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(125th General Assembly)
(Substitute Senate Bill Number 55)
To amend sections 9.833, 3375.40, 3375.41, and 5705.281 and to enact section 3375.392 of the Revised Code to make changes to the law authorizing political subdivisions to self-insure for health care benefits; to revise the bidding threshold for public improvements applicable to free public libraries; to eliminate the monetary restrictions on life insurance coverage offered by free public libraries to their employees while limiting procurements to group term life insurance; to allow a board of library trustees to authorize its employees to use a credit card held by the library to pay for library business expenses; and to allow the county budget commission to waive certain requirements relating to tax budgets or estimates of contemplated revenue and expenditures in any county in which a single library receives all of the county library and local government support fund or receives all of that portion of the fund that is distributed to libraries.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 9.833, 3375.40, 3375.41, and 5705.281 be amended and section 3375.392 of the Revised Code be enacted to read as follows:
Sec. 9.833. (A) As used in this section, "political
subdivision" means a municipal corporation, township, county,
school district, or other body corporate and politic responsible
for governmental activities in a geographic area smaller than
that of the state.
(B) Political subdivisions that provide health care
benefits for their officers or employees may do any of the
(1) Establish and maintain an individual self-insurance
program with public moneys to provide authorized health care
benefits, including but not limited to, health care, prescription drugs, dental care, and vision care, in accordance with division (C) of this section;
(2) After establishing an individual self-insurance
program, agree with other political subdivisions that have
established individual self-insurance programs for health care
benefits, that their programs will be jointly administered in a
manner specified in the agreement;
(3) Pursuant to a written agreement and in accordance with
division (C) of this section, join in any combination with other
political subdivisions to establish and maintain a joint
self-insurance program to provide health care benefits;
(4) Pursuant to a written agreement, join in any
combination with other political subdivisions to procure or
contract for policies, contracts, or plans of insurance to
provide health care benefits for their officers and employees
subject to the agreement;
(5) Use in any combination any of the policies, contracts,
plans, or programs authorized under this division.
(C) Except as otherwise provided in division
(D)(E) of this
section, the following apply to individual or joint
self-insurance programs established pursuant to this section:
(1) Such funds shall be reserved as are necessary, in the
exercise of sound and prudent actuarial judgment, to cover
potential cost of health care benefits for the officers and
employees of the political subdivision. A report of amounts so
reserved and disbursements made from such funds, together with a
written report of a member of the American academy of actuaries
certifying whether the amounts reserved conform to the
requirements of this division, are computed in accordance with
accepted loss reserving standards, and are fairly stated in
accordance with sound loss reserving principles, shall be
prepared and maintained, within ninety days after the last day of
the fiscal year of the entity for which the report is provided
for that fiscal year, in the office of the program administrator
described in division (C)(3) of this section.
The report required by division (C)(1) of this section
shall include, but not be limited to, disbursements made for the
administration of the pool, including claims paid, costs of the
legal representation of political subdivisions and employees, and
fees paid to consultants.
The program administrator described in division (C)(3) of
this section shall make the report required by this division
available for inspection by any person at all reasonable times
during regular business hours, and, upon the request of such
person, shall make copies of the report available at cost within
a reasonable period of time.
(2) Each political subdivision shall reserve funds
necessary for an individual or joint self-insurance program in a
special fund that may be established pursuant to an ordinance or
resolution of the political subdivision and not subject to
section 5705.12 of the Revised Code. The political subdivision
may allocate the costs of insurance or any self-insurance
program, or both, among the funds or accounts in the
subdivision's treasury on the basis of relative exposure and loss
(3) A contract may be awarded, without the necessity of
competitive bidding, to any person, political subdivision,
nonprofit corporation organized under Chapter 1702. of the
Revised Code, or regional council of governments created under
Chapter 167. of the Revised Code for purposes of administration
of an individual or joint self-insurance program. No such
contract shall be entered into without full, prior, public
disclosure of all terms and conditions.
Such The disclosure shall
include, at a minimum, a statement listing all representations
made in connection with any possible savings and losses resulting
from such the contract, and potential liability of any political
subdivision or employee. The proposed contract and statement
shall be disclosed and presented at a meeting of the political
subdivision not less than one week prior to the meeting at which
the political subdivision authorizes the contract.
A contract awarded to a nonprofit corporation or a regional council of governments under this division may provide that all employees of the nonprofit corporation or regional council of governments and the employees of all entities related to the nonprofit corporation or regional council of governments may be covered by the individual or joint self-insurance program under the terms and conditions set forth in the contract.
(4) The individual or joint self-insurance program shall
include a contract with a member of the American academy of
actuaries for the preparation of the written evaluation of the
reserve funds required under division (C)(1) of this section.
(5) A joint self-insurance program may allocate the costs
of funding the program among the funds or accounts in the
treasuries of the participating political subdivisions on the
basis of their relative exposure and loss experience.
(6) An individual self-insurance program may allocate the costs of funding
program among the funds or accounts in the treasury of the political
subdivision that established the program.
(7) Two or more political subdivisions may also authorize
the establishment and maintenance of a joint health care cost
containment program, including, but not limited to, the employment
of risk managers, health care cost containment specialists, and
consultants, for the purpose of preventing and reducing health
care costs covered by insurance, individual self-insurance, or joint
(8) A political subdivision is not liable under a joint
self-insurance program for any amount in excess of amounts
payable pursuant to the written agreement for the participation
of the political subdivision in the joint self-insurance program.
Under a joint self-insurance program agreement, a political
subdivision may, to the extent permitted under the written
agreement, assume the risks of any other political subdivision.
A joint self-insurance program established under this section is
deemed a separate legal entity for the public purpose of enabling
the members of the joint self-insurance program to obtain
insurance or to provide for a formalized, jointly administered
self-insurance fund for its members. An entity created pursuant
to this section is exempt from all state and local taxes.
(9) Any political subdivision may issue general obligation
bonds, or special obligation bonds
which that are not payable from
real or personal property taxes, and may also issue notes in
anticipation of such bonds, pursuant to an ordinance or
resolution of its legislative authority or other governing body
for the purpose of providing funds to pay expenses associated
with the settlement of claims, whether by way of a reserve or
otherwise, and to pay the political subdivision's portion of the
cost of establishing and maintaining an individual or joint
self-insurance program or to provide for the reserve in the
special fund authorized by division (C)(2) of this section.
In its ordinance or resolution authorizing bonds or notes
under this section, a political subdivision may elect to issue
such bonds or notes under the procedures set forth in Chapter
133. of the Revised Code. In the event of such an election,
notwithstanding Chapter 133. of the Revised Code, the maturity of
the bonds may be for any period authorized in the ordinance or
resolution not exceeding twenty years, which period shall be the
maximum maturity of the bonds for purposes of section 133.22 of
the Revised Code.
Bonds and notes issued under this section shall not be
considered in calculating the net indebtedness of the political
subdivision under sections 133.04, 133.05, 133.06, and 133.07 of
the Revised Code. Sections 9.98 to 9.983 of the Revised Code are
hereby made applicable to bonds or notes authorized under this
(10) A joint self-insurance program is not an insurance
company. Its operation does not constitute doing an insurance
business and is not subject to the insurance laws of this state.
(D) A political subdivision may procure group life insurance for its employees in conjunction with an individual or joint self-insurance program authorized by this section, provided that the policy of group life insurance is not self-insured.
(E) Divisions (C)(1), (2), and (4) of this section do not
apply to individual self-insurance programs in municipal
corporations, townships, or counties.
Sec. 3375.392. (A) A board of library trustees appointed pursuant to section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22, or 3375.30 of the Revised Code may authorize an officer, employee, or appointee of the free public library under its jurisdiction to use a credit card that the library holds to pay for expenses related to library business. The debt incurred as a result of the use of the credit card shall be paid from library funds.
(B) Misuse of a credit card of a free public library by an officer, employee, or appointee of the library is subject to section 2913.21 of the Revised Code.
The officer, employee, or appointee also may be found personally liable to the library in a civil action for the officer's, employee's, or appointee's misuse of the library's credit card.
(C) Any officer, employee, or appointee of a free public library who is authorized to use a credit card that the library holds and who suspects the loss, the theft, or another person's possible unauthorized use of the credit card shall notify the board of library trustees immediately in writing of the suspected loss, theft, or possible unauthorized use. The officer, employee, or appointee may be held personally liable to the library for any unauthorized debt resulting from the credit card's loss, theft, or unauthorized use in the amount of fifty dollars or the amount charged to the credit card as a result of the loss, theft, or unauthorized use, whichever is less.
Sec. 3375.40. Each board of library trustees appointed
section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,
or 3375.30 of the Revised Code may
do the following:
(A) Hold title to and have the custody of all real and
personal property of the free public library under its
(B) Expend for library purposes, and in the exercise of
the power enumerated in this section, all moneys, whether derived
from the county library and local government support fund or
otherwise, credited to the free public library under its
jurisdiction and generally do all things it considers necessary
for the establishment, maintenance, and improvement of the
library under its jurisdiction;
(C) Purchase, lease, construct, remodel, renovate, or
otherwise improve, equip, and furnish buildings or parts of
buildings and other real property, and purchase, lease, or otherwise acquire
motor vehicles and other
personal property, necessary for the proper
maintenance and operation of the free public
library under its
jurisdiction, and pay
thereof in installments or otherwise.
Financing of these costs may be provided through the issuance of notes,
through an installment sale, or through a lease-purchase agreement. Any such
notes shall be issued pursuant to section 3375.404 of the Revised Code.
(D) Purchase, lease, lease with an option to purchase, or
erect buildings or parts of buildings to be used as main
libraries, branch libraries, or library stations pursuant to
section 3375.41 of the Revised Code;
(E) Establish and maintain a main library, branches,
library stations, and traveling library service within the
territorial boundaries of the political subdivision or district over which
it has jurisdiction of free public library service;
Except as otherwise provided in this division, establish and maintain branches, library stations, and
traveling library service in any school district, outside the
territorial boundaries of the political subdivision or district over which
it has jurisdiction of free public library service, upon
application to and approval of the state library board, pursuant
to section 3375.05 of the Revised Code ; provided the. The board of
trustees of any free public library maintaining branches,
stations, or traveling-book traveling library service, outside the territorial
boundaries of the political subdivision or district over which it has
jurisdiction of free public library service, on September 4, 1947, may
continue to maintain and operate
those stations, and
traveling library service without the approval of the state
library board ;.
(G) Appoint and fix the compensation of all of the
employees of the free public library under its jurisdiction
the reasonable cost of tuition for any of its employees who
enroll in a course of study the board considers essential to the
duties of the employee or to the improvement of the employee's
performance ;, and reimburse applicants for employment for any
reasonable expenses they incur by appearing for a personal
(H) Make and publish rules for the proper operation and
management of the free public library and facilities under its jurisdiction,
including rules pertaining to the provision of library services
to individuals, corporations, or institutions that are not
inhabitants of the county;
(I) Establish and maintain a museum in connection with and
as an adjunct to the free public library under its jurisdiction;
(J) By the adoption of a resolution, accept any bequest,
gift, or endowment upon the conditions connected with
bequest, gift, or endowment ; provided no. No such bequest, gift, or
endowment shall be accepted by
the board if
thereof remove any portion of the free public library under
jurisdiction from the control of
the board or if
conditions, in any manner, limit the free use of
the library or
of it by the residents of the counties in which
library is located ;.
(K) At the end of any fiscal year, by a two-thirds vote of
its full membership, set aside any unencumbered surplus remaining
in the general fund of the
free public library under its jurisdiction for any
purpose, including creating or increasing a special building and
repair fund, or for operating the library or acquiring equipment
(L) Procure and pay all or part of the cost of group term life,
hospitalization, surgical, major medical, disability benefit,
dental care, eye care, hearing aids, or prescription drug
or coverage, or a combination of any of
those types of
insurance or coverage, whether issued by an insurance company or
a health insuring corporation
duly licensed by the state, covering its employees, and, in the case of
group term life,
hospitalization, surgical, major medical, dental care, eye care, hearing aids,
or prescription drug insurance
or coverage, also covering the dependents and
its employees, and, in the case of disability
benefits, also covering
the spouses of
to life insurance, coverage for any employee shall not exceed the
greater of the sum of ten thousand dollars or the annual salary
of the employee, exclusive of any double indemnity clause that is
a part of the policy.
(M) Pay reasonable dues and expenses for the free public library and library
trustees in library associations.
Any instrument by which real property is acquired pursuant to this section
shall identify the agency of the state that has the use and benefit of the
real property as specified in section 5301.012 of the Revised Code.
Sec. 3375.41. When a board of library trustees appointed
section 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,
or 3375.30 of the Revised Code determines to construct,
demolish, alter, repair, or reconstruct a library or make any
improvements or repairs, the cost of which will exceed
thousand dollars, except in cases of urgent necessity or for the
security and protection of library property, it shall proceed as
(A) The board shall advertise for a period of four weeks
for sealed bids in some newspaper of general circulation in the district,
and, if there are two such
newspapers, the board shall advertise in
both of them. If no newspaper has a general circulation in the
district, the board shall
advertise by posting such
post the advertisement
in three public places
in the district.
The advertisement shall be
entered in full by the clerk on the record of proceedings of the
(B) The sealed bids shall be filed with the clerk by
twelve noon of the last day stated in the advertisement.
(C) The sealed bids shall be opened at the next meeting of the
board, shall be publicly read by the clerk, and shall be entered
in full on the records of the board; provided
, that the board
by resolution, may provide for the public opening and reading of
bids by the clerk, immediately after the time for
bids has expired, at the usual place of meeting of the board, and
for the tabulation of
the bids and a report of
to the board at its next meeting.
(D) Each sealed bid shall contain the name of every person
in it and shall meet the requirements of section
153.54 of the Revised Code.
(E) When both labor and materials are embraced in the work
bid for, the board may require that each be separately stated in
the sealed bid, with
thereof, or may require that bids be
(F) None but the lowest responsible bid shall be accepted.
The board may reject all the bids or accept any bid for both
labor and material for
the improvement or repair which is the
lowest in the aggregate.
(G) The contract shall be between the board and the
bidders. The board shall pay the contract price for the work in
cash at the times and in the amounts as provided by sections
153.12, 153.13, and 153.14 of the Revised Code.
(H) When two or more bids are equal, in whole or in part,
and are lower than any others, either may be accepted, but in no
case shall the work be divided between
(I) When there is reason to believe there is collusion or
combination among the bidders, the bids of those concerned in
the collusion or combination shall be rejected.
Sec. 5705.281. (A)
Notwithstanding section 5705.28
Revised Code, the county budget
commission, by an affirmative
vote of a majority of the
commission, including an affirmative
vote by the county auditor,
requirement that the
authority of a
subdivision or other taxing unit
as provided under section
but shall require such a taxing
to the commission as may be required by the
under this chapter, including dividing the rates of each of
subdivision's or taxing unit's tax levies as provided under
5705.04 of the Revised Code.
(B)(1) Notwithstanding divisions (B)(1) and (D) of section 5705.28 of the Revised Code, in any county in which a single library receives all of the county library and local government support fund or receives all of that portion of the fund that is distributed to libraries, the county budget commission, by an affirmative vote of a majority of the commission, including an affirmative vote by the county auditor, may waive any or all of the following requirements:
(a) The requirement that the board of trustees of a school library district entitled to participate in any appropriation or revenue of a school district or to have a tax proposed by the board of education of a school district file with the board of education of the school district a tax budget, and the requirement that the board of education adopt the tax budget on behalf of the library district, as provided in division (B)(1) of section 5705.28 of the Revised Code;
(b) The requirement that the board of trustees of a public library desiring to participate in the distribution of the county library and local government support fund certify to the taxing authority its estimate of contemplated revenue and expenditures, and the requirement that the taxing authority include in its budget of receipts and budget of expenditures the full amounts specified or requested by the board of trustees, as provided in division (D) of section 5705.28 of the Revised Code.
(2) If a county budget commission waives the requirements described in division (B)(1)(a) or (b) of this section, the commission shall require the board of trustees of the school library district or the board of trustees of the public library desiring to participate in the distribution of the county library and local government support fund to provide to the commission any information the commission may require from the board in order for the commission to perform its duties under this chapter.
SECTION 2. That existing sections 9.833, 3375.40, 3375.41, and 5705.281 of the Revised Code are hereby repealed.