As Passed by the House

128th General Assembly Regular Session 2009-2010

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 

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A BILL

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

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

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
charter.	43

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
States.	55

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
obligations.	60

(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
instrumentalities.	69

(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
Code;	73

(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
state.	129

(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
committee.	201

(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
securities.	236

(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
prohibited.	265

(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; and	487

(2) If the community improvement corporation is a county land	488
reutilization corporation, the corporation may request, by	489
resolution:	490

(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; and	495

(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; or	504

(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 groups	521
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
subscription.	569

(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
assistance.	590

(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 nine	632
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 shall	721
is not be liable for damages arising from a, or subject to	722
equitable remedies, for breach of a common law duty, or for	723
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