Bill Text: OH HB389 | 2009-2010 | 128th General Assembly | Comm Sub

---

Bill Title: To authorize county auditors and boards of township trustees to adopt a direct deposit payroll policy, and to authorize counties to increase the amount credited to "rainy day" reserve balance accounts to one-sixth of the expenditures made in the preceding fiscal year from the fund in which the reserve balance account is established.

Spectrum: Moderate Partisan Bill (Republican 11-2)

Status: (Introduced - Dead) 2010-12-08 - Committee Report - S [HB389 Detail]

Download: Ohio-2009-HB389-Comm_Sub.html

---

As Reported by the House Local Government and Public Administration Committee

128th General Assembly Regular Session 2009-2010

Sub. H. B. No. 389

Representative Huffman 

Cosponsors: Representatives McClain, Blair, Adams, J., Derickson, Grossman, Okey, Ruhl, Adams, R., Hite, McGregor, Harris, Uecker 

---

A BILL

To amend sections 9.37 and 5705.13 of the Revised

1

Code to authorize county auditors and boards of

2

township trustees to adopt a direct deposit

3

payroll policy, and to authorize counties to

4

increase the amount credited to "rainy day"

5

reserve balance accounts to one-sixth of the

6

expenditures made in the preceding fiscal year

7

from the fund in which the reserve balance account

8

is established.

9

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

Section 1. That sections 9.37 and 5705.13 of the Revised Code	10
be amended to read as follows:	11

Sec. 9.37.  (A) As used in this section, "public official"	12
means any elected or appointed officer, employee, or agent of the	13
state, any state institution of higher education, any political	14
subdivision, board, commission, bureau, or other public body	15
established by law. "State institution of higher education" means	16
any state university or college as defined in division (A)(1) of	17
section 3345.12 of the Revised Code, community college, state	18
community college, university branch, or technical college.	19

(B) Except as provided in divisiondivisions (F) and (G) of	20
this section, any public official may make by direct deposit of	21
funds by electronic transfer, if the payee provides a written	22
authorization designating a financial institution and an account	23
number to which the payment is to be credited, any payment such	24
public official is permitted or required by law in the performance	25
of official duties to make by issuing a check or warrant.	26

(C) Such public official may contract with a financial	27
institution for the services necessary to make direct deposits and	28
draw lump-sum checks or warrants payable to that institution in	29
the amount of the payments to be transferred.	30

(D) Before making any direct deposit as authorized under this	31
section, the public official shall ascertain that the account from	32
which the payment is to be made contains sufficient funds to cover	33
the amount of the payment.	34

(E) If the issuance of checks and warrants by a public	35
official requires authorization by a governing board, commission,	36
bureau, or other public body having jurisdiction over the public	37
official, the public official may only make direct deposits and	38
contracts under this section pursuant to a resolution of	39
authorization duly adopted by such governing board, commission,	40
bureau, or other public body.	41

(F) Pursuant to sections 307.55, 319.16, and 321.15 of the	42
Revised Code, a county auditor may issue, and a county treasurer	43
may redeem, electronic warrants authorizing direct deposit for	44
payment of county obligations in accordance with rules adopted by	45
the director of budget and management pursuant to Chapter 119. of	46
the Revised Code.	47

(G) A county auditor or a board of township trustees, as the	48
case may be, may adopt a direct deposit payroll policy under which	49
all county employees or all township employees, as the case may	50
be, provide a written authorization designating a financial	51
institution and an account number to which payment of the	52
employee's compensation shall be credited under the county's or	53
township's direct deposit payroll policy. The direct deposit	54
payroll policy adopted by a county auditor or a board of township	55
trustees may exempt from the direct deposit requirement those	56
county or township employees who cannot provide an account number,	57
or for other reasons specified in the policy. The written	58
authorization is not a public record under section 149.43 of the	59
Revised Code.	60

Sec. 5705.13.  (A) A taxing authority of a subdivision, by	61
resolution or ordinance, may establish reserve balance accounts to	62
accumulate currently available resources for the following	63
purposes:	64

(1) To stabilize subdivision budgets against cyclical changes	65
in revenues and expenditures;	66

(2) Except as otherwise provided by this section, to provide	67
for the payment of claims and deductibles under aan individual or	68
joint self-insurance program for the subdivision, if the	69
subdivision is permitted by law to establish such a programunder	70
section 9.833, 2744.08, or 2744.081 of the Revised Code;	71

(3) To provide for the payment of claims, assessments, and	72
deductibles under a self-insurance program, individual	73
retrospective ratings plan, group rating plan, group retrospective	74
rating plan, medical only program, deductible plan, or large	75
deductible plan for workers' compensation.	76

The ordinance or resolution establishing a reserve balance	77
account shall state the purpose for which the account is	78
established, the fund in which the account is to be established,	79
and the total amount of money to be reserved in the account.	80

A subdivision that participates in a risk-sharing pool, by	81
which governments pool risks and funds and share in the costs of	82
losses, shall not establish a reserve balance account to provide	83
self-insurance for the subdivision.	84

Not more than one reserve balance account may be established	85
for each of the purposes permitted under divisions (A)(2) and (3)	86
of this section. Money to the credit of a reserve balance account	87
may be expended only for the purpose for which the account was	88
established.	89

A reserve balance account established for the purpose	90
described in division (A)(1) of this section may be established in	91
the general fund or in one or more special funds for operating	92
purposes of the subdivision. The amount of money to be reserved in	93
such an account in any fiscal year shall not exceed five per cent	94
of the revenue credited in the preceding fiscal year to the fund	95
in which the account is established, or, in the case of a reserve	96
balance account of a county, the greater of that amount or	97
one-sixth of the expenditures during the preceding fiscal year	98
from the fund in which the account is established. Subject to	99
division (G) of section 5705.29 of the Revised Code, any reserve	100
balance in an account established under division (A)(1) of this	101
section shall not be considered part of the unencumbered balance	102
or revenue of the subdivision under division (A) of section	103
5705.35 or division (A)(1) of section 5705.36 of the Revised Code.	104

At any time, a taxing authority of a subdivision, by	105
resolution or ordinance, may reduce or eliminate the reserve	106
balance in a reserve balance account established for the purpose	107
described in division (A)(1) of this section.	108

A reserve balance account established for the purpose	109
described in division (A)(2) or (3) of this section shall be	110
established in the general fund of the subdivision or by the	111
establishment of a separate internal service fund established to	112
account for the operation of thean individual or joint	113
self-insurance or retrospective ratings plan program described in	114
division (A)(2) of this section or a workers' compensation program	115
or plan described in division (A)(3) of this section, and shall be	116
based on sound actuarial principles. The total amount of money in	117
a reserve balance account for self-insurance may be expressed in	118
dollars or as the amount determined to represent an adequate	119
reserve according to sound actuarial principles.	120

A taxing authority of a subdivision, by resolution or	121
ordinance, may rescind a reserve balance account established under	122
this division. If a reserve balance account is rescinded, money	123
that has accumulated in the account shall be transferred to the	124
fund or funds from which the money originally was transferred.	125

(B) A taxing authority of a subdivision, by resolution or	126
ordinance, may establish a special revenue fund for the purpose of	127
accumulating resources for the payment of accumulated sick leave	128
and vacation leave, and for payments in lieu of taking	129
compensatory time off, upon the termination of employment or the	130
retirement of officers and employees of the subdivision. The	131
special revenue fund may also accumulate resources for payment of	132
salaries during any fiscal year when the number of pay periods	133
exceeds the usual and customary number of pay periods.	134
Notwithstanding sections 5705.14, 5705.15, and 5705.16 of the	135
Revised Code, the taxing authority, by resolution or ordinance,	136
may transfer money to the special revenue fund from any other fund	137
of the subdivision from which such payments may lawfully be made.	138
The taxing authority, by resolution or ordinance, may rescind a	139
special revenue fund established under this division. If a special	140
revenue fund is rescinded, money that has accumulated in the fund	141
shall be transferred to the fund or funds from which the money	142
originally was transferred.	143

(C) A taxing authority of a subdivision, by resolution or	144
ordinance, may establish a capital projects fund for the purpose	145
of accumulating resources for the acquisition, construction, or	146
improvement of fixed assets of the subdivision. For the purposes	147
of this section, "fixed assets" includes motor vehicles. More than	148
one capital projects fund may be established and may exist at any	149
time. The ordinance or resolution shall identify the source of the	150
money to be used to acquire, construct, or improve the fixed	151
assets identified in the resolution or ordinance, the amount of	152
money to be accumulated for that purpose, the period of time over	153
which that amount is to be accumulated, and the fixed assets that	154
the taxing authority intends to acquire, construct, or improve	155
with the money to be accumulated in the fund.	156

A taxing authority of a subdivision shall not accumulate	157
money in a capital projects fund for more than ten years after the	158
resolution or ordinance establishing the fund is adopted. If the	159
subdivision has not entered into a contract for the acquisition,	160
construction, or improvement of fixed assets for which money was	161
accumulated in such a fund before the end of that ten-year period,	162
the fiscal officer of the subdivision shall transfer all money in	163
the fund to the fund or funds from which that money originally was	164
transferred or the fund that originally was intended to receive	165
the money.	166

A taxing authority of a subdivision, by resolution or	167
ordinance, may rescind a capital projects fund. If a capital	168
projects fund is rescinded, money that has accumulated in the fund	169
shall be transferred to the fund or funds from which the money	170
originally was transferred.	171

Notwithstanding sections 5705.14, 5705.15, and 5705.16 of the	172
Revised Code, the taxing authority of a subdivision, by resolution	173
or ordinance, may transfer money to the capital projects fund from	174
any other fund of the subdivision that may lawfully be used for	175
the purpose of acquiring, constructing, or improving the fixed	176
assets identified in the resolution or ordinance.	177

Section 2. That existing sections 9.37 and 5705.13 of the	178
Revised Code are hereby repealed.	179