To amend sections 349.01, 349.03, 349.04, 349.05, and 349.06, to enact new section 349.16 and section 349.17, and to repeal section 349.16 of the Revised Code to modify the governance and authority of new community authorities.

Section 1. That sections 349.01, 349.03, 349.04, 349.05, and 349.06 be amended and new section 349.16 and section 349.17 of the Revised Code be enacted to read as follows:

Sec. 349.01.  As used in this chapter:

(A) "New community" means a community or an addition to an existing community planned pursuant to this chapter so that it includes facilities for the conduct of industrial, commercial, residential, cultural, educational, and recreational activities, and designed in accordance with planning concepts for the placement of utility, open space, and other supportive facilities.

(B) "New community development program" means a program for the development of a new community characterized by well-balanced and diversified land use patterns and which includes land acquisition and land development, the acquisition, construction, operation, and maintenance of community facilities, and the provision of services authorized in this chapter.

(C) "New community district" means the area of land described by the developer in the petition as set forth in division (A) of section 349.03 of the Revised Code for development as a new community and any lands added to the district by amendment of the resolution establishing the community authority.

(D) "New community authority" means a body corporate and politic in this state, established pursuant to section 349.03 of the Revised Code and governed by a board of trustees as provided in section 349.04 of the Revised Code.

(E) "Developer" means any person, organized for carrying out a new community development program who owns or controls, through leases of at least seventy-five years' duration, options, or contracts to purchase, the land within a new community district, or any municipal corporation, county, or port authority that owns the land within a new community district, or has the ability to acquire such land, either by voluntary acquisition or condemnation in order to eliminate slum, blighted, and deteriorated or deteriorating areas and to prevent the recurrence thereof.

(F) "Organizational board of commissioners" means, if the new community district is located in only one county, the board of county commissioners of such county; if located in more than one county, a board consisting of the members of the board of county commissioners of each of the counties in which the district is located, provided that action of such board shall require a majority vote of the members of each separate board of county commissioners; or, if more than half of the new community district is located within the boundaries of the most populous municipal corporation of a county, the legislative authority of the municipal corporation.

(G) "Land acquisition" means the acquisition of real property and interests in real property as part of a new community development program.

(H) "Land development" means the process of clearing and grading land, making, installing, or constructing water distribution systems, sewers, sewage collection systems, steam, gas, and electric lines, roads, streets, curbs, gutters, sidewalks, storm drainage facilities, and other installations or work, whether within or without the new community district, and the construction of community facilities.

(I) "Community facilities" means all real property, buildings, structures, or other facilities, including related fixtures, equipment, and furnishings, to be owned, operated, financed, constructed, and maintained under this chapter, including public, community, village, neighborhood, or town buildings, centers and plazas, auditoriums, day-care centers, recreation halls, educational facilities, hospital facilities as defined in section 140.01 of the Revised Code, recreational facilities, natural resource facilities, including parks and other open space land, lakes and streams, cultural facilities, community streets, pathway and bikeway systems, pedestrian underpasses and overpasses, lighting facilities, design amenities, or other community facilities, and buildings needed in connection with water supply or sewage disposal installations or steam, gas, or electric lines or installation. "Community facilities" does not include any project for which the geographic area primarily benefited extends beyond the new community district.

(J) "Cost" as applied to a new community development program means all costs related to land acquisition and land development, the acquisition, construction, maintenance, and operation of community facilities and offices of the community authority, and of providing furnishings and equipment therefor, financing charges including interest prior to and during construction and for the duration of the new community development program, planning expenses, engineering expenses, administrative expenses including working capital, and all other expenses necessary and incident to the carrying forward of the new community development program.

(K) "Income source" means any and all sources of income to the community authority, including community development charges of which the new community authority is the beneficiary as provided in section 349.07 of the Revised Code, rentals, user fees and other charges received by the new community authority, any gift or grant received, any moneys received from any funds invested by or on behalf of the new community authority, and proceeds from the sale or lease of land and community facilities.

(L) "Community development charge" means a dollar amount which shall be determined on the basis of the assessed valuation of real property or interests in real property in a new community district sold, leased, or otherwise conveyed by the developer or the new community authority, the income of the residents of such property subject to such charge under section 349.07 of the Revised Code, if such property is devoted to residential uses or to the profits of any business, a uniform fee on each parcel of such real property originally sold, leased, or otherwise conveyed by the developer or new community authority, or any combination of the foregoing bases.

(M) "Proximate city" means any city that, as of the date of filing of the petition under section 349.03 of the Revised Code, is the most populous city of the county in which the proposed new community district is located, is the most populous city of an adjoining county if any portion of such city is within five miles of any part of the boundaries of such district, or exercises extraterritorial subdivision authority under section 711.09 of the Revised Code with respect to any part of such district.

(N) "Initial board of trustees" means the board of trustees of a new community authority composed of members appointed under division (A) of section 349.04 of the Revised Code for the sole purpose of arranging for the election of citizen members under division (B) of that section.

Sec. 349.03.  (A) Proceedings for the organization of a new community authority shall be initiated by a petition filed by the developer in the office of the clerk of the board of county commissioners of one of the counties in which all or part of the proposed new community district is located. Such petition shall be signed by the developer and may be signed by each township or municipal corporation having territory located in, or within five thousand feet of, the district, including such a township or municipal corporation in an adjoining county, and each proximate city. The legislative authorities authority of each such proximate city subdivision, or a duly authorized officer thereof, shall act in behalf of such city the subdivision. Such

The petition shall contain all of the following:

(1) The name of the proposed new community authority;

(2) The address where the principal office of the authority will be located or the manner in which the location will be selected;

(3) A map and a full and accurate description of the boundaries of the new community district together with a description of the properties within such boundaries, if any, which will not be included in the new community district. Unless the district is wholly contained within municipalities, the total acreage included in such district shall not be less than one thousand acres, all of which acreage shall be owned by, or under the control through leases of at least seventy-five years duration, options, or contracts to purchase, of the developer, if the developer is a private entity. Such acreage shall be a blighted area as defined in section 1.08 of the Revised Code, shall be contiguous or within five thousand feet of the largest contiguous area of the district, and shall be developable as one functionally interrelated community.

(4) A statement setting forth the zoning regulations proposed for zoning the area within the boundaries of the new community district for comprehensive development as a new community, and, if the area has been zoned for such development, a certified copy of the applicable zoning regulations therefor;

(5) A current plan indicating the projected total population of the new community district, the proposed development program for the new community district, the land acquisition and land development activities, community facilities, and services which it is proposed the new community authority will undertake under such program, and the proposed method of financing such activities and services and the projected total population of the new community;, including the total principal amount of bonds projected to be issued under this chapter for community facilities. The plan's indication of community facilities shall be itemized according to each kind of facility planned, as enumerated under division (I) of section 349.01 of the Revised Code, the projected cost of each such facility, and the portion of the projected cost of each facility to be financed with bonds issued under this chapter.

(6) A statement that all proposed community facilities primarily benefit the new community district only;

(7) A suggested number of members, consistent with section 349.04 of the Revised Code, for the board of trustees;

(7)(8) A preliminary economic feasibility analysis, including the area development pattern and demand, location and proposed new community district size, present and future socio-economic conditions, public services provision, financial plan, and the developer's management capability;

(8)(9) A statement that the development will comply with all applicable environmental laws and regulations.

Upon the filing of such petition, the organizational board of commissioners shall determine whether such petition complies with the requirements of this section as to form and substance. The board in subsequent proceedings may at any time permit the petition to be amended in form and substance to conform to the facts by correcting any errors in the description of the proposed new community district or in any other particular, subject to division (C) of this section.

Upon the determination of the organizational board of commissioners that a sufficient petition has been filed in accordance with this section, the board shall fix the time and place of a hearing on the petition for the establishment of the proposed new community authority. Such hearing shall be held not less than ninety-five nor more than one hundred fifteen days after the petition filing date, except that if the petition has been signed by all proximate cities local governments referred to in division (A) of this section, such hearing shall be held not less than thirty nor more than forty-five days after the petition filing date. The clerk of the board of county commissioners with which the petition was filed shall give notice thereof by publication once each week for three consecutive weeks in a newspaper of general circulation in any county of which a portion is within the proposed new community district. Such clerk shall also give written notice of the date, time, and place of the hearing and furnish a certified copy of the petition to the clerk of the legislative authority of each proximate city which has not signed such petition. In the event that the legislative authority of a proximate city which did not sign the petition does not approve by ordinance, resolution, or motion the establishment of the proposed new community authority and does not deliver such ordinance, resolution, or motion to the clerk of the board of county commissioners with which the petition was filed within ninety days following the date of the first publication of the notice of the public hearing, the organizational board of commissioners shall cancel such public hearing and terminate the proceedings for the establishment of the new community authority.

Upon the hearing, if the organizational board of commissioners determines by resolution that the proposed new community district will be conducive to the public health, safety, convenience, and welfare, and is intended to result in the development of a new community, the board shall by its resolution, entered of record in its journal and the journal of the board of county commissioners with which the petition was filed, declare the new community authority to be organized and a body politic and corporate with the corporate name designated in the resolution, and define the boundary of the new community district. In addition, the resolution shall provide the method of selecting the board of trustees of the new community authority and fix the surety for their bonds in accordance with section 349.04 of the Revised Code.

If the organizational board of commissioners finds that the establishment of the district will not be conducive to the public health, safety, convenience, or welfare, or is not intended to result in the development of a new community, it shall reject the petition thereby terminating the proceedings for the establishment of the new community authority.

(B) At any time after the creation of a new community authority, the developer may file an application with the clerk of the board of county commissioners of the county in which the original petition was filed, setting forth a general description of territory it desires to add to or to delete from such district, that such change will be conducive to the public health, safety, convenience, and welfare, and will be consistent with the development of a new community and will not jeopardize the plan of the new community. If the developer is not a municipal corporation or county, all of such an addition to such a district shall be owned by, or under the control through leases of at least seventy-five years duration, options, or contracts to purchase, of the developer. Upon the filing of the application, the organizational board of commissioners shall follow the same procedure as required by this section in relation to the petition for the establishment of the proposed new community.

(C) If all or any part of the new community district is annexed to one or more existing municipal corporations, their legislative authorities may appoint persons to replace any appointed citizen member of the board of trustees. The number of such trustees to be replaced by the municipal corporation shall be the number, rounded to the lowest integer, bearing the proportionate relationship to the number of existing appointed citizen members as the acreage of the new community district within such municipal corporation bears to the total acreage of the new community district. If any such municipal corporation chooses to replace an appointed citizen member, it shall do so by ordinance, the term of the trustee being replaced shall terminate thirty days from the date of passage of such ordinance, and the trustee to be replaced shall be determined by lot. Each newly appointed member shall assume the term of his predecessor. After the organizational board of commissioners declares the new community authority to be organized under this section, the kinds of community facilities that may be acquired or constructed by or for the new community authority shall not differ from the kinds itemized in the plan, and the cost of the community facilities and the portion of that cost financed with bonds issued under this chapter shall not exceed the cost or portion indicated in the plan, unless the change or increase is approved by a majority of the board of trustees of the authority as constituted after the election of citizen members under division (B) of section 349.04 of the Revised Code. If the authority increases the cost of a community facility or the portion thereof to be financed with bonds issued under this chapter, the principal amount of bonds that may be issued under this chapter for community facilities is increased by not more than that amount. If the authority decreases the cost of a community facility or the portion thereof to be financed with bonds issued under this chapter, the principal amount of bonds that may be issued under this chapter for community facilities is decreased by not less than that amount.

Sec. 349.04.  (A) The following method of provided in this section for selecting a board of trustees is deemed to be a compelling state interest. Within ten days after the new community authority has been established, as provided in section 349.03 of the Revised Code, an initial board of trustees shall be appointed as follows;: the organizational board of commissioners shall appoint by resolution at least three, but not more than six, citizen members of the board of trustees to represent the interests of present and future residents of the new community district and one member to serve as a representative of local government, and the developer shall appoint a number of members equal to the number of citizen members to serve as representatives of the developer. Members shall serve two-year overlapping terms, with two of each of the initial citizen and developer members appointed to serve initial one year terms. The organizational board of commissioners shall by further resolution adopted within one year of such resolution establishing such initial board of trustees adopt a method for selection of successor members thereof which determines the projected total population of the projected new community and meets the following criteria:

(A) The appointed citizen members shall be replaced by elected citizen members according to a schedule established by the organizational board of commissioners calculated to achieve one such replacement each time the new community district gains a proportion, having a numerator of one and a denominator of twice the number of citizen members, of its projected total population until such time as all of the appointed citizen members are replaced.

(B) Representatives of the developer shall be replaced by elected citizen members according to a schedule established by the organizational board of commissioners calculated to achieve one such replacement each time the new community district gains a proportion, having a numerator of one and a denominator equal to the number of developer members, of its projected total population until such time as all of the developer's representatives are replaced.

(C) The representative of local government shall be replaced by an elected citizen member at the time the new community district gains three-quarters of its projected total population.

Elected citizen members of the board of trustees shall be elected by a majority of the residents of the new community district voting at elections held on the first Tuesday after the first Monday in December of each year. Each one resident of each county in which the district is to be located to represent that county; the legislative authority of each proximate city shall appoint one resident of the city to represent the city; if any part of the district is to be located within the limits of a municipal corporation that is not a proximate city, the legislative authority of the municipal corporation shall appoint one resident of the municipal corporation to represent the municipal corporation; if any part of the district is to be located inside or within five thousand feet of the unincorporated territory of a township, or inside or within five thousand feet of the boundaries of a township whose boundaries have not been conformed with the limits of the municipal corporation under section 503.07 of the Revised Code, the board of township trustees of each such township shall appoint one resident of the township to represent the township; and the developer shall appoint one member to represent the developer. All persons appointed under this division are subject to the qualifications and conditions prescribed in division (D) of this section.

(B) Within thirty days after the new community authority has been established, the initial board of trustees shall convene a meeting for the sole purpose of arranging for the initial election of citizen members of the board of trustees to serve as representatives of the present and future residents of the district. The arrangements shall include the calling for nominations of persons whose names are to appear on the ballot, the printing of ballots, the time and place of the election, and the publication or distribution of information regarding such matters to all persons who are qualified to be a candidate or to vote at the election, and other matters as may be necessary to conduct the election. The requirement to publish or distribute such information may be satisfied by the publication of such information at least once per week for three consecutive weeks in a newspaper of general circulation, as defined in section 5721.01 of the Revised Code, in the county in which the majority of the territory of the new community district is located . If a newspaper of general circulation is not published in that county, publication shall be in a newspaper of general circulation in an adjoining county. The developer shall pay all expenses of conducting the election. The initial board of trustees may elect from among the appointed members a chairperson and such other officers, take such actions, and hold successive meetings, as are necessary to arrange for the election of citizen members, but no other business of the new community authority shall be conducted. The terms of officers so appointed shall continue only until the elected citizen members enter upon their official duties on the board.

The number of citizen members of the board of trustees to be elected shall at all times be equal to at least one more than the total number of members appointed to the board under division (A) of this section so that the number of citizen members constitutes the majority of the entire number of board members. The number of members on the board of trustees may be reduced as citizen members are elected to replace appointed members under division (C) of this section, as may be provided in the resolution creating the authority.

The initial election of citizen members shall be held at a location open to the public and within the boundaries of the district or, if no such location exists, at a location open to the public within a township or municipal corporation within which the district is located. The election shall be conducted within ninety days after the first meeting of the initial board of trustees. To be qualified to be a citizen member elected at the initial election under this division, a candidate must satisfy the qualifications of citizen members prescribed by division (D) of this section. To be qualified to vote at the election, a person must satisfy the qualifications of citizen members prescribed by that division. To cast a vote, a person must be present at the location of the election. The seats on the board shall be filled by the number of candidates, equal to the number of such seats, receiving the greatest number of votes cast at the election.

Any business conducted by the initial board of trustees other than the appointment of officers or the arrangement for the election of citizen members, as provided by this division, is void and without effect.

Appointed members shall serve a term of two years, and a member may be reappointed, except that the terms of appointed members terminate as provided in division (C) of this section. The terms of initially elected citizen members shall be two years. The terms of the appointed members and of the initially elected citizen members shall be measured from the first day of January that follows the date of the election of the initially elected citizen members.

The organizational board of commissioners may remove an appointed member of the board of trustees for misfeasance, nonfeasance, or malfeasance in office. The developer may remove the developer's appointed member representative on the board without a showing of cause.

(C) The appointed members representing the developer and the local governments shall be replaced by elected citizen members at the time the population of the new community district equals sixty per cent of the district's projected population. The seats of the members being replaced shall be filled by the number of citizen member candidates, equal to the number of such seats, receiving the greatest number of votes. The election shall be held on the first Tuesday after the first Monday in December of each year beginning with the year in which the population of the district equals sixty per cent of the district's projected population.

(D) Each appointed member shall be a qualified elector as defined in section 3501.01 of the Revised Code. Each citizen member except an appointed citizen member shall be a qualified elector who resides and owns the fee of land situated in or within five thousand feet of the new community district. Citizen members shall not be employees of or have financial interest in the developer. If An appointed member or elected citizen member of the board, except the member appointed by the developer under this section, may not be an employee of the developer, may not have a financial interest in the developer, and may not have sold, transferred, or leased to the developer real property located within the district. If, while serving as a member of the board, a person, other than the member appointed by the developer, sells, transfers, or leases to the developer real property located in the district or added to the district, the person's term as such a member shall terminate immediately upon the sale or transfer or commencement of the lease, and the vacancy so created shall be filled as provided in division (E) of this section. Before assuming duties on the board, each member of the board, except the developer's representative, shall execute an affidavit declaring those facts. A new affidavit shall be executed each time a member is appointed or elected. The affidavits shall be kept on file at the board's offices and shall be made available during normal business hours for inspection by any resident of the district.

(E) The terms of members of the board of trustees elected under division (C) of this section shall be two years.

If a vacancy occurs in the office of a member other than a member appointed by the developer, the organizational board of commissioners trustees may appoint a successor member for the remainder of the unexpired term. Any appointed member of the board of trustees may at any time be removed by the organizational board of commissioners for misfeasance, nonfeasance, or malfeasance in office. Members appointed by the developer may also at any time be removed by the developer without a showing of cause.

(F) Each member of the board of trustees, including a member of the initial board of trustees, before entering upon his official duties, shall take and subscribe to an oath before an officer authorized to administer oaths in Ohio that he the member will honestly and faithfully perform the duties of his the member's office. Such oath shall be filed in the office of the clerk of the board of county commissioners in which the petition was filed. Upon taking the oath Once the initially elected citizen members have been elected under division (C) of this section, and after each election thereafter, the board of trustees shall elect one of its number as chairman chairperson and another as vice-chairman vice-chairperson, and shall appoint suitable persons as secretary and treasurer who need not be members of the board. The treasurer shall be the fiscal officer of the authority. The board shall adopt by-laws governing the administration of the affairs of the new community authority. Each member of the board shall post a bond for the faithful performance of his official duties and give surety therefor in such amount, but not less than ten thousand dollars, as the resolution creating such board shall prescribe.

(G) All of the powers of the new community authority shall be exercised by its board of trustees, but without relief of such responsibility, such powers may be delegated to committees of the board or its officers and employees in accordance with its by-laws. A majority of the board, including at least one more elected citizen member than noncitizen members, shall constitute a quorum, and a concurrence of a majority of a quorum in any matter within the board's duties is sufficient for its determination, provided a quorum is present when such concurrence is had and a majority of those members constituting such quorum are trustees not appointed by the developer. All trustees shall be empowered to vote on all matters within the authority of the board of trustees, and no vote by a member appointed by the developer shall be construed to give rise to civil or criminal liability for conflict of interest on the part of public officials.

Sec. 349.05.  A new community authority established pursuant to this chapter is a body corporate and politic, and shall have the powers specifically granted by this chapter. This chapter does not limit or restrict the power and authority of cities, counties, and townships. The new community authority shall have no power or authority over zoning or subdivision regulation, provision of fire or police protection, or, unless such services cannot be obtained from other existing political subdivisions, water supply or sewage treatment and disposal.

The exercise of police power granted to the authority by this chapter does not invalidate the exercise of police power by any municipal corporation and the exercise of police power by a municipal corporation shall prevail in the case of a conflict with powers exercised by the authority. The grant of power to the authority under divisions (N) and (O) of section 349.06 of the Revised Code shall not remove municipal, regional, or county planning commissions and agencies from jurisdiction within the district, nor shall such powers invalidate municipal ordinances and resolutions or other regulations of such planning commission and agencies.

A new community authority is a public body for the purposes of section 121.22 of the Revised Code.

Sec. 349.06.  In furtherance of the purposes of this chapter, a new community authority may do any of the following, subject to limitation by other sections of this chapter:

(A) Acquire by purchase, lease, gift, or otherwise, on such terms and in such manner as it considers proper, real and personal property or any estate, interest, or right therein, within or without the new community district;

(B) Improve, maintain, sell, lease or otherwise dispose of real and personal property and community facilities, on such terms and in such manner as it considers proper;

(C) Landscape and otherwise aesthetically improve areas within the new community district, including but not limited to maintenance, landscaping and other community improvement services;

(D) Provide, engage in, or otherwise sponsor recreational, educational, health, social, vocational, cultural, beautification, and amusement activities and related services primarily for residents of the district;

(E) Fix, alter, impose, collect and receive service and user fees, rentals, and other charges to cover all costs in carrying out the new community development program;

(F) Adopt, modify, and enforce reasonable rules and regulations governing the use of community facilities;

(G) Employ Subject to section 349.17 of the Revised Code, employ such managers, administrative officers, agents, engineers, architects, attorneys, contractors, sub-contractors, and employees as may be appropriate in the exercise of the rights, powers and duties conferred upon it, prescribe the duties and compensation for such persons, require bonds to be given by any such persons and by officers of the authority for the faithful performance of their duties, and fix the amount and surety therefor;, and pay the same;

(H) Sue and be sued in its corporate name;

(I) Make Subject to sections 349.16 and 349.17 of the Revised Code, make and enter into all contracts and agreements and execute all instruments relating to a new community development program, including contracts with the developer and other persons or entities related thereto for land acquisition and land development; acquisition, construction, and maintenance of community facilities; the provision of community services and management and coordinating services; with federal, state, interstate, regional, and local agencies and political subdivisions or combinations thereof in connection with the financing of such program, and with any municipal corporation or other public body, or combination thereof, providing for the acquisition, construction, improvement, extension, maintenance or operation of joint lands or facilities or for the provision of any services or activities relating to and in furtherance of a new community development program, including the creation of or participation in a regional transit authority created pursuant to the Revised Code;

(J) Apply for and accept grants, loans or commitments of guarantee or insurance including any guarantees of community authority bonds and notes, from the United States, the state, or other public body or other sources, and provide any consideration which may be required in order to obtain such grants, loans or contracts of guarantee or insurance. Such loans or contracts of guarantee or insurance may be evidenced by the issuance of bonds as provided in section 349.08 of the Revised Code;

(K) Procure insurance against loss to it by reason of damage to its properties resulting from fire, theft, accident, or other casualties, or by reason of its liability for any damages to persons or property occurring in the construction or operation of facilities or areas under its jurisdiction or the conduct of its activities;

(L) Maintain such funds or reserves as it considers necessary for the efficient performance of its duties;

(M) Enter agreements with the boards of education of any school districts in which all or part of the new community district lies, whereby the community authority may acquire property for, may construct and equip, and may sell, lease, dedicate, with or without consideration, or otherwise transfer lands, schools, classrooms, or other facilities, whether or not within the new community district, from the authority to the school district for school and related purposes;

(N) Prepare plans for acquisition and development of lands and facilities, and enter into agreements with city, county, or regional planning commissions to perform or obtain all or any part of planning services for the new community district;

(O) Engage in planning for the new community district, which may be predominantly residential and open space, and prepare or approve a development plan or plans therefor, and engage in land acquisitions and land development in accordance with such plan or plans;

(P) Issue new community authority bonds and notes and community authority refunding bonds, payable solely from the income source provided in section 349.08 of the Revised Code, unless the bonds are refunded by refunding bonds, for the purpose of paying any part of the cost as applied to the new community development program or parts thereof;

(Q) Enforce any covenants running with the land of which the new community authority is the beneficiary, including but not limited to the collection by any and all appropriate means of any community improvement charge deemed to be a covenant running with the land and enforceable by the new community authority pursuant to section 349.07 of the Revised Code; and to waive, reduce, or terminate any community development charge of which it is the beneficiary to the extent not needed for any of the purposes provided in section 349.07 of the Revised Code, the procedure for which shall be provided in such covenants, and if new community authority bonds have been issued pledging any such community improvement charge, to the extent not prohibited in the resolution authorizing the issuance of such new community authority bonds or the trust agreement or indenture of mortgage securing the bonds;

(R) Appropriate for its use, under sections 163.01 to 163.22 of the Revised Code, any land, easement, rights, rights-of-way, franchises, or other property in the new community district required by the authority for community facilities. The authority may not so appropriate any land, easement, rights, rights-of-way, franchises, or other property that is not included in the new community district.

Sec. 349.16.  (A) Anything to be purchased, leased, leased with an option or agreement to purchase, or constructed, including any product, structure, construction, reconstruction, improvement, maintenance, repair, or service by or on behalf of a new community authority at a cost of more than ten thousand dollars shall be obtained through competitive bidding, except as follows:

(1) The board of trustees of the authority, by vote of two-thirds of its membership, determines that a real and present emergency exists because of actual physical damage to community facilities and that the estimated cost of repair or reconstruction is less than twenty thousand dollars.

(2) The service to be purchased is the service of an accountant, architect, appraiser, attorney at law, consultant, professional engineer, or surveyor.

(3) The purchase is of supplies or a replacement or supplemental part for tangible personal property of the authority and the only source of supply for the supplies or part is a single supplier.

(4) The purchase is of services related to information technology, such as programming services, that are proprietary or limited to a single source.

(B) The board of trustees of a new community authority shall let bids required to be bid competitively in conformance with the procedures prescribed by sections 307.87 to 307.91 of the Revised Code, except as follows:

(1) References in those sections to the board of county commissioners or the contracting authority shall be construed to mean the board of trustees of the new community authority.

(2) "Ten thousand dollars" shall be substituted for any reference in those sections to twenty-five thousand dollars.

(3) References in those sections to a contracting authority's internet site or address do not apply unless the new community authority elects for those references to apply.

Sec. 349.17.  (A) A new community authority shall not contract with the developer organized for the purpose of carrying out the authority's new community development program, or a member of an affiliated group including that developer, for the performance of any land development or for the construction or improvement of community facilities unless the developer or affiliated group member is the successful bidder for the contract let competitively under section 349.16 of the Revised Code.

(B) Any payments by a new community authority to a developer, or to a member of an affiliated group including the developer, for administrative or professional services rendered to or for the authority by the developer or affiliated group member shall be paid only on the basis of an hourly rate approved by the authority as being reasonable within industry standards for the services performed. The developer or affiliated group member shall submit to the authority for its approval a budget, for each calendar year, of the administrative or professional services to be provided and shall provide to the authority, at least once per year at the time specified by the authority, the hourly records upon which such compensation is to be determined.

The total of all payments during any calendar year from a new community authority to a developer and to members of any affiliated group including the developer for administrative or professional services shall not exceed three per cent of the first five million dollars in cost of the new community development program, two per cent of the next five million in cost of the program, and one per cent of such cost in excess of ten million dollars in cost. The limit on such payments does not prohibit the developer or affiliated group member from incurring costs or investing money in excess of the limit to provide administrative or professional services to the new community authority, but the authority shall not pay any amount in excess of the limit.

(C) As used in this section, "affiliated group" means two or more persons related in such a way that one person owns or controls the business operations of another member of the group. In the case of corporations with stock, one corporation owns or controls another if it owns more than fifty per cent of the other corporation's common stock with voting rights. The attribution rules of section 318 of the Internal Revenue Code, 26 U.S.C. 318, apply for purposes of determining whether the ownership requirements are met.

Section 2.  That existing sections 349.01, 349.03, 349.04, 349.05, and 349.06 and section 349.16 of the Revised Code are hereby repealed.