As Passed by the Senate

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 458

Representative Uecker 

Cosponsors: Representatives Evans, McGregor, J., Huffman, Harwood, Wagner, Bacon, Batchelder, Chandler, Combs, Daniels, Domenick, Dyer, Flowers, Gerberry, Gibbs, Goyal, Hagan, J., Hughes, Letson, Newcomb, Sayre, Schindel, Schlichter, Setzer, Zehringer 

Senators Amstutz, Schaffer, Roberts, Sawyer, Buehrer, Fedor, Harris, Kearney, Patton, Schuler, Seitz, Wagoner 

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A BILL

To amend sections 505.60, 505.601, 5701.11, 5705.05,

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5705.06, and 5709.121 of the Revised Code to

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authorize townships to use money derived from

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the general current expense levy for road and

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bridge construction and repair, to make

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clarifying changes to the laws authorizing a

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township to provide health care insurance, to

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expressly incorporate changes in the Internal

8

Revenue Code since December 21, 2007, into Ohio

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tax law, to clarify qualifications for charitable

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institution exemptions from property taxation, and

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to declare an emergency.

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

Section 1. That sections 505.60, 505.601, 5701.11 5705.05,	13
5705.06, and 5709.121 of the Revised Code be amended to read as	14
follows:	15

Sec. 505.60.  (A) As provided in this section and section	16
505.601 of the Revised Code, the board of township trustees of any	17
township may procure and pay all or any part of the cost of	18
insurance policies that may provide benefits for hospitalization,	19
surgical care, major medical care, disability, dental care, eye	20
care, medical care, hearing aids, prescription drugs, or sickness	21
and accident insurance, or a combination of any of the foregoing	22
types of insurance for township officers and employees. The board	23
of township trustees of any township may negotiate and contract	24
for the purchase of a policy of long-term care insurance for	25
township officers and employees pursuant to section 124.841 of the	26
Revised Code.	27

(B) If the board procures any insurance policies under this	28
section, the board shall provide uniform coverage under these	29
policies for township officers and full-time township employees	30
and their immediate dependents, and may provide coverage under	31
these policies for part-time township employees and their	32
immediate dependents, from the funds or budgets from which the	33
officers or employees are compensated for services, such policies	34
to be issued by an insurance company duly authorized to do	35
business in this state. Any township officer or employee may	36
refuse to accept the insurance coverage without affecting the	37
availability of such insurance coverage to other township officers	38
and employees.	39

(B) The board may also provide coverage for any or all of the	40
benefits described in division (A) of this section by entering	41
into a contract for group health care services with health	42
insuring corporations holding certificates of authority under	43
Chapter 1751. of the Revised Code for township officers and	44
employees and their immediate dependents. If the board so	45
contracts, it shall provide uniform coverage under any such	46
contracts for township officers and full-time township employees	47
and their immediate dependents, from the funds or budgets from	48
which the officers or employees are compensated for services, and	49
may provide coverage under such contracts for part-time township	50
employees and their immediate dependents, from the funds or	51
budgets from which the officers or employees are compensated for	52
services, provided that each officer and employee so covered is	53
permitted to:	54

(1) Choose between a plan offered by an insurance company and	55
a plan offered by a health insuring corporation, and provided	56
further that the officer or employee pays any amount by which the	57
cost of the plan chosen exceeds the cost of the plan offered by	58
the board under this section;	59

(2) Change the choice made under this division (B) of this	60
section at a time each year as determined in advance by the board.	61

An addition of a class or change of definition of coverage to	62
the plan offered under this division by the board may be made at	63
any time that it is determined by the board to be in the best	64
interest of the township. If the total cost to the township of the	65
revised plan for any trustee's coverage does not exceed that cost	66
under the plan in effect during the prior policy year, the	67
revision of the plan does not cause an increase in that trustee's	68
compensation.	69

(C) Any township officer or employee may refuse to accept any	70
coverage authorized by this section without affecting the	71
availability of such coverage to other township officers and	72
employees.	73

(D) If any township officer or employee is denied coverage	74
under a health care plan procured under division (B) of this	75
section or if any township officer or employee elects not to	76
participate in the township's health care plan, the township may	77
reimburse the officer or employee for each out-of-pocket premium	78
thatattributable to the coverage provided for the officer or	79
employee incurs for insurance policiesbenefits described in	80
division (A) of this section that the officer or employee	81
otherwise obtains, but not to exceed an amount equal to the	82
average premium paid by the township for its officers and	83
employees under policiesany health care plan it procures under	84
division (B) of this section.	85

(D)(E) The board may provide the benefits authorized under	86
this section, without competitive bidding, by contributing to a	87
health and welfare trust fund administered through or in	88
conjunction with a collective bargaining representative of the	89
township employees.	90

The board may also provide the benefits described in this	91
section through an individual self-insurance program or a joint	92
self-insurance program as provided in section 9.833 of the Revised	93
Code.	94

(E)(F) If a board of township trustees fails to pay one or	95
more premiums for a policy, contract, or plan of insurance or	96
health care services authorized by division (A) or (B) ofunder	97
this section and the failure causes a lapse, cancellation, or	98
other termination of coverage under the policy, contract, or plan,	99
it may reimburse a township officer or employee for, or pay on	100
behalf of the officer or employee, any expenses incurred that	101
would have been covered under the policy, contract, or plan.	102

(F)(G) As used in this section and section 505.601 of the	103
Revised Code:	104

(1) "Part-time township employee" means a township employee	105
who is hired with the expectation that the employee will work not	106
more than one thousand five hundred hours in any year.	107

(2) "Premium" does not include any deductible or health care	108
costs paid directly by a township officer or employee.	109

Sec. 505.601.  If a board of township trustees does not	110
procure an insurance policy or group health care services as	111
provided in section 505.60 of the Revised Code, the board of	112
township trustees may reimburse any township officer or employee	113
for each out-of-pocket premium attributable to the coverage	114
provided for that the officer or employee incurs for insurance	115
policiesbenefits described in division (A) of section 505.60 of	116
the Revised Code that the officer or employee otherwise obtains,	117
if all of the following conditions are met:	118

(A) The board of township trustees adopts a resolution that	119
states that the township has chosen not to procure a health care	120
plan under section 505.60 of the Revised Code and has chosen	121
instead to reimburse its officers and employees for each	122
out-of-pocket premium that they incurattributable to the coverage	123
provided for them for insurance policiesbenefits described in	124
division (A) of section 505.60 of the Revised Code that they	125
otherwise obtain.	126

(B) That resolution provides for a uniform maximum monthly or	127
yearly payment amount for each officer or employee to cover	128
themselves and their immediate dependents, beyond which the	129
township will not reimburse the officer or employee.	130

(C) That resolution states the specific benefits listed in	131
division (A) of section 505.60 of the Revised Code for which the	132
township will reimburse all officers and employees of the	133
township. The township may not reimburse officers and employees	134
for benefits other than those listed in division (A) of section	135
505.60 of the Revised Code.	136

Sec. 5701.11.  The effective date to which this section	137
refers is the effective date of this section as amended by H.B.	138
157Sub. H.B. 458 of the 127th general assembly.	139

(A)(1) Except as provided under division (A)(2) or (B) of	140
this section, any reference in Title LVII of the Revised Code to	141
the Internal Revenue Code, to the Internal Revenue Code "as	142
amended," to other laws of the United States, or to other laws of	143
the United States, "as amended," means the Internal Revenue Code	144
or other laws of the United States as they exist on the effective	145
date.	146

(2) This section does not apply to any reference in Title	147
LVII of the Revised Code to the Internal Revenue Code as of a date	148
certain specifying the day, month, and year, or to other laws of	149
the United States as of a date certain specifying the day, month,	150
and year.	151

(B)(1) For purposes of applying section 5733.04, 5745.01, or	152
5747.01 of the Revised Code to a taxpayer's taxable year ending	153
after December 28, 2006December 21, 2007, and before the	154
effective date, a taxpayer may irrevocably elect to incorporate	155
the provisions of the Internal Revenue Code or other laws of the	156
United States that are in effect for federal income tax purposes	157
for that taxable year if those provisions differ from the	158
provisions that, under division (A) of this section, would	159
otherwise apply. The filing by the taxpayer for that taxable year	160
of a report or return that incorporates the provisions of the	161
Internal Revenue Code or other laws of the United States	162
applicable for federal income tax purposes for that taxable	163
year, and that does not include any adjustments to reverse the	164
effects of any differences between those provisions and the	165
provisions that would otherwise apply, constitutes the making of	166
an irrevocable election under this division for that taxable	167
year.	168

(2) Elections under prior versions of division (B)(1) of this	169
section remain in effect for the taxable years to which they	170
apply.	171

Sec. 5705.05.  The purpose and intent of the general levy for	172
current expenses is to provide one general operating fund derived	173
from taxation from which any expenditures for current expenses of	174
any kind may be made, and the. The taxing authority of a political	175
subdivision may include in such levy the amounts required for	176
carrying into effect any of the general or special powers granted	177
by law to such subdivision, including the acquisition or	178
construction of permanent improvements and the payment of	179
judgments, but excluding the payment of debt charges and, in the	180
case of counties, the construction, reconstruction, resurfacing,	181
or repair of roads and bridges in counties and townships and the	182
payment of debt charges. The power to include in the general levy	183
for current expenses additional amounts for purposes for which a	184
special tax is authorized shall not affect the right or	185
obligation to levy such special tax. Without prejudice to the	186
generality of the authority to levy a general tax for any current	187
expense, such general levy shall include:	188

(A) The amounts certified to be necessary for the payment of	189
final judgments;	190

(B) The amounts necessary for general, special, and primary	191
elections;	192

(C) The amounts necessary for boards and commissioners of	193
health, and other special or district appropriating authorities	194
deriving their revenue in whole or part from the subdivision;	195

(D) In the case of municipal corporations, the amounts	196
necessary for the maintenance, operation, and repair of public	197
buildings, wharves, bridges, parks, and streets, for the	198
prevention, control, and abatement of air pollution, and for a	199
sanitary fund;	200

(E) In the case of counties, the amounts necessary for the	201
maintenance, operation, and repair of public buildings, for	202
providing or maintaining senior citizens services or facilities,	203
for the relief and support of the poor, for the relief of needy	204
blind, for the support of mental health, mental retardation, or	205
developmental disability services, for the relief of honorably	206
discharged soldiers, indigent soldiers, sailors, and marines, for	207
mothers' pension fund, support of soil and water conservation	208
districts, watershed conservancy districts, and educational	209
television, for the prevention, control, and abatement of air	210
pollution, and for the county's share of the compensation paid	211
judges;	212

(F) In the case of a school district, the amounts necessary	213
for tuition, the state teachers retirement system, and the	214
maintenance, operation, and repair of schools;	215

(G) In the case of a township, the amounts necessary for the	216
relief of the poor and for the prevention, control, and abatement	217
of air pollution. This	218

This section does not require the inclusion within the	219
general levy of amounts for any purpose for which a special levy	220
is authorized by section 5705.06 of the Revised Code.	221

Sec. 5705.06.  The following special levies are hereby	222
authorized without vote of the people:	223

(A) A levy for any specific permanent improvement which the	224
subdivision is authorized by law to acquire, construct, or	225
improve, or any class of such improvements which could be included	226
in a single bond issue;	227

(B) A levy for the library purposes of the subdivision, in	228
accordance with the provisions of the Revised Code authorizing	229
levies for such purposes, but only to the extent so authorized;	230

(C) In the case of a municipal corporation, a levy for a	231
municipal university under section 3349.13 of the Revised Code,	232
but only to the extent authorized;	233

(D) In the case of a county, a levy for the construction,	234
reconstruction, resurfacing, and repair of roads and bridges,	235
other than state roads and bridges;	236

(E) In the case of a county, a levy for paying the county's	237
proportion of the cost of the construction, improvement, and	238
maintenance of state highways;	239

(F) In the case of a township, a levy for the construction,	240
reconstruction, resurfacing, and repair of roads and bridges,	241
excluding state roads and bridges, including the township's	242
portion of the cost of the construction, improvement, maintenance,	243
and repair of county roads and bridges;	244

(G) The levies prescribed by division (B) of sections 742.33	245
and 742.34 of the Revised Code.	246

Each such special levy shall be within the ten-mill	247
limitation and shall be subject to the control of the county	248
budget commission, as provided by sections 5705.01 to 5705.47 of	249
the Revised Code.	250

Except for the special levies authorized in divisions (A),	251
(B), (C), (D), (E), and (G) of this section, any authority granted	252
by the Revised Code to levy a special tax within the ten-mill	253
limitation for a current expense shall be construed as authority	254
to provide for such expense by the general levy for current	255
expenses.	256

Sec. 5709.121. (A) Real property and tangible personal	257
property belonging to a charitable or educational institution or	258
to the state or a political subdivision, shall be considered as	259
used exclusively for charitable or public purposes by such	260
institution, the state, or political subdivision, if it meets one	261
of the following requirements:	262

(1) It is used by such institution, the state, or political	263
subdivision, or by one or more other such institutions, the state,	264
or political subdivisions under a lease, sublease, or other	265
contractual arrangement:	266

(a) As a community or area center in which presentations in	267
music, dramatics, the arts, and related fields are made in order	268
to foster public interest and education therein;	269

(b) For other charitable, educational, or public purposes.

270

(2) It is made available under the direction or control of	271
such institution, the state, or political subdivision for use in	272
furtherance of or incidental to its charitable, educational, or	273
public purposes and not with the view to profit.	274

(3) It is used by an organization described in division (D)	275
of section 5709.12 of the Revised Code. If the organization is a	276
corporation that receives a grant under the Thomas Alva Edison	277
grant program authorized by division (C) of section 122.33 of the	278
Revised Code at any time during the tax year, "used," for the	279
purposes of this division, includes holding property for lease or	280
resale to others.	281

(B)(1) Property described in division (A)(1)(a) of this	282
section shall continue to be considered as used exclusively for	283
charitable or public purposes even if the property is conveyed	284
through one conveyance or a series of conveyances to an entity	285
that is not a charitable or educational institution and is not the	286
state or a political subdivision, provided that all of the	287
following conditions apply with respect to that property:	288

(a) The property has been listed as exempt on the county	289
auditor's tax list and duplicate for the county in which it is	290
located for the ten tax years immediately preceding the year in	291
which the property is conveyed through one conveyance or a series	292
of conveyances;	293

(b) The owner to which the property is conveyed through one	294
conveyance or a series of conveyances leases the property through	295
one lease or a series of leases to the entity that owned or	296
occupied the property for the ten tax years immediately preceding	297
the year in which the property is conveyed or an affiliate of such	298
prior owner or occupant;	299

(c) The property includes improvements that are at least	300
fifty years old;	301

(d) The property is being renovated in connection with a	302
claim for historic preservation tax credits available under	303
federal law;	304

(e) The property continues to be used for the purposes	305
described in division (A)(1)(a) of this section after its	306
conveyance; and	307

(f) The property is certified by the United States secretary	308
of the interior as a "certified historic structure" or certified	309
as part of a certified historic structure.	310

(2) Notwithstanding section 5715.27 of the Revised Code, an	311
application for exemption from taxation of property described in	312
division (B)(1) of this section may be filed by either the owner	313
of the property or its occupant.	314

(C) For purposes of this section, an institution isthat	315
meets all of the following requirements is conclusively presumed	316
to be a charitable institution if the:	317

(1) The institution is a nonprofit corporation or	318
association, no part of the net earnings of which inures to the	319
benefit of any private shareholder or individual,;	320

(2) The institution is exempt from federal income taxation	321
under section 501(a) of the Internal Revenue Code, the;	322

(3) The majority of the institution's board of directors are	323
appointed by the mayor or legislative authority of a municipal	324
corporation or a board of county commissioners, or a combination	325
thereof, and the;	326

(4) The primary purpose of the institution is to assist in	327
the development and revitalization of downtown urban areas.	328

Section 2.  That existing sections 505.60, 505.601, 5701.11,	329
5705.05, 5705.06, and 5709.121 of the Revised Code are hereby	330
repealed.	331

Section 3. No board of township trustees, township officer,	332
or township employee shall be required to repay funds identified	333
in a finding for recovery made by the Auditor of State as the	334
result of the board of trustees having elected to provide	335
township officer or township employee health care coverage, or	336
reimbursement to a township officer or employee for such coverage,	337
in violation of sections 505.60 and 505.601 of the Revised Code	338
as they existed prior to amendment by H.B. 458 of the 127th	339
General Assembly. The county prosecuting attorney and Attorney	340
General are under no obligation to act, and shall not act, upon	341
the Auditor of State's finding for recovery. Any such finding	342
for recovery shall be considered resolved for the purposes of	343
section 9.24 of the Revised Code. Any sum that has already been	344
repaid by a person against whom such a finding for recovery was	345
issued, or repaid by a person in anticipation of the issuance of	346
such a finding, shall be paid to that person from the treasury of	347
the public office to which the sum was credited.	348

Section 4. This act is hereby declared to be an emergency	349
measure necessary for the immediate preservation of the public	350
peace, health, and safety. The reason for such necessity is to	351
immediately clarify the terms governing the provision of health	352
care to township officers and employees and preclude unnecessary	353
recoveries. Therefore, this act shall go into immediate effect.	354