As Passed by the House

135th General Assembly

Regular Session Sub. H. B. No. 101

2023-2024

Representatives Bird, Schmidt

Cosponsors: Representatives Click, Johnson, Klopfenstein, Seitz, Brennan, Dobos, Fowler Arthur, Gross, John, Lipps, Mathews, Peterson, Robb Blasdel, Thomas, C., Wiggam, Williams, Willis

A BILL

To amend sections 118.27, 118.31, 317.18, 703.20, 703.201, 703.23, 1724.07, and 5705.14; to amend, for the purpose of adopting new section numbers as indicated in parentheses, sections 703.20 (703.33) and 703.201 (703.34); to enact sections 317.115, 703.31, 703.32, 703.35, 703.36, 703.361, 703.362, 703.37, 703.371, 703.372, 703.373, 703.374, 703.375, 703.376, 703.377, 703.378, 703.379, 703.38, and 703.39; and to repeal section 703.21 of the Revised Code to modify the law regarding village dissolution.

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

Section 1. That sections 118.27, 118.31, 317.18, 703.20, 703.201, 703.23, 1724.07, and 5705.14 be amended; sections 703.20 (703.33) and 703.201 (703.34) be amended for the purpose of adopting new section numbers as indicated in parentheses; and sections 317.115, 703.31, 703.32, 703.35, 703.36, 703.361, 703.362, 703.37, 703.371, 703.372, 703.373, 703.374, 703.375, 703.376, 703.377, 703.378, 703.379, 703.38, and 703.39 of the Revised Code be enacted to read as follows:

Sec. 118.27. (A) A financial planning and supervision commission with respect to a municipal corporation, county, or township, and its functions under this chapter, shall continue in existence until such time as a determination is made pursuant to division (B) of this section of one of the following:

(1) In the case of a village, ~~the village has dissolved~~ the date a dissolution is effective as defined under section ~~118.31, 703.20, or 703.201~~ 703.31 of the Revised Code.

(2) In the case of a township, the township has dissolved under section 118.31 of the Revised Code.

(3) In the case of a municipal corporation, county, or township, the municipal corporation, county, or township has done all of the following:

(a) Planned, and is in the process of good faith implementation of, an effective financial accounting and reporting system in accordance with section 118.10 of the Revised Code, and it is reasonably expected that such implementation will be completed within two years;

(b) Corrected and eliminated or has planned and is in the process of good faith implementation of correcting and eliminating all of the fiscal emergency conditions determined pursuant to section 118.04 of the Revised Code, and no new fiscal emergency conditions have occurred. The auditor of state shall monitor the progress of the municipal corporation, county, or township in its plan of good faith implementation of correcting and eliminating all the fiscal emergency conditions. This monitoring is to secure full implementation at the earliest time feasible but within two years from such termination. If after a two-year period, the municipal corporation, county, or township has failed to secure full implementation, the auditor of state may redeclare the municipal corporation, county, or township to be in a fiscal emergency.

(d) The municipal corporation, county, or township prepares a financial forecast for a five-year period in accordance with the standards issued by the auditor of state. An opinion must be rendered by the auditor of state that the financial forecast is considered to be nonadverse.

(B) The determination that the conditions for the termination of the existence of the commission and its functions exist may be made either by the auditor of state or by the commission and shall be certified to the commission, the auditor of state, the governor, and the budget commission, whereupon such commission and its functions under this chapter shall terminate. Such determination shall be made by the auditor of state upon the filing with the auditor of state of a written request for such determination by the municipal corporation, county, or township, the governor, or the commission, or may be made by the auditor of state upon the auditor of state's own initiative.

(C) The commission shall prepare and submit with such certification a final report of its activities, in such form as is appropriate for the purpose of providing a record of its activities and assisting other commissions created under this chapter in the conduct of their functions. All of the books and records of the commission shall be delivered to the auditor of state for retention and safekeeping.

(D) Upon receipt of the certification provided for in division (B) of this section, the director shall follow the procedures set forth in section 126.29 of the Revised Code.

(E) If, at the time of termination of the commission, an effective financial accounting and reporting system has not been fully implemented, the auditor of state shall monitor the progress of implementation and shall exercise authority under Chapter 117. and section 118.10 of the Revised Code to secure full implementation at the earliest time feasible but within two years from such termination.

Sec. 118.31. (A) Upon petition of the financial supervisor and approval of the financial planning and supervision commission, if any, the attorney general shall file a legal action in the court of common pleas on behalf of the state to dissolve a municipal corporation or township if all of the following conditions apply:

(1) The municipal corporation or township has a population of less than five thousand as of the most recent federal decennial census.

(2) The municipal corporation or township has been under a fiscal emergency for at least four consecutive years.

(3) Implementation of the financial plan of the municipal corporation or township required under this chapter cannot reasonably be expected to correct and eliminate all fiscal emergency conditions within five years.

(B) The court of common pleas shall hold a hearing within ninety days after the date on which the attorney general files the legal action with the court. Notice of the hearing shall be filed with the attorney general, the clerk of the village or the fiscal officer of the township that is the subject of the action, and each fiscal officer of a township located wholly or partly within the village subject to dissolution.

(C) If the court finds that all of the conditions described in division (A) of this section apply to the municipal corporation, the court shall order the dissolution of the municipal corporation in accordance with the process in sections 703.31 to 703.39 of the Revised Code. The attorney general shall file a certified copy of the court's order of dissolution with the secretary of state, the auditor of state, and the county recorder of the county in which the village is situated, who shall record the certified copy of the order in their respective offices. The auditor of state may record the certified copy of the order in the auditor's work papers for the village's final audit. The auditor of state shall notify the townships into which the village will dissolve of the court's order of dissolution.

(D) If the court finds that all of the conditions described in division (A) of this section apply to the ~~municipal corporation or~~ township, it the court shall appoint a ~~receiver~~receiver-trustee. The ~~receiver~~receiver-trustee, under court supervision, shall work with executive and legislative officers of the ~~municipal corporation or~~ township to wind up the affairs of and dissolve ~~the municipal corporation in accordance with section 703.21 of the Revised Code or~~ the township in accordance with the process in section 503.02 and sections 503.17 to 503.21 of the Revised Code.

Sec. 317.115. After a village dissolution under sections 703.31 to 703.39 of the Revised Code, an instrument related to a tract, parcel, or lot of land located within what was previously the territory of the dissolved village may utilize the lot and sublot number previously assigned to the tract, parcel, or lot of land.

Sec. 317.18. The county recorder shall make and keep up direct and reverse indexes of all the names of both parties to all instruments previously received for record by the county recorder. The indexes shall show the kind of instrument, the range, township, and section or the survey number and number of acres, or the permanent parcel number provided for under section 319.28 of the Revised Code, or the lot and sublot number and the part thereof, all as the case requires, of each tract, parcel, or lot of land described in any such instrument. The name of each grantor shall be entered in the direct index, and the name of each grantee shall be entered in the reverse index. After a village dissolution under sections 703.31 to 703.39 of the Revised Code, the county recorder may continue to utilize the lot and sublot number previously assigned to a tract, parcel, or lot of land.

As to notices of claims filed in accordance with sections 5301.51, 5301.52, and 5301.56 of the Revised Code, there shall be entered in the reverse index the name of each claimant, followed by the name of the present owner of title against whom the claim is asserted, if the notice contains the name of the present owner; or, if the notice contains the names of more than one such owner, there shall be entered the name of the first owner followed by "and others" or its equivalent.

In all cases of deeds, mortgages, or other instruments made by any sheriff, master commissioner, marshal, auditor, executor, administrator, trustee, or other officer, for the sale, conveyance, or encumbrance of any lands, tenements, or hereditaments, and recorded in the recorder's office, the recorder shall index the parties to such instrument under their appropriate letters, respectively, as follows:

(A) The names of the persons represented by such officer as owners of the lands, tenements, or hereditaments described in any such instruments;

(B) The official designation of the officer by whom such instrument was made;

Whenever, in the opinion of the board of county commissioners, it becomes necessary to transcribe, on account of its worn out or incomplete condition, any volume of an index in use, such volume shall be revised and transcribed to conform with this section; except that in counties having a sectional index in conformity with section 317.20 of the Revised Code, such transcript shall be only a copy of the original.

Sec. 703.23. All courts shall take judicial notice of the classification of municipal corporations, and of their advancement, reduction, and ~~surrender of powers~~dissolution.

Sec. 703.31. As used in sections 703.31 to 703.39 of the Revised Code:

"Date the dissolution is effective" means the date the election result is certified under section 703.33 of the Revised Code or the date the attorney general files a certified copy of a court's order of dissolution with the secretary of state, auditor of state, and county recorder, as applicable, under section 118.31 or 703.34 of the Revised Code.

"Period when a dissolution is in question" means the period beginning on the date a petition under section 703.33 of the Revised Code is presented or a legal action is filed by the attorney general under section 118.31 or 703.34 of the Revised Code and ending the date the result of the election under section 703.33 of the Revised Code is certified or the decision of the court of common pleas under section 118.31 or 703.34 of the Revised Code is declared.

"Transition period" means the period beginning on the date the dissolution is effective and ending on the date the transition supervisory board determines all outstanding debts, obligations, and liabilities of the dissolved village have been resolved, all real and personal property of the dissolved village has been transferred or otherwise disposed of, and all utility property and utility services have been transferred.

"Utility services" means electric, water, sewer, and other similar utilities.

Sec. 703.32. The process for dissolving a village, whether the dissolution is determined under section 118.31, 703.33, or 703.34 of the Revised Code, shall be conducted in accordance with sections 703.31 to 703.39 of the Revised Code.

Sec. ~~703.20~~ 703.33. (A) Villages may ~~surrender their corporate powers~~ voluntarily dissolve upon the petition to the legislative authority of the village, or, in the alternative, to the board of elections of the county in which the largest portion of the population of the village resides as provided in division (B)(1) of this section, of at least thirty per cent of the electors thereof, to be determined by the number voting at the last regular municipal election, and by an affirmative vote of a majority of the electors at ~~a special election, which shall be provided for by the legislative authority or, in the alternative, at a~~ the next general ~~or special~~ election ~~as provided for by the board of elections under division (B)(1) of this section. The election shall be conducted, canvassed, and the result certified and made known as at regular municipal elections~~ held in an even-numbered year occurring after the period ending ninety days after the filing of the petition with the legislative authority. If the result of the election is in favor of the surrender, the village clerk or, in the alternative, the board of elections shall certify the result to the secretary of state, the auditor of state, and the county recorder, who shall record it in their respective offices. ~~The corporate powers of the village shall cease upon the recording of the certified election results in the county recorder's office.~~

(B)(1) If the legislative authority of a village fails to act upon the petition within thirty days after receipt of the petition, the electors may present the petition to the board of elections to determine the validity and sufficiency of the signatures. The petition shall be governed by the rules of section 3501.38 of the Revised Code. The petition shall be filed with the board of elections of the county in which the largest portion of the population of the village resides. If the petition is sufficient, the board of elections shall submit the question "Shall the village of __________ surrender its corporate powers?" for the approval or rejection of the electors of the village at the next general ~~or special~~ election, held in ~~any~~ an even-numbered year, occurring after the period ending ninety days after the filing of the petition with the board. If the result of the election is in favor of the surrender, the board of elections shall certify the results to the secretary of state, the auditor of state, and the county recorder, who shall record it in their respective offices. The corporate powers of the village shall cease upon the recording of the certified election results in the county recorder's office.

(2) In addition to filing the petition with the board of elections as provided in division (B)(1) of this section, a copy of the petition shall be filed with the board of township trustees of each township affected by the surrender.

~~(C) The auditor of state shall assist in facilitating a timely and systematic manner for complying with the requirements of section 703.21 of the Revised Code.~~

Sec. ~~703.201~~ 703.34. (A) As used in this section, "condition for ~~surrendering corporate powers~~the dissolution of a village" means any of the following:

(1) The village has been declared to be in a fiscal emergency under Chapter 118. of the Revised Code and has been in fiscal emergency for at least three consecutive years with little or no improvement on the conditions that caused the fiscal emergency declaration.

(2) The village has failed to properly follow applicable election laws for at least two consecutive election cycles for any one elected office in the village.

(3) The village has been declared during an audit conducted under section 117.11 of the Revised Code to be unauditable under section 117.41 of the Revised Code in at least two consecutive audits.

(4) The village does not provide at least two services typically provided by municipal government, such as police or fire protection, garbage collection, water or sewer service, emergency medical services, road maintenance, or similar services. "Services" does not include any administrative service or legislative action.

(5) The village has failed for any fiscal year to adopt the tax budget required by section 5705.28 of the Revised Code.

(6) A village elected official has been convicted of theft in office, either under section 2921.41 of the Revised Code or an equivalent criminal statute at the federal level, at least two times in a period of ten years. The convicted official with respect to those convictions may be the same person or different persons.

(B) If the auditor of state finds, in an audit report issued under division (A) or (B) of section 117.11 of the Revised Code of a village that has a population of one hundred fifty persons or less and consists of less than two square miles, that the village meets at least two conditions for ~~surrendering corporate powers~~the dissolution of a village, the auditor of state shall send a certified copy of the report together with a letter to the attorney general requesting the attorney general to institute legal action to dissolve the village in accordance with division (C) of this section. The report and letter shall be sent to the attorney general within ten business days after the auditor of state's transmittal of the report to the village. The audit report transmitted to the village shall be accompanied by a notice to the village of the auditor's intent to refer the report to the attorney general for legal action in accordance with this section.

(C) Within twenty days of receipt of the auditor of state's report and letter, the attorney general may file a legal action in the court of common pleas on behalf of the state to request the dissolution of the village that is the subject of the audit report. If a legal action is filed, the court shall hold a hearing within ninety days after the date the attorney general files the legal action with the court. Notice of the hearing shall be filed with the attorney general, the clerk of the village that is the subject of the action, and each fiscal officer of a township located wholly or partly within the village.

At the hearing on dissolution, the court shall determine if the village has a population of one hundred fifty persons or less, consists of less than two square miles, and meets at least two conditions for ~~surrendering corporate powers~~the dissolution of a village. If the court so finds, it the court shall order the dissolution of the village ~~and provide for the surrender of corporate powers~~ , which shall proceed in accordance with ~~section 703.21~~ sections 703.31 to 703.39 of the Revised Code. The attorney general shall file a certified copy of the court's order of dissolution with the secretary of state and the county recorder of the county in which the village is situated, who shall record it in their respective offices. ~~Upon the recording in the county recorder's office, the corporate powers of the village shall cease.~~

(D) For purposes of this section, the population of a village shall be the population determined either at the last preceding federal decennial census or according to population estimates certified by the department of development between decennial censuses.

(E) The procedure in this section is in addition to the procedure of section ~~703.20~~ 703.33 of the Revised Code for the ~~surrender of the corporate powers~~ dissolution of a village.

Sec. 703.35. During the period when a dissolution is in question, both of the following apply:

(A) The legislative authority of the village shall not create any new debts, obligations, or liabilities except to the extent the debt, obligation, or liability is necessary in connection with the continued provision of the village's utilities consistent with prudent utility practice.

(B) The legislative authority of the village shall select an official or employee of the village who is knowledgeable on village matters to serve as a representative during a dissolution, should one occur, as specified under section 703.361 of the Revised Code.

Sec. 703.36. On the date the dissolution is effective, all of the following apply:

(A) The village ceases to exist.

(B) The corporate powers of the village cease.

(C) The village officials cease to hold office. An official elected to start a term on or after the date the dissolution is effective shall not take office.

(D) An issue voted on and scheduled to take effect on or after the date the dissolution is effective, other than tax levies and special assessments preserved under section 703.371 of the Revised Code, shall not take effect.

(E) A charter, if applicable, and all ordinances and resolutions of the village, except for tax levy and special assessment ordinances and resolutions preserved under section 703.371 of the Revised Code and ordinances and resolutions necessary to maintain such tax levies and special assessments, are extinguished. Except as provided in division (H) of section 703.371 of the Revised Code, all resolutions of the township or townships into which the village dissolved apply throughout the township's newly included territory, including zoning regulations enacted by a board of township trustees under Chapter 519. of the Revised Code except as provided in sections 303.22 and 519.22 of the Revised Code. Except as provided in sections 303.22 and 519.22 of the Revised Code, county zoning regulations enacted by a board of county commissioners apply throughout the township's newly included territory as applicable.

(F) A transition supervisory board exists, in accordance with section 703.361 of the Revised Code.

(G) The territory of the village becomes part of the township or townships in which the village territory is located, along existing township boundaries. If there is uncertainty in this regard, the transition supervisory board shall resolve the uncertainty.

(H) All leases to which the dissolved village was a party terminate in accordance with the lease agreement. If a lease agreement does not have a provision governing the circumstances, the transition supervisory board shall resolve the lease.

Sec. 703.361. (A)(1) A transition supervisory board consists of the following three voting members:

(a) The auditor of the county wherein a majority of the village territory was located;

(b) A member of the board of county commissioners, selected by the board of county commissioners, of the county wherein a majority of the village territory was located;

(2) A township trustee or the township fiscal officer, as determined by the board of township trustees, of each township assuming territory of the dissolved village shall serve on the board as a nonvoting member.

(B) The county auditor is the chair of the board.

(D) The members of the board are not liable, and shall be held harmless, in any matter in which the board acts in accordance with sections 703.31 to 703.39 of the Revised Code, except for liability imposed as a result of a finding for recovery or other citation in an audit conducted by, or on behalf of, the auditor of state.

(E) The transition supervisory board shall appoint and supervise a receiver-trustee. The board shall select a receiver-trustee from a list of persons provided to the board by the auditor of state. The board may replace the receiver-trustee as necessary with approval of the auditor of state.

(F) The village representative selected under section 703.35 of the Revised Code, the person serving as fiscal officer of the village before it dissolved, and the person serving as the primary legal counsel for the village before it dissolved shall provide consultation to the board as requested by the board. If the legislative authority of a village failed to select a representative under section 703.35 of the Revised Code, the board shall select the village representative.

(G) The board shall continue in existence until the date the auditor of state provides the board the final audit or final agreed-upon procedure audit under section 703.38 of the Revised Code.

Sec. 703.362. The receiver-trustee shall perform the following duties:

(A) Resolve the outstanding debts, obligations, and liabilities of the dissolved village;

(B) Approve necessary operations and budgetary functions of the dissolved village;

(C) Settle or resolve any legal claims against the dissolved village existing on the date the dissolution is effective or brought within ninety days after the day the receiver-trustee initially is appointed by the transition supervisory board, as provided under section 703.39 of the Revised Code;

(D) Administer and collect taxes and special assessments levied by the legislative authority of the dissolved village in accordance with section 703.371 of the Revised Code during the transition period;

(E) Wind down the involvement of the dissolved village in community improvement corporations, special improvement districts, and tax increment financing arrangements as provided in sections 703.376, 703.377, and 703.378 of the Revised Code;

(F) Dispose of or transfer the dissolved village's real and personal property as provided in section 703.373 of the Revised Code;

(G) Manage the dissolved village's utility services until the utility services are transferred under section 703.374 of the Revised Code;

(H) Manage the response to public records requests until the records are transferred under section 703.375 of the Revised Code;

(I) Perform all other duties assigned to the receiver-trustee under sections 703.31 to 703.39 of the Revised Code or assigned to the transition supervisory board under those sections and delegated by the board to the receiver-trustee;

(J) Conduct all other necessary business of the dissolved village to conclude the village's affairs.

Sec. 703.37. During the transition period, all of the following apply:

(A) The dissolved village's real and personal property shall be disposed of or transferred as provided under section 703.373 of the Revised Code.

(B) The dissolved village's utility services shall be managed and transferred as provided under section 703.374 of the Revised Code.

(D) Any funds resulting from a legal settlement that should be provided to the dissolved village shall be provided to the receiver-trustee.

Sec. 703.371. (A) All taxes and special assessments levied by the legislative authority of the dissolved village, including taxes levied in accordance with Chapters 718. and 5745. of the Revised Code, shall continue to be collected after the date the dissolution is effective to the extent that the receiver-trustee determines that the revenue is needed to pay the outstanding debts, obligations, and liabilities of the village and may lawfully be used for that purpose.

During the transition period, the receiver-trustee shall administer and receive payments or settlements of such taxes and special assessments. After the transition period, the fiscal officer of the township that assumed the most dissolved village territory shall administer and receive payments or settlements of such taxes and special assessments.

Except as provided in division (G) of this section, revenue from taxes and special assessments levied by the legislative authority of the dissolved village shall be used solely to pay the outstanding debts, obligations, and liabilities of the village.

(B) A property tax or special assessment levied by the legislative authority of a dissolved village that is not needed to pay the outstanding debts, obligations, and liabilities of the village or that cannot lawfully be used for that purpose shall not be levied after the tax year that includes the date the dissolution is effective. Within thirty days after that date, the receiver-trustee or township fiscal officer that administers the tax or assessment shall send notice to the county auditor and each other member of the county budget commission of each county in which the territory of the village is located identifying each property tax levy and special assessment subject to this division and specifying the date the dissolution is effective.

(C) A property tax or special assessment levied and collected in accordance with division (A) of this section after the tax year that includes the date the dissolution is effective shall not be levied after the tax year that includes the date that all outstanding debts, obligations, and liabilities of the dissolved village are paid in full. Within thirty days after that date, the receiver-trustee or township fiscal officer that administers the tax or assessment shall send notice to the county auditor and each other member of the county budget commission of each county in which the tax or assessment is levied identifying each property tax levy and special assessment subject to this division and specifying the date that all outstanding debts, obligations, and liabilities of the village were paid in full.

(D) A tax levied by the legislative authority of a dissolved village in accordance with Chapter 718. or 5745. of the Revised Code that is not needed to pay the outstanding debts, obligations, and liabilities of the village or that cannot be used for such purposes shall not be levied in any taxable year beginning on or after the date that the dissolution is effective. Within thirty days after that date, the receiver-trustee or township fiscal officer that administers the tax shall send notice to the tax commissioner identifying each tax subject to this division and specifying the date the dissolution is effective.

(E) A tax levied in accordance with Chapter 718. or 5745. of the Revised Code and collected in accordance with division (A) of this section after the date the dissolution is effective shall not be levied in any taxable year beginning on or after the date that all outstanding debts, obligations, and liabilities of the dissolved village are paid in full. Within thirty days after that date, the receiver-trustee or the fiscal officer that administers the tax shall immediately send notice to the tax commissioner identifying each tax subject to this division and specifying the date that all outstanding debts, obligations, and liabilities of the village were paid in full.

(F) Refunds of illegal, erroneous, or excessive payments of taxes levied by the legislative authority of a dissolved village in accordance with Chapter 718. and 5745. of the Revised Code are "outstanding debts, obligations, and liabilities of the village" for purposes of this section. During the transition period, the receiver-trustee shall estimate the total amount of refunds that are expected to be requested and approved in accordance with section 718.19, 718.91, and 5745.11 of the Revised Code from the date the dissolution is effective until the first day of the fourth year following the last taxable year in which a tax is levied under division (E) of this section.

The receiver-trustee shall deposit, out of amounts collected under this division, an amount equal to one hundred ten per cent of the estimate to a separate fund to be used only for tax refunds under sections 718.19, 718.91, and 5745.11 of the Revised Code. The fund shall be administered by the fiscal officer that administers the taxes.

On the first day of the fourth year following the last taxable year in which a tax is levied under division (E) of this section, the fund shall be extinguished and any remaining balance shall be distributed among the townships into which the village was dissolved and used in accordance with division (G) of this section. Notwithstanding anything in the Revised Code to the contrary, no requests or applications for refund may be submitted or approved in accordance with section 718.19, 718.91, or 5745.11 of the Revised Code after the date the fund is extinguished under this division.

(G) All revenue from taxes and special assessments levied by the legislative authority of a dissolved village that is either not used to pay the outstanding debts, obligations, and liabilities of the village or that cannot be used for that purpose shall be remitted to the township or townships into which the village is dissolved. If more than one township is to receive the remaining revenue, the revenue shall be divided among the townships in proportion to the amount of territory that each township has within the former boundaries of the dissolved village as compared to the total territory within the former boundaries of the dissolved village.

The township or townships may use revenue received under this division for any lawful purpose so long as that purpose directly or indirectly benefits the territory of the dissolved village.

(H) Resolutions related to property taxes levied by the board of trustees of a township shall apply to all taxable property within the former village territory dissolved into the township on and after the first day of the first taxable year in which, pursuant to divisions (B) and (C) of this section, no property taxes are levied on that property by the legislative authority of the dissolved village. This division applies only to resolutions related to property taxes that are levied on all taxable property within the township or all taxable property within the unincorporated territory of the township. Resolutions related to property taxes levied within a portion of the township or a portion of the township's unincorporated territory shall not apply to the territory of the dissolved village unless such resolutions are amended to include such territory.

(I) This section does not apply to taxes or assessments levied within all or part of the territory of a dissolved village by a taxing authority other than the legislative authority of the dissolved village or a board of township trustees. The levy and collection of such taxes and assessments shall continue unimpeded by the dissolution of the village and the revenue derived therefrom shall be used for the purposes described in the ordinance or resolution that levies the tax or assessment.

Sec. 703.372. Except as expressly provided in sections 703.377 and 703.378 of the Revised Code, the township or townships into which the territory of a village is dissolved do not assume the voted debts, obligations, or liabilities of the village.

Unvoted debt serviced by property taxes levied within the ten-mill limitation shall be assumed by the township or townships into which the territory of the village is dissolved in proportion to the total assessed valuation of territory that each township has within the former boundaries of the dissolved village as compared to the total assessed valuation of all territory within the former boundaries of the dissolved village. For the purpose of this section, the total assessed valuation of village territory shall be determined based on the tax year in which the dissolution is effective.

Sec. 703.373. During the transition period, the dissolved village's real and personal property shall be disposed of by the receiver-trustee as follows:

(A) The receiver-trustee shall dispose of the village's liquidable assets, as necessary, to use the proceeds to pay the outstanding debts, obligations, and liabilities of the dissolved village.

(B) The receiver-trustee shall transfer real or personal property related to utility services as provided under section 703.374 of the Revised Code.

(C) The receiver-trustee shall facilitate the transfer of the remaining real and personal property to the township or townships into which the village dissolved, as follows:

(1)(a) If a village is dissolved into one township, the remaining real and personal property vests by operation of law in the township.

(b) If a village is dissolved into two or more townships, the receiver-trustee shall direct the townships to enter into an agreement regarding the distribution of the real and personal property not later than sixty days after the date the dissolution is effective. During that timeframe, the receiver-trustee shall assist the townships in evaluating the dissolved village's real and personal property as necessary. If the townships are not able to enter into an agreement during that timeframe, the receiver-trustee shall decide the distribution of the property to the townships.

(2) The receiver-trustee shall record one of the following with the county recorder of the county where an affected parcel of real property is located, along with one or more affidavits stating facts relating to the title as provided for in section 5301.252 of the Revised Code:

(a) A list of real property that vests by operation of law under this division;

(b) An agreement entered into under this division;

(3) The county recorder shall make appropriate notations in the county records to reflect a transfer under this section. The notations shall include a reference to the county's recorded certificate of dissolution. The recording of a certificate of dissolution or a certified copy thereof, an item recorded under division (C)(2)(a), (b), or (c) of this section, and supporting affidavits serve as sufficient evidence of a transfer of title from the dissolved village to a township or townships. The documents shall be recorded in the same manner as a deed of conveyance, except the receiver-trustee and the affected township or townships are exempt from any fees specified under section 317.32 of the Revised Code.

Sec. 703.374. During the transition period, the dissolved village's utility services, if any, shall be handled as follows:

(A) The provision of utility services shall be uninterrupted.

(B) The receiver-trustee shall manage the continued provision of the utility services until the responsibility is transferred under this section.

(C) The receiver-trustee shall transfer management of the utility services, as appropriate, to another entity that lawfully may provide those utility services. The receiver-trustee shall transfer the respective real or personal property to the same entity.

Sec. 703.375. (A) During the transition period, the dissolved village's public records shall be handled as follows:

(1) The receiver-trustee shall evaluate the dissolved village's records retention schedule to determine if it is viable for future responses to public records requests. If it is viable, the receiver-trustee shall follow the schedule in responding to requests. If it is not viable, the receiver-trustee, with assistance from the county records commission of the county wherein a majority of the village territory was located, shall create a records retention schedule applicable to the dissolved village's records.

(2) Requests for the dissolved village's public records shall be submitted to the receiver-trustee. The receiver-trustee shall respond to those requests in accordance with section 149.43 of the Revised Code. If the receiver-trustee transferred records under division (B) of this section before receiving a request, the receiver-trustee shall notify the requestor that the records may be available via request to the entity or township to which the records were transferred.

(B) Within the first ninety days after the date the dissolution is effective, the receiver-trustee, with assistance from the county records commission of the county wherein a majority of the village territory was located, shall review the records of the dissolved village. The review shall determine which records may be disposed of, which records are related to utility services and shall be transferred to the entity assuming the management of the utility service, and which records shall be transferred to the township or townships into which the dissolved village dissolved. If necessary, the receiver-trustee and commission may seek the assistance of an entity or township for this purpose.

(C) Beginning on the date the transition period is over, the township or townships to which the records of the dissolved village were transferred under this section are responsible for responding to requests for those records.

Sec. 703.376. (A) If the dissolved village designated a community improvement corporation as its agency for the purposes described in division (A)(1) of section 1724.10 of the Revised Code, one of the following shall occur during the transition period:

(1) If the dissolving village is the only subdivision that designated the community improvement corporation as its agency, the community improvement corporation shall be dissolved;

(2) If more than one subdivision designated the community improvement corporation as its agency, the community improvement corporation shall either: (a) dissolve and apportion its remaining assets among each such subdivision in accordance with the articles of incorporation, or (b) apportion and liquidate the dissolving village's share of the community improvement corporation's assets and amend the articles of incorporation to reflect that the community improvement corporation is no longer the agency of the dissolving village.

(B) Assets of a community improvement corporation apportioned to a dissolving village under division (A)(1) or (2) of this section shall be disposed of by the receiver-trustee under section 703.373 of the Revised Code. Assets apportioned to subdivisions other than the dissolving village shall either be retained by the community improvement corporation if the community improvement corporation continues to exist, or disposed of under section 1724.07 of the Revised Code if the community improvement corporation is dissolved.

(C) The secretary of state shall cancel the articles of incorporation of a community improvement corporation dissolved under this section, and all rights, privileges, and franchises conferred upon that community improvement corporation by those articles of incorporation then shall cease.

Sec. 703.377. (A) As used in this section:

(1) "Participating political subdivision" and "special improvement district" have the same meanings as in section 1710.01 of the Revised Code.

(2) "Appraised value" has the same meaning as in section 1710.13 of the Revised Code.

(3) "Legislative authority" means the legislative authority of a municipal corporation or board of trustees of a township.

(B) During the period when a dissolution is in question, the board of directors of any special improvement district with respect to which the village is a participating political subdivision shall not create any new debts, obligations, or liabilities except to the extent the debt, obligation, or liability is necessary in connection with the continued provision of the utilities of a participating political subdivision consistent with prudent utility practice.

(C) During the transition period, the receiver-trustee shall call a meeting to consider winding down the affairs of the district or transitioning the affairs of the district that concern the dissolved village to the township or townships that assumed or will assume district territory as a result of the dissolution. Notice of the meeting shall be given as provided in section 1710.05 of the Revised Code to the members of the district, all participating political subdivisions other than the dissolved village, and the township or townships that assumed or will assume district territory as a result of the dissolution.

(D) Upon the affirmative vote of the transition supervisory board, the legislative authority of each township that assumed or will assume district territory as a result of the dissolution, the legislative authorities of all participating political subdivisions other than the dissolved village, and members of the district who collectively own more than fifty per cent of the appraised value of the real property in the district that may be subject to assessment under division (C) of section 1710.06 of the Revised Code, the improvement or services plan for the special improvement district may be amended to replace the dissolving village with the township or townships that assumed or will assume district territory as a result of the dissolution. Upon such a vote, the township or townships assume all rights and responsibilities of the dissolved village related to the special improvement district.

(E) Except as provided in division (D) of this section, the special improvement district shall be dissolved. Once dissolved, all bonds, notes, and other obligations of the district associated with the improvement or services plan shall be paid. Thereafter, the plan shall be repealed. All special assessments imposed to pay for the costs of the plan shall continue until all bonds, notes, and other obligations of the district are paid. During the transition period, the receiver-trustee shall assume the rights and obligations of the dissolved village with respect to such assessments. After the transition period, the township or townships that assumed territory of the special improvement district as a result of the dissolution shall assume such rights and obligations.

Upon fully paying off all bonds, notes, and other obligations, the board of directors of the special improvement district shall notify the legislative authority of each participating subdivision and either the receiver-trustee or, if the transition period is over, legislative authority of the township or townships that assumed district territory as a result of the dissolution. Upon receiving such notice, the participating political subdivisions and either the receiver-trustee or the township or townships that assumed district territory shall discontinue the levy of any special assessments imposed to pay for costs of the plan.

(F) No rights or obligations of any person under any contract, or in relation to any bonds, notes, or assessments made under Chapter 1710. of the Revised Code, shall be affected by the dissolution of the district, except with the consent of that person or by order of a court with jurisdiction over the matter. Upon dissolution of a district, any assets or rights of the district, after payment of all bonds, notes, or other obligations of the district, shall be deposited in a special account in the treasury of each participating political subdivision, prorated based on the total appraised value of the real property located within the subdivision and the former district as compared to the total appraised value of all real property located within the former district. All funds deposited to such a special account shall be used for the benefit of the territory that made up the district.

Assets or rights apportioned to the dissolved village shall be disposed of by the receiver-trustee under section 703.373 of the Revised Code or, if the transition period is over, dispensed to the township or townships that assumed district property as a result of the dissolution, prorated based on the total appraised value of former district property assumed by each such township. Such assets and rights shall be used for the benefit of the territory that made up the district.

Sec. 703.378. Notwithstanding any provision of the Revised Code to the contrary, a township into which property subject to service payments in lieu of taxes required under section 725.04, 5709.42, or 5709.46 of the Revised Code, or services charges in lieu of taxes required under section 1728.11 or 1728.111 of the Revised Code, is dissolved in accordance with sections 703.31 to 703.39 of the Revised Code shall assume all rights and responsibilities under sections 725.04, 1728.11, 1728.111, 5709.40 to 5709.43, or 5709.45 to 5709.47 of the Revised Code of the dissolved village that granted exemption of the property.

Sec. 703.379. (A) As used in this section, "local government fund payments" means payments a dissolved village would receive under sections 5747.503, 5747.51, and 5747.53, and division (C) of section 5747.50 of the Revised Code, as applicable, if not for the dissolution of the village.

(B) A county budget commission of a county in which all or part of the former territory of the dissolved village is located shall exclude the dissolved village from any apportionment plan adopted under section 5747.51 or 5747.53 of the Revised Code on or after the first day of the transition period. A county budget commission shall not amend an apportionment plan adopted under one of those sections before the first day of the transition period for the purpose of reallocating county undivided local government fund payments apportioned to the dissolved village.

(C) All local government fund payments to a dissolved village shall continue as described in divisions (D) and (E) of this section until the end of the last calendar year for which an apportionment plan adopted by a county budget commission under section 5747.51 or 5747.53 of the Revised Code includes allocations of county undivided local government fund revenue to the dissolved village.

(D) During the transition period, local government fund payments to the dissolved village shall be distributed to the receiver-trustee for disposal under section 703.373 of the Revised Code.

(E) After the transition period, local government fund payments to the dissolved village shall be distributed directly to the fiscal officer of the township that assumed the most dissolved village territory. The fiscal officer shall first apply the revenue to any outstanding debts, obligations, and liabilities of the dissolved village. Any remaining revenue shall then be dispensed to the township or townships into which the territory of the dissolved village was dissolved. Such remaining revenue shall be divided in the same proportions and used for the same purposes as tax and special assessment revenue under division (G) of section 703.371 of the Revised Code.

Sec. 703.38. (A) On the date the transition period is over, the transition supervisory board shall notify the auditor of state and all entities affected by, or participating in, the dissolution that the transition period is over.

(B) Not later than thirty days after receiving the notice required under division (A) of this section, the auditor of state shall commence a final audit or final agreed-upon procedure audit. The auditor of state shall provide the completed final audit or final agreed-upon procedure audit to the transition supervisory board.

Sec. 703.39. Any potential claimant with a potential claim against the dissolving village shall bring the claim not later than ninety days after the day the receiver-trustee initially is appointed by the transition supervisory board. A claim brought after that date is invalid.

Sec. 1724.07. In Except as provided in section 703.376 of the Revised Code, in the event of ~~any~~ voluntary or involuntary dissolution, liquidation, or failure to reinstate the articles after cancellation of the community improvement corporation, any remaining assets shall be applied as follows:

(A) In the case of an economic development corporation, to such civic projects or public charitable purposes in the community or area as may be determined by the directors with the approval of the court of common pleas of the county wherein the corporation has its principal place of business;

(B) In the case of a county land reutilization corporation, as determined by the board of county commissioners with the written approval of the county treasurer. Pending the determination, the remaining assets shall be transferred to the general fund of the county to be held and accounted for in a separate account until applied as determined by the board.

Sec. 5705.14. No transfer shall be made from one fund of a subdivision to any other fund, by order of the court or otherwise, except as follows:

(A) The unexpended balance in a bond fund that is no longer needed for the purpose for which such fund was created shall be transferred to the sinking fund or bond retirement fund from which such bonds are payable.

(B) The unexpended balance in any specific permanent improvement fund, other than a bond fund, after the payment of all obligations incurred in the acquisition of such improvement, shall be transferred to the sinking fund or bond retirement fund of the subdivision; provided that if such money is not required to meet the obligations payable from such funds, it may be transferred to a special fund for the acquisition of permanent improvements, or, with the approval of the court of common pleas of the county in which such subdivision is located, to the general fund of the subdivision.

(C)(1) Except as provided in division (C)(2) of this section, the unexpended balance in the sinking fund or bond retirement fund of a subdivision, after all indebtedness, interest, and other obligations for the payment of which such fund exists have been paid and retired, shall be transferred, in the case of the sinking fund, to the bond retirement fund, and in the case of the bond retirement fund, to the sinking fund; provided that if such transfer is impossible by reason of the nonexistence of the fund to receive the transfer, such unexpended balance, with the approval of the court of common pleas of the county in which such division is located, may be transferred to any other fund of the subdivision.

(2) Money in a bond fund or bond retirement fund of a city, local, exempted village, cooperative education, or joint vocational school district may be transferred to a specific permanent improvement fund provided that the county budget commission of the county in which the school district is located approves the transfer upon its determination that the money transferred will not be required to meet the obligations payable from the bond fund or bond retirement fund. In arriving at such a determination, the county budget commission shall consider the balance of the bond fund or bond retirement fund, the outstanding obligations payable from the fund, and the sources and timing of the fund's revenue.

(D) The unexpended balance in any special fund, other than an improvement fund, existing in accordance with division (D), (F), or (G) of section 5705.09 or section 5705.12 of the Revised Code, may be transferred to the general fund or to the sinking fund or bond retirement fund after the termination of the activity, service, or other undertaking for which such special fund existed, but only after the payment of all obligations incurred and payable from such special fund.

(E) Money may be transferred from the general fund to any other fund of the subdivision.

(F) Moneys retained or received by a county under section 4501.04 or division (A)(2) of section 5735.27 of the Revised Code may be transferred from the fund into which they were deposited to the sinking fund or bond retirement fund from which any principal, interest, or charges for which such moneys may be used is payable.

(G) Moneys retained or received by a municipal corporation under section 4501.04 or division (A)(1) of section 5735.27 of the Revised Code may be transferred from the fund into which they were deposited to the sinking fund or bond retirement fund from which any principal, interest, or charges for which such moneys may be used is payable.

(H)(1) Money may be transferred from the county developmental disabilities general fund to the county developmental disabilities capital fund established under section 5705.091 of the Revised Code or to any other fund created for the purposes of the county board of developmental disabilities, so long as money in the fund to which the money is transferred can be spent for the particular purpose of the transferred money. The county board of developmental disabilities may request, by resolution, that the board of county commissioners make the transfer. The county board of developmental disabilities shall transmit a certified copy of the resolution to the board of county commissioners. Upon receiving the resolution, the board of county commissioners may make the transfer. Money transferred to a fund shall be credited to an account appropriate to its particular purpose.

(2) An unexpended balance in an account in the county developmental disabilities capital fund or any other fund created for the purposes of the county board of developmental disabilities may be transferred back to the county developmental disabilities general fund. The transfer may be made if the unexpended balance is no longer needed for its particular purpose and all outstanding obligations have been paid. Money transferred back to the county developmental disabilities general fund shall be credited to an account for current expenses within that fund. The county board of developmental disabilities may request, by resolution, that the board of county commissioners make the transfer. The county board of developmental disabilities shall transmit a certified copy of the resolution to the board of county commissioners. Upon receiving the resolution, the board of county commissioners may make the transfer.

(I) Money may be transferred from the public assistance fund established under section 5101.161 of the Revised Code to either of the following funds, so long as the money to be transferred from the public assistance fund may be spent for the purposes for which money in the receiving fund may be used:

(1) The children services fund established under section 5101.144 of the Revised Code;

(2) The child support enforcement administrative fund established, as authorized under rules adopted by the director of job and family services, in the county treasury for use by any county family services agency.

(J) Notwithstanding this section, money in any fund or account of a village dissolved in accordance with sections 703.31 to 703.39 of the Revised Code may be transferred by the receiver-trustee to a special account for the purpose of paying the debts, obligations, and liabilities of the dissolved village or to the general fund of any township into which the territory of the village is dissolved for any purpose that directly or indirectly benefits the former territory of the dissolved village.

(K) Except in the case of transfer pursuant to division (E) or (J) of this section, transfers authorized by this section shall only be made by resolution of the taxing authority passed with the affirmative vote of two-thirds of the members.

Section 2. That existing sections 118.27, 118.31, 317.18, 703.20, 703.201, 703.23, 1724.07, and 5705.14 of the Revised Code are hereby repealed.

Section 3. That section 703.21 of the Revised Code is hereby repealed.