REPRESENTATIVES Wolpert, Daniels, Cirelli, Collier, Domenick, Flowers, McGregor, Price, Schlichter, Sferra, Skindell, Ujvagi, Wagner, Walcher

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 under

16

certain conditions, to authorize the reimbursement

17

of taxing units for tax revenue foregone as a

18

result of certain tax exemptions, to change the

19

definition of "new employee" for purposes of the

20

job creation tax credit, to permit the disposal of

21

certain unneeded, obsolete, or unfit for use

22

township property by sealed bid, and to exempt

23

certain township road projects from the force

24

account assessment form requirement.

25

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

Section 1. That sections 122.17, 135.35, 301.27, 505.10,	26
2913.01, 5575.01, 5705.41, 5709.62, 5709.63, 5709.67, and 5709.82	27
be amended and sections 9.361 and 301.29 of the Revised Code be	28
enacted to read as follows:	29

Sec. 9.361.  A board of county commissioners may authorize,	30
by resolution, a payroll deduction benefit program to implement	31
the qualified transportation fringe benefit provided for in	32
section 132(f) of the Internal Revenue Code of 1986, 26 U.S.C.	33
132(f), as amended, for county employees, but only insofar as it	34
applies to parking and transit passes. If the program includes a	35
parking benefit for parking at a facility that is not owned by the	36
county, the county shall require a third-party administrator to	37
administer the program for the county, unless, on or before the	38
effective date of this section, the county already is providing	39
such a parking benefit for which it is acting as the	40
administrator.	41

The resolution shall provide a process whereby any county	42
officer or employee may participate in or withdraw from the	43
program upon the filing of a written application. Upon appropriate	44
written authorization, the county auditor shall make the	45
appropriate payroll deductions and issue warrants as required by	46
the program.	47

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

48

(1) "Full-time employee" means an individual who is employed	49
for consideration for at least thirty-five hours a week, or who	50
renders any other standard of service generally accepted by custom	51
or specified by contract as full-time employment.	52

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

53

(a) A full-time employee first employed by a taxpayer in the	54
project that is the subject of the agreement after the taxpayer	55
enters into a tax credit agreement with the tax credit authority	56
under this section;	57

(b) A full-time employee first employed by a taxpayer in the	58
project that is the subject of the tax credit after the tax credit	59
authority approves a project for a tax credit under this section	60
in a public meeting, as long as the taxpayer enters into the tax	61
credit agreement prepared by the department of development after	62
such meeting within sixty days after receiving the agreement from	63
the department. If the taxpayer fails to enter into the agreement	64
within sixty days, "new employee" has the same meaning as under	65
division (A)(2)(a) of this section.	66

Under division (A)(2)(a) or (b) of this section, if the tax	67
credit authority determines it appropriate, "new employee" also	68
may include an employee re-hired or called back from lay-off to	69
work in a new facility or on a new product or service established	70
or produced by the taxpayer after entering into the agreement	71
under this section or after the tax credit authority approves the	72
tax credit in a public meeting. "NewExcept as otherwise provided	73
in this paragraph, "new employee" does not include any employee of	74
the taxpayer who was previously employed in this state by a	75
related member of the taxpayer and whose employment was shifted to	76
the taxpayer after the taxpayer entered into the tax credit	77
agreement or after the tax credit authority approved the credit in	78
a public meeting, or any employee of the taxpayer for which the	79
taxpayer has been granted a certificate under division (B) of	80
section 5709.66 of the Revised Code. However, if the taxpayer is	81
engaged in the enrichment and commercialization of uranium or	82
uranium products or is engaged in research and development	83
activities related thereto and if the tax credit authority	84
determines it appropriate, "new employee" may include an employee	85
of the taxpayer who was previously employed in this state by a	86
related member of the taxpayer and whose employment was shifted to	87
the taxpayer after the taxpayer entered into the tax credit	88
agreement or after the tax credit authority approved the credit in	89
a public meeting. "New employee" also does not include an employee	90
of the taxpayer who is employed in an employment position that was	91
relocated to a project from other operations of the taxpayer in	92
this state or from operations of a related member of the taxpayer	93
in this state. In addition, "new employee" does not include a	94
child, grandchild, parent, or spouse, other than a spouse who is	95
legally separated from the individual, of any individual who is an	96
employee of the taxpayer and who has a direct or indirect	97
ownership interest of at least five per cent in the profits,	98
capital, or value of the taxpayer. Such ownership interest shall	99
be determined in accordance with section 1563 of the Internal	100
Revenue Code and regulations prescribed thereunder.	101

(3) "New income tax revenue" means the total amount withheld	102
under section 5747.06 of the Revised Code by the taxpayer during	103
the taxable year from the compensation of new employees for the	104
tax levied under Chapter 5747. of the Revised Code.	105

(4) "Related member" has the same meaning as under division	106
(A)(6) of section 5733.042 of the Revised Code without regard to	107
division (B) of that section.	108

(B) The tax credit authority may make grants under this	109
section to foster job creation in this state. Such a grant shall	110
take the form of a refundable credit allowed against the tax	111
imposed by section 5733.06 or 5747.02 of the Revised Code. The	112
credit shall be claimed for the taxable years specified in the	113
taxpayer's agreement with the tax credit authority under division	114
(D) of this section. The credit shall be claimed after the	115
allowance of all other credits provided by Chapter 5733. or 5747.	116
of the Revised Code. The amount of the credit equals the new	117
income tax revenue for the taxable year multiplied by the	118
percentage specified in the agreement with the tax credit	119
authority.	120

(C) A taxpayer or potential taxpayer who proposes a project	121
to create new jobs in this state may apply to the tax credit	122
authority to enter into an agreement for a tax credit under this	123
section. The director of development shall prescribe the form of	124
the application. After receipt of an application, the authority	125
may enter into an agreement with the taxpayer for a credit under	126
this section if it determines all of the following:	127

(1) The taxpayer's project will create new jobs in this	128
state;	129

(2) The taxpayer's project is economically sound and will	130
benefit the people of this state by increasing opportunities for	131
employment and strengthening the economy of this state;	132

(3) Receiving the tax credit is a major factor in the	133
taxpayer's decision to go forward with the project.	134

(D) An agreement under this section shall include all of the	135
following:	136

(1) A detailed description of the project that is the subject	137
of the agreement;	138

(2) The term of the tax credit, which shall not exceed	139
fifteen years, and the first taxable year for which the credit may	140
be claimed;	141

(3) A requirement that the taxpayer shall maintain operations	142
at the project location for at least twice the number of years as	143
the term of the tax credit;	144

(4) The percentage, as determined by the tax credit	145
authority, of new income tax revenue that will be allowed as the	146
amount of the credit for each taxable year;	147

(5) A specific method for determining how many new employees	148
are employed during a taxable year;	149

(6) A requirement that the taxpayer annually shall report to	150
the director of development the number of new employees, the new	151
income tax revenue withheld in connection with the new employees,	152
and any other information the director needs to perform the	153
director's duties under this section;	154

(7) A requirement that the director of development annually	155
shall verify the amounts reported under division (D)(6) of this	156
section, and after doing so shall issue a certificate to the	157
taxpayer stating that the amounts have been verified;	158

(8)(a) A provision requiring that the taxpayer, except as	159
otherwise provided in division (D)(8)(b) of this section, shall	160
not relocate employment positions from elsewhere in this state to	161
the project site that is the subject of the agreement for the	162
lesser of five years from the date the agreement is entered into	163
or the number of years the taxpayer is entitled to claim the tax	164
credit.	165

(b) The taxpayer may relocate employment positions from	166
elsewhere in this state to the project site that is the subject of	167
the agreement if the director of development determines both of	168
the following:	169

(i) That the site from which the employment positions would	170
be relocated is inadequate to meet market and industry conditions,	171
expansion plans, consolidation plans, or other business	172
considerations affecting the taxpayer;	173

(ii) That the legislative authority of the county, township,	174
or municipal corporation from which the employment positions would	175
be relocated has been notified of the relocation.	176

For purposes of this section, the movement of an employment	177
position from one political subdivision to another political	178
subdivision shall be considered a relocation of an employment	179
position, but the transfer of an individual employee from one	180
political subdivision to another political subdivision shall not	181
be considered a relocation of an employment position as long as	182
the individual's employment position in the first political	183
subdivision is refilled.	184

(E) If a taxpayer fails to meet or comply with any condition	185
or requirement set forth in a tax credit agreement, the tax credit	186
authority may amend the agreement to reduce the percentage or term	187
of the tax credit. The reduction of the percentage or term shall	188
take effect in the taxable year immediately following the taxable	189
year in which the authority amends the agreement. If the taxpayer	190
relocates employment positions in violation of the provision	191
required under division (D)(8)(a) of this section, the taxpayer	192
shall not claim the tax credit under section 5733.0610 of the	193
Revised Code for any tax years following the calendar year in	194
which the relocation occurs, or shall not claim the tax credit	195
under section 5747.058 of the Revised Code for the taxable year in	196
which the relocation occurs and any subsequent taxable years.	197

(F) Projects that consist solely of point-of-final-purchase	198
retail facilities are not eligible for a tax credit under this	199
section. If a project consists of both point-of-final-purchase	200
retail facilities and nonretail facilities, only the portion of	201
the project consisting of the nonretail facilities is eligible for	202
a tax credit and only the new income tax revenue from new	203
employees of the nonretail facilities shall be considered when	204
computing the amount of the tax credit. If a warehouse facility is	205
part of a point-of-final-purchase retail facility and supplies	206
only that facility, the warehouse facility is not eligible for a	207
tax credit. Catalog distribution centers are not considered	208
point-of-final-purchase retail facilities for the purposes of this	209
division, and are eligible for tax credits under this section.	210

(G) Financial statements and other information submitted to	211
the department of development or the tax credit authority by an	212
applicant or recipient of a tax credit under this section, and any	213
information taken for any purpose from such statements or	214
information, are not public records subject to section 149.43 of	215
the Revised Code. However, the chairperson of the authority may	216
make use of the statements and other information for purposes of	217
issuing public reports or in connection with court proceedings	218
concerning tax credit agreements under this section. Upon the	219
request of the tax commissioner, the chairperson of the authority	220
shall provide to the commissioner any statement or information	221
submitted by an applicant or recipient of a tax credit in	222
connection with the credit. The commissioner shall preserve the	223
confidentiality of the statement or information.	224

(H) A taxpayer claiming a credit under this section shall	225
submit to the tax commissioner a copy of the director of	226
development's certificate of verification under division (D)(7) of	227
this section for the taxable year. However, failure to submit a	228
copy of the certificate does not invalidate a claim for a credit.	229

(I) The director of development, after consultation with the	230
tax commissioner and in accordance with Chapter 119. of the	231
Revised Code, shall adopt rules necessary to implement this	232
section. The rules may provide for recipients of tax credits under	233
this section to be charged fees to cover administrative costs of	234
the tax credit program. At the time the director gives public	235
notice under division (A) of section 119.03 of the Revised Code of	236
the adoption of the rules, the director shall submit copies of the	237
proposed rules to the chairpersons of the standing committees on	238
economic development in the senate and the house of	239
representatives.	240

(J) For the purposes of this section, a taxpayer may include	241
a partnership, a corporation that has made an election under	242
subchapter S of chapter one of subtitle A of the Internal Revenue	243
Code, or any other business entity through which income flows as a	244
distributive share to its owners. A credit received under this	245
section by a partnership, S-corporation, or other such business	246
entity shall be apportioned among the persons to whom the income	247
or profit of the partnership, S-corporation, or other entity is	248
distributed, in the same proportions as those in which the income	249
or profit is distributed.	250

(K) If the director of development determines that a taxpayer	251
who has received a credit under this section is not complying with	252
the requirement under division (D)(3) of this section, the	253
director shall notify the tax credit authority of the	254
noncompliance. After receiving such a notice, and after giving the	255
taxpayer an opportunity to explain the noncompliance, the tax	256
credit authority may require the taxpayer to refund to this state	257
a portion of the credit in accordance with the following:	258

(1) If the taxpayer maintained operations at the project	259
location for at least one and one-half times the number of years	260
of the term of the tax credit, an amount not exceeding twenty-five	261
per cent of the sum of any previously allowed credits under this	262
section;	263

(2) If the taxpayer maintained operations at the project	264
location for at least the number of years of the term of the tax	265
credit, an amount not exceeding fifty per cent of the sum of any	266
previously allowed credits under this section;	267

(3) If the taxpayer maintained operations at the project	268
location for less than the number of years of the term of the tax	269
credit, an amount not exceeding one hundred per cent of the sum of	270
any previously allowed credits under this section.	271

In determining the portion of the tax credit to be refunded	272
to this state, the tax credit authority shall consider the effect	273
of market conditions on the taxpayer's project and whether the	274
taxpayer continues to maintain other operations in this state.	275
After making the determination, the authority shall certify the	276
amount to be refunded to the tax commissioner. The commissioner	277
shall make an assessment for that amount against the taxpayer	278
under Chapter 5733. or 5747. of the Revised Code. The time	279
limitations on assessments under Chapter 5733. or 5747. of the	280
Revised Code do not apply to an assessment under this division,	281
but the commissioner shall make the assessment within one year	282
after the date the authority certifies to the commissioner the	283
amount to be refunded.	284

(L) On or before the thirty-first day of March each year, the	285
director of development shall submit a report to the governor, the	286
president of the senate, and the speaker of the house of	287
representatives on the tax credit program under this section. The	288
report shall include information on the number of agreements that	289
were entered into under this section during the preceding calendar	290
year, a description of the project that is the subject of each	291
such agreement, and an update on the status of projects under	292
agreements entered into before the preceding calendar year.	293

During the fifth year of the tax credit program, the director	294
of development in conjunction with the director of budget and	295
management shall conduct an evaluation of it. The evaluation shall	296
include assessments of the effectiveness of the program in	297
creating new jobs in this state and of the revenue impact of the	298
program, and may include a review of the practices and experiences	299
of other states with similar programs. The director of development	300
shall submit a report on the evaluation to the governor, the	301
president of the senate, and the speaker of the house of	302
representatives on or before January 1, 1998.	303

(M) There is hereby created the tax credit authority, which	304
consists of the director of development and four other members	305
appointed as follows: the governor, the president of the senate,	306
and the speaker of the house of representatives each shall appoint	307
one member who shall be a specialist in economic development; the	308
governor also shall appoint a member who is a specialist in	309
taxation. Of the initial appointees, the members appointed by the	310
governor shall serve a term of two years; the members appointed by	311
the president of the senate and the speaker of the house of	312
representatives shall serve a term of four years. Thereafter,	313
terms of office shall be for four years. Initial appointments to	314
the authority shall be made within thirty days after January 13,	315
1993. Each member shall serve on the authority until the end of	316
the term for which the member was appointed. Vacancies shall be	317
filled in the same manner provided for original appointments. Any	318
member appointed to fill a vacancy occurring prior to the	319
expiration of the term for which the member's predecessor was	320
appointed shall hold office for the remainder of that term.	321
Members may be reappointed to the authority. Members of the	322
authority shall receive their necessary and actual expenses while	323
engaged in the business of the authority. The director of	324
development shall serve as chairperson of the authority, and the	325
members annually shall elect a vice-chairperson from among	326
themselves. Three members of the authority constitute a quorum to	327
transact and vote on the business of the authority. The majority	328
vote of the membership of the authority is necessary to approve	329
any such business, including the election of the vice-chairperson.	330

The director of development may appoint a professional	331
employee of the department of development to serve as the	332
director's substitute at a meeting of the authority. The director	333
shall make the appointment in writing. In the absence of the	334
director from a meeting of the authority, the appointed substitute	335
shall serve as chairperson. In the absence of both the director	336
and the director's substitute from a meeting, the vice-chairperson	337
shall serve as chairperson.	338

Sec. 135.35.  (A) The investing authority shall deposit or	339
invest any part or all of the county's inactive moneys and shall	340
invest all of the money in the county library and local government	341
support fund when required by section 135.352 of the Revised Code.	342
The following classifications of securities and obligations are	343
eligible for such deposit or investment:	344

(1) United States treasury bills, notes, bonds, or any other	345
obligation or security issued by the United States treasury or any	346
other obligation guaranteed as to principal or interest by the	347
United States.	348

Nothing in the classification of eligible securities and	349
obligations set forth in division (A)(1) of this section or in the	350
classifications of eligible securities and obligations set forth	351
in divisions (A)(2) to (8) of this section shall be construed to	352
authorize any investment in stripped principal or interest	353
obligations of such eligible securities and obligations.	354

(2) Bonds, notes, debentures, or any other obligations or	355
securities issued by any federal government agency or	356
instrumentality, including but not limited to, the federal	357
national mortgage association, federal home loan bank, federal	358
farm credit bank, federal home loan mortgage corporation,	359
government national mortgage association, and student loan	360
marketing association. All federal agency securities shall be	361
direct issuances of federal government agencies or	362
instrumentalities.	363

(3) Time certificates of deposit or savings or deposit	364
accounts, including, but not limited to, passbook accounts, in any	365
eligible institution mentioned in section 135.32 of the Revised	366
Code;	367

(4) Bonds and other obligations of this state or the	368
political subdivisions of this state, provided that such political	369
subdivisions are located wholly or partly within the same county	370
as the investing authority;	371

(5) No-load money market mutual funds consisting exclusively	372
of obligations described in division (A)(1) or (2) of this section	373
and repurchase agreements secured by such obligations, provided	374
that investments in securities described in this division are made	375
only through eligible institutions mentioned in section 135.32 of	376
the Revised Code;	377

(6) The Ohio subdivision's fund as provided in section 135.45	378
of the Revised Code;	379

(7) Securities lending agreements with any eligible	380
institution mentioned in section 135.32 of the Revised Code that	381
is a member of the federal reserve system or federal home loan	382
bank or with any recognized United States government securities	383
dealer meeting the description in division (J)(1) of this section,	384
under the terms of which agreements the investing authority lends	385
securities and the eligible institution or dealer agrees to	386
simultaneously exchange eithersimilar securities described in	387
division (A)(1) or (2) of this section or cash or both securities	388
and cash, equal value for equal value;.	389

Securities and cash received as collateral for a securities	390
lending agreement are not inactive moneys of the county or moneys	391
of a county library and local government support fund. The	392
investment of cash collateral received pursuant to a securities	393
lending agreement may be invested only in instruments specified by	394
the investing authority in the written investment policy described	395
in division (K) of this section.	396

(8) Up to twenty-five per cent of the county's total average	397
portfolio in either of the following investments:	398

(a) Commercial paper notes issued by an entity that is	399
defined in division (D) of section 1705.01 of the Revised Code and	400
that has assets exceeding five hundred million dollars, to which	401
notes all of the following apply:	402

(i) The notes are rated at the time of purchase in the	403
highest classification established by at least two nationally	404
recognized standard rating services.	405

(ii) The aggregate value of the notes does not exceed ten per	406
cent of the aggregate value of the outstanding commercial paper of	407
the issuing corporation.	408

(iii) The notes mature not later than one hundred eighty days	409
after purchase.	410

(b) Bankers acceptances of banks that are insured by the	411
federal deposit insurance corporation and to which both of the	412
following apply:	413

(i) The obligations are eligible for purchase by the federal	414
reserve system.	415

(ii) The obligations mature not later than one hundred eighty	416
days after purchase.	417

No investment shall be made pursuant to division (A)(8) of	418
this section unless the investing authority has completed	419
additional training for making the investments authorized by	420
division (A)(8) of this section. The type and amount of additional	421
training shall be approved by the auditor of state and may be	422
conducted by or provided under the supervision of the auditor of	423
state.	424

(B) Nothing in the classifications of eligible obligations	425
and securities set forth in divisions (A)(1) to (8) of this	426
section shall be construed to authorize investment in a	427
derivative, and no investing authority shall invest any county	428
inactive moneys or any moneys in a county library and local	429
government support fund in a derivative. For purposes of this	430
division, "derivative" means a financial instrument or contract or	431
obligation whose value or return is based upon or linked to	432
another asset or index, or both, separate from the financial	433
instrument, contract, or obligation itself. Any security,	434
obligation, trust account, or other instrument that is created	435
from an issue of the United States treasury or is created from an	436
obligation of a federal agency or instrumentality or is created	437
from both is considered a derivative instrument. An eligible	438
investment described in this section with a variable interest rate	439
payment, based upon a single interest payment or single index	440
comprised of other eligible investments provided for in division	441
(A)(1) or (2) of this section, is not a derivative, provided that	442
such variable rate investment has a maximum maturity of two years.	443

(C) Except as provided in division (D) of this section, any	444
investment made pursuant to this section must mature within five	445
years from the date of settlement, unless the investment is	446
matched to a specific obligation or debt of the county or to a	447
specific obligation or debt of a political subdivision of this	448
state located wholly or partly within the county, and the	449
investment is specifically approved by the investment advisory	450
committee.	451

(D) The investing authority may also enter into a written	452
repurchase agreement with any eligible institution mentioned in	453
section 135.32 of the Revised Code or any eligible securities	454
dealer pursuant to division (J) of this section, under the terms	455
of which agreement the investing authority purchases and the	456
eligible institution or dealer agrees unconditionally to	457
repurchase any of the securities listed in divisions (B)(1) to	458
(5), except letters of credit described in division (B)(2), of	459
section 135.18 of the Revised Code. The market value of securities	460
subject to an overnight written repurchase agreement must exceed	461
the principal value of the overnight written repurchase agreement	462
by at least two per cent. A written repurchase agreement must	463
exceed the principal value of the overnight written repurchase	464
agreement, by at least two per cent. A written repurchase	465
agreement shall not exceed thirty days, and the market value of	466
securities subject to a written repurchase agreement must exceed	467
the principal value of the written repurchase agreement by at	468
least two per cent and be marked to market daily. All securities	469
purchased pursuant to this division shall be delivered into the	470
custody of the investing authority or the qualified custodian of	471
the investing authority or an agent designated by the investing	472
authority. A written repurchase agreement with an eligible	473
securities dealer shall be transacted on a delivery versus payment	474
basis. The agreement shall contain the requirement that for each	475
transaction pursuant to the agreement the participating	476
institution shall provide all of the following information:	477

(1) The par value of the securities;

478

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

479

(3) A numerical identifier generally accepted in the	480
securities industry that designates the securities.	481

No investing authority shall enter into a written repurchase	482
agreement under the terms of which the investing authority agrees	483
to sell securities owned by the county to a purchaser and agrees	484
with that purchaser to unconditionally repurchase those	485
securities.	486

(E) No investing authority shall make an investment under	487
this section, unless the investing authority, at the time of	488
making the investment, reasonably expects that the investment can	489
be held until its maturity. The investing authority's written	490
investment policy shall specify the conditions under which an	491
investment may be redeemed or sold prior to maturity.	492

(F) No investing authority shall pay a county's inactive	493
moneys or moneys of a county library and local government support	494
fund into a fund established by another subdivision, treasurer,	495
governing board, or investing authority, if that fund was	496
established by the subdivision, treasurer, governing board, or	497
investing authority for the purpose of investing or depositing the	498
public moneys of other subdivisions. This division does not apply	499
to the payment of public moneys into either of the following:	500

(1) The Ohio subdivision's fund pursuant to division (A)(6)	501
of this section;	502

(2) A fund created solely for the purpose of acquiring,	503
constructing, owning, leasing, or operating municipal utilities	504
pursuant to the authority provided under section 715.02 of the	505
Revised Code or Section 4 of Article XVIII, Ohio Constitution.	506

For purposes of division (F) of this section, "subdivision"	507
includes a county.	508

(G) The use of leverage, in which the county uses its current	509
investment assets as collateral for the purpose of purchasing	510
other assets, is prohibited. The issuance of taxable notes for the	511
purpose of arbitrage is prohibited. Contracting to sell securities	512
not owned by the county, for the purpose of purchasing such	513
securities on the speculation that bond prices will decline, is	514
prohibited.	515

(H) Any securities, certificates of deposit, deposit	516
accounts, or any other documents evidencing deposits or	517
investments made under authority of this section shall be issued	518
in the name of the county with the county treasurer or investing	519
authority as the designated payee. If any such deposits or	520
investments are registrable either as to principal or interest, or	521
both, they shall be registered in the name of the treasurer.	522

(I) The investing authority shall be responsible for the	523
safekeeping of all documents evidencing a deposit or investment	524
acquired under this section, including, but not limited to,	525
safekeeping receipts evidencing securities deposited with a	526
qualified trustee, as provided in section 135.37 of the Revised	527
Code, and documents confirming the purchase of securities under	528
any repurchase agreement under this section shall be deposited	529
with a qualified trustee, provided, however, that the qualified	530
trustee shall be required to report to the investing authority,	531
auditor of state, or an authorized outside auditor at any time	532
upon request as to the identity, market value, and location of the	533
document evidencing each security, and that if the participating	534
institution is a designated depository of the county for the	535
current period of designation, the securities that are the subject	536
of the repurchase agreement may be delivered to the treasurer or	537
held in trust by the participating institution on behalf of the	538
investing authority.	539

Upon the expiration of the term of office of an investing	540
authority or in the event of a vacancy in the office for any	541
reason, the officer or the officer's legal representative shall	542
transfer and deliver to the officer's successor all documents	543
mentioned in this division for which the officer has been	544
responsible for safekeeping. For all such documents transferred	545
and delivered, suchthe officer shall be credited with, and the	546
officer's successor shall be charged with, the amount of moneys so	547
evidenced by such documents.	548

(J)(1) All investments, except for investments in securities	549
described in divisions (A)(5) and (6) of this section, shall be	550
made only through a member of the national association of	551
securities dealers, through a bank, savings bank, or savings and	552
loan association regulated by the superintendent of financial	553
institutions, or through an institution regulated by the	554
comptroller of the currency, federal deposit insurance	555
corporation, or board of governors of the federal reserve system.	556

(2) Payment for investments shall be made only upon the	557
delivery of securities representing such investments to the	558
treasurer, investing authority, or qualified trustee. If the	559
securities transferred are not represented by a certificate,	560
payment shall be made only upon receipt of confirmation of	561
transfer from the custodian by the treasurer, governing board, or	562
qualified trustee.	563

(K)(1) Except as otherwise provided in division (K)(2) of	564
this section, no investing authority shall make an investment or	565
deposit under this section, unless there is on file with the	566
auditor of state a written investment policy approved by the	567
investing authority. The policy shall require that all entities	568
conducting investment business with the investmentinvesting	569
authority shall sign the investment policy of that investment	570
investing authority. All brokers, dealers, and financial	571
institutions, described in division (J)(1) of this section,	572
initiating transactions with the investmentinvesting authority by	573
giving advice or making investment recommendations shall sign the	574
investmentinvesting authority's investment policy thereby	575
acknowledging their agreement to abide by the policy's contents.	576
All brokers, dealers, and financial institutions, described in	577
division (J)(1) of this section, executing transactions initiated	578
by the investmentinvesting authority, having read the policy's	579
contents, shall sign the investment policy thereby acknowledging	580
their comprehension and receipt.	581

(2) If a written investment policy described in division	582
(K)(1) of this section is not filed on behalf of the county with	583
the auditor of state, the investing authority of that county shall	584
invest the county's inactive moneys and moneys of the county	585
library and local government support fund only in time	586
certificates of deposits or savings or deposit accounts pursuant	587
to division (A)(3) of this section, no-load money market mutual	588
funds pursuant to division (A)(5) of this section, or the Ohio	589
subdivision's fund pursuant to division (A)(6) of this section.	590

(L)(1) The investing authority shall establish and maintain	591
an inventory of all obligations and securities acquired by the	592
investing authority pursuant to this section. The inventory shall	593
include a description of each obligation or security, including	594
type, cost, par value, maturity date, settlement date, and any	595
coupon rate.	596

(2) The investing authority shall also keep a complete record	597
of all purchases and sales of the obligations and securities made	598
pursuant to this section.	599

(3) The investing authority shall maintain a monthly	600
portfolio report and issue a copy of the monthly portfolio report	601
describing such investments to the county investment advisory	602
committee, detailing the current inventory of all obligations and	603
securities, all transactions during the month that affected the	604
inventory, any income received from the obligations and	605
securities, and any investment expenses paid, and stating the	606
names of any persons effecting transactions on behalf of the	607
investing authority.	608

(4) The monthly portfolio report shall be a public record and	609
available for inspection under section 149.43 of the Revised Code.	610

(5) The inventory and the monthly portfolio report shall be	611
filed with the board of county commissioners.	612

(M) An investing authority may enter into a written	613
investment or deposit agreement that includes a provision under	614
which the parties agree to submit to nonbinding arbitration to	615
settle any controversy that may arise out of the agreement,	616
including any controversy pertaining to losses of public moneys	617
resulting from investment or deposit. The arbitration provision	618
shall be set forth entirely in the agreement, and the agreement	619
shall include a conspicuous notice to the parties that any party	620
to the arbitration may apply to the court of common pleas of the	621
county in which the arbitration was held for an order to vacate,	622
modify, or correct the award. Any such party may also apply to the	623
court for an order to change venue to a court of common pleas	624
located more than one hundred miles from the county in which the	625
investing authority is located.	626

For purposes of this division, "investment or deposit	627
agreement" means any agreement between an investing authority and	628
a person, under which agreement the person agrees to invest,	629
deposit, or otherwise manage, on behalf of the investing	630
authority, a county's inactive moneys or moneys in a county	631
library and local government support fund, or agrees to provide	632
investment advice to the investing authority.	633

(N) An investment held in the county portfolio on September	634
27, 1996, that was a legal investment under the law as it existed	635
before September 27, 1996, may be held until maturity, or if the	636
investment does not have a maturity date the investment may be	637
held until five years from September 27, 1996, regardless of	638
whether the investment would qualify as a legal investment under	639
the terms of this section as amended.	640

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

641

(1) "Credit card" includes a gasoline and telephone credit	642
card and a telephone credit cardcards but excludes any	643
procurement card authorized under section 301.29 of the Revised	644
Code.	645

(2) "Officer" includes an individual who also is an	646
appointing authority.	647

(3) "Gasoline and oil expenses," and "minor motor vehicle	648
repair and maintenance expenses," and "emergency motor vehicle	649
repair expenses" refer to only those expenses incurred for motor	650
vehicles owned or leased by the county.	651

(B)(1) A credit card held by a board of county commissioners	652
or the office of any other county appointing authority shall be	653
used only to pay the following work-related expenses, limited to	654
the following:	655

(1)(a) Food expenses;

656

(2)(b) Transportation expenses;

657

(3)(c) Gasoline and oil expenses;

658

(4) Minor motor(d) Motor vehicle repair and maintenance	659
expenses;	660

(5) Emergency motor vehicle repair expenses;

661

(6)(e) Telephone expenses;

662

(7)(f) Lodging expenses;

663

(8)(g) Internet service provider expenses;

664

(9)(h) In the case of a public children services agency,	665
expenses for purchases for children for whom the agency is	666
providing temporary emergency care pursuant to section 5153.16 of	667
the Revised Code, children in the temporary or permanent custody	668
of the agency, and children in a planned permanent living	669
arrangement.	670

(2) No late charges or finance charges shall be allowed as an	671
allowable expense unless authorized by the board of county	672
commissioners.	673

(C) A county appointing authority may apply to the board of	674
county commissioners for authorization to have an officer or	675
employee of the appointing authority use a credit card held by	676
that appointing authority. The authorization request shall state	677
whether the card is to be issued only in the name of the office of	678
the appointing authority itself or whether the issued card also	679
shall also include the name of a specified officer or employee.	680

(D) The debt incurred as a result of the use of a credit card	681
pursuant to this section shall be paid from moneys appropriated to	682
specific appropriation line items of the appointing authority for	683
work-related expenses listed in division (B)(1) of this section.	684

(E)(1) Except as otherwise provided in division (E)(2) of	685
this section, every officer or employee authorized to use a credit	686
card held by the board or appointing authority shall submit to the	687
board by the first day of each month an estimate of the officer's	688
or employee's work-related expenses listed in division (B)(1) of	689
this section for that month along with the specific appropriation	690
line items from which those expenditures are to be made, unless	691
the board authorizes, by resolution, the officer or employee to	692
submit to the board such an estimate for a period longer than one	693
month. The board may revise the estimate and determine the amount	694
it approves, if any, not to exceed the estimated amount. The board	695
shall certify the amount of its determination to the county	696
auditor along with the necessary information for the auditor to	697
determine the appropriatespecific appropriation line itemitems	698
from which suchthe expenditures are to be made. After receiving	699
certification from the county auditor that the determined sum of	700
money is in the treasury or in the process of collection to the	701
credit of the appropriatespecific appropriation line itemitems	702
for which the credit card is approved for use, and is free from	703
previous and then-outstanding obligations or certifications, the	704
board shall authorize the officer or employee to incur debt for	705
suchthe expenses against the county's credit up to the authorized	706
amount.	707

(2) In lieu of following the procedure set forth in division	708
(E)(1) of this section, a board of county commissioners may adopt	709
a resolution authorizing an officer or employee of an appointing	710
authority to use a county credit card to pay for specific classes	711
of the work-related expenses listed in division (B)(1) of this	712
section, or use a specific credit card for any of those	713
work-related expenses listed in division (B)(1) of this section,	714
without submitting an estimate of those expenses to the board as	715
required by division (E)(1) of this section. Prior to adopting the	716
resolution, the board shall notify the county auditor. The	717
resolution shall specify whether the officer's or employee's	718
exemption extends to the use of a specific credit card, which card	719
shall be identified by its number, or to one or more specific	720
work-related uses from the classes of uses permitted under	721
division (B)(1) of this section. Before any credit card exempted	722
for specific uses may be used to make purchases for uses other	723
than those specific uses listed in the resolution, the procedures	724
outlined in division (E)(1) of this section must be followed or	725
the use shall be considered an unauthorized use. Use of any credit	726
card under division (E)(2) of this section shall be limited to the	727
amount appropriated and encumbered in a specific appropriation	728
line item for the permitted use or uses designated in the	729
authorizing resolution, or, in the case of a resolution that	730
authorizes use of a specific credit card, for each of the	731
permitted uses listed in division (B) of this section, but only to	732
the extent the moneys in such appropriationsthose specific	733
appropriation line items are not otherwise encumberencumbered.	734

(F)(1) Any time a county credit card approved for use for an	735
authorized amount under division (E)(1) of this section is used	736
for more than that authorized amount, the appointing authority may	737
request the board of county commissioners to authorize after the	738
fact the expenditure of any amount charged beyond the originally	739
authorized amount if, upon the board's request, the county auditor	740
certifies that sum of money is in the treasury or in the process	741
of collection to the credit of the appropriate appropriation line	742
item for which the credit card was used, and is free from previous	743
and then-outstanding obligations or certifications. If the card is	744
used for more than the amount originally authorized and if for any	745
reason that amount is not authorized after the fact, then the	746
county treasury shall be reimbursed for any amount spent beyond	747
the originally authorized amount in the following manner:	748

(a) If the card is issued in the name of a specific officer	749
or employee, then that officer or employee is liable in person and	750
upon any official bond the officer or employee has given to the	751
county to reimburse the county treasury for the amount charged to	752
the county beyond the originally authorized amount.	753

(b) If the card wasis issued to the office of the appointing	754
authority, then the appointing authority is liable in person and	755
upon any official bond the appointing authority has given to the	756
county for the amount charged to the county beyond the originally	757
authorized amount.	758

(2) Any time a county credit card authorized for use under	759
division (E)(2) of this section is used for more than the amount	760
appropriated under that division, the appointing authority may	761
request the board of county commissioners to issue a supplemental	762
appropriation or make a transfer to the proper line item account	763
as permitted in section 5705.40 of the Revised Code, to cover the	764
amount charged beyond the originally appropriated amount. If the	765
card is used for more than the amount originally appropriated and	766
if for any reason that amount is not appropriated or transferred	767
as permitted by this section, then the county treasury shall be	768
reimbursed for any amount spent beyond the originally appropriated	769
amount in the following manner:	770

(a) If the card is issued in the name of a specific officer	771
or employee, then that officer or employee is liable in person and	772
upon any official bond the officer or employee has given to the	773
county for reimbursing the county treasury for any amount charged	774
on the card beyond the originally appropriated amount.	775

(b) If the card is issued in the name of the office of the	776
appointing authority, then the appointing authority is liable in	777
person and upon any official bond the appointing authority has	778
given to the county for reimbursement for any amount charged on	779
the card beyond the originally appropriated amount.	780

(3) Whenever any officer or employee who is authorized to use	781
a credit card held by the board or the office of any other county	782
appointing authority suspects the loss, theft, or possibility of	783
unauthorized use of the county credit card the officer or employee	784
is authorized to use, the officer or employee shall so notify the	785
county auditor and either the officer's or employee's appointing	786
authority or the board immediately and in writing.	787

(4) If the county auditor determines there has been a credit	788
card expenditure beyond the appropriated or authorized amount as	789
provided in division (E) of this section, the auditor immediately	790
shall notify the board of county commissioners of this fact. When	791
the board of county commissioners determines, on its own or after	792
notification from the county auditor, that the county treasury	793
should be reimbursed for credit card expenditures beyond the	794
appropriated or authorized amount as provided in divisions (F)(1)	795
and (2) of this section, it shall give written notice to the	796
county auditor and to the officer or employee or appointing	797
authority liable to the treasury as provided in those divisions	798
(F)(1) and (2) of this section. If, within thirty days after	799
issuance of thisthe written notice, the county treasury is not	800
reimbursed for the amount shown on the written notice, the	801
prosecuting attorney of the county shall recover that amount from	802
the officer or employee or appointing authority who is liable	803
under this section by civil action in any court of appropriate	804
jurisdiction.	805

(G) Use of a county credit card for any use other than those	806
permitted under division (B)(1) of this section is a violation of	807
law for the purposes of section 2913.21 of the Revised Code.	808

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

809

(1) "Officer" includes an individual who also is an	810
appointing authority.	811

(2) "Procurement card" means a financial transaction device	812
as defined in section 301.28 of the Revised Code and as authorized	813
under this section, but excludes any credit card authorized under	814
section 301.27 of the Revised Code.	815

(B) A procurement card held by a board of county	816
commissioners or the office of any other county appointing	817
authority shall be used only to pay work-related expenses. No late	818
charges or finance charges shall be allowed as an allowable	819
expense unless authorized by the board of county commissioners.	820

(C)(1) In any county that chooses to use procurement cards,	821
the board of county commissioners shall, by resolution, adopt a	822
policy with the advice of the county auditor, for the county's use	823
of those cards. The resolution shall include provisions that limit	824
the use of a procurement card to payment for one or more specific	825
work-related or specific classes of work-related expenses, and	826
limit procurement card transactions to a specific number of	827
transactions per day, month, quarter, or other specified period as	828
authorized in division (F)(2) of this section, by supplier or	829
work-related expense. In addition, the resolution shall limit a	830
procurement card to daily and monthly spending limits.	831

The resolution also shall contain a list of administrative	832
controls that the board determines, after consulting with the	833
county auditor, will be sufficient for use of a procurement card.	834
Those administrative controls shall include at a minimum the	835
following:	836

(a) An aggregate amount that may be incurred through use of	837
each card within a day, week, or month;	838

(b) Classes of permissible goods and services that may be	839
purchased with a procurement card;	840

(c) In case a procurement card is misused, a procedure for	841
revocation of the card.	842

(2) The county auditor shall develop internal accounting	843
controls in consultation with the auditor of state for the	844
implementation of this section.	845

(3) If a board of county commissioners adopts a policy under	846
division (C)(1) of this section, it shall advertise a request for	847
proposals from issuers of procurement cards in a newspaper of	848
general circulation within the county at least once a week for two	849
consecutive weeks. The advertisement shall specify the purpose of	850
the request, the type of procurement card or cards sought, and the	851
date by which proposals must be received. That date shall not be	852
less than ten days after the last day of the second week in which	853
the request is advertised.	854

The board also may post the advertisement by electronic	855
means, including posting the advertisement on the county's	856
internet site on the world wide web. If the advertisement is	857
posted on the county web site, the board may eliminate the second	858
newspaper publication otherwise required by this division if the	859
first notice published in a newspaper of general circulation meets	860
all of the following:	861

(a) It is published at least two weeks before the date	862
required for the receipt of the proposals.	863

(b) It includes a statement that the notice is posted on the	864
county's internet site on the world wide web.	865

(c) It includes the county's internet address on the world	866
wide web.	867

(d) It provides instruction for accessing the advertisement	868
on the county web site.	869

The board shall determine upon the advice of the county	870
auditor and county treasurer whether to contract with any one or	871
more issuers that submit a timely proposal. Before entering into a	872
contract, the board shall adopt a resolution stating the	873
contract's intent and guidelines consistent with divisions (C)(1)	874
and (2) of this section for the use of each procurement card.	875

(D) A county appointing authority may apply to the board of	876
county commissioners for authorization to have an officer or	877
employee of the appointing authority use a procurement card held	878
by that appointing authority. The authorization request shall	879
state whether the card is to be issued only in the name of the	880
office of the appointing authority or whether the issued card also	881
shall include the name of a specified officer or employee.	882

(E) The debt incurred as a result of the use of a procurement	883
card under this section shall be paid from moneys appropriated to	884
specific appropriation line items of the appointing authority.	885

(F)(1) Except as otherwise provided in division (F)(2) of	886
this section, every officer or employee authorized to use a	887
procurement card held by the board or appointing authority shall	888
submit to the board by the first day of each month an estimate of	889
the officer's or employee's work-related expenses for that month,	890
unless the board authorizes, by resolution, the officer or	891
employee to submit to the board such an estimate for a period	892
longer than one month. The board may revise the estimate and	893
determine the amount it approves, if any, not to exceed the	894
estimated amount. The board shall certify the amount of its	895
determination to the county auditor along with the specific	896
appropriation line items from which the expenditures are to be	897
made. After receiving certification pursuant to division (D) of	898
section 5705.41 of the Revised Code that the specific	899
appropriation line item for which the procurement card is approved	900
for use is free from previous and then-outstanding obligations or	901
certifications, the board shall authorize the officer or employee	902
to incur debt for the expenses against the county's credit up to	903
the authorized amount.	904

(2) In lieu of following the procedure set forth in division	905
(F)(1) of this section, a board of county commissioners may adopt	906
a resolution authorizing an officer or employee of an appointing	907
authority to use a county procurement card to pay for specific	908
classes of work-related expenses, or to use a specific procurement	909
card for any work-related expenses, without submitting an estimate	910
of those expenses to the board as required by division (F)(1) of	911
this section. Prior to adopting the resolution, the board shall	912
notify the county auditor. The resolution shall specify whether	913
the officer's or employee's exemption extends to the use of a	914
specific procurement card, which card shall be identified by its	915
number, or to one or more specific work-related uses. Before any	916
procurement card issued for specific uses may be used to make	917
purchases for uses other than those specific uses listed in the	918
resolution, the procedures outlined in division (F)(1) of this	919
section must be followed or the use shall be considered an	920
unauthorized use. Use of any procurement card under division	921
(F)(2) of this section shall be limited to the amount appropriated	922
and encumbered in a specific appropriation line item for the	923
permitted use or uses designated in the authorizing resolution,	924
or, in the case of a resolution that authorizes use of a specific	925
procurement card, for any work-related expense, but only to the	926
extent the moneys in those specific appropriation line items are	927
not otherwise encumbered.	928

(3) A procurement card shall not be used in any manner that	929
circumvents the competitive bidding requirements of section 307.86	930
of the Revised Code.	931

(G)(1) Any time a county procurement card approved for use	932
for an authorized amount under division (F)(1) of this section is	933
used for more than that authorized amount, the appointing	934
authority may request the board of county commissioners to	935
authorize after the fact the expenditure of any amount charged	936
beyond the originally authorized amount if, upon the board's	937
request, the county auditor certifies that sum of money is in the	938
treasury or in the process of collection to the credit of the	939
appropriate appropriation line item for which the procurement card	940
was used, and is free from previous and then-outstanding	941
obligations or certifications. If the card is used for more than	942
the amount originally authorized and if for any reason that amount	943
is not authorized after the fact, the county treasury shall be	944
reimbursed for any amount spent beyond the originally authorized	945
amount in the following manner:	946

(a) If the card is issued in the name of a specific officer	947
or employee, the officer or employee is liable in person and upon	948
any official bond the officer or employee has given to the county	949
to reimburse the county treasury for the amount charged to the	950
county beyond the originally authorized amount.	951

(b) If the card is issued to the office of the appointing	952
authority, the appointing authority is liable in person and upon	953
any official bond the appointing authority has given to the county	954
for the amount charged to the county beyond the originally	955
authorized amount.	956

(2) No user of a county procurement card authorized for use	957
under division (F)(2) of this section shall use the card for any	958
expenditure that is more than the amount appropriated under that	959
division. If at any time a county procurement card authorized for	960
use under division (F)(2) of this section is used for more than	961
the amount appropriated under that division, the appointing	962
authority may request the board of county commissioners to issue a	963
supplemental appropriation or make a transfer to the specific	964
appropriation line items as permitted in section 5705.40 of the	965
Revised Code, to cover the amount charged beyond the originally	966
appropriated amount. If the card is used for more than the amount	967
originally appropriated and if for any reason that amount is not	968
appropriated or transferred as permitted by this division, the	969
county treasury shall be reimbursed for any amount spent beyond	970
the originally appropriated amount in the following manner:	971

(a) If the card is issued in the name of a specific officer	972
or employee, the officer or employee is liable in person and upon	973
any official bond the officer or employee has given to the county	974
for reimbursing the county treasury for any amount charged on the	975
card beyond the originally appropriated amount.	976

(b) If the card is issued in the name of the office of the	977
appointing authority, the appointing authority is liable in person	978
and upon any official bond the appointing authority has given to	979
the county for reimbursement for any amount charged on the card	980
beyond the originally appropriated amount.	981

(3) Whenever any officer or employee who is authorized to use	982
a procurement card held by the board or the office of any other	983
county appointing authority suspects the loss, theft, or	984
possibility of unauthorized or unlawful use of the card, the	985
officer or employee shall notify the county auditor and the	986
officer's or employee's appointing authority or the board	987
immediately and in writing.	988

(4) If the county auditor determines there has been a	989
procurement card expenditure beyond the appropriated or authorized	990
amount as provided in division (F) of this section, or for an	991
unlawful purpose, the auditor immediately shall notify the board	992
of county commissioners. When the board determines, on its own or	993
after notification from the county auditor, that the county	994
treasury should be reimbursed for procurement card expenditures	995
beyond the appropriated or authorized amount as provided in	996
divisions (G)(1) and (2) of this section, it shall give written	997
notice to the county auditor and to the officer or employee or	998
appointing authority liable to the treasury as provided in those	999
divisions. If, within thirty days after issuance of this written	1000
notice, the county treasury is not reimbursed for the amount shown	1001
on the written notice, the prosecuting attorney of the county	1002
shall recover that amount from the officer or employee or	1003
appointing authority who is liable under this section by civil	1004
action in any court of appropriate jurisdiction.	1005

(H) Use of a county procurement card for any use other than	1006
those permitted under division (B) of this section is a violation	1007
of law for the purposes of section 2913.21 of the Revised Code.	1008

Sec. 505.10.  The board of township trustees may accept, on	1009
behalf of the township, the donation by bequest, devise, deed of	1010
gift, or otherwise, of any real or personal property for any	1011
township use. When the township has property, including motor	1012
vehicles, road machinery, equipment, and tools, which the board,	1013
by resolution, finds it doesis not needneeded for public use, is	1014
obsolete, or is unfit for the use for which it was acquired, the	1015
board may sell and convey that property or otherwise dispose of it	1016
in accordance with this section. Except as otherwise provided in	1017
sections 505.08, 505.101, and 505.102 of the Revised Code, the	1018
sale or other disposition of unneeded, obsolete, or unfit for use	1019
property shall be made in accordance with one of the following:	1020

(A)(1) If the fair market value of property to be sold is, in	1021
the opinion of the board, in excess of two thousand five hundred	1022
dollars, the sale shall be by public auction, and theor by sealed	1023
bid to the highest bidder. The board shall publish notice of the	1024
time, place, and manner of the sale once a week for three weeks in	1025
a newspaper published, or of general circulation, in the township,	1026
the last of those publications to be at least five days before the	1027
date of sale, and shall post a typewritten or printed notice of	1028
the time, place, and manner of the sale in the office of the board	1029
for at least ten days prior to the sale.	1030

If the board conducts the sale of the property by sealed bid,	1031
the form of the bid shall be as prescribed by the board, and each	1032
bid shall contain the name of the person submitting it. Bids	1033
received shall be opened and tabulated at the time stated in the	1034
published and posted notices. The property shall be sold to the	1035
highest bidder, except that the board may reject all bids and hold	1036
another sale, by public auction or sealed bid, in the manner	1037
prescribed by this section.	1038

(2) If the fair market value of property to be sold is, in	1039
the opinion of the board, two thousand five hundred dollars or	1040
less, the board may sell the property by private sale, without	1041
advertisement or public notification.	1042

(3) If the board finds, by resolution, that the township has	1043
motor vehicles, road machinery, equipment, or tools which are not	1044
needed or are unfit for public use, and the board wishes to sell	1045
the motor vehicles, road machinery, equipment, or tools to the	1046
person or firm from which it proposes to purchase other motor	1047
vehicles, road machinery, equipment, or tools, the board may offer	1048
to sell the motor vehicles, road machinery, equipment, or tools to	1049
that person or firm, and to have the selling price credited to the	1050
person or firm against the purchase price of other motor vehicles,	1051
road machinery, equipment, or tools.	1052

(4) If the board advertises for bids for the sale of new	1053
motor vehicles, road machinery, equipment, or tools to the	1054
township, it may include in the same advertisement a notice of the	1055
willingness of the board to accept bids for the purchase of	1056
township-owned motor vehicles, road machinery, equipment, or tools	1057
which are obsolete or not needed for public use, and to have the	1058
amount of those bids subtracted from the selling price of the new	1059
motor vehicles, road machinery, equipment, or tools, as a means of	1060
determining the lowest responsible bidder.	1061

(5) When a township has title to real property, the board of	1062
township trustees, by resolution, may authorize the transfer and	1063
conveyance of that property to any other political subdivision of	1064
the state upon such terms as are agreed to between the board and	1065
the legislative authority of that political subdivision.	1066

(6) When a township has title to real property and the board	1067
of township trustees wishes to sell or otherwise transfer the	1068
property, the board, upon a unanimous vote of its members and by	1069
resolution, may authorize the transfer and conveyance of that real	1070
property to any person upon whatever terms are agreed to between	1071
the board and that person.	1072

(7) If the board of township trustees determines that	1073
township personal property is not needed for public use, or is	1074
obsolete or unfit for the use for which it was acquired, and that	1075
the property has no value, the board may discard or salvage that	1076
property.	1077

(B) When the board has offered property at public auction	1078
under this section and has not received an acceptable offer, the	1079
board, by resolution, may enter into a contract, without	1080
advertising or bidding, for the sale of that property. The	1081
resolution shall specify a minimum acceptable price and the	1082
minimum acceptable terms for the contract. The minimum acceptable	1083
price shall not be lower than the minimum price established for	1084
the public auction.	1085

(C) Notwithstanding anything to the contrary in division (A)	1086
or (B) of this section and regardless of the property's value, the	1087
board of township trustees may sell personal property, including	1088
motor vehicles, road machinery, equipment, tools, or supplies,	1089
which is not needed for public use, or is obsolete or unfit for	1090
the use for which it was acquired, by internet auction. The board	1091
shall adopt, during each calendar year, a resolution expressing	1092
its intent to sell that property by internet auction. The	1093
resolution shall include a description of how the auctions will be	1094
conducted and shall specify the number of days for bidding on the	1095
property, which shall be no less than fifteen days, including	1096
Saturdays, Sundays, and legal holidays. The resolution shall	1097
indicate whether the township will conduct the auction or the	1098
board will contract with a representative to conduct the auction	1099
and shall establish the general terms and conditions of sale. If a	1100
representative is known when the resolution is adopted, the	1101
resolution shall provide contact information such as the	1102
representative's name, address, and telephone number.	1103

After adoption of the resolution, the board shall publish, in	1104
a newspaper of general circulation in the township, notice of its	1105
intent to sell unneeded, obsolete, or unfit for use township	1106
personal property by internet auction. The notice shall include a	1107
summary of the information provided in the resolution and shall be	1108
published at least twice. The second and any subsequent notice	1109
shall be published not less than ten nor more than twenty days	1110
after the previous notice. A clerk also shall post a similar	1111
notice throughout the calendar year in a conspicuous place in the	1112
board's office, and, if the township maintains a websiteweb site	1113
on the internet, the notice shall be posted continually throughout	1114
the calendar year at that websiteweb site.	1115

When property is to be sold by internet auction, the board or	1116
its representative may establish a minimum price that will be	1117
accepted for specific items and may establish any other terms and	1118
conditions for the particular sale, including requirements for	1119
pick-up or delivery, method of payment, and sales tax. This type	1120
of information shall be provided on the internet at the time of	1121
the auction and may be provided before that time upon request	1122
after the terms and conditions have been determined by the board	1123
or its representative.	1124

As used in this section, "internet" means the international	1125
computer network of both federal and nonfederal interoperable	1126
packet switched data networks, including the graphical subnetwork	1127
called the world wide web.	1128

Sec. 2913.01.  As used in this chapter, unless the context	1129
requires that a term be given a different meaning:	1130

(A) "Deception" means knowingly deceiving another or causing	1131
another to be deceived by any false or misleading representation,	1132
by withholding information, by preventing another from acquiring	1133
information, or by any other conduct, act, or omission that	1134
creates, confirms, or perpetuates a false impression in another,	1135
including a false impression as to law, value, state of mind, or	1136
other objective or subjective fact.	1137

(B) "Defraud" means to knowingly obtain, by deception, some	1138
benefit for oneself or another, or to knowingly cause, by	1139
deception, some detriment to another.	1140

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

1141

(1) Withhold property of another permanently, or for a period	1142
that appropriates a substantial portion of its value or use, or	1143
with purpose to restore it only upon payment of a reward or other	1144
consideration;	1145

(2) Dispose of property so as to make it unlikely that the	1146
owner will recover it;	1147

(3) Accept, use, or appropriate money, property, or services,	1148
with purpose not to give proper consideration in return for the	1149
money, property, or services, and without reasonable justification	1150
or excuse for not giving proper consideration.	1151

(D) "Owner" means, unless the context requires a different	1152
meaning, any person, other than the actor, who is the owner of,	1153
who has possession or control of, or who has any license or	1154
interest in property or services, even though the ownership,	1155
possession, control, license, or interest is unlawful.	1156

(E) "Services" include labor, personal services, professional	1157
services, public utility services, common carrier services, and	1158
food, drink, transportation, entertainment, and cable television	1159
services and, for purposes of section 2913.04 of the Revised Code,	1160
include cable services as defined in that section.	1161

(F) "Writing" means any computer software, document, letter,	1162
memorandum, note, paper, plate, data, film, or other thing having	1163
in or upon it any written, typewritten, or printed matter, and any	1164
token, stamp, seal, credit card, badge, trademark, label, or other	1165
symbol of value, right, privilege, license, or identification.	1166

(G) "Forge" means to fabricate or create, in whole or in part	1167
and by any means, any spurious writing, or to make, execute,	1168
alter, complete, reproduce, or otherwise purport to authenticate	1169
any writing, when the writing in fact is not authenticated by that	1170
conduct.	1171

(H) "Utter" means to issue, publish, transfer, use, put or	1172
send into circulation, deliver, or display.	1173

(I) "Coin machine" means any mechanical or electronic device	1174
designed to do both of the following:	1175

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

1176

(2) In return for the insertion or deposit of a coin, bill,	1177
or token, automatically dispense property, provide a service, or	1178
grant a license.	1179

(J) "Slug" means an object that, by virtue of its size,	1180
shape, composition, or other quality, is capable of being inserted	1181
or deposited in a coin machine as an improper substitute for a	1182
genuine coin, bill, or token made for that purpose.	1183

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

1184

(1) A violation of section 2911.01, 2911.02, 2911.11,	1185
2911.12, 2911.13, 2911.31, 2911.32, 2913.02, 2913.03, 2913.04,	1186
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	1187
2913.33, 2913.34, 2913.40, 2913.42, 2913.43, 2913.44, 2913.45,	1188
2913.47, former section 2913.47 or 2913.48, or section 2913.51,	1189
2915.05, or 2921.41 of the Revised Code;	1190

(2) A violation of an existing or former municipal ordinance	1191
or law of this or any other state, or of the United States,	1192
substantially equivalent to any section listed in division (K)(1)	1193
of this section or a violation of section 2913.41, 2913.81, or	1194
2915.06 of the Revised Code as it existed prior to July 1, 1996;	1195

(3) An offense under an existing or former municipal	1196
ordinance or law of this or any other state, or of the United	1197
States, involving robbery, burglary, breaking and entering, theft,	1198
embezzlement, wrongful conversion, forgery, counterfeiting,	1199
deceit, or fraud;	1200

(4) A conspiracy or attempt to commit, or complicity in	1201
committing, any offense under division (K)(1), (2), or (3) of this	1202
section.	1203

(L) "Computer services" includes, but is not limited to, the	1204
use of a computer system, computer network, computer program, data	1205
that is prepared for computer use, or data that is contained	1206
within a computer system or computer network.	1207

(M) "Computer" means an electronic device that performs	1208
logical, arithmetic, and memory functions by the manipulation of	1209
electronic or magnetic impulses. "Computer" includes, but is not	1210
limited to, all input, output, processing, storage, computer	1211
program, or communication facilities that are connected, or	1212
related, in a computer system or network to an electronic device	1213
of that nature.	1214

(N) "Computer system" means a computer and related devices,	1215
whether connected or unconnected, including, but not limited to,	1216
data input, output, and storage devices, data communications	1217
links, and computer programs and data that make the system capable	1218
of performing specified special purpose data processing tasks.	1219

(O) "Computer network" means a set of related and remotely	1220
connected computers and communication facilities that includes	1221
more than one computer system that has the capability to transmit	1222
among the connected computers and communication facilities through	1223
the use of computer facilities.	1224

(P) "Computer program" means an ordered set of data	1225
representing coded instructions or statements that, when executed	1226
by a computer, cause the computer to process data.	1227

(Q) "Computer software" means computer programs, procedures,	1228
and other documentation associated with the operation of a	1229
computer system.	1230

(R) "Data" means a representation of information, knowledge,	1231
facts, concepts, or instructions that are being or have been	1232
prepared in a formalized manner and that are intended for use in a	1233
computer, computer system, or computer network. For purposes of	1234
section 2913.47 of the Revised Code, "data" has the additional	1235
meaning set forth in division (A) of that section.	1236

(S) "Cable television service" means any services provided by	1237
or through the facilities of any cable television system or other	1238
similar closed circuit coaxial cable communications system, or any	1239
microwave or similar transmission service used in connection with	1240
any cable television system or other similar closed circuit	1241
coaxial cable communications system.	1242

(T) "Gain access" means to approach, instruct, communicate	1243
with, store data in, retrieve data from, or otherwise make use of	1244
any resources of a computer, computer system, or computer network,	1245
or any cable service or cable system both as defined in section	1246
2913.04 of the Revised Code.	1247

(U) "Credit card" includes, but is not limited to, a card,	1248
code, device, or other means of access to a customer's account for	1249
the purpose of obtaining money, property, labor, or services on	1250
credit, or for initiating an electronic fund transfer at a	1251
point-of-sale terminal, an automated teller machine, or a cash	1252
dispensing machine. It also includes a county procurement card	1253
issued under section 301.29 of the Revised Code.	1254

(V) "Electronic fund transfer" has the same meaning as in 92	1255
Stat. 3728, 15 U.S.C.A. 1693a, as amended.	1256

(W) "Rented property" means personal property in which the	1257
right of possession and use of the property is for a short and	1258
possibly indeterminate term in return for consideration; the	1259
rentee generally controls the duration of possession of the	1260
property, within any applicable minimum or maximum term; and the	1261
amount of consideration generally is determined by the duration of	1262
possession of the property.	1263

(X) "Telecommunication" means the origination, emission,	1264
dissemination, transmission, or reception of data, images,	1265
signals, sounds, or other intelligence or equivalence of	1266
intelligence of any nature over any communications system by any	1267
method, including, but not limited to, a fiber optic, electronic,	1268
magnetic, optical, digital, or analog method.	1269

(Y) "Telecommunications device" means any instrument,	1270
equipment, machine, or other device that facilitates	1271
telecommunication, including, but not limited to, a computer,	1272
computer network, computer chip, computer circuit, scanner,	1273
telephone, cellular telephone, pager, personal communications	1274
device, transponder, receiver, radio, modem, or device that	1275
enables the use of a modem.	1276

(Z) "Telecommunications service" means the providing,	1277
allowing, facilitating, or generating of any form of	1278
telecommunication through the use of a telecommunications device	1279
over a telecommunications system.	1280

(AA) "Counterfeit telecommunications device" means a	1281
telecommunications device that, alone or with another	1282
telecommunications device, has been altered, constructed,	1283
manufactured, or programmed to acquire, intercept, receive, or	1284
otherwise facilitate the use of a telecommunications service or	1285
information service without the authority or consent of the	1286
provider of the telecommunications service or information service.	1287
"Counterfeit telecommunications device" includes, but is not	1288
limited to, a clone telephone, clone microchip, tumbler telephone,	1289
or tumbler microchip; a wireless scanning device capable of	1290
acquiring, intercepting, receiving, or otherwise facilitating the	1291
use of telecommunications service or information service without	1292
immediate detection; or a device, equipment, hardware, or software	1293
designed for, or capable of, altering or changing the electronic	1294
serial number in a wireless telephone.	1295

(BB)(1) "Information service" means, subject to division	1296
(BB)(2) of this section, the offering of a capability for	1297
generating, acquiring, storing, transforming, processing,	1298
retrieving, utilizing, or making available information via	1299
telecommunications, including, but not limited to, electronic	1300
publishing.	1301

(2) "Information service" does not include any use of a	1302
capability of a type described in division (BB)(1) of this section	1303
for the management, control, or operation of a telecommunications	1304
system or the management of a telecommunications service.	1305

(CC) "Elderly person" means a person who is sixty-five years	1306
of age or older.	1307

(DD) "Disabled adult" means a person who is eighteen years of	1308
age or older and has some impairment of body or mind that makes	1309
the person unfit to work at any substantially remunerative	1310
employment that the person otherwise would be able to perform and	1311
that will, with reasonable probability, continue for a period of	1312
at least twelve months without any present indication of recovery	1313
from the impairment, or who is eighteen years of age or older and	1314
has been certified as permanently and totally disabled by an	1315
agency of this state or the United States that has the function of	1316
so classifying persons.	1317

(EE) "Firearm" and "dangerous ordnance" have the same	1318
meanings as in section 2923.11 of the Revised Code.	1319

(FF) "Motor vehicle" has the same meaning as in section	1320
4501.01 of the Revised Code.	1321

(GG) "Dangerous drug" has the same meaning as in section	1322
4729.01 of the Revised Code.	1323

(HH) "Drug abuse offense" has the same meaning as in section	1324
2925.01 of the Revised Code.	1325

Sec. 5575.01. (A) In the maintenance and repair of roads,	1326
the board of township trustees may proceed either by contract or	1327
force account, provided the board hasbut, unless the exemption	1328
specified in division (C) of this section applies, if the board	1329
wishes to proceed by force account, it first causedshall cause	1330
the county engineer to complete the force account assessment form	1331
developed by the auditor of state under section 117.16 of the	1332
Revised Code. Except as otherwise provided in sections 505.08 and	1333
505.101 of the Revised Code, when the board proceeds by contract,	1334
the contract shall, if the amount involved exceeds forty-five	1335
thousand dollars, be let by the board to the lowest responsible	1336
bidder after advertisement for bids once, not later than two	1337
weeks, prior to the date fixed for the letting of suchthe	1338
contract, in a newspaper published in the county and of general	1339
circulation within the township, butor, if there is no such paper	1340
newspaper is published in the county, then in onea newspaper	1341
having general circulation in the township. If the amount involved	1342
is forty-five thousand dollars or less, a contract may be let	1343
without competitive bidding, or the work may be done by force	1344
account. Such a contract shall be performed under the supervision	1345
of a member of the board or the township road superintendent.	1346

(B) Before undertaking the construction or reconstruction of	1347
a township road, the board shall cause to be made by the county	1348
engineer an estimate of the cost of suchthe work, which estimate	1349
shall include labor, material, freight, fuel, hauling, use of	1350
machinery and equipment, and all other items of cost. If the board	1351
finds it in the best interest of the public, it may, in lieu of	1352
constructing the road by contract, proceed to construct the road	1353
by force account. Except as otherwise provided under sections	1354
505.08 and 505.101 of the Revised Code, where the total estimate	1355
cost of the work exceeds fifteen thousand dollars per mile, the	1356
board shall invite and receive competitive bids for furnishing all	1357
the labor, materials, and equipment and doing the work, as	1358
provided in section 5575.02 of the Revised Code, and shall	1359
consider and reject them before ordering the work done by force	1360
account. When such bids are received, considered, and rejected,	1361
and the work is done by force account, suchthe work shall be	1362
performed in compliance with the plans and specifications upon	1363
which the bids were based.	1364

(C) Force account assessment forms are not required under	1365
division (A) of this section for road maintenance or repair	1366
projects of less than fifteen thousand dollars, or under division	1367
(B) of this section for road construction or reconstruction	1368
projects of less than five thousand dollars per mile.	1369

(D) All force account work under this section shall be done	1370
under the direction of a member of the board or the township road	1371
superintendent.	1372

Sec. 5705.41.  No subdivision or taxing unit shall:

1373

(A) Make any appropriation of money except as provided in	1374
Chapter 5705. of the Revised Code; provided, that the	1375
authorization of a bond issue shall be deemed to be an	1376
appropriation of the proceeds of the bond issue for the purpose	1377
for which such bonds were issued, but no expenditure shall be made	1378
from any bond fund until first authorized by the taxing authority;	1379

(B) Make any expenditure of money unless it has been	1380
appropriated as provided in such chapter;	1381

(C) Make any expenditure of money except by a proper warrant	1382
drawn against an appropriate fund;	1383

(D)(1) Except as otherwise provided in division (D)(2) of	1384
this section and section 5705.44 of the Revised Code, make any	1385
contract or give any order involving the expenditure of money	1386
unless there is attached thereto a certificate of the fiscal	1387
officer of the subdivision that the amount required to meet the	1388
obligation or, in the case of a continuing contract to be	1389
performed in whole or in part in an ensuing fiscal year, the	1390
amount required to meet the obligation in the fiscal year in which	1391
the contract is made, has been lawfully appropriated for such	1392
purpose and is in the treasury or in process of collection to the	1393
credit of an appropriate fund free from any previous encumbrances.	1394
This certificate need be signed only by the subdivision's fiscal	1395
officer. Every such contract made without such a certificate shall	1396
be void, and no warrant shall be issued in payment of any amount	1397
due thereon. If no certificate is furnished as required, upon	1398
receipt by the taxing authority of the subdivision or taxing unit	1399
of a certificate of the fiscal officer stating that there was at	1400
the time of the making of such contract or order and at the time	1401
of the execution of such certificate a sufficient sum appropriated	1402
for the purpose of such contract and in the treasury or in process	1403
of collection to the credit of an appropriate fund free from any	1404
previous encumbrances, such taxing authority may authorize the	1405
drawing of a warrant in payment of amounts due upon such contract,	1406
but such resolution or ordinance shall be passed within thirty	1407
days after the taxing authority receives such certificate;	1408
provided that, if the amount involved is less than one hundred	1409
dollars in the case of counties or three thousand dollars in the	1410
case of all other subdivisions or taxing units, the fiscal officer	1411
may authorize it to be paid without such affirmation of the taxing	1412
authority of the subdivision or taxing unit, if such expenditure	1413
is otherwise valid.	1414

(2) Annually, the board of county commissioners may adopt a	1415
resolution exempting for the current fiscal year county purchases	1416
of seven hundred fiftyone thousand dollars or less from the	1417
requirement of division (D)(1) of this section that a certificate	1418
be attached to any contract or order involving the expenditure of	1419
money. The resolution shall state the dollar amount that is	1420
exempted from the certificate requirement and whether the	1421
exemption applies to all purchases, to one or more specific	1422
classes of purchases, or to the purchase of one or more specific	1423
items. Prior to the adoption of the resolution, the board shall	1424
give written notice to the county auditor that it intends to adopt	1425
the resolution. The notice shall state the dollar amount that is	1426
proposed to be exempted and whether the exemption would apply to	1427
all purchases, to one or more specific classes of purchases, or to	1428
the purchase of one or more specific items. The county auditor may	1429
review and comment on the proposal, and shall send any comments to	1430
the board within fifteen days after receiving the notice. The	1431
board shall wait at least fifteen days after giving the notice to	1432
the auditor before adopting the resolution. A person authorized to	1433
make a county purchase in a county that has adopted such a	1434
resolution shall prepare and file with the county auditor, within	1435
three business days after incurring an obligation not requiring a	1436
certificate, or within any other period of time the board of	1437
county commissioners specifies in the resolution, a written or	1438
electronically transferred document specifying the purpose and	1439
amount of the expenditure, the date of the purchase, the name of	1440
the vendor, the specific appropriation items from which the	1441
expenditures are to be made, and suchany additional information	1442
as the auditor of state may prescribe.	1443

(3) Upon certification by the auditor or other chief fiscal	1444
officer that a certain sum of money, not in excess of an amount	1445
established by resolution or ordinance adopted by a majority of	1446
the members of the legislative authority of the subdivision or	1447
taxing unit, has been lawfully appropriated, authorized, or	1448
directed for a certain purpose and is in the treasury or in the	1449
process of collection to the credit of a specific line-item	1450
appropriation account in a certain fund free from previous and	1451
then outstanding obligations or certifications, then for such	1452
purpose and from such line-item appropriation account in such	1453
fund, over a period not extending beyond the end of the fiscal	1454
year, expenditures may be made, orders for payment issued, and	1455
contracts or obligations calling for or requiring the payment of	1456
money made and assumed; provided, that the aggregate sum of money	1457
included in and called for by such expenditures, orders,	1458
contracts, and obligations shall not exceed the sum so certified.	1459
Such a certification need be signed only by the fiscal officer of	1460
the subdivision or the taxing district and may, but need not, be	1461
limited to a specific vendor. An itemized statement of obligations	1462
incurred and expenditures made under such certificate shall be	1463
rendered to the auditor or other chief fiscal officer before	1464
another such certificate may be issued, and not more than one such	1465
certificate shall be outstanding at a time.	1466

In addition to providing the certification for expenditures	1467
as specified in this division, a subdivision also may make	1468
expenditures, issue orders for payment, and make contracts or	1469
obligations calling for or requiring the payment of money made and	1470
assumed for specified permitted purposes from a specific line-item	1471
appropriation account in a specified fund for a sum of money upon	1472
the certification by the fiscal officer of the subdivision that	1473
this sum of money has been lawfully appropriated, authorized, or	1474
directed for a permitted purpose and is in the treasury or in the	1475
process of collection to the credit of the specific line-item	1476
appropriation account in the specified fund free from previous and	1477
then-outstanding obligations or certifications; provided that the	1478
aggregate sum of money included in and called for by the	1479
expenditures, orders, and obligations shall not exceed the	1480
certified sum. The purposes for which a subdivision may lawfully	1481
appropriate, authorize, or issue such a certificate are the	1482
services of an accountant, architect, attorney at law, physician,	1483
professional engineer, construction project manager, consultant,	1484
surveyor, or appraiser by or on behalf of the subdivision or	1485
contracting authority; fuel oil, gasoline, food items, roadway	1486
materials, and utilities; and any purchases exempt from	1487
competitive bidding under section 125.04 of the Revised Code and	1488
any other specific expenditure that is a recurring and reasonably	1489
predictable operating expense. Such a certification shall not	1490
extend beyond the end of the fiscal year or, in the case of a	1491
board of county commissioners that has established a quarterly	1492
spending plan under section 5705.392 of the Revised Code, beyond	1493
the quarter to which the plan applies. Such a certificate shall be	1494
signed by the fiscal officer and may, but need not, be limited to	1495
a specific vendor. An itemized statement of obligations incurred	1496
and expenditures made under such a certificate shall be rendered	1497
to the fiscal officer for each certificate issued. More than one	1498
such certificate may be outstanding at any time.	1499

In any case in which a contract is entered into upon a per	1500
unit basis, the head of the department, board, or commission for	1501
the benefit of which the contract is made shall make an estimate	1502
of the total amount to become due upon such contract, which	1503
estimate shall be certified in writing to the fiscal officer of	1504
the subdivision. Such a contract may be entered into if the	1505
appropriation covers such estimate, or so much thereof as may be	1506
due during the current year. In such a case the certificate of the	1507
fiscal officer based upon the estimate shall be a sufficient	1508
compliance with the law requiring a certificate.	1509

Any certificate of the fiscal officer attached to a contract	1510
shall be binding upon the political subdivision as to the facts	1511
set forth therein. Upon request of any person receiving an order	1512
or entering into a contract with any political subdivision, the	1513
certificate of the fiscal officer shall be attached to such order	1514
or contract. "Contract" as used in this section excludes current	1515
payrolls of regular employees and officers.	1516

(E) Taxes and other revenue in process of collection, or the	1517
proceeds to be derived from authorized bonds, notes, or	1518
certificates of indebtedness sold and in process of delivery,	1519
shall for the purpose of this section be deemed in the treasury or	1520
in process of collection and in the appropriate fund. This section	1521
applies neither to the investment of sinking funds by the trustees	1522
of such funds, nor to investments made under sections 731.56 to	1523
731.59 of the Revised Code.	1524

No district authority shall, in transacting its own affairs,	1525
do any of the things prohibited to a subdivision by this section,	1526
but the appropriation referred to shall become the appropriation	1527
by the district authority, and the fiscal officer referred to	1528
shall mean the fiscal officer of the district authority.	1529

Sec. 5709.62.  (A) In any municipal corporation that is	1530
defined by the United States office of management and budget as a	1531
central city of a metropolitan statistical area, or in a city	1532
designated as an urban cluster in a rural statistical area, the	1533
legislative authority of the municipal corporation may designate	1534
one or more areas within its municipal corporation as proposed	1535
enterprise zones. Upon designating an area, the legislative	1536
authority shall petition the director of development for	1537
certification of the area as having the characteristics set forth	1538
in division (A)(1) of section 5709.61 of the Revised Code as	1539
amended by Substitute Senate Bill No. 19 of the 120th general	1540
assembly. Except as otherwise provided in division (E) of this	1541
section, on and after July 1, 1994, legislative authorities shall	1542
not enter into agreements under this section unless the	1543
legislative authority has petitioned the director and the director	1544
has certified the zone under this section as amended by that act;	1545
however, all agreements entered into under this section as it	1546
existed prior to July 1, 1994, and the incentives granted under	1547
those agreements shall remain in effect for the period agreed to	1548
under those agreements. Within sixty days after receiving such a	1549
petition, the director shall determine whether the area has the	1550
characteristics set forth in division (A)(1) of section 5709.61 of	1551
the Revised Code, and shall forward the findings to the	1552
legislative authority of the municipal corporation. If the	1553
director certifies the area as having those characteristics, and	1554
thereby certifies it as a zone, the legislative authority may	1555
enter into an agreement with an enterprise under division (C) of	1556
this section.	1557

(B) Any enterprise that wishes to enter into an agreement	1558
with a municipal corporation under division (C) of this section	1559
shall submit a proposal to the legislative authority of the	1560
municipal corporation on a form prescribed by the director of	1561
development, together with the application fee established under	1562
section 5709.68 of the Revised Code. The form shall require the	1563
following information:	1564

(1) An estimate of the number of new employees whom the	1565
enterprise intends to hire, or of the number of employees whom the	1566
enterprise intends to retain, within the zone at a facility that	1567
is a project site, and an estimate of the amount of payroll of the	1568
enterprise attributable to these employees;	1569

(2) An estimate of the amount to be invested by the	1570
enterprise to establish, expand, renovate, or occupy a facility,	1571
including investment in new buildings, additions or improvements	1572
to existing buildings, machinery, equipment, furniture, fixtures,	1573
and inventory;	1574

(3) A listing of the enterprise's current investment, if any,	1575
in a facility as of the date of the proposal's submission.	1576

The enterprise shall review and update the listings required	1577
under this division to reflect material changes, and any agreement	1578
entered into under division (C) of this section shall set forth	1579
final estimates and listings as of the time the agreement is	1580
entered into. The legislative authority may, on a separate form	1581
and at any time, require any additional information necessary to	1582
determine whether an enterprise is in compliance with an agreement	1583
and to collect the information required to be reported under	1584
section 5709.68 of the Revised Code.	1585

(C) Upon receipt and investigation of a proposal under	1586
division (B) of this section, if the legislative authority finds	1587
that the enterprise submitting the proposal is qualified by	1588
financial responsibility and business experience to create and	1589
preserve employment opportunities in the zone and improve the	1590
economic climate of the municipal corporation, the legislative	1591
authority, on or before October 15, 2009, may do one of the	1592
following:	1593

(1) Enter into an agreement with the enterprise under which	1594
the enterprise agrees to establish, expand, renovate, or occupy a	1595
facility and hire new employees, or preserve employment	1596
opportunities for existing employees, in return for one or more of	1597
the following incentives:	1598

(a) Exemption for a specified number of years, not to exceed	1599
ten, of a specified portion, up to seventy-five per cent, of the	1600
assessed value of tangible personal property first used in	1601
business at the project site as a result of the agreement. An	1602
exemption granted pursuant to this division applies to inventory	1603
required to be listed pursuant to sections 5711.15 and 5711.16 of	1604
the Revised Code, except that, in the instance of an expansion or	1605
other situations in which an enterprise was in business at the	1606
facility prior to the establishment of the zone, the inventory	1607
that is exempt is that amount or value of inventory in excess of	1608
the amount or value of inventory required to be listed in the	1609
personal property tax return of the enterprise in the return for	1610
the tax year in which the agreement is entered into.	1611

(b) Exemption for a specified number of years, not to exceed	1612
ten, of a specified portion, up to seventy-five per cent, of the	1613
increase in the assessed valuation of real property constituting	1614
the project site subsequent to formal approval of the agreement by	1615
the legislative authority;	1616

(c) Provision for a specified number of years, not to exceed	1617
ten, of any optional services or assistance that the municipal	1618
corporation is authorized to provide with regard to the project	1619
site.	1620

(2) Enter into an agreement under which the enterprise agrees	1621
to remediate an environmentally contaminated facility, to spend an	1622
amount equal to at least two hundred fifty per cent of the true	1623
value in money of the real property of the facility prior to	1624
remediation as determined for the purposes of property taxation to	1625
establish, expand, renovate, or occupy the remediated facility,	1626
and to hire new employees or preserve employment opportunities for	1627
existing employees at the remediated facility, in return for one	1628
or more of the following incentives:	1629

(a) Exemption for a specified number of years, not to exceed	1630
ten, of a specified portion, not to exceed fifty per cent, of the	1631
assessed valuation of the real property of the facility prior to	1632
remediation;	1633

(b) Exemption for a specified number of years, not to exceed	1634
ten, of a specified portion, not to exceed one hundred per cent,	1635
of the increase in the assessed valuation of the real property of	1636
the facility during or after remediation;	1637

(c) The incentive under division (C)(1)(a) of this section,	1638
except that the percentage of the assessed value of such property	1639
exempted from taxation shall not exceed one hundred per cent;	1640

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

1641

(3) Enter into an agreement with an enterprise that plans to	1642
purchase and operate a large manufacturing facility that has	1643
ceased operation or announced its intention to cease operation, in	1644
return for exemption for a specified number of years, not to	1645
exceed ten, of a specified portion, up to one hundred per cent, of	1646
the assessed value of tangible personal property used in business	1647
at the project site as a result of the agreement, or of the	1648
assessed valuation of real property constituting the project site,	1649
or both.	1650

(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this	1651
section, the portion of the assessed value of tangible personal	1652
property or of the increase in the assessed valuation of real	1653
property exempted from taxation under those divisions may exceed	1654
seventy-five per cent in any year for which that portion is	1655
exempted if the average percentage exempted for all years in which	1656
the agreement is in effect does not exceed sixty per cent, or if	1657
the board of education of the city, local, or exempted village	1658
school district within the territory of which the property is or	1659
will be located approves a percentage in excess of seventy-five	1660
per cent.	1661

(2) Notwithstanding any provision of the Revised Code to the	1662
contrary, the exemptions described in divisions (C)(1)(a), (b),	1663
and (c), (C)(2)(a), (b), and (c), and (C)(3) of this section may	1664
be for up to fifteen years if the board of education of the city,	1665
local, or exempted village school district within the territory in	1666
which the property is or will be located approves a number of	1667
years in excess of ten, but only if the project that is part of	1668
the agreement includes a fixed asset investment of at least one	1669
hundred million dollars or the director of development determines	1670
there are extraordinary circumstances. For	1671

(3) For the purpose of obtaining such approvalthe approval	1672
of a city, local, or exempted village school district under	1673
division (D)(1) or (2) of this section, the legislative authority	1674
shall deliver to the board of education a notice not later than	1675
forty-five days prior to approving the agreement, excluding	1676
Saturdays, Sundays, and legal holidays as defined in section 1.14	1677
of the Revised Code. The notice shall state the percentage to be	1678
exempted, an estimate of the true value of the property to be	1679
exempted, and the number of years the property is to be exempted.	1680
The board of education, by resolution adopted by a majority of the	1681
board, shall approve or disapprove the agreement and certify a	1682
copy of the resolution to the legislative authority not later than	1683
fourteen days prior to the date stipulated by the legislative	1684
authority as the date upon which approval of the agreement is to	1685
be formally considered by the legislative authority. The board of	1686
education may include in the resolution conditions under which the	1687
board would approve the agreement, including the execution of an	1688
agreement to compensate the school district under division (B) of	1689
section 5709.82 of the Revised Code. The legislative authority may	1690
approve the agreement at any time after the board of education	1691
certifies its resolution approving the agreement to the	1692
legislative authority, or, if the board approves the agreement	1693
conditionally, at any time after the conditions are agreed to by	1694
the board and the legislative authority.	1695

If a board of education has adopted a resolution waiving its	1696
right to approve agreements and the resolution remains in effect,	1697
approval of an agreement by the board is not required under this	1698
division. If a board of education has adopted a resolution	1699
allowing a legislative authority to deliver the notice required	1700
under this division fewer than forty-five business days prior to	1701
the legislative authority's approval of the agreement, the	1702
legislative authority shall deliver the notice to the board not	1703
later than the number of days prior to such approval as prescribed	1704
by the board in its resolution. If a board of education adopts a	1705
resolution waiving its right to approve agreements or shortening	1706
the notification period, the board shall certify a copy of the	1707
resolution to the legislative authority. If the board of education	1708
rescinds such a resolution, it shall certify notice of the	1709
rescission to the legislative authority.	1710

(2)(4) The legislative authority shall comply with section	1711
5709.83 of the Revised Code unless the board of education has	1712
adopted a resolution under that section waiving its right to	1713
receive such notice.	1714

(E) This division applies to zones certified by the director	1715
of development under this section prior to July 22, 1994.	1716

On or before October 15, 2009, the legislative authority that	1717
designated a zone to which this division applies may enter into an	1718
agreement with an enterprise if the legislative authority makes	1719
the finding required under that division and determines that the	1720
enterprise satisfies one of the criteria described in divisions	1721
(E)(1) to (5) of this section:	1722

(1) The enterprise currently has no operations in this state	1723
and, subject to approval of the agreement, intends to establish	1724
operations in the zone;	1725

(2) The enterprise currently has operations in this state	1726
and, subject to approval of the agreement, intends to establish	1727
operations at a new location in the zone that would not result in	1728
a reduction in the number of employee positions at any of the	1729
enterprise's other locations in this state;	1730

(3) The enterprise, subject to approval of the agreement,	1731
intends to relocate operations, currently located in another	1732
state, to the zone;	1733

(4) The enterprise, subject to approval of the agreement,	1734
intends to expand operations at an existing site in the zone that	1735
the enterprise currently operates;	1736

(5) The enterprise, subject to approval of the agreement,	1737
intends to relocate operations, currently located in this state,	1738
to the zone, and the director of development has issued a waiver	1739
for the enterprise under division (B) of section 5709.633 of the	1740
Revised Code.	1741

The agreement shall require the enterprise to agree to	1742
establish, expand, renovate, or occupy a facility in the zone and	1743
hire new employees, or preserve employment opportunities for	1744
existing employees, in return for one or more of the incentives	1745
described in division (C) of this section.	1746

(F) All agreements entered into under this section shall be	1747
in the form prescribed under section 5709.631 of the Revised Code.	1748
After an agreement is entered into under this division, if the	1749
legislative authority revokes its designation of a zone, or if the	1750
director of development revokes the zone's certification, any	1751
entitlements granted under the agreement shall continue for the	1752
number of years specified in the agreement.	1753

(G) Except as otherwise provided in this division, an	1754
agreement entered into under this section shall require that the	1755
enterprise pay an annual fee equal to the greater of one per cent	1756
of the dollar value of incentives offered under the agreement or	1757
five hundred dollars; provided, however, that if the value of the	1758
incentives exceeds two hundred fifty thousand dollars, the fee	1759
shall not exceed two thousand five hundred dollars. The fee shall	1760
be payable to the legislative authority once per year for each	1761
year the agreement is effective on the days and in the form	1762
specified in the agreement. Fees paid shall be deposited in a	1763
special fund created for such purpose by the legislative authority	1764
and shall be used by the legislative authority exclusively for the	1765
purpose of complying with section 5709.68 of the Revised Code and	1766
by the tax incentive review council created under section 5709.85	1767
of the Revised Code exclusively for the purposes of performing the	1768
duties prescribed under that section. The legislative authority	1769
may waive or reduce the amount of the fee charged against an	1770
enterprise, but such a waiver or reduction does not affect the	1771
obligations of the legislative authority or the tax incentive	1772
review council to comply with section 5709.68 or 5709.85 of the	1773
Revised Code.	1774

(H) When an agreement is entered into pursuant to this	1775
section, the legislative authority authorizing the agreement shall	1776
forward a copy of the agreement to the director of development and	1777
to the tax commissioner within fifteen days after the agreement is	1778
entered into. If any agreement includes terms not provided for in	1779
section 5709.631 of the Revised Code affecting the revenue of a	1780
city, local, or exempted village school district or causing	1781
revenue to be foregone by the district, including any compensation	1782
to be paid to the school district pursuant to section 5709.82 of	1783
the Revised Code, those terms also shall be forwarded in writing	1784
to the director of development along with the copy of the	1785
agreement forwarded under this division.	1786

(I) After an agreement is entered into, the enterprise shall	1787
file with each personal property tax return required to be filed,	1788
or annual report required to be filed under section 5727.08 of the	1789
Revised Code, while the agreement is in effect, an informational	1790
return, on a form prescribed by the tax commissioner for that	1791
purpose, setting forth separately the property, and related costs	1792
and values, exempted from taxation under the agreement.	1793

(J) Enterprises may agree to give preference to residents of	1794
the zone within which the agreement applies relative to residents	1795
of this state who do not reside in the zone when hiring new	1796
employees under the agreement.	1797

(K) An agreement entered into under this section may include	1798
a provision requiring the enterprise to create one or more	1799
temporary internship positions for students enrolled in a course	1800
of study at a school or other educational institution in the	1801
vicinity, and to create a scholarship or provide another form of	1802
educational financial assistance for students holding such a	1803
position in exchange for the student's commitment to work for the	1804
enterprise at the completion of the internship.	1805

Sec. 5709.63.  (A) With the consent of the legislative	1806
authority of each affected municipal corporation or of a board of	1807
township trustees, a board of county commissioners may, in the	1808
manner set forth in section 5709.62 of the Revised Code, designate	1809
one or more areas in one or more municipal corporations or in	1810
unincorporated areas of the county as proposed enterprise zones. A	1811
board of county commissioners may designate no more than one area	1812
within a township, or within adjacent townships, as a proposed	1813
enterprise zone. The board shall petition the director of	1814
development for certification of the area as having the	1815
characteristics set forth in division (A)(1) or (2) of section	1816
5709.61 of the Revised Code as amended by Substitute Senate Bill	1817
No. 19 of the 120th general assembly. Except as otherwise provided	1818
in division (D) of this section, on and after July 1, 1994, boards	1819
of county commissioners shall not enter into agreements under this	1820
section unless the board has petitioned the director and the	1821
director has certified the zone under this section as amended by	1822
that act; however, all agreements entered into under this section	1823
as it existed prior to July 1, 1994, and the incentives granted	1824
under those agreements shall remain in effect for the period	1825
agreed to under those agreements. The director shall make the	1826
determination in the manner provided under section 5709.62 of the	1827
Revised Code. Any enterprise wishing to enter into an agreement	1828
with the board under division (B) or (D) of this section shall	1829
submit a proposal to the board on the form and accompanied by the	1830
application fee prescribed under division (B) of section 5709.62	1831
of the Revised Code. The enterprise shall review and update the	1832
estimates and listings required by the form in the manner required	1833
under that division. The board may, on a separate form and at any	1834
time, require any additional information necessary to determine	1835
whether an enterprise is in compliance with an agreement and to	1836
collect the information required to be reported under section	1837
5709.68 of the Revised Code.	1838

(B) If the board of county commissioners finds that an	1839
enterprise submitting a proposal is qualified by financial	1840
responsibility and business experience to create and preserve	1841
employment opportunities in the zone and to improve the economic	1842
climate of the municipal corporation or municipal corporations or	1843
the unincorporated areas in which the zone is located and to which	1844
the proposal applies, the board, on or before October 15, 2009,	1845
and with the consent of the legislative authority of each affected	1846
municipal corporation or of the board of township trustees may do	1847
either of the following:	1848

(1) Enter into an agreement with the enterprise under which	1849
the enterprise agrees to establish, expand, renovate, or occupy a	1850
facility in the zone and hire new employees, or preserve	1851
employment opportunities for existing employees, in return for the	1852
following incentives:	1853

(a) When the facility is located in a municipal corporation,	1854
the board may enter into an agreement for one or more of the	1855
incentives provided in division (C) of section 5709.62 of the	1856
Revised Code, subject to division (D) of that section;	1857

(b) When the facility is located in an unincorporated area,	1858
the board may enter into an agreement for one or more of the	1859
following incentives:	1860

(i) Exemption for a specified number of years, not to exceed	1861
ten, of a specified portion, up to sixty per cent, of the assessed	1862
value of tangible personal property first used in business at a	1863
project site as a result of the agreement. An exemption granted	1864
pursuant to this division applies to inventory required to be	1865
listed pursuant to sections 5711.15 and 5711.16 of the Revised	1866
Code, except, in the instance of an expansion or other situations	1867
in which an enterprise was in business at the facility prior to	1868
the establishment of the zone, the inventory that is exempt is	1869
that amount or value of inventory in excess of the amount or value	1870
of inventory required to be listed in the personal property tax	1871
return of the enterprise in the return for the tax year in which	1872
the agreement is entered into.	1873

(ii) Exemption for a specified number of years, not to exceed	1874
ten, of a specified portion, up to sixty per cent, of the increase	1875
in the assessed valuation of real property constituting the	1876
project site subsequent to formal approval of the agreement by the	1877
board;	1878

(iii) Provision for a specified number of years, not to	1879
exceed ten, of any optional services or assistance the board is	1880
authorized to provide with regard to the project site;	1881

(iv) The incentive described in division (C)(2) of section	1882
5709.62 of the Revised Code.	1883

(2) Enter into an agreement with an enterprise that plans to	1884
purchase and operate a large manufacturing facility that has	1885
ceased operation or has announced its intention to cease	1886
operation, in return for exemption for a specified number of	1887
years, not to exceed ten, of a specified portion, up to one	1888
hundred per cent, of tangible personal property used in business	1889
at the project site as a result of the agreement, or of real	1890
property constituting the project site, or both.	1891

(C)(1)(a) Notwithstanding divisions (B)(1)(b)(i) and (ii) of	1892
this section, the portion of the assessed value of tangible	1893
personal property or of the increase in the assessed valuation of	1894
real property exempted from taxation under those divisions may	1895
exceed sixty per cent in any year for which that portion is	1896
exempted if the average percentage exempted for all years in which	1897
the agreement is in effect does not exceed fifty per cent, or if	1898
the board of education of the city, local, or exempted village	1899
school district within the territory of which the property is or	1900
will be located approves a percentage in excess of sixty per cent.	1901

(b) Notwithstanding any provision of the Revised Code to the	1902
contrary, the exemptions described in divisions (B)(1)(b)(i),	1903
(ii), (iii), and (iv) and (B)(2) of this section may be for up to	1904
fifteen years if the board of education of the city, local, or	1905
exempted village school district within the territory in which the	1906
property is or will be located approves a number of years in	1907
excess of ten, but only if the project that is part of the	1908
agreement includes a fixed asset investment of at least one	1909
hundred million dollars or the director of development determines	1910
there are extraordinary circumstances. For	1911

(c) For the purpose of obtaining such approvalthe approval	1912
of a city, local, or exempted village school district under	1913
division (C)(1)(a) or (b) of this section, the board of	1914
commissioners shall deliver to the board of education a notice not	1915
later than forty-five days prior to approving the agreement,	1916
excluding Saturdays, Sundays, and legal holidays as defined in	1917
section 1.14 of the Revised Code. The notice shall state the	1918
percentage to be exempted, an estimate of the true value of the	1919
property to be exempted, and the number of years the property is	1920
to be exempted. The board of education, by resolution adopted by a	1921
majority of the board, shall approve or disapprove the agreement	1922
and certify a copy of the resolution to the board of commissioners	1923
not later than fourteen days prior to the date stipulated by the	1924
board of commissioners as the date upon which approval of the	1925
agreement is to be formally considered by the board of	1926
commissioners. The board of education may include in the	1927
resolution conditions under which the board would approve the	1928
agreement, including the execution of an agreement to compensate	1929
the school district under division (B) of section 5709.82 of the	1930
Revised Code. The board of county commissioners may approve the	1931
agreement at any time after the board of education certifies its	1932
resolution approving the agreement to the board of county	1933
commissioners, or, if the board of education approves the	1934
agreement conditionally, at any time after the conditions are	1935
agreed to by the board of education and the board of county	1936
commissioners.	1937

If a board of education has adopted a resolution waiving its	1938
right to approve agreements and the resolution remains in effect,	1939
approval of an agreement by the board of education is not required	1940
under division (C) of this section. If a board of education has	1941
adopted a resolution allowing a board of county commissioners to	1942
deliver the notice required under this division fewer than	1943
forty-five business days prior to approval of the agreement by the	1944
board of county commissioners, the board of county commissioners	1945
shall deliver the notice to the board of education not later than	1946
the number of days prior to such approval as prescribed by the	1947
board of education in its resolution. If a board of education	1948
adopts a resolution waiving its right to approve agreements or	1949
shortening the notification period, the board of education shall	1950
certify a copy of the resolution to the board of county	1951
commissioners. If the board of education rescinds such a	1952
resolution, it shall certify notice of the rescission to the board	1953
of county commissioners.	1954

(2) The board of county commissioners shall comply with	1955
section 5709.83 of the Revised Code unless the board of education	1956
has adopted a resolution under that section waiving its right to	1957
receive such notice.	1958

(D) This division applies to zones certified by the director	1959
of development under this section prior to July 22, 1994.	1960

On or before October 15, 2009, and with the consent of the	1961
legislative authority of each affected municipal corporation or	1962
board of township trustees of each affected township, the board of	1963
commissioners that designated a zone to which this division	1964
applies may enter into an agreement with an enterprise if the	1965
board makes the finding required under that division and	1966
determines that the enterprise satisfies one of the criteria	1967
described in divisions (D)(1) to (5) of this section:	1968

(1) The enterprise currently has no operations in this state	1969
and, subject to approval of the agreement, intends to establish	1970
operations in the zone;	1971

(2) The enterprise currently has operations in this state	1972
and, subject to approval of the agreement, intends to establish	1973
operations at a new location in the zone that would not result in	1974
a reduction in the number of employee positions at any of the	1975
enterprise's other locations in this state;	1976

(3) The enterprise, subject to approval of the agreement,	1977
intends to relocate operations, currently located in another	1978
state, to the zone;	1979

(4) The enterprise, subject to approval of the agreement,	1980
intends to expand operations at an existing site in the zone that	1981
the enterprise currently operates;	1982

(5) The enterprise, subject to approval of the agreement,	1983
intends to relocate operations, currently located in this state,	1984
to the zone, and the director of development has issued a waiver	1985
for the enterprise under division (B) of section 5709.633 of the	1986
Revised Code.	1987

The agreement shall require the enterprise to agree to	1988
establish, expand, renovate, or occupy a facility in the zone and	1989
hire new employees, or preserve employment opportunities for	1990
existing employees, in return for one or more of the incentives	1991
described in division (B) of this section.	1992

(E) All agreements entered into under this section shall be	1993
in the form prescribed under section 5709.631 of the Revised Code.	1994
After an agreement under this section is entered into, if the	1995
board of county commissioners revokes its designation of the zone,	1996
or if the director of development revokes the zone's	1997
certification, any entitlements granted under the agreement shall	1998
continue for the number of years specified in the agreement.	1999

(F) Except as otherwise provided in this paragraph, an	2000
agreement entered into under this section shall require that the	2001
enterprise pay an annual fee equal to the greater of one per cent	2002
of the dollar value of incentives offered under the agreement or	2003
five hundred dollars; provided, however, that if the value of the	2004
incentives exceeds two hundred fifty thousand dollars, the fee	2005
shall not exceed two thousand five hundred dollars. The fee shall	2006
be payable to the board of commissioners once per year for each	2007
year the agreement is effective on the days and in the form	2008
specified in the agreement. Fees paid shall be deposited in a	2009
special fund created for such purpose by the board and shall be	2010
used by the board exclusively for the purpose of complying with	2011
section 5709.68 of the Revised Code and by the tax incentive	2012
review council created under section 5709.85 of the Revised Code	2013
exclusively for the purposes of performing the duties prescribed	2014
under that section. The board may waive or reduce the amount of	2015
the fee charged against an enterprise, but such waiver or	2016
reduction does not affect the obligations of the board or the tax	2017
incentive review council to comply with section 5709.68 or 5709.85	2018
of the Revised Code, respectively.	2019

(G) With the approval of the legislative authority of a	2020
municipal corporation or the board of township trustees of a	2021
township in which a zone is designated under division (A) of this	2022
section, the board of county commissioners may delegate to that	2023
legislative authority or board any powers and duties of the board	2024
to negotiate and administer agreements with regard to that zone	2025
under this section.	2026

(H) When an agreement is entered into pursuant to this	2027
section, the legislative authority authorizing the agreement shall	2028
forward a copy of the agreement to the director of development and	2029
to the tax commissioner within fifteen days after the agreement is	2030
entered into. If any agreement includes terms not provided for in	2031
section 5709.631 of the Revised Code affecting the revenue of a	2032
city, local, or exempted village school district or causing	2033
revenue to be foregone by the district, including any compensation	2034
to be paid to the school district pursuant to section 5709.82 of	2035
the Revised Code, those terms also shall be forwarded in writing	2036
to the director of development along with the copy of the	2037
agreement forwarded under this division.	2038

(I) After an agreement is entered into, the enterprise shall	2039
file with each personal property tax return required to be filed,	2040
or annual report that is required to be filed under section	2041
5727.08 of the Revised Code, while the agreement is in effect, an	2042
informational return, on a form prescribed by the tax commissioner	2043
for that purpose, setting forth separately the property, and	2044
related costs and values, exempted from taxation under the	2045
agreement.	2046

(J) Enterprises may agree to give preference to residents of	2047
the zone within which the agreement applies relative to residents	2048
of this state who do not reside in the zone when hiring new	2049
employees under the agreement.	2050

(K) An agreement entered into under this section may include	2051
a provision requiring the enterprise to create one or more	2052
temporary internship positions for students enrolled in a course	2053
of study at a school or other educational institution in the	2054
vicinity, and to create a scholarship or provide another form of	2055
educational financial assistance for students holding such a	2056
position in exchange for the student's commitment to work for the	2057
enterprise at the completion of the internship.	2058

Sec. 5709.67.  (A) Except as otherwise provided in sections	2059
5709.61 to 5709.69 of the Revised Code, the director of	2060
development shall administer those sections and shall adopt such	2061
rules as are necessary to ensure that no zone is certified or	2062
remains certified unless it meets any applicable requirements of	2063
division (A) of section 5709.61 of the Revised Code, and to	2064
determine the number of positions attributable to an enterprise	2065
for the purposes of division (A)(3) of section 5709.64 of the	2066
Revised Codeimplement and administer the enterprise zone program.	2067
The director shall assign to each zone currently certified a	2068
unique designation by which the zone shall be identified for	2069
purposes of administering sections 5709.61 to 5709.69 of the	2070
Revised Code. The tax commissioner shall administer all other tax	2071
incentives provided under sections 5709.61 to 5709.69 of the	2072
Revised Code and shall adopt such rules as are necessary to carry	2073
out that duty. No tax incentive qualification certificate or	2074
employee tax credit certificate shall be issued or remain in	2075
effect unless the enterprise applying for or holding the	2076
certificate complies with all such rules. The director of job and	2077
family services shall administer the incentive provided under	2078
division (B)(1) of section 5709.66 of the Revised Code and shall	2079
adopt such rules as are necessary to carry out that duty. No	2080
extension of benefits certificate shall be issued or remain in	2081
effect unless the enterprise applying for or holding the	2082
certificate complies with all such rules.	2083

(B) Not later than the first day of August each year, the	2084
director of development shall report to the general assembly on	2085
all of the following for the preceding calendar year:	2086

(1) The cost to the state of the tax and other incentives	2087
provided under sections 5709.61 to 5709.69 of the Revised Code;	2088

(2) The number of tax incentive qualification certificates,	2089
employee tax credit certificates, and extension of benefits	2090
certificates issued;	2091

(3) The names of the municipal corporations and counties that	2092
have entered agreements under sections 5709.62, 5709.63, and	2093
5709.632 of the Revised Code;	2094

(4) The number of new employees hired as a result of the tax	2095
and other incentives provided under sections 5709.61 to 5709.69 of	2096
the Revised Code;	2097

(5) Information on agreement terms concerning school district	2098
revenue that are not provided for in section 5709.631 of the	2099
Revised Code and that are forwarded to the director under division	2100
(H) of section 5709.62, division (H) of section 5709.63, or	2101
division (G) of section 5709.632 of the Revised Code.	2102

The report shall include a finding by the director as to	2103
whether the incentives provided under sections 5709.61 to 5709.69	2104
of the Revised Code have resulted in the creation of more	2105
positions in the state than would have been created without the	2106
incentives. The director shall send a copy of the report to each	2107
member of the general assembly and to the director of the	2108
legislative service commission.	2109

(C) All forms used in connection with the administration of	2110
sections 5709.61 to 5709.69 of the Revised Code, except forms	2111
administered directly by the tax commissioner, by the director of	2112
job and family services, or by a county or municipal corporation,	2113
are subject to review and approval by the state forms management	2114
control center under sections 125.91 to 125.98 of the Revised	2115
Code.	2116

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

2117

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

2118

(a) Persons employed in the construction of real property	2119
exempted from taxation under the chapters or sections of the	2120
Revised Code enumerated in division (B) of this section;	2121

(b) Persons not described by division (A)(1)(a) of this	2122
section who are first employed at the site of such property and	2123
who within the two previous years have not been subject, prior to	2124
being employed at that site, to income taxation by the municipal	2125
corporation within whose territory the site is located on income	2126
derived from employment for the person's current employer. "New	2127
employee" does not include any person who replaces a person who is	2128
not a new employee under division (A)(1) of this section.	2129

(2) "Infrastructure costs" means costs incurred by a	2130
municipal corporation in a calendar year to acquire, construct,	2131
reconstruct, improve, plan, or equip real or tangible personal	2132
property that directly benefits or will directly benefit the	2133
exempted property. If the municipal corporation finances the	2134
acquisition, construction, reconstruction, improvement, planning,	2135
or equipping of real or tangible personal property that directly	2136
benefits the exempted property by issuing debt, "infrastructure	2137
costs" means the annual debt charges incurred by the municipal	2138
corporation from the issuance of such debt. Real or tangible	2139
personal property directly benefits exempted property only if the	2140
exempted property places or will place direct, additional demand	2141
on the real or tangible personal property for which such costs	2142
were or will be incurred.	2143

(3) "Taxing unit" has the same meaning as in division (H) of	2144
section 5705.01 of the Revised Code.	2145

(B)(1) Except as otherwise provided under division (C) of	2146
this section, the legislative authority of any political	2147
subdivision that has acted under the authority of Chapter 725. or	2148
1728., sections 3735.65 to 3735.70, or section 5709.40, 5709.41,	2149
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, 5709.84, or 5709.88	2150
of the Revised Code to grant an exemption from taxation for real	2151
or tangible personal property may negotiate with the board of	2152
education of each city, local, exempted village, or joint	2153
vocational school district or other taxing unit within the	2154
territory of which the exempted property is located, and enter	2155
into an agreement whereby the school district or taxing unit is	2156
compensated for tax revenue thatforegone by the school district	2157
would have received had the property not been exempted from	2158
taxationor taxing unit as a result of the exemption. Except as	2159
otherwise provided in division (B)(1) of this section, if a	2160
political subdivision enters into more than one agreement under	2161
this section with respect to a tax exemption, the political	2162
subdivision shall provide to each school district or taxing unit	2163
with which it contracts the same percentage of tax revenue	2164
foregone by the school district or taxing unit, which may be based	2165
on a good faith projection made at the time the exemption is	2166
granted. Such percentage shall be calculated on the basis of	2167
amounts paid by the political subdivision and any amounts paid by	2168
an owner under division (B)(2) of this section. A political	2169
subdivision may provide a school district or other taxing unit	2170
with a smaller percentage of foregone tax revenue than that	2171
provided to other school districts or taxing units only if the	2172
school district or taxing unit expressly consents in the agreement	2173
to receiving a smaller percentage.	2174

(2) An owner of property exempted from taxation under the	2175
authority described in division (B)(1) of this section may, by	2176
becoming a party to an agreement described in division (B)(1) of	2177
this section or by entering into a separate agreement with a	2178
school district or other taxing unit, agree to compensate the	2179
school district or taxing unit by paying cash or by providing	2180
property or services by gift, loan, or otherwise.	2181

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

2182

(1) The legislative authority of a municipal corporation that	2183
has acted under the authority of division (H) of section 715.70 or	2184
section 715.81 of the Revised Code to consent to the granting of	2185
an exemption from taxation for real or tangible personal property	2186
in a joint economic development district.	2187

(2) The legislative authority of a municipal corporation that	2188
has specified in an ordinance adopted under section 5709.40 or	2189
5709.41 of the Revised Code that payments in lieu of taxes	2190
provided for under section 5709.42 of the Revised Code shall be	2191
paid to the city, local, or exempted village school district in	2192
which the improvements are located in the amount of taxes that	2193
would have been payable to the school district if the improvements	2194
had not been exempted from taxation, as directed in the ordinance.	2195

If the legislative authority of any municipal corporation has	2196
acted under the authority of Chapter 725. or 1728. or section	2197
3735.671, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, or	2198
5709.88, or a housing officer under section 3735.67 of the Revised	2199
Code, to grant or consent to the granting of an exemption from	2200
taxation for real or tangible personal property on or after July	2201
1, 1994, the municipal corporation imposes a tax on incomes, and	2202
the payroll of new employees resulting from the exercise of that	2203
authority equals or exceeds one million dollars in any tax year	2204
for which such property is exempted, the legislative authority and	2205
the board of education of each city, local, or exempted village	2206
school district within the territory of which the exempted	2207
property is located shall attempt to negotiate an agreement	2208
providing for compensation to the school district for all or a	2209
portion of the tax revenue the school district would have received	2210
had the property not been exempted from taxation. The agreement	2211
may include as a party the owner of the property exempted or to be	2212
exempted from taxation and may include provisions obligating the	2213
owner to compensate the school district by paying cash or	2214
providing property or services by gift, loan, or otherwise. Such	2215
an obligation is enforceable by the board of education of the	2216
school district pursuant to the terms of the agreement.	2217

If the legislative authority and board of education fail to	2218
negotiate an agreement that is mutually acceptable within six	2219
months of formal approval by the legislative authority of the	2220
instrument granting the exemption, the legislative authority shall	2221
compensate the school district in the amount and manner prescribed	2222
by division (D) of this section.	2223

(D) Annually, the legislative authority of a municipal	2224
corporation subject to this division shall pay to the city, local,	2225
or exempted village school district within the territory of which	2226
the exempted property is located an amount equal to fifty per cent	2227
of the difference between the amount of taxes levied and collected	2228
by the municipal corporation on the incomes of new employees in	2229
the calendar year ending on the day the payment is required to be	2230
made, and the amount of any infrastructure costs incurred in that	2231
calendar year. For purposes of such computation, the amount of	2232
infrastructure costs shall not exceed thirty-five per cent of the	2233
amount of those taxes unless the board of education of the school	2234
district, by resolution adopted by a majority of the board,	2235
approves an amount in excess of that percentage. If the amount of	2236
those taxes or infrastructure costs must be estimated at the time	2237
the payment is made, payments in subsequent years shall be	2238
adjusted to compensate for any departure of those estimates from	2239
the actual amount of those taxes.	2240

A municipal corporation required to make a payment under this	2241
section shall make the payment from its general fund or a special	2242
fund established for the purpose. The payment is payable on the	2243
thirty-first day of December of the tax year for or in which the	2244
exemption from taxation commences and on that day for each	2245
subsequent tax year property is exempted and the legislative	2246
authority and board fail to negotiate an acceptable agreement	2247
under division (C) of this section.	2248

Section 2. That existing sections 122.17, 135.35, 301.27,	2249
505.10, 2913.01, 5575.01, 5705.41, 5709.62, 5709.63, 5709.67, and	2250
5709.82 of the Revised Code are hereby repealed.	2251