As Introduced

136th General Assembly

Regular Session H. B. No. 574

2025-2026

To create the Political Subdivision Consolidation Incentive Grant Pilot Program and to make an appropriation.

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

Section 1. (A) As used in this section:

"Merger" means a process under which one political subdivision absorbs one or more other political subdivisions, or two or more political subdivisions otherwise combine to create one political subdivision. "Merger" does not include a process under which political subdivisions utilize joint districts to provide services.

"Political subdivision" means a body corporate and politic responsible for governmental activities in a geographic area smaller than the state, not including a county.

(B) The Political Subdivision Incentive Grant Pilot Program is created to be administered by the Secretary of State for the purpose of awarding grants to political subdivisions after mergers.

(C)(1) A township or municipal corporation is eligible to receive a grant if one or more other townships or municipal corporations merged into the township or municipal corporation under Chapter 523. of the Revised Code, sections 709.43 to 709.48 of the Revised Code, or under a charter that provides a procedure for merger.

(2) A political subdivision other than a township or municipal corporation is eligible to receive a grant if one or more other political subdivisions of a similar nature merge under applicable Revised Code provisions. This division does not give political subdivisions authority to merge.

(D) Only a merger that takes effect on or after the effective date of this section is eligible. A political subdivision is eligible to apply, in the manner prescribed by the Secretary of State, beginning the date the merger takes effect.

(E) Subject to the availability of funds, the Secretary of State shall award grants on a first-come, first-serve basis to eligible political subdivisions.

(F)(1) Townships and municipal corporations shall receive a grant amount according to the following formula:

(a) Multiply the population of the remaining, merged township or municipal corporation by forty.

(b) Compare the most recent budget of each township or municipal corporation before the merge. Calculate twenty per cent of the lowest budget amount.

(c) Add the resulting amount under division (F)(1)(a) and the resulting amount under division (F)(1)(b) of this section. This is the grant amount, subject to a maximum grant amount of two million five hundred thousand dollars.

(2) All other political subdivisions shall receive a grant amount as follows:

(a) Multiply the population of the remaining, merged political subdivision by twenty.

(b) Compare the most recent budget of each political subdivision before the merge. Calculate ten per cent of the lowest budget amount.

(c) Add the resulting amount under division (F)(2)(a) and the resulting amount under division (F)(2)(b) of this section. This is the grant amount, subject to a maximum grant amount of one million dollars.

(G) A political subdivision shall receive only one grant under the program.

Section 2. All items in this act are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all operating appropriations made in this act, those in the first column are for fiscal year 2026 and those in the second column are for fiscal year 2027. The operating appropriations made in this act are in addition to any other operating appropriations made for these fiscal years.

Section 3.

	1	2	3	4	5
A	SOS SECRETARY OF STATE
B	General Revenue Fund
C	GRF	050412	Political Subdivision Consolidation Incentive	$25,000,000	$0
D	TOTAL Highway Safety Fund Group			$25,000,000	$0

POLITICAL SUBDIVISION CONSOLIDATION INCENTIVE

The foregoing appropriation item 050412, Political Subdivision Consolidation Incentive, shall be used to support the Political Subdivision Incentive Grant Pilot Program established under Section 1 of this act.

An amount equal to the unexpended, unencumbered balance of the foregoing appropriation item 050412, Political Subdivision Consolidation Incentive, at the end of fiscal year 2026 is hereby reappropriated to the same appropriation item in fiscal year 2027.

Section 4. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the manner in which appropriation accounts shall be maintained. Expenditures from operating appropriations contained in this act shall be accounted for as though made in, and are subject to all applicable provisions of, H.B. 96 of the 136th General Assembly.