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| To amend section 131.35 and to enact sections 127.163 | 1 |
| and 124.164 of the Revised Code to limit the | 2 |
| Controlling Board's authority to approve the | 3 |
| expenditure of certain funds and to require state | 4 |
| agencies to provide certain information to the | 5 |
| Controlling Board regarding requested purchases | 6 |
| from out-of-state suppliers. | 7 |
| Section 1. That section 131.35 be amended and sections | 8 |
| 127.163 and 127.164 of the Revised Code be enacted to read as | 9 |
| follows: | 10 |
| Sec. 127.163. At the time an agency submits a request to the | 11 |
| controlling board to approve the making of a purchase, if the | 12 |
| requested purchase is to be made from a supplier who is not | 13 |
| headquartered in this state but has a presence in this state, the | 14 |
| agency shall include in the request the following information: | 15 |
| (A) The address or addresses of the supplier's places of | 16 |
| business in this state; | 17 |
| (B) The total number of employees the supplier employs in | 18 |
| each of its places of business in this state; | 19 |
| (C) The percentage of the requested purchase to be completed | 20 |
| by employees of the supplier located in this state; | 21 |
| (D) A list of any suppliers, subcontractors, or other | 22 |
| entities the supplier intends to use to fulfill the requested | 23 |
| purchase that includes all of the following: | 24 |
| (1) The address or addresses of the places of business in | 25 |
| this state of each potential supplier, subcontractor, or entity; | 26 |
| (2) The number of employees that each potential supplier, | 27 |
| subcontractor, or entity employs in each of its places of business | 28 |
| in this state; | 29 |
| (3) The percentage of the requested purchase to be completed | 30 |
| by employees of the potential supplier, subcontractor, or entity | 31 |
| located in this state. | 32 |
| Sec. 127.164. (A) Prior to submitting a request to approve | 33 |
| the making of a purchase to the controlling board, an agency shall | 34 |
| contact any entity headquartered in this state that the agency | 35 |
| approached related to the proposed purchase or to whom the agency | 36 |
| sent a request for proposals but who did not respond to the | 37 |
| request for proposals and ascertain why the entity did not | 38 |
| respond. | 39 |
| (B) At the time an agency submits a request to the | 40 |
| controlling board to approve the making of a purchase, the agency | 41 |
| shall submit to the board, as part of the request, the information | 42 |
| that the agency collected under division (A) of this section. | 43 |
| Sec. 131.35. (A) With respect to the federal funds received | 44 |
| into any fund of the state from which transfers may be made under | 45 |
| division (D) of section 127.14 of the Revised Code: | 46 |
| (1) No state agency may make expenditures of any federal | 47 |
| funds, whether such funds are advanced prior to expenditure or as | 48 |
| reimbursement, unless such expenditures are made pursuant to | 49 |
| specific appropriations of the general assembly, are authorized by | 50 |
| the controlling board pursuant to division (A)(5) of this section, | 51 |
| or are authorized by an executive order issued in accordance with | 52 |
| section 107.17 of the Revised Code, and until an allotment has | 53 |
| been approved by the director of budget and management. All | 54 |
| federal funds received by a state agency shall be reported to the | 55 |
| director within fifteen days of the receipt of such funds or the | 56 |
| notification of award, whichever occurs first. The director shall | 57 |
| prescribe the forms and procedures to be used when reporting the | 58 |
| receipt of federal funds. | 59 |
| (2) If the federal funds received are greater than the amount | 60 |
| of such funds appropriated by the general assembly for a specific | 61 |
| purpose, the total appropriation of federal and state funds for | 62 |
| such purpose shall remain at the amount designated by the general | 63 |
| assembly, except that the expenditure of federal funds received in | 64 |
| excess of such specific appropriation may be authorized by the | 65 |
| controlling board, subject to division (D) of this section. | 66 |
| (3) To the extent that the expenditure of excess federal | 67 |
| funds is authorized, the controlling board may transfer a like | 68 |
| amount of general revenue fund appropriation authority from the | 69 |
| affected agency to the emergency purposes appropriation of the | 70 |
| controlling board, if such action is permitted under federal | 71 |
| regulations. | 72 |
| (4) Additional funds may be created by the controlling board | 73 |
| to receive revenues not anticipated in an appropriations act for | 74 |
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the biennium in which such new revenues are received. | 75 |
| Subject to division (D) of this section, expenditures from such | 76 |
| additional funds may be authorized by the controlling board, but | 77 |
| such authorization shall not extend beyond the end of the biennium | 78 |
| in which such funds are created. | 79 |
| (5) Controlling board authorization for a state agency to | 80 |
| make an expenditure of federal funds constitutes authority for the | 81 |
| agency to participate in the federal program providing the funds, | 82 |
| and the agency is not required to obtain an executive order under | 83 |
| section 107.17 of the Revised Code to participate in the federal | 84 |
| program. | 85 |
| (B) With respect to nonfederal funds received into the | 86 |
| waterways safety fund, the wildlife fund, and any fund of the | 87 |
| state from which transfers may be made under division (D) of | 88 |
| section 127.14 of the Revised Code: | 89 |
| (1) No state agency may make expenditures of any such funds | 90 |
| unless the expenditures are made pursuant to specific | 91 |
| appropriations of the general assembly. | 92 |
| (2) If the receipts received into any fund are greater than | 93 |
| the amount appropriated, the appropriation for that fund shall | 94 |
| remain at the amount designated by the general assembly or, | 95 |
| subject to division (D) of this section, as increased and approved | 96 |
| by the controlling board. | 97 |
| (3) Additional funds may be created by the controlling board | 98 |
| to receive revenues not anticipated in an appropriations act for | 99 |
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the biennium in which such new revenues are received. | 100 |
| Subject to division (D) of this section, expenditures from such | 101 |
| additional funds may be authorized by the controlling board, but | 102 |
| such authorization shall not extend beyond the end of the biennium | 103 |
| in which such funds are created. | 104 |
| (C) The controlling board shall not authorize more than ten | 105 |
| per cent of additional spending from the occupational licensing | 106 |
| and regulatory fund, created in section 4743.05 of the Revised | 107 |
| Code, in excess of any appropriation made by the general assembly | 108 |
| to a licensing agency except an appropriation for costs related to | 109 |
| the examination or reexamination of applicants for a license. As | 110 |
| used in this division, "licensing agency" and "license" have the | 111 |
| same meanings as in section 4745.01 of the Revised Code. | 112 |
| (D) The amount of any expenditure authorized under division | 113 |
| (A)(2) or (4) or (B)(2) or (3) of this section for a specific or | 114 |
| related purpose or item in any fiscal year shall not exceed an | 115 |
| amount greater than one per cent of the general revenue fund | 116 |
| appropriations for that fiscal year. | 117 |
| Section 2. That existing section 131.35 of the Revised Code | 118 |
| is hereby repealed. | 119 |