SENATORS Blessing, Mead, Spada, DiDonato, McLin, Austria, Harris, Mumper, Nein, Robert Gardner, Amstutz, Espy

To amend section 5705.41 of the Revised Code to

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enable super blanket certificates to be used by

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subdivisions and local taxing units for qualified

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purchases amounting to $5,000 or less, not just

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those amounting to more than $5,000.

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

Section 1.  That section 5705.41 of the Revised Code be	6
amended to read as follows:	7

Sec. 5705.41.  No subdivision or taxing unit shall:

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(A) Make any appropriation of money except as provided in	9
Chapter 5705. of the Revised Code; provided, that the	10
authorization of a bond issue shall be deemed to be an	11
appropriation of the proceeds of the bond issue for the purpose	12
for which such bonds were issued, but no expenditure shall be made	13
from any bond fund until first authorized by the taxing authority;	14

(B) Make any expenditure of money unless it has been	15
appropriated as provided in such chapter;	16

(C) Make any expenditure of money except by a proper warrant	17
drawn against an appropriate fund;	18

(D)(1) Except as otherwise provided in division (D)(2) of	19
this section, make any contract or give any order involving the	20
expenditure of money unless there is attached thereto a	21
certificate of the fiscal officer of the subdivision that the	22
amount required to meet the obligation or, in the case of a	23
continuing contract to be performed in whole or in part in an	24
ensuing fiscal year, the amount required to meet the obligation in	25
the fiscal year in which the contract is made, has been lawfully	26
appropriated for such purpose and is in the treasury or in process	27
of collection to the credit of an appropriate fund free from any	28
previous encumbrances. This certificate need be signed only by	29
the subdivision's fiscal officer. Every such contract made	30
without such a certificate shall be void, and no warrant shall be	31
issued in payment of any amount due thereon. If no certificate is	32
furnished as required, upon receipt by the taxing authority of the	33
subdivision or taxing unit of a certificate of the fiscal officer	34
stating that there was at the time of the making of such contract	35
or order and at the time of the execution of such certificate a	36
sufficient sum appropriated for the purpose of such contract and	37
in the treasury or in process of collection to the credit of an	38
appropriate fund free from any previous encumbrances, such taxing	39
authority may authorize the drawing of a warrant in payment of	40
amounts due upon such contract, but such resolution or ordinance	41
shall be passed within thirty days from the receipt of after the	42
taxing authority receives such certificate; provided that, if the	43
amount involved is less than one hundred dollars in the case of	44
counties or one thousand dollars in the case of all other	45
subdivisions or taxing units, the fiscal officer may authorize it	46
to be paid without such affirmation of the taxing authority of the	47
subdivision or taxing unit, if such expenditure is otherwise	48
valid.	49

(2) Annually, the board of county commissioners may adopt a	50
resolution exempting for the current fiscal year county purchases	51
of seven hundred fifty dollars or less from the requirement of	52
division (D)(1) of this section that a certificate be attached to	53
any contract or order involving the expenditure of money. The	54
resolution shall state the dollar amount that is exempted from the	55
certificate requirement and whether the exemption applies to all	56
purchases, to one or more specific classes of purchases, or to the	57
purchase of one or more specific items. Prior to the adoption of	58
the resolution, the board shall give written notice to the county	59
auditor that it intends to adopt the resolution. The notice shall	60
state the dollar amount that is proposed to be exempted and	61
whether the exemption would apply to all purchases, to one or more	62
specific classes of purchases, or to the purchase of one or more	63
specific items. The county auditor may review and comment on the	64
proposal, and shall send any comments to the board within fifteen	65
days after receiving the notice. The board shall wait at least	66
fifteen days after giving the notice to the auditor before	67
adopting the resolution. A person authorized to make a county	68
purchase in a county that has adopted such a resolution shall	69
prepare and file with the county auditor, within three business	70
days after incurring an obligation not requiring a certificate, a	71
written document specifying the purpose and amount of the	72
expenditure, the date of the purchase, the name of the vendor, and	73
such additional information as the auditor of state may prescribe.	74

(3) Upon certification by the auditor or other chief fiscal	75
officer that a certain sum of money, not in excess of five	76
thousand dollars, has been lawfully appropriated, authorized, or	77
directed for a certain purpose and is in the treasury or in the	78
process of collection to the credit of a specific line-item	79
appropriation account in a certain fund free from previous and	80
then outstanding obligations or certifications, then for such	81
purpose and from such line-item appropriation account in such	82
fund, over a period not exceeding three months and not extending	83
beyond the end of the fiscal year, expenditures may be made,	84
orders for payment issued, and contracts or obligations calling	85
for or requiring the payment of money made and assumed; provided,	86
that the aggregate sum of money included in and called for by such	87
expenditures, orders, contracts, and obligations shall not exceed	88
the sum so certified. Such a certification need be signed only by	89
the fiscal officer of the subdivision or the taxing district and	90
may, but need not, be limited to a specific vendor. An itemized	91
statement of obligations incurred and expenditures made under such	92
certificate shall be rendered to the auditor or other chief fiscal	93
officer before another such certificate may be issued, and not	94
more than one such certificate shall be outstanding at a time.	95

In addition to providing the certification for expenditures	96
of five thousand dollars or less as provided in this division, a	97
subdivision also may make expenditures, issue orders for payment,	98
and make contracts or obligations calling for or requiring the	99
payment of money made and assumed for specified permitted purposes	100
from a specific line-item appropriation account in a specified	101
fund for a sum of money exceeding five thousand dollars upon the	102
certification by the fiscal officer of the subdivision that this	103
sum of money has been lawfully appropriated, authorized, or	104
directed for a permitted purpose and is in the treasury or in the	105
process of collection to the credit of the specific line-item	106
appropriation account in the specified fund free from previous and	107
then-outstanding obligations or certifications; provided that the	108
aggregate sum of money included in and called for by the	109
expenditures, orders, and obligations shall not exceed the	110
certified sum. The purposes for which a subdivision may lawfully	111
appropriate, authorize, or issue such a certificate are the	112
services of an accountant, architect, attorney at law, physician,	113
professional engineer, construction project manager, consultant,	114
surveyor, or appraiser by or on behalf of the subdivision or	115
contracting authority; fuel oil, gasoline, food items, roadway	116
materials, and utilities; and any purchases exempt from	117
competitive bidding under section 125.04 of the Revised Code and	118
any other specific expenditure that is a recurring and reasonably	119
predictable operating expense. Such a certification shall not	120
extend beyond the end of the fiscal year or, in the case of a	121
board of county commissioners that has established a quarterly	122
spending plan under section 5705.392 of the Revised Code, beyond	123
the quarter to which the plan applies. Such a certificate shall	124
be signed by the fiscal officer and may, but need not, be limited	125
to a specific vendor. An itemized statement of obligations	126
incurred and expenditures made under such a certificate shall be	127
rendered to the fiscal officer for each certificate issued. More	128
than one such certificate may be outstanding at any time.	129

In any case in which a contract is entered into upon a per	130
unit basis, the head of the department, board, or commission for	131
the benefit of which the contract is made shall make an estimate	132
of the total amount to become due upon such contract, which	133
estimate shall be certified in writing to the fiscal officer of	134
the subdivision. Such a contract may be entered into if the	135
appropriation covers such estimate, or so much thereof as may be	136
due during the current year. In such a case the certificate of	137
the fiscal officer based upon the estimate shall be a sufficient	138
compliance with the law requiring a certificate.	139

Any certificate of the fiscal officer attached to a contract	140
shall be binding upon the political subdivision as to the facts	141
set forth therein. Upon request of any person receiving an order	142
or entering into a contract with any political subdivision, the	143
certificate of the fiscal officer shall be attached to such order	144
or contract. "Contract" as used in this section excludes current	145
payrolls of regular employees and officers.	146

Taxes and other revenue in process of collection, or the	147
proceeds to be derived from authorized bonds, notes, or	148
certificates of indebtedness sold and in process of delivery,	149
shall for the purpose of this section be deemed in the treasury or	150
in process of collection and in the appropriate fund. This	151
section applies neither to the investment of sinking funds by the	152
trustees of such funds, nor to investments made under sections	153
731.56 to 731.59 of the Revised Code.	154

No district authority shall, in transacting its own affairs,	155
do any of the things prohibited to a subdivision by this section,	156
but the appropriation referred to shall become the appropriation	157
by the district authority, and the fiscal officer referred to	158
shall mean the fiscal officer of the district authority.	159

Section 2.  That existing section 5705.41 of the Revised Code	160
is hereby repealed.	161