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Sub. H. B. No. 313 As Reported by the House Local Government and Public Administration CommitteeAs Reported by the House Local Government and Public Administration Committee
128th General Assembly | Regular Session | 2009-2010 |
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Representatives Ujvagi, Winburn
Cosponsors:
Representatives Domenick, Patten, Murray, Hagan, Driehaus, Williams, B., Foley, Skindell, Williams, S., Letson, Stewart, Lehner, Yuko
A BILL
To amend sections 1.62, 135.35, 323.78, 1724.02,
1724.03, 1724.04, 1724.05, and 5722.22 and to
enact section 321.343 of the Revised Code to
authorize a county with a population greater than
100,000, or a population between 78,000 and
81,000, to organize a county land reutilization
corporation, to authorize a county treasurer of a
county with such a corporation to utilize the
alternative redemption period in actions to
foreclose abandoned lands, to immunize a county
land reutilization corporation from liability for
breach of a common law duty in connection with a
parcel of land, and to make other changes
regarding county land reutilization corporations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1.62, 135.35, 323.78, 1724.02,
1724.03, 1724.04, 1724.05, and 5722.22 be amended and section
321.343 of the Revised Code be enacted to read as follows:
Sec. 1.62. As used in the Revised Code, unless the context
of a section does not permit the following or unless expressly
provided otherwise in a section:
(A) References to particular county officers, boards,
commissions, and authorities mean, in the case of a county that
has adopted a charter under Article X, Ohio Constitution, the
officer, board, commission, or authority of that county designated
by or pursuant to the charter to exercise the same powers or
perform the same acts, duties, or functions that are to be
exercised or performed under the applicable section of the Revised
Code by officers, boards, commissions, or authorities of counties
that have not adopted a charter. If any section of the Revised
Code requires county representation on a board, commission, or
authority by more than one county officer, and the charter vests
the powers, duties, or functions of each county officer
representing the county on the board, commission, or authority in
fewer officers or in only a single county officer, the county
officers or officer shall succeed to the representation of only
one of the county officers on the board, commission, or authority.
If any vacancy in the representation of the county on the board,
commission, or authority remains, the taxing authority of the
county shall adopt a resolution to fill the vacancy.
(B) References to resolutions mean, in the case of a county
that has adopted a charter under Article X, Ohio Constitution, the
appropriate form of legislation permitted by or pursuant to the
charter.
Sec. 135.35. (A) The investing authority shall deposit or
invest any part or all of the county's inactive moneys and shall
invest all of the money in the county public library fund when
required by section 135.352 of the Revised Code. The following
classifications of securities and obligations are eligible for
such deposit or investment:
(1) United States treasury bills, notes, bonds, or any other
obligation or security issued by the United States treasury, any
other obligation guaranteed as to principal or interest by the
United States, or any book entry, zero-coupon United States
treasury security that is a direct obligation of the United
States.
Nothing in the classification of eligible securities and
obligations set forth in divisions (A)(2) to (11) of this section
shall be construed to authorize any investment in stripped
principal or interest obligations of such eligible securities and
obligations.
(2) Bonds, notes, debentures, or any other obligations or
securities issued by any federal government agency or
instrumentality, including but not limited to, the federal
national mortgage association, federal home loan bank, federal
farm credit bank, federal home loan mortgage corporation,
government national mortgage association, and student loan
marketing association. All federal agency securities shall be
direct issuances of federal government agencies or
instrumentalities.
(3) Time certificates of deposit or savings or deposit
accounts, including, but not limited to, passbook accounts, in any
eligible institution mentioned in section 135.32 of the Revised
Code;
(4) Bonds and other obligations of this state or the
political subdivisions of this state, provided that such political
subdivisions are located wholly or partly within the same county
as the investing authority;
(5) No-load money market mutual funds consisting exclusively
of obligations described in division (A)(1) or (2) of this section
and repurchase agreements secured by such obligations, provided
that investments in securities described in this division are made
only through eligible institutions mentioned in section 135.32 of
the Revised Code;
(6) The Ohio subdivision's fund as provided in section 135.45
of the Revised Code;
(7) Securities lending agreements with any eligible
institution mentioned in section 135.32 of the Revised Code that
is a member of the federal reserve system or federal home loan
bank or with any recognized United States government securities
dealer meeting the description in division (J)(1) of this section,
under the terms of which agreements the investing authority lends
securities and the eligible institution or dealer agrees to
simultaneously exchange similar securities or cash, equal value
for equal value.
Securities and cash received as collateral for a securities
lending agreement are not inactive moneys of the county or moneys
of a county public library fund. The investment of cash collateral
received pursuant to a securities lending agreement may be
invested only in instruments specified by the investing authority
in the written investment policy described in division (K) of this
section.
(8) Up to twenty-five per cent of the county's total average
portfolio in either of the following investments:
(a) Commercial paper notes issued by an entity that is
defined in division (D) of section 1705.01 of the Revised Code and
that has assets exceeding five hundred million dollars, to which
notes all of the following apply:
(i) The notes are rated at the time of purchase in the
highest classification established by at least two nationally
recognized standard rating services.
(ii) The aggregate value of the notes does not exceed ten per
cent of the aggregate value of the outstanding commercial paper of
the issuing corporation.
(iii) The notes mature not later than two hundred seventy
days after purchase.
(b) Bankers acceptances of banks that are insured by the
federal deposit insurance corporation and to which both of the
following apply:
(i) The obligations are eligible for purchase by the federal
reserve system.
(ii) The obligations mature not later than one hundred eighty
days after purchase.
No investment shall be made pursuant to division (A)(8) of
this section unless the investing authority has completed
additional training for making the investments authorized by
division (A)(8) of this section. The type and amount of additional
training shall be approved by the auditor of state and may be
conducted by or provided under the supervision of the auditor of
state.
(9) Up to fifteen per cent of the county's total average
portfolio in notes issued by corporations that are incorporated
under the laws of the United States and that are operating within
the United States, or by depository institutions that are doing
business under authority granted by the United States or any state
and that are operating within the United States, provided both of
the following apply:
(a) The notes are rated in the second highest or higher
category by at least two nationally recognized standard rating
services at the time of purchase.
(b) The notes mature not later than two years after purchase.
(10) No-load money market mutual funds rated in the highest
category at the time of purchase by at least one nationally
recognized standard rating service and consisting exclusively of
obligations described in division (A)(1), (2), or (6) of section
135.143 of the Revised Code;
(11) Debt interests rated at the time of purchase in the
three highest categories by two nationally recognized standard
rating services and issued by foreign nations diplomatically
recognized by the United States government. All interest and
principal shall be denominated and payable in United States funds.
The investments made under division (A)(11) of this section shall
not exceed in the aggregate one per cent of a county's total
average portfolio.
The investing authority shall invest under division (A)(11)
of this section in a debt interest issued by a foreign nation only
if the debt interest is backed by the full faith and credit of
that foreign nation, there is no prior history of default, and the
debt interest matures not later than five years after purchase.
For purposes of division (A)(11) of this section, a debt interest
is rated in the three highest categories by two nationally
recognized standard rating services if either the debt interest
itself or the issuer of the debt interest is rated, or is
implicitly rated, at the time of purchase in the three highest
categories by two nationally recognized standard rating services.
(12) A current unpaid or delinquent tax line of credit
authorized under division (G) of section 135.341 of the Revised
Code, provided that all of the conditions for entering into such a
line of credit under that division are satisfied, or bonds and
other obligations of a county land reutilization corporation
organized under Chapter 1724. of the Revised Code, if the county
land reutilization corporation is located wholly or partly within
the same county as the investing authority.
(B) Nothing in the classifications of eligible obligations
and securities set forth in divisions (A)(1) to (11) of this
section shall be construed to authorize investment in a
derivative, and no investing authority shall invest any county
inactive moneys or any moneys in a county public library fund in a
derivative. For purposes of this division, "derivative" means a
financial instrument or contract or obligation whose value or
return is based upon or linked to another asset or index, or both,
separate from the financial instrument, contract, or obligation
itself. Any security, obligation, trust account, or other
instrument that is created from an issue of the United States
treasury or is created from an obligation of a federal agency or
instrumentality or is created from both is considered a derivative
instrument. An eligible investment described in this section with
a variable interest rate payment, based upon a single interest
payment or single index comprised of other eligible investments
provided for in division (A)(1) or (2) of this section, is not a
derivative, provided that such variable rate investment has a
maximum maturity of two years. A treasury inflation-protected
security shall not be considered a derivative, provided the
security matures not later than five years after purchase.
(C) Except as provided in division (D) of this section, any
investment made pursuant to this section must mature within five
years from the date of settlement, unless the investment is
matched to a specific obligation or debt of the county or to a
specific obligation or debt of a political subdivision of this
state located wholly or partly within the county, and the
investment is specifically approved by the investment advisory
committee.
(D) The investing authority may also enter into a written
repurchase agreement with any eligible institution mentioned in
section 135.32 of the Revised Code or any eligible securities
dealer pursuant to division (J) of this section, under the terms
of which agreement the investing authority purchases and the
eligible institution or dealer agrees unconditionally to
repurchase any of the securities listed in divisions (B)(1) to
(5), except letters of credit described in division (B)(2), of
section 135.18 of the Revised Code. The market value of securities
subject to an overnight written repurchase agreement must exceed
the principal value of the overnight written repurchase agreement
by at least two per cent. A written repurchase agreement must
exceed the principal value of the overnight written repurchase
agreement, by at least two per cent. A written repurchase
agreement shall not exceed thirty days, and the market value of
securities subject to a written repurchase agreement must exceed
the principal value of the written repurchase agreement by at
least two per cent and be marked to market daily. All securities
purchased pursuant to this division shall be delivered into the
custody of the investing authority or the qualified custodian of
the investing authority or an agent designated by the investing
authority. A written repurchase agreement with an eligible
securities dealer shall be transacted on a delivery versus payment
basis. The agreement shall contain the requirement that for each
transaction pursuant to the agreement the participating
institution shall provide all of the following information:
(1) The par value of the securities;
(2) The type, rate, and maturity date of the securities;
(3) A numerical identifier generally accepted in the
securities industry that designates the securities.
No investing authority shall enter into a written repurchase
agreement under the terms of which the investing authority agrees
to sell securities owned by the county to a purchaser and agrees
with that purchaser to unconditionally repurchase those
securities.
(E) No investing authority shall make an investment under
this section, unless the investing authority, at the time of
making the investment, reasonably expects that the investment can
be held until its maturity. The investing authority's written
investment policy shall specify the conditions under which an
investment may be redeemed or sold prior to maturity.
(F) No investing authority shall pay a county's inactive
moneys or moneys of a county public library fund into a fund
established by another subdivision, treasurer, governing board, or
investing authority, if that fund was established by the
subdivision, treasurer, governing board, or investing authority
for the purpose of investing or depositing the public moneys of
other subdivisions. This division does not apply to the payment of
public moneys into either of the following:
(1) The Ohio subdivision's fund pursuant to division (A)(6)
of this section;
(2) A fund created solely for the purpose of acquiring,
constructing, owning, leasing, or operating municipal utilities
pursuant to the authority provided under section 715.02 of the
Revised Code or Section 4 of Article XVIII, Ohio Constitution.
For purposes of division (F) of this section, "subdivision"
includes a county.
(G) The use of leverage, in which the county uses its current
investment assets as collateral for the purpose of purchasing
other assets, is prohibited. The issuance of taxable notes for the
purpose of arbitrage is prohibited. Contracting to sell securities
not owned by the county, for the purpose of purchasing such
securities on the speculation that bond prices will decline, is
prohibited.
(H) Any securities, certificates of deposit, deposit
accounts, or any other documents evidencing deposits or
investments made under authority of this section shall be issued
in the name of the county with the county treasurer or investing
authority as the designated payee. If any such deposits or
investments are registrable either as to principal or interest, or
both, they shall be registered in the name of the treasurer.
(I) The investing authority shall be responsible for the
safekeeping of all documents evidencing a deposit or investment
acquired under this section, including, but not limited to,
safekeeping receipts evidencing securities deposited with a
qualified trustee, as provided in section 135.37 of the Revised
Code, and documents confirming the purchase of securities under
any repurchase agreement under this section shall be deposited
with a qualified trustee, provided, however, that the qualified
trustee shall be required to report to the investing authority,
auditor of state, or an authorized outside auditor at any time
upon request as to the identity, market value, and location of the
document evidencing each security, and that if the participating
institution is a designated depository of the county for the
current period of designation, the securities that are the subject
of the repurchase agreement may be delivered to the treasurer or
held in trust by the participating institution on behalf of the
investing authority.
Upon the expiration of the term of office of an investing
authority or in the event of a vacancy in the office for any
reason, the officer or the officer's legal representative shall
transfer and deliver to the officer's successor all documents
mentioned in this division for which the officer has been
responsible for safekeeping. For all such documents transferred
and delivered, the officer shall be credited with, and the
officer's successor shall be charged with, the amount of moneys
evidenced by such documents.
(J)(1) All investments, except for investments in securities
described in divisions (A)(5) and, (6), and (12) of this section,
shall be made only through a member of the national association of
securities dealers, through a bank, savings bank, or savings and
loan association regulated by the superintendent of financial
institutions, or through an institution regulated by the
comptroller of the currency, federal deposit insurance
corporation, or board of governors of the federal reserve system.
(2) Payment for investments shall be made only upon the
delivery of securities representing such investments to the
treasurer, investing authority, or qualified trustee. If the
securities transferred are not represented by a certificate,
payment shall be made only upon receipt of confirmation of
transfer from the custodian by the treasurer, governing board, or
qualified trustee.
(K)(1) Except as otherwise provided in division (K)(2) of
this section, no investing authority shall make an investment or
deposit under this section, unless there is on file with the
auditor of state a written investment policy approved by the
investing authority. The policy shall require that all entities
conducting investment business with the investing authority shall
sign the investment policy of that investing authority. All
brokers, dealers, and financial institutions, described in
division (J)(1) of this section, initiating transactions with the
investing authority by giving advice or making investment
recommendations shall sign the investing authority's investment
policy thereby acknowledging their agreement to abide by the
policy's contents. All brokers, dealers, and financial
institutions, described in division (J)(1) of this section,
executing transactions initiated by the investing authority,
having read the policy's contents, shall sign the investment
policy thereby acknowledging their comprehension and receipt.
(2) If a written investment policy described in division
(K)(1) of this section is not filed on behalf of the county with
the auditor of state, the investing authority of that county shall
invest the county's inactive moneys and moneys of the county
public library fund only in time certificates of deposits or
savings or deposit accounts pursuant to division (A)(3) of this
section, no-load money market mutual funds pursuant to division
(A)(5) of this section, or the Ohio subdivision's fund pursuant to
division (A)(6) of this section.
(L)(1) The investing authority shall establish and maintain
an inventory of all obligations and securities acquired by the
investing authority pursuant to this section. The inventory shall
include a description of each obligation or security, including
type, cost, par value, maturity date, settlement date, and any
coupon rate.
(2) The investing authority shall also keep a complete record
of all purchases and sales of the obligations and securities made
pursuant to this section.
(3) The investing authority shall maintain a monthly
portfolio report and issue a copy of the monthly portfolio report
describing such investments to the county investment advisory
committee, detailing the current inventory of all obligations and
securities, all transactions during the month that affected the
inventory, any income received from the obligations and
securities, and any investment expenses paid, and stating the
names of any persons effecting transactions on behalf of the
investing authority.
(4) The monthly portfolio report shall be a public record and
available for inspection under section 149.43 of the Revised Code.
(5) The inventory and the monthly portfolio report shall be
filed with the board of county commissioners.
(M) An investing authority may enter into a written
investment or deposit agreement that includes a provision under
which the parties agree to submit to nonbinding arbitration to
settle any controversy that may arise out of the agreement,
including any controversy pertaining to losses of public moneys
resulting from investment or deposit. The arbitration provision
shall be set forth entirely in the agreement, and the agreement
shall include a conspicuous notice to the parties that any party
to the arbitration may apply to the court of common pleas of the
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to the
court for an order to change venue to a court of common pleas
located more than one hundred miles from the county in which the
investing authority is located.
For purposes of this division, "investment or deposit
agreement" means any agreement between an investing authority and
a person, under which agreement the person agrees to invest,
deposit, or otherwise manage, on behalf of the investing
authority, a county's inactive moneys or moneys in a county public
library fund, or agrees to provide investment advice to the
investing authority.
(N) An investment held in the county portfolio on September
27, 1996, that was a legal investment under the law as it existed
before September 27, 1996, may be held until maturity, or if the
investment does not have a maturity date the investment may be
held until five years from September 27, 1996, regardless of
whether the investment would qualify as a legal investment under
the terms of this section as amended.
Sec. 321.343. A county treasurer of a county in which a
county land reutilization corporation has been organized under
Chapter 1724. of the Revised Code may enter into an agreement with
the county land reutilization corporation for the benefit of the
holders of debt obligations of the corporation for the repayment
of which will be pledged the penalties and interest on current
year unpaid taxes and current year delinquent taxes, as defined in
and available under section 321.341 of the Revised Code. The
pledge agreement may include, without limitation, a pledge by the
county treasurer of and a grant of a security interest in the
penalties and interest deposited into the county land
reutilization fund to the payment of debt service on the debt
obligations and a covenant of the county treasurer to continue to
make the special tax advances authorized under section 321.341 of
the Revised Code when the debt obligations remain outstanding if
necessary to generate from the penalties and interest at least the
amount needed to pay the debt service on the debt obligations when
due. The penalties and interest so pledged and so deposited are
immediately subject to the pledge and security interest without
any physical delivery thereof or further act. The pledge and
security interest are valid, binding, and enforceable against all
parties having claims of any kind against the county land
reutilization corporation or the county treasurer, irrespective of
notice thereof, and such pledge and grant of a security interest
creates a perfected security interest for all purposes of Chapter
1309. of the Revised Code, without the necessity for separation or
delivery or possession of the pledged penalties and interest, or
for the filing or recording of the document by which the pledge
and security interest are created. The penalties and interest so
deposited may be applied to the purposes for which pledged without
necessity for any act of appropriation. The performance under this
pledge agreement is expressly determined and declared to be a duty
specifically enjoined by law upon the county treasurer and each
officer and employee having authority to perform the duty of the
county treasurer resulting from an office, trust, or station,
within the meaning of section 2731.01 of the Revised Code,
enforceable by writ of mandamus.
Sec. 323.78. Notwithstanding anything in Chapters 323.,
5721., and 5723. of the Revised Code, if the county treasurer of a
county having a population of more than one million two hundred
thousand as of the most recent decennial census in which a county
land reutilization operates, in any petition for foreclosure of
abandoned lands, elects to invoke the alternative redemption
period, then upon any adjudication of foreclosure by any court or
the board of revision in any proceeding under section 323.25,
sections 323.65 to 323.79, or section 5721.18 of the Revised Code,
the following apply:
(A) Unless otherwise ordered by a motion of the court or
board of revision, the petition shall assert, and any notice of
final hearing shall include, that upon foreclosure of the parcel,
the equity of redemption in any parcel by its owner shall be
forever terminated after the expiration of the alternative
redemption period, that the parcel thereafter may be sold at
sheriff's sale either by itself or together with other parcels as
permitted by law; or that the parcel may, by order of the court or
board of revision, be transferred directly to a municipal
corporation, township, county, school district, or county land
reutilization corporation without appraisal and without a sale,
free and clear of all impositions and any other liens on the
property, which shall be deemed forever satisfied and discharged.
(B) After the expiration of the alternative redemption period
following an adjudication of foreclosure, by order of the court or
board of revision, any equity of redemption is forever
extinguished, and the parcel may be transferred individually or in
lots with other tax-foreclosed properties to a municipal
corporation, township, county, school district, or county land
reutilization corporation without appraisal and without a sale,
upon which all impositions and any other liens subordinate to
liens for impositions due at the time the deed to the property is
conveyed to a purchaser or transferred to a community development
organization, county land reutilization corporation, municipal
corporation, county, township, or school district, shall be deemed
satisfied and discharged. Other than the order of the court or
board of revision so ordering the transfer of the parcel, no
further act of confirmation or other order shall be required for
such a transfer, or for the extinguishment of any right of
redemption.
(C) Upon the expiration of the alternative redemption period
in cases to which the alternative redemption period has been
ordered, if no community development organization, county land
reutilization corporation, municipal corporation, county,
township, or school district has requested title to the parcel,
the court or board of revision may order the property sold as
otherwise provided in Chapters 323. and 5721. of the Revised Code,
and, failing any bid at any such sale, the parcel shall be
forfeited to the state and otherwise disposed of pursuant to
Chapter 5723. of the Revised Code.
Sec. 1724.02. In furtherance of the purposes set forth in
section 1724.01 of the Revised Code, a community improvement
corporation shall have the following powers:
(A)(1) To borrow money for any of the purposes of the
community improvement corporation by means of loans, lines of
credit, or any other financial instruments or securities,
including the issuance of its bonds, debentures, notes, or other
evidences of indebtedness, whether secured or unsecured, and to
secure the same by mortgage, pledge, deed of trust, or other lien
on its property, franchises, rights, and privileges of every kind
and nature or any part thereof or interest therein; and
(2) If the community improvement corporation is a county land
reutilization corporation, the corporation may request, by
resolution:
(a) That the board of county commissioners of the county
served by the corporation pledge a specifically identified source
or sources of revenue pursuant to division (C) of section 307.78
of the Revised Code as security for such borrowing by the
corporation; and
(b)(i) If the land subject to reutilization is located within
an unincorporated area of the county, that the board of county
commissioners issue notes under section 307.082 of the Revised
Code for the purpose of constructing public infrastructure
improvements and take other actions as the board determines are in
the interest of the county and are authorized under sections
5709.78 to 5709.81 of the Revised Code or bonds or notes under
section 5709.81 of the Revised Code for the refunding purposes set
forth in that section; or
(ii) If the land subject to reutilization is located within
the corporate boundaries of a municipal corporation, that the
municipal corporation issue bonds for the purpose of constructing
public infrastructure improvements and take such other actions as
the municipal corporation determines are in its interest and are
authorized under sections 5709.40 to 5709.43 of the Revised Code.
(B) To make loans to any person, firm, partnership,
corporation, joint stock company, association, or trust, and to
establish and regulate the terms and conditions with respect to
any such loans; provided that an economic development corporation
shall not approve any application for a loan unless and until the
person applying for said loan shows that the person has applied
for the loan through ordinary banking or commercial channels and
that the loan has been refused by at least one bank or other
financial institution. Nothing in this division shall preclude a
county land reutilization corporation from making revolving loans
to community development corporations, private entities, or groups
any person for the purposes contained in the corporation's plan
under section 1724.10 of the Revised Code.
(C) To purchase, receive, hold, manage, lease,
lease-purchase, or otherwise acquire and to sell, convey,
transfer, lease, sublease, or otherwise dispose of real and
personal property, together with such rights and privileges as may
be incidental and appurtenant thereto and the use thereof,
including but not restricted to, any real or personal property
acquired by the community improvement corporation from time to
time in the satisfaction of debts or enforcement of obligations,
and to enter into contracts with third parties, including the
federal government, the state, any political subdivision, or any
other entity. A county land reutilization corporation shall not
acquire an interest in real property if such acquisition causes
the percentage of unoccupied real property held by the corporation
to become less than seventy-five per cent of all real property
held by the corporation for reutilization, reclamation, or
rehabilitation. For the purposes of this division, "unoccupied"
has the same meaning as in section 323.65 of the Revised Code.
(D) To acquire the good will, business, rights, real and
personal property, and other assets, or any part thereof, or
interest therein, of any persons, firms, partnerships,
corporations, joint stock companies, associations, or trusts, and
to assume, undertake, or pay the obligations, debts, and
liabilities of any such person, firm, partnership, corporation,
joint stock company, association, or trust; to acquire, reclaim,
manage, or contract for the management of improved or unimproved
and underutilized real estate for the purpose of constructing
industrial plants, other business establishments, or housing
thereon, or causing the same to occur, for the purpose of
assembling and enhancing utilization of the real estate, or for
the purpose of disposing of such real estate to others in whole or
in part for the construction of industrial plants, other business
establishments, or housing; and to acquire, reclaim, manage,
contract for the management of, construct or reconstruct, alter,
repair, maintain, operate, sell, convey, transfer, lease,
sublease, or otherwise dispose of industrial plants, business
establishments, or housing.
(E) To acquire, subscribe for, own, hold, sell, assign,
transfer, mortgage, pledge, or otherwise dispose of the stock,
shares, bonds, debentures, notes, or other securities and
evidences of interest in, or indebtedness of, any person, firm,
corporation, joint stock company, association, or trust, and while
the owner or holder thereof, to exercise all the rights, powers,
and privileges of ownership, including the right to vote therein,
provided that no tax revenue, if any, received by a community
improvement corporation shall be used for such acquisition or
subscription.
(F) To mortgage, pledge, or otherwise encumber any property
acquired pursuant to the powers contained in divisions (C), (D),
or (E) of this section.
(G) Nothing in this section shall limit the right of a
community improvement corporation to become a member of or a
stockholder in a corporation formed under Chapter 1726. of the
Revised Code.
(H) To serve as an agent for grant applications and for the
administration of grants, or to make applications as principal for
grants for county land reutilization corporations.
(I) To exercise the powers enumerated under Chapter 5722. of
the Revised Code on behalf of a county that organizes or contracts
with a county land reutilization corporation.
(J) To engage in code enforcement and nuisance abatement,
including, but not limited to, cutting grass and weeds, boarding
up vacant or abandoned structures, and demolishing condemned
structures on properties that are subject to a delinquent tax or
assessment lien, or property for which a municipal corporation or
township has contracted with a county land reutilization
corporation to provide code enforcement or nuisance abatement
assistance.
(K) To charge fees or exchange in-kind goods or services for
services rendered to political subdivisions and other persons or
entities for whom services are rendered.
(L) To employ and provide compensation for an executive
director who shall manage the operations of a county land
reutilization corporation and employ others for the benefit of the
corporation as approved and funded by the board of directors. No
employee of the corporation is or shall be deemed to be an
employee of the political subdivision for whose benefit the
corporation is organized solely because the employee is employed
by the corporation;
(M) To purchase tax certificates at auction, negotiated sale,
or from a third party who purchased and is a holder of one or more
tax certificates issued pursuant to sections 5721.30 to 5721.43 of
the Revised Code;
(N) To be assigned a mortgage on real property from a
mortgagee in lieu of acquiring such real property subject to a
mortgage.
(O) To do all acts and things necessary or convenient to
carry out the purposes of section 1724.01 of the Revised Code and
the powers especially created for a community improvement
corporation in Chapter 1724. of the Revised Code, including, but
not limited to, contracting with the federal government, the state
or any political subdivision, and any other party, whether
nonprofit or for-profit.
The powers enumerated in this chapter shall not be construed
to limit the general powers of a community improvement
corporation. The powers granted under this chapter are in addition
to those powers granted by any other chapter of the Revised Code,
but, as to a county land reutilization corporation, shall be used
only for the purposes enumerated under division (B)(2) of section
1724.01 of the Revised Code.
Sec. 1724.03. (A) After the articles of incorporation have
been filed, and at the first meeting of the board of directors of
a county land reutilization corporation, the board shall adopt
regulations for the government of the corporation, the conduct of
its affairs, and the management of its property, consistent with
law and the articles. The content of the regulations shall be
governed by section 1702.11 of the Revised Code to the extent not
inconsistent with this chapter.
(B) The board of directors of a county land reutilization
corporation shall be composed of at least five, seven, or nine
members, including the county treasurer, at least two of the
members of the board of county commissioners, one representative
of the largest municipal corporation, based on the population
according to the most recent federal decennial census, that is
located in the county, one representative of a township with a
population of at least ten thousand in the unincorporated area of
the township according to the most recent federal decennial
census, if such a township exists in the county, and two any
remaining members selected by the treasurer and the county
commissioners who are members of the corporation's board and
approved by a majority of the chief executive officers of all
municipal corporations the majority of the territory of which is
located in the county. The treasurer and county commissioners who
are members of the board of directors shall establish the process
by which such approval shall be obtained. The failure, refusal, or
inability of any chief executive officer to respond in writing to
any request for approval of the members selected by the treasurer
and county commissioners within fourteen days shall be deemed an
approval by the chief executive officer. Any such failure,
refusal, or inability to respond shall not prevent the corporation
from exercising its powers and authority under this chapter. At
least one board member shall have private sector or nonprofit
experience in rehabilitation or real estate acquisitions. A county
treasurer and the county commissioners each may appoint a
representative, as a director of the corporation, to act for the
officer at any of the meetings of the corporation. Except as may
otherwise be authorized by the regulations of the corporation, all
members of the board of directors shall serve without
compensation, but shall be reimbursed for actual and necessary
expenses.
Sec. 1724.04. A county having a population of more than one
million two hundred thousand, or between seventy-eight thousand
and eighty-one thousand, as of the most recent decennial census
that elects under section 5722.02 of the Revised Code to adopt and
implement the procedures set forth in sections 5722.02 to 5722.15
of the Revised Code may organize a county land reutilization
corporation under this chapter and Chapter 1702. of the Revised
Code for the purpose of exercising the powers granted to a county
under Chapter 5722. of the Revised Code. The county treasurer of
the county for the benefit of which the corporation is being
organized shall be the incorporator of the county land
reutilization corporation. The form of the articles of
incorporation of the corporation shall be approved by resolution
of the board of county commissioners of the county.
When the articles of incorporation of any community
improvement corporation, or any amendment, amended articles,
merger, or consolidation which provides for the creation of such a
corporation, are deposited for filing and recording in the office
of the secretary of state, the secretary of state shall submit
them to the attorney general for examination. If such articles,
amendment, amended articles, merger, or consolidation, are found
by the attorney general to be in accordance with Chapter 1724. of
the Revised Code, and not inconsistent with the constitution and
laws of the United States and of this state, the attorney general
shall endorse thereon the attorney general's approval and deliver
them to the secretary of state, who shall file and record them
pursuant to section 1702.07 of the Revised Code.
Sec. 1724.05. Each community improvement corporation shall
prepare an annual financial report that conforms to rules
prescribed by the auditor of state pursuant to section 117.20 of
the Revised Code, that is prepared according to generally accepted
accounting principles, and that is certified by the board of
directors of the corporation or its treasurer or other chief
fiscal officer to the best knowledge and belief of those persons
certifying the report. The financial report shall be filed with
the auditor of state within one hundred twenty days following the
last day of the corporation's fiscal year, unless the auditor of
state extends that deadline. The auditor of state may establish
terms and conditions for granting any extension of that deadline.
The financial report shall be published on the corporation's web
site, or if the corporation does not have a web site, on the web
site of the county in which the corporation is located.
Each community improvement corporation shall submit to audits
by the auditor of state, the scope and frequency of which shall be
in accordance with section 117.11 of the Revised Code as if the
corporation were a public office subject to that section. However,
a community improvement corporation may request in accordance with
section 115.56 of the Revised Code, as if the corporation were a
public office subject to that section, the performance of any of
those audits by an independent certified public accountant or firm
of certified public accountants.
The auditor of state is authorized to receive and file the
annual financial reports required by this section and the reports
of all audits performed in accordance with this section. The
auditor of state shall analyze those annual financial reports and
the reports of those audits to determine whether the activities of
a community improvement corporation involved are in accordance
with this chapter.
Sec. 5722.22. A county land reutilization corporation shall
is not be liable for damages arising from a, or subject to
equitable remedies, for breach of a common law duty, or for
violation of sections 3737.87 to 3737.891 of the Revised Code or
Chapter 3704., 3734., 3745., 3746., 3750., 3751., 3752., 6101., or
6111. of the Revised Code or any rule adopted or order, permit,
license, variance, or plan approval issued under any of those
chapters that is or was committed by another person in connection
with a parcel of land acquired by the county land reutilization
corporation.
Section 2. That existing sections 1.62, 135.35, 323.78,
1724.02, 1724.03, 1724.04, 1724.05, and 5722.22 of the Revised
Code are hereby repealed.
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