As Reported by the House State Government and Elections Committee

127th General Assembly Regular Session 2007-2008

Sub. S. B. No. 185

Senator Schuler 

Cosponsors: Senators Kearney, Cates, Grendell, Seitz, Carey, Gardner, Harris, Sawyer, Wilson, Fedor, Morano, Spada, Boccieri 

Representatives Daniels, Brown, Collier, Domenick, Flowers, Lundy, Reinhard, Schneider, Skindell 

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A BILL

To amend sections 127.14, 131.18, 131.44, 131.51,

1

133.10, 135.35, 135.352, 149.411, 321.08, 3375.05,

2

3375.121, 3375.32, 3375.35, 3375.36, 3375.37,

3

3375.38, 3375.39, 3375.40, 3375.404, 3375.41,

4

3375.42, 3375.85, 3375.91, 3375.92, 5705.28,

5

5705.281, 5705.31, 5705.32, 5705.321, 5705.37,

6

5715.36, 5719.041, 5747.03, 5747.46, 5747.47,

7

5747.48, 5747.51, and 5747.52 and to enact

8

sections 3375.351, 3375.64, 3375.65, 3375.66, and

9

3375.67 of the Revised Code and to amend Section

10

323.10 of H.B. 119 of the 127th General Assembly

11

to revise certain laws governing public

12

libraries, to change the name of the Library and

13

Local Government Support Fund, and to codify the

14

creation of the Ohio Public Library Information

15

Network.

16

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

Section 1. That sections 127.14, 131.18, 131.44, 131.51,	17
133.10, 135.35, 135.352, 149.411, 321.08, 3375.05, 3375.121,	18
3375.32, 3375.35, 3375.36, 3375.37, 3375.38, 3375.39, 3375.40,	19
3375.404, 3375.41, 3375.42, 3375.85, 3375.91, 3375.92, 5705.28,	20
5705.281, 5705.31, 5705.32, 5705.321, 5705.37, 5715.36, 5719.041,	21
5747.03, 5747.46, 5747.47, 5747.48, 5747.51, and 5747.52 be	22
amended and sections 3375.351, 3375.64, 3375.65, 3375.66, and	23
3375.67 of the Revised Code be enacted to read as follows:	24

Sec. 127.14.  The controlling board may, at the request of	25
any state agency or the director of budget and management,	26
authorize, with respect to the provisions of any appropriation	27
act:	28

(A) Transfers of all or part of an appropriation within but	29
not between state agencies, except such transfers as the director	30
of budget and management is authorized by law to make, provided	31
that no transfer shall be made by the director for the purpose of	32
effecting new or changed levels of program service not authorized	33
by the general assembly;	34

(B) Transfers of all or part of an appropriation from one	35
fiscal year to another;	36

(C) Transfers of all or part of an appropriation within or	37
between state agencies made necessary by administrative	38
reorganization or by the abolition of an agency or part of an	39
agency;	40

(D) Transfers of all or part of cash balances in excess of	41
needs from any fund of the state to the general revenue fund or to	42
such other fund of the state to which the money would have been	43
credited in the absence of the fund from which the transfers are	44
authorized to be made, except that the controlling board may not	45
authorize such transfers from the accrued leave liability fund,	46
auto registration distribution fund, budget stabilization fund,	47
development bond retirement fund, facilities establishment fund,	48
gasoline excise tax fund, general revenue fund, higher education	49
improvement fund, highway improvement bond retirement fund,	50
highway obligations bond retirement fund, highway capital	51
improvement fund, highway operating fund, horse racing tax fund,	52
improvements bond retirement fund, public library and local	53
government support fund, liquor control fund, local government	54
fund, local transportation improvement program fund, mental health	55
facilities improvement fund, Ohio fairs fund, parks and recreation	56
improvement fund, public improvements bond retirement fund, school	57
district income tax fund, state agency facilities improvement	58
fund, state and local government highway distribution fund, state	59
highway safety fund, state lottery fund, undivided liquor permit	60
fund, Vietnam conflict compensation bond retirement fund,	61
volunteer fire fighters' dependents fund, waterways safety fund,	62
wildlife fund, workers' compensation fund, or any fund not	63
specified in this division that the director of budget and	64
management determines to be a bond fund or bond retirement fund;	65

(E) Transfers of all or part of those appropriations included	66
in the emergency purposes account of the controlling board;	67

(F) Temporary transfers of all or part of an appropriation or	68
other moneys into and between existing funds, or new funds, as may	69
be established by law when needed for capital outlays for which	70
notes or bonds will be issued;	71

(G) Transfer or release of all or part of an appropriation to	72
a state agency requiring controlling board approval of such	73
transfer or release as provided by law;	74

(H) Temporary transfer of funds included in the emergency	75
purposes appropriation of the controlling board. Such temporary	76
transfers may be made subject to conditions specified by the	77
controlling board at the time temporary transfers are authorized.	78
No transfers shall be made under this division for the purpose of	79
effecting new or changed levels of program service not authorized	80
by the general assembly.	81

As used in this section, "request" means an application by a	82
state agency or the director of budget and management seeking some	83
action by the controlling board.	84

When authorizing the transfer of all or part of an	85
appropriation under this section, the controlling board may	86
authorize the transfer to an existing appropriation item and the	87
creation of and transfer to a new appropriation item.	88

Whenever there is a transfer of all or part of funds included	89
in the emergency purposes appropriation by the controlling board,	90
pursuant to division (E) of this section, the state agency or the	91
director of budget and management receiving such transfer shall	92
keep a detailed record of the use of the transferred funds. At the	93
earliest scheduled meeting of the controlling board following the	94
accomplishment of the purposes specified in the request originally	95
seeking the transfer, or following the total expenditure of the	96
transferred funds for the specified purposes, the state agency or	97
the director of budget and management shall submit a report on the	98
expenditure of such funds to the board. The portion of any	99
appropriation so transferred which is not required to accomplish	100
the purposes designated in the original request to the controlling	101
board shall be returned to the proper appropriation of the	102
controlling board at this time.	103

Notwithstanding any provisions of law providing for the	104
deposit of revenues received by a state agency to the credit of a	105
particular fund in the state treasury, whenever there is a	106
temporary transfer of funds included in the emergency purposes	107
appropriation of the controlling board pursuant to division (H) of	108
this section, revenues received by any state agency receiving such	109
a temporary transfer of funds shall, as directed by the	110
controlling board, be transferred back to the emergency purposes	111
appropriation.	112

The board may delegate to the director of budget and	113
management authority to approve transfers among items of	114
appropriation under division (A) of this section.	115

Sec. 131.18.  When a loss of public funds, entrusted to a	116
county or municipal corporation treasurer or to a clerk of the	117
court of common pleas, clerk of the court of appeals, clerk of the	118
municipal court, clerk of the county court, judge of the probate	119
court as clerk of such court, judge of the juvenile court as clerk	120
of such court, or to a township or school district treasurer, or a	121
clerkfiscal officer of the board of trustees of a public library	122
by virtue of histhe treasurer's, clerk's, judge's, or fiscal	123
officer's office, results from fire, robbery, burglary, flood, or	124
inability of a bank to refund public money lawfully in its	125
possession belonging to such public funds, the board of county	126
commissioners, board of township trustees, the legislative	127
authority of the municipal corporation, the board of education, or	128
the board of library trustees, respectively, may release and	129
discharge such treasurer, clerk, or judge, or fiscal officer from	130
all personal liability to or demands of such county, township,	131
municipal corporation, school district, or public library, for the	132
loss so created unless the loss resulted from histhe treasurer's,	133
clerk's, judge's, or fiscal officer's negligence or other wrongful	134
act.	135

Sec. 131.44.  (A) As used in this section:

136

(1) "Surplus revenue" means the excess, if any, of the total	137
fund balance over the required year-end balance.	138

(2) "Total fund balance" means the sum of the unencumbered	139
balance in the general revenue fund on the last day of the	140
preceding fiscal year plus the balance in the budget stabilization	141
fund.	142

(3) "Required year-end balance" means the sum of the	143
following:	144

(a) Five per cent of the general revenue fund revenues for	145
the preceding fiscal year;	146

(b) "Ending fund balance," which means one-half of one per	147
cent of general revenue fund revenues for the preceding fiscal	148
year;	149

(c) "Carryover balance," which means, with respect to a	150
fiscal biennium, the excess, if any, of the estimated general	151
revenue fund appropriation and transfer requirement for the second	152
fiscal year of the biennium over the estimated general revenue	153
fund revenue for that fiscal year;	154

(d) "Capital appropriation reserve," which means the amount,	155
if any, of general revenue fund capital appropriations made for	156
the current biennium that the director of budget and management	157
has determined will be encumbered or disbursed;	158

(e) "Income tax reduction impact reserve," which means an	159
amount equal to the reduction projected by the director of budget	160
and management in income tax revenue in the current fiscal year	161
attributable to the previous reduction in the income tax rate made	162
by the tax commissioner pursuant to division (B) of section	163
5747.02 of the Revised Code.	164

(4) "Estimated general revenue fund appropriation and	165
transfer requirement" means the most recent adjusted	166
appropriations made by the general assembly from the general	167
revenue fund and includes both of the following:	168

(a) Appropriations made and transfers of appropriations from	169
the first fiscal year to the second fiscal year of the biennium in	170
provisions of acts of the general assembly signed by the governor	171
but not yet effective;	172

(b) Transfers of appropriation from the first fiscal year to	173
the second fiscal year of the biennium approved by the controlling	174
board.	175

(5) "Estimated general revenue fund revenue" means the most	176
recent such estimate available to the director of budget and	177
management.	178

(B)(1) Not later than the thirty-first day of July each year,	179
the director of budget and management shall determine the surplus	180
revenue that existed on the preceding thirtieth day of June and	181
transfer from the general revenue fund, to the extent of the	182
unobligated, unencumbered balance on the preceding thirtieth day	183
of June in excess of one-half of one per cent of the general	184
revenue fund revenues in the preceding fiscal year, the following:	185

(a) First, to the budget stabilization fund, any amount	186
necessary for the balance of the budget stabilization fund to	187
equal five per cent of the general revenue fund revenues of the	188
preceding fiscal year;	189

(b) Then, to the income tax reduction fund, which is hereby	190
created in the state treasury, an amount equal to the surplus	191
revenue.	192

(2) Not later than the thirty-first day of July each year,	193
the director shall determine the percentage that the balance in	194
the income tax reduction fund is of the amount of revenue that the	195
director estimates will be received from the tax levied under	196
section 5747.02 of the Revised Code in the current fiscal year	197
without regard to any reduction under division (B) of that	198
section. If that percentage exceeds thirty-five one hundredths of	199
one per cent, the director shall certify the percentage to the tax	200
commissioner not later than the thirty-first day of July.	201

(C) The director of budget and management shall transfer	202
money in the income tax reduction fund to the general revenue	203
fund, the local government fund, and the public library and local	204
government support fund as necessary to offset revenue reductions	205
resulting from the reductions in taxes required under division (B)	206
of section 5747.02 of the Revised Code in the respective amounts	207
and percentages prescribed by division (A) of section 5747.03 and	208
divisions (A) and (B) of section 131.51 of the Revised Code as if	209
the amount transferred had been collected as taxes under Chapter	210
5747. of the Revised Code. If no reductions in taxes are made	211
under that division that affect revenue received in the current	212
fiscal year, the director shall not transfer money from the	213
income tax reduction fund to the general revenue fund, the local	214
government fund, and the public library and local government	215
support fund.	216

Sec. 131.51.  (A) Beginning January 2008, on or before the	217
fifth day of each month, the director of budget and management	218
shall credit to the local government fund three and sixty-eight	219
one hundredths per cent of total tax revenue credited to the	220
general revenue fund during the preceding month. In determining	221
the total tax revenue credited to the general revenue fund during	222
the preceding month, the director shall include amounts	223
transferred from that fund during the preceding month pursuant to	224
divisions (A) and (B) of this section. Money shall be distributed	225
from the local government fund as required under section 5747.50	226
of the Revised Code during the same month in which it is credited	227
to the fund.	228

(B) Beginning January 2008, on or before the fifth day of	229
each month, the director of budget and management shall credit to	230
the public library and local government support fund, two and	231
twenty-two one hundredths per cent of the total tax revenue	232
credited to the general revenue fund during the preceding month.	233
In determining the total tax revenue credited to the general	234
revenue fund during the preceding month, the director shall	235
include amounts transferred from that fund during the preceding	236
month pursuant to divisions (A) and (B) of this section. Money	237
shall be distributed from the public library and local government	238
support fund as required under section 5747.47 of the Revised	239
Code during the same month in which it is credited to the fund.	240

(C) The director of budget and management shall develop a	241
schedule identifying the specific tax revenue sources to be used	242
to make the monthly transfers required under divisions (A) and (B)	243
of this section. The director may, from time to time, revise the	244
schedule as the director considers necessary.	245

Sec. 133.10.  (A) In anticipation of the collection of	246
current property tax revenues in and for any fiscal year, the	247
taxing authority of any subdivision may issue securities, but the	248
aggregate principal amount of such securities shall not exceed	249
one-half of the amount that the budget commission estimates the	250
subdivision will receive from property taxes in that fiscal year	251
and prior to the last day of the sixth month following the month	252
in which the securities are issued, other than taxes to be	253
received for the payment of debt charges or allocated to debt	254
charges on securities issued pursuant to division (C) of this	255
section, and less all advances. When a partial, semiannual, or	256
final property tax settlement is delayed, securities may also be	257
issued in anticipation of the receipt of property taxes levied or	258
collected for debt charges to the extent necessary to meet such	259
debt charges but not in excess of such estimated receipts, less	260
all advances. The securities issued pursuant to this division (A)	261
shall mature not later than the last day of the sixth month	262
following the month in which the securities are issued and in any	263
case not later than the last day of the fiscal year in which they	264
are issued.	265

(B) In anticipation of the collection of current revenues in	266
and for any fiscal year from any source or combination of sources,	267
including distributions of any federal or state moneys, other than	268
the proceeds of property taxes levied by the subdivision, the	269
taxing authority of any subdivision may issue securities, but the	270
aggregate principal amount of such securities shall not exceed	271
one-half of the amount estimated by the fiscal officer to be	272
received by the subdivision from such sources during the remainder	273
of such fiscal year, less advances and prior collections.	274

(C) In anticipation of the collection of current property tax	275
revenues in and for any fiscal year, the taxing authority of a	276
county, municipal corporation, township, or school district may	277
issue securities, but the aggregate principal amount of those	278
securities and of any securities issued pursuant to division (A)	279
of this section outstanding at the time of issuance shall not	280
exceed one-half of the amount that the budget commission estimates	281
the subdivision will receive from all property taxes that are to	282
be distributed to the subdivision from all settlements of taxes	283
that are to be made in the remainder of that fiscal year, other	284
than taxes to be received for the payment of debt charges, and	285
less all advances.	286

(D) When the tax settlement scheduled under division (B) of	287
section 321.24 of the Revised Code is delayed pursuant to division	288
(E) of that section, the taxing authority of a school district may	289
issue property tax anticipation securities against the taxes to be	290
included in that settlement, but the aggregate principal amount of	291
all securities outstanding against those taxes shall not exceed	292
ninety per cent of the amount estimated to be received from that	293
settlement by the budget commission, other than taxes to be	294
received for the payment of debt charges, and less all advances.	295
The securities issued pursuant to this division (D) shall mature	296
on or before the next ensuing thirty-first day of August.	297

(E) This division applies to all securities authorized by	298
this section.	299

(1) The amounts from the sources anticipated needed to pay	300
debt charges and financing costs shall be considered appropriated	301
for that purpose, and other appropriations from those sources by	302
the taxing authority shall be limited to the balance available	303
after deducting the amount to pay those debt charges and financing	304
costs. The portions of those amounts as received and to be applied	305
to those debt charges shall be deposited and set aside in an	306
account for the purpose in the bond retirement fund in the amounts	307
and at the times required to pay those debt charges as provided	308
for by the authorizing legislation or otherwise provided by law.	309

(2) Except as otherwise provided in division (H) of this	310
section, the securities shall not be issued prior to the first day	311
and, except as otherwise provided in divisions (A) and (D) of this	312
section, shall mature not later than the last day of the fiscal	313
year for which the revenues are anticipated.	314

(3) The proceeds of the principal amount of the securities	315
shall be used only for the purposes for which the amounts	316
anticipated were levied, collected, distributed, and appropriated,	317
and for financing costs related to those securities.	318

(4) Property taxes include distributions from the state in	319
payment of credits against or partial exemptions from, or	320
reduction of, property taxes.	321

(5) If for any reason debt charges on securities authorized	322
by this section are not paid by the subdivision in the fiscal year	323
when due, the taxing authority of the subdivision shall include in	324
its next annual appropriation measure an amount sufficient to pay	325
those debt charges, and the county auditor and county treasurer	326
shall withhold, in a custodial account, amounts due the	327
subdivision from the sources anticipated until such amount is	328
accumulated by those officers and they directly pay or provide,	329
through the paying agent or otherwise, for the payment of those	330
debt charges.	331

(F) The authority to issue securities under divisions (A) and	332
(B) of this section may be exercised by any board of library	333
trustees of a public library, or board of park commissioners of a	334
township, to which the budget commission has allotted a share of	335
the local government fund under section 5747.51 of the Revised	336
Code or of the public library and local government support fund	337
under section 5707.051 of the Revised Code.	338

(G) The taxing authority of a school district issuing	339
securities under division (A), (C), or (D) of this section shall	340
in the legislation authorizing the securities affirm the levy of,	341
or covenant to levy, the anticipated property taxes to be	342
collected in the following year.	343

(H) The taxing authority of a school district may issue	344
securities authorized by this section on or after the tenth day	345
preceding the first day of the fiscal year for which the revenues	346
are anticipated; provided, that if the taxing authority of a	347
school district issues securities authorized by this section prior	348
to the first day of the fiscal year for which the revenues are	349
anticipated:	350

(1) None of the proceeds received by the school district from	351
the sale of the securities shall be considered available for	352
appropriation prior to the first day of the fiscal year for which	353
the revenues are anticipated; and	354

(2) None of the proceeds received by the school district from	355
the sale of the securities shall be expended prior to the first	356
day of the fiscal year for which the revenues are anticipated.	357

Sec. 135.35.  (A) The investing authority shall deposit or	358
invest any part or all of the county's inactive moneys and shall	359
invest all of the money in the county public library and local	360
government support fund when required by section 135.352 of the	361
Revised Code. The following classifications of securities and	362
obligations are eligible for such deposit or investment:	363

(1) United States treasury bills, notes, bonds, or any other	364
obligation or security issued by the United States treasury, any	365
other obligation guaranteed as to principal or interest by the	366
United States, or any book entry, zero-coupon United States	367
treasury security that is a direct obligation of the United	368
States.	369

Nothing in the classification of eligible securities and	370
obligations set forth in divisions (A)(2) to (11) of this section	371
shall be construed to authorize any investment in stripped	372
principal or interest obligations of such eligible securities and	373
obligations.	374

(2) Bonds, notes, debentures, or any other obligations or	375
securities issued by any federal government agency or	376
instrumentality, including but not limited to, the federal	377
national mortgage association, federal home loan bank, federal	378
farm credit bank, federal home loan mortgage corporation,	379
government national mortgage association, and student loan	380
marketing association. All federal agency securities shall be	381
direct issuances of federal government agencies or	382
instrumentalities.	383

(3) Time certificates of deposit or savings or deposit	384
accounts, including, but not limited to, passbook accounts, in any	385
eligible institution mentioned in section 135.32 of the Revised	386
Code;	387

(4) Bonds and other obligations of this state or the	388
political subdivisions of this state, provided that such political	389
subdivisions are located wholly or partly within the same county	390
as the investing authority;	391

(5) No-load money market mutual funds consisting exclusively	392
of obligations described in division (A)(1) or (2) of this section	393
and repurchase agreements secured by such obligations, provided	394
that investments in securities described in this division are made	395
only through eligible institutions mentioned in section 135.32 of	396
the Revised Code;	397

(6) The Ohio subdivision's fund as provided in section 135.45	398
of the Revised Code;	399

(7) Securities lending agreements with any eligible	400
institution mentioned in section 135.32 of the Revised Code that	401
is a member of the federal reserve system or federal home loan	402
bank or with any recognized United States government securities	403
dealer meeting the description in division (J)(1) of this section,	404
under the terms of which agreements the investing authority lends	405
securities and the eligible institution or dealer agrees to	406
simultaneously exchange similar securities or cash, equal value	407
for equal value.	408

Securities and cash received as collateral for a securities	409
lending agreement are not inactive moneys of the county or moneys	410
of a county public library and local government support fund. The	411
investment of cash collateral received pursuant to a securities	412
lending agreement may be invested only in instruments specified by	413
the investing authority in the written investment policy described	414
in division (K) of this section.	415

(8) Up to twenty-five per cent of the county's total average	416
portfolio in either of the following investments:	417

(a) Commercial paper notes issued by an entity that is	418
defined in division (D) of section 1705.01 of the Revised Code and	419
that has assets exceeding five hundred million dollars, to which	420
notes all of the following apply:	421

(i) The notes are rated at the time of purchase in the	422
highest classification established by at least two nationally	423
recognized standard rating services.	424

(ii) The aggregate value of the notes does not exceed ten per	425
cent of the aggregate value of the outstanding commercial paper of	426
the issuing corporation.	427

(iii) The notes mature not later than two hundred seventy	428
days after purchase.	429

(b) Bankers acceptances of banks that are insured by the	430
federal deposit insurance corporation and to which both of the	431
following apply:	432

(i) The obligations are eligible for purchase by the federal	433
reserve system.	434

(ii) The obligations mature not later than one hundred eighty	435
days after purchase.	436

No investment shall be made pursuant to division (A)(8) of	437
this section unless the investing authority has completed	438
additional training for making the investments authorized by	439
division (A)(8) of this section. The type and amount of additional	440
training shall be approved by the auditor of state and may be	441
conducted by or provided under the supervision of the auditor of	442
state.	443

(9) Up to fifteen per cent of the county's total average	444
portfolio in notes issued by corporations that are incorporated	445
under the laws of the United States and that are operating within	446
the United States, or by depository institutions that are doing	447
business under authority granted by the United States or any state	448
and that are operating within the United States, provided both of	449
the following apply:	450

(a) The notes are rated in the second highest or higher	451
category by at least two nationally recognized standard rating	452
services at the time of purchase.	453

(b) The notes mature not later than two years after purchase.

454

(10) No-load money market mutual funds rated in the highest	455
category at the time of purchase by at least one nationally	456
recognized standard rating service and consisting exclusively of	457
obligations described in division (A)(1), (2), or (6) of section	458
135.143 of the Revised Code;	459

(11) Debt interests rated at the time of purchase in the	460
three highest categories by two nationally recognized standard	461
rating services and issued by foreign nations diplomatically	462
recognized by the United States government. All interest and	463
principal shall be denominated and payable in United States funds.	464
The investments made under division (A)(11) of this section shall	465
not exceed in the aggregate one per cent of a county's total	466
average portfolio.	467

The investing authority shall invest under division (A)(11)	468
of this section in a debt interest issued by a foreign nation only	469
if the debt interest is backed by the full faith and credit of	470
that foreign nation, there is no prior history of default, and the	471
debt interest matures not later than five years after purchase.	472
For purposes of division (A)(11) of this section, a debt interest	473
is rated in the three highest categories by two nationally	474
recognized standard rating services if either the debt interest	475
itself or the issuer of the debt interest is rated, or is	476
implicitly rated, at the time of purchase in the three highest	477
categories by two nationally recognized standard rating services.	478

(B) Nothing in the classifications of eligible obligations	479
and securities set forth in divisions (A)(1) to (11) of this	480
section shall be construed to authorize investment in a	481
derivative, and no investing authority shall invest any county	482
inactive moneys or any moneys in a county public library and local	483
government support fund in a derivative. For purposes of this	484
division, "derivative" means a financial instrument or contract or	485
obligation whose value or return is based upon or linked to	486
another asset or index, or both, separate from the financial	487
instrument, contract, or obligation itself. Any security,	488
obligation, trust account, or other instrument that is created	489
from an issue of the United States treasury or is created from an	490
obligation of a federal agency or instrumentality or is created	491
from both is considered a derivative instrument. An eligible	492
investment described in this section with a variable interest rate	493
payment, based upon a single interest payment or single index	494
comprised of other eligible investments provided for in division	495
(A)(1) or (2) of this section, is not a derivative, provided that	496
such variable rate investment has a maximum maturity of two years.	497
A treasury inflation-protected security shall not be considered a	498
derivative, provided the security matures not later than five	499
years after purchase.	500

(C) Except as provided in division (D) of this section, any	501
investment made pursuant to this section must mature within five	502
years from the date of settlement, unless the investment is	503
matched to a specific obligation or debt of the county or to a	504
specific obligation or debt of a political subdivision of this	505
state located wholly or partly within the county, and the	506
investment is specifically approved by the investment advisory	507
committee.	508

(D) The investing authority may also enter into a written	509
repurchase agreement with any eligible institution mentioned in	510
section 135.32 of the Revised Code or any eligible securities	511
dealer pursuant to division (J) of this section, under the terms	512
of which agreement the investing authority purchases and the	513
eligible institution or dealer agrees unconditionally to	514
repurchase any of the securities listed in divisions (B)(1) to	515
(5), except letters of credit described in division (B)(2), of	516
section 135.18 of the Revised Code. The market value of securities	517
subject to an overnight written repurchase agreement must exceed	518
the principal value of the overnight written repurchase agreement	519
by at least two per cent. A written repurchase agreement must	520
exceed the principal value of the overnight written repurchase	521
agreement, by at least two per cent. A written repurchase	522
agreement shall not exceed thirty days, and the market value of	523
securities subject to a written repurchase agreement must exceed	524
the principal value of the written repurchase agreement by at	525
least two per cent and be marked to market daily. All securities	526
purchased pursuant to this division shall be delivered into the	527
custody of the investing authority or the qualified custodian of	528
the investing authority or an agent designated by the investing	529
authority. A written repurchase agreement with an eligible	530
securities dealer shall be transacted on a delivery versus payment	531
basis. The agreement shall contain the requirement that for each	532
transaction pursuant to the agreement the participating	533
institution shall provide all of the following information:	534

(1) The par value of the securities;

535

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

536

(3) A numerical identifier generally accepted in the	537
securities industry that designates the securities.	538

No investing authority shall enter into a written repurchase	539
agreement under the terms of which the investing authority agrees	540
to sell securities owned by the county to a purchaser and agrees	541
with that purchaser to unconditionally repurchase those	542
securities.	543

(E) No investing authority shall make an investment under	544
this section, unless the investing authority, at the time of	545
making the investment, reasonably expects that the investment can	546
be held until its maturity. The investing authority's written	547
investment policy shall specify the conditions under which an	548
investment may be redeemed or sold prior to maturity.	549

(F) No investing authority shall pay a county's inactive	550
moneys or moneys of a county public library and local government	551
support fund into a fund established by another subdivision,	552
treasurer, governing board, or investing authority, if that fund	553
was established by the subdivision, treasurer, governing board, or	554
investing authority for the purpose of investing or depositing the	555
public moneys of other subdivisions. This division does not apply	556
to the payment of public moneys into either of the following:	557

(1) The Ohio subdivision's fund pursuant to division (A)(6)	558
of this section;	559

(2) A fund created solely for the purpose of acquiring,	560
constructing, owning, leasing, or operating municipal utilities	561
pursuant to the authority provided under section 715.02 of the	562
Revised Code or Section 4 of Article XVIII, Ohio Constitution.	563

For purposes of division (F) of this section, "subdivision"	564
includes a county.	565

(G) The use of leverage, in which the county uses its current	566
investment assets as collateral for the purpose of purchasing	567
other assets, is prohibited. The issuance of taxable notes for the	568
purpose of arbitrage is prohibited. Contracting to sell securities	569
not owned by the county, for the purpose of purchasing such	570
securities on the speculation that bond prices will decline, is	571
prohibited.	572

(H) Any securities, certificates of deposit, deposit	573
accounts, or any other documents evidencing deposits or	574
investments made under authority of this section shall be issued	575
in the name of the county with the county treasurer or investing	576
authority as the designated payee. If any such deposits or	577
investments are registrable either as to principal or interest, or	578
both, they shall be registered in the name of the treasurer.	579

(I) The investing authority shall be responsible for the	580
safekeeping of all documents evidencing a deposit or investment	581
acquired under this section, including, but not limited to,	582
safekeeping receipts evidencing securities deposited with a	583
qualified trustee, as provided in section 135.37 of the Revised	584
Code, and documents confirming the purchase of securities under	585
any repurchase agreement under this section shall be deposited	586
with a qualified trustee, provided, however, that the qualified	587
trustee shall be required to report to the investing authority,	588
auditor of state, or an authorized outside auditor at any time	589
upon request as to the identity, market value, and location of the	590
document evidencing each security, and that if the participating	591
institution is a designated depository of the county for the	592
current period of designation, the securities that are the subject	593
of the repurchase agreement may be delivered to the treasurer or	594
held in trust by the participating institution on behalf of the	595
investing authority.	596

Upon the expiration of the term of office of an investing	597
authority or in the event of a vacancy in the office for any	598
reason, the officer or the officer's legal representative shall	599
transfer and deliver to the officer's successor all documents	600
mentioned in this division for which the officer has been	601
responsible for safekeeping. For all such documents transferred	602
and delivered, the officer shall be credited with, and the	603
officer's successor shall be charged with, the amount of moneys	604
evidenced by such documents.	605

(J)(1) All investments, except for investments in securities	606
described in divisions (A)(5) and (6) of this section, shall be	607
made only through a member of the national association of	608
securities dealers, through a bank, savings bank, or savings and	609
loan association regulated by the superintendent of financial	610
institutions, or through an institution regulated by the	611
comptroller of the currency, federal deposit insurance	612
corporation, or board of governors of the federal reserve system.	613

(2) Payment for investments shall be made only upon the	614
delivery of securities representing such investments to the	615
treasurer, investing authority, or qualified trustee. If the	616
securities transferred are not represented by a certificate,	617
payment shall be made only upon receipt of confirmation of	618
transfer from the custodian by the treasurer, governing board, or	619
qualified trustee.	620

(K)(1) Except as otherwise provided in division (K)(2) of	621
this section, no investing authority shall make an investment or	622
deposit under this section, unless there is on file with the	623
auditor of state a written investment policy approved by the	624
investing authority. The policy shall require that all entities	625
conducting investment business with the investing authority shall	626
sign the investment policy of that investing authority. All	627
brokers, dealers, and financial institutions, described in	628
division (J)(1) of this section, initiating transactions with the	629
investing authority by giving advice or making investment	630
recommendations shall sign the investing authority's investment	631
policy thereby acknowledging their agreement to abide by the	632
policy's contents. All brokers, dealers, and financial	633
institutions, described in division (J)(1) of this section,	634
executing transactions initiated by the investing authority,	635
having read the policy's contents, shall sign the investment	636
policy thereby acknowledging their comprehension and receipt.	637

(2) If a written investment policy described in division	638
(K)(1) of this section is not filed on behalf of the county with	639
the auditor of state, the investing authority of that county shall	640
invest the county's inactive moneys and moneys of the county	641
public library and local government support fund only in time	642
certificates of deposits or savings or deposit accounts pursuant	643
to division (A)(3) of this section, no-load money market mutual	644
funds pursuant to division (A)(5) of this section, or the Ohio	645
subdivision's fund pursuant to division (A)(6) of this section.	646

(L)(1) The investing authority shall establish and maintain	647
an inventory of all obligations and securities acquired by the	648
investing authority pursuant to this section. The inventory shall	649
include a description of each obligation or security, including	650
type, cost, par value, maturity date, settlement date, and any	651
coupon rate.	652

(2) The investing authority shall also keep a complete record	653
of all purchases and sales of the obligations and securities made	654
pursuant to this section.	655

(3) The investing authority shall maintain a monthly	656
portfolio report and issue a copy of the monthly portfolio report	657
describing such investments to the county investment advisory	658
committee, detailing the current inventory of all obligations and	659
securities, all transactions during the month that affected the	660
inventory, any income received from the obligations and	661
securities, and any investment expenses paid, and stating the	662
names of any persons effecting transactions on behalf of the	663
investing authority.	664

(4) The monthly portfolio report shall be a public record and	665
available for inspection under section 149.43 of the Revised Code.	666

(5) The inventory and the monthly portfolio report shall be	667
filed with the board of county commissioners.	668

(M) An investing authority may enter into a written	669
investment or deposit agreement that includes a provision under	670
which the parties agree to submit to nonbinding arbitration to	671
settle any controversy that may arise out of the agreement,	672
including any controversy pertaining to losses of public moneys	673
resulting from investment or deposit. The arbitration provision	674
shall be set forth entirely in the agreement, and the agreement	675
shall include a conspicuous notice to the parties that any party	676
to the arbitration may apply to the court of common pleas of the	677
county in which the arbitration was held for an order to vacate,	678
modify, or correct the award. Any such party may also apply to the	679
court for an order to change venue to a court of common pleas	680
located more than one hundred miles from the county in which the	681
investing authority is located.	682

For purposes of this division, "investment or deposit	683
agreement" means any agreement between an investing authority and	684
a person, under which agreement the person agrees to invest,	685
deposit, or otherwise manage, on behalf of the investing	686
authority, a county's inactive moneys or moneys in a county public	687
library and local government support fund, or agrees to provide	688
investment advice to the investing authority.	689

(N) An investment held in the county portfolio on September	690
27, 1996, that was a legal investment under the law as it existed	691
before September 27, 1996, may be held until maturity, or if the	692
investment does not have a maturity date the investment may be	693
held until five years from September 27, 1996, regardless of	694
whether the investment would qualify as a legal investment under	695
the terms of this section as amended.	696

Sec. 135.352.  The investment authority shall invest all	697
moneys in the county public library and local government support	698
fund that are not distributed due to an appeal of the budget	699
commission's allocation of such fund. Interest earned on such	700
investments shall be credited to the fund and distributed in	701
accordance with section 5747.48 of the Revised Code.	702

Sec. 149.411.  There is hereby created in each county free	703
public library, municipal free public library, township free	704
public library, school district free public library as described	705
in section 3375.15 of the Revised Code, county library district,	706
and regional library district a library records commission	707
composed of the members and the clerkfiscal officer of the board	708
of library trustees of the appropriate public library or library	709
district. The commission shall meet at least once every twelve	710
months.	711

The functions of the commission shall be to review	712
applications for one-time disposal of obsolete records and	713
schedules of records retention and disposition submitted by any	714
employee of the library. The commission may dispose of records	715
pursuant to the procedure outlined in this section. The commission	716
at any time may review any schedule it has previously approved and	717
for good cause shown may revise that schedule.	718

When the appropriate library records commission has approved	719
any library application for one-time disposal of obsolete records	720
or any schedule of records retention and disposition, the	721
commission shall send that application or schedule to the Ohio	722
historical society for its review. The Ohio historical society	723
shall review the application or schedule within a period of not	724
more than sixty days after its receipt of it. Upon completion of	725
its review, the Ohio historical society shall forward the	726
application for one-time disposal of obsolete records or the	727
schedule of records retention and disposition to the auditor of	728
state for the auditor's approval or disapproval. The auditor shall	729
approve or disapprove the application or schedule within a period	730
of not more than sixty days after receipt of it. Before public	731
records are to be disposed of, the commission shall inform the	732
Ohio historical society of the disposal through the submission of	733
a certificate of records disposal and shall give the society the	734
opportunity for a period of fifteen business days to select for	735
its custody those public records that it considers to be of	736
continuing historical value. The Ohio historical society may not	737
review or select for its custody any records pursuant to section	738
149.432 of the Revised Code.	739

Sec. 321.08.  The county treasurer shall enter on histhe	740
treasurer's account each day the money received for advance	741
payments of taxes and taxes charged on the general and special	742
duplicates of the current year in the following manner:	743

(A) Collections of estate tax to be credited to the	744
"undivided estate tax fund;"	745

(B) Collections of classified property taxes, including	746
interest and penalties thereon, shall be credited to the county	747
public library and local government support fund and distributed	748
in accordance with section 5747.48 of the Revised Code;	749

(C) Collections of other taxes and assessments of whatever	750
kind to be credited to the undivided general tax fund.	751

Sec. 3375.05.  The board of trustees of any public library	752
receiving money from a county's public library and local	753
government support fund that desires to render public library	754
service by means of branches, library stations, or traveling	755
library service to the inhabitants of any school district, other	756
than a school district situated within the territorial boundaries	757
of the subdivision or district over which said board has	758
jurisdiction of free public library service, may make application	759
to the state library board, upon forms provided by said board, for	760
the establishment of such service. Said application shall set	761
forth the total number of people being served by said library on	762
the date of said application; an inventory of the books owned by	763
said library; the number of branches, library stations, and	764
traveling library service maintained by said library on the date	765
of said application; the number and classification of the	766
employees of said library and such other information as the state	767
library board deems pertinent. Such application shall be	768
accompanied by a financial statement of the library making the	769
application covering the two fiscal years next preceding the date	770
of said application. Upon receipt of said application by the state	771
library board, the state librarian, or an employee of the state	772
library board designated by such librarian, shall visit the	773
library making the application for the purpose of determining	774
whether or not the establishment of branches, library stations, or	775
traveling library service as requested in said application will	776
promote better library service in the district covered by said	777
application. Upon the completion of such inspection, the	778
librarian, or the person designated by the librarian to make such	779
inspection, shall prepare a written report setting forth histhe	780
librarian's or designee's recommendations pertaining to the	781
establishment of the branches, stations, or traveling library	782
service as set forth in the application. Such report shall be	783
submitted to the state library board within ninety days after the	784
receipt of such application by the state library board. Within	785
thirty days after such report has been filed with the state	786
library board, said board shall either approve or disapprove, in	787
whole or in part, the establishment of branches, library stations,	788
or traveling library service as requested in said application. The	789
decision of the state library board shall be final. Within ten	790
days after final action has been taken by the state library board,	791
upon such application, the librarian shall notify in writing the	792
board of trustees of the public library making such application of	793
the decision of the state library board.	794

The state library board may withdraw its approval of library	795
service rendered by any library to the inhabitants of a school	796
district other than the school district in which the main library	797
of such library is located. At least thirty days before the	798
approval of such service may be withdrawn, the state library board	799
shall give written notice to the board of trustees of the library	800
rendering the service and the board of education of the school	801
district to which such service is being rendered. Such notice	802
shall set forth the reasons for the withdrawal of the approval of	803
such service. If the board of trustees of the library rendering	804
such service, or the board of education of a school district to	805
which such service is being rendered, objects to the withdrawal of	806
such approval it may, within twenty days of the receipt of such	807
notice, request, in writing, the state library board to hold a	808
hearing for the purpose of hearing protests to the withdrawal of	809
such approval. Upon the receipt of such request, the state library	810
board shall set the time and place of such hearing which shall be	811
held within the territorial boundaries of the school district	812
being served by the branch, station, or traveling library service	813
whose continued operation is in question. Such hearing shall be	814
held not less than thirty days after the receipt by the state	815
library board of the request for such hearing. The state library	816
board shall take no action on the withdrawal of approval of such	817
service until after the holding of such hearing. The decision of	818
the state library board shall be final.	819

Sec. 3375.121.  (A) In any municipal corporation, not located	820
in a county library district, which has a population of not less	821
than twenty-five thousand, and within which there is not located a	822
main library of a township, municipal, school district,	823
association, or county free public library, a library district may	824
be created by a resolution adopted by the legislative authority of	825
that municipal corporation. No such resolution shall be adopted	826
after one year from June 20, 1977. Upon the adoption of such a	827
resolution, any branches of an existing library that are located	828
in that municipal corporation shall become the property of the	829
municipal library district created.	830

The municipal corporation and the board of trustees of the	831
public library maintaining any existing branches in that municipal	832
corporation shall forthwith take appropriate action transferring	833
all title and interest in all real and personal property located	834
in that municipal corporation in the name of the library district	835
maintaining those branches in that municipal corporation to the	836
municipal corporation adopting the appropriate resolution. Upon	837
transfer of all title and interest in that property, the branches	838
shall become a part of, and be operated by, the board of library	839
trustees appointed by the mayor.	840

(B) In any municipal corporation that has a population of	841
less than twenty-five thousand and that has not less than one	842
hundred thousand dollars available from a bequest for the	843
establishment of a municipal library, the legislative authority of	844
that municipal corporation may adopt, within one year after June	845
20, 1977, a resolution creating a library district. Upon the	846
establishment of any such library district, the board of trustees	847
of any library operating a branch library in that municipal	848
corporation shall not be required to transfer any property to the	849
newly established library.	850

(C) The board of library trustees of any library district	851
created under this section shall be composed of six members. Those	852
trustees shall be appointed by the mayor, to serve without	853
compensation, for a term of four years. In the first instance,	854
three of those trustees shall be appointed for a term of two	855
years, and three of them shall be appointed for a term of four	856
years. Vacancies shall be filled by like appointment for the	857
unexpired term. A library district created under this section	858
shall be governed in accordance with and exercise the authority	859
provided for in sections 3375.32 to 3375.41 of the Revised Code.	860

Notwithstanding any contrary provision of section 3.24 of the	861
Revised Code, the president of a board of township trustees may	862
administer the oath of office to a person or persons representing	863
the township on the board of library trustees of any library	864
district created under this section, even if the geographical	865
limits of the library district do not fall within the geographical	866
limits of the township.	867

(D) Any library district created under this section is	868
eligible to participate in the proceeds of the county public	869
library and local government support fund in accordance with	870
section 5705.28 of the Revised Code.	871

(E) A municipal corporation may establish and operate a free	872
public library regardless of whether the municipal corporation is	873
located in a county library district or school library district,	874
if all of the following conditions are met:	875

(1) The facility in which the library is principally located	876
is transferred to the municipal corporation from the county	877
library district or school library district in which it is located	878
prior to January 1, 1996.	879

(2) The population of the municipal corporation is less than	880
five hundred when the library is transferred from the county	881
library district or school library district to the municipal	882
corporation.	883

(3) The municipal corporation does not establish a municipal	884
library district under this section.	885

(4) The library does not receive any proceeds from the county	886
public library and local government support fund under section	887
5747.48 of the Revised Code.	888

Sec. 3375.32.  Each board of library trustees appointed	889
pursuant to sections 3375.06, 3375.10, 3375.12, 3375.15, 3375.22	890
and 3375.30, of the Revised Code shall meet in January of each	891
year and organize by selecting from its membership a president, a	892
vice-president, and a secretary who shall serve for a term of one	893
year. At the same meeting each board shall elect and fix the	894
compensation of a clerkfiscal officer, who may be a member of the	895
board, and who shall serve for a term of one year. The clerk	896
fiscal officer, before entering upon hisofficial duties, shall	897
execute a bond in an amount and with surety to be approved by the	898
board, payable to the board, and conditioned for the faithful	899
performance of the official duties required of himthe fiscal	900
officer.	901

Sec. 3375.35.  Each board of library trustees appointed	902
pursuant to sections 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,	903
and 3375.30 of the Revised Code shall, in the exercise of the	904
powers conferred upon it, be governed by this section. For the	905
purpose of transacting any business a quorum is a majority of the	906
full membership of the board. The purchase of any real property	907
requires a two-thirds vote of the full membership of the board	908
making such purchase. All conveyances of real property shall be	909
executed by the president and the secretary of the board making	910
such conveyance. NoExcept as provided in section 3375.351 of the	911
Revised Code, no moneys credited to a free public library shall be	912
paid out except on a check signed by the clerkfiscal officer of	913
the board having jurisdiction over said moneys and the president,	914
vice-president, or secretary of said board. Each board of library	915
trustees shall, at the end of each fiscal year, transmit on forms	916
provided by the state library board to the state librarian and	917
officer or board which appointed said board of library trustees a	918
report of the activities of said board of library trustees during	919
said year. Such report shall include a complete financial	920
statement showing the receipts and expenditures in detail of all	921
library funds for the entire fiscal year made by such board of	922
library trustees. No member of a board of library trustees shall	923
have any pecuniary interest in any contract entered into by such	924
board.	925

Sec. 3375.351. The fiscal officer of each board of library	926
trustees appointed under section 3375.06, 3375.10, 3375.12,	927
3375.15, 3375.22, or 3375.30 of the Revised Code may pay the	928
compensation of each employee of the library under the board's	929
jurisdiction by direct deposit, as defined in section 131.01 of	930
the Revised Code. If direct deposit is chosen as the desired form	931
of compensation by the board of library trustees for its	932
employees, each employee shall provide to the fiscal officer a	933
written authorization for payment by direct deposit. The	934
authorization shall include the designation of a financial	935
institution equipped to accept direct deposits and the number of	936
the account into which the deposit is to be made. The	937
authorization shall remain in effect until withdrawn in writing by	938
the employee or until dishonored by the financial institution.	939

Sec. 3375.36.  The clerkfiscal officer of the board of	940
library trustees of a free public library shall be the treasurer	941
of the library funds. All moneys received by such clerkthe fiscal	942
officer for library purposes shall be immediately placed by him	943
the fiscal officer in a depository designated by the board. Such	944
clerkThe fiscal officer shall keep an account of the funds	945
credited to the board. Such clerkThe fiscal officer shall render	946
a statement to the board monthly showing the revenues and receipts	947
from whatever sources derived, the disbursements and the purposes	948
for such disbursements, and the assets and liabilities of the	949
board. At the end of each fiscal year the clerkfiscal officer	950
shall submit to the board a complete financial statement showing	951
the receipts and expenditures in detail for the entire fiscal	952
year. The board of library trustees of a free public library may	953
appoint a deputy clerkfiscal officer, for a term of one year, and	954
may authorize such deputy to receive and disburse library funds.	955
Such deputy, before entering upon hisofficial duties, shall	956
execute a bond in an amount and with surety to be approved by the	957
board, payable to the board, and conditioned for the faithful	958
performance of the official duties required of himthe deputy.	959

Sec. 3375.37.  Before giving the clerkfiscal officer of a	960
board of library trustees of a free public library a warrant for	961
funds due such board, the county auditor shall require the clerk	962
fiscal officer to file with himthe auditor a statement showing	963
the amount of funds on hand, available for expenditure by the	964
board, according to the books of the clerkfiscal officer and the	965
books of the depository designated by the board. Such statement	966
shall indicate that the clerk'sfiscal officer's books are in	967
exact balance with the depository accounts and shall be certified	968
to by the clerkfiscal officer and proper officer of the	969
depository.	970

Sec. 3375.38.  All the duties required of the county auditor,	971
county treasurer, or other officer or person relating to the	972
moneys to the credit of or to be credited to a board of library	973
trustees of a free public library shall be complied with by	974
dealing with the clerkfiscal officer of such board.	975

Sec. 3375.39.  At the expiration of the term of a clerk	976
fiscal officer of a board of library trustees of a free public	977
library or before such board approves the surety of any clerk	978
fiscal officer, such board shall require the clerkfiscal officer	979
to produce all money, bonds, or other securities in histhe fiscal	980
officer's hands, which shall then be counted by the board or a	981
committee of the board, or by a representative of the auditor of	982
state. A certificate setting forth the exact amount of such money,	983
bonds, or other securities and signed by the representatives	984
making such count shall be entered upon the records of the board	985
and shall be prima-facie evidence that the amount stated in such	986
certificate is actually in the treasury at that date.	987

Sec. 3375.40.  Each board of library trustees appointed	988
pursuant to section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,	989
or 3375.30 of the Revised Code may do the following:	990

(A) Hold title to and have the custody of all real and	991
personal property of the free public library under its	992
jurisdiction;	993

(B) Expend for library purposes, and in the exercise of the	994
power enumerated in this section, all moneys, whether derived from	995
the county public library and local government support fund or	996
otherwise, credited to the free public library under its	997
jurisdiction and generally do all things it considers necessary	998
for the establishment, maintenance, and improvement of the free	999
public library under its jurisdiction;	1000

(C) Purchase, lease, construct, remodel, renovate, or	1001
otherwise improve, equip, and furnish buildings or parts of	1002
buildings and other real property, and purchase, lease, or	1003
otherwise acquire motor vehicles and other personal property,	1004
necessary for the proper maintenance and operation of the free	1005
public library under its jurisdiction, and pay their costs in	1006
installments or otherwise. Financing of these costs may be	1007
provided through the issuance of notes, through an installment	1008
sale, or through a lease-purchase agreement. Any such notes shall	1009
be issued pursuant to section 3375.404 of the Revised Code.	1010

(D) Purchase, lease, lease with an option to purchase, or	1011
erect buildings or parts of buildings to be used as main	1012
libraries, branch libraries, or library stations pursuant to	1013
section 3375.41 of the Revised Code;	1014

(E) Establish and maintain a main library, branches, library	1015
stations, and traveling library service within the territorial	1016
boundaries of the political subdivision or district over which it	1017
has jurisdiction of free public library service;	1018

(F) Except as otherwise provided in this division, establish	1019
and maintain branches, library stations, and traveling library	1020
service in any school district, outside the territorial boundaries	1021
of the political subdivision or district over which it has	1022
jurisdiction of free public library service, upon application to	1023
and approval of the state library board, pursuant to section	1024
3375.05 of the Revised Code. The board of library trustees of any	1025
free public library maintaining branches, stations, or traveling	1026
library service, outside the territorial boundaries of the	1027
political subdivision or district over which it has jurisdiction	1028
of free public library service, on September 4, 1947, may continue	1029
to maintain and operate those branches, those stations, and that	1030
traveling library service without the approval of the state	1031
library board.	1032

(G) Appoint and fix the compensation of all of the employees	1033
of the free public library under its jurisdiction, pay the	1034
reasonable cost of tuition for any of its employees who enroll in	1035
a course of study the board considers essential to the duties of	1036
the employee or to the improvement of the employee's performance,	1037
and reimburse applicants for employment for any reasonable	1038
expenses they incur by appearing for a personal interview;	1039

(H) Make and publish rules for the proper operation and	1040
management of the free public library and facilities under its	1041
jurisdiction, including rules pertaining to the provision of	1042
library services to individuals, corporations, or institutions	1043
that are not inhabitants of the county;	1044

(I) Assess uniform fees for the provision of services to	1045
patrons of the library, but no fee shall be assessed for the	1046
circulation of printed materials held by the library except for	1047
the assessment of fines for materials not returned in accordance	1048
with the board's rules;	1049

(J) Establish and maintain a museum in connection with and as	1050
an adjunct to the free public library under its jurisdiction;	1051

(K) By the adoption of a resolution, accept any bequest,	1052
gift, or endowment upon the conditions connected with the bequest,	1053
gift, or endowment. No such bequest, gift, or endowment shall be	1054
accepted by the board if its conditions remove any portion of the	1055
free public library under the board's jurisdiction from the	1056
control of the board or if the conditions, in any manner, limit	1057
the free use of the library or any part of it by the residents of	1058
the counties in which the library is located.	1059

(L) At the end of any fiscal year, by a two-thirds vote of	1060
its full membership, set aside any unencumbered surplus remaining	1061
in the general fund of the free public library under its	1062
jurisdiction for any purpose, including creating or increasing a	1063
special building and repair fund, or for operating the library or	1064
acquiring equipment and supplies;	1065

(M) Procure and pay all or part of the cost of group term	1066
life, hospitalization, surgical, major medical, disability	1067
benefit, dental care, eye care, hearing aids, or prescription drug	1068
insurance or coverage, or a combination of any of those types of	1069
insurance or coverage, whether issued by an insurance company or a	1070
health insuring corporation duly licensed by the state, covering	1071
its employees, and, in the case of group term life,	1072
hospitalization, surgical, major medical, dental care, eye care,	1073
hearing aids, or prescription drug insurance or coverage, also	1074
covering the dependents and spouses of its employees, and, in the	1075
case of disability benefits, also covering the spouses of its	1076
employees.	1077

(N) Pay reasonable dues and expenses for the free public	1078
library and library trustees in library associations.	1079

Any instrument by which real property is acquired pursuant to	1080
this section shall identify the agency of the state that has the	1081
use and benefit of the real property as specified in section	1082
5301.012 of the Revised Code.	1083

Sec. 3375.404.  (A) As used in this chapter:

1084

(1) "Anticipation notes" means notes issued in anticipation	1085
of the library fund library facilities notes authorized by this	1086
section.	1087

(2) "Authorizing proceedings" means the resolution,	1088
legislation, trust agreement, certification and other agreements,	1089
instruments, and documents, as amended and supplemented,	1090
authorizing, or providing for the security or sale or award of,	1091
notes, and includes the provisions set forth or incorporated in	1092
those notes and proceedings.	1093

(3) "Board" or "board of library trustees" means the board of	1094
library trustees appointed pursuant to sections 3375.06, 3375.10,	1095
3375.12, 3375.15, 3375.22, and 3375.30 of the Revised Code.	1096

(4) "Library fund" means the public library and local	1097
government support fund provided for in Chapter 5747. of the	1098
Revised Code or any successor to that fund.	1099

(5) "Note service charges" means principal, including any	1100
mandatory sinking fund or redemption requirements for retirement	1101
of notes, interest, and any redemption premium payable on notes.	1102

(6) "Notes" means the library fund library facilities notes	1103
authorized by this section, including anticipation notes.	1104

(7) "Public library" means any of the libraries provided for	1105
in sections 3375.06, 3375.10, 3375.12, 3375.15, 3375.22, and	1106
3375.30 of the Revised Code.	1107

(8) "Refunding notes" means notes issued to provide for the	1108
refunding of the notes, or of obligations issued prior to the	1109
effective date of this section, collectively referred to in this	1110
section as refunded obligations.	1111

(B) A board of library trustees of a public library that	1112
receives an allocation of the library fund pursuant to section	1113
5705.32 and Chapter 5747. of the Revised Code may anticipate its	1114
portion of the proceeds of the library fund distribution and issue	1115
library fund library facilities notes of the public library in the	1116
principal amount necessary to pay the costs of financing the	1117
facilities or other property referred to in division (C) of	1118
section 3375.40 of the Revised Code, or to refund any refunded	1119
obligations, provided that the board projects annual note service	1120
charges on the notes, or on the notes being anticipated by	1121
anticipation notes, to be capable of being paid from the annual	1122
library fund receipts of the public library. The maximum aggregate	1123
amount of notes that may be outstanding at any time in accordance	1124
with their terms upon issuance of the new notes shall not exceed	1125
an amount which requires or is estimated to require payments from	1126
library fund receipts of note service charges on the notes, or, in	1127
the case of anticipation notes, projected note service charges on	1128
the notes anticipated, in any calendar year in an amount exceeding	1129
thirty per cent of the average of the library fund receipts of the	1130
public library for the two calendar years prior to the year in	1131
which the notes are issued. A board may at any time issue renewal	1132
anticipation notes, issue notes to pay renewal anticipation notes,	1133
and, if it considers refunding expedient, issue refunding notes	1134
whether the refunded obligations have or have not matured. The	1135
refunding notes shall be sold and the proceeds needed for such	1136
purpose applied in the manner provided in the authorizing	1137
proceedings of the board.	1138

(C) Every issue of notes outstanding in accordance with their	1139
terms shall be payable out of the money received by the public	1140
library from the library fund or proceeds of notes, renewal	1141
anticipation notes, or refunding notes which may be pledged for	1142
such payment in the authorizing proceedings. The pledge shall be	1143
valid and binding from the time the pledge is made, and the	1144
library fund receipts and proceeds so pledged and thereafter	1145
received by the board shall immediately be subject to the lien of	1146
that pledge without any physical delivery of the library fund	1147
receipts or proceeds or further act. The lien of any pledge is	1148
valid and binding as against all parties having claims of any kind	1149
in tort, contract, or otherwise against the board, whether or not	1150
such parties have notice of the lien. Neither the resolution nor	1151
any trust agreement by which a pledge is created or further	1152
evidenced need be filed or recorded except in the board's records.	1153

(D) Notes issued under this section do not constitute a debt,	1154
or a pledge of the faith and credit, of the state, the public	1155
library, or any other political subdivision of the state, and the	1156
holders or owners of the notes have no right to have taxes levied	1157
by the general assembly or by the taxing authority of any	1158
political subdivision of the state, including the board of the	1159
public library, for the payment of note service charges. Notes are	1160
payable solely from the funds pledged for their payment as	1161
authorized by this section. All notes shall contain on their face	1162
a statement to the effect that the notes, as to note service	1163
charges, are not debts or obligations of the state and are not	1164
debts of any political subdivision of the state, but are payable	1165
solely from the funds pledged for their payment. The utilization	1166
and pledge of the library fund receipts and proceeds of notes,	1167
renewal anticipation notes, or refunding notes for the payment of	1168
note service charges is determined by the general assembly to	1169
create a special obligation which is not a bonded indebtedness	1170
subject to Section 11 of Article XII, Ohio Constitution, or,	1171
alternatively, to satisfy any applicable requirement of that	1172
Section 11.	1173

(E) The notes shall bear such date or dates, shall be	1174
executed in the manner, and shall mature at such time or times, in	1175
the case of any anticipation notes not exceeding ten years from	1176
the date of issue of the original anticipation notes and in the	1177
case of any notes that are not anticipation notes or of any	1178
refunding notes, not exceeding twenty-five years from the date of	1179
the original issue of notes, or other obligations for the purpose,	1180
all as the authorizing proceedings may provide. The notes shall	1181
bear interest at such rates, or at variable rate or rates changing	1182
from time to time, in accordance with provisions provided in the	1183
authorizing proceedings, be in such denominations and form, either	1184
coupon or registered, carry such registration privileges, be	1185
payable in such medium of payment and at such place or places, and	1186
be subject to such terms of redemption, as the board may authorize	1187
or provide. The notes may be sold at public or private sale, and	1188
at, or at not less than, the price or prices as the board	1189
determines. If any officer whose signature or a facsimile of whose	1190
signature appears on any notes or coupons ceases to be such	1191
officer before delivery of the notes or anticipation notes, the	1192
signature or facsimile shall nevertheless be sufficient for all	1193
purposes as if that officer had remained in office until delivery	1194
of the notes. Whether or not the notes are of such form and	1195
character as to be negotiable instruments under Title XIII of the	1196
Revised Code, the notes shall have all the qualities and incidents	1197
of negotiable instruments, subject only to any provisions for	1198
registration. Neither the members of the board nor any person	1199
executing the notes shall be liable personally on the notes or be	1200
subject to any personal liability or accountability by reason of	1201
their issuance.	1202

(F) Notwithstanding any other provision of this section,	1203
sections 9.98 to 9.983, 133.02, 133.70, and 5709.76, and division	1204
(A) of section 133.03 of the Revised Code apply to the notes.	1205
Notes issued under this section need not comply with any other law	1206
applicable to notes or bonds but the authorizing proceedings may	1207
provide that divisions (B) through (E) of section 133.25 of the	1208
Revised Code apply to the notes or anticipation notes.	1209

(G) Any authorizing proceedings may contain provisions,	1210
subject to any agreements with holders as may then exist, which	1211
shall be a part of the contract with the holders, as to the	1212
pledging of any or all of the board's anticipated library fund	1213
receipts to secure the payment of the notes; the use and	1214
disposition of the library fund receipts of the boards; the	1215
crediting of the proceeds of the sale of notes to and among the	1216
funds referred to or provided for in the authorizing proceedings;	1217
limitations on the purpose to which the proceeds of the notes may	1218
be applied and the pledging of portions of such proceeds to secure	1219
the payment of the notes or of anticipation notes; the agreement	1220
of the board to do all things necessary for the authorization,	1221
issuance, and sale of those notes anticipated in such amounts as	1222
may be necessary for the timely payment of note service charges on	1223
any anticipation notes; limitations on the issuance of additional	1224
notes; the terms upon which additional notes may be issued and	1225
secured; the refunding of refunded obligations; the procedure by	1226
which the terms of any contract with holders may be amended, and	1227
the manner in which any required consent to amend may be given;	1228
securing any notes by a trust agreement or other agreement which	1229
may provide for notes or refunding notes to be further secured by	1230
a mortgage on the property financed with the proceeds of the	1231
notes, anticipation notes, or refunded obligations refunded by	1232
refunding notes; and any other matters, of like or different	1233
character, that in any way affect the security or protection of	1234
the notes or anticipation notes.	1235

Sec. 3375.41.  When a board of library trustees appointed	1236
pursuant to section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,	1237
or 3375.30 of the Revised Code determines to construct, demolish,	1238
alter, repair, or reconstruct a library or make any improvements	1239
or repairs, the cost of which will exceed twenty-five thousand	1240
dollars, except in cases of urgent necessity or for the security	1241
and protection of library property, it shall proceed as follows:	1242

(A) The board shall advertise for a period of fourtwo weeks	1243
for sealed bids in some newspaper of general circulation in the	1244
district, and, if there are two such newspapers, the board shall	1245
advertise in both of them. If no newspaper has a general	1246
circulation in the district, the board shall post the	1247
advertisement in three public places in the district. The	1248
advertisement shall be entered in full by the clerkfiscal officer	1249
on the record of proceedings of the board.	1250

(B) The sealed bids shall be filed with the clerkfiscal	1251
officer by twelve noon of the last day stated in the	1252
advertisement.	1253

(C) The sealed bids shall be opened at the next meeting of	1254
the board, shall be publicly read by the clerkfiscal officer, and	1255
shall be entered in full on the records of the board; provided	1256
that the board, by resolution, may provide for the public opening	1257
and reading of the bids by the clerkfiscal officer, immediately	1258
after the time for their filing the has expired, at the usual	1259
place of meeting of the board, and for the tabulation of the bids	1260
and a report of the tabulation to the board at its next meeting.	1261

(D) Each sealed bid shall contain the name of every person	1262
interested in it and shall meet the requirements of section 153.54	1263
of the Revised Code.	1264

(E) When both labor and materials are embraced in the work	1265
bid for, the board may require that each be separately stated in	1266
the sealed bid, with their price of each, or may require that bids	1267
be submitted without that the separation.	1268

(F) None but the lowest responsible bid shall be accepted.	1269
The board may reject all the bids or accept any bid for both labor	1270
and material for the improvement or repair which is the lowest in	1271
the aggregate.	1272

(G) The contract shall be between the board and the bidders.	1273
The board shall pay the contract price for the work in cash at the	1274
times and in the amounts as provided by sections 153.12, 153.13,	1275
and 153.14 of the Revised Code.	1276

(H) When two or more bids are equal, in whole or in part, and	1277
are lower than any others, either may be accepted, but in no case	1278
shall the work be divided between these bidders.	1279

(I) When there is reason to believe there is collusion or	1280
combination among the bidders, the bids of those concerned in the	1281
collusion or combination shall be rejected.	1282

Sec. 3375.42.  The board of county commissioners of any	1283
county, the board of education of any school district, the	1284
legislative authority of any municipal corporation, or the board	1285
of township trustees of any township may contract with the board	1286
of library trustees of any public library, or with any private	1287
corporation or library association maintaining a free public	1288
library prior to September 4, 1947, situated within or without the	1289
taxing district, to furnish library service to all the inhabitants	1290
of said taxing district, notwithstanding the fact that such	1291
library is receiving proceeds from the county public library and	1292
local government support fund, and may levy a tax, or make an	1293
appropriation from its general fund or from federal funds, to be	1294
expended by such library in providing library service in said	1295
taxing district for any of the purposes specified in section	1296
3375.40 of the Revised Code. The taxing authority may require an	1297
annual report in writing from such board of library trustees,	1298
private corporation, or library association. When a tax for	1299
library purposes has been so levied, at each semiannual collection	1300
of such tax the county auditor shall certify the amount collected	1301
to the proper officer of the taxing district who shall forthwith	1302
draw hisa warrant for such amount on the treasurer of such	1303
district payable to the proper officer of such library.	1304

Sec. 3375.64.  (A) There is hereby established the Ohio	1305
public library information network, as an independent agency	1306
within the state library of Ohio, for the purpose of ensuring	1307
equity of access to electronic information for all residents of	1308
this state, subject to the restrictions described in division (C)	1309
of this section on access to materials or performances that may be	1310
obscene or harmful to juveniles. The network shall be governed by	1311
the board of trustees created under section 3375.65 of the Revised	1312
Code.	1313

(B)(1) Except as provided in division (B)(2) of this section,	1314
any board of library trustees appointed under section 1713.28,	1315
3375.06, 3375.10, 3375.12, 3375.15, 3375.22, 3375.30, or 3375.90	1316
of the Revised Code may participate in the network by providing	1317
notice in writing to the network board of trustees.	1318

(2) A board of library trustees participating in the network	1319
authorized under Section 323.10 of H.B. 119 of the 127th general	1320
assembly is a participant in the network established by division	1321
(A) of this section unless its participation is otherwise	1322
terminated.	1323

(C) A library board of trustees participating in the network	1324
established under division (A) of this section shall comply with	1325
any policies the network board of trustees may adopt. The network	1326
board shall adopt a policy that requires each participant to	1327
establish and enforce procedures designed to keep juveniles who	1328
use the participant's services from having access to materials or	1329
performances that may be obscene or harmful to juveniles and to	1330
keep persons who are not juveniles and who use the participant's	1331
services from having access to materials or performances that may	1332
be obscene. If a participant does not establish and enforce such	1333
procedures, the network board shall terminate the participant's	1334
participation in the network. As used in this division,	1335
"juveniles," "materials," "performances," "obscene," and "harmful	1336
to juveniles" have the same meanings as in section 2907.01 of the	1337
Revised Code.	1338

Sec. 3375.65.  (A) There is hereby created the Ohio public	1339
library information network board of trustees, which shall be the	1340
governing board of the Ohio public library information network.	1341
The board shall consist of all of the following members:	1342

(1) The state librarian, who shall serve as a nonvoting	1343
member;	1344

(2) The eleven members of the Ohio public library information	1345
network board authorized under Section 323.10 of H.B. 119 of the	1346
127th general assembly who are serving on such board on the	1347
effective date of this section. These continuing members shall	1348
serve staggered terms, with three terms expiring on June 30, 2008,	1349
four terms expiring on June 30, 2009, and four terms expiring on	1350
June 30, 2010. (At their first meeting after the effective date of	1351
this section, the voting members of the board shall draw lots to	1352
determine when their terms end.) Thereafter, terms of office for	1353
all voting members shall be three years, with each term ending on	1354
the same day of the same month as did the term that it succeeds.	1355
The state library board shall fill a vacancy among the voting	1356
members of the board by selecting an appointee from among the	1357
staff of public libraries and past and present members of boards	1358
of trustees of public libraries, based on the recommendations of	1359
the library community of this state. A member of the board may be	1360
reappointed, but no member shall serve more than two terms,	1361
provided that service for a partial term of one year or less shall	1362
not be counted toward the two-term limitation. A member appointed	1363
to fill a vacancy occurring prior to the expiration of the	1364
predecessor's term shall hold office for the remainder of that	1365
term. A member may continue in office subsequent to the expiration	1366
of the member's term until the member's successor takes office, or	1367
until a period of sixty days has elapsed, whichever occurs first.	1368

(B) Members of the board shall receive their actual and	1369
necessary expenses incurred in the performance of their duties as	1370
board members.	1371

(C) The board shall meet at least quarterly and hold such	1372
additional meetings as are necessary to carry out the board's	1373
duties under sections 3375.64, 3375.66, and 3375.67 of the Revised	1374
Code. Additional meetings may be called in accordance with bylaws	1375
adopted by the board.	1376

Sec. 3375.66.  (A) To fulfill the network purpose under	1377
section 3375.64 of the Revised Code, the board of trustees of the	1378
Ohio public library information network shall do all of the	1379
following:	1380

(1) Employ and fix the compensation of an executive director	1381
of the network and such other personnel as are necessary to carry	1382
out this section and sections 3375.64 and 3375.67 of the Revised	1383
Code. The board may designate positions in the unclassified civil	1384
service for which it may employ persons.	1385

(2) Develop plans of service and operation for the Ohio	1386
public library information network in consultation with the state	1387
library of Ohio;	1388

(3) Have exclusive control of the expenditure of all money	1389
held in the name of the network;	1390

(4) Adopt bylaws for the governance of the network and for	1391
calling and conducting the board's meetings;	1392

(5) Appoint the state library of Ohio as the board's fiscal	1393
agent. When so appointed, the state library shall serve as fiscal	1394
agent and shall provide all of the following services:	1395

(a) Prepare and process payroll and other personnel documents	1396
that the board approves;	1397

(b) Maintain ledgers of accounts and reports of account	1398
balances, and monitor budgets and allotment plans in consultation	1399
with the board;	1400

(c) Provide purchasing services to facilitate the purchase of	1401
property approved by the board;	1402

(d) Deposit revenues received on behalf of the board into the	1403
accounts maintained by the board;	1404

(e) Perform other routine support services that the state	1405
librarian or the state librarian's designee and the board or the	1406
board's designee consider appropriate to achieve efficiency.	1407

(B) The board of trustees may do any of the following:

1408

(1) Enter into contracts or agreements for the purposes of	1409
this section and section 3375.64 of the Revised Code;	1410

(2) Receive grants, payments, bequests, and gifts on behalf	1411
of the network;	1412

(3) Expend, for the network purpose under section 3375.64 of	1413
the Revised Code, and in the exercise of the powers enumerated in	1414
this section, all money received as grants, payments, gifts,	1415
bequests, or otherwise, and generally do all things the board	1416
determines necessary for the establishment, maintenance, and	1417
improvement of the network;	1418

(4) Purchase, lease, or otherwise acquire vehicles and other	1419
personal property for the maintenance and operation of the	1420
network;	1421

(5) Purchase, erect, lease, lease with an option to purchase,	1422
appropriate, or otherwise improve, equip, and furnish buildings or	1423
parts of buildings and other real property for use by the network;	1424

(6) Hold title to and have custody of property, both real	1425
and personal, of the network.	1426

Sec. 3375.67.  If the need for the Ohio public library	1427
information network ceases to exist, the network board of	1428
trustees, by a two-thirds vote of its members, may declare its	1429
intention to dissolve the network and file with the state library	1430
board a plan for effecting such dissolution.	1431

Sec. 3375.85.  An interstate library district lying partly	1432
within this state may claim and be entitled to receive state aid,	1433
other than aid from the public library and local government	1434
support fund, in support of any of its functions to the same	1435
extent and in the same manner as such functions are eligible for	1436
suportsupport when carried on by entities wholly within this	1437
state. For the purposes of computing and apportioning such state	1438
aid to an interstate library district, this state will consider	1439
that portion of the area which lies within this state as an	1440
independent entity for the performance of the aided function or	1441
functions and compute and apportion the aid accordingly. Any	1442
library association that was organized and operated prior to	1443
January 1, 1968, and which pursuant to the authority granted in	1444
section 3375.83 of the Revised Code, has become part of an	1445
interstate library district shall be considered a library	1446
association under section 5705.28 of the Revised Code and entitled	1447
to participate in the county public library and local government	1448
support fund and other public funds. Subject to any applicable	1449
laws of this state, such a district also may apply for and be	1450
entitled to receive any federal aid for which it may be eligible.	1451

Sec. 3375.91.  The board of trustees of each regional library	1452
system may:	1453

(A) Develop plans of service and operation for the regional	1454
library system and submit these to the state library board, and to	1455
each other granting authority if and when required by such	1456
authority;	1457

(B) Receive grants, payments, bequests, and gifts and have	1458
exclusive control of the expenditure of all moneys held in the	1459
name of the regional library system;	1460

(C) Expend for library purposes, and in the exercise of the	1461
powers enumerated in this section, all moneys whether received as	1462
grants, payments, gifts, bequests, or otherwise, and generally do	1463
all things it determines necessary for the establishment,	1464
maintenance, and improvement of the regional library system under	1465
its jurisdiction;	1466

(D) Make and publish such bylaws and rules as may be	1467
necessary for its operation and for the government of the regional	1468
library system;	1469

(E) Purchase or lease vehicles and other personal property	1470
for the operation of the regional library system;	1471

(F) Purchase, erect, lease, or lease with an option to	1472
purchase, appropriate buildings or parts of buildings for use of	1473
the regional library system;	1474

(G) Hold title to and have the custody of all property, both	1475
real and personal, of the regional library system;	1476

(H) Appoint and fix the compensation of a director and	1477
necessary assistants, who shall have the same employment status as	1478
employees of public libraries;	1479

(I) Elect and fix compensation of a clerkfiscal officer and	1480
a deputy clerkfiscal officer who shall serve for a term of one	1481
year;	1482

(J) Enter into contracts with the governing body of any	1483
participating library organized under sections 1713.28, 3375.06,	1484
3375.10, 3375.12, 3375.121, 3375.15, 3375.22, and 3375.30 of the	1485
Revised Code, the state library board, any granting authority, the	1486
board of county commissioners of any county, the board of	1487
education of any school district, the legislative authority of any	1488
municipal corporation, boards of township trustees, colleges,	1489
universities, or public or private agencies and corporations;	1490

(K) Accept an application from any other library desiring to	1491
become a participating library in accordance with the agreement	1492
for the formation of the system, either as originally submitted to	1493
and approved by the state library board, or as amended by and with	1494
the agreement of all the participating libraries and the approval	1495
of the state library board.	1496

Sec. 3375.92.  The clerkfiscal officer of the board of	1497
trustees of the regional library system is the treasurer of the	1498
organization's funds. Before entering upon their duties, the clerk	1499
fiscal officer and the deputy clerkfiscal officer shall execute a	1500
bond in an amount and with surety to be approved by the board, and	1501
conditioned for the faithful performance of the official duties	1502
required of them.	1503

All moneys received by the clerkfiscal officer shall be	1504
immediately placed by the clerkfiscal officer in a depository	1505
designated by the board. The clerkfiscal officer shall keep an	1506
account of the funds credited to the board.	1507

The clerkfiscal officer shall render a monthly statement to	1508
the board showing the revenues and receipts from whatever sources	1509
derived, the disbursements and the purposes for such	1510
disbursements, and the assets and liabilities of the board. At the	1511
end of each fiscal year the clerkfiscal officer shall submit to	1512
the board, to the state library board and, if requested, to any	1513
granting authority, a complete financial statement showing the	1514
receipts and expenditures in detail for the entire fiscal year.	1515
Such financial records shall be open to public inspection at all	1516
reasonable times.	1517

At the expiration of the term of the clerkfiscal officer or	1518
before the board of trustees approves the surety of any clerk	1519
fiscal officer, the board shall require the clerkfiscal officer	1520
to produce all moneys, bonds, or other securities in the clerk's	1521
fiscal officer's hands, which shall then be counted by the board	1522
or a committee of the board, or by a representative of the auditor	1523
of state. A certificate setting forth the exact amount of such	1524
money, bonds, or other securities and signed by the persons making	1525
such count shall be entered upon the records of the board and	1526
shall be prima-facie evidence that the amount stated in such	1527
certificate is actually in the treasury at that date.	1528

Sec. 5705.28.  (A) Except as provided in division (B)(1) or	1529
(2) of this section or in section 5705.281 of the Revised Code,	1530
the taxing authority of each subdivision or other taxing unit	1531
shall adopt a tax budget for the next succeeding fiscal year:	1532

(1) On or before the fifteenth day of January in the case of	1533
a school district;	1534

(2) On or before the fifteenth day of July in the case of all	1535
other subdivisions and taxing units.	1536

(B)(1) Before the first day of June in each year, the board	1537
of trustees of a school library district entitled to participate	1538
in any appropriation or revenue of a school district or to have a	1539
tax proposed by the board of education of a school district shall	1540
file with the board of education of the school district a tax	1541
budget for the ensuing fiscal year. On or before the fifteenth day	1542
of July in each year, the board of education of a school district	1543
to which a school library district tax budget was submitted under	1544
this division shall adopt such tax budget on behalf of the library	1545
district, but such budget shall not be part of the school	1546
district's tax budget.	1547

(2)(a) The taxing authority of a taxing unit that does not	1548
levy a tax is not required to adopt a tax budget pursuant to	1549
division (A) of this section. Instead, on or before the fifteenth	1550
day of July each year, such taxing authority shall adopt an	1551
operating budget for the taxing unit for the ensuing fiscal year.	1552
The operating budget shall include an estimate of receipts from	1553
all sources, a statement of all taxing unit expenses that are	1554
anticipated to occur, and the amount required for debt charges	1555
during the fiscal year. The operating budget is not required to be	1556
filed with the county auditor or the county budget commission.	1557

(b) Except for this section and sections 5705.36, 5705.38,	1558
5705.40, 5705.41, 5705.43, 5705.44, and 5705.45 of the Revised	1559
Code, a taxing unit that does not levy a tax is not a taxing unit	1560
for purposes of Chapter 5705. of the Revised Code. Documents	1561
prepared in accordance with such sections are not required to be	1562
filed with the county auditor or county budget commission.	1563

(c) The total appropriations from each fund of a taxing unit	1564
that does not levy a tax shall not exceed the total estimated	1565
revenue available for expenditures from the fund, and	1566
appropriations shall be made from each fund only for the purposes	1567
for which the fund is established.	1568

(C)(1) To assist in the preparation of the tax budget, the	1569
head of each department, board, commission, and district authority	1570
entitled to participate in any appropriation or revenue of a	1571
subdivision shall file with the taxing authority, or in the case	1572
of a municipal corporation, with its chief executive officer,	1573
before the forty-fifth day prior to the date on which the budget	1574
must be adopted, an estimate of contemplated revenue and	1575
expenditures for the ensuing fiscal year, in such form as is	1576
prescribed by the taxing authority of the subdivision or by the	1577
auditor of state. The taxing authority shall include in its budget	1578
of expenditures the full amounts requested by district	1579
authorities, not to exceed the amount authorized by law, if such	1580
authorities may fix the amount of revenue they are to receive from	1581
the subdivision. In a municipal corporation in which a special	1582
levy for a municipal university has been authorized to be levied	1583
in excess of the ten-mill limitation, or is required by the	1584
charter of the municipal corporation, the taxing authority shall	1585
include an amount not less than the estimated yield of such levy,	1586
if such amount is requested by the board of directors of the	1587
municipal university.	1588

(2) A county board of mental retardation and developmental	1589
disabilities may include within its estimate of contemplated	1590
revenue and expenditures a reserve balance account in the	1591
community mental retardation and developmental disabilities	1592
residential services fund. The account shall contain money that is	1593
not needed to pay for current expenses for residential services	1594
and supported living but will be needed to pay for expenses for	1595
such services in the future or may be needed for unanticipated	1596
emergency expenses. On the request of the county board of mental	1597
retardation and developmental disabilities, the board of county	1598
commissioners shall include such an account in its budget of	1599
expenditures and appropriate money to the account from residential	1600
service moneys for the county board.	1601

(D) The board of trustees of any public library desiring to	1602
participate in the distribution of the county public library and	1603
local government support fund shall adopt appropriate rules	1604
extending the benefits of the library service of such library to	1605
all the inhabitants of the county on equal terms, unless such	1606
library service is by law available to all such inhabitants, and	1607
shall certify a copy of such rules to the taxing authority with	1608
its estimate of contemplated revenue and expenditures. Where such	1609
rules have been so certified or where the adoption of such rules	1610
is not required, the taxing authority shall include in its budget	1611
of receipts such amounts as are specified by such board as	1612
contemplated revenue from the county public library and local	1613
government support fund, and in its budget of expenditures the	1614
full amounts requested therefrom by such board. No library	1615
association, incorporated or unincorporated, is entitled to	1616
participate in the proceeds of the county public library and local	1617
government support fund or other public funds unless such	1618
association both was organized and operating prior to January 1,	1619
1968, and participated in the distribution of the proceeds of the	1620
county public library fund prior to December 31, 2005.	1621

Sec. 5705.281. (A) Notwithstanding section 5705.28 of the	1622
Revised Code, the county budget commission, by an affirmative vote	1623
of a majority of the commission, including an affirmative vote by	1624
the county auditor, may waive the requirement that the taxing	1625
authority of a subdivision or other taxing unit adopt a tax budget	1626
as provided under section 5705.28 of the Revised Code, but shall	1627
require such a taxing authority to provide such information to the	1628
commission as may be required by the commission to perform its	1629
duties under this chapter, including dividing the rates of each of	1630
the subdivision's or taxing unit's tax levies as provided under	1631
section 5705.04 of the Revised Code.	1632

(B)(1) Notwithstanding divisions (B)(1) and (D) of section	1633
5705.28 of the Revised Code, in any county in which a single	1634
library receives all of the county public library and local	1635
government support fund or receives all of that portion of the	1636
fund that is distributed to libraries, the county budget	1637
commission, by an affirmative vote of a majority of the	1638
commission, including an affirmative vote by the county auditor,	1639
may waive any or all of the following requirements:	1640

(a) The requirement that the board of trustees of a school	1641
library district entitled to participate in any appropriation or	1642
revenue of a school district or to have a tax proposed by the	1643
board of education of a school district file with the board of	1644
education of the school district a tax budget, and the requirement	1645
that the board of education adopt the tax budget on behalf of the	1646
library district, as provided in division (B)(1) of section	1647
5705.28 of the Revised Code;	1648

(b) The requirement that the board of trustees of a public	1649
library desiring to participate in the distribution of the county	1650
public library and local government support fund certify to the	1651
taxing authority its estimate of contemplated revenue and	1652
expenditures, and the requirement that the taxing authority	1653
include in its budget of receipts and budget of expenditures the	1654
full amounts specified or requested by the board of trustees, as	1655
provided in division (D) of section 5705.28 of the Revised Code.	1656

(2) If a county budget commission waives the requirements	1657
described in division (B)(1)(a) or (b) of this section, the	1658
commission shall require the board of trustees of the school	1659
library district or the board of trustees of the public library	1660
desiring to participate in the distribution of the county public	1661
library and local government support fund to provide to the	1662
commission any information the commission may require from the	1663
board in order for the commission to perform its duties under this	1664
chapter.	1665

Sec. 5705.31.  The county auditor shall present to the county	1666
budget commission the annual tax budgets submitted under sections	1667
5705.01 to 5705.47 of the Revised Code, together with an estimate	1668
prepared by the auditor of the amount of any state levy, the rate	1669
of any school tax levy as previously determined, the tax	1670
commissioner's estimate of the amount to be received in the county	1671
public library and local government support fund, the tax rates	1672
provided under section 5705.281 of the Revised Code if adoption of	1673
the tax budget was waived under that section, and such other	1674
information as the commission requests or the tax commissioner	1675
prescribes. The budget commission shall examine such budget and	1676
ascertain the total amount proposed to be raised in the county for	1677
the purposes of each subdivision and other taxing units in the	1678
county.	1679

The commission shall ascertain that the following levies have	1680
been properly authorized and, if so authorized, shall approve them	1681
without modification:	1682

(A) All levies in excess of the ten-mill limitation;

1683

(B) All levies for debt charges not provided for by levies in	1684
excess of the ten-mill limitation, including levies necessary to	1685
pay notes issued for emergency purposes;	1686

(C) The levies prescribed by division (B) of sections 742.33	1687
and 742.34 of the Revised Code;	1688

(D) Except as otherwise provided in this division, a minimum	1689
levy within the ten-mill limitation for the current expense and	1690
debt service of each subdivision or taxing unit, which shall equal	1691
two-thirds of the average levy for current expenses and debt	1692
service allotted within the fifteen-mill limitation to such	1693
subdivision or taxing unit during the last five years the	1694
fifteen-mill limitation was in effect unless such subdivision or	1695
taxing unit requests an amount requiring a lower rate. Except as	1696
provided in section 5705.312 of the Revised Code, if the levies	1697
required in divisions (B) and (C) of this section for the	1698
subdivision or taxing unit equal or exceed the entire minimum levy	1699
of the subdivision as fixed, the minimum levies of the other	1700
subdivisions or taxing units shall be reduced by the commission to	1701
provide for the levies and an operating levy for the subdivision.	1702
Such additional levy shall be deducted from the minimum levies of	1703
each of the other subdivisions or taxing units, but the operating	1704
levy for a school district shall not be reduced below a figure	1705
equivalent to forty-five per cent of the millage available within	1706
the ten-mill limitation after all the levies in divisions (B) and	1707
(C) of this section have been provided for.	1708

If a municipal corporation and a township have entered into	1709
an annexation agreement under section 709.192 of the Revised Code	1710
in which they agree to reallocate their shares of the minimum	1711
levies established under this division and if that annexation	1712
agreement is submitted along with the annual tax budget of both	1713
the township and the municipal corporation, then, when determining	1714
the minimum levy under this division, the auditor shall allocate,	1715
to the extent possible, the minimum levy for that municipal	1716
corporation and township in accordance with their annexation	1717
agreement.	1718

(E) The levies prescribed by section 3709.29 of the Revised	1719
Code.	1720

Divisions (A) to (E) of this section are mandatory, and	1721
commissions shall be without discretion to reduce such minimum	1722
levies except as provided in such divisions.	1723

If any debt charge is omitted from the budget, the commission	1724
shall include it therein.	1725

Sec. 5705.32.  (A) The county budget commission shall adjust	1726
the estimated amounts required from the general property tax for	1727
each fund, as shown by the tax budgets or other information	1728
required to be provided under section 5705.281 of the Revised	1729
Code, so as to bring the tax levies required therefor within the	1730
limitations specified in sections 5705.01 to 5705.47 of the	1731
Revised Code, for such levies, but no levy shall be reduced below	1732
a minimum fixed by law. The commission may revise and adjust the	1733
estimate of balances and receipts from all sources for each fund	1734
and shall determine the total appropriations that may be made	1735
therefrom.	1736

(B) The commission shall fix the amount of the county public	1737
library and local government support fund to be distributed to	1738
each board of public library trustees that has qualified under	1739
section 5705.28 of the Revised Code for participation in the	1740
proceeds of such fund. The amount paid to all libraries in the	1741
county from such fund shall never be a smaller per cent of the	1742
fund than the average of the percentages of the county's	1743
classified taxes that were distributed to libraries in 1982, 1983,	1744
and 1984, as determined by the county auditor. The commission	1745
shall base the amount for distribution on the needs of such	1746
library for the construction of new library buildings, parts of	1747
buildings, improvements, operation, maintenance, or other	1748
expenses. In determining the needs of each library board of	1749
trustees, and in calculating the amount to be distributed to any	1750
library board of trustees on the basis of its needs, the	1751
commission shall make no reduction in its allocation from the fund	1752
on account of additional revenues realized by a library from	1753
increased taxes or service charges voted by its electorate, from	1754
revenues received through federal or state grants, projects, or	1755
programs, or from grants from private sources.	1756

(C) Notwithstanding the fact that alternative methods of	1757
financing such needs are available, after fixing the amount to be	1758
distributed to libraries, the commission shall fix the amount, if	1759
any, of the county public library and local government support	1760
fund to be distributed to each board of township park	1761
commissioners, the county, and each municipal corporation in	1762
accordance with the following:	1763

(1) Each municipal corporation in the county shall receive a	1764
per cent of the remainder that equals the per cent that the county	1765
auditor determines the classified property taxes originating in	1766
such municipal corporation in 1984 were of the total of all of the	1767
county's classified property taxes in 1984. The commission may	1768
deduct from this amount any amount that the budget commission	1769
allows to the board of township park commissioners of a township	1770
park district, the boundaries of which are coextensive with or	1771
contained within the boundaries of the municipal corporation.	1772

(2) The county shall receive a per cent of the remainder that	1773
equals the per cent that the county auditor determines the	1774
classified property taxes originating outside of the boundaries of	1775
municipal corporations in the county in 1984 were of the total of	1776
all of the county's classified property taxes in 1984. The	1777
commission may deduct from this amount any amount that the budget	1778
commission allows to the board of township park commissioners of a	1779
township park district, the boundaries of which are not	1780
coextensive with or contained within those of any municipal	1781
corporation in the county.	1782

(D) The commission shall separately set forth the amounts	1783
fixed and determined under divisions (B) and (C) of this section	1784
in the "official certificate of estimated resources," as provided	1785
in section 5705.35 of the Revised Code, and separately certify	1786
such amount to the county auditor who shall be guided thereby in	1787
the distribution of the county public library and local government	1788
support fund for and during the fiscal year. In determining such	1789
amounts, the commission shall be guided by the estimate certified	1790
by the tax commissioner and presented by the auditor under section	1791
5705.31 of the Revised Code, as to the total amount of revenue to	1792
be received in the county public library and local government	1793
support fund during such fiscal year.	1794

(E)(1) At least five days before the date of any meeting at	1795
which the budget commission plans to discuss the distribution of	1796
the county public library and local government support fund, it	1797
shall notify each legislative authority and board of public	1798
library trustees, county commissioners, and township park	1799
commissioners eligible to participate in the distribution of the	1800
fund of the date, time, place, and agenda for the meeting. Any	1801
legislative authority or board entitled to notice under this	1802
division may designate an officer or employee of such legislative	1803
authority or board to whom the commission shall deliver the	1804
notice.	1805

(2) Before the final determination of the amount to be	1806
allotted to each subdivision from any source, the commission shall	1807
permit representatives of each subdivision and of each board of	1808
public library trustees to appear before it to explain its	1809
financial needs.	1810

(F) If any public library receives and expends any funds	1811
allocated to it under this section for the construction of new	1812
library buildings or parts of buildings, such library shall be	1813
free and open to the inhabitants of the county in which it is	1814
located. Any board of library trustees that receives funds under	1815
this section and section 5747.48 of the Revised Code shall have	1816
its financial records open for public inspection at all reasonable	1817
times.	1818

Sec. 5705.321.  (A) As used in this section:

1819

(1) "City, located wholly or partially in the county, with	1820
the greatest population" means the city, located wholly or	1821
partially in the county, with the greatest population residing in	1822
the county; however, if the county budget commission on or before	1823
January 1, 1998, adopted an alternative method of apportionment	1824
that was approved by the city, located partially in the county,	1825
with the greatest population but not the greatest population	1826
residing in the county, "city, located wholly or partially in the	1827
county, with the greatest population" means the city, located	1828
wholly or partially in the county, with the greatest population	1829
whether residing in the county or not, if this alternative meaning	1830
is adopted by action of the board of county commissioners and a	1831
majority of the boards of township trustees and legislative	1832
authorities of municipal corporations located wholly or partially	1833
in the county.	1834

(2) "Participating political subdivision" means a municipal	1835
corporation or township that satisfies all of the following:	1836

(a) It is located wholly or partially in the county.

1837

(b) It is not the city, located wholly or partially in the	1838
county, with the greatest population.	1839

(c) Library and local government supportPublic library fund	1840
moneys are apportioned to it under the county's alternative method	1841
or formula of apportionment in the current calendar year.	1842

(B) In lieu of the method of apportionment of the county	1843
public library and local government support fund provided by	1844
division (C) of section 5705.32 of the Revised Code, the county	1845
budget commission may provide for the apportionment of the fund	1846
under an alternative method or on a formula basis as authorized by	1847
this section.	1848

Except as otherwise provided in division (C) of this section,	1849
the alternative method of apportionment shall have first been	1850
approved by all of the following governmental units: the board of	1851
county commissioners; the legislative authority of the city,	1852
located wholly or partially in the county, with the greatest	1853
population; and a majority of the boards of township trustees and	1854
legislative authorities of municipal corporations, located wholly	1855
or partially in the county, excluding the legislative authority of	1856
the city, located wholly or partially in the county, with the	1857
greatest population. In granting or denying approval for an	1858
alternative method of apportionment, the board of county	1859
commissioners, boards of township trustees, and legislative	1860
authorities of municipal corporations shall act by motion. A	1861
motion to approve shall be passed upon a majority vote of the	1862
members of a board of county commissioners, board of township	1863
trustees, or legislative authority of a municipal corporation,	1864
shall take effect immediately, and need not be published.	1865

Any alternative method of apportionment adopted and approved	1866
under this division may be revised, amended, or repealed in the	1867
same manner as it may be adopted and approved. If an alternative	1868
method of apportionment adopted and approved under this division	1869
is repealed, the county public library and local government	1870
support fund shall be apportioned among the subdivisions eligible	1871
to participate in the fund, commencing in the ensuing calendar	1872
year, under the apportionment provided in divisions (B) and (C) of	1873
section 5705.32 of the Revised Code, unless the repeal occurs by	1874
operation of division (C) of this section or a new method for	1875
apportionment of the fund is provided in the action of repeal.	1876

(C) This division applies only in counties in which the city,	1877
located wholly or partially in the county, with the greatest	1878
population has a population of twenty thousand or less and a	1879
population that is less than fifteen per cent of the total	1880
population of the county. In such a county, the legislative	1881
authorities or boards of township trustees of two or more	1882
participating political subdivisions, which together have a	1883
population residing in the county that is a majority of the total	1884
population of the county, each may adopt a resolution to exclude	1885
the approval otherwise required of the legislative authority of	1886
the city, located wholly or partially in the county, with the	1887
greatest population. All of the resolutions to exclude that	1888
approval shall be adopted not later than the first Monday of	1889
August of the year preceding the calendar year in which	1890
distributions are to be made under an alternative method of	1891
apportionment.	1892

A motion granting or denying approval of an alternative	1893
method of apportionment under this division shall be adopted by a	1894
majority vote of the members of the board of county commissioners	1895
and by a majority vote of a majority of the boards of township	1896
trustees and legislative authorities of the municipal corporations	1897
located wholly or partially in the county, other than the city,	1898
located wholly or partially in the county, with the greatest	1899
population, shall take effect immediately, and need not be	1900
published. The alternative method of apportionment under this	1901
division shall be adopted and approved annually, not later than	1902
the first Monday of August of the year preceding the calendar year	1903
in which distributions are to be made under it. A motion granting	1904
approval of an alternative method of apportionment under this	1905
division repeals any existing alternative method of apportionment,	1906
effective with distributions to be made from the fund in the	1907
ensuing calendar year. An alternative method of apportionment	1908
under this division shall not be revised or amended after the	1909
first Monday of August of the year preceding the calendar year in	1910
which distributions are to be made under it.	1911

(D) In determining an alternative method of apportionment	1912
authorized by this section, the county budget commission may	1913
include in the method any factor considered to be appropriate and	1914
reliable, in the sole discretion of the county budget commission.	1915

(E) On the basis of any alternative method of apportionment	1916
adopted and approved as authorized by this section, as certified	1917
by the auditor to the county treasurer, the county treasurer shall	1918
make distribution of the money in the county public library and	1919
local government support fund to each subdivision eligible to	1920
participate in the fund, and the auditor, when the amount of those	1921
shares is in the custody of the treasurer in the amounts so	1922
computed to be due the respective subdivisions, shall at the same	1923
time certify to the tax commissioner the percentage share of the	1924
county as a subdivision. All money received into the treasury of a	1925
subdivision from the county public library and local government	1926
support fund in a county treasury shall be paid into the general	1927
fund and used for the current operating expenses of the	1928
subdivision.	1929

(F) The actions of the county budget commission taken	1930
pursuant to this section are final and may not be appealed to the	1931
board of tax appeals, except on the issues of abuse of discretion	1932
and failure to comply with the formula.	1933

Sec. 5705.37.  The taxing authority of any subdivision, or	1934
the board of trustees of any public library, nonprofit	1935
corporation, or library association maintaining a free public	1936
library that has adopted and certified rules under section 5705.28	1937
of the Revised Code, that is dissatisfied with any action of the	1938
county budget commission may, through its fiscal officer, appeal	1939
to the board of tax appeals within thirty days after the receipt	1940
by the subdivision of the official certificate or notice of the	1941
commission's action. In like manner, but through its clerk, the	1942
board of trustees of any public library, nonprofit corporation, or	1943
library association maintaining a free public library that has	1944
adopted and certified rules under section 5705.28 of the Revised	1945
Code, or any park district may appeal to the board of tax appeals.	1946
An appeal under this section shall be taken by the filing of a	1947
notice of appeal, either in person or by certified mail, express	1948
mail, or authorized delivery service as provided in section	1949
5703.056 of the Revised Code, with the board and with the	1950
commission. If notice of appeal is filed by certified mail,	1951
express mail, or authorized delivery service, date of the United	1952
States postmark placed on the sender's receipt by the postal	1953
service or the date of receipt recorded by the authorized delivery	1954
service shall be treated as the date of filing. Upon receipt of	1955
the notice of appeal, the commission, by certified mail, shall	1956
notify all persons who were parties to the proceeding before the	1957
commission of the filing of the notice of appeal and shall file	1958
proof of notice with the board of tax appeals. The secretary of	1959
the commission shall forthwith certify to the board a transcript	1960
of the full and accurate record of all proceedings before the	1961
commission, together with all evidence presented in the	1962
proceedings or considered by the commission, pertaining to the	1963
action from which the appeal is taken. The secretary of the	1964
commission also shall certify to the board any additional	1965
information that the board may request.	1966

The board of tax appeals, in a de novo proceeding, shall	1967
forthwith consider the matter presented to the commission, and may	1968
modify any action of the commission with reference to the budget,	1969
the estimate of revenues and balances, the allocation of the	1970
public library and local government support fund, or the fixing of	1971
tax rates. The finding of the board of tax appeals shall be	1972
substituted for the findings of the commission, and shall be	1973
certified to the tax commissioner, the county auditor, and the	1974
taxing authority of the subdivision affected, or to the board of	1975
public library trustees affected, as the action of the commission	1976
under sections 5705.01 to 5705.47 of the Revised Code.	1977

This section does not give the board of tax appeals any	1978
authority to place any tax levy authorized by law within the	1979
ten-mill limitation outside of that limitation, or to reduce any	1980
levy below any minimum fixed by law.	1981

Sec. 5715.36.  (A) Any expense incurred by the tax	1982
commissioner as to the annual assessment of real property in any	1983
taxing district shall be paid out of the treasury of the county in	1984
which such district is located upon presentation of the order of	1985
the commissioner certifying the amount thereof to the county	1986
auditor, who shall thereupon issue hisa warrant therefor upon the	1987
general fund of the county and direct the warrant to the county	1988
treasurer, who shall pay the same. All money paid out of the	1989
county treasury under authority of this division and section	1990
5703.30 of the Revised Code shall be charged against the proper	1991
district, and amounts paid by the county shall be retained by the	1992
auditor from funds due such district at the time of making the	1993
semiannual distribution of taxes.	1994

(B) Any expense incurred by the board of tax appeals as to	1995
the hearing of any appeal from a county budget commission with	1996
respect to the allocation of the local government fund or the	1997
county public library and local government support fund shall be	1998
paid out of the treasury of the county involved upon presentation	1999
of the order of the board certifying the amount thereof to the	2000
county auditor, who shall thereupon issue hisa warrant therefor	2001
upon the general fund of the county and direct the warrant to the	2002
county treasurer, who shall pay the same. At the time the local	2003
government fund or the county public library and local government	2004
support fund is distributed, all money which had been paid out of	2005
the county treasury for such expenses shall be deducted by the	2006
county auditor from the fund involved in the appeal. The amount so	2007
deducted by the county auditor shall be forthwith returned to the	2008
general fund of the county.	2009

(C) An amount equal to the sum of the expenses incurred by	2010
the board of tax appeals as to any of the following shall be paid	2011
out of the general fund of the county in which such property is	2012
located upon presentation of the order of the board certifying the	2013
amount thereof to the county auditor, who shall thereupon issue	2014
hisa warrant therefor upon the general fund of the county and	2015
direct the warrant to the county treasurer, who shall pay the	2016
same:	2017

(1) The hearing of any appeal from a county board of revision	2018
under section 5717.01 of the Revised Code;	2019

(2) An appeal from any finding, computation, determination,	2020
or order of the tax commissioner made with respect to the	2021
assessment or exemption of real property under division (B) of	2022
section 5715.61 and section 5717.02 of the Revised Code. At the	2023
time of each settlement of taxes under divisions (A) and (C) of	2024
section 321.24 of the Revised Code, there shall be deducted from	2025
the taxes included in such settlement and paid into the county	2026
general fund in the same manner as the fees allowed the county	2027
treasurer on amounts included in such settlement, the amounts paid	2028
out under this division since the preceding settlement. Each	2029
deduction shall be apportioned among the taxing districts within	2030
which the property that was the subject of the appeal is located	2031
in proportion to their relative shares of their respective taxes	2032
included in the settlement.	2033

Sec. 5719.041.  If the payment of a general personal property	2034
or classified property tax is not made on or before the last day	2035
prescribed by section 5719.03 or 5719.031 of the Revised Code, an	2036
interest charge shall begin to accrue and shall continue until all	2037
charges are paid, except that no interest charge shall accrue for	2038
or in the month in which such payment was due under such section	2039
or under the circumstances and for the period described in	2040
division (A)(2) of section 5711.33 of the Revised Code or upon	2041
delinquent taxes that are the subject of a delinquent tax contract	2042
entered into pursuant to section 5719.05 of the Revised Code.	2043

The interest charge shall accrue against the balance of such	2044
taxes and any penalty thereon outstanding that remains unpaid on	2045
the last day of each month and shall be at the rate per calendar	2046
month, rounded to the nearest one-hundredth of one per cent, equal	2047
to one-twelfth of the federal short-term rate determined by the	2048
tax commissioner under section 5703.47 of the Revised Code for the	2049
calendar year that includes the month for which the charge	2050
accrues. The charge is payable in addition to the unpaid balance	2051
of taxes and penalties on the day the charge accrues, unless the	2052
entire balance is sooner paid.	2053

If a delinquent tax contract becomes void, interest shall be	2054
charged on the day on which the contract becomes void in the	2055
amount that would have been charged had the delinquent tax	2056
contract not been entered into and shall thereafter accrue as	2057
provided in this section.	2058

Interest shall be allowed, at the same rate per calendar	2059
month as is applicable that month for underpayments, on any	2060
overpayment of the tax charged on a general personal property or a	2061
classified property tax duplicate, from the first day of the month	2062
following the date of the overpayment until the last day of the	2063
month preceding the date of the refund of the overpayment. The	2064
interest shall be paid from the fund or funds to which the	2065
overpayment was credited.	2066

When the county treasurer makes the treasurer's annual	2067
settlement with the county auditor under division (D) of section	2068
321.24 of the Revised Code, the treasurer shall certify to the	2069
auditor a list of all entries on the cumulative delinquent tax	2070
duplicate that are at that time in the process of being paid in	2071
installments under a valid delinquent tax contract. For each entry	2072
that appears on the duplicate that is not on the certified list,	2073
the auditor shall compute the full amount of interest charges	2074
which have accrued against such entry since the preceding such	2075
settlement was made and shall include such charges through the	2076
last day of the month preceding the current settlement. The	2077
auditor shall include such amounts on the tax list and duplicates	2078
prepared by the auditor as prescribed in section 5719.04 of the	2079
Revised Code unless the interest is less than one dollar, in which	2080
case it shall not be added to such tax lists and duplicates.	2081

Before the county treasurer accepts any payment of taxes	2082
against which there are accrued interest charges that do not	2083
appear on the delinquent tax duplicate, the treasurer shall notify	2084
the auditor who shall issue a certificate to the treasurer showing	2085
the amount of such interest charges, and the treasurer shall	2086
collect the amount shown on such certificate at the time of	2087
accepting payment of such taxes. If the amount of such interest	2088
charges is less than one dollar, no such certificate shall be	2089
issued. In the case of delinquent personal property taxes, the	2090
interest shown on such certificate shall be credited to the	2091
undivided general tax fund, and distributed in the same manner as	2092
the delinquent taxes upon which the interest charges accrued. In	2093
the case of delinquent classified property taxes, the interest	2094
shown on such certificate shall be credited to the county public	2095
library and local government support fund and distributed in	2096
accordance with section 5747.48 of the Revised Code. When the	2097
payment of delinquent taxes is credited on the tax duplicate the	2098
treasurer shall make a separate notation thereon indicating the	2099
amount collected and the index number of the auditor's certificate	2100
herein prescribed.	2101

Sec. 5747.03.  (A) All money collected under this chapter	2102
arising from the taxes imposed by section 5747.02 or 5747.41 of	2103
the Revised Code shall be credited to the general revenue fund,	2104
except that the treasurer of state shall, at the beginning of each	2105
calendar quarter, credit to the Ohio political party fund,	2106
pursuant to section 3517.16 of the Revised Code, an amount equal	2107
to the total dollar value realized from the taxpayer exercise of	2108
the income tax checkoff option on tax forms processed during the	2109
preceding calendar quarter.	2110

(B)(1) Following the crediting of moneys pursuant to division	2111
(A) of this section, the remainder deposited in the general	2112
revenue fund shall be distributed pursuant to division (F) of	2113
section 321.24 and section 323.156 of the Revised Code; to make	2114
subsidy payments to institutions of higher education from	2115
appropriations to the Ohio board of regents; to support	2116
expenditures for programs and services for the mentally ill,	2117
mentally retarded, developmentally disabled, and elderly; for	2118
primary and secondary education; for medical assistance; and for	2119
any other purposes authorized by law, subject to the limitation	2120
that at least fifty per cent of the income tax collected by the	2121
state from the tax imposed by section 5747.02 of the Revised Code	2122
shall be returned pursuant to Section 9 of Article XII, Ohio	2123
Constitution.	2124

(2) To ensure that such constitutional requirement is	2125
satisfied the tax commissioner shall, on or before the thirtieth	2126
day of June of each year, from the best information available to	2127
the tax commissioner, determine and certify for each county to the	2128
director of budget and management the amount of taxes collected	2129
under this chapter from the tax imposed under section 5747.02 of	2130
the Revised Code during the preceding calendar year that are	2131
required to be returned to the county by Section 9 of Article XII,	2132
Ohio Constitution. The director shall provide for payment from the	2133
general revenue fund to the county in the amount, if any, that the	2134
sum of the amount so certified for that county exceeds the sum of	2135
the following:	2136

(a) The sum of the payments from the general revenue fund for	2137
the preceding calendar year credited to the county's undivided	2138
income tax fund pursuant to division (F) of section 321.24 and	2139
section 323.156 of the Revised Code or made directly from the	2140
general revenue fund to political subdivisions located in the	2141
county;	2142

(b) The sum of the amounts from the general revenue fund	2143
distributed in the county during the preceding calendar year for	2144
subsidy payments to institutions of higher education from	2145
appropriations to the Ohio board of regents; for programs and	2146
services for mentally ill, mentally retarded, developmentally	2147
disabled, and elderly persons; for primary and secondary	2148
education; and for medical assistance.	2149

(c) In the case of payments made by the director under this	2150
division in 2007, the total amount distributed to the county	2151
during the preceding calendar year from the local government fund	2152
and the local government revenue assistance fund, and, in the case	2153
of payments made by the director under this division in subsequent	2154
calendar years, the amount distributed to the county from the	2155
local government fund;	2156

(d) In the case of payments made by the director under this	2157
division, the total amount distributed to the county during the	2158
preceding calendar year from the public library and local	2159
government support fund.	2160

Payments under this division shall be credited to the	2161
county's undivided income tax fund, except that, notwithstanding	2162
section 5705.14 of the Revised Code, such payments may be	2163
transferred by the board of county commissioners to the county	2164
general fund by resolution adopted with the affirmative vote of	2165
two-thirds of the members thereof.	2166

(C) All payments received in each month from taxes imposed	2167
under Chapter 5748. of the Revised Code and any penalties or	2168
interest thereon shall be paid into the school district income tax	2169
fund, which is hereby created in the state treasury, except that	2170
an amount equal to the following portion of such payments shall be	2171
paid into the general school district income tax administrative	2172
fund, which is hereby created in the state treasury:	2173

(1) One and three-quarters of one per cent of those received	2174
in fiscal year 1996;	2175

(2) One and one-half per cent of those received in fiscal	2176
year 1997 and thereafter.	2177

Money in the school district income tax administrative fund	2178
shall be used by the tax commissioner to defray costs incurred in	2179
administering the school district's income tax, including the cost	2180
of providing employers with information regarding the rate of tax	2181
imposed by any school district. Any moneys remaining in the fund	2182
after such use shall be deposited in the school district income	2183
tax fund.	2184

All interest earned on moneys in the school district income	2185
tax fund shall be credited to the fund.	2186

(D)(1)(a) Within thirty days of the end of each calendar	2187
quarter ending on the last day of March, June, September, and	2188
December, the director of budget and management shall make a	2189
payment from the school district income tax fund to each school	2190
district for which school district income tax revenue was received	2191
during that quarter. The amount of the payment shall equal the	2192
balance in the school district's account at the end of that	2193
quarter.	2194

(b) After a school district ceases to levy an income tax, the	2195
director of budget and management shall adjust the payments under	2196
division (D)(1)(a) of this section to retain sufficient money in	2197
the school district's account to pay refunds. For the calendar	2198
quarters ending on the last day of March and December of the	2199
calendar year following the last calendar year the tax is levied,	2200
the director shall make the payments in the amount required under	2201
division (D)(1)(a) of this section. For the calendar quarter	2202
ending on the last day of June of the calendar year following the	2203
last calendar year the tax is levied, the director shall make a	2204
payment equal to nine-tenths of the balance in the account at the	2205
end of that quarter. For the calendar quarter ending on the last	2206
day of September of the calendar year following the last calendar	2207
year the tax is levied, the director shall make no payment. For	2208
the second and succeeding calendar years following the last	2209
calendar year the tax is levied, the director shall make one	2210
payment each year, within thirty days of the last day of June, in	2211
an amount equal to the balance in the district's account on the	2212
last day of June.	2213

(2) Moneys paid to a school district under this division	2214
shall be deposited in its school district income tax fund. All	2215
interest earned on moneys in the school district income tax fund	2216
shall be apportioned by the tax commissioner pro rata among the	2217
school districts in the proportions and at the times the districts	2218
are entitled to receive payments under this division.	2219

Sec. 5747.46.  As used in sections 5747.46 and 5747.47 of the	2220
Revised Code:	2221

(A) "Year's fund balance" means the amount credited to the	2222
public library and local government support fund during a calendar	2223
year.	2224

(B) "Distribution year" means the calendar year during which	2225
a year's fund balance is distributed under section 5747.47 of the	2226
Revised Code.	2227

(C) "CPI" means the consumer price index for all urban	2228
consumers (United States city average, all items), prepared by the	2229
United States department of labor, bureau of labor statistics.	2230

(D) "Inflation factor" means the quotient obtained by	2231
dividing the CPI for May of the year preceding the distribution	2232
year by the CPI for May of the second preceding year. If the the	2233
quotient so obtained is less than one, the inflation factor shall	2234
equal one.	2235

(E) "Population" means whichever of the following has most	2236
recently been issued, as of the first day of June preceding the	2237
distribution year:	2238

(1) The most recent decennial census figures that include	2239
population figures for each county in the state;	2240

(2) The most current issue of "Current Population Reports:	2241
Local Population Estimates" issued by the United States bureau of	2242
the census that contains population estimates for each county in	2243
the state and the state.	2244

(F) "County's equalization ratio for a distribution year"	2245
means a percentage computed for that county as follows:	2246

(1) Square the per cent that the county's population is of	2247
the state's population;	2248

(2) Divide the product so obtained by the per cent that the	2249
county's total entitlement for the preceding year is of all	2250
counties' total entitlements for the preceding year;	2251

(3) Divide the quotient so obtained by the sum of the	2252
quotients so obtained for all counties.	2253

(G) "Total entitlement" means, with respect to a distribution	2254
year, the sum of a county's guaranteed share plus its share of the	2255
excess.	2256

(1) "Guaranteed share" means, for a distribution year, the	2257
product obtained by multiplying a county's total entitlement for	2258
the preceding distribution year by the inflaction factor. If the	2259
sum of the guaranteed shares for all counties exceeds the year's	2260
fund balance, the guaranteed shares of all counties shall be	2261
reduced by a percentage that will result in the sum of such	2262
guaranteed shares being equal to the year's fund balance.	2263

(2) "Share of excess" means, for a distribution year, the	2264
product obtained by multiplying a county's equalization ratio by	2265
the difference between the year's fund balance and the sum of the	2266
guaranteed shares for all counties. If the sum of the guaranteed	2267
shares for all counties exceeds the year's fund balance the share	2268
of the excess for all counties is zero.	2269

(H) "Net distribution" means the sum of the payments made to	2270
a county's public library and local government support fund during	2271
a distribution year, adjusted as follows:	2272

(1) If the county received an overpayment during the	2273
preceding distribution year, add the amount of the overpayment;	2274

(2) If the county received an underpayment during the	2275
preceding distribution year, deduct the amount of the	2276
underpayment.	2277

(I) "Overpayment" or "underpayment" for a distribution year	2278
means the amount by which the net distribution to a county's	2279
public library and local government support fund during that	2280
distribution year exceeded or was less than the county's total	2281
entitlement for that year.	2282

All computations made under this section shall be rounded to	2283
the nearest one-hundredth of one per cent.	2284

Sec. 5747.47. (A)(1) By the twentieth day of July of each	2285
year, the tax commissioner shall estimate and certify the	2286
following for each county to its county auditor:	2287

(a) Its guaranteed share of the ensuing year's fund balance;

2288

(b) Its share of the excess of the ensuing year's fund	2289
balance;	2290

(c) Its total entitlement.

2291

(2) In December and in June following such estimations and	2292
certifications, the commissioner shall revise such estimates and	2293
certify such revised estimates to the respective county auditors.	2294

(B) By the tenth day of each month the commissioner shall	2295
distribute the amount credited to the public library and local	2296
government support fund in the current month under section 131.51	2297
of the Revised Code. The distributions shall be made as follows:	2298

(1) During the first six months of each year, each county	2299
shall be paid a percentage of the balance that is the same per	2300
cent that the revised estimate of the county's total entitlement	2301
certified in December under division (A)(2) of this section is of	2302
the sum of such revised estimates of the total entitlements for	2303
all counties.	2304

(2) During the last six months, each county shall be paid a	2305
percentage of the balance that is the same per cent that the	2306
revised estimate of the county's total entitlement certified in	2307
June under division (A)(2) of this section is of the sum of such	2308
revised estimates of the total entitlements for all counties.	2309

(3) During each of the first six months of each year, the	2310
payments made to each county shall be adjusted as follows:	2311

(a) If the county received an overpayment during the	2312
preceding distribution year, reduce the sum of the payments by the	2313
amount of such overpayment. The reduction shall be apportioned	2314
over the six months.	2315

(b) If the county received an underpayment during the	2316
preceding distribution year, increase the sum of the payments by	2317
the amount of such underpayment. The increase shall be apportioned	2318
over the six months.	2319

(C) By the twentieth day of December of each year, the tax	2320
commissioner shall determine and certify to the auditor of each	2321
county each of the following with respect to the current	2322
distribution year:	2323

(1) The year's fund balance;

2324

(2) Each county's guaranteed share;

2325

(3) Each county's share of the excess;

2326

(4) Each county's total entitlement;

2327

(5) Each county's net distribution;

2328

(6) The amount by which each county's net distribution	2329
exceeded or was less than its total entitlement, which amount	2330
shall constitute the county's overpayment or underpayment for	2331
purposes of division (B)(3) of this section in the ensuing	2332
distribution year.	2333

Sec. 5747.48.  On the fifteenth day of each month, the county	2334
treasurer shall distribute the balance in the county public	2335
library and local government support fund among the county, boards	2336
of public library trustees, municipal corporations, and boards of	2337
township park commissioners for which the county budget commission	2338
has fixed an allocation from the fund in that year in accordance	2339
with section 5705.32 of the Revised Code in the same proportions	2340
that each such entity's allocation as fixed by the commission is	2341
of the total of all such allocations in that year.	2342

All money received into the treasury of a municipal	2343
corporation or county shall be credited to the general fund	2344
therein, provided that in a municipal corporation there shall be	2345
credited to the funds established under division (D) of section	2346
5705.09 of the Revised Code a portion of the total amount to be	2347
credited to funds of the municipal corporation, which portion	2348
shall be determined by multiplying the total amount to be credited	2349
by the percentage that the funds credited under division (D) of	2350
said section in 1938 bore to all the funds credited under said	2351
section in 1938. If a municipal corporation is in default with	2352
respect to the principal or interest of any outstanding notes or	2353
bonds, the moneys distributed under this section shall be credited	2354
to the funds established under divisions (A), (B), (C), and (D) of	2355
section 5705.09 of the Revised Code, in the same proportion in	2356
which the funds derived from the levy for the previous year on the	2357
general tax list and duplicate are divided.	2358

Sec. 5747.51.  (A) On or before the twenty-fifth day of July	2359
of each year, the tax commissioner shall make and certify to the	2360
county auditor of each county an estimate of the amount of the	2361
local government fund to be allocated to the undivided local	2362
government fund of each county for the ensuing calendar year and	2363
the estimated amount to be received by the undivided local	2364
government fund of each county from the taxes levied pursuant to	2365
section 5707.03 of the Revised Code for the ensuing calendar	2366
year.	2367

(B) At each annual regular session of the county budget	2368
commission convened pursuant to section 5705.27 of the Revised	2369
Code, each auditor shall present to the commission the certificate	2370
of the commissioner, the annual tax budget and estimates, and the	2371
records showing the action of the commission in its last preceding	2372
regular session. The estimates shown on the certificate of the	2373
commissioner of the amount to be allocated from the local	2374
government fund and the amount to be received from taxes levied	2375
pursuant to section 5707.03 of the Revised Code shall be combined	2376
into one total comprising the estimate of the undivided local	2377
government fund of the county. The commission, after extending to	2378
the representatives of each subdivision an opportunity to be	2379
heard, under oath administered by any member of the commission,	2380
and considering all the facts and information presented to it by	2381
the auditor, shall determine the amount of the undivided local	2382
government fund needed by and to be apportioned to each	2383
subdivision for current operating expenses, as shown in the tax	2384
budget of the subdivision. This determination shall be made	2385
pursuant to divisions (C) to (I) of this section, unless the	2386
commission has provided for a formula pursuant to section 5747.53	2387
of the Revised Code.	2388

Nothing in this section prevents the budget commission, for	2389
the purpose of apportioning the undivided local government fund,	2390
from inquiring into the claimed needs of any subdivision as stated	2391
in its tax budget, or from adjusting claimed needs to reflect	2392
actual needs. For the purposes of this section, "current operating	2393
expenses" means the lawful expenditures of a subdivision, except	2394
those for permanent improvements and except payments for interest,	2395
sinking fund, and retirement of bonds, notes, and certificates of	2396
indebtedness of the subdivision.	2397

(C) The commission shall determine the combined total of the	2398
estimated expenditures, including transfers, from the general fund	2399
and any special funds other than special funds established for	2400
road and bridge; street construction, maintenance, and repair;	2401
state highway improvement; and gas, water, sewer, and electric	2402
public utilities operated by a subdivision, as shown in the	2403
subdivision's tax budget for the ensuing calendar year.	2404

(D) From the combined total of expenditures calculated	2405
pursuant to division (C) of this section, the commission shall	2406
deduct the following expenditures, if included in these funds in	2407
the tax budget:	2408

(1) Expenditures for permanent improvements as defined in	2409
division (E) of section 5705.01 of the Revised Code;	2410

(2) In the case of counties and townships, transfers to the	2411
road and bridge fund, and in the case of municipalities, transfers	2412
to the street construction, maintenance, and repair fund and the	2413
state highway improvement fund;	2414

(3) Expenditures for the payment of debt charges;

2415

(4) Expenditures for the payment of judgments.

2416

(E) In addition to the deductions made pursuant to division	2417
(D) of this section, revenues accruing to the general fund and any	2418
special fund considered under division (C) of this section from	2419
the following sources shall be deducted from the combined total of	2420
expenditures calculated pursuant to division (C) of this section:	2421

(1) Taxes levied within the ten-mill limitation, as defined	2422
in section 5705.02 of the Revised Code;	2423

(2) The budget commission allocation of estimated county	2424
public library and local government support fund revenues to be	2425
distributed pursuant to section 5747.48 of the Revised Code;	2426

(3) Estimated unencumbered balances as shown on the tax	2427
budget as of the thirty-first day of December of the current year	2428
in the general fund, but not any estimated balance in any special	2429
fund considered in division (C) of this section;	2430

(4) Revenue, including transfers, shown in the general fund	2431
and any special funds other than special funds established for	2432
road and bridge; street construction, maintenance, and repair;	2433
state highway improvement; and gas, water, sewer, and electric	2434
public utilities, from all other sources except those that a	2435
subdivision receives from an additional tax or service charge	2436
voted by its electorate or receives from special assessment or	2437
revenue bond collection. For the purposes of this division, where	2438
the charter of a municipal corporation prohibits the levy of an	2439
income tax, an income tax levied by the legislative authority of	2440
such municipal corporation pursuant to an amendment of the charter	2441
of that municipal corporation to authorize such a levy represents	2442
an additional tax voted by the electorate of that municipal	2443
corporation. For the purposes of this division, any measure	2444
adopted by a board of county commissioners pursuant to section	2445
322.02, 324.02, 4504.02, or 5739.021 of the Revised Code,	2446
including those measures upheld by the electorate in a referendum	2447
conducted pursuant to section 322.021, 324.021, 4504.021, or	2448
5739.022 of the Revised Code, shall not be considered an	2449
additional tax voted by the electorate.	2450

Subject to division (G) of section 5705.29 of the Revised	2451
Code, money in a reserve balance account established by a county,	2452
township, or municipal corporation under section 5705.13 of the	2453
Revised Code shall not be considered an unencumbered balance or	2454
revenue under division (E)(3) or (4) of this section. Money in a	2455
reserve balance account established by a township under section	2456
5705.132 of the Revised Code shall not be considered an	2457
unencumbered balance or revenue under division (E)(3) or (4) of	2458
this section.	2459

If a county, township, or municipal corporation has created	2460
and maintains a nonexpendable trust fund under section 5705.131 of	2461
the Revised Code, the principal of the fund, and any additions to	2462
the principal arising from sources other than the reinvestment of	2463
investment earnings arising from such a fund, shall not be	2464
considered an unencumbered balance or revenue under division	2465
(E)(3) or (4) of this section. Only investment earnings arising	2466
from investment of the principal or investment of such additions	2467
to principal may be considered an unencumbered balance or revenue	2468
under those divisions.	2469

(F) The total expenditures calculated pursuant to division	2470
(C) of this section, less the deductions authorized in divisions	2471
(D) and (E) of this section, shall be known as the "relative need"	2472
of the subdivision, for the purposes of this section.	2473

(G) The budget commission shall total the relative need of	2474
all participating subdivisions in the county, and shall compute a	2475
relative need factor by dividing the total estimate of the	2476
undivided local government fund by the total relative need of all	2477
participating subdivisions.	2478

(H) The relative need of each subdivision shall be multiplied	2479
by the relative need factor to determine the proportionate share	2480
of the subdivision in the undivided local government fund of the	2481
county; provided, that the maximum proportionate share of a county	2482
shall not exceed the following maximum percentages of the total	2483
estimate of the undivided local government fund governed by the	2484
relationship of the percentage of the population of the county	2485
that resides within municipal corporations within the county to	2486
the total population of the county as reported in the reports on	2487
population in Ohio by the department of development as of the	2488
twentieth day of July of the year in which the tax budget is filed	2489
with the budget commission:	2490

Percentage of	Percentage share		2491
municipal population	of the county		2492
within the county:	shall not exceed:		2493
Less than forty-one per cent	Sixty per cent		2494
Forty-one per cent or more but less			2495
than eighty-one per cent	Fifty per cent		2496
Eighty-one per cent or more	Thirty per cent		2497

Where the proportionate share of the county exceeds the	2498
limitations established in this division, the budget commission	2499
shall adjust the proportionate shares determined pursuant to this	2500
division so that the proportionate share of the county does not	2501
exceed these limitations, and it shall increase the proportionate	2502
shares of all other subdivisions on a pro rata basis. In counties	2503
having a population of less than one hundred thousand, not less	2504
than ten per cent shall be distributed to the townships therein.	2505

(I) The proportionate share of each subdivision in the	2506
undivided local government fund determined pursuant to division	2507
(H) of this section for any calendar year shall not be less than	2508
the product of the average of the percentages of the undivided	2509
local government fund of the county as apportioned to that	2510
subdivision for the calendar years 1968, 1969, and 1970,	2511
multiplied by the total amount of the undivided local government	2512
fund of the county apportioned pursuant to former section 5735.23	2513
of the Revised Code for the calendar year 1970. For the purposes	2514
of this division, the total apportioned amount for the calendar	2515
year 1970 shall be the amount actually allocated to the county in	2516
1970 from the state collected intangible tax as levied by section	2517
5707.03 of the Revised Code and distributed pursuant to section	2518
5725.24 of the Revised Code, plus the amount received by the	2519
county in the calendar year 1970 pursuant to division (B)(1) of	2520
former section 5739.21 of the Revised Code, and distributed	2521
pursuant to former section 5739.22 of the Revised Code. If the	2522
total amount of the undivided local government fund for any	2523
calendar year is less than the amount of the undivided local	2524
government fund apportioned pursuant to former section 5739.23 of	2525
the Revised Code for the calendar year 1970, the minimum amount	2526
guaranteed to each subdivision for that calendar year pursuant to	2527
this division shall be reduced on a basis proportionate to the	2528
amount by which the amount of the undivided local government fund	2529
for that calendar year is less than the amount of the undivided	2530
local government fund apportioned for the calendar year 1970.	2531

(J) On the basis of such apportionment, the county auditor	2532
shall compute the percentage share of each such subdivision in the	2533
undivided local government fund and shall at the same time certify	2534
to the tax commissioner the percentage share of the county as a	2535
subdivision. No payment shall be made from the undivided local	2536
government fund, except in accordance with such percentage shares.	2537

Within ten days after the budget commission has made its	2538
apportionment, whether conducted pursuant to section 5747.51 or	2539
5747.53 of the Revised Code, the auditor shall publish a list of	2540
the subdivisions and the amount each is to receive from the	2541
undivided local government fund and the percentage share of each	2542
subdivision, in a newspaper or newspapers of countywide	2543
circulation, and send a copy of such allocation to the tax	2544
commissioner.	2545

The county auditor shall also send by certified mail, return	2546
receipt requested, a copy of such allocation to the fiscal officer	2547
of each subdivision entitled to participate in the allocation of	2548
the undivided local government fund of the county. This copy shall	2549
constitute the official notice of the commission action referred	2550
to in section 5705.37 of the Revised Code.	2551

All money received into the treasury of a subdivision from	2552
the undivided local government fund in a county treasury shall be	2553
paid into the general fund and used for the current operating	2554
expenses of the subdivision.	2555

If a municipal corporation maintains a municipal university,	2556
such municipal university, when the board of trustees so requests	2557
the legislative authority of the municipal corporation, shall	2558
participate in the money apportioned to such municipal corporation	2559
from the total local government fund, however created and	2560
constituted, in such amount as requested by the board of trustees,	2561
provided such sum does not exceed nine per cent of the total	2562
amount paid to the municipal corporation.	2563

If any public official fails to maintain the records required	2564
by sections 5747.50 to 5747.55 of the Revised Code or by the rules	2565
issued by the tax commissioner, the auditor of state, or the	2566
treasurer of state pursuant to such sections, or fails to comply	2567
with any law relating to the enforcement of such sections, the	2568
local government fund money allocated to the county may be	2569
withheld until such time as the public official has complied with	2570
such sections or such law or the rules issued pursuant thereto.	2571

Sec. 5747.52.  The form used by the county budget commission	2572
to calculate subdivision shares of the undivided local government	2573
fund as apportioned pursuant to section 5747.51 of the Revised	2574
Code shall be as follows:	2575

Calculation of (name of subdivision) share of	2576

undivided local government fund for	2577

(name of county) county	2578

Authorized expenditure for subdivision		Total		2579
1. Estimated expenditures from general fund		.....		2580
2. Estimated expenditures from special funds other than those established for road and bridge, street construction, maintenance, and state highway improvement, and for gas, water, sewer, and electric public utilities		.....		2581
3. Total		.....		2582
Deductions from authorized expenditures				2583
4. Expenditures for permanent improvements		.....		2584
5. Transfers to road and bridge fund (counties and townships only)		.....		2585
6. Transfers to street construction, maintenance, and repair, and state highway improvements funds		.....		2586
7. Expenditures for the payment of debt charges		.....		2587
8. Expenditures for the payment of judgments		.....		2588
9. Taxes levied inside the "ten-mill limitation"		.....		2589
10. Budget commission allocation of estimated county public library and local government support fund revenues		.....		2590
11. Estimated unemcumbered balances as of December 31 of current year in the general funds as stated in the tax budget		.....		2591
12. Revenue, including transfers, shown in the general fund or any special funds other than special funds established for road and bridge, street construction, maintenance, and repair, and state highway improvement, and for gas, water, sewer, and electric public utilities, from all other sources except those from additional taxes or service charges voted by electorate as defined in division (E)(4) of section 5747.51 of the Revised Code, and except revenue from special assessment and revenue bond collections		.....		2592
13. Total		.....		2593
Calculation of subdivision share				2594
14. Relative need of subdivision (line 3 less line 13)		.....		2595
15. Relative need factor for county (total estimate of undivided local government fund divided by total relative need of all participating subdivisions)		.....		2596
16. Proportionate share of subdivision (relative need of subdivision multiplied by relative need factor)		.....		2597
17. After any adjustments necessary to comply with statutory maximum share allowable to county		.....		2598
18. After any adjustments necessary to comply with statutory minimum share allowable to townships		.....		2599
19. After any adjustments necessary to comply with minimum guarantee in division (I) of section 5747.51 of the Revised Code		.....		2600
20. Proportionate share of subdivision (line 16, 17, 18, or 19, whichever is appropriate)		.....		2601

Section 2. That existing sections 127.14, 131.18, 131.44,	2602
131.51, 133.10, 135.35, 135.352, 149.411, 321.08, 3375.05,	2603
3375.121, 3375.32, 3375.35, 3375.36, 3375.37, 3375.38, 3375.39,	2604
3375.40, 3375.404, 3375.41, 3375.42, 3375.85, 3375.91, 3375.92,	2605
5705.28, 5705.281, 5705.31, 5705.32, 5705.321, 5705.37, 5715.36,	2606
5719.041, 5747.03, 5747.46, 5747.47, 5747.48, 5747.51, and	2607
5747.52 of the Revised Code are hereby repealed.	2608

Section 3. On and after the effective date of this act,	2609
references to the Library and Local Government Support Fund,	2610
wherever they are encountered, shall be read as if they were	2611
references to the Public Library Fund.	2612

On and after the effective date of this act, references to a	2613
County Library and Local Government Support Fund, wherever they	2614
are encountered, shall be read as if they were references to a	2615
County Public Library Fund.	2616

Section 4. That Section 323.10 of H.B. 119 of the 127th	2617
General Assembly be amended to read as follows:	2618

Sec. 323.10.  LIB STATE LIBRARY BOARD

2619

General Revenue Fund	2620

GRF	350-321		Operating Expenses		$	6,298,677		$	6,298,677		2621
GRF	350-400		Ohio Public Library Information Network		$	4,330,000		$	4,330,000		2622
GRF	350-401		Ohioana Rental Payments		$	124,816		$	124,816		2623
GRF	350-501		Library for the Blind-Cincinnati		$	535,615		$	535,615		2624
GRF	350-502		Regional Library Systems		$	1,010,441		$	1,010,441		2625
GRF	350-503		Library for the Blind-Cleveland		$	805,642		$	805,642		2626
TOTAL GRF General Revenue Fund					$	13,105,191		$	13,105,191		2627

General Services Fund Group	2628

139	350-602		Intra-Agency Service Charges		$	9,000		$	9,000		2629
4S4	350-604		Ohio Public Library Information Network Technology		$	3,000,000		$	3,000,000		2630
459	350-602		Library Service Charges		$	2,708,092		$	2,708,092		2631
TOTAL GSF General Services											2632
Fund Group					$	5,717,092		$	5,717,092		2633

Federal Special Revenue Fund Group	2634

313	350-601		LSTA Federal		$	5,691,792		$	5,691,792		2635
TOTAL FED Federal Special Revenue											2636
Fund Group					$	5,691,792		$	5,691,792		2637
TOTAL ALL BUDGET FUND GROUPS					$	24,514,075		$	24,514,075		2638

OHIOANA RENTAL PAYMENTS

2639

The foregoing appropriation item 350-401, Ohioana Rental	2640
Payments, shall be used to pay the rental expenses of the Martha	2641
Kinney Cooper Ohioana Library Association pursuant to section	2642
3375.61 of the Revised Code.	2643

LIBRARY FOR THE BLIND-CINCINNATI

2644

The foregoing appropriation item 350-501, Library for the	2645
Blind-Cincinnati, shall be used for the Talking Book program,	2646
which assists the blind and disabled.	2647

REGIONAL LIBRARY SYSTEMS

2648

The foregoing appropriation item 350-502, Regional Library	2649
Systems, shall be used to support regional library systems	2650
eligible for funding under sections 3375.83 and 3375.90 of the	2651
Revised Code.	2652

LIBRARY FOR THE BLIND-CLEVELAND

2653

The foregoing appropriation item 350-503, Library for the	2654
Blind-Cleveland, shall be used for the Talking Book program, which	2655
assists the blind and disabled.	2656

OHIO PUBLIC LIBRARY INFORMATION NETWORK

2657

(A) The foregoing appropriation items 350-604, Ohio Public	2658
Library Information Network Technology, and 350-400, Ohio Public	2659
Library Information Network, shall be used for an information	2660
telecommunications network linking public libraries in the state	2661
and such others as may be certified as participants byparticipate	2662
in the Ohio Public Library Information Network Board(OPLIN).	2663

The Ohio Public Library Information Network Board shall	2664
consist of eleven members appointed by the State Library Board	2665
from among the staff of public libraries and past and present	2666
members of boards of trustees of public libraries, based on the	2667
recommendations of the Ohio library community. The Ohio Public	2668
Library Information Network Board, in consultation with the State	2669
Library, shall develop a plan of operations for the network. The	2670
boardof Trustees created under section 3375.65 of the Revised	2671
Code may make decisions regarding use of the foregoing	2672
appropriation items 350-400, Ohio Public Library Information	2673
Network, and 350-604, Ohio Public Library Information Network	2674
Technology, may receive and expend grants to carry out the	2675
operations of the network in accordance with state law and the	2676
authority to appoint and fix the compensation of a director and	2677
necessary staff. The State Library shall be the fiscal agent for	2678
the network and shall have fiscal accountability for the	2679
expenditure of funds. The Ohio Public Library Information Network	2680
Board members shall be reimbursed for actual travel and necessary	2681
expenses incurred in carrying out their responsibilities.	2682

In order to limit access to obscene and illegal materials	2683
through internet use at Ohio Public Library Information Network	2684
(OPLIN) terminals, local libraries with OPLIN computer terminals	2685
shall adopt policies that control access to obscene and illegal	2686
materials. These policies may include use of technological systems	2687
to select or block certain internet access. The OPLIN shall	2688
condition provision of its funds, goods, and services on	2689
compliance with these policies. The OPLIN Board shall also adopt	2690
and communicate specific recommendations to local libraries on	2691
methods to control such improper usage. These methods may include	2692
each library implementing a written policy controlling such	2693
improper use of library terminals and requirements for parental	2694
involvement or written authorization for juvenile internet usage.	2695

(B) Of the foregoing appropriation item 350-400, Ohio Public	2696
Library Information Network, up to $100,000 in each fiscal year	2697
shall be used to help local libraries purchase or maintain filters	2698
to screen out obscene and illegal internet materials.	2699

The OPLIN Board shall research and assist or advise local	2700
libraries with regard to emerging technologies and methods that	2701
may be effective means to control access to obscene and illegal	2702
materials. The OPLIN Executive Director shall biannually provide	2703
written reports to the Governor, the Speaker and Minority Leader	2704
of the House of Representatives, and the President and Minority	2705
Leader of the Senate on any steps being taken by OPLIN and public	2706
libraries in the state to limit and control such improper usage as	2707
well as information on technological, legal, and law enforcement	2708
trends nationally and internationally affecting this area of	2709
public access and service.	2710

(C) The Ohio Public Library Information Network, INFOhio, and	2711
OhioLINK shall, to the extent feasible, coordinate and cooperate	2712
in their purchase or other acquisition of the use of electronic	2713
databases for their respective users and shall contribute funds in	2714
an equitable manner to such effort.	2715

Section 5. That existing Section 323.10 of H.B. 119 of the	2716
127th General Assembly is hereby repealed.	2717

Section 6.  Section 3375.41 of the Revised Code is presented	2718
in this act as a composite of the section as amended by both Am.	2719
Sub. H.B. 95 and Am. Sub. S.B. 55 of the 125th General Assembly.	2720
Section 5705.31 of the Revised Code is presented in this act as a	2721
composite of the section as amended by both H.B. 129 and S.B. 5	2722
of the 124th General Assembly. The General Assembly, applying	2723
the principle stated in division (B) of section 1.52 of the	2724
Revised Code that amendments are to be harmonized if reasonably	2725
capable of simultaneous operation, finds that the composite of	2726
each such section is the resulting version of the section in	2727
effect prior to the effective date of the section as presented in	2728
this act.	2729