As Reported by the Senate Ways and Means and Economic Development Committee

127th General Assembly
Regular Session
2007-2008
Sub. H. B. No. 48


Representative Gibbs 

Cosponsors: Representatives Fessler, Seitz, McGregor, J., Setzer, Brown, Collier, Wagner, Wagoner, Combs, Aslanides, Bacon, Bolon, Chandler, Driehaus, Evans, Flowers, Hagan, R., Hite, Schlichter, Batchelder, Blessing, Domenick, Gardner, Hagan, J., Hughes, Luckie, Mecklenborg, Patton, Raussen, Schindel, Schneider, Stewart, D., Wachtmann, Williams, B., Zehringer 

Senators Amstutz, Stivers, Miller, D., Kearney, Sawyer, Spada, Schaffer, Schuler 

A BILL
To amend sections 307.12, 505.10, 4707.02, 4707.20, 1
4707.21, and 4707.26 of the Revised Code to 2
exempt certain tax exempt organizations and 3
schools that sell donated items at auction from 4
license and contract requirements for the 5
auction, to require those organizations and 6
schools to maintain auction records for two 7
years, to preclude claims against the Auction 8
Recovery Fund for any loss associated with those 9
types of auctions, and to reduce from fifteen to 10
ten days the minimum bidding period for internet 11
auctions of certain township or county personal 12
property.13


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

       Section 1. That sections 307.12, 505.10, 4707.02, 4707.20, 14
4707.21, and 4707.26 of the Revised Code be amended to read as 15
follows:16

       Sec. 307.12.  (A) Except as otherwise provided in divisions 17
(D), (E), and (G) of this section, when the board of county18
commissioners finds, by resolution, that the county has personal19
property, including motor vehicles acquired for the use of county20
officers and departments, and road machinery, equipment, tools, or21
supplies, whichthat is not needed for public use, is obsolete, or 22
is unfit for the use for which it was acquired, and when the fair23
market value of the property to be sold or donated under this24
division is, in the opinion of the board, in excess of two25
thousand five hundred dollars, the board may do either of the26
following:27

       (1) Sell the property at public auction or by sealed bid to28
the highest bidder. Notice of the time, place, and manner of the29
sale shall be published in a newspaper of general circulation in30
the county at least ten days prior to the sale, and a typewritten31
or printed notice of the time, place, and manner of the sale shall32
be posted at least ten days before the sale in the offices of the33
county auditor and the board of county commissioners.34

       If a board conducts a sale of property by sealed bid, the35
form of the bid shall be as prescribed by the board, and each bid36
shall contain the name of the person submitting it. Bids received37
shall be opened and tabulated at the time stated in the notice.38
The property shall be sold to the highest bidder, except that the39
board may reject all bids and hold another sale, by public auction40
or sealed bid, in the manner prescribed by this section.41

       (2) Donate any motor vehicle that does not exceed four42
thousand five hundred dollars in value to a nonprofit organization43
exempt from federal income taxation pursuant to 26 U.S.C. 501(a)44
and (c)(3) for the purpose of meeting the transportation needs of45
participants in the Ohio works first program established under46
Chapter 5107. of the Revised Code and participants in the47
prevention, retention, and contingency program established under48
Chapter 5108. of the Revised Code.49

       (B) When the board of county commissioners finds, by50
resolution, that the county has personal property, including motor51
vehicles acquired for the use of county officers and departments,52
and road machinery, equipment, tools, or supplies, whichthat is 53
not needed for public use, is obsolete, or is unfit for the use 54
for which it was acquired, and when the fair market value of the55
property to be sold or donated under this division is, in the56
opinion of the board, two thousand five hundred dollars or less,57
the board may do either of the following:58

       (1) Sell the property by private sale, without advertisement59
or public notification;60

       (2) Donate the property to an eligible nonprofit organization 61
that is located in this state and is exempt from federal income 62
taxation pursuant to 26 U.S.C. 501(a) and (c)(3). Before donating 63
any property under this division, the board shall adopt a 64
resolution expressing its intent to make unneeded, obsolete, or 65
unfit-for-use county personal property available to these 66
organizations. The resolution shall include guidelines and 67
procedures the board considers necessary to implement a donation 68
program under this division and shall indicate whether the county 69
will conduct the donation program or the board will contract with 70
a representative to conduct it. If a representative is known when71
the resolution is adopted, the resolution shall provide contact72
information such as the representative's name, address, and73
telephone number.74

       The resolution shall include within its procedures a75
requirement that any nonprofit organization desiring to obtain76
donated property under this division shall submit a written notice77
to the board or its representative. The written notice shall78
include evidence that the organization is a nonprofit organization 79
that is located in this state and is exempt from federal income 80
taxation pursuant to 26 U.S.C. 501(a) and (c)(3); a description of 81
the organization's primary purpose; a description of the type or 82
types of property the organization needs; and the name, address, 83
and telephone number of a person designated by the organization's 84
governing board to receive donated property and to serve as its 85
agent.86

       After adoption of the resolution, the board shall publish, in87
a newspaper of general circulation in the county, notice of its88
intent to donate unneeded, obsolete, or unfit-for-use county89
personal property to eligible nonprofit organizations. The notice90
shall include a summary of the information provided in the91
resolution and shall be published at least twice. The second and92
any subsequent notice shall be published not less than ten nor93
more than twenty days after the previous notice. A similar notice94
also shall be posted continually in a conspicuous place in the95
offices of the county auditor and the board of county96
commissioners, and, if the county maintains a web site on the97
internet, the notice shall be posted continually at that web site.98

       The board or its representative shall maintain a list of all99
nonprofit organizations that notify the board or its100
representative of their desire to obtain donated property under101
this division and that the board or its representative determines102
to be eligible, in accordance with the requirements set forth in 103
this section and in the donation program's guidelines and 104
procedures, to receive donated property.105

       The board or its representatives also shall maintain a list106
of all county personal property the board finds to be unneeded,107
obsolete, or unfit for use and to be available for donation under108
this division. The list shall be posted continually in a109
conspicuous location in the offices of the county auditor and the110
board of county commissioners, and, if the county maintains a web111
site on the internet, the list shall be posted continually at that112
web site. An item of property on the list shall be donated to the113
eligible nonprofit organization that first declares to the board114
or its representative its desire to obtain the item unless the115
board previously has established, by resolution, a list of116
eligible nonprofit organizations that shall be given priority with117
respect to the item's donation. Priority may be given on the basis 118
that the purposes of a nonprofit organization have a direct119
relationship to specific public purposes of programs provided or120
administered by the board. A resolution giving priority to certain 121
nonprofit organizations with respect to the donation of an item of 122
property shall specify the reasons why the organizations are given 123
that priority.124

       (C) Members of the board of county commissioners shall 125
consult with the Ohio ethics commission, and comply with the 126
provisions of Chapters 102. and 2921. of the Revised Code, with 127
respect to any sale or donation under division (A) or (B) of this 128
section to a nonprofit organization of which a county 129
commissioner, any member of the county commissioner's family, or 130
any business associate of the county commissioner is a trustee, 131
officer, board member, or employee.132

       (D) Notwithstanding anything to the contrary in division (A), 133
(B), or (E) of this section and regardless of the property's 134
value, the board of county commissioners may sell or donate county135
personal property, including motor vehicles, to the federal136
government, the state, or any political subdivision of the state137
without advertisement or public notification.138

       (E) Notwithstanding anything to the contrary in division (A),139
(B), or (G) of this section and regardless of the property's140
value, the board of county commissioners may sell personal141
property, including motor vehicles acquired for the use of county142
officers and departments, and road machinery, equipment, tools, or143
supplies, whichthat is not needed for public use, is obsolete, or 144
is unfit for the use for which it was acquired, by internet 145
auction. The board shall adopt, during each calendar year, a 146
resolution expressing its intent to sell that property by internet 147
auction. The resolution shall include a description of how the 148
auctions will be conducted and shall specify the number of days 149
for bidding on the property, which shall be no less than fifteen150
ten days, including Saturdays, Sundays, and legal holidays. The 151
resolution shall indicate whether the county will conduct the152
auction or the board will contract with a representative to153
conduct the auction and shall establish the general terms and154
conditions of sale. If a representative is known when the155
resolution is adopted, the resolution shall provide contact156
information such as the representative's name, address, and157
telephone number.158

       After adoption of the resolution, the board shall publish, in159
a newspaper of general circulation in the county, notice of its160
intent to sell unneeded, obsolete, or unfit-for-use county161
personal property by internet auction. The notice shall include a162
summary of the information provided in the resolution and shall be163
published at least twice. The second and any subsequent notice164
shall be published not less than ten nor more than twenty days165
after the previous notice. A similar notice also shall be posted166
continually throughout the calendar year in a conspicuous place in167
the offices of the county auditor and the board of county168
commissioners, and, if the county maintains a web site on the169
internet, the notice shall be posted continually throughout the170
calendar year at that web site.171

       When property is to be sold by internet auction, the board or172
its representative may establish a minimum price that will be173
accepted for specific items and may establish any other terms and174
conditions for the particular sale, including requirements for175
pick-up or delivery, method of payment, and sales tax. This type176
of information shall be provided on the internet at the time of177
the auction and may be provided before that time upon request178
after the terms and conditions have been determined by the board179
or its representative.180

       (F) When a county officer or department head determines that181
county-owned personal property under the jurisdiction of the182
officer or department head, including motor vehicles, road183
machinery, equipment, tools, or supplies, is not of immediate184
need, the county officer or department head may notify the board185
of county commissioners, and the board may lease that personal186
property to any municipal corporation, township, or other187
political subdivision of the state. The lease shall require the188
county to be reimbursed under terms, conditions, and fees189
established by the board, or under contracts executed by the190
board.191

       (G) If the board of county commissioners finds, by192
resolution, that the county has vehicles, equipment, or machinery193
whichthat is not needed, or is unfit for public use, and the194
board desires to sell the vehicles, equipment, or machinery to the195
person or firm from which it proposes to purchase other vehicles,196
equipment, or machinery, the board may offer to sell the vehicles,197
equipment, or machinery to that person or firm, and to have the198
selling price credited to the person or firm against the purchase199
price of other vehicles, equipment, or machinery.200

       (H) If the board of county commissioners advertises for bids201
for the sale of new vehicles, equipment, or machinery to the202
county, it may include in the same advertisement a notice of the203
willingness of the board to accept bids for the purchase of204
county-owned vehicles, equipment, or machinery whichthat is 205
obsolete or not needed for public use, and to have the amount of 206
those bids subtracted from the selling price of the other 207
vehicles, equipment, or machinery as a means of determining the 208
lowest responsible bidder.209

       (I) If a board of county commissioners determines that county 210
personal property is not needed for public use, or is obsolete or 211
unfit for the use for which it was acquired, and that the property 212
has no value, the board may discard or salvage that property.213

       (J) A county engineer, in the engineer's discretion, may 214
dispose of scrap construction materials on such terms as the 215
engineer determines reasonable, including disposal without 216
recovery of costs, if the total value of the materials does not 217
exceed twenty-five thousand dollars. The engineer shall maintain 218
records of all dispositions made under this division, including 219
identification of the origin of the materials, the final 220
disposition, and copies of all receipts resulting from the 221
dispositions.222

        As used in division (I) of this section, "scrap construction 223
materials" means construction materials that result from a road or 224
bridge improvement, remain after the improvement is completed, and 225
are not reusable. Construction material that is metal and that 226
results from a road or bridge improvement and remains after the 227
improvement is completed is scrap construction material only if it 228
cannot be used in any other road or bridge improvement or other 229
project in its current state.230

       Sec. 505.10. (A) The board of township trustees may accept, 231
on behalf of the township, the donation by bequest, devise, deed 232
of gift, or otherwise, of any real or personal property for any233
township use. When the township has property, including motor234
vehicles, road machinery, equipment, and tools, whichthat the235
board, by resolution, finds is not needed for public use, is236
obsolete, or is unfit for the use for which it was acquired, the 237
board may sell and convey that property or otherwise dispose of it 238
in accordance with this section. Except as otherwise provided in239
sections 505.08, 505.101, and 505.102 of the Revised Code, the 240
sale or other disposition of unneeded, obsolete, or unfit-for-use241
property shall be made in accordance with one of the following:242

       (1) If the fair market value of property to be sold is, in 243
the opinion of the board, in excess of two thousand five hundred244
dollars, the sale shall be by public auction or by sealed bid to 245
the highest bidder. The board shall publish notice of the time,246
place, and manner of the sale once a week for three weeks in a247
newspaper published, or of general circulation, in the township,248
the last of those publications to be at least five days before the 249
date of sale, and shall post a typewritten or printed notice of 250
the time, place, and manner of the sale in the office of the board 251
for at least ten days prior to the sale.252

       If the board conducts the sale of the property by sealed bid, 253
the form of the bid shall be as prescribed by the board, and each 254
bid shall contain the name of the person submitting it. Bids 255
received shall be opened and tabulated at the time stated in the 256
published and posted notices. The property shall be sold to the 257
highest bidder, except that the board may reject all bids and hold 258
another sale, by public auction or sealed bid, in the manner 259
prescribed by this section.260

       (2) If the fair market value of property to be sold is, in261
the opinion of the board, two thousand five hundred dollars or262
less, the board may do either of the following:263

       (a) Sell the property by private sale, without advertisement 264
or public notification;265

       (b) Donate the property to an eligible nonprofit organization 266
that is located in this state and is exempt from federal income 267
taxation pursuant to 26 U.S.C. 501(a) and (c)(3). Before donating 268
any property under this division, the board shall adopt a 269
resolution expressing its intent to make unneeded, obsolete, or 270
unfit-for-use township property available to these organizations. 271
The resolution shall include guidelines and procedures the board 272
considers to be necessary to implement the donation program and 273
shall indicate whether the township will conduct the donation 274
program or the board will contract with a representative to 275
conduct it. If a representative is known when the resolution is 276
adopted, the resolution shall provide contact information such as 277
the representative's name, address, and telephone number.278

       The resolution shall include within its procedures a279
requirement that any nonprofit organization desiring to obtain280
donated property under this division shall submit a written notice281
to the board or its representative. The written notice shall282
include evidence that the organization is a nonprofit organization 283
that is located in this state and is exempt from federal income 284
taxation pursuant to 26 U.S.C. 501(a) and (c)(3); a description of 285
the organization's primary purpose; a description of the type or 286
types of property the organization needs; and the name, address, 287
and telephone number of a person designated by the organization's 288
governing board to receive donated property and to serve as its 289
agent.290

       After adoption of the resolution, the board shall publish, in291
a newspaper of general circulation in the township, notice of its292
intent to donate unneeded, obsolete, or unfit-for-use township293
property to eligible nonprofit organizations. The notice shall294
include a summary of the information provided in the resolution295
and shall be published at least twice. The second and any296
subsequent notice shall be published not less than ten nor more297
than twenty days after the previous notice. A similar notice also298
shall be posted continually in the board's office, and, if the299
township maintains a web site on the internet, the notice shall be300
posted continually at that web site.301

       The board or its representatives shall maintain a list of all302
nonprofit organizations that notify the board or its303
representative of their desire to obtain donated property under304
this division and that the board or its representative determines305
to be eligible, in accordance with the requirements set forth in 306
this section and in the donation program's guidelines and 307
procedures, to receive donated property.308

       The board or its representative also shall maintain a list of309
all township property the board finds to be unneeded, obsolete, or310
unfit for use and to be available for donation under this311
division. The list shall be posted continually in a conspicuous312
location in the board's office, and, if the township maintains a313
web site on the internet, the list shall be posted continually at314
that web site. An item of property on the list shall be donated to 315
the eligible nonprofit organization that first declares to the316
board or its representative its desire to obtain the item unless317
the board previously has established, by resolution, a list of318
eligible nonprofit organizations that shall be given priority with319
respect to the item's donation. Priority may be given on the basis 320
that the purposes of a nonprofit organization have a direct321
relationship to specific public purposes of programs provided or322
administered by the board. A resolution giving priority to certain 323
nonprofit organizations with respect to the donation of an item of 324
property shall specify the reasons why the organizations are given 325
that priority.326

       (3) If the board finds, by resolution, that the township has327
motor vehicles, road machinery, equipment, or tools whichthat are 328
not needed or are unfit for public use, and the board wishes to 329
sell the motor vehicles, road machinery, equipment, or tools to 330
the person or firm from which it proposes to purchase other motor331
vehicles, road machinery, equipment, or tools, the board may offer332
to sell the motor vehicles, road machinery, equipment, or tools to 333
that person or firm, and to have the selling price credited to the 334
person or firm against the purchase price of other motor vehicles, 335
road machinery, equipment, or tools.336

       (4) If the board advertises for bids for the sale of new337
motor vehicles, road machinery, equipment, or tools to the338
township, it may include in the same advertisement a notice of the339
willingness of the board to accept bids for the purchase of340
township-owned motor vehicles, road machinery, equipment, or tools341
whichthat are obsolete or not needed for public use, and to have 342
the amount of those bids subtracted from the selling price of the 343
new motor vehicles, road machinery, equipment, or tools, as a344
means of determining the lowest responsible bidder.345

       (5) When a township has title to real property, the board of346
township trustees, by resolution, may authorize the transfer and347
conveyance of that property to any other political subdivision of348
the state upon such terms as are agreed to between the board and349
the legislative authority of that political subdivision.350

       (6) When a township has title to real property and the board351
of township trustees wishes to sell or otherwise transfer the352
property, the board, upon a unanimous vote of its members and by353
resolution, may authorize the transfer and conveyance of that real354
property to any person upon whatever terms are agreed to between355
the board and that person.356

       (7) If the board of township trustees determines that357
township personal property is not needed for public use, or is358
obsolete or unfit for the use for which it was acquired, and that359
the property has no value, the board may discard or salvage that360
property.361

       (B) When the board has offered property at public auction362
under this section and has not received an acceptable offer, the363
board, by resolution, may enter into a contract, without364
advertising or bidding, for the sale of that property. The365
resolution shall specify a minimum acceptable price and the366
minimum acceptable terms for the contract. The minimum acceptable367
price shall not be lower than the minimum price established for368
the public auction.369

       (C) Members of the board shall consult with the Ohio ethics 370
commission and comply with the provisions of Chapters 102. and 371
2921. of the Revised Code, with respect to any sale or donation 372
under division (A)(2) of this section to a nonprofit organization 373
of which a township trustee, any member of the township trustee's 374
family, or any business associate of the township trustee is a 375
trustee, officer, board member, or employee.376

       (D) Notwithstanding anything to the contrary in division (A)377
or (B) of this section and regardless of the property's value, the378
board may sell personal property, including motor vehicles, road 379
machinery, equipment, tools, or supplies, whichthat is not needed 380
for public use, is obsolete, or is unfit for the use for which it 381
was acquired, by internet auction. The board shall adopt, during 382
each calendar year, a resolution expressing its intent to sell 383
that property by internet auction. The resolution shall include a 384
description of how the auctions will be conducted and shall 385
specify the number of days for bidding on the property, which 386
shall be no less than fifteenten days, including Saturdays, 387
Sundays, and legal holidays. The resolution shall indicate whether 388
the township will conduct the auction or the board will contract 389
with a representative to conduct the auction and shall establish 390
the general terms and conditions of sale. If a representative is 391
known when the resolution is adopted, the resolution shall provide 392
contact information such as the representative's name, address, 393
and telephone number.394

       After adoption of the resolution, the board shall publish, in395
a newspaper of general circulation in the township, notice of its396
intent to sell unneeded, obsolete, or unfit-for-use township 397
personal property by internet auction. The notice shall include a398
summary of the information provided in the resolution and shall be399
published at least twice. The second and any subsequent notice400
shall be published not less than ten nor more than twenty days401
after the previous notice. A similar notice also shall be posted 402
continually throughout the calendar year in a conspicuous place in 403
the board's office, and, if the township maintains a web site on 404
the internet, the notice shall be posted continually throughout 405
the calendar year at that web site.406

       When property is to be sold by internet auction, the board or407
its representative may establish a minimum price that will be408
accepted for specific items and may establish any other terms and409
conditions for the particular sale, including requirements for410
pick-up or delivery, method of payment, and sales tax. This type411
of information shall be provided on the internet at the time of412
the auction and may be provided before that time upon request,413
after the terms and conditions have been determined by the board414
or its representative.415

       Sec. 4707.02. (A) No person shall act as an auction firm, 416
auctioneer, apprentice auctioneer, or special auctioneer within 417
this state without a license issued by the department of 418
agriculture. No auction shall be conducted in this state except419
by an auctioneer licensed by the department.420

       The department shall not issue or renew a license if the421
applicant or licensee has been convicted of a felony or crime422
involving fraud or theft in this or another state at any time 423
during the ten years immediately preceding application or renewal.424

       This(B) Division (A) of this section does not apply to any 425
of the following:426

       (A)(1) Sales at auction that either are required by law to be 427
at auction, other than sales pursuant to a judicial order or 428
decree, or that are conducted by or under the direction of a 429
public authority;430

       (B)(2) The owner of any real or personal property desiring to431
sell the property at auction, provided that the property was not432
acquired for the purpose of resale;433

       (C)(3) An auction mediation company;434

       (D)(4) An auction that is conducted in a course of study for 435
auctioneers that is approved by the state auctioneers commission 436
created under section 4707.03 of the Revised Code for purposes of 437
student training and is supervised by a licensed auctioneer;438

       (E)(5)(a) An auction that is sponsored by a nonprofit or 439
charitable organization that is registered in this state under 440
Chapter 1702. or Chapter 1716. of the Revised Code, respectively, 441
if the auction only involves the property of the members of the 442
organization and the auction is part of a fair that is organized 443
by an agricultural society under Chapter 1711. of the Revised Code 444
or by the Ohio expositions commission under Chapter 991. of the 445
Revised Code at which an auctioneer who is licensed under this 446
chapter physically conducts the auction; or447

       (b) Sales at an auction sponsored by a charitable, religious, 448
or civic organization that is tax exempt under subsection 449
501(c)(3) of the Internal Revenue Code, or by a public school, 450
chartered nonpublic school, or community school, if no person in 451
the business of organizing, arranging, or conducting an auction 452
for compensation and no consignor of consigned items sold at the 453
auction, except such organization or school, receives 454
compensation from the proceeds of the auction. As used in 455
division (B)(5)(b) of this section, "compensation" means money, a 456
thing of value other than participation in a charitable event, or 457
a financial benefit.458

       (F)(6) A person licensed as a livestock dealer under Chapter 459
943. of the Revised Code who exclusively sells livestock and uses 460
an auctioneer who is licensed under this chapter to conduct the 461
auction;462

       (G)(7) A person licensed as a motor vehicle auction owner 463
under Chapter 4517. of the Revised Code who exclusively sells 464
motor vehicles to a person licensed under Chapter 4517. of the 465
Revised Code and who uses an auctioneer who is licensed under 466
this chapter to conduct the auction;467

       (H)(8) A person who sells real or personal property by means 468
of the internet.469

       (C)(1) No person shall advertise or hold oneself out as an 470
auction firm, auctioneer, apprentice auctioneer, or special 471
auctioneer without a license issued by the department of 472
agriculture.473

       (2) Division (C)(1) of this section does not apply to an 474
individual who is the subject of an advertisement regarding an 475
auction conducted under division (B)(5)(b) of this section.476

       Sec. 4707.20.  (A) NoExcept when conducting an auction under 477
division (B)(5)(b) of section 4707.02 of the Revised Code, no478
person shall act as an auction firm, auctioneer, or special 479
auctioneer until the person has first entered into a written 480
contract or agreement in duplicate with the owner or consignee of 481
any property to be sold, containing the terms and conditions upon 482
which the licensee receives or accepts the property for sale at 483
auction. The contracts or agreements shall, for a period of two 484
years, be kept on file in the office of every person so licensed. 485
No apprentice auctioneer shall be authorized to enter into such a 486
contract or agreement without the written consent of the 487
apprentice auctioneer's sponsoring auctioneer, and all contracts 488
or agreements shall be made in the name of and on behalf of the489
sponsoring auctioneer. In addition, an apprentice auctioneer shall 490
not enter into an auction contract for the sale of real property 491
in the name of the sponsoring auctioneer regardless of whether the 492
apprentice auctioneer is licensed as a real estate broker or 493
salesperson.494

       (B) On all contracts or agreements between an auction firm, 495
auctioneer, or special auctioneer and the owner or consignee, 496
there shall appear a prominent statement indicating that the 497
auction firm, auctioneer, or special auctioneer is licensed by the498
department of agriculture, and either that the licensee is bonded 499
in favor of the state or that an aggrieved person may initiate a 500
claim against the auction recovery fund created in section 4707.25 501
of the Revised Code as a result of the licensee's actions, 502
whichever is applicable.503

       (C) The auction firm, auctioneer, or special auctioneer who 504
contracts with the owner is liable for the settlement of all money505
received, including the payment of all expenses incurred only by506
the licensee and the distribution of all funds, in connection with 507
an auction.508

       (D) For purposes of this section, a contract or agreement 509
shall specify all of the following:510

       (1) The owner of the property to be sold or the owner's agent 511
or the consignee;512

       (2) The date of the auction or a termination date of the 513
contract or agreement;514

       (3) The location of the auction;515

       (4) The terms and conditions of the auction;516

       (5) All of the fees to be charged by the auctioneer or the 517
auction firm, which shall include commissions, rentals, 518
advertising, and labor;519

       (6) An explanation of the settlement of the auction that 520
includes the disbursement of interest money, if applicable;521

       (7) A statement establishing the responsibility for bad 522
checks, debts, and unpaid auction items;523

       (8) A statement indicating whether the auction is a reserve 524
auction or an absolute auction. In addition, the statement shall 525
include the definition of reserve auction or absolute auction from 526
section 4707.01 of the Revised Code, as applicable.527

       (9) A statement of the auctioneer's or auction firm's policy 528
regarding absentee bidding;529

       (10) A brief description of the real or personal property to 530
be sold;531

       (11) If the sale is of real or personal property at absolute 532
auction, a statement affirming that the seller of the real or 533
personal property has a bona fide intention to transfer ownership 534
of the property to the highest bidder.535

       Sec. 4707.21.  No auction firm, auctioneer, apprentice 536
auctioneer, or special auctioneer shall willfully neglect or 537
refuse to furnish the department of agriculture statistics or 538
other information in the auction firm's, auctioneer's, apprentice539
auctioneer's, or special auctioneer's possession or under the 540
auction firm's, auctioneer's, apprentice auctioneer's, or special 541
auctioneer's control that the auction firm, auctioneer, apprentice542
auctioneer, or special auctioneer is authorized to collect; nor543
shall the auction firm, auctioneer, apprentice auctioneer, or 544
special auctioneer neglect or refuse, for more than thirty days, 545
to answer questions submitted on circulars; nor shall the auction 546
firm, auctioneer, apprentice auctioneer, or special auctioneer547
knowingly answer any such questions falsely; and nor shall the548
auction firm, auctioneer, apprentice auctioneer, or special 549
auctioneer refuse to obey subpoenas and give testimony. Licensees, 550
as well as charitable, religious, or civic organizations and 551
schools that sponsor an auction under division (B)(5)(b) of 552
section 4707.02 of the Revised Code, shall keep records relative 553
to any auction sale for at least two years from theits date of 554
auction. These records shall include settlement sheets, written555
contracts, and copies of any advertising that lists the items for 556
auction, as applicable.557

       Sec. 4707.26. (A)(1) A person who asserts that the person has558
been aggrieved by the actions of a person licensed under this559
chapter that resulted in actual and direct losses to the aggrieved560
person may initiate a claim against the auction recovery fund561
either under this section or section 4707.261 of the Revised Code.562
If an aggrieved person who wishes to seek recovery from the563
auction recovery fund has obtained a final judgment in a court of564
competent jurisdiction against the licensee, the aggrieved person565
shall initiate the claim in accordance with section 4707.261 of566
the Revised Code. If an aggrieved person who wishes to seek567
recovery from the auction recovery fund has not obtained a final568
judgment in a court of competent jurisdiction against the569
licensee, the aggrieved person shall initiate the claim in570
accordance with this section.571

       (2) An aggrieved person may initiate a claim against the572
auction recovery fund under this section if all of the following573
apply:574

       (a) The loss was associated with an act or transaction that575
only a person licensed under this chapter lawfully may perform.576

       (b) The licensee's actions are described in section 4707.15577
of the Revised Code or otherwise violate this chapter or rules578
adopted under it.579

       (c) The licensee is not an auction firm.580

       (d) The loss was not associated with an auction conducted 581
under division (B)(5)(b) of section 4707.02 of the Revised Code.582

       To initiate a claim against the fund, an aggrieved person583
shall file a verified complaint with the department of agriculture584
in accordance with section 4707.16 of the Revised Code. The585
verified complaint shall include an application to the department586
that requests recovery of the applicant's actual and direct losses587
and that is made on forms that the department provides. The588
application for recovery shall specify the nature of the act or589
transaction on which the applicant's claim is based, the actual590
and direct losses sustained by the applicant, and any activities591
that the applicant has pursued as a remedy for the losses.592

       (B) Upon receipt of a verified complaint and application, the 593
department shall conduct an investigation in accordance with594
section 4707.16 of the Revised Code. After the investigation, if595
the department determines that the licensee has engaged in conduct596
described in section 4707.15 of the Revised Code or otherwise has597
violated this chapter or rules adopted under it, the department598
shall propose to take action to suspend or revoke the licensee's599
license under section 4707.15 of the Revised Code or to initiate a600
criminal action against the licensee under section 4707.99 of the601
Revised Code, or both. The department shall issue a letter to the602
applicant indicating the department's proposed action and the date603
of any hearing that the department has scheduled regarding the604
matter.605

       (C) Upon exhaustion of administrative remedies or criminal 606
proceedings that results in a finding that the licensee has 607
engaged in conduct described in section 4707.15 of the Revised608
Code or otherwise has violated this chapter or rules adopted under609
it, the department shall issue a notice in accordance with Chapter610
119. of the Revised Code via certified mail to the applicant611
indicating that the applicant may request a hearing for relief612
from the auction recovery fund. An applicant who seeks recovery613
from the fund of any actual and direct losses suffered as a result614
of a licensee's conduct shall submit, not later than thirty days615
following receipt of the notice, a request for a hearing to the616
department.617

       Upon the timely receipt of a request for a hearing, the618
department shall provide the applicant with the opportunity to619
appear at an adjudication hearing to offer proof and evidence of620
the actual and direct losses. Whenever possible, the department621
shall require all applicants whose claims to the fund arose from622
an underlying transaction involving the same licensee to be joined623
in one adjudication under this section so that the rights of all624
applicants may be equitably adjudicated and settled. On behalf of625
the fund, the department may defend claims against the fund and626
shall have recourse to all appropriate means of defense and627
review, including examination of witnesses, and verification of628
actual losses.629

       (D) Upon the conclusion of the adjudication hearing, the630
hearing officer shall issue a report and recommendation in favor631
of making payment to an applicant from the fund if, during the632
course of the adjudication hearing, all of the following have been633
shown:634

       (1) The licensee has engaged in conduct described in section635
4707.15 of the Revised Code or otherwise has violated this chapter636
or rules adopted under it.637

       (2) The licensee's conduct or violation is associated with an 638
act that only a person licensed under this chapter lawfully may639
perform and the act resulted in direct and actual losses to the640
applicant.641

       (3) The applicant filed a verified complaint and application642
with the department as required by this section.643

       (4) The applicant is not the spouse of the licensee noror644
the personal representative of the licensee's spouse.645

       (5) If the licensee either provided an irrevocable letter of 646
credit or gave bond in accordance with section 4707.11 of the647
Revised Code, the applicant first sought recovery under the648
irrevocable letter of credit or bond before applying for payment649
from the fund.650

       The amount of any payment from the fund to the applicant651
shall consist of an amount that is equal to the portion of the652
actual and direct losses incurred by the applicant that remain653
unpaid. The amount of the payment is subject to the dollar654
limitation established in section 4707.29 of the Revised Code.655

       If the hearing officer determines that not all of the items656
described in divisions (D)(1) to (5) of this section have been657
shown during the course of the adjudication hearing, the hearing658
officer shall issue a report and recommendation against making659
payment from the fund to the applicant.660

       (E) Pursuant to section 119.09 of the Revised Code, a hearing 661
officer or the hearing officer's representative shall forward by 662
certified mail a copy of the hearing officer's written report and 663
recommendation to the applicant or the applicant's attorney or 664
other representative not later than five days after the date on 665
which the report and recommendation are filed.666

       Not later than ten days after receiving such a copy, the667
applicant may file with the department written objections to the668
report and recommendation. The department may grant extensions of669
time to the applicant within which to file objections.670

       The objections shall be considered by the department before 671
it approves, modifies, or disapproves the recommendation. The 672
department may order additional testimony to be taken or permit 673
the introduction of further documentary evidence.674

       The recommendation of the hearing officer may be approved,675
modified, or disapproved by order of the director of agriculture.676
The order shall not be issued until more than ten days have677
elapsed following the applicant's receipt of the report and678
recommendation as provided by this section. The director's679
approval, modification, or disapproval of the hearing officer's680
recommendation shall have the same effect as if the hearing had681
been conducted by the director.682

       No recommendation shall be final until approved, modified, or 683
disapproved by the director as indicated by the order entered on 684
the record of proceedings of the department. If the director685
modifies or disapproves the recommendations of the hearing686
officer, the director shall include in the record of the687
proceedings the reasons for the modification or disapproval.688

       After an order is entered on its journal, the department689
shall make payment, if applicable, to the applicant from the690
auction recovery fund in accordance with the order and shall691
provide to the applicant by certified mail, return receipt692
requested, a copy of the order and a statement of the time and693
method by which an appeal may be perfected. In addition, the694
department shall mail a copy of the order to the attorney or other695
representative of the applicant.696

       (F) An order of the director issued under this section697
constitutes a final determination of the director for purposes of698
appeal. An applicant who is denied compensation from the auction699
recovery fund or who receives an award less than the award700
requested may appeal the order of the director. Notices of appeal701
shall be filed in the manner provided in section 119.12 of the702
Revised Code.703

       Section 2. That existing sections 307.12, 505.10, 4707.02, 704
4707.20, 4707.21, and 4707.26 of the Revised Code are hereby 705
repealed.706

       Section 3.  Section 505.10 of the Revised Code is presented 707
in this act as a composite of the section as amended by both Sub. 708
H.B. 204 and Sub. H.B. 323 of the 125th General Assembly. The 709
General Assembly, applying the principle stated in division (B) of 710
section 1.52 of the Revised Code that amendments are to be 711
harmonized if reasonably capable of simultaneous operation, finds 712
that the composite is the resulting version of the section in 713
effect prior to the effective date of the section as presented in 714
this act.715