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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 574
2025-2026
Representatives Daniels, Dovilla
Cosponsors: Representatives Fischer,
Hall, T., Thomas, D., Ritter
To
create
the Political Subdivision Consolidation Incentive Grant Pilot Program
and to make an appropriation.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
(A)
As used in this section:
"Merger"
means a process under which one political subdivision absorbs one or
more other political subdivisions, or two or more political
subdivisions otherwise combine to create one political subdivision.
"Merger" does not include a process under which political
subdivisions utilize joint districts to provide services.
"Political
subdivision" means a body corporate and politic responsible for
governmental activities in a geographic area smaller than the state,
not including a county.
(B)
The Political Subdivision Incentive Grant Pilot Program is created to
be administered by the Secretary of State for the purpose of awarding
grants to political subdivisions after mergers.
(C)(1)
A township or municipal corporation is eligible to receive a grant if
one or more other townships or municipal corporations merged into the
township or municipal corporation under Chapter 523. of the Revised
Code, sections 709.43 to 709.48 of the Revised Code, or under a
charter that provides a procedure for merger.
(2)
A political subdivision other than a township or municipal
corporation is eligible to receive a grant if one or more other
political subdivisions of a similar nature merge under applicable
Revised Code provisions. This division does not give political
subdivisions authority to merge.
(D)
Only a merger that takes effect on or after the effective date of
this section is eligible. A political subdivision is eligible to
apply, in the manner prescribed by the Secretary of State, beginning
the date the merger takes effect.
(E)
Subject to the availability of funds, the Secretary of State shall
award grants on a first-come, first-serve basis to eligible political
subdivisions.
(F)(1)
Townships and municipal corporations shall receive a grant amount
according to the following formula:
(a)
Multiply the population of the remaining, merged township or
municipal corporation by forty.
(b)
Compare the most recent budget of each township or municipal
corporation before the merge. Calculate twenty per cent of the lowest
budget amount.
(c)
Add the resulting amount under division (F)(1)(a) and the resulting
amount under division (F)(1)(b) of this section. This is the grant
amount, subject to a maximum grant amount of two million five hundred
thousand dollars.
(2)
All other political subdivisions shall receive a grant amount as
follows:
(a)
Multiply the population of the remaining, merged political
subdivision by twenty.
(b)
Compare the most recent budget of each political subdivision before
the merge. Calculate ten per cent of the lowest budget amount.
(c)
Add the resulting amount under division (F)(2)(a) and the resulting
amount under division (F)(2)(b) of this section. This is the grant
amount, subject to a maximum grant amount of one million dollars.
(G)
A political subdivision shall receive only one grant under the
program.
Section
2.
All
items in this act are hereby appropriated as designated out of any
moneys in the state treasury to the credit of the designated fund.
For all operating appropriations made in this act, those in the first
column are for fiscal year 2026 and those in the second column are
for fiscal year 2027. The operating appropriations made in this act
are in addition to any other operating appropriations made for these
fiscal years.
Section
3.
1
2
3
4
5
A
SOS
SECRETARY OF STATE
B
General
Revenue Fund
C
GRF
050412
Political
Subdivision Consolidation Incentive
$25,000,000
$0
D
TOTAL
Highway Safety Fund Group
$25,000,000
$0
POLITICAL
SUBDIVISION CONSOLIDATION INCENTIVE
The
foregoing appropriation item 050412, Political Subdivision
Consolidation Incentive, shall be used to support the Political
Subdivision Incentive Grant Pilot Program established under Section 1
of this act.
An
amount equal to the unexpended, unencumbered balance of the foregoing
appropriation item 050412, Political Subdivision Consolidation
Incentive, at the end of fiscal year 2026 is hereby reappropriated to
the same appropriation item in fiscal year 2027.
Section
4.
Within
the limits set forth in this act, the Director of Budget and
Management shall establish accounts indicating the source and amount
of funds for each appropriation made in this act, and shall determine
the manner in which appropriation accounts shall be maintained.
Expenditures from operating appropriations contained in this act
shall be accounted for as though made in, and are subject to all
applicable provisions of, H.B. 96 of the 136th General Assembly.