Text of OH HB 838 (2026)
Prohibit certain coverage for gender reassignment surgery
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As introduced
75,139 characters
As Introduced
136th General Assembly
Regular Session
H. B. No. 838
2025-2026
Representative Williams
To amend sections 4117.10, 5747.50, 5747.502,
5747.504, 5747.505, 5747.51, and 5747.53 and to
enact sections 9.051, 5164.21, and 5747.506 of
the Revised Code to prohibit coverage for gender
reassignment surgery under Medicaid and state
and local authority employee health insurance
plans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4117.10, 5747.50, 5747.502,
5747.504, 5747.505, 5747.51, and 5747.53 be amended and sections
9.051, 5164.21, and 5747.506 of the Revised Code be enacted to
read as follows:
Sec. 9.051.
(A) As used in this section:
(1) "Local authority" has the same meaning as in section
5747.502 of the Revised Code.
(2) "Policy, contract, or plan" means a policy, contract,
or plan of one or more insurance companies, medical care
corporations, health care corporations, health maintenance
organizations, or other entities that provide health, medical,
hospital, or surgical coverage, benefits, or services. "Policy,
contract, or plan" includes a plan that is associated with a
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self-insurance program and a policy, contract, or plan that
implements a collective bargaining agreement.
(3) "Gender reassignment surgery" has the same meaning as
in section 3129.01 of the Revised Code.
(B) On and after the effective date of this section,
neither the state or a local authority shall provide a policy,
contract, or plan to its elected or appointed officers or
employees that includes coverage, benefits, or services for
gender reassignment surgery.
(C) Annually, on or before the last day of April, each
local authority shall certify to the attorney general whether it
is in compliance with division (B) of this section.
(D) Annually, on or before the fifteenth day of June, the
attorney general shall certify to the tax commissioner a list of
each local authority that has certified its noncompliance, or
failed to certify compliance, with division (B) of this section.
Sec. 4117.10. (A) An agreement between a public employer
and an exclusive representative entered into pursuant to this
chapter governs the wages, hours, and terms and conditions of
public employment covered by the agreement. If the agreement
provides for a final and binding arbitration of grievances,
public employers, employees, and employee organizations are
subject solely to that grievance procedure and the state
personnel board of review or civil service commissions have no
jurisdiction to receive and determine any appeals relating to
matters that were the subject of a final and binding grievance
procedure. Where no agreement exists or where an agreement makes
no specification about a matter, the public employer and public
employees are subject to all applicable state or local laws or
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ordinances pertaining to the wages, hours, and terms and
conditions of employment for public employees. All of the
following prevail over conflicting provisions of agreements
between employee organizations and public employers:
(1) Laws pertaining to any of the following subjects:
(a) Civil rights;
(b) Affirmative action;
(c) Unemployment compensation;
(d) Workers' compensation;
(e) The retirement of public employees;
(f) Residency requirements;
(g) The minimum educational requirements contained in the
Revised Code pertaining to public education including the
requirement of a certificate by the fiscal officer of a school
district pursuant to section 5705.41 of the Revised Code;
(h) The provisions of division (A) of section 124.34 of
the Revised Code governing the disciplining of officers and
employees who have been convicted of a felony;
(i) The minimum standards promulgated by the director of
education and workforce pursuant to division (D) of section
3301.07 of the Revised Code.
(2) The law pertaining to the leave of absence and
compensation provided under section 5923.05 of the Revised Code,
if the terms of the agreement contain benefits which are less
than those contained in that section or the agreement contains
no such terms and the public authority is the state or any
agency, authority, commission, or board of the state or if the
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public authority is another entity listed in division (B) of
section 4117.01 of the Revised Code that elects to provide leave
of absence and compensation as provided in section 5923.05 of
the Revised Code;
(3) The law pertaining to the leave established under
section 5906.02 of the Revised Code, if the terms of the
agreement contain benefits that are less than those contained in
section 5906.02 of the Revised Code;
(4) The law pertaining to excess benefits prohibited under
section 3345.311 of the Revised Code with respect to an
agreement between an employee organization and a public employer
entered into on or after September 29, 2015;
(5) state State employee work location policies with
respect to an agreement between an employee organization and a
public employer entered into on or after the effective date of
this amendmentSeptember 30, 2025;
(6) The law prohibiting coverage for gender reassignment
surgery in health benefit plans for state and local authority
employees under section 9.051 of the Revised Code with respect
to an agreement between an employee organization and a public
employer entered into on or after the effective date of this
amendment.
Except for sections 306.08, 306.12, 306.35, and 4981.22 of
the Revised Code and arrangements entered into thereunder, and
section 4981.21 of the Revised Code as necessary to comply with
section 13(c) of the "Urban Mass Transportation Act of 1964," 87
Stat. 295, 49 U.S.C.A. 1609(c), as amended, and arrangements
entered into thereunder, this chapter prevails over any and all
other conflicting laws, resolutions, provisions, present or
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future, except as otherwise specified in this chapter or as
otherwise specified by the general assembly. Nothing in this
section prohibits or shall be construed to invalidate the
provisions of an agreement establishing supplemental workers'
compensation or unemployment compensation benefits or exceeding
minimum requirements contained in the Revised Code pertaining to
public education or the minimum standards promulgated by the
director of education and workforce pursuant to division (D) of
section 3301.07 of the Revised Code.
(B) The public employer shall submit a request for funds
necessary to implement an agreement and for approval of any
other matter requiring the approval of the appropriate
legislative body to the legislative body within fourteen days of
the date on which the parties finalize the agreement, unless
otherwise specified, but if the appropriate legislative body is
not in session at the time, then within fourteen days after it
convenes. The legislative body must approve or reject the
submission as a whole, and the submission is deemed approved if
the legislative body fails to act within thirty days after the
public employer submits the agreement. The parties may specify
that those provisions of the agreement not requiring action by a
legislative body are effective and operative in accordance with
the terms of the agreement, provided there has been compliance
with division (C) of this section. If the legislative body
rejects the submission of the public employer, either party may
reopen all or part of the entire agreement.
As used in this section, "legislative body" includes the
governing board of a municipal corporation, school district,
college or university, village, township, or board of county
commissioners or any other body that has authority to approve
the budget of their public jurisdiction and, with regard to the
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state, "legislative body" means the controlling board.
(C) The chief executive officer, or the chief executive
officer's representative, of each municipal corporation, the
designated representative of the board of education of each
school district, college or university, or any other body that
has authority to approve the budget of their public
jurisdiction, the designated representative of the board of
county commissioners and of each elected officeholder of the
county whose employees are covered by the collective
negotiations, and the designated representative of the village
or the board of township trustees of each township is
responsible for negotiations in the collective bargaining
process; except that the legislative body may accept or reject a
proposed collective bargaining agreement. When the matters about
which there is agreement are reduced to writing and approved by
the employee organization and the legislative body, the
agreement is binding upon the legislative body, the employer,
and the employee organization and employees covered by the
agreement.
(D) There is hereby established an office of collective
bargaining in the department of administrative services for the
purpose of negotiating with and entering into written agreements
between state agencies, departments, boards, and commissions and
the exclusive representative on matters of wages, hours, terms
and other conditions of employment and the continuation,
modification, or deletion of an existing provision of a
collective bargaining agreement. Nothing in any provision of law
to the contrary shall be interpreted as excluding the bureau of
workers' compensation and the industrial commission from the
preceding sentence. This office shall not negotiate on behalf of
other statewide elected officials or boards of trustees of state
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institutions of higher education who shall be considered as
separate public employers for the purposes of this chapter;
however, the office may negotiate on behalf of these officials
or trustees where authorized by the officials or trustees. The
staff of the office of collective bargaining are in the
unclassified service. The director of administrative services
shall fix the compensation of the staff.
The office of collective bargaining shall:
(1) Assist the director in formulating management's
philosophy for public collective bargaining as well as planning
bargaining strategies;
(2) Conduct negotiations with the exclusive
representatives of each employee organization;
(3) Coordinate the state's resources in all mediation,
fact-finding, and arbitration cases as well as in all labor
disputes;
(4) Conduct systematic reviews of collective bargaining
agreements for the purpose of contract negotiations;
(5) Coordinate the systematic compilation of data by all
agencies that is required for negotiating purposes;
(6) Prepare and submit an annual report and other reports
as requested to the governor and the general assembly on the
implementation of this chapter and its impact upon state
government.
Sec. 5164.21.
(A) As used in this section, "gender
reassignment surgery" has the same meaning as in section 3129.01
of the Revised Code.
(B) The medicaid program shall not cover gender
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reassignment surgery.
Sec. 5747.50. (A) As used in this section:
(1) "County's proportionate share of the calendar year
2007 LGF and LGRAF distributions" means the percentage computed
for the county under division (B)(1)(a) of section 5747.501 of
the Revised Code.
(2) "County's proportionate share of the total amount of
the local government fund additional revenue formula" means each
county's proportionate share of the state's population as
determined for and certified to the county for distributions to
be made during the current calendar year under division (B)(2)
(a) of section 5747.501 of the Revised Code. If prior to the
first day of January of the current calendar year the federal
government has issued a revision to the population figures
reflected in the estimate produced pursuant to division (B)(2)
(a) of section 5747.501 of the Revised Code, such revised
population figures shall be used for making the distributions
during the current calendar year.
(3) "2007 LGF and LGRAF county distribution base available
in that month" means the lesser of the amounts described in
division (A)(3)(a) and (b) of this section, provided that the
amount shall not be less than zero:
(a) The total amount available for distribution to
counties from the local government fund during the current
month.
(b) The total amount distributed to counties from the
local government fund and the local government revenue
assistance fund to counties in calendar year 2007 less the total
amount distributed to counties under division (B)(1) of this
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section during previous months of the current calendar year.
(4) "Local government fund additional revenue distribution
base available during that month" means the total amount
available for distribution to counties during the month from the
local government fund, less any amounts to be distributed in
that month from the local government fund under division (B)(1)
of this section, provided that the local government fund
additional revenue distribution base available during that month
shall not be less than zero.
(5) "Total amount available for distribution to counties"
means the total amount available for distribution from the local
government fund during the current month less the total amount
available for distribution to municipal corporations during the
current month under division (C) of this section.
(B) On or before the tenth day of each month, the tax
commissioner shall provide for payment to each county an amount
equal to the sum of:
(1) The county's proportionate share of the calendar year
2007 LGF and LGRAF distributions multiplied by the 2007 LGF and
LGRAF county distribution base available in that month, provided
that if the 2007 LGF and LGRAF county distribution base
available in that month is zero, no payment shall be made under
division (B)(1) of this section for the month or the remainder
of the calendar year; and
(2) The county's proportionate share of the total amount
of the local government fund additional revenue formula
multiplied by the local government fund additional revenue
distribution base available during that month.
Money received into the treasury of a county under this
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division shall be credited to the undivided local government
fund in the treasury of the county on or before the fifteenth
day of each month. On or before the twentieth day of each month,
the county auditor shall issue warrants against all of the
undivided local government fund in the county treasury in the
respective amounts allowed as provided in section 5747.51 of the
Revised Code, and the treasurer shall distribute and pay such
sums to the subdivision therein.
(C)(1) As used in division (C) of this section:
(a) "Total amount available for distribution to
municipalities during the current month" means the difference
obtained by subtracting one million dollars from the product
obtained by multiplying the total amount available for
distribution from the local government fund during the current
month by the aggregate municipal share.
(b) "Aggregate municipal share" means the quotient
obtained by dividing the total amount distributed directly from
the local government fund to municipal corporations during
calendar year 2007 by the total distributions from the local
government fund and local government revenue assistance fund
during calendar year 2007.
(c) A municipal corporation's "distribution share" equals
one of the following:
(i) For municipal corporations with a population of more
than fifty thousand, fifty thousand;
(ii) For municipal corporations with a population of less
than one thousand, zero;
(iii) For all other municipal corporations, the municipal
corporation's population.
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(d) A municipal corporation's "distribution percentage"
equals the percentage that a municipal corporation's
distribution share is of the total of all municipal
corporations' distribution shares.
(2) On or before the tenth day of each month, the tax
commissioner shall provide for payment from the local government
fund to each municipal corporation an amount equal to the
product derived by multiplying the municipal corporation's
distribution percentage by the total amount available for
distribution to municipal corporations during the current month.
(3) Payments received by a municipal corporation under
this division shall be paid into its general fund and may be
used for any lawful purpose.
(4) The amount distributed to municipal corporations under
this division during any calendar year shall not exceed the
amount distributed directly from the local government fund to
municipal corporations during calendar year 2007. If that
maximum amount is reached during any month, distributions to
municipal corporations in that month shall be as provided in
divisions (C)(1) and (2) of this section, but no further
distributions shall be made to municipal corporations under
division (C) of this section during the remainder of the
calendar year.
(5) Upon being informed of a municipal corporation's
dissolution, the tax commissioner shall cease providing for
payments to that municipal corporation under division (C) of
this section. The proportionate shares of the total amount
available for distribution to each of the remaining municipal
corporations under this division shall be increased on a pro
rata basis.
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The tax commissioner shall reduce payments under division
(C) of this section to municipal corporations for which reduced
payments are required under section 5747.502, 5747.504, or
section 5747.506 of the Revised Code.
(D) Each municipal corporation which has in effect a tax
imposed under Chapter 718. of the Revised Code shall, no later
than the thirty-first day of August of each year, certify to the
tax commissioner, on a form prescribed by the commissioner, the
amount of income tax revenue collected and refunded by such
municipal corporation pursuant to such chapter during the
preceding calendar year, arranged, when possible, by the type of
income from which the revenue was collected or the refund was
issued. The municipal corporation shall also report the amount
of income tax revenue collected and refunded on behalf of a
joint economic development district or a joint economic
development zone that levies an income tax administered by the
municipal corporation and the amount of such revenue distributed
to contracting parties during the preceding calendar year. The
tax commissioner may withhold payment of local government fund
moneys pursuant to division (C) of this section from any
municipal corporation for failure to comply with this reporting
requirement.
(E)(1) For the purposes of division (E) of this section:
(a) "Eligible taxing district" means a township, township
fire district, or joint fire district for which the total
taxable value of eligible power plants for tax year 2017 is at
least thirty per cent less than the total taxable value of
eligible power plants for tax year 2016.
(b) "Eligible power plant" means a power plant that is
subject to the requirements of 10 C.F.R. part 73.
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(c) "Total taxable value of eligible power plants" of an
eligible taxing district means the total taxable value of the
taxable property of eligible power plants apportioned to the
district as shown in a preliminary assessment or amended
preliminary assessment and listed on the tax list of real and
public utility property.
(d) "Taxable property" has the same meaning as in section
5727.01 of the Revised Code.
(e) "Tax rate" of an eligible taxing district means one of
the following:
(i) For townships, the sum of the rates of levies imposed
under section 505.39, 505.51, or division (I), (J), (U), or (JJ)
of section 5705.19 of the Revised Code and extended on the tax
list of real and public utility property for tax year 2017,
excluding any levy imposed at whatever rate is required to raise
a fixed sum of money;
(ii) For township fire districts and joint fire districts,
the sum of the rates of levies extended on the tax list of real
and public utility property for tax year 2017, excluding any
levy imposed at whatever rate is required to raise a fixed sum
of money.
(2) Each fiscal year from fiscal year 2018 through fiscal
year 2028, the tax commissioner shall compute the following
amount for each eligible taxing district:
(a) For fiscal years 2018 and 2019, the amount obtained by
multiplying the eligible taxing district's tax rate by the
difference obtained by subtracting (i) the total taxable value
of eligible power plants of the district for tax year 2017 from
(ii) the total taxable value of eligible power plants of the
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district for tax year 2016;
(b) For fiscal years 2020 through 2028, ninety per cent of
the amount calculated for the district under division (E)(2)(a)
or (b) of this section for the preceding fiscal year.
The commissioner shall certify the sum of the amounts
calculated for all eligible taxing districts under this division
for a fiscal year to the director of budget and management who,
on or before the seventh day of each month of that fiscal year,
shall transfer from the general revenue fund to the local
government fund one-twelfth of the amount certified.
(3) On or before the tenth day of each month, the tax
commissioner shall provide for payment to each county treasury
in which an eligible taxing district is located an amount equal
to one-twelfth of the amount computed for the district for that
fiscal year under division (E)(2) of this section.
Money received into the treasury of a county under
division (E) of this section shall be credited to the undivided
local government fund in the treasury of the county on or before
the fifteenth day of each month. On or before the twentieth day
of each month, the county auditor shall issue warrants against
the undivided local government fund for the amounts attributable
to each eligible taxing district, and the treasurer shall
distribute and pay such amounts to each eligible taxing
district. Money received by a township fire district or joint
fire district under this division shall be credited to the
district's general fund and may be used for any lawful purpose
of the district. Money received by a township under this
division shall be credited to the township's general fund and
shall be used for the purpose of funding fire, police, emergency
medical, or ambulance services.
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Sec. 5747.502. (A) As used in this section:
(1) "Traffic law photo-monitoring device" has the same
meaning as in section 4511.092 of the Revised Code.
(2) "School zone" has the same meaning as in section
4511.21 of the Revised Code.
(3) "Transportation district" means a territorial district
established by the director of transportation under section
5501.14 of the Revised Code.
(4) "District deputy director" means the person appointed
and assigned by the director of transportation under section
5501.14 of the Revised Code to administer the activities of a
transportation district.
(5) "Gross amount" means the entire amount of traffic
camera fines and fees paid by a driver.
(6) "Local government fund adjustment" or "LGF adjustment"
means the sum of:
(a) The gross amount of all traffic camera fines collected
by a local authority during the preceding fiscal year, as
reported under division (B)(1) of this section, if such a report
is required; plus
(b) The residual adjustment computed for the local
authority under division (B)(4) of this section, if such an
adjustment applies.
(7) "Local government fund payments" or "LGF payments"
means the payments a local authority 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 reductions required by divisions (C) and (D) of this section
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or section 5747.506 of the Revised Code.
(8) "Residual adjustment" means the most recent LGF
adjustment computed for a local authority under division (B)(2)
or (3) of this section minus the sum of the reductions applied
after that computation under division (C) of this section to the
local authority's LGF payments.
(9) "Traffic camera fines" means civil fines for any
violation of any local ordinance or resolution that are based
upon evidence recorded by a traffic law photo-monitoring device.
(10) "Qualifying village" has the same meaning as in
section 5747.503 of the Revised Code.
(11) "Local authority" means a municipal corporation,
county, or township.
(B)(1) Annually, on or before the thirty-first day of
July, any local authority that directly or indirectly collected
traffic camera fines during the preceding fiscal year shall file
a report with the tax commissioner that includes a detailed
statement of the gross amount of all traffic camera fines the
local authority collected during that period and the gross
amount of such fines that the local authority collected for
violations that occurred within a school zone.
(2) Annually, on or before the tenth day of August, and
except as otherwise provided in this division, the commissioner
shall compute a local government fund adjustment for each local
authority that files a report under division (B)(1) of this
section or with respect to which a residual adjustment applies.
Subject to division (B)(3) of this section and section 5747.505
of the Revised Code, the LGF adjustment shall be used by the
commissioner to determine the amount of the reductions required
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under division (C) of this section for each of the next twelve
months, starting with the month in which the LGF adjustment is
computed. After those twelve months, the LGF adjustment ceases
to apply and, if an LGF adjustment continues to be required, the
amount of the reductions required under division (C) of this
section shall be determined based on an updated LGF adjustment
computed under this division.
After the effective date of this amendmentSeptember 30,
2025, no LGF adjustment shall be calculated for a county or
township prohibited from operating a traffic law photo-
monitoring device by section 4511.093 of the Revised Code. An
LGF adjustment that applies to a county or township on the
effective date of this amendment September 30, 2025, ceases to
apply as of that date.
(3) Upon receipt of a report described by division (B)(1)
of this section that is not timely filed, the commissioner shall
do both of the following:
(a) If one or more payments to the local authority has
been withheld under division (D) of this section because of the
local authority's failure to file the report, notify the county
auditor and county treasurer of the appropriate county that the
report has been received and that, subject to division (C) of
this section, payments to the local authority from the undivided
local government fund are to resume.
(b) Compute the local authority's LGF adjustment using the
information in the report. An LGF adjustment computed under this
division shall be used by the commissioner to determine the
amount of the reductions required under division (C) of this
section starting with the next required reduction. The LGF
adjustment ceases to apply on the thirty-first day of the
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ensuing July, following which, if an LGF adjustment continues to
be required, the amount of the reductions required under
division (C) of this section shall be determined based on an
updated LGF adjustment computed under division (B)(2) of this
section.
(4) Annually, on or before the tenth day of August, the
commissioner shall compute a residual adjustment for each local
authority whose LGF adjustment for the preceding year exceeds
the amount by which the local authority's LGF payments were
reduced during that year under division (C) of this section. The
residual adjustment shall be used to compute the LGF adjustment
for the ensuing year under division (B)(2) of this section.
(C) Subject to section 5747.505 of the Revised Code, the
commissioner shall do the following, as applicable, respecting
any local authority to which an LGF adjustment computed under
division (B) of this section applies:
(1) If the local authority is a municipal corporation with
a population of one thousand or more, reduce payments to the
municipal corporation under division (C) of section 5747.50 of
the Revised Code by one-twelfth of the LGF adjustment. If one-
twelfth of the LGF adjustment exceeds the amount of money the
municipal corporation would otherwise receive under division (C)
of section 5747.50 of the Revised Code, the commissioner also
shall reduce payments to the appropriate county undivided local
government fund under division (B) of section 5747.50 of the
Revised Code by an amount equal to the lesser of (a) one-twelfth
of the excess, or (b) the amount of the payment the municipal
corporation would otherwise receive from the fund under section
5747.51 or 5747.53 of the Revised Code.
(2) If the local authority is a township or qualifying
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village, reduce the supplemental payments to the appropriate
county undivided local government fund under section 5747.503 of
the Revised Code by the lesser of one-twelfth of the LGF
adjustment, or the amount of money the township or qualifying
village would otherwise receive under that section. If one-
twelfth of the LGF adjustment exceeds the amount of money the
township or qualifying village would otherwise receive under
section 5747.503 of the Revised Code, the commissioner also
shall reduce payments to the appropriate county undivided local
government fund under division (B) of section 5747.50 of the
Revised Code by an amount equal to the lesser of (a) one-twelfth
of the excess, or (b) the amount of the payment the township or
qualifying village would otherwise receive from the fund under
section 5747.51 or 5747.53 of the Revised Code.
(3) If the local authority is a county, reduce payments to
the appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by an amount
equal to the lesser of (a) one-twelfth of the LGF adjustment, or
(b) the amount of the payment the county would otherwise receive
from the fund under section 5747.51 or 5747.53 of the Revised
Code.
(4) For any local authority, on or before the tenth day of
each month a reduction is made under division (C)(1), (2), or
(3) of this section, make a payment to the local authority in an
amount equal to the lesser of (a) one-twelfth of the gross
amount of traffic camera fines the local authority collected in
the preceding fiscal year for violations that occurred within a
school zone, as indicated on the report filed by the local
authority pursuant to division (B)(1) of this section, or (b)
the amount by which the local authority's LGF payments were
reduced that month pursuant to division (C)(1), (2), or (3) of
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this section. Payments received by a local authority under this
division shall be used by the local authority for school safety
purposes.
(D) Subject to section 5747.505 of the Revised Code, upon
discovery, based on information in the commissioner's
possession, that a local authority required to file a report
under division (B)(1) of this section has failed to do so, the
commissioner shall do the following, as applicable:
(1) If the local authority is a municipal corporation with
a population of one thousand or more, cease providing for
payments to the municipal corporation under section 5747.50 of
the Revised Code beginning with the next required payment and
until such time as the report is received by the commissioner;
(2) If the local authority is a township or qualifying
village, reduce the supplemental payments to the appropriate
county undivided local government fund under section 5747.503 of
the Revised Code by an amount equal to the amount of such
payments the local authority would otherwise receive under that
section, beginning with the next required payment and until such
time as the report is received by the commissioner;
(3) For any local authority, reduce payments to the
appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by an amount
equal to the amount of such payments the local authority would
otherwise receive under section 5747.51 or 5747.53 of the
Revised Code, beginning with the next required payment and until
such time as the report is received by the commissioner;
(4) For any local authority, notify the county auditor and
county treasurer that such payments are to cease until the
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commissioner notifies the auditor and treasurer under division
(E) of this section that the payments are to resume.
(E) The commissioner shall notify the county auditor and
county treasurer on or before the day the commissioner first
reduces a county undivided local government fund payment to that
county under division (C) of this section. The notice shall
include the full amount of the reduction, a list of the local
authorities to which the reduction applies, and the amount of
reduction attributed to each such local authority. The
commissioner shall send an updated notice to the county auditor
and county treasurer any time the amount the reduction
attributed to any local authority changes.
A county treasurer that receives a notice from the
commissioner under this division or division (B)(3)(a) or (D)(4)
of this section shall reduce, cease, or resume payments from the
undivided local government fund to the local authority that is
the subject of the notice as specified by the commissioner in
the notice. Unless otherwise specified in the notice, the
payments shall be reduced, ceased, or resumed beginning with the
next required payment.
(F)(1) There is hereby created in the state treasury the
Ohio highway and transportation safety fund. On or before the
tenth day of each month, the commissioner shall deposit in the
fund an amount equal to the total amount by which payments to
local authorities were reduced or ceased under division (C) or
(D) of this section minus the total amount of payments made
under division (C)(4) of this section. Except as provided in
division (F)(2) of this section, the amount deposited with
respect to a local authority shall be credited to an account to
be created in the fund for the transportation district in which
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that local authority is located. If the local authority is
located within more than one transportation district, the amount
credited to the account of each such transportation district
shall be prorated on the basis of the number of centerline miles
of public roads and highways in both the local authority and the
respective districts. Amounts credited to a transportation
district's account shall be used by the department of
transportation and the district deputy director exclusively to
enhance public safety on public roads and highways within that
transportation district.
(2) Notwithstanding division (F)(1) of this section, in
fiscal year 2026, six million dollars of the amount in the Ohio
highway and transportation safety fund, including any account
thereof, shall be used for rail development infrastructure
projects pursuant to an appropriation made by the general
assembly. The amounts credited to each account of a
transportation district pursuant to division (F)(1) of this
section shall be reduced in the same proportion that the amount
deposited in each account is of the total fund balance.
Sec. 5747.504. (A) As used in this section, "local
government fund payments" means the payments a municipal
corporation or county 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 reductions required
by this section or section 5747.502 of the Revised Code.
(B) Beginning with the month following receipt of a notice
from the secretary of state pursuant to division (B) of section
3505.011 or 3513.141 of the Revised Code, the tax commissioner
shall do the following, as applicable:
(1) If the notice concerns a municipal corporation with a
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As Introduced
population of one thousand or more, cease providing for payments
to the municipal corporation under section 5747.50 of the
Revised Code beginning with the next required payment;
(2) If the notice concerns a qualifying village, as
defined in section 5747.503 of the Revised Code, reduce the
supplemental payments to the appropriate county undivided local
government fund under section 5747.503 of the Revised Code by an
amount equal to the amount of such payments the qualifying
village would otherwise receive under that section, beginning
with the next required payment;
(3) For any county or municipal corporation identified in
the notice, reduce payments to the appropriate county undivided
local government fund under division (B) of section 5747.50 of
the Revised Code by an amount equal to the amount of such
payments the county or municipal corporation would otherwise
receive under section 5747.51 or 5747.53 of the Revised Code,
beginning with the next required payment.
(C) Subject to section 5747.505 of the Revised Code, upon
receiving notice from the secretary of state, under division (C)
of section 3505.11 or 3513.141 of the Revised Code, that a
county or municipal corporation has, by resolution or ordinance,
rescinded previous approval for the use of ranked choice voting,
the commissioner shall resume all local government fund payments
ceased or reduced under division (B) of this section due to that
county's or municipal corporation's use of ranked choice voting.
(D)(1) The commissioner shall notify the county auditor
and county treasurer on or before the day the commissioner first
reduces a county undivided local government fund payment to that
county under division (B)(3) of this section. The notice shall
include the full amount of the reduction, a list of the counties
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As Introduced
and municipal corporations to which the reduction applies, and
the amount of reduction attributed to each such county or
municipal corporation.
(2) The commissioner shall also notify the county auditor
and county treasurer on or before the day that the commissioner
first resumes payments to the county undivided local government
fund under division (C) of this section. The notification shall
include a list of the counties or municipal corporations that
are again eligible to receive local government fund payments.
(3) Subject to section 5747.505 of the Revised Code, a
county treasurer that receives a notice from the commissioner
under division (D)(1) or (2) of this section shall cease or
resume payments from the undivided local government fund to the
county or municipal corporation that is the subject of the
notice as specified by the commissioner in the notice.
(E) On or before the tenth day of each month, the
commissioner shall transfer from the local government fund to
the general revenue fund the sum of the payments withheld that
month under division (B) of this section.
Sec. 5747.505. If a municipal corporation or county is
subject to more than one reduction required by sections 5747.502
and , 5747.504, and 5747.506 of the Revised Code for the same
month, the tax commissioner shall apply the reduction those
reductions, and make the attendant deposits or payments, in the
following order:
(A) The reduction required by section 5747.504 of the
Revised Code first and the deposit the amount of payments
withheld to the general revenue fund required under division (E)
of that section;
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As Introduced
(B) The reduction required by section 5747.502 of the
Revised Code, the payment required by division (C)(4) of that
section, and the deposit required by division (F)(1) of that
section;
(C) The reduction required by section 5747.506 of the
Revised Code and the deposit required by division (E) of that
section.
Sec. 5747.506.
(A) As used in this section:
(1) "Gender reassignment surgery adjustment" means twenty-
five per cent of a local authority's local government fund
payment for a month.
(2) "Local authority" has the same meaning as in section
5747.502 of the Revised Code.
(3) "Local government fund payments" or "LGF payments"
means the payments a local authority would receive each month
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 reductions required by this section.
(4) "Qualifying village" has the same meaning as in
section 5747.503 of the Revised Code.
(B) Upon receiving certification from the attorney
general, pursuant to division (D) of section 9.051 of the
Revised Code, that a local authority is not in compliance, or
has failed to certify compliance, with division (B) of that
section, the commissioner shall subtract a gender reassignment
surgery adjustment from the local authority's LGF payments, as
described in division (C) of this section, beginning with the
next required payment and until such time as the reduction has
been applied to twelve required payments.
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(C)(1) If the local authority is a municipal corporation
with a population of one thousand or more, the commissioner
shall first reduce payments to the municipal corporation under
division (C) of section 5747.50 of the Revised Code by the
lesser of the gender reassignment surgery adjustment or the
amount the municipal corporation would otherwise receive under
that division. If the gender reassignment surgery adjustment
exceeds the amount of money the municipal corporation would
otherwise receive under division (C) of section 5747.50 of the
Revised Code, the commissioner also shall reduce payments to the
appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by the
excess gender reassignment surgery adjustment.
(2) If the local authority is a qualifying village or
township, the commissioner shall first reduce supplemental
payments to the appropriate county undivided local government
fund under section 5747.503 of the Revised Code by the lesser of
the gender reassignment surgery adjustment, or the amount of
money the qualifying village or township would otherwise receive
under that section. If the gender reassignment surgery
adjustment exceeds the amount of money the qualifying village or
township would otherwise receive under section 5747.503 of the
Revised Code, the commissioner also shall reduce payments to the
appropriate county undivided local government fund under
division (B) of section 5747.50 of the Revised Code by the
excess gender reassignment surgery adjustment.
(3) If the local authority is a county, the commissioner
shall reduce payments to the appropriate county undivided local
government fund under division (B) of section 5747.50 of the
Revised Code by the gender reassignment surgery adjustment.
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As Introduced
(D) The tax commissioner shall notify the county auditor
and county treasurer on or before the day the commissioner first
reduces a county undivided local government fund payment to that
county under division (C) of this section. The notice shall
include the full amount of the reduction, a list of the local
authorities to which the reduction applies, the amount of
reduction attributed to each such local authority, and when the
reduction shall cease.
A county treasurer that receives a notice from the
commissioner under this division shall reduce payments from the
undivided local government fund to the local authority that is
the subject of the notice for each month that the reduction
applies. Unless otherwise specified in the notice, the payments
shall be reduced beginning with the next required payment.
(E) On or before the tenth day of each month, the tax
commissioner shall transfer from the local government fund to
the general revenue fund the sum of the payments withheld that
month under division (C) of this section.
Sec. 5747.51. (A) On or before the twenty-fifth day of
July of each year, the tax commissioner shall make and certify
to the county auditor of each county an estimate of the amount
of the local government fund to be allocated to the undivided
local government fund of each county for the ensuing calendar
year, adjusting the total as required to account for
subdivisions receiving reduced local government funds under
section 5747.502, 5774.504, or 5747.505 of the Revised Code.
(B) At each annual regular session of the county budget
commission convened pursuant to section 5705.27 of the Revised
Code, each auditor shall present to the commission the
certificate of the commissioner, the annual tax budget and
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As Introduced
estimates, and the records showing the action of the commission
in its last preceding regular session. The commission, after
extending to the representatives of each subdivision an
opportunity to be heard, under oath administered by any member
of the commission, and considering all the facts and information
presented to it by the auditor, shall determine the amount of
the undivided local government fund needed by and to be
apportioned to each subdivision for current operating expenses,
as shown in the tax budget of the subdivision. This
determination shall be made pursuant to divisions (C) to (I) of
this section, unless the commission has provided for a formula
pursuant to section 5747.53 of the Revised Code. The
commissioner shall reduce the amount of funds from the undivided
local government fund to a subdivision required to receive
reduced funds under section 5747.502, 5747.504, or 5747.505 of
the Revised Code.
Nothing in this section prevents the budget commission,
for the purpose of apportioning the undivided local government
fund, from inquiring into the claimed needs of any subdivision
as stated in its tax budget, or from adjusting claimed needs to
reflect actual needs. For the purposes of this section, "current
operating expenses" means the lawful expenditures of a
subdivision, except those for permanent improvements and except
payments for interest, sinking fund, and retirement of bonds,
notes, and certificates of indebtedness of the subdivision.
(C) The commission shall determine the combined total of
the estimated expenditures, including transfers, from the
general fund and any special funds other than special funds
established for road and bridge; street construction,
maintenance, and repair; state highway improvement; and gas,
water, sewer, and electric public utilities operated by a
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As Introduced
subdivision, as shown in the subdivision's tax budget for the
ensuing calendar year.
(D) From the combined total of expenditures calculated
pursuant to division (C) of this section, the commission shall
deduct the following expenditures, if included in these funds in
the tax budget:
(1) Expenditures for permanent improvements as defined in
division (E) of section 5705.01 of the Revised Code;
(2) In the case of counties and townships, transfers to
the road and bridge fund, and in the case of municipalities,
transfers to the street construction, maintenance, and repair
fund and the state highway improvement fund;
(3) Expenditures for the payment of debt charges;
(4) Expenditures for the payment of judgments.
(E) In addition to the deductions made pursuant to
division (D) of this section, revenues accruing to the general
fund and any special fund considered under division (C) of this
section from the following sources shall be deducted from the
combined total of expenditures calculated pursuant to division
(C) of this section:
(1) Taxes levied within the ten-mill limitation, as
defined in section 5705.02 of the Revised Code;
(2) The budget commission allocation of estimated county
public library fund revenues to be distributed pursuant to
section 5747.48 of the Revised Code;
(3) Estimated unencumbered balances as shown on the tax
budget as of the thirty-first day of December of the current
year in the general fund, but not any estimated balance in any
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As Introduced
special fund considered in division (C) of this section;
(4) Revenue, including transfers, shown in the general
fund and any special funds other than special funds established
for road and bridge; street construction, maintenance, and
repair; state highway improvement; and gas, water, sewer, and
electric public utilities, from all other sources except those
that a subdivision receives from an additional tax or service
charge voted by its electorate or receives from special
assessment or revenue bond collection. For the purposes of this
division, where the charter of a municipal corporation prohibits
the levy of an income tax, an income tax levied by the
legislative authority of such municipal corporation pursuant to
an amendment of the charter of that municipal corporation to
authorize such a levy represents an additional tax voted by the
electorate of that municipal corporation. For the purposes of
this division, any measure adopted by a board of county
commissioners pursuant to section 322.02, 4504.02, or 5739.021
of the Revised Code, including those measures upheld by the
electorate in a referendum conducted pursuant to section
322.021, 4504.021, or 5739.022 of the Revised Code, shall not be
considered an additional tax voted by the electorate.
Money in a reserve balance account established by a
county, township, or municipal corporation under section 5705.13
of the Revised Code shall not be considered an unencumbered
balance or revenue under division (E)(3) or (4) of this section.
Money in a reserve balance account established by a township
under section 5705.132 of the Revised Code shall not be
considered an unencumbered balance or revenue under division (E)
(3) or (4) of this section.
If a county, township, or municipal corporation has
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As Introduced
created and maintains a nonexpendable trust fund under section
5705.131 of the Revised Code, the principal of the fund, and any
additions to the principal arising from sources other than the
reinvestment of investment earnings arising from such a fund,
shall not be considered an unencumbered balance or revenue under
division (E)(3) or (4) of this section. Only investment earnings
arising from investment of the principal or investment of such
additions to principal may be considered an unencumbered balance
or revenue under those divisions.
(F) The total expenditures calculated pursuant to division
(C) of this section, less the deductions authorized in divisions
(D) and (E) of this section, shall be known as the "relative
need" of the subdivision, for the purposes of this section.
(G) The budget commission shall total the relative need of
all participating subdivisions in the county, and shall compute
a relative need factor by dividing the total estimate of the
undivided local government fund by the total relative need of
all participating subdivisions.
(H) The relative need of each subdivision shall be
multiplied by the relative need factor to determine the
proportionate share of the subdivision in the undivided local
government fund of the county; provided, that the maximum
proportionate share of a county shall not exceed the following
maximum percentages of the total estimate of the undivided local
government fund governed by the relationship of the percentage
of the population of the county that resides within municipal
corporations within the county to the total population of the
county as reported in the reports on population in Ohio by the
department of development as of the twentieth day of July of the
year in which the tax budget is filed with the budget
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As Introduced
commission:
1
2
A
Percentage of municipal population
within the county:
Percentage share of the county
shall not exceed:
B
Less than forty-one per cent
Sixty per cent
C
Forty-one per cent or more but less
than eighty-one per cent
Fifty per cent
D
Eighty-one per cent or more
Thirty per cent
Where the proportionate share of the county exceeds the
limitations established in this division, the budget commission
shall adjust the proportionate shares determined pursuant to
this division so that the proportionate share of the county does
not exceed these limitations, and it shall increase the
proportionate shares of all other subdivisions on a pro rata
basis. In counties having a population of less than one hundred
thousand, not less than ten per cent shall be distributed to the
townships therein.
(I) The proportionate share of each subdivision in the
undivided local government fund determined pursuant to division
(H) of this section for any calendar year shall not be less than
the product of the average of the percentages of the undivided
local government fund of the county as apportioned to that
subdivision for the calendar years 1968, 1969, and 1970,
multiplied by the total amount of the undivided local government
fund of the county apportioned pursuant to former section
5739.23 of the Revised Code for the calendar year 1970. For the
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As Introduced
purposes of this division, the total apportioned amount for the
calendar year 1970 shall be the amount actually allocated to the
county in 1970 from the state collected intangible tax as levied
by section 5707.03 of the Revised Code and distributed pursuant
to section 5725.24 of the Revised Code, plus the amount received
by the county in the calendar year 1970 pursuant to division (B)
(1) of former section 5739.21 of the Revised Code, and
distributed pursuant to former section 5739.22 of the Revised
Code. If the total amount of the undivided local government fund
for any calendar year is less than the amount of the undivided
local government fund apportioned pursuant to former section
5739.23 of the Revised Code for the calendar year 1970, the
minimum amount guaranteed to each subdivision for that calendar
year pursuant to this division shall be reduced on a basis
proportionate to the amount by which the amount of the undivided
local government fund for that calendar year is less than the
amount of the undivided local government fund apportioned for
the calendar year 1970.
(J) On the basis of such apportionment, the county auditor
shall compute the percentage share of each such subdivision in
the undivided local government fund and shall at the same time
certify to the tax commissioner the percentage share of the
county as a subdivision. No payment shall be made from the
undivided local government fund, except in accordance with such
percentage shares.
Within ten days after the budget commission has made its
apportionment, whether conducted pursuant to section 5747.51 or
5747.53 of the Revised Code, the auditor shall publish a list of
the subdivisions and the amount each is to receive from the
undivided local government fund and the percentage share of each
subdivision, in a newspaper or newspapers of countywide
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As Introduced
circulation, and send a copy of such allocation to the tax
commissioner.
The county auditor shall also send a copy of such
allocation by ordinary or electronic mail to the fiscal officer
of each subdivision entitled to participate in the allocation of
the undivided local government fund of the county. This copy
shall constitute the official notice of the commission action
referred to in section 5705.37 of the Revised Code.
All money received into the treasury of a subdivision from
the undivided local government fund in a county treasury shall
be paid into the general fund and used for the current operating
expenses of the subdivision.
If a municipal corporation maintains a municipal
university, such municipal university, when the board of
trustees so requests the legislative authority of the municipal
corporation, shall participate in the money apportioned to such
municipal corporation from the total local government fund,
however created and constituted, in such amount as requested by
the board of trustees, provided such sum does not exceed nine
per cent of the total amount paid to the municipal corporation.
If any public official fails to maintain the records
required by sections 5747.50 to 5747.55 of the Revised Code or
by the rules issued by the tax commissioner, the auditor of
state, or the treasurer of state pursuant to such sections, or
fails to comply with any law relating to the enforcement of such
sections, the local government fund money allocated to the
county may be withheld until such time as the public official
has complied with such sections or such law or the rules issued
pursuant thereto.
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Sec. 5747.53. (A) As used in this section:
(1) "City, located wholly or partially in the county, with
the greatest population" means the city, located wholly or
partially in the county, with the greatest population residing
in the county; however, if the county budget commission on or
before January 1, 1998, adopted an alternative method of
apportionment that was approved by the legislative authority of
the city, located partially in the county, with the greatest
population but not the greatest population residing in the
county, "city, located wholly or partially in the county, with
the greatest population" means the city, located wholly or
partially in the county, with the greatest population whether
residing in the county or not, if this alternative meaning is
adopted by action of the board of county commissioners and a
majority of the boards of township trustees and legislative
authorities of municipal corporations located wholly or
partially in the county.
(2) "Participating political subdivision" means a
municipal corporation or township that satisfies all of the
following:
(a) It is located wholly or partially in the county.
(b) It is not the city, located wholly or partially in the
county, with the greatest population.
(c) Undivided local government fund moneys are apportioned
to it under the county's alternative method or formula of
apportionment in the current calendar year.
(B) In lieu of the method of apportionment of the
undivided local government fund of the county provided by
section 5747.51 of the Revised Code, the county budget
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As Introduced
commission may provide for the apportionment of the fund under
an alternative method or on a formula basis as authorized by
this section. The commissioner shall reduce the amount of funds
from the undivided local government fund to a subdivision
required to receive reduced funds under section 5747.502,
5747.504, or 5747.505 of the Revised Code.
Except as otherwise provided in division (C) of this
section, the alternative method of apportionment shall have
first been approved by all of the following governmental units:
the board of county commissioners; the legislative authority of
the city, located wholly or partially in the county, with the
greatest population; and a majority of the boards of township
trustees and legislative authorities of municipal corporations,
located wholly or partially in the county, excluding the
legislative authority of the city, located wholly or partially
in the county, with the greatest population. In granting or
denying approval for an alternative method of apportionment, the
board of county commissioners, boards of township trustees, and
legislative authorities of municipal corporations shall act by
motion. A motion to approve shall be passed upon a majority vote
of the members of a board of county commissioners, board of
township trustees, or legislative authority of a municipal
corporation, shall take effect immediately, and need not be
published.
Any alternative method of apportionment adopted and
approved under this division shall be reviewed by the county
budget commission at a public hearing held at least once in the
year following the effective date of this amendment October 3,
2023, and in every fifth year thereafter. The county budget
commission shall provide reasonable advance notice of the
hearing to all political subdivisions eligible to participate in
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As Introduced
the fund and shall take public testimony from any such political
subdivision that wishes to testify.
Any alternative method of apportionment adopted and
approved under this division may be revised, amended, or
repealed in the same manner as it may be adopted and approved.
If an alternative method of apportionment adopted and approved
under this division is repealed, the undivided local government
fund of the county shall be apportioned among the subdivisions
eligible to participate in the fund, commencing in the ensuing
calendar year, under the apportionment provided in section
5747.52 of the Revised Code, unless the repeal occurs by
operation of division (C) of this section or a new method for
apportionment of the fund is provided in the action of repeal.
(C) This division applies only in counties in which the
city, located wholly or partially in the county, with the
greatest population has a population of twenty thousand or less
and a population that is less than fifteen per cent of the total
population of the county. In such a county, the legislative
authorities or boards of township trustees of two or more
participating political subdivisions, which together have a
population residing in the county that is a majority of the
total population of the county, each may adopt a resolution to
exclude the approval otherwise required of the legislative
authority of the city, located wholly or partially in the
county, with the greatest population. All of the resolutions to
exclude that approval shall be adopted not later than the first
Monday of August of the year preceding the calendar year in
which distributions are to be made under an alternative method
of apportionment.
A motion granting or denying approval of an alternative
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As Introduced
method of apportionment under this division shall be adopted by
a majority vote of the members of the board of county
commissioners and by a majority vote of a majority of the boards
of township trustees and legislative authorities of the
municipal corporations located wholly or partially in the
county, other than the city, located wholly or partially in the
county, with the greatest population, shall take effect
immediately, and need not be published. The alternative method
of apportionment under this division shall be adopted and
approved annually, not later than the first Monday of August of
the year preceding the calendar year in which distributions are
to be made under it. A motion granting approval of an
alternative method of apportionment under this division repeals
any existing alternative method of apportionment, effective with
distributions to be made from the fund in the ensuing calendar
year. An alternative method of apportionment under this division
shall not be revised or amended after the first Monday of August
of the year preceding the calendar year in which distributions
are to be made under it.
(D) In determining an alternative method of apportionment
authorized by this section, the county budget commission may
include in the method any factor considered to be appropriate
and reliable, in the sole discretion of the county budget
commission.
(E) The limitations set forth in section 5747.51 of the
Revised Code, stating the maximum amount that the county may
receive from the undivided local government fund and the minimum
amount the townships in counties having a population of less
than one hundred thousand may receive from the fund, are
applicable to any alternative method of apportionment authorized
under this section.
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H. B. No. 838
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As Introduced
(F) On the basis of any alternative method of
apportionment adopted and approved as authorized by this
section, as certified by the auditor to the county treasurer,
the county treasurer shall make distribution of the money in the
undivided local government fund to each subdivision eligible to
participate in the fund, and the auditor, when the amount of
those shares is in the custody of the treasurer in the amounts
so computed to be due the respective subdivisions, shall at the
same time certify to the tax commissioner the percentage share
of the county as a subdivision. All money received into the
treasury of a subdivision from the undivided local government
fund in a county treasury shall be paid into the general fund
and used for the current operating expenses of the subdivision.
If a municipal corporation maintains a municipal university, the
university, when the board of trustees so requests the
legislative authority of the municipal corporation, shall
participate in the money apportioned to the municipal
corporation from the total local government fund, however
created and constituted, in the amount requested by the board of
trustees, provided that amount does not exceed nine per cent of
the total amount paid to the municipal corporation.
(G) The actions of the county budget commission taken
pursuant to this section are final and may not be appealed to
the board of tax appeals, except on the issues of abuse of
discretion and failure to comply with the formula.
Section 2. That existing sections 4117.10, 5747.50,
5747.502, 5747.504, 5747.505, 5747.51, and 5747.53 of the
Revised Code are hereby repealed.
Section 3. (A) As used in this section, "policy, contract,
or plan" has the same meaning as in section 9.051 of the Revised
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As Introduced
Code as enacted by this act.
(B) Section 9.051 of the Revised Code, as enacted by this
act, applies to any policy, contract, or plan entered into on or
after the effective date of this section.
Section 4. The General Assembly, applying the principle
stated in division (B) of section 1.52 of the Revised Code that
amendments are to be harmonized if reasonably capable of
simultaneous operation, finds that the following sections,
presented in this act as composites of the sections as amended
by the acts indicated, are the resulting versions of the
sections in effect prior to the effective date of the sections
as presented in this act:
Section 5747.502 of the Revised Code as amended by H.B.
54, H.B. 96, and S.B. 63 all of the 136th General Assembly.
Section 5747.53 of the Revised Code as amended by both
H.B. 33 of the 135th General Assembly and H.B. 62 of the 133rd
General Assembly.
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