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As Passed by the Senate
122nd General Assembly
Regular Session
1997-1998 | Am. Sub. H. B. No. 426 |
REPRESENTATIVES CLANCY-CATES-BATEMAN-GARCIA-GRENDELL-PRINGLE-
SCHULER-WILLIAMS-CORBIN-SAWYER-REID-SCHUCK-VESPER-VAN VYVEN-
ROMAN-HOTTINGER-PADGETT-TAYLOR-LEWIS-CALLENDER-CAREY-
OPFER-MOTTLEY-TERWILLEGER-SULZER-O'BRIEN-OGG-WINKLER-
CORE-BUCHY-LOGAN-KASPUTIS-GARDNER-HARRIS-METZGER-HAINES-
THOMAS-DAMSCHRODER-BRADING-MYERS-HOUSEHOLDER-MASON-
AMSTUTZ-PATTON-LUCAS-OLMAN-SALERNO-VERICH-COLONNA-
SENATORS GARDNER-NEIN-FINAN
A BILL
To amend sections 1907.24, 2303.201, 2743.70, 2949.091, 3109.14, 3316.03,
5705.12, 5705.29, 5705.35, 5705.36, 5705.38, 5705.41, 5709.61, 5733.33,
5747.51, and 5747.62; to amend, for the purpose of adopting a
new section number as indicated in parentheses,
section 5705.13
(5705.121); to enact new section 5705.13 and section 5705.131; and to
repeal sections 305.23, 505.83, and 505.831 of the Revised Code
to permit taxing authorities of subdivisions
to create accounts in which
funds may be reserved for budget stabilization,
self-insurance claim payments, the payment of
claims under retrospective
ratings plans for
workers' compensation, accumulated employee
leave, capital
projects, and nonexpendable trusts; to specify that certain amounts in
such
reserves shall not affect revenue distributions
to certain
subdivisions through local government
funds;
to change the conditions under which a subdivision's spending
authority must be changed when its projected revenue changes;
to permit all subdivisions to authorize purchases in excess of
$5,000 for certain goods and services without the necessity of
authorizing each individual purchase;
to alter
the definition of a large manufacturing facility eligible to
receive tax incentives under the laws governing enterprise
zones, and to allow purchasers of certain large manufacturing facilities
to continue receiving credits against the corporate franchise
tax that the seller was receiving for the purchase of new
manufacturing machinery and equipment;
and to change the time by which certain fees collected by clerks of
court must be transmitted to the Treasurer of State or deposited
into the county treasury.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1907.24, 2303.201, 2743.70, 2949.091, 3109.14,
3316.03, 5705.12, 5705.29, 5705.35,
5705.36, 5705.38, 5705.41, 5709.61, 5733.33, 5747.51, and 5747.62 be amended,
section 5705.13
(5705.121) be amended for the purpose of adopting a new section
number as indicated in parentheses, and new section 5705.13 and section
5705.131 of the Revised Code be enacted to read as follows:
Sec. 1907.24. (A) Subject to division (C) of this section, a county court
shall fix and tax fees and costs as follows:
(1) The county court shall require an advance deposit for the filing of
any new civil action or proceeding when required by division
(C) of this section and, in all other cases, shall establish a
schedule of fees and costs to be taxed in any civil or criminal action or
proceeding.
(2) The county court by rule may require an advance
deposit for the filing of a civil action or proceeding and publication fees
as provided in section 2701.09
of the Revised Code. The court may waive an advance deposit requirement
upon the presentation of an affidavit or other evidence that
establishes that a party is unable to make the requisite deposit.
(3) When a party demands a jury trial in a civil action or proceeding,
the county court may require the party to make an advance deposit as fixed by
rule of court,
unless the court concludes, on the basis of an affidavit or other evidence
presented by the party, that the party is unable to make the requisite
deposit. If a jury is called, the county court shall tax the fees of a jury
as costs.
(4) In a civil or criminal action or proceeding, the county court shall
fix the fees of witnesses in accordance with sections 2335.06 and 2335.08 of
the Revised Code.
(5) A county court may tax as part of the costs in a trial of the cause,
in an amount fixed by rule of court, a reasonable charge for driving, towing,
carting, storing, keeping,
and preserving motor vehicles and other personal property recovered or seized
in a proceeding.
(6) The court shall preserve chattel property seized under a writ or
process issued by the court pending final disposition for the benefit of all
interested persons. The court may place the chattel property in storage when
necessary or proper for its preservation. The custodian of chattel property
so stored shall not be required to part with the possession of the property
until a reasonable charge, to be fixed by the court, is paid.
(7) The county court, as it determines, may refund all deposits and
advance payments of fees and costs, including those
for jurors and summoning jurors, when they have been paid by
the losing party.
(8) The court may tax as part of costs charges for the publication of
legal notices required by statute or order of court, as provided by section
7.13 of
the Revised Code.
(B)(1) The county court may determine that, for the efficient
operation of the court, additional funds are necessary to acquire and pay for
special projects of the court including, but not limited to, the acquisition
of additional facilities or the rehabilitation of existing facilities, the
acquisition of equipment, the hiring and training of staff, community service
programs, mediation or dispute resolution services, the employment of
magistrates, and other related services. Upon that determination, the court
by rule may charge a fee, in addition to all other
court costs, on the filing of each criminal cause, civil action or proceeding,
or judgment by confession.
If the county court offers a special program or service in cases of a
specific type, the county court by rule may assess an additional charge in a
case of that type, over and above court costs, to cover the special program or
service. The county court shall adjust the special assessment periodically,
but not retroactively, so that the amount assessed in those cases does not
exceed the actual cost of providing the service or program.
All moneys collected under division (B)
of this section shall be paid to the county treasurer for deposit into either
a general special projects fund or a fund established for a specific special
project. Moneys from a fund of that nature shall be disbursed upon an order
of
the court in an amount no greater than the actual cost to the court of a
project. If a specific fund is terminated because of the discontinuance of a
program or service established under division
(B) of this section, the county court may
order that moneys remaining in the fund be transferred to an account
established under this division for a similar purpose.
(2) As used in division (B) of this section:
(a) "Criminal cause" means a charge alleging the violation of a
statute or ordinance, or subsection of a statute or ordinance, that requires a
separate finding of fact or a separate plea before disposition and of which
the defendant may be found guilty, whether filed as part of a multiple charge
on a
single summons, citation, or complaint or as a separate charge on a single
summons, citation, or complaint. "Criminal cause" does not include separate
violations of the same statute or ordinance, or subsection of the same statute
or ordinance, unless each charge is filed on a separate summons, citation, or
complaint.
(b) "Civil action or proceeding" means any civil litigation that
must be determined by judgment entry.
(C) Subject to division (C)(E) of this section, prior to
January 1, 1993, and on and after January 1,
2003, the county court shall collect the sum of four dollars as
additional filing fees in each new civil action or proceeding for
the charitable public purpose of providing financial assistance
to legal aid societies that operate within the state. Subject to division
(C)(E) of this section, from January 1, 1993, through December
31, 2002, the county court
shall collect in all its divisions except the small claims
division the sum of fifteen dollars as additional filing fees in
each new civil action or proceeding for the charitable public
purpose of providing financial assistance to legal aid societies
that operate within the state. Subject to division (C)(E) of
this section, from January 1, 1993, through
December 31, 2002, the county court shall collect in its small
claims division the sum of seven dollars as additional filing
fees in each new civil action or proceeding for the charitable
public purpose of providing financial assistance to legal aid
societies that operate within the state. This division does not
apply to any execution on a judgment, proceeding in aid of
execution, or other post-judgment proceeding arising out of a
civil action. The filing fees required to be collected under
this division shall be in addition to any other court costs
imposed in the action or proceeding and shall be collected at the
time of the filing of the action or proceeding. The court shall
not waive the payment of the additional filing fees in a new
civil action or proceeding unless the court waives the advanced
payment of all filing fees in the action or proceeding. All such
moneys COLLECTED DURING A MONTH shall be transmitted on OR
BEFORE the first business TWENTIETH day of each
THE FOLLOWING
month by the clerk of the court to the treasurer of state. The
moneys then shall be deposited by the treasurer of state to the
credit of the legal aid fund established under section 120.52 of
the Revised Code.
The court may retain up to one per cent of the moneys it
collects under this division to cover administrative costs,
including the hiring of any additional personnel necessary to
implement this division.
(D) The county court shall establish by rule a schedule of fees
for miscellaneous services performed by the county court or any of its judges
in accordance with law. If judges of the court of common pleas perform
similar services, the fees prescribed in the schedule shall not exceed the
fees for those services prescribed by the court of common pleas.
(C)(E) Under the circumstances described in sections 2969.21
to 2969.27 of the Revised Code, the clerk of the county court shall charge the
fees and perform the other duties specified in those sections.
Sec. 2303.201. (A)(1) The court of common pleas of any
county may determine that for the efficient operation of the
court additional funds are required to computerize the court, to
make available computerized legal research services, or to do
both. Upon making a determination that additional funds are
required for either or both of those purposes, the court shall
authorize and direct the clerk of the court of common pleas to
charge one additional fee, not to exceed three dollars, on the
filing of each cause of action or appeal under divisions (A),
(Q), and (U) of section 2303.20 of the Revised Code.
(2) All fees collected under division (A)(1) of this
section shall be paid to the county treasurer. The treasurer
shall place the funds from the fees in a separate fund to be
disbursed, upon an order of the court, in an amount not greater
than the actual cost to the court of procuring and maintaining
computerization of the court, computerized legal research
services, or both.
(3) If the court determines that the funds in the fund
described in division (A)(2) of this section are more than
sufficient to satisfy the purpose for which the additional fee
described in division (A)(1) of this section was imposed, the
court may declare a surplus in the fund and expend those surplus
funds for other appropriate technological expenses of the court.
(B)(1) The court of common pleas of any county may
determine that, for the efficient operation of the court,
additional funds are required to computerize the office of the
clerk of the court of common pleas and, upon that determination,
authorize and direct the clerk of the court of common pleas to
charge an additional fee, not to exceed ten dollars, on the
filing of each cause of action or appeal, on the filing,
docketing, and endorsing of each certificate of judgment, or on
the docketing and indexing of each aid in execution or petition
to vacate, revive, or modify a judgment under divisions (A), (P),
(Q), (T), and (U) of section 2303.20 of the Revised Code.
Subject to division (B)(2) of this section, all moneys collected
under division (B)(1) of this section shall be paid to the county
treasurer to be disbursed, upon an order of the court of common
pleas and subject to appropriation by the board of county
commissioners, in an amount no greater than the actual cost to
the court of procuring and maintaining computer systems for the
office of the clerk of the court of common pleas.
(2) If the court of common pleas of a county makes the
determination described in division (B)(1) of this section, the
board of county commissioners of that county may issue one or
more general obligation bonds for the purpose of procuring and
maintaining the computer systems for the office of the clerk of
the court of common pleas. In addition to the purposes stated in
division (B)(1) of this section for which the moneys collected
under that division may be expended, the moneys additionally may
be expended to pay debt charges on and financing costs related to
any general obligation bonds issued pursuant to division (B)(2)
of this section as they become due. General obligation bonds
issued pursuant to division (B)(2) of this section are Chapter
133. securities.
(C) Prior to January 1, 1993, and on and after January 1,
2003, the court of common pleas shall collect the sum of
four
dollars as additional filing fees in each new civil action or
proceeding for the charitable public purpose of providing
financial assistance to legal aid societies that operate within
the state. From January 1, 1993, through December 31,
2002, the
court of common pleas shall collect the sum of fifteen dollars as
additional filing fees in each new civil action or proceeding for
the charitable public purpose of providing financial assistance
to legal aid societies that operate within the state. This
division does not apply to proceedings concerning annulments,
dissolutions of marriage, divorces, legal separation, spousal
support, marital property or separate property distribution,
support, or other domestic relations matters; to a juvenile
division of a court of common pleas; to a probate division of a
court of common pleas, except that the additional filing fees
shall apply to name change, guardianship, and adoption
proceedings; or to an execution on a judgment, proceeding in aid
of execution, or other post-judgment proceeding arising out of a
civil action. The filing fees required to be collected under
this division shall be in addition to any other filing fees
imposed in the action or proceeding and shall be collected at the
time of the filing of the action or proceeding. The court shall
not waive the payment of the additional filing fees in a new
civil action or proceeding unless the court waives the advanced
payment of all filing fees in the action or proceeding. All such
moneys COLLECTED DURING A MONTH shall be transmitted on OR
BEFORE the first business TWENTIETH day of each
THE FOLLOWING
month by the clerk of the court to the treasurer of state. The
moneys then shall be deposited by the treasurer of state to the
credit of the legal aid fund established under section 120.52 of
the Revised Code.
The court may retain up to one per cent of the moneys it
collects under this division to cover administrative costs,
including the hiring of any additional personnel necessary to
implement this division.
(D) On and after the thirtieth day after the effective date of
this amendment DECEMBER 9, 1994, the
court of common pleas shall collect the sum
of thirty-two dollars as additional filing fees in each new
action or proceeding for annulment, divorce, or dissolution of
marriage for the purpose of funding shelters for victims of
domestic violence pursuant to sections 3113.35 to 3113.39 of the
Revised Code. The filing fees required to be collected under
this division shall be in addition to any other filing fees
imposed in the action or proceeding and shall be collected at the
time of the filing of the action or proceeding. The court shall
not waive the payment of the additional filing fees in a new
action or proceeding for annulment, divorce, or dissolution of
marriage unless the court waives the advanced payment of all
filing fees in the action or proceeding. On OR BEFORE the first
business TWENTIETH
day of each month, all moneys collected DURING THE IMMEDIATELY PRECEDING
MONTH pursuant to this division
shall
be deposited by the clerk of the court into the county treasury
in the special fund used for deposit of additional marriage
license fees as described in section 3113.34 of the Revised Code.
Upon their deposit into the fund, the moneys shall be retained
in the fund and expended only as described in section 3113.34 of
the Revised Code.
Sec. 2743.70. (A)(1) The court, in which any person is
convicted of or pleads guilty to any offense other than a traffic
offense that is not a moving violation, shall impose the
following sum as costs in the case in addition to any other court
costs that the court is required by law to impose upon the
offender:
(a) Thirty dollars, if the offense is a felony;
(b) Nine dollars, if the offense is a misdemeanor.
The court shall not waive the payment of the thirty or nine
dollars court costs, unless the court determines that the
offender is indigent and waives the payment of all court costs
imposed upon the indigent offender. All such moneys shall be
transmitted on the first business day of each month by the clerk
of the court to the treasurer of state and deposited by the
treasurer in the reparations fund.
(2) The juvenile court in which a child is found to be a
delinquent child or a juvenile traffic offender for an act which,
if committed by an adult, would be an offense other than a
traffic offense that is not a moving violation, shall impose the
following sum as costs in the case in addition to any other court
costs that the court is required or permitted by law to impose
upon the delinquent child or juvenile traffic offender:
(a) Thirty dollars, if the act, if committed by an adult,
would be a felony;
(b) Nine dollars, if the act, if committed by an adult,
would be a misdemeanor.
The thirty or nine dollars court costs shall be collected
in all cases unless the court determines the juvenile is indigent
and waives the payment of all court costs, or enters an order on
its journal stating that it has determined that the juvenile is
indigent, that no other court costs are to be taxed in the case,
and that the payment of the thirty or nine dollars court costs is
waived. All such moneys COLLECTED DURING A MONTH shall be transmitted
on OR BEFORE the first
business TWENTIETH day of each THE FOLLOWING month by
the clerk of the court to the
treasurer of state and deposited by the treasurer in the
reparations fund.
(B) Whenever a person is charged with any offense other
than a traffic offense that is not a moving violation and posts
bail pursuant to sections 2937.22 to 2937.46 of the Revised Code,
Criminal Rule 46, or Traffic Rule 4, the court shall add to the
amount of the bail the thirty or nine dollars required to be paid
by division (A)(1) of this section. The thirty or nine dollars
shall be retained by the clerk of the court until the person is
convicted, pleads guilty, forfeits bail, is found not guilty, or
has the charges against him dismissed. If the person is
convicted, pleads guilty, or forfeits bail, the clerk shall
transmit the thirty or nine dollars to the treasurer of state,
who shall deposit it in the reparations fund. If the person is
found not guilty or the charges against him are dismissed, the
clerk shall return the thirty or nine dollars to the person.
(C) No person shall be placed or held in jail for failing
to pay the additional thirty or nine dollars court costs or bail
that are required to be paid by this section.
(D) As used in this section:
(1) "Moving violation" means any violation of any statute
or ordinance, other than section 4513.263 of the Revised Code or
an ordinance that is substantially equivalent to that section,
that regulates the operation of vehicles, streetcars, or
trackless trolleys on highways or streets or that regulates size
or load limitations or fitness requirements of vehicles. "Moving
violation" does not include the violation of any statute or
ordinance that regulates pedestrians or the parking of vehicles.
(2) "Bail" means cash, a check, a money order, a credit
card, or any other form of money that is posted by or for an
offender pursuant to sections 2937.22 to 2937.46 of the Revised
Code, Criminal Rule 46, or Traffic Rule 4 to prevent the offender
from being placed or held in a detention facility, as defined in
section 2921.01 of the Revised Code.
Sec. 2949.091. (A)(1) The court, in which any person is
convicted of or pleads guilty to any offense other than a traffic
offense that is not a moving violation, shall impose the sum of
eleven dollars as costs in the case in addition to any other
court costs that the court is required by law to impose upon the
offender. All such moneys COLLECTED DURING A MONTH shall be
transmitted on OR BEFORE the first
business TWENTIETH day of each THE FOLLOWING month by
the clerk of the court to the
treasurer of state and deposited by the treasurer of state into
the general revenue fund. The court shall not waive the payment
of the additional eleven dollars court costs, unless the court
determines that the offender is indigent and waives the payment
of all court costs imposed upon the indigent offender.
(2) The juvenile court, in which a child is found to be a
delinquent child or a juvenile traffic offender for an act which,
if committed by an adult, would be an offense other than a
traffic offense that is not a moving violation, shall impose the
sum of eleven dollars as costs in the case in addition to any
other court costs that the court is required or permitted by law
to impose upon the delinquent child or juvenile traffic offender.
All such moneys COLLECTED DURING A MONTH shall be transmitted on OR
BEFORE the first business TWENTIETH day of
each THE FOLLOWING month by the clerk of the court to the
treasurer of state
and deposited by the treasurer of state into the general revenue
fund. The eleven dollars court costs shall be collected in all
cases unless the court determines the juvenile is indigent and
waives the payment of all court costs, or enters an order on its
journal stating that it has determined that the juvenile is
indigent, that no other court costs are to be taxed in the case,
and that the payment of the eleven dollars court costs is waived.
(B) Whenever a person is charged with any offense other
than a traffic offense that is not a moving violation and posts
bail, the court shall add to the amount of the bail the eleven
dollars required to be paid by division (A)(1) of this section.
The eleven dollars shall be retained by the clerk of the court
until the person is convicted, pleads guilty, forfeits bail, is
found not guilty, or has the charges against him dismissed. If
the person is convicted, pleads guilty, or forfeits bail, the
clerk shall transmit the eleven dollars ON OR BEFORE THE TWENTIETH DAY OF
THE MONTH FOLLOWING THE MONTH IN WHICH THE PERSON WAS CONVICTED, PLEADED
GUILTY, OR FORFEITED BAIL to the treasurer of
state, who shall deposit it into the general revenue fund. If
the person is found not guilty or the charges against him are
dismissed, the clerk shall return the eleven dollars to the
person.
(C) No person shall be placed or held in a detention
facility for failing to pay the additional eleven dollars court
costs or bail that are required to be paid by this section.
(D) As used in this section:
(1) "Moving violation" and "bail" have the same meanings
as in section 2743.70 of the Revised Code.
(2) "Detention facility" has the same meaning as in
section 2921.01 of the Revised Code.
Sec. 3109.14. As used in this section, "birth record" and
"certification of birth" have the meanings given in section
3705.01 of the Revised Code.
The director of health, a person authorized by the
director, a local commissioner of health, or a local registrar of
vital statistics shall charge and collect for each copy of a
birth record and for each certification of birth a fee of two
dollars, and for each copy of a death record a fee of two
dollars, in addition to the fee imposed by section 3705.24 or any
other section of the Revised Code. A local commissioner of
health or a local registrar of vital statistics may retain an
amount of each additional fee that he collects COLLECTED, not to
exceed
three per cent of the amount of the additional fee, to be used
for costs directly related to the collection of the fee and the
forwarding of the fee to the treasurer of state.
Upon the filing for a divorce decree under section 3105.10
or a decree of dissolution under section 3105.65 of the Revised
Code, a court of common pleas shall charge and collect a fee of
ten dollars in addition to any other court costs or fees. The
county clerk of courts may retain an amount of each additional
fee that he collects COLLECTED, not to exceed three per cent of
the amount
of the additional fee, to be used for costs directly related to
the collection of the fee and the forwarding of the fee to the
treasurer of state.
The additional fees collected, but not retained, under this
section during each month shall be forwarded not later than the
fifth TWENTIETH day of the immediately following month to the
treasurer of
state, who shall deposit the fees in the state treasury to the
credit of the children's trust fund, which is hereby created.
The treasurer of state shall invest the moneys in the fund,
and all earnings resulting from investment of the fund shall be
credited to the fund, except that actual administrative costs
incurred by the treasurer of state in administering the fund may
be deducted from the earnings resulting from investments. The
amount that may be deducted shall not exceed three per cent of
the total amount of fees credited to the fund in each fiscal
year, except that the children's trust fund board may approve an
amount for actual administrative costs exceeding three per cent
but not exceeding four per cent of such amount. The balance of
the investment earnings shall be credited to the fund. Moneys
credited to the fund shall be used only for the purposes
described in sections 3109.17 and 3109.18 of the Revised Code.
Sec. 3316.03. (A) The auditor of state shall declare a school district to
be in a state of fiscal watch if the auditor of state determines that
division (A)(1), (2), or (3) of this
section applies to the school district:
(1) All of the following conditions are satisfied with respect to
the school district:
(a) An operating deficit has been certified for the
current fiscal year by the auditor of state under section
3313.483 of the Revised Code, and the certified
operating deficit exceeds eight per cent of the school
district's general fund revenue for the preceding fiscal
year;
(b) The unencumbered cash balance in the school
district's general fund at the close of the preceding fiscal
year, less any advances of property taxes, was less than eight
per cent of the expenditures made from the general fund for the
preceding fiscal year;
(c) A majority of the voting electors have not voted in
favor of levying
a tax under section 5705.194 or 5705.21 or Chapter 5748. of the Revised Code
that the auditor of state expects will raise enough additional revenue in the
next succeeding fiscal year that divisions
(A)(1)(a) and (b) of this section will not apply
to the district in such next succeeding fiscal year.
(2) The school district has
outstanding securities issued under division
(A)(4) of section 3316.06 of
the Revised
Code and its financial planning
and supervision commission has been terminated under section
3316.16 of the Revised
Code.
(3) The school district has received an advancement under section
3316.20 of the Revised Code.
(B) The auditor of state, after consulting with the superintendent of public
instruction, shall issue an order declaring a school district to be in a
state
of fiscal emergency if the auditor of state
determines that division (B)(1), (2), (3), or (4) of this section
applies to the school district:
(1) All of the following conditions are satisfied with respect to the
school district:
(a) The board of education of the school district is not
able to demonstrate, to the auditor of state's satisfaction, the
district's ability to repay outstanding loans received pursuant
to section 3313.483 of the Revised Code or to repay securities issued pursuant
to section 133.301 of the Revised Code in accordance with
applicable repayment schedules unless the board requests
additional loans under section 133.301 of the
Revised Code in an aggregate principal
amount exceeding fifty per cent of the sum of the
following:
(i) The aggregate original principal
amount of loans received in the preceding fiscal year under
section 3313.483 of the Revised Code;
(ii) The aggregate amount borrowed by the district under
section 133.301 of
the Revised Code, excluding any additional amount borrowed as authorized under
division (C) of that section.
(b) An operating deficit has been certified for the
current fiscal year by the auditor of state under section
3313.483 of the Revised Code, and the certified
operating deficit exceeds fifteen per cent of the school
district's general fund revenue for the preceding fiscal year.
In determining the amount of an operating deficit under division
(B)(1)(b) of this section, the
auditor of state shall credit toward the amount of that deficit
only the amount that may be borrowed from the spending reserve
balance as determined under section 133.301 and division
(G)(F) of section 5705.29 of the Revised Code.
(c) A majority of the voting electors have not voted in
favor of levying
a tax under section 5705.194 or 5705.21 or Chapter 5748. of the Revised Code
that the auditor of state expects will raise enough additional revenue in the
next succeeding fiscal year that divisions
(A)(1)(a) and (b) of this section will not apply
to the district in such next succeeding fiscal year.
(d) The school district is one that, at the time of the
auditor of
state's determination under this section, had a total student count of
more than ten thousand students as most recently
determined by the department of
education pursuant to section
3317.03 of the Revised Code.
(2) The school district board fails, pursuant to
section 3316.04 of the Revised
Code, to submit a plan acceptable to the state
superintendent of public instruction within one hundred twenty days of the
auditor of state's declaration under division (A) of
this section;
(3) A declaration of fiscal emergency is required by division
(D) of section 3316.04 of the Revised Code;
(4) The school district has received more than one advancement under
section 3316.20 of the Revised
Code within a two-year period, or has received
only one such advancement but also has an operating deficit as described in
division (B)(1)(b) of this section.
(C) In making the determinations under this section, the auditor of state
may
use financial reports required under section 117.43 of the Revised Code; tax
budgets, certificates of estimated resources and amendments thereof, annual
appropriating measures and spending plans, and any other
documents or information prepared pursuant to
Chapter 5705. of the Revised Code; and any other documents,
records, or information available to the auditor of state that
indicate the conditions described in divisions (A) and (B) of this section.
(D) The auditor of state shall certify the action taken under division (A) or
(B) of this section to the board of education of the school district, the
director of budget and management, the mayor or county auditor who could be
required to act pursuant to division (B)(1) of section 3316.05 of the Revised
Code, and to the superintendent of public instruction.
(E) A determination by the auditor of state under this section
that a fiscal emergency condition does not exist is final and conclusive and
not appealable. A determination by the auditor of state under this section
that a fiscal emergency exists is final, except that the board of education of
the school district affected by such a determination may appeal the
determination of the existence of a fiscal emergency condition to the court of
appeals having territorial jurisdiction over the school district. The appeal
shall be heard expeditiously by the court of appeals and for good cause shown
shall take precedence over all other civil matters except earlier matters of
the same character. Notice of such appeal must be filed with the auditor of
state and such court within thirty days after certification by the auditor of
state to the board of education of the school district provided for in
division (D) of this section. In such appeal, determinations of the
auditor of state shall be presumed to be valid and the board of education
shall have the burden of proving, by clear and convincing evidence, that each
of the determinations made by the auditor of state as to the existence of a
fiscal emergency condition under this section was in error. If the board of
education fails, upon presentation of its case, to prove by clear and
convincing evidence that each such determination by the auditor of state was
in error, the court shall dismiss the appeal. The board of education and the
auditor of state may introduce any evidence relevant to the existence or
nonexistence of such fiscal emergency conditions. The pendency of any such
appeal shall not affect or impede the operations of this chapter; no
restraining order, temporary injunction, or other similar restraint upon
actions consistent with this chapter shall be imposed by the court or any
court pending determination of such appeal; and all things may be done under
this chapter that may be done regardless of the pendency of any such appeal.
Any action taken or contract executed pursuant to this chapter during the
pendency of such appeal is valid and enforceable among all parties,
notwithstanding the decision in such appeal. If the court of appeals reverses
the determination of the existence of a fiscal emergency condition by the
auditor of state, the determination no longer has any
effect, and any procedures
undertaken as a result of the determination shall be terminated.
Sec. 5705.12. In addition to the funds provided for by sections 5705.09
and, 5705.121,
5705.13, AND 5705.131 of the Revised Code, the taxing
authority of a subdivision may
establish, with the approval of and in the manner prescribed by the
auditor of state, such other funds as are desirable, and may provide by
ordinance or resolution that money derived from specified sources other than
the general property tax shall be paid directly into such funds. The auditor
of state shall consult with the tax commissioner before giving his
approval APPROVING SUCH FUNDS.
Sec. 5705.13 5705.121. A municipal corporation may establish
in the manner provided by
law a sanitary police pension fund, an urban redevelopment tax increment
equivalent fund, or a cemetery fund. A township may establish by law a
cemetery fund.
Sec. 5705.13. (A) EXCEPT AS OTHERWISE PROVIDED FOR A BOARD OF
EDUCATION UNDER DIVISION (H) OF SECTION 5705.29 of the Revised Code, A TAXING
AUTHORITY OF A SUBDIVISION, BY
RESOLUTION OR ORDINANCE, MAY
ESTABLISH A RESERVE BALANCE ACCOUNT TO ACCUMULATE CURRENTLY AVAILABLE
RESOURCES FOR ANY OF THE FOLLOWING PURPOSES:
(1) TO STABILIZE SUBDIVISION BUDGETS AGAINST CYCLICAL CHANGES IN REVENUES
AND EXPENDITURES;
(2) EXCEPT AS OTHERWISE PROVIDED BY THIS SECTION, TO PROVIDE FOR THE
PAYMENT OF CLAIMS UNDER A SELF-INSURANCE PROGRAM FOR THE SUBDIVISION, IF THE
SUBDIVISION IS PERMITTED BY LAW TO ESTABLISH SUCH A PROGRAM;
(3) TO PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A RETROSPECTIVE RATINGS
PLAN FOR WORKERS' COMPENSATION.
THE ORDINANCE OR RESOLUTION ESTABLISHING A RESERVE BALANCE ACCOUNT SHALL
STATE THE PURPOSE FOR WHICH THE RESERVE BALANCE ACCOUNT IS ESTABLISHED, THE
FUND IN WHICH THE ACCOUNT IS TO BE ESTABLISHED, AND THE TOTAL AMOUNT OF MONEY
TO BE RESERVED IN THE ACCOUNT.
A SUBDIVISION THAT PARTICIPATES IN A RISK-SHARING POOL, BY WHICH
GOVERNMENTS POOL RISKS AND FUNDS AND SHARE IN THE COSTS OF LOSSES, SHALL NOT
ESTABLISH A RESERVE BALANCE ACCOUNT TO PROVIDE SELF-INSURANCE FOR THE
SUBDIVISION.
A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT HAVE MORE THAN THREE RESERVE
BALANCE
ACCOUNTS AT ANY TIME. NOT MORE THAN ONE RESERVE BALANCE ACCOUNT MAY BE
ESTABLISHED FOR EACH OF THE PURPOSES PERMITTED UNDER THIS SECTION. MONEY TO
THE CREDIT OF A RESERVE BALANCE ACCOUNT MAY BE EXPENDED ONLY FOR THE PURPOSE
FOR WHICH THE ACCOUNT WAS ESTABLISHED.
A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE DESCRIBED IN
DIVISION (A)(1) OF THIS SECTION SHALL BE ESTABLISHED IN THE GENERAL
FUND OF THE SUBDIVISION, AND THE AMOUNT OF MONEY TO BE RESERVED IN THAT
ACCOUNT IN ANY FISCAL YEAR SHALL NOT EXCEED FIVE PER CENT OF THE GENERAL FUND
REVENUE FOR THE PRECEDING FISCAL YEAR. SUBJECT TO DIVISION (G) OF
SECTION 5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN
AN ACCOUNT
ESTABLISHED UNDER DIVISION (A)(1) OF THIS SECTION SHALL NOT BE
CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF THE SUBDIVISION
UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION (A)(1) OF
SECTION 5705.36 of the Revised Code.
AT ANY TIME, A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR
ORDINANCE, MAY
REDUCE OR ELIMINATE THE RESERVE BALANCE IN A RESERVE BALANCE ACCOUNT
ESTABLISHED FOR THE PURPOSE DESCRIBED IN DIVISION (A)(1) OF THIS
SECTION.
A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE DESCRIBED IN
DIVISION
(A)(2) OR (3) OF THIS SECTION SHALL BE ESTABLISHED IN THE GENERAL
FUND
OF THE SUBDIVISION OR BY THE ESTABLISHMENT OF A SEPARATE INTERNAL SERVICE
FUND ESTABLISHED TO
ACCOUNT FOR THE OPERATION OF THE SELF-INSURANCE OR RETROSPECTIVE RATINGS PLAN
PROGRAM, AND SHALL BE BASED ON SOUND ACTUARIAL PRINCIPLES. THE TOTAL AMOUNT
OF MONEY IN A RESERVE BALANCE
ACCOUNT FOR SELF-INSURANCE MAY BE EXPRESSED IN DOLLARS OR AS THE AMOUNT
DETERMINED TO REPRESENT AN ADEQUATE RESERVE ACCORDING TO SOUND ACTUARIAL
PRINCIPLES.
A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY
RESCIND A RESERVE BALANCE ACCOUNT ESTABLISHED UNDER THIS DIVISION. IF A
RESERVE BALANCE ACCOUNT IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE
ACCOUNT SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH THE MONEY
ORIGINALLY WAS TRANSFERRED.
(B) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR
ORDINANCE, MAY
ESTABLISH A SPECIAL REVENUE FUND FOR THE PURPOSE OF ACCUMULATING RESOURCES
FOR THE PAYMENT OF ACCUMULATED SICK LEAVE AND VACATION LEAVE, AND FOR PAYMENTS
IN LIEU OF TAKING COMPENSATORY TIME OFF, UPON THE
TERMINATION OF EMPLOYMENT OR THE RETIREMENT OF OFFICERS AND EMPLOYEES OF THE
SUBDIVISION. THE SPECIAL REVENUE FUND MAY ALSO ACCUMULATE RESOURCES FOR
PAYMENT OF SALARIES DURING ANY FISCAL YEAR WHEN THE NUMBER OF PAY PERIODS
EXCEEDS THE USUAL AND CUSTOMARY NUMBER OF PAY PERIODS. NOTWITHSTANDING
SECTIONS 5705.14, 5705.15, AND 5705.16 of the Revised Code,
THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, MAY TRANSFER MONEY TO THE
SPECIAL
REVENUE FUND FROM ANY OTHER FUND OF THE SUBDIVISION FROM WHICH SUCH PAYMENTS
MAY LAWFULLY BE MADE. THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE,
MAY RESCIND A SPECIAL REVENUE FUND ESTABLISHED UNDER THIS DIVISION. IF A
SPECIAL REVENUE FUND IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE FUND
SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH THE MONEY ORIGINALLY WAS
TRANSFERRED.
(C) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR
ORDINANCE, MAY ESTABLISH A CAPITAL PROJECTS FUND FOR THE PURPOSE OF
ACCUMULATING RESOURCES FOR THE ACQUISITION, CONSTRUCTION, OR IMPROVEMENT OF
FIXED ASSETS OF THE SUBDIVISION. FOR THE PURPOSES OF THIS SECTION, "FIXED
ASSETS" INCLUDES MOTOR VEHICLES. MORE THAN ONE CAPITAL PROJECTS FUND MAY BE
ESTABLISHED AND MAY EXIST AT ANY TIME. THE ORDINANCE OR RESOLUTION SHALL
IDENTIFY THE SOURCE OF THE MONEY TO BE USED TO ACQUIRE, CONSTRUCT, OR IMPROVE
THE FIXED ASSETS IDENTIFIED IN THE RESOLUTION OR ORDINANCE, THE AMOUNT OF
MONEY TO BE ACCUMULATED FOR THAT PURPOSE, THE PERIOD OF TIME OVER WHICH THAT
AMOUNT IS TO BE ACCUMULATED, AND THE FIXED ASSETS THAT THE TAXING AUTHORITY
INTENDS TO ACQUIRE, CONSTRUCT, OR IMPROVE WITH THE MONEY TO BE
ACCUMULATED IN THE FUND.
A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT ACCUMULATE MONEY IN A
CAPITAL PROJECTS
FUND FOR MORE THAN FIVE YEARS AFTER THE RESOLUTION OR ORDINANCE ESTABLISHING
THE FUND IS ADOPTED. IF THE SUBDIVISION HAS NOT ENTERED INTO A CONTRACT FOR
THE ACQUISITION, CONSTRUCTION, OR IMPROVEMENT OF
FIXED ASSETS FOR WHICH MONEY WAS ACCUMULATED IN SUCH A FUND BEFORE THE END OF
THAT FIVE-YEAR PERIOD, THE FISCAL OFFICER OF THE
SUBDIVISION
SHALL TRANSFER ALL MONEY IN THE FUND TO THE FUND OR FUNDS FROM WHICH THAT
MONEY ORIGINALLY WAS TRANSFERRED OR THE FUND THAT ORIGINALLY WAS INTENDED TO
RECEIVE THE MONEY.
A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY
RESCIND A CAPITAL
PROJECTS FUND. IF A CAPITAL PROJECTS FUND IS RESCINDED, MONEY THAT HAS
ACCUMULATED IN THE FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH
THE MONEY ORIGINALLY WAS TRANSFERRED.
NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 of the Revised Code, THE
TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY TRANSFER
MONEY TO THE
CAPITAL PROJECTS FUND FROM ANY OTHER FUND OF THE SUBDIVISION THAT MAY
LAWFULLY
BE USED FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, OR IMPROVING THE FIXED
ASSETS IDENTIFIED IN THE RESOLUTION OR ORDINANCE.
Sec. 5705.131. A TAXING AUTHORITY OF A SUBDIVISION MAY ESTABLISH A
NONEXPENDABLE TRUST FUND FOR THE PURPOSE OF RECEIVING DONATIONS OR
CONTRIBUTIONS THAT THE DONOR OR CONTRIBUTOR REQUIRES TO BE MAINTAINED
INTACT. THE PRINCIPAL OF SUCH FUND MAY BE INVESTED,
AND THE INVESTMENT EARNINGS ON THE PRINCIPAL SHALL BE CREDITED TO THE FUND.
THE PRINCIPAL OF THE FUND, AND ANY ADDITIONS TO PRINCIPAL ARISING FROM
SOURCES
OTHER THAN THE REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THE FUND,
SHALL NOT BE CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF THE
SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION
(A)(1) OF SECTION 5705.36 of the Revised Code. ONLY
INVESTMENT EARNINGS ARISING FROM INVESTMENT OF THE PRINCIPAL OR INVESTMENT OF
SUCH ADDITIONS TO PRINCIPAL MAY BE CONSIDERED AN UNENCUMBERED BALANCE OR
REVENUE OF THE SUBDIVISION UNDER THAT DIVISION.
Sec. 5705.29. The tax budget shall present the following
information in such detail as is prescribed by the auditor of
state, unless an alternative form of the budget is permitted under section
5705.281 of the Revised Code:
(A)(1) A statement of the necessary current operating
expenses for the ensuing fiscal year for each department and
division of the subdivision, classified as to personal services
and other expenses, and the fund from which such expenditures are
to be made. Except in the case of a school district, this
estimate may include a contingent expense not designated for any
particular purpose, and not to exceed three per cent of the total
amount of appropriations for current expenses. In the case of a
school district, this estimate may include a contingent expense
not designated for any particular purpose and not to exceed
thirteen per cent of the total amount of appropriations for
current expenses.
(2) A statement of the expenditures for the ensuing fiscal
year necessary for permanent improvements, exclusive of any
expense to be paid from bond issues, classified as to the
improvements contemplated by the subdivision and the fund from
which such expenditures are to be made;
(3) The amounts required for the payment of final
judgments;
(4) A statement of expenditures for the ensuing fiscal
year necessary for any purpose for which a special levy is
authorized, and the fund from which such expenditures are to be
made;
(5) Comparative statements, so far as possible, in
parallel columns of corresponding items of expenditures for the
current fiscal year and the two preceding fiscal years.
(B)(1) An estimate of receipts from other sources than the
general property tax during the ensuing fiscal year, which shall
include an estimate of unencumbered balances at the end of the
current fiscal year, and the funds to which such estimated
receipts are credited;
(2) The amount each fund requires from the general
property tax, which shall be the difference between the
contemplated expenditure from the fund and the estimated
receipts, as provided in this section. The section of the
Revised Code under which the tax is authorized shall be set
forth.
(3) Comparative statements, so far as possible, in
parallel columns of taxes and other revenues for the current
fiscal year and the two preceding fiscal years.
(C)(1) The amount required for debt charges;
(2) The estimated receipts from sources other than the tax
levy for payment of such debt charges, including the proceeds of
refunding bonds to be issued to refund bonds maturing in the next
succeeding fiscal year;
(3) The net amount for which a tax levy shall be made,
classified as to bonds authorized and issued prior to January 1,
1922, and those authorized and issued subsequent to such date,
and as to what portion of the levy will be within and what in
excess of the ten-mill limitation.
(D) An estimate of amounts from taxes authorized to be
levied in excess of the ten-mill limitation on the tax rate, and
the fund to which such amounts will be credited, together with
the sections of the Revised Code under which each such tax is
exempted from all limitations on the tax rate.
(E)(1) A board of education may include in its budget for
the fiscal year in which a levy proposed under section 5705.194,
5705.21, or 5705.213, or the original levy under section 5705.212
of the Revised Code is first extended on the tax list and
duplicate an estimate of expenditures to be known as a voluntary
contingency reserve balance, which shall not be greater than
twenty-five per cent of the total amount of the levy estimated to
be available for appropriation in such year.
(2) A board of education may include in its budget for the
fiscal year following the year in which a levy proposed under
section 5705.194, 5705.21, or 5705.213, or the original levy
under section 5705.212 of the Revised Code is first extended on
the tax list and duplicate an estimate of expenditures to be
known as a voluntary contingency reserve balance, which shall not
be greater than twenty per cent of the amount of the levy
estimated to be available for appropriation in such year.
(3) Except as provided in division (E)(4) of this section,
the full amount of any reserve balance the board includes in its
budget shall be retained by the county auditor and county
treasurer out of the first semiannual settlement of taxes until
the beginning of the next succeeding fiscal year, and thereupon,
with the depository interest apportioned thereto, it shall be
turned over to the board of education, to be used for the
purposes of such fiscal year.
(4) A board of education may, by a two-thirds vote of all
members of the board, MAY appropriate any amount withheld as a
voluntary contingency reserve balance during the fiscal year for
any lawful purpose, provided that prior to such appropriation the
board of education has authorized the expenditure of all amounts
appropriated for contingencies under section 5705.40 of the
Revised Code. Upon request by the board of education, the county
auditor shall draw a warrant on the district's account in the
county treasury payable to the district in the amount requested.
(F)(1) As used in this division, "police or fire department
equipment expenditures" includes expenditures for equipment used to provide
ambulance or emergency medical services operated by a police or fire
department.
A board of township trustees may include in its
budget an estimate of expenditures to be known as a reserve
balance for police or fire department equipment or
road maintenance equipment expenditures. This reserve balance
shall not exceed ten per cent of the total estimated
appropriations included in the township budget estimate. If, in
accordance with division (A) of section 505.83 of the Revised
Code, the board of township trustees has unanimously adopted a
resolution establishing the reserve balance account and
specifying the reason for its creation and has certified the
resolution to the county auditor, the full amount of the reserve
balance, as allowed by the budget commission, shall be turned
over to the township each year by the county auditor and county
treasurer out of the second semiannual settlement of taxes until
the date specified in the resolution, which shall not be later
than five years from the date of the first such deposit in the
account, or until the reserve amount has been reached, whichever
occurs first.
(2) Upon receipt of a certified copy of a resolution to
rescind the creation of a township reserve balance account
pursuant to division (B) of section 505.83 of the Revised Code,
the county auditor shall close the account and transfer the
account moneys and depository interest apportioned to it to the
township's general fund.
(G)(1) A board of education may include a spending reserve
in its budget for fiscal years ending on or before
June 30, 2002. The spending reserve shall consist of an estimate
of
expenditures not to exceed the district's spending reserve
balance. A district's spending reserve balance is the amount by
which the designated percentage of the district's
estimated personal
property taxes to be settled during the calendar year in which
the fiscal year ends exceeds the estimated amount of personal
property taxes to be so settled and received by the district
during that fiscal year. Moneys from a spending reserve shall be
appropriated in accordance with section 133.301 of the Revised
Code.
(2) For the purposes of computing a school district's spending
reserve balance for a fiscal year, the designated percentage shall be as
follows:
Fiscal year ending in:
|
Designated percentage
|
1998 | 50% |
1999 | 40% |
2000 | 30% |
2001 | 20% |
2002 | 10% |
(H) As used in this division:
(1) "Police or fire department equipment expenditures" includes
expenditures for equipment used to provide ambulance or emergency
medical services operated by a police or fire department.
(2) "Detention facility" means any place used for the
confinement of a person charged with or convicted of any crime
or alleged or found to be a delinquent or unruly child.
The legislative authority of a municipal corporation may
include in its budget an estimate of expenditures to be known as
a reserve balance for police or fire department equipment
expenditures, for constructing, acquiring, equipping, or repairing a detention
facility, or for road maintenance equipment expenditures by creating, by
ordinance or resolution, a reserve
balance account. Money credited to the account may be derived from any
general fund sources or from the proceeds of a special levy that may be used
for the purpose for which the account is established. The ordinance or
resolution shall state that money in the
account may be expended only for the purpose for which the account is
established, that the
account will be maintained until a specified date not to exceed
five years from the date of the first deposit in the account, and
that the total amount of money in all reserve balance accounts derived from
general fund sources shall not exceed ten per cent of the current total
estimated expenditures from the municipal
corporation's general fund, and the total amount of money in all reserve
balance accounts derived from a special levy shall not exceed ten per cent of
the current total estimated expenditures from the special levy.
The legislative authority shall certify a copy
of the ordinance or resolution to the county auditor. Upon receiving the
certified copy, the county
auditor and county treasurer shall turn over to the municipal corporation, out
of the second
semiannual settlement of taxes, any amount of the reserve balance to be
derived from property tax sources,
but only until the date specified in the ordinance or resolution
or until the reserve amount as indicated in the ordinance or
resolution has been reached, whichever occurs first.
A legislative authority may create a separate reserve balance
account under this division for police department equipment
expenditures, fire department equipment expenditures, or
ambulance or emergency medical services equipment expenditures,
or any combination thereof. Each such account is subject to the
provisions of this section regarding a single account for all such
purposes.
Upon receiving a certified copy of an ordinance or
resolution to rescind the creation of a municipal reserve balance
account, the county auditor shall close the account and transfer
all money in the account to the municipal general fund, if the account is
derived from the general fund, or to the fund to which proceeds of the special
levy are credited, if the account is derived from the proceeds of a special
levy.
(I) A board of county
commissioners that has adopted a resolution establishing a
reserve balance account under section 305.23 of the Revised
Code
may include in its budget an estimate of expenditures to be
known as a reserve balance for the purpose for which the account
was established under that section. The reserve shall not
exceed ten per cent of the total estimated appropriations
included in the budget estimate of the general fund in the case
of a reserve balance account established under division
(A) of that section, or ten per
cent of the total estimated appropriations included in the
budget estimate of the special fund in which the account is
established in the case of a reserve balance account established
under division (B) of that
section. If the board of county commissioners has certified a copy of
a resolution to the county auditor pursuant to that section, the
county auditor and county treasurer shall deposit the amount of
the annual reserve balance into the reserve balance account out
of the second semiannual settlement of taxes until the date
specified in that resolution, or until the reserve amount specified in the
resolution has been reached, whichever occurs first.
Upon receiving a certified copy of a resolution rescinding
a reserve balance account, the county auditor shall close the
account and transfer all money in the account to a special fund
created for the purpose of receiving that money. Money
deposited into the fund from the reserve balance account shall
be expended only for the purpose for which the account was
established.
(J) The(G) EXCEPT AS OTHERWISE PROVIDED IN THIS DIVISION,
THE county budget
commission shall not reduce the taxing authority of a board of
township trustees, a board of county commissioners, or the
legislative authority of a municipal corporation SUBDIVISION as a
result of
the creation of a reserve balance account, and. EXCEPT AS
OTHERWISE PROVIDED IN THIS DIVISION, THE COUNTY BUDGET COMMISSION shall
not
consider the amount in a reserve balance account OF A TOWNSHIP, COUNTY, OR
MUNICIPAL CORPORATION as an
unencumbered balance or as revenue for the purposes of division
(E)(3) or (4) of section 5747.51 or division (E)(3) or (4)
of section 5747.62 of the Revised Code. THE COUNTY BUDGET COMMISSION MAY
REQUIRE DOCUMENTATION OF THE REASONABLENESS OF THE RESERVE BALANCE HELD IN ANY
RESERVE BALANCE ACCOUNT. THE COMMISSION SHALL CONSIDER ANY AMOUNT IN A
RESERVE BALANCE ACCOUNT THAT IT DETERMINES TO BE UNREASONABLE AS UNENCUMBERED
AND AS REVENUE FOR THE PURPOSES OF SECTIONS 5747.51 AND 5747.62 OF THE
REVISED CODE AND MAY TAKE SUCH AMOUNTS INTO CONSIDERATION
WHEN DETERMINING WHETHER TO REDUCE THE TAXING AUTHORITY OF A SUBDIVISION.
(K)(H)(1) Each board of education shall include in its tax
budget a
budget reserve fund. The budget reserve fund shall consist of money reserved
for the fund from general fund revenues or from other sources that may
lawfully be credited to the general fund
AND SHALL ESTABLISH A RESERVE
BALANCE
ACCOUNT TO ACCUMULATE CURRENTLY AVAILABLE RESOURCES TO STABILIZE THE SCHOOL
DISTRICT'S BUDGET AGAINST CYCLICAL CHANGES IN REVENUES AND EXPENDITURES.
The balance in the budget reserve
fund BALANCE ACCOUNT shall not at any time be less than five per
cent of general fund revenues
for the most recently concluded fiscal year, except as provided in division
(K)(H)(2) or (3) of this section, and except for deficiencies
arising
from the appropriation of money from the fund ACCOUNT for
unanticipated deficiencies
in revenue or other emergencies pursuant to a resolution adopted by
two-thirds of the membership of the board of education specifying the reason
for the appropriation. The auditor of state and the superintendent of public
instruction jointly shall adopt rules governing conditions that constitute
unanticipated deficiencies in revenue or emergencies for which appropriations
may be made from a budget reserve fund BALANCE ACCOUNT.
The rules also shall provide that a
board of education that includes a BORROWS AGAINST ITS spending
reserve ESTABLISHED in its tax budget for a
fiscal year under division (G)(F) of this section is not
subject to
division (K)(H)(2) of this section for that fiscal year. A
board of
education shall not appropriate money from a budget reserve fund
BALANCE ACCOUNT without
filing a schedule for replenishing the fund ACCOUNT with the
superintendent of public
instruction and receiving approval of the schedule from the superintendent of
public instruction.
(2) Beginning with the fiscal year ending in 1999 and
continuing each
fiscal year until the balance in the budget reserve fund
BALANCE ACCOUNT equals five per cent
of the district's revenues received for current expenses for the preceding
fiscal year, if the growth in a district's total revenues received for current
expenses from one fiscal year to the next is three per cent or more, the board
of education shall credit to its budget reserve fund BALANCE
ACCOUNT, from the general fund or
from other sources that may lawfully be credited to the general fund, an
amount not less than one per cent of the revenue received for current expenses
for the fiscal year, at which time the balance in the budget reserve
fund BALANCE ACCOUNT
shall be maintained as otherwise required under division
(K)(H)(1) of
this section.
(3) The balance in the budget reserve fund BALANCE
ACCOUNT of a school district may be
less than five per cent of the general fund revenue for the most recently
concluded fiscal year in any fiscal year in which the school district is in a
state of fiscal watch or fiscal emergency pursuant to section 3316.03 of the
Revised Code.
(4) Notwithstanding any provision to the contrary in Chapter
4117. of the Revised Code, the requirements of division (K)(H)
of this section
prevail over any conflicting provisions of agreements between employee
organizations and public employers entered into after November
21, 1997.
(5) Notwithstanding division (K)(H)(2) of this section, a
school district may, pursuant to rules adopted by the auditor of state,
credit less than one per cent of its prior year's revenue received for current
expenses into its budget reserve fund BALANCE ACCOUNT.
Sec. 5705.35. (A) The certification of the budget
commission to the taxing authority of each subdivision or taxing
unit, as set forth in section 5705.34 of the Revised Code, shall
show the various funds of such subdivisions other than funds to
be created by transfer and shall be filed by the county budget
commission with such taxing authority on or before the first day
of March in the case of school districts and on or before the
first day of September in each year in the case of all other
taxing authorities. There shall be set forth on the credit side
of each fund the estimated unencumbered balances and receipts,
and if a tax is to be levied for such fund, the estimated revenue
to be derived therefrom, the rate of the levy, and what portion
thereof is within, and what in excess of, the ten-mill tax
limitation, and on the debit side, the total appropriations that
may be made therefrom. SUBJECT TO DIVISION (G) OF SECTION 5705.29
OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT
ESTABLISHED
UNDER SECTION 5705.13 of the Revised Code FOR THE PURPOSE DESCRIBED IN DIVISION
(A)(1) OF THAT SECTION, AND THE PRINCIPAL OF A NONEXPENDABLE TRUST
FUND
ESTABLISHED UNDER SECTION 5705.131 of the Revised Code AND ANY ADDITIONS TO PRINCIPAL
ARISING FROM SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT EARNINGS
ARISING FROM THAT FUND, ARE NOT UNENCUMBERED BALANCES FOR THE PURPOSES OF
THIS
SECTION. There shall be attached thereto TO THE
CERTIFICATION a summary,
which shall be known as the "official certificate of estimated
resources," which THAT shall state the total estimated
resources
of each fund of the subdivision that are available for appropriation
in the fiscal year, other than funds to be created by transfer,
and a statement of the amount of the total tax duplicate of the
school district to be used in the collection of taxes for the
following calendar year. Before the end of the fiscal year, the
taxing authority of each subdivision and other taxing unit shall
revise its tax budget so that the total contemplated expenditures
from any fund during the ensuing fiscal year will not exceed the
total appropriations that may be made from such fund, as
determined by the budget commission in its certification; and
such revised budget shall be the basis of the annual
appropriation measure.
(B)(1) Except as otherwise provided in division (B)(2) of
this section, revenues from real property taxes scheduled to be
settled on or before the tenth day of August and the fifteenth
day of February of a fiscal year under divisions (A) AND (C)
and (A) of
section 321.24 of the Revised Code, and revenue from taxes levied
on personal property used in business scheduled to be settled on
or before the thirty-first day of October and the thirtieth day
of June of a fiscal year under divisions (B) AND (D) and
(B) of section
321.24 of the Revised Code shall not be available for
appropriation by a board of education prior to the fiscal year in
which such latest scheduled settlement date occurs, except that
moneys advanced to the treasurer of a board of education under
division (A)(2)(b) of section 321.34 of the Revised Code shall be
available for appropriation in the fiscal year in which they are
paid to the treasurer under such section. If the date for any
settlement of taxes is extended under division (E) of section
321.24 of the Revised Code, the latest date set forth in
divisions (A) to (D) of that section shall be used to determine
in which fiscal year the revenues are first available for
appropriation.
(2) Revenues available for appropriation by a school
district during a fiscal year may include amounts borrowed in
that fiscal year under section 133.301 of the Revised Code in
anticipation of the collection of taxes that are to be included
in the settlements made under divisions (C) and (D) of section
321.24 of the Revised Code in the ensuing fiscal year.
Sec. 5705.36. (A)(1) On or about the first day of each
fiscal year, the fiscal officer of each subdivision and other
taxing unit shall certify to the county auditor the total amount
from all sources available for expenditures from each fund set up
in the tax budget or, if adoption of a tax budget was waived
under section 5705.281 of the Revised Code, from each fund created by or on
behalf of the taxing authority. The amount certified shall include any
UNENCUMBERED balances that existed at the end of the preceding
year, EXCLUDING ANY OF THE FOLLOWING:
(a) SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE
REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT ESTABLISHED
UNDER
SECTION 5705.13 of the Revised Code FOR THE PURPOSE DESCRIBED IN DIVISION (A)(1) OF
THAT SECTION;
(b) THE PRINCIPAL OF A NONEXPENDABLE TRUST FUND ESTABLISHED
UNDER SECTION 5705.131 of the Revised Code AND ANY ADDITIONS TO PRINCIPAL ARISING FROM
SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THAT
FUND.
A school district's certification shall separately show the
amount of any notes and unpaid and outstanding expenses on the
preceding thirtieth day of June that are to be paid from property
taxes that are to be settled during the current fiscal year under
divisions (C) and (D) of section 321.24 of the Revised Code, and
the amount of any spending reserve available for appropriation
during the current fiscal year under section 133.301 of the
Revised Code. The budget commission, taking into consideration
the balances and revenues to be derived from taxation and other
sources, shall revise its estimate of the amounts that will be
credited to each fund from such sources, and shall certify to the
taxing authority of each subdivision an amended official
certificate of estimated resources. If the subdivision collects
revenue available for the purposes of such fiscal year from a new
source that is not included in an official certificate, or if the
actual balances and receipts in any fund exceed the certified
estimate, then upon the certification by its fiscal officer of
the amount of the excess balances and receipts, the commission
shall certify an amended official certificate including them.
(2) Upon a determination by the treasurer of a board of
education that the revenue to be collected by a school district
will be greater or less than the amount included in an official
certificate, the treasurer shall certify the amount of the
deficiency or excess to the commission, and the commission shall
certify an amended official certificate reflecting the deficiency
or excess.
(3) Upon (2) SUBJECT TO DIVISIONS (A)(3) AND (4)
OF THIS SECTION, UPON a determination by the county auditor
FISCAL OFFICER OF A SUBDIVISION that the
revenue to be collected by the county SUBDIVISION will be
greater or less
than the amount included in an official certificate, the county
auditor shall FISCAL OFFICER MAY certify the amount of the
deficiency or excess to
the commission, and if the commission determines that the
auditor's FISCAL OFFICER'S certification is reasonable, the
commission shall
certify an amended official certificate reflecting the deficiency
or excess.
(4)(3) Upon a determination by the fiscal officer of a
municipal corporation SUBDIVISION that the revenue to be
collected by the
municipal corporation SUBDIVISION will be greater or less
than the amount
included in the AN official certificate AND THE LEGISLATIVE
AUTHORITY INTENDS TO APPROPRIATE AND EXPEND THE EXCESS REVENUE, the fiscal
officer
shall
certify the amount of the excess or deficiency to the commission,
and if the commission determines that the fiscal officer's
certification is reasonable, the commission shall certify an
amended official certificate reflecting the deficiency or excess.
(4) UPON A DETERMINATION BY THE FISCAL OFFICER OF A
SUBDIVISION THAT THE REVENUE TO BE COLLECTED BY THE SUBDIVISION
WILL BE LESS THAN THE AMOUNT INCLUDED IN AN OFFICIAL CERTIFICATE
AND THAT THE AMOUNT OF THE DEFICIENCY WILL REDUCE AVAILABLE
RESOURCES BELOW THE LEVEL OF CURRENT APPROPRIATIONS, THE FISCAL
OFFICER SHALL CERTIFY THE AMOUNT OF THE DEFICIENCY TO THE
COMMISSION, AND THE COMMISSION SHALL CERTIFY AN AMENDED
CERTIFICATE REFLECTING THE DEFICIENCY.
(5) The total appropriations made during the fiscal year
from any fund shall not exceed the amount set forth as available
for expenditure from such fund in the official certificate of
estimated resources, or any amendment thereof, certified prior to
the making of the appropriation or supplemental appropriation.
(B) At the time of settlement of taxes against which notes
have been issued under section 133.301 or division (D) of section
133.10 of the Revised Code and at the time a tax duplicate is
delivered pursuant to section 319.28 or 319.29 of the Revised
Code, the county auditor shall determine whether the total amount
to be distributed to each school district from such settlement or
duplicate, when combined with the amounts to be distributed from
any subsequent settlement, will increase or decrease the amount
available for appropriation during the current fiscal year from
any fund. The county auditor shall certify this finding to the budget
commission, which shall certify an amended official certificate reflecting
the finding or certify to the school district that no amended
certificate needs to be issued.
Sec. 5705.38. (A) This division does not apply to school
district appropriation measures. On or about the first day of
each year, the taxing authority of each subdivision or other
taxing unit shall pass an appropriation measure, and thereafter
during the year it may pass any supplemental appropriation
measures as it finds necessary, based on the revised tax budget
and the official certificate of estimated resources or amendments
of the certificate. If adoption of a tax budget was waived under section
5705.281 of the Revised Code, appropriation measures shall be based on the
official certificate of estimated resources. If it desires to postpone the
passage of the annual appropriation measure until an amended certificate is
received based on the actual balances, it may pass a temporary
appropriation measure for meeting the ordinary expenses of the
taxing unit until no later than the first day of April of the
current year, and the appropriations made in the temporary
measure shall be chargeable to the appropriations in the annual
appropriation measure for that fiscal year when passed.
(B) A board of education shall pass its annual
appropriation measure by the first day of October. If, by the
first day of October, a board has not received either the amended
certificates of estimated resources required by division (B) of
section 5705.36 of the Revised Code or certifications that no
amended certificates need be issued, the adoption of the annual
appropriation measure shall be delayed until the amended
certificates or certifications are received. Prior to the
passage of the annual appropriation measure, the board may pass a
temporary appropriation measure for meeting the ordinary expenses
of the district until it passes an annual appropriation measure,
and appropriations made in the temporary measure shall be
chargeable to the appropriations in the annual appropriation
measure for that fiscal year when passed. During the fiscal year
and after the passage of the annual appropriation measure, a
district may pass any supplemental appropriation measures as it
finds necessary, based on the revised tax budget and the official
certificate of estimated resources or amendments of the
certificate. The annual appropriation measure, and any temporary or
supplemental appropriation measure, shall provide for the reservation of a
sufficient amount of money for the budget reserve fund as required under
division (K)(H) of section 5705.29 of the Revised Code.
School district
appropriation measures shall be in
the form as the auditor of state, after consultation with the tax
commissioner, prescribes.
(C) Appropriation measures shall be classified so as to
set forth separately the amounts appropriated for each office,
department, and division, and, within each, the amount
appropriated for personal services. In the case of a municipal
university, the board of directors of which have assumed, in the
manner provided by law, custody and control of the funds of the
university, funds shall be appropriated as a lump sum for the use
of the university.
Sec. 5705.41. No subdivision or taxing unit shall:
(A) Make any appropriation of money except as provided in
Chapter 5705. of the Revised Code; provided, that the
authorization of a bond issue shall be deemed to be an
appropriation of the proceeds of the bond issue for the purpose
for which such bonds were issued, but no expenditure shall be
made from any bond fund until first authorized by the taxing
authority;
(B) Make any expenditure of money unless it has been
appropriated as provided in such chapter;
(C) Make any expenditure of money except by a proper
warrant drawn against an appropriate fund;
(D)(1) Except as otherwise provided in division (D)(2) of
this section, make any contract or give any order involving the
expenditure of money unless there is attached thereto a
certificate of the fiscal officer of the subdivision that the
amount required to meet the obligation or, in the case of a
continuing contract to be performed in whole or in part in an
ensuing fiscal year, the amount required to meet the obligation
in the fiscal year in which the contract is made, has been
lawfully appropriated for such purpose and is in the treasury or
in process of collection to the credit of an appropriate fund
free from any previous encumbrances. This certificate need be
signed only by the subdivision's fiscal officer. Every such
contract made without such a certificate shall be void, and no
warrant shall be issued in payment of any amount due thereon. If
no certificate is furnished as required, upon receipt by the
taxing authority of the subdivision or taxing unit of a
certificate of the fiscal officer stating that there was at the
time of the making of such contract or order and at the time of
the execution of such certificate a sufficient sum appropriated
for the purpose of such contract and in the treasury or in
process of collection to the credit of an appropriate fund free
from any previous encumbrances, such taxing authority may
authorize the drawing of a warrant in payment of amounts due upon
such contract, but such resolution or ordinance shall be passed
within thirty days from the receipt of such certificate; provided
that, if the amount involved is less than one hundred dollars in
the case of counties or one thousand dollars in the case of all
other subdivisions or taxing units, the fiscal officer may
authorize it to be paid without such affirmation of the taxing
authority of the subdivision or taxing unit, if such expenditure
is otherwise valid.
(2) Annually, the board of county commissioners may adopt
a resolution exempting for the current fiscal year county
purchases of seven hundred fifty dollars or less from the
requirement of division (D)(1) of this section that a certificate
be attached to any contract or order involving the expenditure of
money. The resolution shall state the dollar amount that is
exempted from the certificate requirement and whether the
exemption applies to all purchases, to one or more specific
classes of purchases, or to the purchase of one or more specific
items. Prior to the adoption of the resolution, the board shall
give written notice to the county auditor that it intends to
adopt the resolution. The notice shall state the dollar amount
that is proposed to be exempted and whether the exemption would
apply to all purchases, to one or more specific classes of
purchases, or to the purchase of one or more specific items. The
county auditor may review and comment on the proposal, and shall
send any comments to the board within fifteen days after
receiving the notice. The board shall wait at least fifteen days
after giving the notice to the auditor before adopting the
resolution. A person authorized to make a county purchase in a
county that has adopted such a resolution shall prepare and file
with the county auditor, within three business days after
incurring an obligation not requiring a certificate, a written
document specifying the purpose and amount of the expenditure,
the date of the purchase, the name of the vendor, and such
additional information as the auditor of state may prescribe.
(3) Upon certification by the auditor or other chief
fiscal officer that a certain sum of money, not in excess of five
thousand dollars, has been lawfully appropriated, authorized, or
directed for a certain purpose and is in the treasury or in the
process of collection to the credit of a specific line-item
appropriation account in a certain fund free from previous and
then outstanding obligations or certifications, then for such
purpose and from such line-item appropriation account in such
fund, over a period not exceeding three months and not extending
beyond the end of the fiscal year, expenditures may be made,
orders for payment issued, and contracts or obligations calling
for or requiring the payment of money made and assumed; provided,
that the aggregate sum of money included in and called for by
such expenditures, orders, contracts, and obligations shall not
exceed the sum so certified. Such a certification need be signed
only by the fiscal officer of the subdivision or the taxing
district and may, but need not, be limited to a specific vendor.
An itemized statement of obligations incurred and expenditures
made under such certificate shall be rendered to the auditor or
other chief fiscal officer before another such certificate may be
issued, and not more than one such certificate shall be
outstanding at a time.
In addition to providing the certification for expenditures
of five thousand dollars or less as provided in this division, a
county SUBDIVISION also may make expenditures, issue orders for
payment, and
make contracts or obligations calling for or requiring the
payment of money made and assumed for specified permitted
purposes from a specific line-item appropriation account in a
specified fund for a sum of money exceeding five thousand dollars
upon the certification by the county auditor FISCAL OFFICER OF THE
SUBDIVISION that this sum of
money has been lawfully appropriated, authorized, or directed for
a permitted purpose and is in the treasury or in the process of
collection to the credit of the specific line-item appropriation
account in the specified fund free from previous and
then-outstanding obligations or certifications; provided that the
aggregate sum of money included in and called for by the
expenditures, orders, and obligations shall not exceed the
certified sum. The purposes for which a county SUBDIVISION may
lawfully
appropriate, authorize, or issue such a certificate are the
services of an accountant, architect, attorney at law, physician,
professional engineer, construction project manager, consultant,
surveyor, or appraiser by or on behalf of the county SUBDIVISION
or
contracting authority; fuel oil, gasoline, food items, roadway
materials, and utilities; and any purchases exempt from
competitive bidding under section 125.04 of the Revised Code and
any other specific expenditure that is a recurring and reasonably
predictable operating expense. Such a certification shall not
extend beyond the end of the fiscal year or, if the IN THE CASE OF
A board of
county commissioners THAT has established a quarterly spending plan
under section 5705.392 of the Revised Code, beyond the quarter to
which the plan applies. Such a certificate shall be signed by
the county auditor FISCAL OFFICER and may, but need not, be
limited to a
specific vendor. An itemized statement of obligations incurred
and expenditures made under such a certificate shall be rendered
to the county auditor FISCAL OFFICER for each certificate
issued. More than one
such certificate may be outstanding at any time.
In any case in which a contract is entered into upon a per
unit basis, the head of the department, board, or commission for
the benefit of which the contract is made shall make an estimate
of the total amount to become due upon such contract, which
estimate shall be certified in writing to the fiscal officer of
the subdivision. Such a contract may be entered into if the
appropriation covers such estimate, or so much thereof as may be
due during the current year. In such a case the certificate of
the fiscal officer based upon the estimate shall be a sufficient
compliance with the law requiring a certificate.
Any certificate of the fiscal officer attached to a
contract shall be binding upon the political subdivision as to
the facts set forth therein. Upon request of any person
receiving an order or entering into a contract with any political
subdivision, the certificate of the fiscal officer shall be
attached to such order or contract. "Contract" as used in this
section excludes current payrolls of regular employees and
officers.
Taxes and other revenue in process of collection, or the
proceeds to be derived from authorized bonds, notes, or
certificates of indebtedness sold and in process of delivery,
shall for the purpose of this section be deemed in the treasury
or in process of collection and in the appropriate fund. This
section applies neither to the investment of sinking funds by the
trustees of such funds, nor to investments made under sections
731.56 to 731.59 of the Revised Code.
No district authority shall, in transacting its own
affairs, do any of the things prohibited to a subdivision by this
section, but the appropriation referred to shall become the
appropriation by the district authority, and the fiscal officer
referred to shall mean the fiscal officer of the district
authority.
Sec. 5709.61. As used in sections 5709.61 to 5709.69 of
the Revised Code:
(A) "Enterprise zone" or "zone" means any of the
following:
(1) An area with a single continuous boundary designated
in the manner set forth in section 5709.62 or 5709.63 of the
Revised Code and certified by the director of development as
having a population of at least four thousand according to the
best and most recent data available to the director and having at
least two of the following characteristics:
(a) It is located in a municipal corporation defined by
the United States office of management and budget as a central
city of a metropolitan statistical area;
(b) It is located in a county designated as being in the
"Appalachian region" under the "Appalachian Regional Development
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended;
(c) Its average rate of unemployment, during the most
recent twelve-month period for which data are available, is equal
to at least one hundred twenty-five per cent of the average rate
of unemployment for the state of Ohio for the same period;
(d) There is a prevalence of commercial or industrial
structures in the area that are vacant or demolished, or are
vacant and the taxes charged thereon are delinquent, and
certification of the area as an enterprise zone would likely
result in the reduction of the rate of vacant or demolished
structures or the rate of tax delinquency in the area;
(e) The population of all census tracts in the area,
according to the federal census of 1990, decreased by at least
ten per cent between the years 1970 and 1990;
(f) At least fifty-one per cent of the residents of the
area have incomes of less than eighty per cent of the median
income of residents of the municipal corporation or municipal
corporations in which the area is located, as determined in the
same manner specified under section 119(b) of the "Housing and
Community Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318,
as amended;
(g) The area contains structures previously used for
industrial purposes but currently not so used due to age,
obsolescence, deterioration, relocation of the former occupant's
operations, or cessation of operations resulting from unfavorable
economic conditions either generally or in a specific economic
sector;
(h) An area located within one or more adjacent city,
local, or exempted village school districts the income-weighted
tax capacity of each of which is less than seventy per cent of
the average of the income-weighted tax capacity of all city,
local, or exempted village school districts in the state
according to the most recent data available to the director from
the department of taxation.
The director of development shall adopt rules in accordance
with Chapter 119. of the Revised Code establishing conditions
constituting the characteristics described in divisions
(A)(1)(d), (g), and (h) of this section.
If an area could not be certified as an enterprise zone
unless it satisfied division (A)(1)(g) of this section, the
legislative authority may enter into agreements in that zone
under section 5709.62, 5709.63, or 5709.632 of the Revised Code
only if such agreements result in the development of the
facilities described in that division, the parcel of land on
which such facilities are situated, or adjacent parcels. The
director of development annually shall review all agreements in
such zones to determine whether the agreements have resulted in
such development; if the director determines that the agreements
have not resulted in such development, the director immediately
shall revoke certification of the zone and notify the legislative
authority of such revocation. Any agreements entered into prior
to revocation under this paragraph shall continue in effect for
the period provided in the agreement.
(2) An area with a single continuous boundary designated
in the manner set forth in section 5709.63 of the Revised Code
and certified by the director of development as:
(a) Being located within a county that contains a
population of three hundred thousand or less;
(b) Having a population of at least one thousand according
to the best and most recent data available to the director;
(c) Having at least two of the characteristics described
in divisions (A)(1)(b) to (h) of this section.
(3) An area with a single continuous boundary designated
in the manner set forth under division (A)(1) of section 5709.632
of the Revised Code and certified by the director of development
as having a population of at least four thousand, or under
division (A)(2) of that section and certified as having a
population of at least one thousand, according to the best and
most recent data available to the director.
(B) "Enterprise" means any form of business organization
including, but not limited to, any partnership, sole
proprietorship, or corporation, including an S corporation as
defined in section 1361 of the Internal Revenue Code and any
corporation that is majority work-owned either directly through
the ownership of stock or indirectly through participation in an
employee stock ownership plan.
(C) "Facility" means an enterprise's place of business in
a zone, including land, buildings, machinery, equipment, and
other materials, except inventory, used in business. "Facility"
does not include any portion of an enterprise's place of business
used primarily for making retail sales unless the place of
business is located in an impacted city as defined in section
1728.01 of the Revised Code.
(D) "Vacant facility" means a facility that has been
vacant for at least ninety days immediately preceding the date on
which an agreement is entered under section 5709.62 or 5709.63 of
the Revised Code.
(E) "Expand" means to make expenditures to add land,
buildings, machinery, equipment, or other materials, except
inventory, to a facility that equal at least ten per cent of the
market value of the facility prior to such expenditures, as
determined for the purposes of local property taxation.
(F) "Renovate" means to make expenditures to alter or
repair a facility that equal at least fifty per cent of the
market value of the facility prior to such expenditures, as
determined for the purposes of local property taxation.
(G) "Occupy" means to make expenditures to alter or repair
a vacant facility equal to at least twenty per cent of the market
value of the facility prior to such expenditures, as determined
for the purposes of local property taxation.
(H) "Project site" means all or any part of a facility
that is newly constructed, expanded, renovated, or occupied by an
enterprise.
(I) "Project" means any undertaking by an enterprise to
establish a facility or to improve a project site by expansion,
renovation, or occupancy.
(J) "Position" means the position of one full-time
employee performing a particular set of tasks and duties.
(K) "Full-time employee" means an individual who is
employed for consideration by an enterprise for at least
thirty-five hours a week, or who renders any other standard of
service generally accepted by custom or specified by contract as
full-time employment.
(L) "New employee" means a full-time employee first
employed by an enterprise at a facility that is a project site
after the enterprise enters an agreement under section 5709.62 or
5709.63 of the Revised Code. "New employee" does not include an
employee if, immediately prior to being employed by the
enterprise, the employee was employed by an enterprise that is a
related member or predecessor enterprise of that enterprise.
(M) "Unemployed person" means any person who is totally
unemployed in this state, as that term is defined in division (M)
of section 4141.01 of the Revised Code, for at least ten
consecutive weeks immediately preceding his THAT PERSON'S
employment at a
facility that is a project site, or who is so unemployed for at
least twenty-six of the fifty-two weeks immediately preceding his
THAT PERSON'S
employment at such a facility.
(N) "JTPA eligible employee" means any individual who is
eligible for employment or training under the "Job Training
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as amended.
(O) "First used in business" means that the property
referred to has not been used in business in this state by the
enterprise that owns it, or by an enterprise that is a related
member or predecessor enterprise of such an enterprise, other
than as inventory, prior to being used in business at a facility
as the result of a project.
(P) "Training program" means any noncredit training
program or course of study that is offered by any state college
or university; university branch district; community college;
technical college; nonprofit college or university certified
under section 1713.02 of the Revised Code; school district; joint
vocational school district; school registered and authorized to
offer programs under section 3332.05 of the Revised Code; an
entity administering any federal, state, or local adult education
and training program; or any enterprise; and that meets all of
the following requirements:
(1) It is approved by the director of development;
(2) It is established or operated to satisfy the need of a
particular industry or enterprise for skilled or semi-skilled
employees;
(3) An individual is required to complete the course or
program before filling a position at a project site.
(Q) "Development" means to engage in the process of
clearing and grading land, making, installing, or constructing
water distribution systems, sewers, sewage collection systems,
steam, gas, and electric lines, roads, curbs, gutters, sidewalks,
storm drainage facilities, and construction of other facilities
or buildings equal to at least fifty per cent of the market value
of the facility prior to the expenditures, as determined for the
purposes of local property taxation.
(R) "Large manufacturing facility" means a single Ohio
facility that employed an average of at least one thousand
individuals each year during the five CALENDAR years preceding
an
agreement authorized under division (C)(3) of section 5709.62 or
division (A)(B)(2) of section 5709.63 of the Revised Code.
FOR PURPOSES OF THIS DIVISION, BOTH OF THE FOLLOWING
APPLY:
(1) A SINGLE OHIO
MANUFACTURING FACILITY EMPLOYED AN AVERAGE OF AT LEAST ONE
THOUSAND INDIVIDUALS DURING THE FIVE CALENDAR YEARS PRECEDING
ENTERING INTO SUCH AN AGREEMENT IF ONE-FIFTH OF THE SUM OF THE
NUMBER OF EMPLOYEES EMPLOYED ON THE HIGHEST EMPLOYMENT DAY
DURING EACH OF THE FIVE CALENDAR YEARS EQUALS OR EXCEEDS ONE
THOUSAND.
(2) THE HIGHEST EMPLOYMENT DAY IS THE DAY OR DAYS DURING
A CALENDAR YEAR ON WHICH THE NUMBER OF EMPLOYEES EMPLOYED AT A
SINGLE OHIO MANUFACTURING FACILITY WAS
GREATER THAN ON ANY OTHER DAY DURING THE CALENDAR YEAR.
(S) "Business cycle" means the cycle of business activity
usually regarded as passing through alternating stages of
prosperity and depression.
(T) "Making retail sales" means the effecting of
transactions wherein one party is obligated to pay the price and
the other party is obligated to provide a service or to transfer
title to or possession of the item sold.
(U) "Environmentally contaminated" means that hazardous
substances exist at a facility under conditions that have caused
or would cause the facility to be identified as contaminated by
the state or federal environmental protection agency. These may
include facilities located at sites identified in the master
sites list or similar database maintained by the state
environmental protection agency if the sites have been
investigated by the agency and found to be contaminated.
(V) "Remediate" means to make expenditures to clean up an
environmentally contaminated facility so that it is no longer
environmentally contaminated that equal at least ten per cent of
the real property market value of the facility prior to such
expenditures as determined for the purposes of property taxation.
(W) "Related member" has the same meaning as defined in
section 5733.042 of the Revised Code without regard to division
(B) of that section, except that it is used with respect to an
enterprise rather than a taxpayer.
(X) "Predecessor enterprise" means an enterprise from
which the assets or equity of another enterprise has been
transferred, which transfer resulted in the full or partial
nonrecognition of gain or loss, or resulted in a carryover basis,
both as determined by rule adopted by the tax commissioner.
(Y) "Successor enterprise" means an enterprise to which
the assets or equity of another enterprise has been transferred,
which transfer resulted in the full or partial nonrecognition of
gain or loss, or resulted in a carryover basis, both as
determined by rule adopted by the tax commissioner.
Sec. 5733.33. (A) As used in this section:
(1) "Manufacturing machinery and equipment" means engines
and machinery, and tools and implements, of every kind used, or
designed to be used, in refining and manufacturing.
(2) "New manufacturing machinery and equipment" means
manufacturing machinery and equipment, the original use in this
state of which commences with the taxpayer or with a partnership
of which the taxpayer is a partner.
(3)(a) "Purchase" has the same meaning as in section 179(d)(2) of the
Internal Revenue Code.
(b) Any purchase, for purposes of this section, is
considered to occur at the time the agreement to acquire the
property to be purchased becomes binding.
(c) Notwithstanding section 179(d) of the Internal Revenue
Code, a taxpayer's direct or indirect acquisition of new
manufacturing machinery and equipment is not purchased on or after
July 1, 1995, if the taxpayer, or a person whose relationship to the taxpayer
is described in subparagraphs (A), (B), or (C) of section 179(d)(2) of the
Internal Revenue Code, had directly or
indirectly entered into a binding agreement to acquire the
property at any time prior to July 1, 1995.
(4) "Qualifying period" means the period that begins July 1,
1995, and ends December 31, 2000.
(5) "County average new manufacturing machinery and
equipment investment" means either of the following:
(a) The average annual cost of new
manufacturing machinery and equipment purchased for use in the
county during baseline years, in the case
of a taxpayer or partnership that was in existence for more than one year
during baseline years.
(b) Zero, in the case of a taxpayer or partnership that was not
in existence for more than one year during baseline
years.
(6) "Partnership" includes a limited
liability company formed under Chapter
1705. of the Revised
Code or under the laws of any
other state, provided that the company is not classified for
federal income tax purposes as an association taxable as a
corporation.
(7) "Partner" includes a member of a limited liability company formed
under Chapter
1705. of the Revised
Code or under the laws of any
other state, provided that the company is not classified for
federal income tax purposes as an association taxable as a
corporation.
(8) "Distressed area" means either a municipal corporation
that has a population of at least fifty thousand or a county
that meets two of the following criteria of economic
distress, or a municipal corporation the majority of the population of which
is situated in such a county:
(a) Its average rate of unemployment, during the
most recent five-year period for which data are available, is
equal to at least one hundred twenty-five per cent of the
average rate of unemployment for the United States for the same period;
(b) It has a per capita income equal to or below
eighty per cent of the median county per capita income of the
United States as determined by the
most recently available figures from the
United
States census bureau;
(c)(i) In the
case of a municipal corporation, at least twenty per cent of the
residents have a total income for the most recent census year
that is below the official poverty line;
(ii) In the case of a county, in intercensal
years, the county has a ratio of transfer payment income to
total county income equal to or greater than twenty-five
per cent.
(9) "Eligible area" means a distressed area, a labor
surplus area, an inner city area, or a situational distress
area.
(10) "Inner city area" means, in a municipal corporation
that has a population of at least one hundred thousand and does
not meet the criteria of a labor surplus area or a distressed area, targeted
investment areas established by the municipal corporation within
its boundaries that are comprised of the most recent census
block tracts that individually have at least twenty per cent of
their population at or below the state poverty level
or other census block tracts contiguous to such census block tracts.
(11) "Labor surplus area" means an area designated as a
labor surplus area by the United States department of
labor.
(12) "Official poverty line" has the same meaning as in
division (A) of section 3923.51 of the Revised Code.
(13) "Situational distress area" means a county or a
municipal corporation that has experienced or is experiencing a
closing or downsizing of a major employer, that will adversely
affect the county's or municipal corporation's economy. In
order to be designated as a situational distress area for a
period not to exceed thirty-six months, the county or municipal
corporation may petition the director of
development. The petition shall include written
documentation that demonstrates all of the following adverse effects on the
local economy:
(a) The number of jobs lost by the closing or downsizing;
(b) The impact that the job loss has on the
county's or municipal corporation's unemployment rate as
measured by the Ohio bureau of
employment services;
(c) The annual payroll associated with the job loss;
(d) The amount of state and local taxes associated with the job loss;
(e) The impact that the closing or downsizing has on the suppliers located in
the county or municipal corporation.
(14) "Cost" has the same meaning and limitation as in section
179(d)(3) of the Internal Revenue Code.
(15) "Baseline years" means:
(a) Calendar years 1992, 1993, and 1994, with regard to a credit
claimed for the purchase during calendar year 1995, 1996, 1997, or 1998 of new
manufacturing machinery and equipment;
(b) Calendar years 1993, 1994, and 1995, with regard to a credit
claimed for the purchase during calendar year 1999 of new manufacturing
machinery and equipment;
(c) Calendar years 1994, 1995, and 1996, with regard to a credit
claimed for the purchase during calendar year 2000 of new manufacturing
machinery and equipment.
(B)(1) A nonrefundable credit is allowed against
the tax imposed by section 5733.06 of the Revised Code for a
taxpayer that purchases
new manufacturing machinery and equipment during the qualifying
period, provided that the new manufacturing machinery and
equipment is ARE installed in this state no later than
December 31, 2001.
(2) The credit is also available to a taxpayer that is a
partner in a partnership that purchases new manufacturing
machinery and equipment during the qualifying period, provided that the
partnership installs the new manufacturing machinery and equipment in this
state no later than December 31, 2001. The taxpayer
shall determine the credit
amount as provided in division (H) of this section.
(3)(a) Except as otherwise provided in division
(B)(3)(b)
of this section, a credit may be claimed under this section in excess of one
million dollars only if the cost of all manufacturing machinery
and equipment owned in this state by the taxpayer claiming the
credit on the last day of the calendar year exceeds the cost of
all manufacturing machinery and equipment owned in this state by
the taxpayer on the first day of that calendar year.
As used in division (B)(3)(a) of this
section, "calendar year" means the calendar year in which the machinery and
equipment for which the credit is claimed was purchased.
(b) Division
(B)(3)(a)
of this section does not apply if the taxpayer claiming the
credit applies for and is issued a waiver of the requirement of
that division. A taxpayer may apply to the director of the
department of development for such a waiver in the manner
prescribed by the director, and the director may issue such a
waiver if the director determines that granting the credit is
necessary to increase or retain employees
in this state, and that the credit
has not caused relocation of manufacturing machinery and
equipment among counties within this state for the primary purpose of
qualifying for the credit.
(C)(1) Except as otherwise provided in division (C)(2)
of this section, the credit amount
is equal to seven and one-half per cent of the excess of the cost of the new
manufacturing machinery and equipment
purchased during the calendar year for use in a county over the county
average new manufacturing machinery and equipment investment for
that county.
(2) As used in division (C)(2) of
this section, "county excess" means the taxpayer's excess cost for a county as
computed under division (C)(1) of this
section.
For a taxpayer with a county excess, whose purchases included purchases
for use in any eligible area in the county, the
credit amount is equal to thirteen and one-half per cent of the
cost of the new manufacturing machinery and
equipment purchased during the calendar year for use in the
eligible areas in the county,
provided that the cost subject to the thirteen and one-half per cent rate
shall not exceed the county excess. If the county excess is greater than the
cost of the new
manufacturing
machinery and equipment purchased during the calendar
year for use in eligible areas in the county, the credit amount
also shall include an amount equal
to seven and one-half per cent of the amount of the difference.
(3) If a taxpayer is allowed a credit for purchases of new manufacturing
machinery and equipment in more than one county or eligible area, it shall
aggregate the
amount of those credits each year.
(4) The taxpayer shall claim one-seventh of the credit
amount for the tax year immediately following the calendar year
in which the new manufacturing machinery and equipment is
purchased for use in the county by the
taxpayer or partnership. One-seventh of the
taxpayer credit amount is allowed for each of the six ensuing
tax years. Except for carried-forward amounts, the taxpayer is not allowed
any credit amount remaining if the
new manufacturing machinery and equipment is sold by the
taxpayer or partnership or is transferred by the taxpayer or
partnership out of the county before the end of the seven-year
period.
(5)(a) A taxpayer that acquires manufacturing machinery
and equipment as a result of a merger with the
taxpayer with whom commenced the original use in this state of
the manufacturing machinery and equipment, or with a taxpayer
that was a partner in a partnership with whom commenced the
original use in this state of the manufacturing machinery and
equipment, is entitled to any remaining or carried-forward
credit amounts to which the taxpayer was entitled.
(b) A TAXPAYER THAT ENTERS INTO AN AGREEMENT UNDER DIVISION
(C)(3) OF SECTION 5709.62 of the Revised Code AND THAT ACQUIRES MANUFACTURING
MACHINERY OR EQUIPMENT AS A
RESULT OF PURCHASING A LARGE MANUFACTURING FACILITY, AS DEFINED IN SECTION
5709.61 of the Revised Code, FROM ANOTHER TAXPAYER WITH WHOM COMMENCED THE ORIGINAL USE IN
THIS
STATE OF THE MANUFACTURING MACHINERY OR EQUIPMENT, AND THAT OPERATES THE LARGE
MANUFACTURING FACILITY SO PURCHASED, IS ENTITLED TO ANY REMAINING OR
CARRIED-FORWARD CREDIT AMOUNTS TO WHICH THE OTHER TAXPAYER WHO SOLD THE
FACILITY WOULD HAVE BEEN
ENTITLED UNDER THIS SECTION HAD THE OTHER TAXPAYER NOT SOLD THE MANUFACTURING
FACILITY OR EQUIPMENT.
(c) New manufacturing machinery and equipment is
not considered sold if a pass-through entity transfers to
another pass-through entity substantially all of its assets as
part of a plan of reorganization under which substantially all
gain and loss is not recognized by the pass-through entity that
is transferring the new manufacturing machinery and equipment to
the transferee and under which the transferee's basis in the new
manufacturing machinery and equipment is determined, in whole or
in part, by reference to the basis of the pass-through entity
which transferred the new manufacturing machinery and equipment
to the transferee.
(c)(d) Division (C)(5) of this section shall apply only if
the acquiring taxpayer or transferee does not sell
the new manufacturing machinery and equipment or transfer the
new manufacturing machinery and equipment out of the county
before the end of the seven-year period to which division
(C)(4) of this section
refers.
(e) DIVISION(C)(5)(b)
OF THIS SECTION APPLIES ONLY TO THE EXTENT THAT THE TAXPAYER THAT SOLD THE
MANUFACTURING MACHINERY OR EQUIPMENT, UPON REQUEST, TIMELY
PROVIDES TO THE TAX COMMISSIONER ANY INFORMATION THAT THE TAX
COMMISSIONER CONSIDERS TO BE NECESSARY TO ASCERTAIN ANY
REMAINING OR CARRIED-FORWARD AMOUNTS TO WHICH THE TAXPAYER THAT
SOLD THE FACILITY WOULD HAVE BEEN ENTITLED UNDER THIS SECTION
HAD THE TAXPAYER NOT SOLD THE MANUFACTURING MACHINERY OR
EQUIPMENT. NOTHING IN DIVISION(C)(5)(b)
OR (e) OF THIS SECTION SHALL BE CONSTRUED TO ALLOW
A TAXPAYER TO CLAIM ANY CREDIT AMOUNT WITH RESPECT TO THE
ACQUIRED MANUFACTURING MACHINERY OR EQUIPMENT THAT IS GREATER
THAN THE AMOUNT THAT WOULD HAVE BEEN AVAILABLE TO THE OTHER
TAXPAYER THAT SOLD THE MANUFACTURING MACHINERY OR EQUIPMENT HAD
THE OTHER TAXPAYER NOT SOLD THE MANUFACTURING MACHINERY OR
EQUIPMENT.
(D) The taxpayer shall claim the
credit in the order required under section 5733.98 of the
Revised Code. Each year, any credit
amount in excess of the tax due under section 5733.06
of the Revised Code after
allowing for any other credits that precede the credit under
this section in that order may be carried forward for three
tax years.
(E) A taxpayer purchasing new
manufacturing machinery and equipment and intending to claim the
credit shall file, with the department of development, a notice
of intent to claim the credit on a form prescribed by the
department of development. The department of development shall
inform the tax commissioner of the notice of intent to claim the
credit.
(F) The director of development shall annually
certify, by the first day of January of each
year during the qualifying period, the eligible areas for the
tax credit for the calendar year that includes that first day of
January. The director shall
send a copy of the certification to the tax commissioner.
(G) New manufacturing machinery and equipment for which a
taxpayer claims the credit under
section 5733.31, 5733.311, 5747.26,
or 5747.261 of the Revised Code shall
not be considered new manufacturing machinery and equipment for purposes of
the credit under this section.
(H)(1) With regard to a taxpayer that is a partner in a partnership,
the county average new manufacturing machinery and equipment investment
shall be determined based on the number of years, if any, the
partnership was in existence during baseline years. In determining the
county average new manufacturing machinery and equipment investment, the
excess of the cost of new manufacturing machinery and equipment purchased
during the calendar year, and all other amounts necessary to calculate the
credit allowed by this section, the taxpayer shall include the
taxpayer's distributive share of the cost of new manufacturing
machinery and equipment purchased by a partnership in which the
corporation had a direct or indirect investment during the
calendar year prior to the first day of a tax year for which the
taxpayer is claiming the credit. These determinations and
calculations shall be made for the taxpayer's calendar year
during which the partnership made the purchase.
(2) Nothing in this section shall be construed to limit or disallow
pass-through treatment of a pass-through entity's income,
deductions, credits, or other amounts necessary to compute the
tax imposed by section 5733.06 of the Revised Code and the credits allowed by
this chapter.
Sec. 5747.51. (A) Within ten days after the fifteenth day
of July of each year, the tax commissioner shall make and certify
to the county auditor of each county an estimate of the amount of
the local government fund to be allocated to the undivided local
government fund of each county for the ensuing calendar year and
the estimated amount to be received by the undivided local
government fund of each county from the taxes levied pursuant to
section 5707.03 of the Revised Code for the ensuing calendar
year.
(B) At each annual regular session of the county budget
commission convened pursuant to section 5705.27 of the Revised
Code, each auditor shall present to the commission the
certificate of the commissioner, the annual tax budget and
estimates, and the records showing the action of the commission
in its last preceding regular session. The estimates shown on
the certificate of the commissioner of the amount to be allocated
from the local government fund and the amount to be received from
taxes levied pursuant to section 5707.03 of the Revised Code
shall be combined into one total comprising the estimate of the
undivided local government fund of the county. The commission,
after extending to the representatives of each subdivision an
opportunity to be heard, under oath administered by any member of
the commission, and considering all the facts and information
presented to it by the auditor, shall determine the amount of the
undivided local government fund needed by and to be apportioned
to each subdivision for current operating expenses, as shown in
the tax budget of the subdivision. This determination shall be
made pursuant to divisions (C) to (I) of this section, unless the
commission has provided for a formula pursuant to section 5747.53
of the Revised Code.
Nothing in this section prevents the budget
commission, for the purpose of apportioning the undivided local
government fund, from inquiring into the claimed needs of any
subdivision as stated in its tax budget, or from adjusting
claimed needs to reflect actual needs. For the purposes of this
section, "current operating expenses" means the lawful
expenditures of a subdivision, except those for permanent
improvements and except payments for interest, sinking fund, and
retirement of bonds, notes, and certificates of indebtedness of
the subdivision.
(C) The commission shall determine the combined total of
the estimated expenditures, including transfers, from the general
fund and any special funds other than special funds established
for road and bridge; street construction, maintenance, and
repair; state highway improvement; and gas, water, sewer, and
electric public utilities operated by a subdivision, as shown in
the subdivision's tax budget for the ensuing calendar year.
(D) From the combined total of expenditures calculated
pursuant to division (C) of this section, the commission shall
deduct the following expenditures, if included in these funds in
the tax budget:
(1) Expenditures for permanent improvements as defined in
division (E) of section 5705.01 of the Revised Code;
(2) In the case of counties and townships, transfers to
the road and bridge fund, and in the case of municipalities,
transfers to the street construction, maintenance, and repair
fund and the state highway improvement fund;
(3) Expenditures for the payment of debt charges;
(4) Expenditures for the payment of judgments.
(E) In addition to the deductions made pursuant to
division (D) of this section, revenues accruing to the general
fund and any special fund considered under division (C) of this
section from the following sources shall be deducted from the
combined total of expenditures calculated pursuant to division
(C) of this section:
(1) Taxes levied within the ten-mill limitation, as
defined in section 5705.02 of the Revised Code;
(2) The budget commission allocation of estimated county
library and local government support fund revenues to be
distributed pursuant to section 5747.48 of the Revised Code;
(3) Estimated unencumbered balances as shown on the tax
budget as of the thirty-first day of December of the current year
in the general fund, but not any estimated balance in any special
fund considered in division (C) of this section;
(4) Revenue, including transfers, shown in the general
fund and any special funds other than special funds established
for road and bridge; street construction, maintenance, and
repair; state highway improvement; and gas, water, sewer, and
electric public utilities, from all other sources except those
that a subdivision receives from an additional tax or service
charge voted by its electorate or receives from special
assessment or revenue bond collection. For the purposes of this
division, where the charter of a municipal corporation prohibits
the levy of an income tax, an income tax levied by the
legislative authority of such municipal corporation pursuant to
an amendment of the charter of that municipal corporation to
authorize such a levy represents an additional tax voted by the
electorate of that municipal corporation. For the purposes of
this division, any measure adopted by a board of county
commissioners pursuant to section 322.02, 324.02, 4504.02, or
5739.021 of the Revised Code, including those measures upheld by
the electorate in a referendum conducted pursuant to section
322.021, 324.021, 4504.021, or 5739.022 of the Revised Code,
shall not be considered an additional tax voted by the
electorate.
Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE
REVISED CODE, MONEY in a reserve balance account
established by a
county or, township, OR MUNICIPAL CORPORATION
under section 305.23, 505.83, or 505.831 5705.13 of the
Revised Code or by a municipal corporation pursuant to an
ordinance or resolution that has been included as a reserve
balance in the county's, township's, or municipal corporation's
budget under section 5705.29 of the Revised Code shall not
be considered an unencumbered balance or revenue under division
(E)(3) or (4) of this section.
If a COUNTY, TOWNSHIP, OR municipal corporation has created and
maintains a NONEXPENDABLE TRUST fund exclusively for the purpose of
investing
the principal of
the fund and using the investment earnings to fund expenditures UNDER
SECTION 5705.131 of the Revised Code,
the principal of the fund, and any additions to the principal
arising from sources other than the reinvestment of investment
earnings arising from such a fund, shall not be considered an
unencumbered balance or revenue under division
(E)(3) or (4) of this section. Only investment earnings arising from
investment of the
principal or INVESTMENT OF SUCH additions to principal may be
considered an unencumbered balance or revenue under those divisions.
(F) The total expenditures calculated pursuant to division
(C) of this section, less the deductions authorized in divisions
(D) and (E) of this section, shall be known as the "relative
need" of the subdivision, for the purposes of this section.
(G) The budget commission shall total the relative need of
all participating subdivisions in the county, and shall compute a
relative need factor by dividing the total estimate of the
undivided local government fund by the total relative need of all
participating subdivisions.
(H) The relative need of each subdivision shall be
multiplied by the relative need factor to determine the
proportionate share of the subdivision in the undivided local
government fund of the county; provided, that the maximum
proportionate share of a county shall not exceed the following
maximum percentages of the total estimate of the undivided local
government fund governed by the relationship of the percentage of
the population of the county that resides within municipal
corporations within the county to the total population of the
county as reported in the reports on population in Ohio by the
department of development as of the twentieth day of July of the
year in which the tax budget is filed with the budget commission:
Percentage of
|
Percentage share
|
municipal population
|
of the county
|
within the county:
|
shall not exceed:
|
Less than forty-one per cent | Sixty per cent |
Forty-one per cent or more but less than eighty-one per cent | Fifty per cent |
Eighty-one per cent or more | Thirty per cent |
Where the proportionate share of the county exceeds the
limitations established in this division, the budget commission
shall adjust the proportionate shares determined pursuant to this
division so that the proportionate share of the county does not
exceed these limitations, and it shall increase the proportionate
shares of all other subdivisions on a pro rata basis. In
counties having a population of less than one hundred thousand,
not less than ten per cent shall be distributed to the townships
therein.
(I) The proportionate share of each subdivision in the
undivided local government fund determined pursuant to division
(H) of this section for any calendar year shall not be less than
the product of the average of the percentages of the undivided
local government fund of the county as apportioned to that
subdivision for the calendar years 1968, 1969, and 1970,
multiplied by the total amount of the undivided local government
fund of the county apportioned pursuant to former section 5735.23
of the Revised Code for the calendar year 1970. For the purposes
of this division, the total apportioned amount for the calendar
year 1970 shall be the amount actually allocated to the county in
1970 from the state collected intangible tax as levied by section
5707.03 of the Revised Code and distributed pursuant to section
5725.24 of the Revised Code, plus the amount received by the
county in the calendar year 1970 pursuant to division (B)(1) of
former section 5739.21 of the Revised Code, and distributed
pursuant to former section 5739.22 of the Revised Code. If the
total amount of the undivided local government fund for any
calendar year is less than the amount of the undivided local
government fund apportioned pursuant to former section 5739.23 of
the Revised Code for the calendar year 1970, the minimum amount
guaranteed to each subdivision for that calendar year pursuant to
this division shall be reduced on a basis proportionate to the
amount by which the amount of the undivided local government fund
for that calendar year is less than the amount of the undivided
local government fund apportioned for the calendar year 1970.
(J) On the basis of such apportionment, the county auditor
shall compute the percentage share of each such subdivision in
the undivided local government fund and shall at the same time
certify to the tax commissioner the percentage share of the
county as a subdivision. No payment shall be made from the
undivided local government fund, except in accordance with such
percentage shares.
Within ten days after the budget commission has made its
apportionment, whether conducted pursuant to section 5747.51 or
5747.53 of the Revised Code, the auditor shall publish a list of
the subdivisions and the amount each is to receive from the
undivided local government fund and the percentage share of each
subdivision, in a newspaper or newspapers of countywide
circulation, and send a copy of such allocation to the tax
commissioner.
The county auditor shall also send by certified mail,
return receipt requested, a copy of such allocation to the fiscal
officer of each subdivision entitled to participate in the
allocation of the undivided local government fund of the county.
This copy shall constitute the official notice of the commission
action referred to in section 5705.37 of the Revised Code.
All money received into the treasury of a subdivision from
the undivided local government fund in a county treasury shall be
paid into the general fund and used for the current operating
expenses of the subdivision.
If a municipal corporation maintains a municipal
university, such municipal university, when the board of trustees
so requests the legislative authority of the municipal
corporation, shall participate in the money apportioned to such
municipal corporation from the total local government fund,
however created and constituted, in such amount as requested by
the board of trustees, provided such sum does not exceed nine per
cent of the total amount paid to the municipal corporation.
If any public official fails to maintain the records
required by sections 5747.50 to 5747.55 of the Revised Code, or
by the rules issued by the tax commissioner, the auditor of
state, or the treasurer of state, pursuant to such sections, or
fails to comply with any law relating to the enforcement of such
sections, the local government fund money allocated to the county
shall be withheld until such time as the public official has
complied with such sections or such law or the rules issued
pursuant thereto.
Sec. 5747.62. (A) As used in this section and section
5747.63 of the Revised Code, "subdivision" means a municipal
corporation, township, park district, or county.
(B) At each annual regular session of the county budget
commission convened pursuant to section 5705.27 of the Revised
Code, each auditor shall present to the commission the
certificate of the commissioner, the annual tax budget and
estimates, and the records showing the action of the commission
in its last preceding regular session. The commission, after
extending to the representatives of each subdivision an
opportunity to be heard, under oath administered by any member of
the commission, and considering all the facts and information
presented to it by the auditor, shall determine the amount of the
undivided local government revenue assistance fund needed by and
to be apportioned to each subdivision for current operating
expenses, as shown in the tax budget of the subdivision. This
determination shall be made pursuant to divisions (C) to (H) of
this section, unless the commission has provided for a formula
pursuant to section 5747.63 of the Revised Code. Nothing in this
section prevents the budget commission, for the purpose of
apportioning the undivided local government revenue assistance
fund, from inquiring into the claimed needs of any subdivision as
stated in its tax budget, or from adjusting claimed needs to
reflect actual needs. For the purposes of this section, "current
operating expenses" means the lawful expenditures of a
subdivision, except those for permanent improvements and except
payments for interest, sinking fund, and retirement of bonds,
notes, and certificates of indebtedness of the subdivision.
(C) The commission shall determine the combined total of
the estimated expenditures, including transfers, from the general
fund and any special funds other than special funds established
for road and bridge; street construction, maintenance, and
repair; state highway improvement; and gas, water, sewer, and
electric public utilities operated by a subdivision, as shown in
the subdivision's tax budget for the ensuing calendar year.
(D) From the combined total of expenditures calculated
pursuant to division (C) of this section, the commission shall
deduct the following expenditures, if included in these funds in
the tax budget:
(1) Expenditures for permanent improvements as defined in
division (E) of section 5705.01 of the Revised Code;
(2) In the case of counties and townships, transfers to
the road and bridge fund, and in the case of municipalities,
transfers to the street construction, maintenance, and repair
fund and the state highway improvement fund;
(3) Expenditures for the payment of debt charges;
(4) Expenditures for the payment of judgments.
(E) In addition to the deductions made pursuant to
division (D) of this section, revenues accruing to the general
fund and any special fund considered under division (C) of this
section from the following sources shall be deducted from the
combined total of expenditures calculated pursuant to division
(C) of this section:
(1) Taxes levied within the ten-mill limitation, as
defined in section 5705.02 of the Revised Code;
(2) The budget commission allocation of estimated county
library and local government support fund revenues to be
distributed pursuant to section 5747.48 of the Revised Code;
(3) Estimated unencumbered balances as shown on the tax
budget as of the thirty-first day of December of the current year
in the general fund, but not any estimated balance in any special
fund considered in division (C) of this section;
(4) Revenue, including transfers, shown in the general
fund and any special funds other than special funds established
for road and bridge; street construction, maintenance, and
repair; state highway improvement; and gas, water, sewer, and
electric public utilities, from all other sources except those
that a subdivision receives from an additional tax or service
charge voted by its electorate or receives from special
assessment or revenue bond collection. For the purposes of this
division, where the charter of a municipal corporation prohibits
the levy of an income tax, an income tax levied by the
legislative authority of such municipal corporation pursuant to
an amendment of the charter of that municipal corporation to
authorize such a levy represents an additional tax voted by the
electorate of that municipal corporation. For the purposes of
this division, any measure adopted by a board of county
commissioners pursuant to section 322.02, 324.02, 4504.02, or
5739.021 of the Revised Code, including those measures upheld by
the electorate in a referendum conducted pursuant to section
322.021, 324.021, 4504.021, or 5739.022 of the Revised Code,
shall not be considered an additional tax voted by the
electorate.
Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE
REVISED CODE, MONEY in a reserve balance account
established by a
county or, township, OR MUNICIPAL CORPORATION
under section 305.23, 505.83, or 505.831 of the
Revised Code or by a municipal corporation pursuant to an
ordinance or resolution that has been included as a reserve
balance in the county's, township's, or municipal corporation's
budget under section 5705.29 5705.13 of the Revised Code shall
not be
considered an unencumbered balance or revenue under division
(E)(3) or (4) of this section.
If a COUNTY, TOWNSHIP, OR municipal corporation has created and
maintains a NONEXPENDABLE TRUST fund exclusively for the purpose of
investing the principal of
the fund and using the investment earnings to fund expenditures UNDER
SECTION 5705.131 of the Revised Code, the principal of the fund, and any additions to
the principal
arising from sources other than the reinvestment of investment
earnings arising from such a fund, shall not be considered an
unencumbered balance or revenue under division
(E)(3) or (4) of this section. Only investment earnings arising from
investment of the
principal or INVESTMENT OF SUCH additions to principal may be
considered an
unencumbered balance or revenue under those divisions.
(F) The total expenditures calculated pursuant to division
(C) of this section, less the deductions authorized in divisions
(D) and (E) of this section, shall be known as the "relative
need" of the subdivision, for the purposes of this section.
(G) The budget commission shall total the relative need of
all participating subdivisions in the county, and shall compute a
relative need factor by dividing the total estimate of the
undivided local government revenue assistance fund by the total
relative need of all participating subdivisions.
(H) The relative need of each subdivision shall be
multiplied by the relative need factor to determine the
proportionate share of the subdivision in the undivided local
government revenue assistance fund of the county, provided that
the maximum proportionate share of a county shall not exceed the
following maximum percentages of the total estimate of the
undivided local government revenue assistance fund governed by
the relationship of the percentage of the population of the
county that resides within municipal corporations within the
county to the total population of the county as reported in the
reports on population in Ohio by the department of development as
of the twentieth day of July of the year in which the tax budget
is filed with the budget commission:
Percentage of
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Percentage share
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municipal population
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of the county
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within the county:
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shall not exceed:
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Less than forty-one per cent | Sixty per cent |
Forty-one per cent or more but less than eighty-one per cent | Fifty per cent |
Eighty-one per cent or more | Thirty per cent |
Where the proportionate share of the county exceeds the
limitations established in this division, the budget commission
shall adjust the proportionate shares determined pursuant to this
division so that the proportionate share of the county does not
exceed these limitations, and it shall increase the proportionate
shares of all other subdivisions on a pro rata basis. In
counties having a population of less than one hundred thousand,
not less than ten per cent shall be distributed to the townships
therein.
(I) On the basis of such apportionment, the county auditor
shall compute the percentage share of each such subdivision in
the undivided local government revenue assistance fund and shall
at the same time certify to the tax commissioner the percentage
share of the county as a subdivision. No payment shall be made
from the undivided local government revenue assistance fund,
except in accordance with such percentage shares.
Within ten days after the budget commission has made its
apportionment, whether conducted pursuant to this section or
section 5747.63 of the Revised Code, the auditor shall publish a
list of the subdivisions and the amount each is to receive from
the undivided local government revenue assistance fund and the
percentage share of each subdivision, in a newspaper or
newspapers of countywide circulation, and send a copy of such
apportionment to the tax commissioner.
The county auditor shall also send by certified mail,
return receipt requested, a copy of such apportionment to the
fiscal officer of each subdivision entitled to participate in the
allocation of the undivided local government revenue assistance
fund of the county. This copy shall constitute the official
notice of the commission action referred to in section 5705.37 of
the Revised Code.
All money received by a subdivision from the county
undivided local government revenue assistance fund shall be paid
into the subdivision's general fund and used for current
operating expenses.
If any public official fails to maintain the records
required by sections 5747.61 to 5747.63 of the Revised Code, or
by the rules issued by the tax commissioner, the auditor of
state, or the treasurer of state, pursuant to such sections, or
fails to comply with any law relating to the enforcement of such
sections, the local government revenue assistance fund money
allocated to the county shall be withheld until such time as the
public official has complied with such sections or such law or
the rules issued pursuant thereto.
Section 2. That existing sections 1907.24, 2303.201, 2743.70, 2949.091,
3109.14, 3316.03, 5705.12, 5705.13, 5705.29, 5705.35,
5705.36, 5705.38, 5705.41, 5709.61, 5733.33, 5747.51, and 5747.62 and sections
305.23, 505.83, and
505.831 of the
Revised Code are hereby repealed.
Section 3. Section 1907.24 of the Revised Code is presented in this act
as a composite of the section as amended by Sub. H.B. 423, Am. Sub. H.B. 438,
and Sub. H.B. 455
of the 121st General Assembly, with the new language of
none of the acts shown in capital letters. This is in
recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act.
Section 4. Sections 3316.03 and 5705.29 of the Revised Code are amended by
this act and also by Am. Sub. H.B. 650 of the 122nd General Assembly
(effective July 1, 1998). The amendments of Am. Sub. H.B. 650 are included in
this act in lower case to confirm the intention to retain them, but are not
intended to be effective until July 1, 1998. The amendment by this act to
division (H)(5) of section 5705.29 of the Revised Code takes effect at the
same time as the Am. Sub. H.B. 650 amendment it affects, or at the earliest
time permitted by law, whichever is later.
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