Fiscal Note & Local Impact Statement

124 th General Assembly of Ohio

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43266-0342 ˛ Phone: (614) 466-3615

˛ Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Am. H.B. 21

DATE:

March 21, 2001

STATUS:

As Reported by House Ways & Means

SPONSOR:

Rep. Core

LOCAL IMPACT STATEMENT REQUIRED:

No —

Permissive

 

CONTENTS:

Enables subdivisions and local taxing units to use super blanket certificates for qualified purchases of any amount.

 

State Fiscal Highlights

 

·        No direct fiscal effect on the state.

Local Fiscal Highlights

 

·        No direct fiscal effect on political subdivisions.

 

 

 

Detailed Fiscal Analysis

 

Before entering into a contract or making a purchase a subdivision or local taxing unit needs a certificate issued by the fiscal officer of the subdivision.  This certificate ensures that the subdivision has the funds for the purchase (or will have the funds by the time the amount is due). 

 

However, the fiscal officer may issue a “blanket” certificate for recurring purchases of specific goods or services[1].  This type of certificate allows a subdivision a great deal of convenience when making regular purchases.  Rather than have to ask a fiscal officer for a certificate each time a purchase is made, a blanket certificate can approve the spending of up to a certain amount of funds on a good or service in a specified amount of time.  For example, a fiscal officer may issue a blanket certificate for up to $3,000 of gasoline purchases within they next two months. 

 

            Currently, blanket certificates allowing spending of less than $5,000 may be issued for up to 3 months (not extending beyond the end of the fiscal year).  Blanket certificates allowing spending of greater than $5,000 may extend up to one year (not extending beyond the end of the fiscal year).  H.B. 21 proposes to allow a blanket certificate to be issued for up to one year (not extending beyond the end of the fiscal year) for any amount.  

 

 

q LSC fiscal staff:  Nickie Ringer, Economist

 

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[1] The services of an accountant, architect, attorney at law, physician, professional engineer, construction project manager, consultant, surveyor or appraiser and goods such as fuel oil, gasoline, food items, roadway materials and utilities may be purchases using such a certificate.  Other specific expenditures that are recurring and reasonably predictable operating expenses may also be purchased using a “blanket” certificate.