130th Ohio General Assembly
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H. B. No. 10  As Introduced
As Introduced

130th General Assembly
Regular Session
2013-2014
H. B. No. 10


Representative Hagan, C. 



A BILL
To amend sections 305.03, 319.04, 319.26, 321.37, 321.38, 321.46, 2921.44, 3314.011, and 3314.023; to enact sections 9.831, 117.411, 507.12, 507.15, 733.78, 733.81, 3313.30, 3314.50, 3326.211, 3328.16, and 3328.37; and to repeal section 319.25 of the Revised Code; to amend Section 267.50.70 of Am. Sub. H.B. 153 of the 129th General Assembly; and to amend Section 267.50.70 of Am. Sub. H.B. 153 of the 129th General Assembly for the purpose of changing its number to section 3314.51 of the Revised Code to establish education programs and continuing education requirements for the fiscal officers of townships and municipal corporations, to establish procedures for removing those fiscal officers, county treasurers, and county auditors from office, and to create fiscal accountability requirements for public schools, counties, municipal corporations, and townships.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 305.03, 319.04, 319.26, 321.37, 321.38, 321.46, 2921.44, 3314.011, and 3314.023 be amended; sections 9.831, 117.411, 507.12, 507.15, 733.78, 733.81, 3313.30, 3314.50, 3326.211, 3328.16, and 3328.37 of the Revised Code be enacted; and Section 267.50.70 of Am. Sub. H.B. 153 of the 129th General Assembly be amended and renumbered as section 3314.51 of the Revised Code to read as follows:
Sec. 9.831.  (A) As used in this section:
(1) "Political subdivision" means a county, municipal corporation, or township.
(2) "Fiscal officer" means a county auditor, county treasurer, township fiscal officer, village fiscal officer, village clerk-treasurer, auditor of a municipal corporation, or treasurer of a municipal corporation.
(B) The legislative authority of a political subdivision may purchase a policy or policies of professional indemnity insurance to protect the political subdivision against claims not otherwise covered under general liability insurance policies that are related to the performance of the fiscal officer's duties.
Sec. 117.411. (A) As used in this section, "legislative authority" means, for a county, the board of county commissioners; for a municipal corporation, the legislative authority of the municipal corporation; and for a township, the board of township trustees.
(B) If the public office of a county, municipal corporation, or township has been declared unauditable under section 117.41 of the Revised Code, the auditor of state shall provide written notice of that declaration to the legislative authority of the county, municipal corporation, or township. The auditor of state also shall post the notice on the auditor of state's web site.
(C) Not later than forty-five days after receiving the notice, the legislative authority shall provide a written response to the auditor of state. The response shall include all of the following:
(1) An overview of the process the legislative authority will use to review and understand the circumstances that led to the county, municipal corporation, or township becoming unauditable;
(2) A plan for providing to the auditor of state documentation necessary to complete an audit of the county, municipal corporation, or township and for ensuring that all financial documents are available in the future; and
(3) The actions the legislative authority will take to ensure that the plan described in division (C)(2) of this section is implemented.
(D)(1) If the public office of a county, municipal corporation, or township fails to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition within ninety days after being declared unauditable, the auditor of state, in addition to requesting legal action under sections 117.41 and 117.42 of the Revised Code, shall notify the office of budget and management and any other state agency from which the public office receives state funding of the failure.
(2) If the auditor of state or a public accountant subsequently is able to complete a financial audit of the public office, the auditor of state shall notify the office of budget and management and any other state agency from which the public office receives state funding that the audit has been completed.
(E) Notwithstanding any provision to the contrary in the Revised Code, upon notification by the auditor of state under division (D)(1) of this section that the public office of a county, municipal corporation, or township has failed to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition following a declaration that the public office is unauditable, the office of budget and management and any other state agency that received the notice shall immediately cease all state funding for that public office, other than benefit assistance to individuals, and shall withhold the state funding until receiving subsequent notification from the auditor of state under division (D)(2) of this section that the auditor of state or a public accountant was able to complete a financial audit of the public office.
Sec. 305.03.  (A)(1) Whenever any county officer, except the county auditor or county treasurer, fails to perform the duties of office for ninety consecutive days, except in case of sickness or injury as provided in divisions (B) and (C) of this section, the office shall be deemed vacant.
(2) Whenever any county auditor or county treasurer fails to perform the duties of office for thirty consecutive days, except in case of sickness or injury as provided in divisions (B) and (C) of this section, the office shall be deemed vacant.
(B) Whenever any county officer is absent because of sickness or injury, the officer shall cause to be filed with the board of county commissioners a physician's certificate of the officer's sickness or injury. If such the certificate is not filed with the board within ten days after the expiration of thirty consecutive days, in the case of a county auditor or county treasurer, or within ten days after the expiration of ninety consecutive days of absence, in the case of all other county officers, the office shall be deemed vacant.
(C) Whenever a county officer files a physician's certificate under division (B) of this section, but continues to be absent for an additional thirty days commencing immediately after the last day on which this certificate may be filed under division (B) of this section, the office shall be deemed vacant.
(D) If at any time two county commissioners in a county are absent and have filed a physician's certificate under division (B) of this section, the county coroner, in addition to performing the duties of coroner, shall serve as county commissioner until at least one of the absent commissioners returns to office or until the office of at least one of the absent commissioners is deemed vacant under this section and the vacancy is filled. If the coroner so requests, the coroner shall be paid a per diem rate for the coroner's service as a commissioner. That per diem rate shall be the annual salary specified by law for a county commissioner of that county whose term of office began in the same year as the coroner's term of office began, divided by the number of days in the year.
While the coroner is serving as a county commissioner, the coroner shall be considered an acting county commissioner and shall perform the duties of the office of county commissioner until at least one of the absent commissioners returns to office or until the office of at least one of the absent commissioners is deemed vacant. Before assuming the office of acting county commissioner, the coroner shall take an oath of office as provided in sections 3.22 and 3.23 of the Revised Code. The coroner's service as an acting county commissioner does not constitute the holding of an incompatible public office or employment in violation of any statutory or common law prohibition against the simultaneous holding of more than one public officer office or employment.
The coroner shall give a new bond in the same amount and signed and approved as provided in section 305.04 of the Revised Code. The bond shall be conditioned for the faithful discharge of the coroner's duties as acting county commissioner and for the payment of any loss or damage that the county may sustain by reason of the coroner's failure in those duties. The bond, along with the oath of office and approval of the probate judge indorsed on it, shall be deposited and paid for as provided for the bonds in section 305.04 of the Revised Code.
(E) Any vacancy declared under this section shall be filled in the manner provided by section 305.02 of the Revised Code.
(F) This section shall not apply to a county officer while in the active military service of the United States.
Sec. 319.04.  (A) Each county auditor who is elected to a full term of office shall attend and successfully complete at least sixteen hours of continuing education courses during the first year of the auditor's term of office, and complete at least another eight hours of such courses by the end of that term. Each such county auditor shall include at least two hours of ethics and substance-abuse training in the total twenty-four hours of required courses. To be counted toward the twenty-four hours required by this section, a course must be approved by the county auditors association of Ohio. Any county auditor who teaches an approved course shall be entitled to credit for the course in the same manner as if the county auditor had attended the course.
That association shall record and, upon request, verify the completion of required course work for each county auditor, and issue a statement to each county auditor of the number of hours of continuing education the county auditor has successfully completed. Each year the association shall send a list of the continuing education courses, and the number of hours each county auditor has successfully completed, to the auditor of state and the tax commissioner, and shall provide a copy of this list to any other individual who requests it.
The association auditor of state shall issue a certificate of completion to each county auditor who completes the continuing education courses required by this section. The auditor of state shall issue a "notice of failure" to any county auditor required to complete continuing education courses under this section who fails to successfully complete at least sixteen hours of continuing education courses during the first year of the county auditor's term of office or to complete a total of at least twenty-four hours of such courses by the end of that term. This notice is for informational purposes only and does not affect any individual's ability to hold the office of county auditor. If a county auditor does not complete the continuing education courses required by this section, the board of county commissioners may not purchase a policy or policies of professional indemnity insurance for the county auditor under section 9.831 of the Revised Code.
(B) Each board of county commissioners shall approve, from money appropriated to the county auditor, a reasonable amount requested by the county auditor of its county to cover the costs the county auditor must incur to meet the requirements of division (A) of this section, including registration fees, lodging and meal expenses, and travel expenses.
Sec. 319.26.  When the board of county commissioners suspends (A)(1) If a county auditor from the performance of his duties, as provided in section 319.25 of the Revised Code, it shall immediately cause a prosecution to be instituted against him. If the grand jury within four months of the date of the suspension fails to find and present an indictment against such auditor, or if an indictment is found and upon trial he is acquitted, such auditor shall be restored to the possession of his office and of the rights, duties, and obligations of such office. The person appointed as provided in section 319.25 of the Revised Code to perform the duties of the auditor shall vacate and cease to have any rights in such office, through misfeasance, malfeasance, or nonfeasance, fails to make a settlement or to pay over money as prescribed by law, the county treasurer or board of county commissioners shall cause suit to be instituted against the county auditor and against the auditor's surety or sureties for the amount due, with a ten per cent penalty on that amount. The suit shall be instituted by the filing of a complaint for the removal of the county auditor with the court of common pleas of the county in which the county auditor against whom the complaint is filed resides. The suit shall have precedence over all civil business. The judge or clerk of the court of common pleas shall cause to be served upon the county auditor the complaint and a notice of hearing, at least ten days before the hearing upon the complaint. The hearing shall be held not later than thirty days after the date of the filing of the complaint. The judge may suspend the county auditor pending the hearing.
(2) The county auditor is entitled, with or without counsel, to appear and introduce evidence at the hearing. The county auditor is not entitled to representation by the prosecuting attorney and is personally and solely responsible for payment of attorney's fees and expenses incurred, notwithstanding any other provision of the Revised Code. But if a judge or jury rules against removal from office and the complaint is dismissed, the court shall award reasonable attorney's fees to the county auditor.
(B) Removal proceedings shall be tried by the judge, unless a jury trial is demanded in writing by the county auditor against whom the complaint was filed. If a jury trial is so demanded, the jury shall be composed of twelve individuals who satisfy the qualifications of a juror specified in section 2313.42 of the Revised Code. If nine or more jurors find one or more of the charges in the complaint are true, the jury shall return a finding for the removal of the county auditor. If less than nine jurors find that the charges in the complaint are true, the jury shall return a finding that the complaint be dismissed. Any finding of the jury shall be filed with the clerk of the court and shall be made a matter of public record. Removal proceedings tried by a judge shall be a matter of public record, and a full detailed statement of the reason for removal shall be filed with the clerk of the court and also shall be made a matter of public record.
(C)(1) The decision of the court of common pleas for the removal of a county auditor may be reviewed on appeal by the court of appeals on questions of law. The transcript of the record and the notice of appeal shall be filed in the court of appeals not more than thirty days after the decision is rendered and the journal entry is made by the court of common pleas. The notice of appeal may be filed only after leave has been granted by the court of appeals for good cause shown at a hearing of which the attorneys for both the county auditor and the board of county commissioners or county treasurer that filed the complaint have been notified. The decision of the court of appeals in refusing to allow a notice of appeal to be filed, or in passing upon the merits of the case in the appellate proceedings, is final.
(2) The court of appeals has jurisdiction to hear the case at any place in the judicial district in which the court of appeals may be sitting. The court of appeals shall hear the case not more than thirty court days after the filing of the notice of appeal. If the court of appeals hears the case in any county within its judicial district other than the county in which the county auditor against whom the complaint was filed resides, the court of appeals shall transmit its findings with the reasons therefor to the clerk of the court of common pleas of the county in which the county auditor resides, with instructions to the clerk to make the findings of the court a matter of record upon the journal of the court in that county.
(3) In all cases before the court of appeals involving the removal of a county auditor under this section, the county auditor has the right of review or appeal to the supreme court on leave first obtained, and the supreme court shall hear the case not more than thirty court days after leave has been granted. In all other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals.
(D) In removal proceedings instituted under this section, the court of common pleas and the court of appeals may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which a witness resides. Witness fees and other fees in connection with the removal proceedings shall be the same as in civil cases, and the expenses incurred in removal proceedings shall be paid out of the county general revenue fund.
(E) Immediately following a final decision that the county auditor shall be removed from office, the vacancy shall be filled as provided in section 305.02 of the Revised Code.
(F) Any individual removed from office under this section is not entitled to hold another public office for at least four years following the date of the final decision, and is not entitled to hold another public office until the settlement is made or the money is paid over that was the cause of the suit being instituted under this section.
Sec. 321.37.  If the county treasurer, through misfeasance, malfeasance, or nonfeasance, fails to make a settlement or to pay over money as prescribed by law, the county auditor or board of county commissioners shall cause suit to be instituted against such treasurer and his the treasurer's surety or sureties for the amount due, with a ten per cent penalty on such amount, which suit shall have precedence of over all civil business. The suit shall be instituted by the filing of a complaint for removal of the county treasurer with the court of common pleas of the county in which the county treasurer against whom the complaint is filed resides.
Sec. 321.38.  Immediately on (A)(1) On the institution of the a suit mentioned in under section 321.37 of the Revised Code, the board of county commissioners may remove such county treasurer and appoint some person to fill the vacancy created. The person so appointed shall give bond and take the oath of office prescribed for treasurers judge or clerk of the court of common pleas shall cause to be served upon the county treasurer the complaint and a notice of hearing, at least ten days before the hearing upon the complaint. The hearing shall be held not later than thirty days after the date of the filing of the complaint. The judge may suspend the county treasurer pending the hearing.
(2) The county treasurer is entitled, with or without counsel, to appear and introduce evidence at the hearing. The county treasurer is not entitled to representation by the prosecuting attorney and is personally and solely responsible for payment of attorney's fees and expenses incurred, notwithstanding any other provision of the Revised Code. But if a judge or jury rules against removal from office and the complaint is dismissed, the court shall award reasonable attorney's fees to the county treasurer.
(B) Removal proceedings shall be tried by the judge, unless a jury trial is demanded in writing by the county treasurer against whom the complaint was filed. If a jury trial is so demanded, the jury shall be composed of twelve individuals who satisfy the qualifications of a juror specified in section 2313.42 of the Revised Code. If nine or more jurors find one or more of the charges in the complaint are true, the jury shall return a finding for the removal of the county treasurer. If less than nine jurors find that the charges in the complaint are true, the jury shall return a finding that the complaint be dismissed. Any finding of the jury shall be filed with the clerk of the court and be made a matter of public record. Removal proceedings tried by a judge shall be a matter of public record, and a full detailed statement of the reason for removal shall be filed with the clerk of the court and also shall be made a matter of public record.
(C)(1) The decision of the court of common pleas for the removal of a county treasurer may be reviewed on appeal by the court of appeals on questions of law. The transcript of the record and the notice of appeal shall be filed in the court of appeals not more than thirty days after the decision is rendered and the journal entry is made by the court of common pleas. The notice of appeal may be filed only after leave has been granted by the court of appeals for good cause shown at a hearing of which the attorneys for both the county treasurer and the county auditor or board of county commissioners that filed the complaint have been notified. The decision of the court of appeals in refusing to allow a notice of appeal to be filed, or in passing upon the merits of the case in the appellate proceedings, is final.
(2) The court of appeals has jurisdiction to hear the case at any place in the judicial district in which the court of appeals may be sitting. The court of appeals shall hear the case not more than thirty court days after the filing of the notice of appeal. If the court of appeals hears the case in any county within its judicial district other than the county in which the county treasurer against whom the complaint was filed resides, the court of appeals shall transmit its findings with the reasons therefor to the clerk of the court of common pleas of the county in which the county treasurer resides, with instructions to the clerk to make the findings of the court a matter of record upon the journal of the court in that county.
(3) In all cases before the court of appeals involving the removal of a county treasurer under this section, the county treasurer has the right of review or appeal to the supreme court on leave first obtained, and the supreme court shall hear the case not more than thirty court days after leave has been granted. In all other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals.
(D) In removal proceedings under this section, the court of common pleas and the court of appeals may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which a witness resides. Witness fees and other fees in connection with the removal proceedings shall be the same as in civil cases, and the expenses incurred in removal proceedings shall be paid out of the general revenue fund of the county.
(E) Immediately following a final decision that the county treasurer shall be removed from office, the vacancy shall be filled as provided in section 305.02 of the Revised Code.
(F) Any individual removed from office under this section is not entitled to hold another public office for at least four years following the date of the final decision and is not entitled to hold another public office until the settlement is made or the money is paid over that was the cause of the suit being instituted under section 321.37 of the Revised Code.
Sec. 321.46.  (A) To enhance the background and working knowledge of county treasurers in governmental accounting, portfolio reporting and compliance, investments, and cash management, the auditor of state and the treasurer of state shall conduct education programs for persons elected for the first time to the office of county treasurer and shall hold biennial continuing education programs for persons who continue to hold the office of county treasurer. Education programs for newly elected county treasurers shall be held between the first day of December and the first Monday of September next following that person's election to the office of county treasurer. Similar initial training may also be provided to any county treasurer who is appointed to fill a vacancy or who is elected at a special election.
(B)(1) The auditor of state shall determine the manner and content of the education programs in the subject areas of governmental accounting and portfolio reporting and compliance. In those areas, newly elected county treasurers shall take at least thirteen hours of education before taking office.
(2) The treasurer of state shall determine the manner and content of the education programs in the subject areas of investments and cash management. In those areas, newly elected county treasurers shall take at least thirteen hours of education before taking office.
(3)(a) After completing one year in office, a county treasurer shall take not less than twenty-four hours of continuing education during each biennial cycle. For purposes of division (B)(3)(a) of this section, a biennial cycle for continuing education shall be every two calendar years after the treasurer's first year in office. The treasurer of state shall determine the manner and content of the education programs in the subject areas of investments, cash management, the collection of taxes, ethics, and any other subject area that the treasurer of state determines is reasonably related to the duties of the office of the county treasurer. The auditor of state shall determine the manner and content of the education programs in the subject areas of governmental accounting, portfolio reporting and compliance, office management, and any other subject area that the auditor of state determines is reasonably related to the duties of the office of the county treasurer.
(b) A county treasurer who accumulates more than twenty-four hours of continuing education in a biennial cycle described in division (B)(3)(a) of this section may credit the hours in excess of twenty-four hours to the next biennial cycle. However, regardless of the total number of hours earned, no more than six hours in the education programs determined by the treasurer of state pursuant to division (B)(3)(a) of this section and six hours in the education programs determined by the auditor of state pursuant to that division shall be carried over to the next biennial cycle.
(c) A county treasurer who participates in a training program or seminar established under section 109.43 of the Revised Code may apply the three hours of training to the twenty-four hours of continuing education required in a biennial cycle under division (B)(3)(a) of this section.
(C) The auditor of state and the treasurer of state may each charge counties a registration fee that will meet actual and necessary expenses of the training of county treasurers, including instructor fees, site acquisition costs, and the cost of course materials. The necessary personal expenses of county treasurers as a result of attending the training programs shall be borne by the counties the treasurers represent.
(D) The auditor of state and the treasurer of state may allow any other interested person to attend any of the education programs that are held pursuant to this section, provided that before attending any such education program, the interested person shall pay to either the auditor of state or the treasurer of state, as appropriate, the full registration fee set for the education program.
(E)(1) If a county treasurer fails to complete the initial education programs required by this section before taking office, the treasurer's authority to invest county funds and to manage the county portfolio immediately is suspended, and this authority is transferred to the county's investment advisory committee until full compliance with the initial education programs is determined by the treasurer of state.
(2) If a county treasurer fails to complete continuing education programs as required by this section, the county treasurer is subject to divisions (B) to (E) of section 321.47 of the Revised Code, including possible suspension of the treasurer's authority to invest county funds and to manage the county portfolio and transfer of this authority to the county's investment advisory committee.
(3) If a county treasurer fails to complete the initial education programs and continuing education programs required by this section, the board of county commissioners may not purchase a policy or policies of professional indemnity insurance for the county treasurer under section 9.831 of the Revised Code.
(F)(1) Notwithstanding divisions (B) and (E) of this section, a county treasurer who fails to complete the initial or continuing education programs required by this section shall invest only in the Ohio subdivisions fund pursuant to division (A)(6) of section 135.35 of the Revised Code, in no load money market mutual funds pursuant to division (A)(5) of section 135.35 of the Revised Code, or in time certificates of deposit or savings or deposit accounts pursuant to division (A)(3) of section 135.35 of the Revised Code.
(2) A county treasurer who has failed to complete the initial education programs required by this section and invests in other than the investments permitted by division (F)(1) of this section immediately shall have the county treasurer's authority to invest county funds and to manage the county portfolio suspended, and this authority shall be transferred to the county's investment advisory committee until full compliance with the initial education programs is determined by the treasurer of state.
(3) If a county treasurer fails to complete continuing education programs required by this section and invests in other than the investments permitted by division (F)(1) of this section, the county treasurer is subject to divisions (B) to (E) of section 321.47 of the Revised Code, including possible suspension of the treasurer's authority to invest county funds and to manage the county portfolio and transfer of this authority to the county's investment advisory committee.
(G)(1) There is hereby created in the state treasury the county treasurer education fund, to be used by the treasurer of state for actual and necessary expenses of education programs held pursuant to this section and section 135.22 of the Revised Code. All registration fees collected by the treasurer of state under this section and section 135.22 of the Revised Code shall be paid into that fund.
(2) All registration fees collected by the auditor of state under this section shall be paid into the auditor of state training program fund established under section 117.44 of the Revised Code.
(H) The treasurer of state, with the advice and consent of the auditor of state, may adopt reasonable rules not inconsistent with this section for the implementation of this section.
Sec. 507.12. (A) To enhance the background and working knowledge of township fiscal officers in governmental finance, the auditor of state shall conduct education programs for individuals elected for the first time to the office of township fiscal officer and shall conduct biennial continuing education courses for individuals who continue to hold the office of township fiscal officer. The Ohio township association also may conduct such education programs and biennial continuing education courses. Similar initial training also may be provided to any township fiscal officer who is appointed to fill a vacancy. The auditor of state, in conjunction with the Ohio township association, shall determine the manner and content of the education programs and continuing education courses in governmental finance.
(B) Newly elected township fiscal officers shall take at least thirteen hours of education programs before taking office. A township fiscal officer who participates in a training program held under section 117.44 of the Revised Code may apply those hours taken before taking office to the thirteen hours of education programs required under this division.
(C)(1) Each township fiscal officer who is newly elected or newly appointed to a full term of office shall attend and successfully complete at least sixteen hours of continuing education courses during the first year of the township fiscal officer's term of office, and complete at least another eight hours of continuing education courses by the end of that term. A township fiscal officer shall include at least two hours of ethics and substance abuse training in the total twenty-four hours of required courses. Each township fiscal officer who is elected or appointed to a subsequent term of office shall attend and successfully complete twenty-four hours of continuing education courses in each subsequent term of office. To be counted toward the twenty-four hours required by this section, a course shall be approved or conducted by the Ohio township association or be conducted by the auditor of state. A township fiscal officer who teaches an approved course is entitled to credit for the course in the same manner as if the township fiscal officer had attended the course.
(2) A certified public accountant who serves as a township fiscal officer may apply to the continuing education hours required by division (C)(1) of this section any hours of continuing education completed under section 4701.11 of the Revised Code after being elected or appointed as a township fiscal officer.
(3) A township fiscal officer may apply to the continuing education hours required by division (C)(1) of this section any hours of continuing education completed under section 135.22 of the Revised Code after being elected or appointed as a township fiscal officer.
(D) The auditor of state, during the regular financial audit of a township, shall verify the completion of education programs required under division (B) of this section and continuing education courses required under division (C) of this section for the township fiscal officer. The auditor of state shall issue a certificate of completion to each township fiscal officer who completes the education programs and continuing education courses required by this section. The auditor of state shall issue a "failure to complete" notice to any township fiscal officer who is required to complete education programs and continuing education courses under this section, but who fails to do so. The notice is for informational purposes only and does not affect any individual's ability to hold the office of township fiscal officer. If a township fiscal officer does not complete the education programs and continuing education courses required by this section, the board of township trustees may not purchase a policy or policies of professional indemnity insurance for the township fiscal officer under section 9.831 of the Revised Code.
(E) Each board of township trustees shall approve a reasonable amount requested by the township fiscal officer to cover the costs the township fiscal officer is required to incur to meet the requirements of this section, including registration fees, lodging and meal expenses, and travel expenses.
Sec. 507.15.  (A)(1) If a township fiscal officer, through misfeasance, malfeasance, or nonfeasance, fails to make a settlement or to pay over money as prescribed by law, the board of township trustees shall cause suit to be instituted against the officer and against the officer's surety or sureties for the amount due, with a ten per cent penalty on that amount. The suit shall be instituted by the filing of a complaint for the removal of the township fiscal officer with the court of common pleas of the county in which the township fiscal officer against whom the complaint is filed resides. The suit shall have precedence over all civil business. The judge or clerk of the court of common pleas shall cause to be served upon the township fiscal officer the complaint and a notice of hearing, at least ten days before the hearing upon the complaint. The hearing shall be held not later than thirty days after the date of the filing of the complaint. The judge may suspend the township fiscal officer pending the hearing.
(2) The township fiscal officer is entitled, with or without counsel, to appear and introduce evidence at the hearing. The township fiscal officer is not entitled to representation by the prosecuting attorney and is personally and solely responsible for payment of attorney's fees and expenses incurred, notwithstanding any other provision of the Revised Code. But if a judge or jury rules against removal from office and the complaint is dismissed, the court shall award reasonable attorney's fees to the township fiscal officer.
(B) Removal proceedings shall be tried by the judge, unless a jury trial is demanded in writing by the township fiscal officer against whom the complaint was filed. If a jury trial is so demanded, the jury shall be composed of twelve individuals who satisfy the qualifications of a juror specified in section 2313.42 of the Revised Code. If nine or more jurors find one or more of the charges in the complaint are true, the jury shall return a finding for the removal of the township fiscal officer. If less than nine jurors find that the charges in the complaint are true, the jury shall return a finding that the complaint be dismissed. Any finding of the jury shall be filed with the clerk of the court and shall be made a matter of public record. Removal proceedings tried by a judge shall be a matter of public record, and a full detailed statement of the reason for removal shall be filed with the clerk of the court and also shall be made a matter of public record.
(C)(1) The decision of the court of common pleas for the removal of a township fiscal officer may be reviewed on appeal by the court of appeals on questions of law. The transcript of the record and the notice of appeal shall be filed in the court of appeals not more than thirty days after the decision is rendered and the journal entry is made by the court of common pleas. The notice of appeal may be filed only after leave has been granted by the court of appeals for good cause shown at a hearing of which the attorneys for both the township fiscal officer and the board of township trustees that filed the complaint have been notified. The decision of the court of appeals in refusing to allow a notice of appeal to be filed, or in passing upon the merits of the case in the appellate proceedings, is final.
(2) The court of appeals has jurisdiction to hear the case at any place in the judicial district in which the court of appeals may be sitting. The court of appeals shall hear the case not more than thirty court days after the filing of the notice of appeal. If the court of appeals hears the case in any county within its judicial district other than the county in which the township fiscal officer against whom the complaint was filed resides, the court of appeals shall transmit its findings with the reasons therefor to the clerk of the court of common pleas of the county in which the township fiscal officer resides, with instructions to the clerk to make the findings of the court a matter of record upon the journal of the court in that county.
(3) In all cases before the court of appeals involving the removal of a township fiscal officer under this section, the township fiscal officer has the right of review or appeal to the supreme court on leave first obtained, and the supreme court shall hear the case not more than thirty court days after leave has been granted. In all other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals.
(D) In removal proceedings instituted under this section, the court of common pleas and the court of appeals may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which a witness resides. Witness fees and other fees in connection with the removal proceedings shall be the same as in civil cases, and the expenses incurred in removal proceedings shall be paid out of the general revenue fund of the township.
(E) Immediately following a final decision that the township fiscal officer shall be removed from office, the vacancy shall be filled as provided in section 503.24 of the Revised Code.
(F) Any individual removed from office under this section is not entitled to hold another public office for at least four years following the date of the final decision, and is not entitled to hold another public office until the settlement is made or the money is paid over that was the cause of the suit being instituted under this section.
Sec. 733.78.  (A) As used in this section, "fiscal officer" means a village fiscal officer, a village clerk-treasurer, an auditor of a municipal corporation, or a treasurer of a municipal corporation.
(B)(1) If a fiscal officer, through misfeasance, malfeasance, or nonfeasance, fails to make a settlement or to pay over money as prescribed by law, the legislative authority of the municipal corporation shall cause suit to be instituted against the fiscal officer and against the officer's surety or sureties for the amount due, with a ten per cent penalty on that amount. The suit shall be instituted by the filing of a complaint for the removal of the fiscal officer with the court of common pleas of the county in which the fiscal officer against whom the complaint is filed resides. The suit shall have precedence over all civil business. The judge or clerk of the court of common pleas shall cause to be served upon the fiscal officer the complaint and a notice of hearing, at least ten days before the hearing upon the complaint. The hearing shall be held not later than thirty days after the date of the filing of the complaint. The judge may suspend the fiscal officer pending the hearing.
(2) The fiscal officer is entitled, with or without counsel, to appear and introduce evidence at the hearing. The fiscal officer is not entitled to representation by the prosecuting attorney and is personally and solely responsible for payment of attorney's fees and expenses incurred, notwithstanding any other provision of the Revised Code. But if a judge or jury rules against removal from office and the complaint is dismissed, the court shall award reasonable attorney's fees to the fiscal officer.
(C) Removal proceedings shall be tried by the judge, unless a jury trial is demanded in writing by the fiscal officer against whom the complaint was filed. If a jury trial is so demanded, the jury shall be composed of twelve individuals who satisfy the qualifications of a juror specified in section 2313.42 of the Revised Code. If nine or more jurors find one or more of the charges in the complaint are true, the jury shall return a finding for the removal of the fiscal officer. If less than nine jurors find that the charges in the complaint are true, the jury shall return a finding that the complaint be dismissed. Any finding of the jury shall be filed with the clerk of the court and shall be made a matter of public record. Removal proceedings tried by a judge shall be a matter of public record, and a full detailed statement of the reason for removal shall be filed with the clerk of the court and also shall be made a matter of public record.
(D)(1) The decision of the court of common pleas for the removal of a fiscal officer may be reviewed on appeal by the court of appeals on questions of law. The transcript of the record and the notice of appeal shall be filed in the court of appeals not more than thirty days after the decision is rendered and the journal entry is made by the court of common pleas. The notice of appeal may be filed only after leave has been granted by the court of appeals for good cause shown at a hearing of which the attorneys for both the fiscal officer and the legislative authority of the municipal corporation that filed the complaint have been notified. The decision of the court of appeals in refusing to allow a notice of appeal to be filed, or in passing upon the merits of the case in the appellate proceedings, is final.
(2) The court of appeals has jurisdiction to hear the case at any place in the judicial district in which the court of appeals may be sitting. The court of appeals shall hear the case not more than thirty court days after the filing of the notice of appeal. If the court of appeals hears the case in any county within its judicial district other than the county in which the fiscal officer against whom the complaint was filed resides, the court of appeals shall transmit its findings with the reasons therefor to the clerk of the court of common pleas of the county in which the fiscal officer resides, with instructions to the clerk to make the findings of the court a matter of record upon the journal of the court in that county.
(3) In all cases before the court of appeals involving the removal of a fiscal officer under this section, the fiscal officer has the right of review or appeal to the supreme court on leave first obtained, and the supreme court shall hear the case not more than thirty court days after leave has been granted. In all other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals.
(E) In removal proceedings instituted under this section, the court of common pleas and the court of appeals may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which a witness resides. Witness fees and other fees in connection with the removal proceedings shall be the same as in civil cases, and the expenses incurred in removal proceedings shall be paid out of the general revenue fund of the municipal corporation.
(F) Immediately following a final decision that the fiscal officer shall be removed from office, the legislative authority of the municipal corporation, upon a majority vote, may appoint a successor, who shall give bond and take the oath of office prescribed for fiscal officers and, so long as otherwise qualified under law, shall serve the remainder of the removed fiscal officer's unexpired term.
(G) Any individual removed from office under this section is not entitled to hold another public office for at least four years following the date of the final decision, and is not entitled to hold another public office until the settlement is made or the money is paid over that was the cause of the suit being instituted under this section.
(H) If a municipal corporation's charter establishes a procedure for the removal of officers from office that conflicts with the removal procedure established by this section, the procedure for the removal of officers in the charter prevails.
Sec. 733.81. (A) As used in this section, "fiscal officer" means the auditor of a municipal corporation, treasurer of a municipal corporation, village fiscal officer, village clerk-treasurer, and, in the case of a municipal corporation that does not have an elected fiscal officer, the appointed head of the municipal corporation's finance department.
(B) To enhance the background and working knowledge of fiscal officers in governmental finance, the auditor of state shall conduct education programs for individuals elected or appointed for the first time to the office of fiscal officer and shall conduct biennial continuing education courses for individuals who continue to hold the office of fiscal officer. The Ohio municipal league also may conduct such education programs and biennial continuing education courses. Similar initial training also may be provided to any fiscal officer who is appointed to fill a vacancy or who is elected at a special election. The auditor of state, in conjunction with the Ohio municipal league, shall determine the manner and content of the education programs and continuing education courses in governmental finance.
(C) Newly elected fiscal officers shall take at least thirteen hours of education programs before taking office. A fiscal officer who participates in a training program held under section 117.44 of the Revised Code may apply those hours taken before taking office to the thirteen hours of education programs required under this division.
(D)(1) Each fiscal officer who is newly elected or newly appointed to a full term of office shall attend and successfully complete at least sixteen hours of continuing education courses during the first year of the fiscal officer's term of office, and complete at least another eight hours of continuing education courses by the end of that term. A fiscal officer shall include at least two hours of ethics and substance abuse training in the total twenty-four hours of required courses. Each fiscal officer who is elected or appointed to a subsequent term of office shall attend and successfully complete twenty-four hours of continuing education courses in each subsequent term of office. To be counted toward the twenty-four hours required by this section, a course shall be approved or conducted by the Ohio municipal league or be conducted by the auditor of state. A fiscal officer who teaches an approved course is entitled to credit for the course in the same manner as if the fiscal officer had attended the course.
(2) A certified public accountant who serves as a fiscal officer may apply to the continuing education hours required by division (D)(1) of this section any hours of continuing education completed under section 4701.11 of the Revised Code after being elected or appointed as a fiscal officer.
(3) A fiscal officer may apply to the continuing education hours required by division (C)(1) of this section any hours of continuing education completed under section 135.22 of the Revised Code after being elected or appointed as a fiscal officer.
(E) The auditor of state, during the regular financial audit of a municipal corporation, shall verify the completion of education programs required under division (C) of this section and continuing education courses required under division (D) of this section for each of the municipal corporation's fiscal officers.
(F) The auditor of state shall issue a certificate of completion to each fiscal officer who completes the education programs and continuing education courses required by this section. The auditor of state shall issue a "failure to complete" notice to any fiscal officer who is required to complete education programs and continuing education courses under this section, but who fails to do so. The notice is for informational purposes only and does not affect any individual's ability to hold the office to which the individual was elected or appointed. If a fiscal officer does not complete the education programs and continuing education courses required by this section, the legislative authority of the municipal corporation may not purchase a policy or policies of professional indemnity insurance for the fiscal officer under section 9.831 of the Revised Code.
(G) Each legislative authority of a municipal corporation shall approve a reasonable amount requested by the fiscal officer to cover the costs the fiscal officer is required to incur to meet the requirements of this section, including registration fees, lodging and meal expenses, and travel expenses.
Sec. 2921.44.  (A) No law enforcement officer shall negligently do any of the following:
(1) Fail to serve a lawful warrant without delay;
(2) Fail to prevent or halt the commission of an offense or to apprehend an offender, when it is in the law enforcement officer's power to do so alone or with available assistance.
(B) No law enforcement, ministerial, or judicial officer shall negligently fail to perform a lawful duty in a criminal case or proceeding.
(C) No officer, having charge of a detention facility, shall negligently do any of the following:
(1) Allow the detention facility to become littered or unsanitary;
(2) Fail to provide persons confined in the detention facility with adequate food, clothing, bedding, shelter, and medical attention;
(3) Fail to control an unruly prisoner, or to prevent intimidation of or physical harm to a prisoner by another;
(4) Allow a prisoner to escape;
(5) Fail to observe any lawful and reasonable regulation for the management of the detention facility.
(D) No public official of the state shall recklessly create a deficiency, incur a liability, or expend a greater sum than is appropriated by the general assembly for the use in any one year of the department, agency, or institution of the state with which the public official is connected.
(E) No public servant shall recklessly fail to perform a duty expressly imposed by law with respect to the public servant's office, or recklessly do any act expressly forbidden by law with respect to the public servant's office.
(F) Whoever violates this section is guilty of dereliction of duty, a misdemeanor felony of the second fifth degree.
(G) A public servant who is a county treasurer, county auditor, township fiscal officer, auditor of a municipal corporation, treasurer of a municipal corporation, village fiscal officer, village clerk-treasurer, school district treasurer, fiscal officer of a community school established under Chapter 3314. of the Revised Code, treasurer of a science, technology, engineering, and mathematics school established under Chapter 3326. of the Revised Code, or fiscal officer of a college-preparatory boarding school established under Chapter 3328. of the Revised Code and is convicted of or pleads guilty to dereliction of duty is disqualified from holding any public office, employment, or position of trust in this state for four years following the date of conviction or of entry of the plea, and is not entitled to hold another public office until any repayment or restitution required by the court is satisfied.
(H) As used in this section, "public servant" includes an the following:
(1) An officer or employee of a contractor as defined in section 9.08 of the Revised Code;
(2) A fiscal officer employed by the operator of a community school established under Chapter 3314. of the Revised Code or by the operator of a college-preparatory boarding school established under Chapter 3328. of the Revised Code.
Sec. 3313.30. (A) If the auditor of state or a public accountant, pursuant to section 117.41 of the Revised Code, declares a school district to be unauditable, the auditor of state shall provide written notification of that declaration to the district and the department of education. The auditor of state also shall post the notification on the auditor of state's web site.
(B) If the district's current treasurer held that position during any year for which the district is unauditable, upon receipt of the notification under division (A) of this section, the district board of education shall suspend the treasurer until the auditor of state or a public accountant has completed an audit of the district. Suspension of the treasurer may be with or without pay, as determined by the district board based on the circumstances that prompted the auditor of state's declaration. The district board shall appoint a person to assume the duties of the treasurer during the period of the suspension. If the appointee is not licensed as a treasurer under section 3301.074 of the Revised Code, the appointee shall be approved by the superintendent of public instruction prior to assuming the duties of the treasurer. The state board of education may take action under section 3319.31 of the Revised Code to suspend, revoke, or limit the license of a treasurer who has been suspended under this division.
(C) Not later than forty-five days after receiving the notification under division (A) of this section, the district board shall provide a written response to the auditor of state. The response shall include the following:
(1) An overview of the process the district board will use to review and understand the circumstances that led to the district becoming unauditable;
(2) A plan for providing the auditor of state with the documentation necessary to complete an audit of the district and for ensuring that all financial documents are available in the future;
(3) The actions the district board will take to ensure that the plan described in division (C)(2) of this section is implemented.
(D) If the school district fails to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition within ninety days after being declared unauditable, the auditor of state, in addition to requesting legal action under sections 117.41 and 117.42 of the Revised Code, shall notify the district and the department of the district's failure. If the auditor of state or a public accountant subsequently is able to complete a financial audit of the district, the auditor of state shall notify the district and the department that the audit has been completed.
(E) Notwithstanding any provision to the contrary in Chapter 3317. of the Revised Code or any other provision of law, upon notification by the auditor of state under division (D) of this section that the district has failed to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition, the department shall immediately cease all payments to the district under Chapter 3317. of the Revised Code and any other provision of law. Upon subsequent notification from the auditor of state under that division that the auditor of state or a public accountant was able to complete a financial audit of the district, the department shall release all funds withheld from the district under this section.
Sec. 3314.011.  (A) Every community school established under this chapter shall have a designated fiscal officer. The auditor of state may require by rule that the fiscal officer of any community school, before entering upon duties as fiscal officer of the school, execute a bond in an amount and with surety to be approved by the governing authority of the school, payable to the state, conditioned for the faithful performance of all the official duties required of the fiscal officer. Any such bond shall be deposited with the governing authority of the school, and a copy thereof, certified by the governing authority, shall be filed with the county auditor.
(B) Prior to assuming the duties of fiscal officer, the fiscal officer designated under this section shall be licensed as a treasurer under section 3301.074 of the Revised Code or shall complete not less than sixteen hours of continuing education classes, courses, or workshops in the area of school accounting as approved by the sponsor of the community school. Any fiscal officer who is not licensed under section 3301.074 of the Revised Code shall complete an additional twenty-four hours of continuing education classes, courses, or workshops in the area of school accounting as approved by the sponsor of the school within one year after assuming the duties of fiscal officer of the school. However, any such classes, courses, or workshops in excess of sixteen hours completed by the fiscal officer prior to assuming the duties of fiscal officer shall count toward the additional twenty-four hours of continuing education required under this section. In each subsequent year, any fiscal officer who is not licensed under section 3301.074 of the Revised Code shall complete eight hours of continuing education classes, courses, or workshops in the area of school accounting as approved by the sponsor of the school, except that any person serving as fiscal officer of a community school on the effective date of this amendment who is not licensed as a treasurer under section 3301.074 of the Revised Code shall obtain such licensure not later than one year after that effective date. No community school shall allow a person to serve as fiscal officer who is not licensed as required by this division.
Sec. 3314.023. In order to provide monitoring and technical assistance, a representative of the sponsor of a community school shall meet with the governing authority or treasurer fiscal officer of the school and shall review the financial and enrollment records of the school at least once every month. Not later than ten days after each review, the sponsor shall provide the governing authority and fiscal officer with a written report regarding the review.
Sec. 3314.50.  No community school shall, on or after the effective date of this section, open for operation in any school year unless the governing authority of the school has posted a surety bond in the amount of fifty thousand dollars with the auditor of state. In lieu of a surety bond, a community school governing authority may deposit with the auditor of state cash in the amount of fifty thousand dollars as a guarantee of payment. The bond or cash guarantee shall be used, in the event the school closes, to pay the auditor of state any moneys owed by the school for the costs of audits conducted by the auditor of state or a public accountant under Chapter 117. of the Revised Code.
Immediately upon the filing of a surety bond or the deposit of cash, the auditor of state shall deliver the bond or cash to the treasurer of state, who shall hold it in trust for the purposes prescribed in this section. The treasurer of state shall be responsible for the safekeeping of all surety bonds filed or cash deposited under this section. The auditor of state shall notify the department of education when the school's governing authority has filed the bond or deposited the cash guarantee.
When the auditor of state finds that a community school has closed and cannot pay for the costs of audits, the auditor of state shall declare the surety bond or cash deposit forfeited. The auditor of state shall certify the amount of forfeiture to the treasurer of state who shall pay money from the named surety or from the school's cash deposit as needed to reimburse the auditor of state or public accountant for costs incurred in conducting audits of the school.
Sec. 267.50.70 3314.51 UNAUDITABLE COMMUNITY SCHOOL (A)
(A) If the Auditor auditor of State state or a public accountant, pursuant to section 117.41 of the Revised Code, declares a community school established under Chapter 3314. of the Revised Code to be unauditable, the Auditor auditor of State state shall provide written notification of that declaration to the school, the school's sponsor, and the Department department of Education education. The Auditor auditor of State state also shall post the notification on the Auditor auditor of State's state's web site.
(B) If the community school's current fiscal officer held that position during any year for which the school is unauditable, upon receipt of the notification under division (A) of this section, the governing authority of the school shall suspend the fiscal officer until the auditor of state or a public accountant has completed an audit of the school, except that if the school has an operator and the operator employs the fiscal officer, the operator shall suspend the fiscal officer for that period. Suspension of the fiscal officer may be with or without pay, as determined by the entity imposing the suspension based on the circumstances that prompted the auditor of state's declaration. The entity imposing the suspension shall appoint a person to assume the duties of the fiscal officer during the period of the suspension. If the appointee is not licensed as a treasurer under section 3301.074 of the Revised Code, the appointee shall be approved by the superintendent of public instruction prior to assuming the duties of the fiscal officer. The state board of education may take action under section 3319.31 of the Revised Code to suspend, revoke, or limit the license of a fiscal officer who has been suspended under this division.
(C) Notwithstanding any provision to the contrary in Chapter 3314. of the Revised Code this chapter or any other provision of law, a the sponsor of a the community school that is notified by the Auditor of State under division (A) of this section that a community school it sponsors is unauditable shall not enter into contracts with any additional community schools under section 3314.03 of the Revised Code until between ninety days after the date of the declaration under division (A) of this section and the date the Auditor auditor of State state or a public accountant has completed a financial audit of that the school.
(C)(D) Not later than forty-five days after receiving the notification by the Auditor of State under division (A) of this section that a community school is unauditable, the sponsor of the community school shall provide a written response to the Auditor auditor of State state. The sponsor shall provide a copy of the response to the community school. The response shall include the following:
(1) An overview of the process the sponsor will use to review and understand the circumstances that led to the community school becoming unauditable;
(2) A plan for providing the Auditor auditor of State state with the documentation necessary to complete an audit of the community school and for ensuring that all financial documents are available in the future;
(3) The actions the sponsor will take to ensure that the plan described in division (C)(D)(2) of this section is implemented.
(D)(E) If a the community school fails to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition within ninety days after being declared unauditable, the Auditor auditor of State state, in addition to requesting legal action under sections 117.41 and 117.42 of the Revised Code, shall notify the Department school's sponsor and the department of the school's failure. If the Auditor auditor of State state or a public accountant subsequently is able to complete a financial audit of the school, the Auditor auditor of State state shall notify the Department school's sponsor and the department that the audit has been completed.
(E)(F) Notwithstanding any provision to the contrary in Chapter 3314. of the Revised Code this chapter or any other provision of law, upon notification by the Auditor auditor of State state under division (D)(E) of this section that a the community school has failed to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition following a declaration that the school is unauditable, the Department department shall immediately cease all payments to the school under Chapter 3314. of the Revised Code this chapter and any other provision of law. Upon subsequent notification from the Auditor auditor of State state under that division that the Auditor auditor of State state or a public accountant was able to complete a financial audit of the community school, the Department department shall release all funds withheld from the school under this section.
Sec. 3326.211. (A) If the auditor of state or a public accountant, pursuant to section 117.41 of the Revised Code, declares a science, technology, engineering, and mathematics school to be unauditable, the auditor of state shall provide written notification of that declaration to the school and the department of education. The auditor of state also shall post the notification on the auditor of state's web site.
(B) If the STEM school's current treasurer held that position during any year for which the school is unauditable, upon receipt of the notification under division (A) of this section, the governing body of the school shall suspend the treasurer until the auditor of state or a public accountant has completed an audit of the school. Suspension of the treasurer may be with or without pay, as determined by the governing body based on the circumstances that prompted the auditor of state's declaration. The governing body shall appoint a person to assume the duties of the treasurer during the period of the suspension. If the appointee is not licensed as a treasurer under section 3301.074 of the Revised Code, the appointee shall be approved by the superintendent of public instruction prior to assuming the duties of the treasurer. The state board of education may take action under section 3319.31 of the Revised Code to suspend, revoke, or limit the license of a treasurer who has been suspended under this division.
(C) Not later than forty-five days after receiving the notification under division (A) of this section, the governing body of the STEM school shall provide a written response to the auditor of state. The response shall include the following:
(1) An overview of the process the governing body will use to review and understand the circumstances that led to the school becoming unauditable;
(2) A plan for providing the auditor of state with the documentation necessary to complete an audit of the school and for ensuring that all financial documents are available in the future;
(3) The actions the governing body will take to ensure that the plan described in division (C)(2) of this section is implemented.
(D) If the STEM school fails to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition within ninety days after being declared unauditable, the auditor of state, in addition to requesting legal action under sections 117.41 and 117.42 of the Revised Code, shall notify the school and the department of the school's failure. If the auditor of state or a public accountant subsequently is able to complete a financial audit of the school, the auditor of state shall notify the school and the department that the audit has been completed.
(E) Notwithstanding any provision to the contrary in this chapter or any other provision of law, upon notification by the auditor of state under division (D) of this section that the STEM school has failed to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition, the department shall immediately cease all payments to the school under this chapter and any other provision of law. Upon subsequent notification from the auditor of state under that division that the auditor of state or a public accountant was able to complete a financial audit of the school, the department shall release all funds withheld from the school under this section.
Sec. 3328.16.  (A) Each college-preparatory boarding school established under this chapter shall have a designated fiscal officer. The auditor of state may require by rule that the fiscal officer of any college-preparatory boarding school, before entering upon duties as fiscal officer, execute a bond in an amount and with surety to be approved by the school's board of trustees, payable to the state, conditioned for the faithful performance of all the official duties required of the fiscal officer. Any such bond shall be deposited with the school's board of trustees, and a copy of the bond shall be certified by the board and filed with the county auditor.
(B) Prior to assuming the duties of fiscal officer, the fiscal officer designated under this section shall be licensed as a treasurer under section 3301.074 of the Revised Code. No college-preparatory boarding school shall allow a person to serve as fiscal officer who is not licensed as required by this division.
Sec. 3328.37.  (A) If the auditor of state or a public accountant, pursuant to section 117.41 of the Revised Code, declares a college-preparatory boarding school established under this chapter to be unauditable, the auditor of state shall provide written notification of that declaration to the school and the department of education. The auditor of state also shall post the notification on the auditor of state's web site.
(B) If the college-preparatory boarding school's current fiscal officer held that position during any year for which the school is unauditable, upon receipt of the notification under division (A) of this section, the board of trustees of the school shall suspend the fiscal officer until the auditor of state or a public accountant has completed an audit of the school, except that if the fiscal officer is employed by the school's operator, the operator shall suspend the fiscal officer for that period. Suspension of the fiscal officer may be with or without pay, as determined by the entity imposing the suspension based on the circumstances that prompted the auditor of state's declaration. The entity imposing the suspension shall appoint a person to assume the duties of the fiscal officer during the period of the suspension. If the appointee is not licensed as a treasurer under section 3301.074 of the Revised Code, the appointee shall be approved by the superintendent of public instruction prior to assuming the duties of the fiscal officer. The state board of education may take action under section 3319.31 of the Revised Code to suspend, revoke, or limit the license of a fiscal officer who has been suspended under this division.
(C) Not later than forty-five days after receiving the notification under division (A) of this section, the board of trustees of the college-preparatory boarding school shall provide a written response to the auditor of state. The response shall include the following:
(1) An overview of the process the board will use to review and understand the circumstances that led to the school becoming unauditable;
(2) A plan for providing the auditor of state with the documentation necessary to complete an audit of the school and for ensuring that all financial documents are available in the future;
(3) The actions the board will take to ensure that the plan described in division (C)(2) of this section is implemented.
(D) If the college-preparatory boarding school fails to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition within ninety days after being declared unauditable, the auditor of state, in addition to requesting legal action under sections 117.41 and 117.42 of the Revised Code, shall notify the school and the department of the school's failure. If the auditor of state or a public accountant subsequently is able to complete a financial audit of the school, the auditor of state shall notify the school and the department that the audit has been completed.
(E) Notwithstanding any provision to the contrary in this chapter or any other provision of law, upon notification by the auditor of state under division (D) of this section that the college-preparatory boarding school has failed to make reasonable efforts and continuing progress to bring its accounts, records, files, or reports into an auditable condition, the department shall immediately cease all payments to the school under this chapter and any other provision of law. Upon subsequent notification from the auditor of state under that division that the auditor of state or a public accountant was able to complete a financial audit of the school, the department shall release all funds withheld from the school under this section.
Section 2.  (A) That existing sections 305.03, 319.04, 319.26, 321.37, 321.38, 321.46, 2921.44, 3314.011, and 3314.023 and section 319.25 of the Revised Code are hereby repealed.
(B) That existing Section 267.50.70 of Am. Sub. H.B. 153 of the 129th General Assembly is hereby repealed.
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