As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 10

Representative Hagan, C. 

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A BILL

To amend sections 305.03, 319.04, 319.26, 321.37,

1

321.38, 321.46, 2921.44, 3314.011, and 3314.023;

2

to enact sections 9.831, 117.411, 507.12, 507.15,

3

733.78, 733.81, 3313.30, 3314.50, 3326.211,

4

3328.16, and 3328.37; and to repeal section 319.25

5

of the Revised Code; to amend Section 267.50.70 of

6

Am. Sub. H.B. 153 of the 129th General Assembly;

7

and to amend Section 267.50.70 of Am. Sub. H.B.

8

153 of the 129th General Assembly for the purpose

9

of changing its number to section 3314.51 of the

10

Revised Code to establish education programs and

11

continuing education requirements for the fiscal

12

officers of townships and municipal corporations,

13

to establish procedures for removing those fiscal

14

officers, county treasurers, and county auditors

15

from office, and to create fiscal accountability

16

requirements for public schools, counties,

17

municipal corporations, and townships.

18

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

Section 1. That sections 305.03, 319.04, 319.26, 321.37,	19
321.38, 321.46, 2921.44, 3314.011, and 3314.023 be amended;	20
sections 9.831, 117.411, 507.12, 507.15, 733.78, 733.81, 3313.30,	21
3314.50, 3326.211, 3328.16, and 3328.37 of the Revised Code be	22
enacted; and Section 267.50.70 of Am. Sub. H.B. 153 of the 129th	23
General Assembly be amended and renumbered as section 3314.51 of	24
the Revised Code to read as follows:	25

Sec. 9.831.  (A) As used in this section:

26

(1) "Political subdivision" means a county, municipal	27
corporation, or township.	28

(2) "Fiscal officer" means a county auditor, county	29
treasurer, township fiscal officer, village fiscal officer,	30
village clerk-treasurer, auditor of a municipal corporation, or	31
treasurer of a municipal corporation.	32

(B) The legislative authority of a political subdivision may	33
purchase a policy or policies of professional indemnity insurance	34
to protect the political subdivision against claims not otherwise	35
covered under general liability insurance policies that are	36
related to the performance of the fiscal officer's duties.	37

Sec. 117.411. (A) As used in this section, "legislative	38
authority" means, for a county, the board of county commissioners;	39
for a municipal corporation, the legislative authority of the	40
municipal corporation; and for a township, the board of township	41
trustees.	42

(B) If the public office of a county, municipal corporation,	43
or township has been declared unauditable under section 117.41 of	44
the Revised Code, the auditor of state shall provide written	45
notice of that declaration to the legislative authority of the	46
county, municipal corporation, or township. The auditor of state	47
also shall post the notice on the auditor of state's web site.	48

(C) Not later than forty-five days after receiving the	49
notice, the legislative authority shall provide a written response	50
to the auditor of state. The response shall include all of the	51
following:	52

(1) An overview of the process the legislative authority will	53
use to review and understand the circumstances that led to the	54
county, municipal corporation, or township becoming unauditable;	55

(2) A plan for providing to the auditor of state	56
documentation necessary to complete an audit of the county,	57
municipal corporation, or township and for ensuring that all	58
financial documents are available in the future; and	59

(3) The actions the legislative authority will take to ensure	60
that the plan described in division (C)(2) of this section is	61
implemented.	62

(D)(1) If the public office of a county, municipal	63
corporation, or township fails to make reasonable efforts and	64
continuing progress to bring its accounts, records, files, or	65
reports into an auditable condition within ninety days after being	66
declared unauditable, the auditor of state, in addition to	67
requesting legal action under sections 117.41 and 117.42 of the	68
Revised Code, shall notify the office of budget and management and	69
any other state agency from which the public office receives state	70
funding of the failure.	71

(2) If the auditor of state or a public accountant	72
subsequently is able to complete a financial audit of the public	73
office, the auditor of state shall notify the office of budget and	74
management and any other state agency from which the public office	75
receives state funding that the audit has been completed.	76

(E) Notwithstanding any provision to the contrary in the	77
Revised Code, upon notification by the auditor of state under	78
division (D)(1) of this section that the public office of a	79
county, municipal corporation, or township has failed to make	80
reasonable efforts and continuing progress to bring its accounts,	81
records, files, or reports into an auditable condition following a	82
declaration that the public office is unauditable, the office of	83
budget and management and any other state agency that received the	84
notice shall immediately cease all state funding for that public	85
office, other than benefit assistance to individuals, and shall	86
withhold the state funding until receiving subsequent notification	87
from the auditor of state under division (D)(2) of this section	88
that the auditor of state or a public accountant was able to	89
complete a financial audit of the public office.	90

Sec. 305.03.  (A)(1) Whenever any county officer, except the	91
county auditor or county treasurer, fails to perform the duties of	92
office for ninety consecutive days, except in case of sickness or	93
injury as provided in divisions (B) and (C) of this section, the	94
office shall be deemed vacant.	95

(2) Whenever any county auditor or county treasurer fails to	96
perform the duties of office for thirty consecutive days, except	97
in case of sickness or injury as provided in divisions (B) and (C)	98
of this section, the office shall be deemed vacant.	99

(B) Whenever any county officer is absent because of sickness	100
or injury, the officer shall cause to be filed with the board of	101
county commissioners a physician's certificate of the officer's	102
sickness or injury. If suchthe certificate is not filed with the	103
board within ten days after the expiration of thirty consecutive	104
days, in the case of a county auditor or county treasurer, or	105
within ten days after the expiration of ninety consecutive days of	106
absence, in the case of all other county officers, the office	107
shall be deemed vacant.	108

(C) Whenever a county officer files a physician's certificate	109
under division (B) of this section, but continues to be absent for	110
an additional thirty days commencing immediately after the last	111
day on which this certificate may be filed under division (B) of	112
this section, the office shall be deemed vacant.	113

(D) If at any time two county commissioners in a county are	114
absent and have filed a physician's certificate under division (B)	115
of this section, the county coroner, in addition to performing the	116
duties of coroner, shall serve as county commissioner until at	117
least one of the absent commissioners returns to office or until	118
the office of at least one of the absent commissioners is deemed	119
vacant under this section and the vacancy is filled. If the	120
coroner so requests, the coroner shall be paid a per diem rate for	121
the coroner's service as a commissioner. That per diem rate shall	122
be the annual salary specified by law for a county commissioner of	123
that county whose term of office began in the same year as the	124
coroner's term of office began, divided by the number of days in	125
the year.	126

While the coroner is serving as a county commissioner, the	127
coroner shall be considered an acting county commissioner and	128
shall perform the duties of the office of county commissioner	129
until at least one of the absent commissioners returns to office	130
or until the office of at least one of the absent commissioners is	131
deemed vacant. Before assuming the office of acting county	132
commissioner, the coroner shall take an oath of office as provided	133
in sections 3.22 and 3.23 of the Revised Code. The coroner's	134
service as an acting county commissioner does not constitute the	135
holding of an incompatible public office or employment in	136
violation of any statutory or common law prohibition against the	137
simultaneous holding of more than one public officeroffice or	138
employment.	139

The coroner shall give a new bond in the same amount and	140
signed and approved as provided in section 305.04 of the Revised	141
Code. The bond shall be conditioned for the faithful discharge of	142
the coroner's duties as acting county commissioner and for the	143
payment of any loss or damage that the county may sustain by	144
reason of the coroner's failure in those duties. The bond, along	145
with the oath of office and approval of the probate judge indorsed	146
on it, shall be deposited and paid for as provided for the bonds	147
in section 305.04 of the Revised Code.	148

(E) Any vacancy declared under this section shall be filled	149
in the manner provided by section 305.02 of the Revised Code.	150

(F) This section shall not apply to a county officer while in	151
the active military service of the United States.	152

Sec. 319.04.  (A) Each county auditor who is elected to a	153
full term of office shall attend and successfully complete at	154
least sixteen hours of continuing education courses during the	155
first year of the auditor's term of office, and complete at least	156
another eight hours of such courses by the end of that term. Each	157
such county auditor shall include at least two hours of ethics and	158
substance-abuse training in the total twenty-four hours of	159
required courses. To be counted toward the twenty-four hours	160
required by this section, a course must be approved by the county	161
auditors association of Ohio. Any county auditor who teaches an	162
approved course shall be entitled to credit for the course in the	163
same manner as if the county auditor had attended the course.	164

That association shall record and, upon request, verify the	165
completion of required course work for each county auditor, and	166
issue a statement to each county auditor of the number of hours of	167
continuing education the county auditor has successfully	168
completed. Each year the association shall send a list of the	169
continuing education courses, and the number of hours each county	170
auditor has successfully completed, to the auditor of state and	171
the tax commissioner, and shall provide a copy of this list to any	172
other individual who requests it.	173

The associationauditor of state shall issue a certificate of	174
completion to each county auditor who completes the continuing	175
education courses required by this section. The auditor of state	176
shall issue a "notice of failure" to any county auditor required	177
to complete continuing education courses under this section who	178
fails to successfully complete at least sixteen hours of	179
continuing education courses during the first year of the county	180
auditor's term of office or to complete a total of at least	181
twenty-four hours of such courses by the end of that term. This	182
notice is for informational purposes only and does not affect any	183
individual's ability to hold the office of county auditor. If a	184
county auditor does not complete the continuing education courses	185
required by this section, the board of county commissioners may	186
not purchase a policy or policies of professional indemnity	187
insurance for the county auditor under section 9.831 of the	188
Revised Code.	189

(B) Each board of county commissioners shall approve, from	190
money appropriated to the county auditor, a reasonable amount	191
requested by the county auditor of its county to cover the costs	192
the county auditor must incur to meet the requirements of division	193
(A) of this section, including registration fees, lodging and meal	194
expenses, and travel expenses.	195

Sec. 319.26. When the board of county commissioners suspends	196
(A)(1) If a county auditor from the performance of his duties, as	197
provided in section 319.25 of the Revised Code, it shall	198
immediately cause a prosecution to be instituted against him. If	199
the grand jury within four months of the date of the suspension	200
fails to find and present an indictment against such auditor, or	201
if an indictment is found and upon trial he is acquitted, such	202
auditor shall be restored to the possession of his office and of	203
the rights, duties, and obligations of such office. The person	204
appointed as provided in section 319.25 of the Revised Code to	205
perform the duties of the auditor shall vacate and cease to have	206
any rights in such office, through misfeasance, malfeasance, or	207
nonfeasance, fails to make a settlement or to pay over money as	208
prescribed by law, the county treasurer or board of county	209
commissioners shall cause suit to be instituted against the county	210
auditor and against the auditor's surety or sureties for the	211
amount due, with a ten per cent penalty on that amount. The suit	212
shall be instituted by the filing of a complaint for the removal	213
of the county auditor with the court of common pleas of the county	214
in which the county auditor against whom the complaint is filed	215
resides. The suit shall have precedence over all civil business.	216
The judge or clerk of the court of common pleas shall cause to be	217
served upon the county auditor the complaint and a notice of	218
hearing, at least ten days before the hearing upon the complaint.	219
The hearing shall be held not later than thirty days after the	220
date of the filing of the complaint. The judge may suspend the	221
county auditor pending the hearing.	222

(2) The county auditor is entitled, with or without counsel,	223
to appear and introduce evidence at the hearing. The county	224
auditor is not entitled to representation by the prosecuting	225
attorney and is personally and solely responsible for payment of	226
attorney's fees and expenses incurred, notwithstanding any other	227
provision of the Revised Code. But if a judge or jury rules	228
against removal from office and the complaint is dismissed, the	229
court shall award reasonable attorney's fees to the county	230
auditor.	231

(B) Removal proceedings shall be tried by the judge, unless a	232
jury trial is demanded in writing by the county auditor against	233
whom the complaint was filed. If a jury trial is so demanded, the	234
jury shall be composed of twelve individuals who satisfy the	235
qualifications of a juror specified in section 2313.42 of the	236
Revised Code. If nine or more jurors find one or more of the	237
charges in the complaint are true, the jury shall return a finding	238
for the removal of the county auditor. If less than nine jurors	239
find that the charges in the complaint are true, the jury shall	240
return a finding that the complaint be dismissed. Any finding of	241
the jury shall be filed with the clerk of the court and shall be	242
made a matter of public record. Removal proceedings tried by a	243
judge shall be a matter of public record, and a full detailed	244
statement of the reason for removal shall be filed with the clerk	245
of the court and also shall be made a matter of public record.	246

(C)(1) The decision of the court of common pleas for the	247
removal of a county auditor may be reviewed on appeal by the court	248
of appeals on questions of law. The transcript of the record and	249
the notice of appeal shall be filed in the court of appeals not	250
more than thirty days after the decision is rendered and the	251
journal entry is made by the court of common pleas. The notice of	252
appeal may be filed only after leave has been granted by the court	253
of appeals for good cause shown at a hearing of which the	254
attorneys for both the county auditor and the board of county	255
commissioners or county treasurer that filed the complaint have	256
been notified. The decision of the court of appeals in refusing to	257
allow a notice of appeal to be filed, or in passing upon the	258
merits of the case in the appellate proceedings, is final.	259

(2) The court of appeals has jurisdiction to hear the case at	260
any place in the judicial district in which the court of appeals	261
may be sitting. The court of appeals shall hear the case not more	262
than thirty court days after the filing of the notice of appeal.	263
If the court of appeals hears the case in any county within its	264
judicial district other than the county in which the county	265
auditor against whom the complaint was filed resides, the court of	266
appeals shall transmit its findings with the reasons therefor to	267
the clerk of the court of common pleas of the county in which the	268
county auditor resides, with instructions to the clerk to make the	269
findings of the court a matter of record upon the journal of the	270
court in that county.	271

(3) In all cases before the court of appeals involving the	272
removal of a county auditor under this section, the county auditor	273
has the right of review or appeal to the supreme court on leave	274
first obtained, and the supreme court shall hear the case not more	275
than thirty court days after leave has been granted. In all other	276
respects, the hearing shall follow the regular procedure in	277
appealable cases that originate in the court of appeals.	278

(D) In removal proceedings instituted under this section, the	279
court of common pleas and the court of appeals may subpoena	280
witnesses and compel their attendance in the same manner as in	281
civil cases. Process shall be served by the sheriff of the county	282
in which a witness resides. Witness fees and other fees in	283
connection with the removal proceedings shall be the same as in	284
civil cases, and the expenses incurred in removal proceedings	285
shall be paid out of the county general revenue fund.	286

(E) Immediately following a final decision that the county	287
auditor shall be removed from office, the vacancy shall be filled	288
as provided in section 305.02 of the Revised Code.	289

(F) Any individual removed from office under this section is	290
not entitled to hold another public office for at least four years	291
following the date of the final decision, and is not entitled to	292
hold another public office until the settlement is made or the	293
money is paid over that was the cause of the suit being instituted	294
under this section.	295

Sec. 321.37.  If the county treasurer, through misfeasance,	296
malfeasance, or nonfeasance, fails to make a settlement or to pay	297
over money as prescribed by law, the county auditor or board of	298
county commissioners shall cause suit to be instituted against	299
such treasurer and histhe treasurer's surety or sureties for the	300
amount due, with a ten per cent penalty on such amount, which suit	301
shall have precedence of over all civil business. The suit shall	302
be instituted by the filing of a complaint for removal of the	303
county treasurer with the court of common pleas of the county in	304
which the county treasurer against whom the complaint is filed	305
resides.	306

Sec. 321.38. Immediately on(A)(1) On the institution of the	307
a suit mentioned inunder section 321.37 of the Revised Code, the	308
board of county commissioners may remove such county treasurer and	309
appoint some person to fill the vacancy created. The person so	310
appointed shall give bond and take the oath of office prescribed	311
for treasurersjudge or clerk of the court of common pleas shall	312
cause to be served upon the county treasurer the complaint and a	313
notice of hearing, at least ten days before the hearing upon the	314
complaint. The hearing shall be held not later than thirty days	315
after the date of the filing of the complaint. The judge may	316
suspend the county treasurer pending the hearing.	317

(2) The county treasurer is entitled, with or without	318
counsel, to appear and introduce evidence at the hearing. The	319
county treasurer is not entitled to representation by the	320
prosecuting attorney and is personally and solely responsible for	321
payment of attorney's fees and expenses incurred, notwithstanding	322
any other provision of the Revised Code. But if a judge or jury	323
rules against removal from office and the complaint is dismissed,	324
the court shall award reasonable attorney's fees to the county	325
treasurer.	326

(B) Removal proceedings shall be tried by the judge, unless a	327
jury trial is demanded in writing by the county treasurer against	328
whom the complaint was filed. If a jury trial is so demanded, the	329
jury shall be composed of twelve individuals who satisfy the	330
qualifications of a juror specified in section 2313.42 of the	331
Revised Code. If nine or more jurors find one or more of the	332
charges in the complaint are true, the jury shall return a finding	333
for the removal of the county treasurer. If less than nine jurors	334
find that the charges in the complaint are true, the jury shall	335
return a finding that the complaint be dismissed. Any finding of	336
the jury shall be filed with the clerk of the court and be made a	337
matter of public record. Removal proceedings tried by a judge	338
shall be a matter of public record, and a full detailed statement	339
of the reason for removal shall be filed with the clerk of the	340
court and also shall be made a matter of public record.	341

(C)(1) The decision of the court of common pleas for the	342
removal of a county treasurer may be reviewed on appeal by the	343
court of appeals on questions of law. The transcript of the record	344
and the notice of appeal shall be filed in the court of appeals	345
not more than thirty days after the decision is rendered and the	346
journal entry is made by the court of common pleas. The notice of	347
appeal may be filed only after leave has been granted by the court	348
of appeals for good cause shown at a hearing of which the	349
attorneys for both the county treasurer and the county auditor or	350
board of county commissioners that filed the complaint have been	351
notified. The decision of the court of appeals in refusing to	352
allow a notice of appeal to be filed, or in passing upon the	353
merits of the case in the appellate proceedings, is final.	354

(2) The court of appeals has jurisdiction to hear the case at	355
any place in the judicial district in which the court of appeals	356
may be sitting. The court of appeals shall hear the case not more	357
than thirty court days after the filing of the notice of appeal.	358
If the court of appeals hears the case in any county within its	359
judicial district other than the county in which the county	360
treasurer against whom the complaint was filed resides, the court	361
of appeals shall transmit its findings with the reasons therefor	362
to the clerk of the court of common pleas of the county in which	363
the county treasurer resides, with instructions to the clerk to	364
make the findings of the court a matter of record upon the journal	365
of the court in that county.	366

(3) In all cases before the court of appeals involving the	367
removal of a county treasurer under this section, the county	368
treasurer has the right of review or appeal to the supreme court	369
on leave first obtained, and the supreme court shall hear the case	370
not more than thirty court days after leave has been granted. In	371
all other respects, the hearing shall follow the regular procedure	372
in appealable cases that originate in the court of appeals.	373

(D) In removal proceedings under this section, the court of	374
common pleas and the court of appeals may subpoena witnesses and	375
compel their attendance in the same manner as in civil cases.	376
Process shall be served by the sheriff of the county in which a	377
witness resides. Witness fees and other fees in connection with	378
the removal proceedings shall be the same as in civil cases, and	379
the expenses incurred in removal proceedings shall be paid out of	380
the general revenue fund of the county.	381

(E) Immediately following a final decision that the county	382
treasurer shall be removed from office, the vacancy shall be	383
filled as provided in section 305.02 of the Revised Code.	384

(F) Any individual removed from office under this section is	385
not entitled to hold another public office for at least four years	386
following the date of the final decision and is not entitled to	387
hold another public office until the settlement is made or the	388
money is paid over that was the cause of the suit being instituted	389
under section 321.37 of the Revised Code.	390

Sec. 321.46.  (A) To enhance the background and working	391
knowledge of county treasurers in governmental accounting,	392
portfolio reporting and compliance, investments, and cash	393
management, the auditor of state and the treasurer of state shall	394
conduct education programs for persons elected for the first time	395
to the office of county treasurer and shall hold biennial	396
continuing education programs for persons who continue to hold the	397
office of county treasurer. Education programs for newly elected	398
county treasurers shall be held between the first day of December	399
and the first Monday of September next following that person's	400
election to the office of county treasurer. Similar initial	401
training may also be provided to any county treasurer who is	402
appointed to fill a vacancy or who is elected at a special	403
election.	404

(B)(1) The auditor of state shall determine the manner and	405
content of the education programs in the subject areas of	406
governmental accounting and portfolio reporting and compliance. In	407
those areas, newly elected county treasurers shall take at least	408
thirteen hours of education before taking office.	409

(2) The treasurer of state shall determine the manner and	410
content of the education programs in the subject areas of	411
investments and cash management. In those areas, newly elected	412
county treasurers shall take at least thirteen hours of education	413
before taking office.	414

(3)(a) After completing one year in office, a county	415
treasurer shall take not less than twenty-four hours of continuing	416
education during each biennial cycle. For purposes of division	417
(B)(3)(a) of this section, a biennial cycle for continuing	418
education shall be every two calendar years after the treasurer's	419
first year in office. The treasurer of state shall determine the	420
manner and content of the education programs in the subject areas	421
of investments, cash management, the collection of taxes, ethics,	422
and any other subject area that the treasurer of state determines	423
is reasonably related to the duties of the office of the county	424
treasurer. The auditor of state shall determine the manner and	425
content of the education programs in the subject areas of	426
governmental accounting, portfolio reporting and compliance,	427
office management, and any other subject area that the auditor of	428
state determines is reasonably related to the duties of the office	429
of the county treasurer.	430

(b) A county treasurer who accumulates more than twenty-four	431
hours of continuing education in a biennial cycle described in	432
division (B)(3)(a) of this section may credit the hours in excess	433
of twenty-four hours to the next biennial cycle. However,	434
regardless of the total number of hours earned, no more than six	435
hours in the education programs determined by the treasurer of	436
state pursuant to division (B)(3)(a) of this section and six hours	437
in the education programs determined by the auditor of state	438
pursuant to that division shall be carried over to the next	439
biennial cycle.	440

(c) A county treasurer who participates in a training program	441
or seminar established under section 109.43 of the Revised Code	442
may apply the three hours of training to the twenty-four hours of	443
continuing education required in a biennial cycle under division	444
(B)(3)(a) of this section.	445

(C) The auditor of state and the treasurer of state may each	446
charge counties a registration fee that will meet actual and	447
necessary expenses of the training of county treasurers, including	448
instructor fees, site acquisition costs, and the cost of course	449
materials. The necessary personal expenses of county treasurers as	450
a result of attending the training programs shall be borne by the	451
counties the treasurers represent.	452

(D) The auditor of state and the treasurer of state may allow	453
any other interested person to attend any of the education	454
programs that are held pursuant to this section, provided that	455
before attending any such education program, the interested person	456
shall pay to either the auditor of state or the treasurer of	457
state, as appropriate, the full registration fee set for the	458
education program.	459

(E)(1) If a county treasurer fails to complete the initial	460
education programs required by this section before taking office,	461
the treasurer's authority to invest county funds and to manage the	462
county portfolio immediately is suspended, and this authority is	463
transferred to the county's investment advisory committee until	464
full compliance with the initial education programs is determined	465
by the treasurer of state.	466

(2) If a county treasurer fails to complete continuing	467
education programs as required by this section, the county	468
treasurer is subject to divisions (B) to (E) of section 321.47 of	469
the Revised Code, including possible suspension of the treasurer's	470
authority to invest county funds and to manage the county	471
portfolio and transfer of this authority to the county's	472
investment advisory committee.	473

(3) If a county treasurer fails to complete the initial	474
education programs and continuing education programs required by	475
this section, the board of county commissioners may not purchase a	476
policy or policies of professional indemnity insurance for the	477
county treasurer under section 9.831 of the Revised Code.	478

(F)(1) Notwithstanding divisions (B) and (E) of this section,	479
a county treasurer who fails to complete the initial or continuing	480
education programs required by this section shall invest only in	481
the Ohio subdivisions fund pursuant to division (A)(6) of section	482
135.35 of the Revised Code, in no load money market mutual funds	483
pursuant to division (A)(5) of section 135.35 of the Revised Code,	484
or in time certificates of deposit or savings or deposit accounts	485
pursuant to division (A)(3) of section 135.35 of the Revised Code.	486

(2) A county treasurer who has failed to complete the initial	487
education programs required by this section and invests in other	488
than the investments permitted by division (F)(1) of this section	489
immediately shall have the county treasurer's authority to invest	490
county funds and to manage the county portfolio suspended, and	491
this authority shall be transferred to the county's investment	492
advisory committee until full compliance with the initial	493
education programs is determined by the treasurer of state.	494

(3) If a county treasurer fails to complete continuing	495
education programs required by this section and invests in other	496
than the investments permitted by division (F)(1) of this section,	497
the county treasurer is subject to divisions (B) to (E) of section	498
321.47 of the Revised Code, including possible suspension of the	499
treasurer's authority to invest county funds and to manage the	500
county portfolio and transfer of this authority to the county's	501
investment advisory committee.	502

(G)(1) There is hereby created in the state treasury the	503
county treasurer education fund, to be used by the treasurer of	504
state for actual and necessary expenses of education programs held	505
pursuant to this section and section 135.22 of the Revised Code.	506
All registration fees collected by the treasurer of state under	507
this section and section 135.22 of the Revised Code shall be paid	508
into that fund.	509

(2) All registration fees collected by the auditor of state	510
under this section shall be paid into the auditor of state	511
training program fund established under section 117.44 of the	512
Revised Code.	513

(H) The treasurer of state, with the advice and consent of	514
the auditor of state, may adopt reasonable rules not inconsistent	515
with this section for the implementation of this section.	516

Sec. 507.12. (A) To enhance the background and working	517
knowledge of township fiscal officers in governmental finance, the	518
auditor of state shall conduct education programs for individuals	519
elected for the first time to the office of township fiscal	520
officer and shall conduct biennial continuing education courses	521
for individuals who continue to hold the office of township fiscal	522
officer. The Ohio township association also may conduct such	523
education programs and biennial continuing education courses.	524
Similar initial training also may be provided to any township	525
fiscal officer who is appointed to fill a vacancy. The auditor of	526
state, in conjunction with the Ohio township association, shall	527
determine the manner and content of the education programs and	528
continuing education courses in governmental finance.	529

(B) Newly elected township fiscal officers shall take at	530
least thirteen hours of education programs before taking office. A	531
township fiscal officer who participates in a training program	532
held under section 117.44 of the Revised Code may apply those	533
hours taken before taking office to the thirteen hours of	534
education programs required under this division.	535

(C)(1) Each township fiscal officer who is newly elected or	536
newly appointed to a full term of office shall attend and	537
successfully complete at least sixteen hours of continuing	538
education courses during the first year of the township fiscal	539
officer's term of office, and complete at least another eight	540
hours of continuing education courses by the end of that term. A	541
township fiscal officer shall include at least two hours of ethics	542
and substance abuse training in the total twenty-four hours of	543
required courses. Each township fiscal officer who is elected or	544
appointed to a subsequent term of office shall attend and	545
successfully complete twenty-four hours of continuing education	546
courses in each subsequent term of office. To be counted toward	547
the twenty-four hours required by this section, a course shall be	548
approved or conducted by the Ohio township association or be	549
conducted by the auditor of state. A township fiscal officer who	550
teaches an approved course is entitled to credit for the course in	551
the same manner as if the township fiscal officer had attended the	552
course.	553

(2) A certified public accountant who serves as a township	554
fiscal officer may apply to the continuing education hours	555
required by division (C)(1) of this section any hours of	556
continuing education completed under section 4701.11 of the	557
Revised Code after being elected or appointed as a township fiscal	558
officer.	559

(3) A township fiscal officer may apply to the continuing	560
education hours required by division (C)(1) of this section any	561
hours of continuing education completed under section 135.22 of	562
the Revised Code after being elected or appointed as a township	563
fiscal officer.	564

(D) The auditor of state, during the regular financial audit	565
of a township, shall verify the completion of education programs	566
required under division (B) of this section and continuing	567
education courses required under division (C) of this section for	568
the township fiscal officer. The auditor of state shall issue a	569
certificate of completion to each township fiscal officer who	570
completes the education programs and continuing education courses	571
required by this section. The auditor of state shall issue a	572
"failure to complete" notice to any township fiscal officer who is	573
required to complete education programs and continuing education	574
courses under this section, but who fails to do so. The notice is	575
for informational purposes only and does not affect any	576
individual's ability to hold the office of township fiscal	577
officer. If a township fiscal officer does not complete the	578
education programs and continuing education courses required by	579
this section, the board of township trustees may not purchase a	580
policy or policies of professional indemnity insurance for the	581
township fiscal officer under section 9.831 of the Revised Code.	582

(E) Each board of township trustees shall approve a	583
reasonable amount requested by the township fiscal officer to	584
cover the costs the township fiscal officer is required to incur	585
to meet the requirements of this section, including registration	586
fees, lodging and meal expenses, and travel expenses.	587

Sec. 507.15.  (A)(1) If a township fiscal officer, through	588
misfeasance, malfeasance, or nonfeasance, fails to make a	589
settlement or to pay over money as prescribed by law, the board of	590
township trustees shall cause suit to be instituted against the	591
officer and against the officer's surety or sureties for the	592
amount due, with a ten per cent penalty on that amount. The suit	593
shall be instituted by the filing of a complaint for the removal	594
of the township fiscal officer with the court of common pleas of	595
the county in which the township fiscal officer against whom the	596
complaint is filed resides. The suit shall have precedence over	597
all civil business. The judge or clerk of the court of common	598
pleas shall cause to be served upon the township fiscal officer	599
the complaint and a notice of hearing, at least ten days before	600
the hearing upon the complaint. The hearing shall be held not	601
later than thirty days after the date of the filing of the	602
complaint. The judge may suspend the township fiscal officer	603
pending the hearing.	604

(2) The township fiscal officer is entitled, with or without	605
counsel, to appear and introduce evidence at the hearing. The	606
township fiscal officer is not entitled to representation by the	607
prosecuting attorney and is personally and solely responsible for	608
payment of attorney's fees and expenses incurred, notwithstanding	609
any other provision of the Revised Code. But if a judge or jury	610
rules against removal from office and the complaint is dismissed,	611
the court shall award reasonable attorney's fees to the township	612
fiscal officer.	613

(B) Removal proceedings shall be tried by the judge, unless a	614
jury trial is demanded in writing by the township fiscal officer	615
against whom the complaint was filed. If a jury trial is so	616
demanded, the jury shall be composed of twelve individuals who	617
satisfy the qualifications of a juror specified in section 2313.42	618
of the Revised Code. If nine or more jurors find one or more of	619
the charges in the complaint are true, the jury shall return a	620
finding for the removal of the township fiscal officer. If less	621
than nine jurors find that the charges in the complaint are true,	622
the jury shall return a finding that the complaint be dismissed.	623
Any finding of the jury shall be filed with the clerk of the court	624
and shall be made a matter of public record. Removal proceedings	625
tried by a judge shall be a matter of public record, and a full	626
detailed statement of the reason for removal shall be filed with	627
the clerk of the court and also shall be made a matter of public	628
record.	629

(C)(1) The decision of the court of common pleas for the	630
removal of a township fiscal officer may be reviewed on appeal by	631
the court of appeals on questions of law. The transcript of the	632
record and the notice of appeal shall be filed in the court of	633
appeals not more than thirty days after the decision is rendered	634
and the journal entry is made by the court of common pleas. The	635
notice of appeal may be filed only after leave has been granted by	636
the court of appeals for good cause shown at a hearing of which	637
the attorneys for both the township fiscal officer and the board	638
of township trustees that filed the complaint have been notified.	639
The decision of the court of appeals in refusing to allow a notice	640
of appeal to be filed, or in passing upon the merits of the case	641
in the appellate proceedings, is final.	642

(2) The court of appeals has jurisdiction to hear the case at	643
any place in the judicial district in which the court of appeals	644
may be sitting. The court of appeals shall hear the case not more	645
than thirty court days after the filing of the notice of appeal.	646
If the court of appeals hears the case in any county within its	647
judicial district other than the county in which the township	648
fiscal officer against whom the complaint was filed resides, the	649
court of appeals shall transmit its findings with the reasons	650
therefor to the clerk of the court of common pleas of the county	651
in which the township fiscal officer resides, with instructions to	652
the clerk to make the findings of the court a matter of record	653
upon the journal of the court in that county.	654

(3) In all cases before the court of appeals involving the	655
removal of a township fiscal officer under this section, the	656
township fiscal officer has the right of review or appeal to the	657
supreme court on leave first obtained, and the supreme court shall	658
hear the case not more than thirty court days after leave has been	659
granted. In all other respects, the hearing shall follow the	660
regular procedure in appealable cases that originate in the court	661
of appeals.	662

(D) In removal proceedings instituted under this section, the	663
court of common pleas and the court of appeals may subpoena	664
witnesses and compel their attendance in the same manner as in	665
civil cases. Process shall be served by the sheriff of the county	666
in which a witness resides. Witness fees and other fees in	667
connection with the removal proceedings shall be the same as in	668
civil cases, and the expenses incurred in removal proceedings	669
shall be paid out of the general revenue fund of the township.	670

(E) Immediately following a final decision that the township	671
fiscal officer shall be removed from office, the vacancy shall be	672
filled as provided in section 503.24 of the Revised Code.	673

(F) Any individual removed from office under this section is	674
not entitled to hold another public office for at least four years	675
following the date of the final decision, and is not entitled to	676
hold another public office until the settlement is made or the	677
money is paid over that was the cause of the suit being instituted	678
under this section.	679

Sec. 733.78.  (A) As used in this section, "fiscal officer"	680
means a village fiscal officer, a village clerk-treasurer, an	681
auditor of a municipal corporation, or a treasurer of a municipal	682
corporation.	683

(B)(1) If a fiscal officer, through misfeasance, malfeasance,	684
or nonfeasance, fails to make a settlement or to pay over money as	685
prescribed by law, the legislative authority of the municipal	686
corporation shall cause suit to be instituted against the fiscal	687
officer and against the officer's surety or sureties for the	688
amount due, with a ten per cent penalty on that amount. The suit	689
shall be instituted by the filing of a complaint for the removal	690
of the fiscal officer with the court of common pleas of the county	691
in which the fiscal officer against whom the complaint is filed	692
resides. The suit shall have precedence over all civil business.	693
The judge or clerk of the court of common pleas shall cause to be	694
served upon the fiscal officer the complaint and a notice of	695
hearing, at least ten days before the hearing upon the complaint.	696
The hearing shall be held not later than thirty days after the	697
date of the filing of the complaint. The judge may suspend the	698
fiscal officer pending the hearing.	699

(2) The fiscal officer is entitled, with or without counsel,	700
to appear and introduce evidence at the hearing. The fiscal	701
officer is not entitled to representation by the prosecuting	702
attorney and is personally and solely responsible for payment of	703
attorney's fees and expenses incurred, notwithstanding any other	704
provision of the Revised Code. But if a judge or jury rules	705
against removal from office and the complaint is dismissed, the	706
court shall award reasonable attorney's fees to the fiscal	707
officer.	708

(C) Removal proceedings shall be tried by the judge, unless a	709
jury trial is demanded in writing by the fiscal officer against	710
whom the complaint was filed. If a jury trial is so demanded, the	711
jury shall be composed of twelve individuals who satisfy the	712
qualifications of a juror specified in section 2313.42 of the	713
Revised Code. If nine or more jurors find one or more of the	714
charges in the complaint are true, the jury shall return a finding	715
for the removal of the fiscal officer. If less than nine jurors	716
find that the charges in the complaint are true, the jury shall	717
return a finding that the complaint be dismissed. Any finding of	718
the jury shall be filed with the clerk of the court and shall be	719
made a matter of public record. Removal proceedings tried by a	720
judge shall be a matter of public record, and a full detailed	721
statement of the reason for removal shall be filed with the clerk	722
of the court and also shall be made a matter of public record.	723

(D)(1) The decision of the court of common pleas for the	724
removal of a fiscal officer may be reviewed on appeal by the court	725
of appeals on questions of law. The transcript of the record and	726
the notice of appeal shall be filed in the court of appeals not	727
more than thirty days after the decision is rendered and the	728
journal entry is made by the court of common pleas. The notice of	729
appeal may be filed only after leave has been granted by the court	730
of appeals for good cause shown at a hearing of which the	731
attorneys for both the fiscal officer and the legislative	732
authority of the municipal corporation that filed the complaint	733
have been notified. The decision of the court of appeals in	734
refusing to allow a notice of appeal to be filed, or in passing	735
upon the merits of the case in the appellate proceedings, is	736
final.	737

(2) The court of appeals has jurisdiction to hear the case at	738
any place in the judicial district in which the court of appeals	739
may be sitting. The court of appeals shall hear the case not more	740
than thirty court days after the filing of the notice of appeal.	741
If the court of appeals hears the case in any county within its	742
judicial district other than the county in which the fiscal	743
officer against whom the complaint was filed resides, the court of	744
appeals shall transmit its findings with the reasons therefor to	745
the clerk of the court of common pleas of the county in which the	746
fiscal officer resides, with instructions to the clerk to make the	747
findings of the court a matter of record upon the journal of the	748
court in that county.	749

(3) In all cases before the court of appeals involving the	750
removal of a fiscal officer under this section, the fiscal officer	751
has the right of review or appeal to the supreme court on leave	752
first obtained, and the supreme court shall hear the case not more	753
than thirty court days after leave has been granted. In all other	754
respects, the hearing shall follow the regular procedure in	755
appealable cases that originate in the court of appeals.	756

(E) In removal proceedings instituted under this section, the	757
court of common pleas and the court of appeals may subpoena	758
witnesses and compel their attendance in the same manner as in	759
civil cases. Process shall be served by the sheriff of the county	760
in which a witness resides. Witness fees and other fees in	761
connection with the removal proceedings shall be the same as in	762
civil cases, and the expenses incurred in removal proceedings	763
shall be paid out of the general revenue fund of the municipal	764
corporation.	765

(F) Immediately following a final decision that the fiscal	766
officer shall be removed from office, the legislative authority of	767
the municipal corporation, upon a majority vote, may appoint a	768
successor, who shall give bond and take the oath of office	769
prescribed for fiscal officers and, so long as otherwise qualified	770
under law, shall serve the remainder of the removed fiscal	771
officer's unexpired term.	772

(G) Any individual removed from office under this section is	773
not entitled to hold another public office for at least four years	774
following the date of the final decision, and is not entitled to	775
hold another public office until the settlement is made or the	776
money is paid over that was the cause of the suit being instituted	777
under this section.	778

(H) If a municipal corporation's charter establishes a	779
procedure for the removal of officers from office that conflicts	780
with the removal procedure established by this section, the	781
procedure for the removal of officers in the charter prevails.	782

Sec. 733.81. (A) As used in this section, "fiscal officer"	783
means the auditor of a municipal corporation, treasurer of a	784
municipal corporation, village fiscal officer, village	785
clerk-treasurer, and, in the case of a municipal corporation that	786
does not have an elected fiscal officer, the appointed head of the	787
municipal corporation's finance department.	788

(B) To enhance the background and working knowledge of fiscal	789
officers in governmental finance, the auditor of state shall	790
conduct education programs for individuals elected or appointed	791
for the first time to the office of fiscal officer and shall	792
conduct biennial continuing education courses for individuals who	793
continue to hold the office of fiscal officer. The Ohio municipal	794
league also may conduct such education programs and biennial	795
continuing education courses. Similar initial training also may be	796
provided to any fiscal officer who is appointed to fill a vacancy	797
or who is elected at a special election. The auditor of state, in	798
conjunction with the Ohio municipal league, shall determine the	799
manner and content of the education programs and continuing	800
education courses in governmental finance.	801

(C) Newly elected fiscal officers shall take at least	802
thirteen hours of education programs before taking office. A	803
fiscal officer who participates in a training program held under	804
section 117.44 of the Revised Code may apply those hours taken	805
before taking office to the thirteen hours of education programs	806
required under this division.	807

(D)(1) Each fiscal officer who is newly elected or newly	808
appointed to a full term of office shall attend and successfully	809
complete at least sixteen hours of continuing education courses	810
during the first year of the fiscal officer's term of office, and	811
complete at least another eight hours of continuing education	812
courses by the end of that term. A fiscal officer shall include at	813
least two hours of ethics and substance abuse training in the	814
total twenty-four hours of required courses. Each fiscal officer	815
who is elected or appointed to a subsequent term of office shall	816
attend and successfully complete twenty-four hours of continuing	817
education courses in each subsequent term of office. To be counted	818
toward the twenty-four hours required by this section, a course	819
shall be approved or conducted by the Ohio municipal league or be	820
conducted by the auditor of state. A fiscal officer who teaches an	821
approved course is entitled to credit for the course in the same	822
manner as if the fiscal officer had attended the course.	823

(2) A certified public accountant who serves as a fiscal	824
officer may apply to the continuing education hours required by	825
division (D)(1) of this section any hours of continuing education	826
completed under section 4701.11 of the Revised Code after being	827
elected or appointed as a fiscal officer.	828

(3) A fiscal officer may apply to the continuing education	829
hours required by division (C)(1) of this section any hours of	830
continuing education completed under section 135.22 of the Revised	831
Code after being elected or appointed as a fiscal officer.	832

(E) The auditor of state, during the regular financial audit	833
of a municipal corporation, shall verify the completion of	834
education programs required under division (C) of this section and	835
continuing education courses required under division (D) of this	836
section for each of the municipal corporation's fiscal officers.	837

(F) The auditor of state shall issue a certificate of	838
completion to each fiscal officer who completes the education	839
programs and continuing education courses required by this	840
section. The auditor of state shall issue a "failure to complete"	841
notice to any fiscal officer who is required to complete education	842
programs and continuing education courses under this section, but	843
who fails to do so. The notice is for informational purposes only	844
and does not affect any individual's ability to hold the office to	845
which the individual was elected or appointed. If a fiscal officer	846
does not complete the education programs and continuing education	847
courses required by this section, the legislative authority of the	848
municipal corporation may not purchase a policy or policies of	849
professional indemnity insurance for the fiscal officer under	850
section 9.831 of the Revised Code.	851

(G) Each legislative authority of a municipal corporation	852
shall approve a reasonable amount requested by the fiscal officer	853
to cover the costs the fiscal officer is required to incur to meet	854
the requirements of this section, including registration fees,	855
lodging and meal expenses, and travel expenses.	856

Sec. 2921.44.  (A) No law enforcement officer shall	857
negligently do any of the following:	858

(1) Fail to serve a lawful warrant without delay;

859

(2) Fail to prevent or halt the commission of an offense or	860
to apprehend an offender, when it is in the law enforcement	861
officer's power to do so alone or with available assistance.	862

(B) No law enforcement, ministerial, or judicial officer	863
shall negligently fail to perform a lawful duty in a criminal case	864
or proceeding.	865

(C) No officer, having charge of a detention facility, shall	866
negligently do any of the following:	867

(1) Allow the detention facility to become littered or	868
unsanitary;	869

(2) Fail to provide persons confined in the detention	870
facility with adequate food, clothing, bedding, shelter, and	871
medical attention;	872

(3) Fail to control an unruly prisoner, or to prevent	873
intimidation of or physical harm to a prisoner by another;	874

(4) Allow a prisoner to escape;

875

(5) Fail to observe any lawful and reasonable regulation for	876
the management of the detention facility.	877

(D) No public official of the state shall recklessly create a	878
deficiency, incur a liability, or expend a greater sum than is	879
appropriated by the general assembly for the use in any one year	880
of the department, agency, or institution of the state with which	881
the public official is connected.	882

(E) No public servant shall recklessly fail to perform a duty	883
expressly imposed by law with respect to the public servant's	884
office, or recklessly do any act expressly forbidden by law with	885
respect to the public servant's office.	886

(F) Whoever violates this section is guilty of dereliction of	887
duty, a misdemeanorfelony of the secondfifth degree.	888

(G) A public servant who is a county treasurer, county	889
auditor, township fiscal officer, auditor of a municipal	890
corporation, treasurer of a municipal corporation, village fiscal	891
officer, village clerk-treasurer, school district treasurer,	892
fiscal officer of a community school established under Chapter	893
3314. of the Revised Code, treasurer of a science, technology,	894
engineering, and mathematics school established under Chapter	895
3326. of the Revised Code, or fiscal officer of a	896
college-preparatory boarding school established under Chapter	897
3328. of the Revised Code and is convicted of or pleads guilty to	898
dereliction of duty is disqualified from holding any public	899
office, employment, or position of trust in this state for four	900
years following the date of conviction or of entry of the plea,	901
and is not entitled to hold another public office until any	902
repayment or restitution required by the court is satisfied.	903

(H) As used in this section, "public servant" includes anthe	904
following:	905

(1) An officer or employee of a contractor as defined in	906
section 9.08 of the Revised Code;	907

(2) A fiscal officer employed by the operator of a community	908
school established under Chapter 3314. of the Revised Code or by	909
the operator of a college-preparatory boarding school established	910
under Chapter 3328. of the Revised Code.	911

Sec. 3313.30. (A) If the auditor of state or a public	912
accountant, pursuant to section 117.41 of the Revised Code,	913
declares a school district to be unauditable, the auditor of state	914
shall provide written notification of that declaration to the	915
district and the department of education. The auditor of state	916
also shall post the notification on the auditor of state's web	917
site.	918

(B) If the district's current treasurer held that position	919
during any year for which the district is unauditable, upon	920
receipt of the notification under division (A) of this section,	921
the district board of education shall suspend the treasurer until	922
the auditor of state or a public accountant has completed an audit	923
of the district. Suspension of the treasurer may be with or	924
without pay, as determined by the district board based on the	925
circumstances that prompted the auditor of state's declaration.	926
The district board shall appoint a person to assume the duties of	927
the treasurer during the period of the suspension. If the	928
appointee is not licensed as a treasurer under section 3301.074 of	929
the Revised Code, the appointee shall be approved by the	930
superintendent of public instruction prior to assuming the duties	931
of the treasurer. The state board of education may take action	932
under section 3319.31 of the Revised Code to suspend, revoke, or	933
limit the license of a treasurer who has been suspended under this	934
division.	935

(C) Not later than forty-five days after receiving the	936
notification under division (A) of this section, the district	937
board shall provide a written response to the auditor of state.	938
The response shall include the following:	939

(1) An overview of the process the district board will use to	940
review and understand the circumstances that led to the district	941
becoming unauditable;	942

(2) A plan for providing the auditor of state with the	943
documentation necessary to complete an audit of the district and	944
for ensuring that all financial documents are available in the	945
future;	946

(3) The actions the district board will take to ensure that	947
the plan described in division (C)(2) of this section is	948
implemented.	949

(D) If the school district fails to make reasonable efforts	950
and continuing progress to bring its accounts, records, files, or	951
reports into an auditable condition within ninety days after being	952
declared unauditable, the auditor of state, in addition to	953
requesting legal action under sections 117.41 and 117.42 of the	954
Revised Code, shall notify the district and the department of the	955
district's failure. If the auditor of state or a public accountant	956
subsequently is able to complete a financial audit of the	957
district, the auditor of state shall notify the district and the	958
department that the audit has been completed.	959

(E) Notwithstanding any provision to the contrary in Chapter	960
3317. of the Revised Code or any other provision of law, upon	961
notification by the auditor of state under division (D) of this	962
section that the district has failed to make reasonable efforts	963
and continuing progress to bring its accounts, records, files, or	964
reports into an auditable condition, the department shall	965
immediately cease all payments to the district under Chapter 3317.	966
of the Revised Code and any other provision of law. Upon	967
subsequent notification from the auditor of state under that	968
division that the auditor of state or a public accountant was able	969
to complete a financial audit of the district, the department	970
shall release all funds withheld from the district under this	971
section.	972

Sec. 3314.011. (A) Every community school established under	973
this chapter shall have a designated fiscal officer. The auditor	974
of state may require by rule that the fiscal officer of any	975
community school, before entering upon duties as fiscal officer of	976
the school, execute a bond in an amount and with surety to be	977
approved by the governing authority of the school, payable to the	978
state, conditioned for the faithful performance of all the	979
official duties required of the fiscal officer. Any such bond	980
shall be deposited with the governing authority of the school, and	981
a copy thereof, certified by the governing authority, shall be	982
filed with the county auditor.	983

(B) Prior to assuming the duties of fiscal officer, the	984
fiscal officer designated under this section shall be licensed as	985
a treasurer under section 3301.074 of the Revised Code or shall	986
complete not less than sixteen hours of continuing education	987
classes, courses, or workshops in the area of school accounting as	988
approved by the sponsor of the community school. Any fiscal	989
officer who is not licensed under section 3301.074 of the Revised	990
Code shall complete an additional twenty-four hours of continuing	991
education classes, courses, or workshops in the area of school	992
accounting as approved by the sponsor of the school within one	993
year after assuming the duties of fiscal officer of the school.	994
However, any such classes, courses, or workshops in excess of	995
sixteen hours completed by the fiscal officer prior to assuming	996
the duties of fiscal officer shall count toward the additional	997
twenty-four hours of continuing education required under this	998
section. In each subsequent year, any fiscal officer who is not	999
licensed under section 3301.074 of the Revised Code shall complete	1000
eight hours of continuing education classes, courses, or workshops	1001
in the area of school accounting as approved by the sponsor of the	1002
school, except that any person serving as fiscal officer of a	1003
community school on the effective date of this amendment who is	1004
not licensed as a treasurer under section 3301.074 of the Revised	1005
Code shall obtain such licensure not later than one year after	1006
that effective date. No community school shall allow a person to	1007
serve as fiscal officer who is not licensed as required by this	1008
division.	1009

Sec. 3314.023. In order to provide monitoring and technical	1010
assistance, a representative of the sponsor of a community school	1011
shall meet with the governing authority or treasurerfiscal	1012
officer of the school and shall review the financial and	1013
enrollment records of the school at least once every month. Not	1014
later than ten days after each review, the sponsor shall provide	1015
the governing authority and fiscal officer with a written report	1016
regarding the review.	1017

Sec. 3314.50.  No community school shall, on or after the	1018
effective date of this section, open for operation in any school	1019
year unless the governing authority of the school has posted a	1020
surety bond in the amount of fifty thousand dollars with the	1021
auditor of state. In lieu of a surety bond, a community school	1022
governing authority may deposit with the auditor of state cash in	1023
the amount of fifty thousand dollars as a guarantee of payment.	1024
The bond or cash guarantee shall be used, in the event the school	1025
closes, to pay the auditor of state any moneys owed by the school	1026
for the costs of audits conducted by the auditor of state or a	1027
public accountant under Chapter 117. of the Revised Code.	1028

Immediately upon the filing of a surety bond or the deposit	1029
of cash, the auditor of state shall deliver the bond or cash to	1030
the treasurer of state, who shall hold it in trust for the	1031
purposes prescribed in this section. The treasurer of state shall	1032
be responsible for the safekeeping of all surety bonds filed or	1033
cash deposited under this section. The auditor of state shall	1034
notify the department of education when the school's governing	1035
authority has filed the bond or deposited the cash guarantee.	1036

When the auditor of state finds that a community school has	1037
closed and cannot pay for the costs of audits, the auditor of	1038
state shall declare the surety bond or cash deposit forfeited. The	1039
auditor of state shall certify the amount of forfeiture to the	1040
treasurer of state who shall pay money from the named surety or	1041
from the school's cash deposit as needed to reimburse the auditor	1042
of state or public accountant for costs incurred in conducting	1043
audits of the school.	1044

Sec. 267.50.70.        Sec. 3314.51. UNAUDITABLE COMMUNITY SCHOOL(A)

1045

(A) If the Auditorauditor of Statestate or a public	1046
accountant, pursuant to section 117.41 of the Revised Code,	1047
declares a community school established under Chapter 3314. of	1048
the Revised Code to be unauditable, the Auditorauditor of State	1049
state shall provide written notification of that declaration to	1050
the school, the school's sponsor, and the Departmentdepartment of	1051
Educationeducation. The Auditorauditor of Statestate also	1052
shall post the notification on the Auditorauditor of State's	1053
state's web site.	1054

(B) If the community school's current fiscal officer held	1055
that position during any year for which the school is unauditable,	1056
upon receipt of the notification under division (A) of this	1057
section, the governing authority of the school shall suspend the	1058
fiscal officer until the auditor of state or a public accountant	1059
has completed an audit of the school, except that if the school	1060
has an operator and the operator employs the fiscal officer, the	1061
operator shall suspend the fiscal officer for that period.	1062
Suspension of the fiscal officer may be with or without pay, as	1063
determined by the entity imposing the suspension based on the	1064
circumstances that prompted the auditor of state's declaration.	1065
The entity imposing the suspension shall appoint a person to	1066
assume the duties of the fiscal officer during the period of the	1067
suspension. If the appointee is not licensed as a treasurer under	1068
section 3301.074 of the Revised Code, the appointee shall be	1069
approved by the superintendent of public instruction prior to	1070
assuming the duties of the fiscal officer. The state board of	1071
education may take action under section 3319.31 of the Revised	1072
Code to suspend, revoke, or limit the license of a fiscal officer	1073
who has been suspended under this division.	1074

(C) Notwithstanding any provision to the contrary in Chapter	1075
3314. of the Revised Codethis chapter or any other provision of	1076
law, athe sponsor of athe community school that is notified by	1077
the Auditor of State under division (A) of this section that a	1078
community school it sponsors is unauditable shall not enter into	1079
contracts with any additional community schools under section	1080
3314.03 of the Revised Code untilbetween ninety days after the	1081
date of the declaration under division (A) of this section and the	1082
date the Auditorauditor of Statestate or a public accountant has	1083
completed a financial audit of thatthe school.	1084

(C)(D) Not later than forty-five days after receiving the	1085
notification by the Auditor of State under division (A) of this	1086
section that a community school is unauditable, the sponsor of the	1087
community school shall provide a written response to the Auditor	1088
auditor of Statestate. The sponsor shall provide a copy of the	1089
response to the community school. The response shall include the	1090
following:	1091

(1) An overview of the process the sponsor will use to review	1092
and understand the circumstances that led to the community school	1093
becoming unauditable;	1094

(2) A plan for providing the Auditorauditor of Statestate	1095
with the documentation necessary to complete an audit of the	1096
community school and for ensuring that all financial documents are	1097
available in the future;	1098

(3) The actions the sponsor will take to ensure that the plan	1099
described in division (C)(D)(2) of this section is implemented.	1100

(D)(E) If athe community school fails to make reasonable	1101
efforts and continuing progress to bring its accounts, records,	1102
files, or reports into an auditable condition within ninety days	1103
after being declared unauditable, the Auditorauditor of State	1104
state, in addition to requesting legal action under sections	1105
117.41 and 117.42 of the Revised Code, shall notify the Department	1106
school's sponsor and the department of the school's failure. If	1107
the Auditorauditor of Statestate or a public accountant	1108
subsequently is able to complete a financial audit of the school,	1109
the Auditorauditor of Statestate shall notify the Department	1110
school's sponsor and the department that the audit has been	1111
completed.	1112

(E)(F) Notwithstanding any provision to the contrary in	1113
Chapter 3314. of the Revised Codethis chapter or any other	1114
provision of law, upon notification by the Auditorauditor of	1115
Statestate under division (D)(E) of this section that athe	1116
community school has failed to make reasonable efforts and	1117
continuing progress to bring its accounts, records, files, or	1118
reports into an auditable condition following a declaration that	1119
the school is unauditable, the Departmentdepartment shall	1120
immediately cease all payments to the school under Chapter 3314.	1121
of the Revised Codethis chapter and any other provision of law.	1122
Upon subsequent notification from the Auditorauditor of State	1123
state under that division that the Auditorauditor of Statestate	1124
or a public accountant was able to complete a financial audit of	1125
the community school, the Departmentdepartment shall release all	1126
funds withheld from the school under this section.	1127

Sec. 3326.211. (A) If the auditor of state or a public	1128
accountant, pursuant to section 117.41 of the Revised Code,	1129
declares a science, technology, engineering, and mathematics	1130
school to be unauditable, the auditor of state shall provide	1131
written notification of that declaration to the school and the	1132
department of education. The auditor of state also shall post the	1133
notification on the auditor of state's web site.	1134

(B) If the STEM school's current treasurer held that position	1135
during any year for which the school is unauditable, upon receipt	1136
of the notification under division (A) of this section, the	1137
governing body of the school shall suspend the treasurer until the	1138
auditor of state or a public accountant has completed an audit of	1139
the school. Suspension of the treasurer may be with or without	1140
pay, as determined by the governing body based on the	1141
circumstances that prompted the auditor of state's declaration.	1142
The governing body shall appoint a person to assume the duties of	1143
the treasurer during the period of the suspension. If the	1144
appointee is not licensed as a treasurer under section 3301.074 of	1145
the Revised Code, the appointee shall be approved by the	1146
superintendent of public instruction prior to assuming the duties	1147
of the treasurer. The state board of education may take action	1148
under section 3319.31 of the Revised Code to suspend, revoke, or	1149
limit the license of a treasurer who has been suspended under this	1150
division.	1151

(C) Not later than forty-five days after receiving the	1152
notification under division (A) of this section, the governing	1153
body of the STEM school shall provide a written response to the	1154
auditor of state. The response shall include the following:	1155

(1) An overview of the process the governing body will use to	1156
review and understand the circumstances that led to the school	1157
becoming unauditable;	1158

(2) A plan for providing the auditor of state with the	1159
documentation necessary to complete an audit of the school and for	1160
ensuring that all financial documents are available in the future;	1161

(3) The actions the governing body will take to ensure that	1162
the plan described in division (C)(2) of this section is	1163
implemented.	1164

(D) If the STEM school fails to make reasonable efforts and	1165
continuing progress to bring its accounts, records, files, or	1166
reports into an auditable condition within ninety days after being	1167
declared unauditable, the auditor of state, in addition to	1168
requesting legal action under sections 117.41 and 117.42 of the	1169
Revised Code, shall notify the school and the department of the	1170
school's failure. If the auditor of state or a public accountant	1171
subsequently is able to complete a financial audit of the school,	1172
the auditor of state shall notify the school and the department	1173
that the audit has been completed.	1174

(E) Notwithstanding any provision to the contrary in this	1175
chapter or any other provision of law, upon notification by the	1176
auditor of state under division (D) of this section that the STEM	1177
school has failed to make reasonable efforts and continuing	1178
progress to bring its accounts, records, files, or reports into an	1179
auditable condition, the department shall immediately cease all	1180
payments to the school under this chapter and any other provision	1181
of law. Upon subsequent notification from the auditor of state	1182
under that division that the auditor of state or a public	1183
accountant was able to complete a financial audit of the school,	1184
the department shall release all funds withheld from the school	1185
under this section.	1186

Sec. 3328.16.  (A) Each college-preparatory boarding school	1187
established under this chapter shall have a designated fiscal	1188
officer. The auditor of state may require by rule that the fiscal	1189
officer of any college-preparatory boarding school, before	1190
entering upon duties as fiscal officer, execute a bond in an	1191
amount and with surety to be approved by the school's board of	1192
trustees, payable to the state, conditioned for the faithful	1193
performance of all the official duties required of the fiscal	1194
officer. Any such bond shall be deposited with the school's board	1195
of trustees, and a copy of the bond shall be certified by the	1196
board and filed with the county auditor.	1197

(B) Prior to assuming the duties of fiscal officer, the	1198
fiscal officer designated under this section shall be licensed as	1199
a treasurer under section 3301.074 of the Revised Code. No	1200
college-preparatory boarding school shall allow a person to serve	1201
as fiscal officer who is not licensed as required by this	1202
division.	1203

Sec. 3328.37.  (A) If the auditor of state or a public	1204
accountant, pursuant to section 117.41 of the Revised Code,	1205
declares a college-preparatory boarding school established under	1206
this chapter to be unauditable, the auditor of state shall provide	1207
written notification of that declaration to the school and the	1208
department of education. The auditor of state also shall post the	1209
notification on the auditor of state's web site.	1210

(B) If the college-preparatory boarding school's current	1211
fiscal officer held that position during any year for which the	1212
school is unauditable, upon receipt of the notification under	1213
division (A) of this section, the board of trustees of the school	1214
shall suspend the fiscal officer until the auditor of state or a	1215
public accountant has completed an audit of the school, except	1216
that if the fiscal officer is employed by the school's operator,	1217
the operator shall suspend the fiscal officer for that period.	1218
Suspension of the fiscal officer may be with or without pay, as	1219
determined by the entity imposing the suspension based on the	1220
circumstances that prompted the auditor of state's declaration.	1221
The entity imposing the suspension shall appoint a person to	1222
assume the duties of the fiscal officer during the period of the	1223
suspension. If the appointee is not licensed as a treasurer under	1224
section 3301.074 of the Revised Code, the appointee shall be	1225
approved by the superintendent of public instruction prior to	1226
assuming the duties of the fiscal officer. The state board of	1227
education may take action under section 3319.31 of the Revised	1228
Code to suspend, revoke, or limit the license of a fiscal officer	1229
who has been suspended under this division.	1230

(C) Not later than forty-five days after receiving the	1231
notification under division (A) of this section, the board of	1232
trustees of the college-preparatory boarding school shall provide	1233
a written response to the auditor of state. The response shall	1234
include the following:	1235

(1) An overview of the process the board will use to review	1236
and understand the circumstances that led to the school becoming	1237
unauditable;	1238

(2) A plan for providing the auditor of state with the	1239
documentation necessary to complete an audit of the school and for	1240
ensuring that all financial documents are available in the future;	1241

(3) The actions the board will take to ensure that the plan	1242
described in division (C)(2) of this section is implemented.	1243

(D) If the college-preparatory boarding school fails to make	1244
reasonable efforts and continuing progress to bring its accounts,	1245
records, files, or reports into an auditable condition within	1246
ninety days after being declared unauditable, the auditor of	1247
state, in addition to requesting legal action under sections	1248
117.41 and 117.42 of the Revised Code, shall notify the school and	1249
the department of the school's failure. If the auditor of state or	1250
a public accountant subsequently is able to complete a financial	1251
audit of the school, the auditor of state shall notify the school	1252
and the department that the audit has been completed.	1253

(E) Notwithstanding any provision to the contrary in this	1254
chapter or any other provision of law, upon notification by the	1255
auditor of state under division (D) of this section that the	1256
college-preparatory boarding school has failed to make reasonable	1257
efforts and continuing progress to bring its accounts, records,	1258
files, or reports into an auditable condition, the department	1259
shall immediately cease all payments to the school under this	1260
chapter and any other provision of law. Upon subsequent	1261
notification from the auditor of state under that division that	1262
the auditor of state or a public accountant was able to complete a	1263
financial audit of the school, the department shall release all	1264
funds withheld from the school under this section.	1265

Section 2.  (A) That existing sections 305.03, 319.04,	1266
319.26, 321.37, 321.38, 321.46, 2921.44, 3314.011, and 3314.023	1267
and section 319.25 of the Revised Code are hereby repealed.	1268

(B) That existing Section 267.50.70 of Am. Sub. H.B. 153 of	1269
the 129th General Assembly is hereby repealed.	1270