As Passed by the House

128th General Assembly
Regular Session
Sub. H. B. No. 313

Representatives Ujvagi, Winburn 

Cosponsors: Representatives Domenick, Patten, Murray, Hagan, Driehaus, Williams, B., Foley, Skindell, Williams, S., Letson, Stewart, Lehner, Yuko, Bacon, Belcher, Blair, Bolon, Boose, Boyd, Brown, Carney, Celeste, Chandler, Combs, DeBose, DeGeeter, Dyer, Fende, Garland, Garrison, Gerberry, Goyal, Grossman, Hackett, Harris, Heard, Koziura, Luckie, Mallory, Mecklenborg, Moran, Newcomb, Pillich, Szollosi, Weddington, Yates 

To amend sections 1.62, 135.35, 323.78, 1724.02, 1
1724.03, 1724.04, 1724.05, and 5722.22 and to 2
enact section 321.343 of the Revised Code to 3
authorize a county with a population greater than 4
100,000, or a population between 78,000 and 5
81,000, to organize a county land reutilization 6
corporation, to authorize a county treasurer of a 7
county with such a corporation to utilize the 8
alternative redemption period in actions to 9
foreclose abandoned lands, to immunize a county 10
land reutilization corporation from liability for 11
breach of a common law duty in connection with a 12
parcel of land, and to make other changes 13
regarding county land reutilization corporations.14


       Section 1.  That sections 1.62, 135.35, 323.78, 1724.02, 15
1724.03, 1724.04, 1724.05, and 5722.22 be amended and section 16
321.343 of the Revised Code be enacted to read as follows:17

       Sec. 1.62.  As used in the Revised Code, unless the context 18
of a section does not permit the following or unless expressly 19
provided otherwise in a section:20

       (A) References to particular county officers, boards, 21
commissions, and authorities mean, in the case of a county that 22
has adopted a charter under Article X, Ohio Constitution, the 23
officer, board, commission, or authority of that county designated 24
by or pursuant to the charter to exercise the same powers or 25
perform the same acts, duties, or functions that are to be 26
exercised or performed under the applicable section of the Revised 27
Code by officers, boards, commissions, or authorities of counties 28
that have not adopted a charter. If any section of the Revised 29
Code requires county representation on a board, commission, or 30
authority by more than one county officer, and the charter vests 31
the powers, duties, or functions of each county officer 32
representing the county on the board, commission, or authority in 33
fewer officers or in only a single county officer, the county 34
officers or officer shall succeed to the representation of only 35
one of the county officers on the board, commission, or authority. 36
If any vacancy in the representation of the county on the board, 37
commission, or authority remains, the taxing authority of the 38
county shall adopt a resolution to fill the vacancy.39

       (B) References to resolutions mean, in the case of a county 40
that has adopted a charter under Article X, Ohio Constitution, the 41
appropriate form of legislation permitted by or pursuant to the 42

       Sec. 135.35.  (A) The investing authority shall deposit or 44
invest any part or all of the county's inactive moneys and shall 45
invest all of the money in the county public library fund when 46
required by section 135.352 of the Revised Code. The following 47
classifications of securities and obligations are eligible for 48
such deposit or investment:49

       (1) United States treasury bills, notes, bonds, or any other 50
obligation or security issued by the United States treasury, any 51
other obligation guaranteed as to principal or interest by the 52
United States, or any book entry, zero-coupon United States 53
treasury security that is a direct obligation of the United 54

       Nothing in the classification of eligible securities and 56
obligations set forth in divisions (A)(2) to (11) of this section 57
shall be construed to authorize any investment in stripped 58
principal or interest obligations of such eligible securities and 59

       (2) Bonds, notes, debentures, or any other obligations or 61
securities issued by any federal government agency or 62
instrumentality, including but not limited to, the federal 63
national mortgage association, federal home loan bank, federal 64
farm credit bank, federal home loan mortgage corporation, 65
government national mortgage association, and student loan 66
marketing association. All federal agency securities shall be 67
direct issuances of federal government agencies or 68

       (3) Time certificates of deposit or savings or deposit 70
accounts, including, but not limited to, passbook accounts, in any 71
eligible institution mentioned in section 135.32 of the Revised 72

       (4) Bonds and other obligations of this state or the 74
political subdivisions of this state, provided that such political 75
subdivisions are located wholly or partly within the same county 76
as the investing authority;77

       (5) No-load money market mutual funds consisting exclusively 78
of obligations described in division (A)(1) or (2) of this section 79
and repurchase agreements secured by such obligations, provided 80
that investments in securities described in this division are made 81
only through eligible institutions mentioned in section 135.32 of 82
the Revised Code;83

       (6) The Ohio subdivision's fund as provided in section 135.45 84
of the Revised Code;85

       (7) Securities lending agreements with any eligible 86
institution mentioned in section 135.32 of the Revised Code that 87
is a member of the federal reserve system or federal home loan 88
bank or with any recognized United States government securities 89
dealer meeting the description in division (J)(1) of this section, 90
under the terms of which agreements the investing authority lends 91
securities and the eligible institution or dealer agrees to 92
simultaneously exchange similar securities or cash, equal value 93
for equal value.94

       Securities and cash received as collateral for a securities 95
lending agreement are not inactive moneys of the county or moneys 96
of a county public library fund. The investment of cash collateral 97
received pursuant to a securities lending agreement may be 98
invested only in instruments specified by the investing authority 99
in the written investment policy described in division (K) of this 100
section. 101

       (8) Up to twenty-five per cent of the county's total average 102
portfolio in either of the following investments:103

       (a) Commercial paper notes issued by an entity that is 104
defined in division (D) of section 1705.01 of the Revised Code and 105
that has assets exceeding five hundred million dollars, to which 106
notes all of the following apply:107

       (i) The notes are rated at the time of purchase in the 108
highest classification established by at least two nationally 109
recognized standard rating services.110

       (ii) The aggregate value of the notes does not exceed ten per 111
cent of the aggregate value of the outstanding commercial paper of 112
the issuing corporation.113

       (iii) The notes mature not later than two hundred seventy 114
days after purchase.115

       (b) Bankers acceptances of banks that are insured by the 116
federal deposit insurance corporation and to which both of the 117
following apply:118

       (i) The obligations are eligible for purchase by the federal 119
reserve system.120

       (ii) The obligations mature not later than one hundred eighty 121
days after purchase.122

       No investment shall be made pursuant to division (A)(8) of 123
this section unless the investing authority has completed 124
additional training for making the investments authorized by 125
division (A)(8) of this section. The type and amount of additional 126
training shall be approved by the auditor of state and may be 127
conducted by or provided under the supervision of the auditor of 128

       (9) Up to fifteen per cent of the county's total average 130
portfolio in notes issued by corporations that are incorporated 131
under the laws of the United States and that are operating within 132
the United States, or by depository institutions that are doing 133
business under authority granted by the United States or any state 134
and that are operating within the United States, provided both of 135
the following apply:136

        (a) The notes are rated in the second highest or higher 137
category by at least two nationally recognized standard rating 138
services at the time of purchase.139

        (b) The notes mature not later than two years after purchase.140

        (10) No-load money market mutual funds rated in the highest 141
category at the time of purchase by at least one nationally 142
recognized standard rating service and consisting exclusively of 143
obligations described in division (A)(1), (2), or (6) of section 144
135.143 of the Revised Code;145

        (11) Debt interests rated at the time of purchase in the 146
three highest categories by two nationally recognized standard 147
rating services and issued by foreign nations diplomatically 148
recognized by the United States government. All interest and 149
principal shall be denominated and payable in United States funds. 150
The investments made under division (A)(11) of this section shall 151
not exceed in the aggregate one per cent of a county's total 152
average portfolio.153

       The investing authority shall invest under division (A)(11) 154
of this section in a debt interest issued by a foreign nation only 155
if the debt interest is backed by the full faith and credit of 156
that foreign nation, there is no prior history of default, and the 157
debt interest matures not later than five years after purchase. 158
For purposes of division (A)(11) of this section, a debt interest 159
is rated in the three highest categories by two nationally 160
recognized standard rating services if either the debt interest 161
itself or the issuer of the debt interest is rated, or is 162
implicitly rated, at the time of purchase in the three highest 163
categories by two nationally recognized standard rating services.164

       (12) A current unpaid or delinquent tax line of credit 165
authorized under division (G) of section 135.341 of the Revised 166
Code, provided that all of the conditions for entering into such a 167
line of credit under that division are satisfied, or bonds and 168
other obligations of a county land reutilization corporation 169
organized under Chapter 1724. of the Revised Code, if the county 170
land reutilization corporation is located wholly or partly within 171
the same county as the investing authority.172

       (B) Nothing in the classifications of eligible obligations 173
and securities set forth in divisions (A)(1) to (11) of this 174
section shall be construed to authorize investment in a 175
derivative, and no investing authority shall invest any county 176
inactive moneys or any moneys in a county public library fund in a 177
derivative. For purposes of this division, "derivative" means a 178
financial instrument or contract or obligation whose value or 179
return is based upon or linked to another asset or index, or both, 180
separate from the financial instrument, contract, or obligation 181
itself. Any security, obligation, trust account, or other 182
instrument that is created from an issue of the United States 183
treasury or is created from an obligation of a federal agency or 184
instrumentality or is created from both is considered a derivative 185
instrument. An eligible investment described in this section with 186
a variable interest rate payment, based upon a single interest 187
payment or single index comprised of other eligible investments 188
provided for in division (A)(1) or (2) of this section, is not a 189
derivative, provided that such variable rate investment has a 190
maximum maturity of two years. A treasury inflation-protected 191
security shall not be considered a derivative, provided the 192
security matures not later than five years after purchase.193

       (C) Except as provided in division (D) of this section, any 194
investment made pursuant to this section must mature within five 195
years from the date of settlement, unless the investment is 196
matched to a specific obligation or debt of the county or to a 197
specific obligation or debt of a political subdivision of this 198
state located wholly or partly within the county, and the 199
investment is specifically approved by the investment advisory 200

       (D) The investing authority may also enter into a written 202
repurchase agreement with any eligible institution mentioned in 203
section 135.32 of the Revised Code or any eligible securities 204
dealer pursuant to division (J) of this section, under the terms 205
of which agreement the investing authority purchases and the 206
eligible institution or dealer agrees unconditionally to 207
repurchase any of the securities listed in divisions (B)(1) to 208
(5), except letters of credit described in division (B)(2), of 209
section 135.18 of the Revised Code. The market value of securities 210
subject to an overnight written repurchase agreement must exceed 211
the principal value of the overnight written repurchase agreement 212
by at least two per cent. A written repurchase agreement must 213
exceed the principal value of the overnight written repurchase 214
agreement, by at least two per cent. A written repurchase 215
agreement shall not exceed thirty days, and the market value of 216
securities subject to a written repurchase agreement must exceed 217
the principal value of the written repurchase agreement by at 218
least two per cent and be marked to market daily. All securities 219
purchased pursuant to this division shall be delivered into the 220
custody of the investing authority or the qualified custodian of 221
the investing authority or an agent designated by the investing 222
authority. A written repurchase agreement with an eligible 223
securities dealer shall be transacted on a delivery versus payment 224
basis. The agreement shall contain the requirement that for each 225
transaction pursuant to the agreement the participating 226
institution shall provide all of the following information:227

       (1) The par value of the securities;228

       (2) The type, rate, and maturity date of the securities;229

       (3) A numerical identifier generally accepted in the 230
securities industry that designates the securities.231

       No investing authority shall enter into a written repurchase 232
agreement under the terms of which the investing authority agrees 233
to sell securities owned by the county to a purchaser and agrees 234
with that purchaser to unconditionally repurchase those 235

       (E) No investing authority shall make an investment under 237
this section, unless the investing authority, at the time of 238
making the investment, reasonably expects that the investment can 239
be held until its maturity. The investing authority's written 240
investment policy shall specify the conditions under which an 241
investment may be redeemed or sold prior to maturity.242

       (F) No investing authority shall pay a county's inactive 243
moneys or moneys of a county public library fund into a fund 244
established by another subdivision, treasurer, governing board, or 245
investing authority, if that fund was established by the 246
subdivision, treasurer, governing board, or investing authority 247
for the purpose of investing or depositing the public moneys of 248
other subdivisions. This division does not apply to the payment of 249
public moneys into either of the following:250

       (1) The Ohio subdivision's fund pursuant to division (A)(6) 251
of this section;252

       (2) A fund created solely for the purpose of acquiring, 253
constructing, owning, leasing, or operating municipal utilities 254
pursuant to the authority provided under section 715.02 of the 255
Revised Code or Section 4 of Article XVIII, Ohio Constitution.256

       For purposes of division (F) of this section, "subdivision" 257
includes a county.258

       (G) The use of leverage, in which the county uses its current 259
investment assets as collateral for the purpose of purchasing 260
other assets, is prohibited. The issuance of taxable notes for the 261
purpose of arbitrage is prohibited. Contracting to sell securities 262
not owned by the county, for the purpose of purchasing such 263
securities on the speculation that bond prices will decline, is 264

       (H) Any securities, certificates of deposit, deposit 266
accounts, or any other documents evidencing deposits or 267
investments made under authority of this section shall be issued 268
in the name of the county with the county treasurer or investing 269
authority as the designated payee. If any such deposits or 270
investments are registrable either as to principal or interest, or 271
both, they shall be registered in the name of the treasurer.272

       (I) The investing authority shall be responsible for the 273
safekeeping of all documents evidencing a deposit or investment 274
acquired under this section, including, but not limited to, 275
safekeeping receipts evidencing securities deposited with a 276
qualified trustee, as provided in section 135.37 of the Revised 277
Code, and documents confirming the purchase of securities under 278
any repurchase agreement under this section shall be deposited 279
with a qualified trustee, provided, however, that the qualified 280
trustee shall be required to report to the investing authority, 281
auditor of state, or an authorized outside auditor at any time 282
upon request as to the identity, market value, and location of the 283
document evidencing each security, and that if the participating 284
institution is a designated depository of the county for the 285
current period of designation, the securities that are the subject 286
of the repurchase agreement may be delivered to the treasurer or 287
held in trust by the participating institution on behalf of the 288
investing authority.289

       Upon the expiration of the term of office of an investing 290
authority or in the event of a vacancy in the office for any 291
reason, the officer or the officer's legal representative shall 292
transfer and deliver to the officer's successor all documents 293
mentioned in this division for which the officer has been 294
responsible for safekeeping. For all such documents transferred 295
and delivered, the officer shall be credited with, and the 296
officer's successor shall be charged with, the amount of moneys 297
evidenced by such documents.298

       (J)(1) All investments, except for investments in securities 299
described in divisions (A)(5) and, (6), and (12) of this section, 300
shall be made only through a member of the national association of 301
securities dealers, through a bank, savings bank, or savings and 302
loan association regulated by the superintendent of financial 303
institutions, or through an institution regulated by the 304
comptroller of the currency, federal deposit insurance 305
corporation, or board of governors of the federal reserve system. 306

       (2) Payment for investments shall be made only upon the 307
delivery of securities representing such investments to the 308
treasurer, investing authority, or qualified trustee. If the 309
securities transferred are not represented by a certificate, 310
payment shall be made only upon receipt of confirmation of 311
transfer from the custodian by the treasurer, governing board, or 312
qualified trustee.313

       (K)(1) Except as otherwise provided in division (K)(2) of 314
this section, no investing authority shall make an investment or 315
deposit under this section, unless there is on file with the 316
auditor of state a written investment policy approved by the 317
investing authority. The policy shall require that all entities 318
conducting investment business with the investing authority shall 319
sign the investment policy of that investing authority. All 320
brokers, dealers, and financial institutions, described in 321
division (J)(1) of this section, initiating transactions with the 322
investing authority by giving advice or making investment 323
recommendations shall sign the investing authority's investment 324
policy thereby acknowledging their agreement to abide by the 325
policy's contents. All brokers, dealers, and financial 326
institutions, described in division (J)(1) of this section, 327
executing transactions initiated by the investing authority, 328
having read the policy's contents, shall sign the investment 329
policy thereby acknowledging their comprehension and receipt.330

       (2) If a written investment policy described in division 331
(K)(1) of this section is not filed on behalf of the county with 332
the auditor of state, the investing authority of that county shall 333
invest the county's inactive moneys and moneys of the county 334
public library fund only in time certificates of deposits or 335
savings or deposit accounts pursuant to division (A)(3) of this 336
section, no-load money market mutual funds pursuant to division 337
(A)(5) of this section, or the Ohio subdivision's fund pursuant to 338
division (A)(6) of this section.339

       (L)(1) The investing authority shall establish and maintain 340
an inventory of all obligations and securities acquired by the 341
investing authority pursuant to this section. The inventory shall 342
include a description of each obligation or security, including 343
type, cost, par value, maturity date, settlement date, and any 344
coupon rate.345

       (2) The investing authority shall also keep a complete record 346
of all purchases and sales of the obligations and securities made 347
pursuant to this section.348

       (3) The investing authority shall maintain a monthly 349
portfolio report and issue a copy of the monthly portfolio report 350
describing such investments to the county investment advisory 351
committee, detailing the current inventory of all obligations and 352
securities, all transactions during the month that affected the 353
inventory, any income received from the obligations and 354
securities, and any investment expenses paid, and stating the 355
names of any persons effecting transactions on behalf of the 356
investing authority.357

       (4) The monthly portfolio report shall be a public record and 358
available for inspection under section 149.43 of the Revised Code.359

       (5) The inventory and the monthly portfolio report shall be 360
filed with the board of county commissioners.361

       (M) An investing authority may enter into a written 362
investment or deposit agreement that includes a provision under 363
which the parties agree to submit to nonbinding arbitration to 364
settle any controversy that may arise out of the agreement, 365
including any controversy pertaining to losses of public moneys 366
resulting from investment or deposit. The arbitration provision 367
shall be set forth entirely in the agreement, and the agreement 368
shall include a conspicuous notice to the parties that any party 369
to the arbitration may apply to the court of common pleas of the 370
county in which the arbitration was held for an order to vacate, 371
modify, or correct the award. Any such party may also apply to the 372
court for an order to change venue to a court of common pleas 373
located more than one hundred miles from the county in which the 374
investing authority is located.375

       For purposes of this division, "investment or deposit 376
agreement" means any agreement between an investing authority and 377
a person, under which agreement the person agrees to invest, 378
deposit, or otherwise manage, on behalf of the investing 379
authority, a county's inactive moneys or moneys in a county public 380
library fund, or agrees to provide investment advice to the 381
investing authority.382

       (N) An investment held in the county portfolio on September 383
27, 1996, that was a legal investment under the law as it existed 384
before September 27, 1996, may be held until maturity, or if the 385
investment does not have a maturity date the investment may be 386
held until five years from September 27, 1996, regardless of 387
whether the investment would qualify as a legal investment under 388
the terms of this section as amended.389

       Sec. 321.343. A county treasurer of a county in which a 390
county land reutilization corporation has been organized under 391
Chapter 1724. of the Revised Code may enter into an agreement with 392
the county land reutilization corporation for the benefit of the 393
holders of debt obligations of the corporation for the repayment 394
of which will be pledged the penalties and interest on current 395
year unpaid taxes and current year delinquent taxes, as defined in 396
and available under section 321.341 of the Revised Code. The 397
pledge agreement may include, without limitation, a pledge by the 398
county treasurer of and a grant of a security interest in the 399
penalties and interest deposited into the county land 400
reutilization fund to the payment of debt service on the debt 401
obligations and a covenant of the county treasurer to continue to 402
make the special tax advances authorized under section 321.341 of 403
the Revised Code when the debt obligations remain outstanding if 404
necessary to generate from the penalties and interest at least the 405
amount needed to pay the debt service on the debt obligations when 406
due. The penalties and interest so pledged and so deposited are 407
immediately subject to the pledge and security interest without 408
any physical delivery thereof or further act. The pledge and 409
security interest are valid, binding, and enforceable against all 410
parties having claims of any kind against the county land 411
reutilization corporation or the county treasurer, irrespective of 412
notice thereof, and such pledge and grant of a security interest 413
creates a perfected security interest for all purposes of Chapter 414
1309. of the Revised Code, without the necessity for separation or 415
delivery or possession of the pledged penalties and interest, or 416
for the filing or recording of the document by which the pledge 417
and security interest are created. The penalties and interest so 418
deposited may be applied to the purposes for which pledged without 419
necessity for any act of appropriation. The performance under this 420
pledge agreement is expressly determined and declared to be a duty 421
specifically enjoined by law upon the county treasurer and each 422
officer and employee having authority to perform the duty of the 423
county treasurer resulting from an office, trust, or station, 424
within the meaning of section 2731.01 of the Revised Code, 425
enforceable by writ of mandamus.426

       Sec. 323.78.  Notwithstanding anything in Chapters 323., 427
5721., and 5723. of the Revised Code, if the county treasurer of a 428
county having a population of more than one million two hundred 429
thousand as of the most recent decennial censusin which a county 430
land reutilization operates, in any petition for foreclosure of 431
abandoned lands, elects to invoke the alternative redemption 432
period, then upon any adjudication of foreclosure by any court or 433
the board of revision in any proceeding under section 323.25, 434
sections 323.65 to 323.79, or section 5721.18 of the Revised Code, 435
the following apply:436

       (A) Unless otherwise ordered by a motion of the court or 437
board of revision, the petition shall assert, and any notice of 438
final hearing shall include, that upon foreclosure of the parcel, 439
the equity of redemption in any parcel by its owner shall be 440
forever terminated after the expiration of the alternative 441
redemption period, that the parcel thereafter may be sold at 442
sheriff's sale either by itself or together with other parcels as 443
permitted by law; or that the parcel may, by order of the court or 444
board of revision, be transferred directly to a municipal 445
corporation, township, county, school district, or county land 446
reutilization corporation without appraisal and without a sale, 447
free and clear of all impositions and any other liens on the 448
property, which shall be deemed forever satisfied and discharged.449

       (B) After the expiration of the alternative redemption period 450
following an adjudication of foreclosure, by order of the court or 451
board of revision, any equity of redemption is forever 452
extinguished, and the parcel may be transferred individually or in 453
lots with other tax-foreclosed properties to a municipal 454
corporation, township, county, school district, or county land 455
reutilization corporation without appraisal and without a sale, 456
upon which all impositions and any other liens subordinate to 457
liens for impositions due at the time the deed to the property is 458
conveyed to a purchaser or transferred to a community development 459
organization, county land reutilization corporation, municipal 460
corporation, county, township, or school district, shall be deemed 461
satisfied and discharged. Other than the order of the court or 462
board of revision so ordering the transfer of the parcel, no 463
further act of confirmation or other order shall be required for 464
such a transfer, or for the extinguishment of any right of 465
redemption. 466

       (C) Upon the expiration of the alternative redemption period 467
in cases to which the alternative redemption period has been 468
ordered, if no community development organization, county land 469
reutilization corporation, municipal corporation, county, 470
township, or school district has requested title to the parcel, 471
the court or board of revision may order the property sold as 472
otherwise provided in Chapters 323. and 5721. of the Revised Code, 473
and, failing any bid at any such sale, the parcel shall be 474
forfeited to the state and otherwise disposed of pursuant to 475
Chapter 5723. of the Revised Code.476

       Sec. 1724.02.  In furtherance of the purposes set forth in 477
section 1724.01 of the Revised Code, a community improvement 478
corporation shall have the following powers:479

       (A)(1) To borrow money for any of the purposes of the 480
community improvement corporation by means of loans, lines of 481
credit, or any other financial instruments or securities, 482
including the issuance of its bonds, debentures, notes, or other 483
evidences of indebtedness, whether secured or unsecured, and to 484
secure the same by mortgage, pledge, deed of trust, or other lien 485
on its property, franchises, rights, and privileges of every kind 486
and nature or any part thereof or interest therein; and487

       (2) If the community improvement corporation is a county land 488
reutilization corporation, the corporation may request, by 489

       (a) That the board of county commissioners of the county 491
served by the corporation pledge a specifically identified source 492
or sources of revenue pursuant to division (C) of section 307.78 493
of the Revised Code as security for such borrowing by the 494
corporation; and495

       (b)(i) If the land subject to reutilization is located within 496
an unincorporated area of the county, that the board of county 497
commissioners issue notes under section 307.082 of the Revised 498
Code for the purpose of constructing public infrastructure 499
improvements and take other actions as the board determines are in 500
the interest of the county and are authorized under sections 501
5709.78 to 5709.81 of the Revised Code or bonds or notes under 502
section 5709.81 of the Revised Code for the refunding purposes set 503
forth in that section; or504

       (ii) If the land subject to reutilization is located within 505
the corporate boundaries of a municipal corporation, that the 506
municipal corporation issue bonds for the purpose of constructing 507
public infrastructure improvements and take such other actions as 508
the municipal corporation determines are in its interest and are 509
authorized under sections 5709.40 to 5709.43 of the Revised Code.510

       (B) To make loans to any person, firm, partnership, 511
corporation, joint stock company, association, or trust, and to 512
establish and regulate the terms and conditions with respect to 513
any such loans; provided that an economic development corporation 514
shall not approve any application for a loan unless and until the 515
person applying for said loan shows that the person has applied 516
for the loan through ordinary banking or commercial channels and 517
that the loan has been refused by at least one bank or other 518
financial institution. Nothing in this division shall preclude a 519
county land reutilization corporation from making revolving loans 520
to community development corporations, private entities, or groups521
any person for the purposes contained in the corporation's plan 522
under section 1724.10 of the Revised Code.523

       (C) To purchase, receive, hold, manage, lease, 524
lease-purchase, or otherwise acquire and to sell, convey, 525
transfer, lease, sublease, or otherwise dispose of real and 526
personal property, together with such rights and privileges as may 527
be incidental and appurtenant thereto and the use thereof, 528
including but not restricted to, any real or personal property 529
acquired by the community improvement corporation from time to 530
time in the satisfaction of debts or enforcement of obligations, 531
and to enter into contracts with third parties, including the 532
federal government, the state, any political subdivision, or any 533
other entity. A county land reutilization corporation shall not 534
acquire an interest in real property if such acquisition causes 535
the percentage of unoccupied real property held by the corporation 536
to become less than seventy-five per cent of all real property 537
held by the corporation for reutilization, reclamation, or 538
rehabilitation. For the purposes of this division, "unoccupied" 539
has the same meaning as in section 323.65 of the Revised Code. 540

       (D) To acquire the good will, business, rights, real and 541
personal property, and other assets, or any part thereof, or 542
interest therein, of any persons, firms, partnerships, 543
corporations, joint stock companies, associations, or trusts, and 544
to assume, undertake, or pay the obligations, debts, and 545
liabilities of any such person, firm, partnership, corporation, 546
joint stock company, association, or trust; to acquire, reclaim, 547
manage, or contract for the management of improved or unimproved 548
and underutilized real estate for the purpose of constructing 549
industrial plants, other business establishments, or housing 550
thereon, or causing the same to occur, for the purpose of 551
assembling and enhancing utilization of the real estate, or for 552
the purpose of disposing of such real estate to others in whole or 553
in part for the construction of industrial plants, other business 554
establishments, or housing; and to acquire, reclaim, manage, 555
contract for the management of, construct or reconstruct, alter, 556
repair, maintain, operate, sell, convey, transfer, lease, 557
sublease, or otherwise dispose of industrial plants, business 558
establishments, or housing. 559

       (E) To acquire, subscribe for, own, hold, sell, assign, 560
transfer, mortgage, pledge, or otherwise dispose of the stock, 561
shares, bonds, debentures, notes, or other securities and 562
evidences of interest in, or indebtedness of, any person, firm, 563
corporation, joint stock company, association, or trust, and while 564
the owner or holder thereof, to exercise all the rights, powers, 565
and privileges of ownership, including the right to vote therein, 566
provided that no tax revenue, if any, received by a community 567
improvement corporation shall be used for such acquisition or 568

       (F) To mortgage, pledge, or otherwise encumber any property 570
acquired pursuant to the powers contained in divisions (C), (D), 571
or (E) of this section.572

       (G) Nothing in this section shall limit the right of a 573
community improvement corporation to become a member of or a 574
stockholder in a corporation formed under Chapter 1726. of the 575
Revised Code.576

       (H) To serve as an agent for grant applications and for the 577
administration of grants, or to make applications as principal for 578
grants for county land reutilization corporations.579

       (I) To exercise the powers enumerated under Chapter 5722. of 580
the Revised Code on behalf of a county that organizes or contracts 581
with a county land reutilization corporation.582

       (J) To engage in code enforcement and nuisance abatement, 583
including, but not limited to, cutting grass and weeds, boarding 584
up vacant or abandoned structures, and demolishing condemned 585
structures on properties that are subject to a delinquent tax or 586
assessment lien, or property for which a municipal corporation or 587
township has contracted with a county land reutilization 588
corporation to provide code enforcement or nuisance abatement 589

       (K) To charge fees or exchange in-kind goods or services for 591
services rendered to political subdivisions and other persons or 592
entities for whom services are rendered.593

       (L) To employ and provide compensation for an executive 594
director who shall manage the operations of a county land 595
reutilization corporation and employ others for the benefit of the 596
corporation as approved and funded by the board of directors. No 597
employee of the corporation is or shall be deemed to be an 598
employee of the political subdivision for whose benefit the 599
corporation is organized solely because the employee is employed 600
by the corporation;601

       (M) To purchase tax certificates at auction, negotiated sale, 602
or from a third party who purchased and is a holder of one or more 603
tax certificates issued pursuant to sections 5721.30 to 5721.43 of 604
the Revised Code;605

       (N) To be assigned a mortgage on real property from a 606
mortgagee in lieu of acquiring such real property subject to a 607
mortgage. 608

       (O) To do all acts and things necessary or convenient to 609
carry out the purposes of section 1724.01 of the Revised Code and 610
the powers especially created for a community improvement 611
corporation in Chapter 1724. of the Revised Code, including, but 612
not limited to, contracting with the federal government, the state 613
or any political subdivision, and any other party, whether 614
nonprofit or for-profit.615

       The powers enumerated in this chapter shall not be construed 616
to limit the general powers of a community improvement 617
corporation. The powers granted under this chapter are in addition 618
to those powers granted by any other chapter of the Revised Code, 619
but, as to a county land reutilization corporation, shall be used 620
only for the purposes enumerated under division (B)(2) of section 621
1724.01 of the Revised Code. 622

       Sec. 1724.03. (A) After the articles of incorporation have 623
been filed, and at the first meeting of the board of directors of 624
a county land reutilization corporation, the board shall adopt 625
regulations for the government of the corporation, the conduct of 626
its affairs, and the management of its property, consistent with 627
law and the articles. The content of the regulations shall be 628
governed by section 1702.11 of the Revised Code to the extent not 629
inconsistent with this chapter. 630

       (B) The board of directors of a county land reutilization 631
corporation shall be composed of at least five, seven, or nine632
members, including the county treasurer, at least two of the 633
members of the board of county commissioners, one representative 634
of the largest municipal corporation, based on the population 635
according to the most recent federal decennial census, that is 636
located in the county, one representative of a township with a 637
population of at least ten thousand in the unincorporated area of 638
the township according to the most recent federal decennial 639
census, if such a township exists in the county, and twoany 640
remaining members selected by the treasurer and the county 641
commissioners who are members of the corporation's board and 642
approved by a majority of the chief executive officers of all 643
municipal corporations the majority of the territory of which is 644
located in the county. The treasurer and county commissioners who 645
are members of the board of directors shall establish the process 646
by which such approval shall be obtained. The failure, refusal, or 647
inability of any chief executive officer to respond in writing to 648
any request for approval of the members selected by the treasurer 649
and county commissioners within fourteen days shall be deemed an 650
approval by the chief executive officer. Any such failure, 651
refusal, or inability to respond shall not prevent the corporation 652
from exercising its powers and authority under this chapter. At 653
least one board member shall have private sector or nonprofit 654
experience in rehabilitation or real estate acquisitions. A county 655
treasurer and the county commissioners each may appoint a 656
representative, as a director of the corporation, to act for the 657
officer at any of the meetings of the corporation. Except as may 658
otherwise be authorized by the regulations of the corporation, all 659
members of the board of directors shall serve without 660
compensation, but shall be reimbursed for actual and necessary 661
expenses. 662

       Sec. 1724.04.  A county having a population of more than one 663
million two hundred thousand, or between seventy-eight thousand 664
and eighty-one thousand, as of the most recent decennial census 665
that elects under section 5722.02 of the Revised Code to adopt and 666
implement the procedures set forth in sections 5722.02 to 5722.15 667
of the Revised Code may organize a county land reutilization 668
corporation under this chapter and Chapter 1702. of the Revised 669
Code for the purpose of exercising the powers granted to a county 670
under Chapter 5722. of the Revised Code. The county treasurer of 671
the county for the benefit of which the corporation is being 672
organized shall be the incorporator of the county land 673
reutilization corporation. The form of the articles of 674
incorporation of the corporation shall be approved by resolution 675
of the board of county commissioners of the county.676

       When the articles of incorporation of any community 677
improvement corporation, or any amendment, amended articles, 678
merger, or consolidation which provides for the creation of such a 679
corporation, are deposited for filing and recording in the office 680
of the secretary of state, the secretary of state shall submit 681
them to the attorney general for examination. If such articles, 682
amendment, amended articles, merger, or consolidation, are found 683
by the attorney general to be in accordance with Chapter 1724. of 684
the Revised Code, and not inconsistent with the constitution and 685
laws of the United States and of this state, the attorney general 686
shall endorse thereon the attorney general's approval and deliver 687
them to the secretary of state, who shall file and record them 688
pursuant to section 1702.07 of the Revised Code.689

       Sec. 1724.05.  Each community improvement corporation shall 690
prepare an annual financial report that conforms to rules 691
prescribed by the auditor of state pursuant to section 117.20 of 692
the Revised Code, that is prepared according to generally accepted 693
accounting principles, and that is certified by the board of 694
directors of the corporation or its treasurer or other chief 695
fiscal officer to the best knowledge and belief of those persons 696
certifying the report. The financial report shall be filed with 697
the auditor of state within one hundred twenty days following the 698
last day of the corporation's fiscal year, unless the auditor of 699
state extends that deadline. The auditor of state may establish 700
terms and conditions for granting any extension of that deadline.701
The financial report shall be published on the corporation's web 702
site, or if the corporation does not have a web site, on the web 703
site of the county in which the corporation is located.704

       Each community improvement corporation shall submit to audits 705
by the auditor of state, the scope and frequency of which shall be 706
in accordance with section 117.11 of the Revised Code as if the 707
corporation were a public office subject to that section. However, 708
a community improvement corporation may request in accordance with 709
section 115.56 of the Revised Code, as if the corporation were a 710
public office subject to that section, the performance of any of 711
those audits by an independent certified public accountant or firm 712
of certified public accountants.713

       The auditor of state is authorized to receive and file the 714
annual financial reports required by this section and the reports 715
of all audits performed in accordance with this section. The 716
auditor of state shall analyze those annual financial reports and 717
the reports of those audits to determine whether the activities of 718
a community improvement corporation involved are in accordance 719
with this chapter.720

       Sec. 5722.22.  A county land reutilization corporation shall721
is not be liable for damages arising from a, or subject to 722
equitable remedies, for breach of a common law duty, or for723
violation of sections 3737.87 to 3737.891 of the Revised Code or 724
Chapter 3704., 3734., 3745., 3746., 3750., 3751., 3752., 6101., or 725
6111. of the Revised Code or any rule adopted or order, permit, 726
license, variance, or plan approval issued under any of those 727
chapters that is or was committed by another person in connection 728
with a parcel of land acquired by the county land reutilization 729
corporation. 730

       Section 2.  That existing sections 1.62, 135.35, 323.78, 731
1724.02, 1724.03, 1724.04, 1724.05, and 5722.22 of the Revised 732
Code are hereby repealed.733