047
or annual report that is required to be filed under section	2048
5727.08 of the Revised Code, while the agreement is in effect, an	2049
informational return, on a form prescribed by the tax commissioner	2050
for that purpose, setting forth separately the property, and	2051
related costs and values, exempted from taxation under the	2052
agreement.	2053

(J) Enterprises may agree to give preference to residents of	2054
the zone within which the agreement applies relative to residents	2055
of this state who do not reside in the zone when hiring new	2056
employees under the agreement.	2057

(K) An agreement entered into under this section may include	2058
a provision requiring the enterprise to create one or more	2059
temporary internship positions for students enrolled in a course	2060
of study at a school or other educational institution in the	2061
vicinity, and to create a scholarship or provide another form of	2062
educational financial assistance for students holding such a	2063
position in exchange for the student's commitment to work for the	2064
enterprise at the completion of the internship.	2065

Sec. 5709.67.  (A) Except as otherwise provided in sections	2066
5709.61 to 5709.69 of the Revised Code, the director of	2067
development shall administer those sections and shall adopt such	2068
rules as are necessary to ensure that no zone is certified or	2069
remains certified unless it meets any applicable requirements of	2070
division (A) of section 5709.61 of the Revised Code, and to	2071
determine the number of positions attributable to an enterprise	2072
for the purposes of division (A)(3) of section 5709.64 of the	2073
Revised Codeimplement and administer the enterprise zone program.	2074
The director shall assign to each zone currently certified a	2075
unique designation by which the zone shall be identified for	2076
purposes of administering sections 5709.61 to 5709.69 of the	2077
Revised Code. The tax commissioner shall administer all other tax	2078
incentives provided under sections 5709.61 to 5709.69 of the	2079
Revised Code and shall adopt such rules as are necessary to carry	2080
out that duty. No tax incentive qualification certificate or	2081
employee tax credit certificate shall be issued or remain in	2082
effect unless the enterprise applying for or holding the	2083
certificate complies with all such rules. The director of job and	2084
family services shall administer the incentive provided under	2085
division (B)(1) of section 5709.66 of the Revised Code and shall	2086
adopt such rules as are necessary to carry out that duty. No	2087
extension of benefits certificate shall be issued or remain in	2088
effect unless the enterprise applying for or holding the	2089
certificate complies with all such rules.	2090

(B) Not later than the first day of August each year, the	2091
director of development shall report to the general assembly on	2092
all of the following for the preceding calendar year:	2093

(1) The cost to the state of the tax and other incentives	2094
provided under sections 5709.61 to 5709.69 of the Revised Code;	2095

(2) The number of tax incentive qualification certificates,	2096
employee tax credit certificates, and extension of benefits	2097
certificates issued;	2098

(3) The names of the municipal corporations and counties that	2099
have entered agreements under sections 5709.62, 5709.63, and	2100
5709.632 of the Revised Code;	2101

(4) The number of new employees hired as a result of the tax	2102
and other incentives provided under sections 5709.61 to 5709.69 of	2103
the Revised Code;	2104

(5) Information on agreement terms concerning school district	2105
revenue that are not provided for in section 5709.631 of the	2106
Revised Code and that are forwarded to the director under division	2107
(H) of section 5709.62, division (H) of section 5709.63, or	2108
division (G) of section 5709.632 of the Revised Code.	2109

The report shall include a finding by the director as to	2110
whether the incentives provided under sections 5709.61 to 5709.69	2111
of the Revised Code have resulted in the creation of more	2112
positions in the state than would have been created without the	2113
incentives. The director shall send a copy of the report to each	2114
member of the general assembly and to the director of the	2115
legislative service commission.	2116

(C) All forms used in connection with the administration of	2117
sections 5709.61 to 5709.69 of the Revised Code, except forms	2118
administered directly by the tax commissioner, by the director of	2119
job and family services, or by a county or municipal corporation,	2120
are subject to review and approval by the state forms management	2121
control center under sections 125.91 to 125.98 of the Revised	2122
Code.	2123

Sec. 5709.82.  (A) As used in this section:

2124

(1) "New employee" means both of the following:

2125

(a) Persons employed in the construction of real property	2126
exempted from taxation under the chapters or sections of the	2127
Revised Code enumerated in division (B) of this section;	2128

(b) Persons not described by division (A)(1)(a) of this	2129
section who are first employed at the site of such property and	2130
who within the two previous years have not been subject, prior to	2131
being employed at that site, to income taxation by the municipal	2132
corporation within whose territory the site is located on income	2133
derived from employment for the person's current employer. "New	2134
employee" does not include any person who replaces a person who is	2135
not a new employee under division (A)(1) of this section.	2136

(2) "Infrastructure costs" means costs incurred by a	2137
municipal corporation in a calendar year to acquire, construct,	2138
reconstruct, improve, plan, or equip real or tangible personal	2139
property that directly benefits or will directly benefit the	2140
exempted property. If the municipal corporation finances the	2141
acquisition, construction, reconstruction, improvement, planning,	2142
or equipping of real or tangible personal property that directly	2143
benefits the exempted property by issuing debt, "infrastructure	2144
costs" means the annual debt charges incurred by the municipal	2145
corporation from the issuance of such debt. Real or tangible	2146
personal property directly benefits exempted property only if the	2147
exempted property places or will place direct, additional demand	2148
on the real or tangible personal property for which such costs	2149
were or will be incurred.	2150

(3) "Taxing unit" has the same meaning as in division (H) of	2151
section 5705.01 of the Revised Code.	2152

(B)(1) Except as otherwise provided under division (C) of	2153
this section, the legislative authority of any political	2154
subdivision that has acted under the authority of Chapter 725. or	2155
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41,	2156
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88	2157
of the Revised Code to grant an exemption from taxation for real	2158
or tangible personal property may negotiate with the board of	2159
education of each city, local, exempted village, or joint	2160
vocational school district or other taxing unit within the	2161
territory of which the exempted property is located, and enter	2162
into an agreement whereby the school district or taxing unit is	2163
compensated for tax revenue thatforegone by the school district	2164
would have received had the property not been exempted from	2165
taxationor taxing unit as a result of the exemption. Except as	2166
otherwise provided in division (B)(1) of this section, if a	2167
political subdivision enters into more than one agreement under	2168
this section with respect to a tax exemption, the political	2169
subdivision shall provide to each school district or taxing unit	2170
with which it contracts the same percentage of tax revenue	2171
foregone by the school district or taxing unit, which may be based	2172
on a good faith projection made at the time the exemption is	2173
granted. Such percentage shall be calculated on the basis of	2174
amounts paid by the political subdivision and any amounts paid by	2175
an owner under division (B)(2) of this section. A political	2176
subdivision may provide a school district or other taxing unit	2177
with a smaller percentage of foregone tax revenue than that	2178
provided to other school districts or taxing units only if the	2179
school district or taxing unit expressly consents in the agreement	2180
to receiving a smaller percentage.	2181

(2) An owner of property exempted from taxation under the	2182
authority described in division (B)(1) of this section may, by	2183
becoming a party to an agreement described in division (B)(1) of	2184
this section or by entering into a separate agreement with a	2185
school district or other taxing unit, agree to compensate the	2186
school district or taxing unit by paying cash or by providing	2187
property or services by gift, loan, or otherwise.	2188

(C) This division does not apply to the following:

2189

(1) The legislative authority of a municipal corporation that	2190
has acted under the authority of division (H) of section 715.70 or	2191
section 715.81 of the Revised Code to consent to the granting of	2192
an exemption from taxation for real or tangible personal property	2193
in a joint economic development district.	2194

(2) The legislative authority of a municipal corporation that	2195
has specified in an ordinance adopted under section 5709.40 or	2196
5709.41 of the Revised Code that payments in lieu of taxes	2197
provided for under section 5709.42 of the Revised Code shall be	2198
paid to the city, local, or exempted village school district in	2199
which the improvements are located in the amount of taxes that	2200
would have been payable to the school district if the improvements	2201
had not been exempted from taxation, as directed in the ordinance.	2202

If the legislative authority of any municipal corporation has	2203
acted under the authority of Chapter 725. or 1728. or section	2204
3735.671, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, or	2205
5709.88, or a housing officer under section 3735.67 of the Revised	2206
Code, to grant or consent to the granting of an exemption from	2207
taxation for real or tangible personal property on or after July	2208
1, 1994, the municipal corporation imposes a tax on incomes, and	2209
the payroll of new employees resulting from the exercise of that	2210
authority equals or exceeds one million dollars in any tax year	2211
for which such property is exempted, the legislative authority and	2212
the board of education of each city, local, or exempted village	2213
school district within the territory of which the exempted	2214
property is located shall attempt to negotiate an agreement	2215
providing for compensation to the school district for all or a	2216
portion of the tax revenue the school district would have received	2217
had the property not been exempted from taxation. The agreement	2218
may include as a party the owner of the property exempted or to be	2219
exempted from taxation and may include provisions obligating the	2220
owner to compensate the school district by paying cash or	2221
providing property or services by gift, loan, or otherwise. Such	2222
an obligation is enforceable by the board of education of the	2223
school district pursuant to the terms of the agreement.	2224

If the legislative authority and board of education fail to	2225
negotiate an agreement that is mutually acceptable within six	2226
months of formal approval by the legislative authority of the	2227
instrument granting the exemption, the legislative authority shall	2228
compensate the school district in the amount and manner prescribed	2229
by division (D) of this section.	2230

(D) Annually, the legislative authority of a municipal	2231
corporation subject to this division shall pay to the city, local,	2232
or exempted village school district within the territory of which	2233
the exempted property is located an amount equal to fifty per cent	2234
of the difference between the amount of taxes levied and collected	2235
by the municipal corporation on the incomes of new employees in	2236
the calendar year ending on the day the payment is required to be	2237
made, and the amount of any infrastructure costs incurred in that	2238
calendar year. For purposes of such computation, the amount of	2239
infrastructure costs shall not exceed thirty-five per cent of the	2240
amount of those taxes unless the board of education of the school	2241
district, by resolution adopted by a majority of the board,	2242
approves an amount in excess of that percentage. If the amount of	2243
those taxes or infrastructure costs must be estimated at the time	2244
the payment is made, payments in subsequent years shall be	2245
adjusted to compensate for any departure of those estimates from	2246
the actual amount of those taxes.	2247

A municipal corporation required to make a payment under this	2248
section shall make the payment from its general fund or a special	2249
fund established for the purpose. The payment is payable on the	2250
thirty-first day of December of the tax year for or in which the	2251
exemption from taxation commences and on that day for each	2252
subsequent tax year property is exempted and the legislative	2253
authority and board fail to negotiate an acceptable agreement	2254
under division (C) of this section.	2255

Section 2. That existing sections 122.17, 135.35, 301.27,	2256
505.10, 2913.01, 5575.01, 5705.41, 5709.62, 5709.63, 5709.67, and	2257
5709.82 of the Revised Code are hereby repealed.	2258