As Reported by the Senate Ways and Means Committee 1 122nd General Assembly 4 Regular Session Sub. S. B. No. 62 5 1997-1998 6 SENATORS BLESSING-SHOEMAKER-GAETH-GARDNER-SWEENEY-DRAKE- 8 KEARNS-B. JOHNSON 9 10 A B I L L To enact sections 9.48 and 133.151 of the Revised 12 Code to authorize a county or township to 13 participate in contracts of other counties or townships, or in joint purchasing programs of a 14 national or state association of political subdivisions, for the acquisition of equipment, 15 materials, supplies, or services, and to 17 authorize counties or townships to issue self-supporting securities for the purpose of 18 paying the costs of their own and other counties' or townships' permanent improvements. 19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21 Section 1. That sections 9.48 and 133.151 of the Revised 23 Code be enacted to read as follows: 24 Sec. 9.48. A COUNTY OR TOWNSHIP MAY DO EITHER OF THE 26 FOLLOWING: (1) PERMIT ONE OR MORE OTHER COUNTIES OR TOWNSHIPS TO 29 PARTICIPATE IN CONTRACTS INTO WHICH IT HAS ENTERED FOR THE 30 ACQUISITION OF EQUIPMENT, MATERIALS, SUPPLIES, OR SERVICES, AND 31 MAY CHARGE SUCH PARTICIPATING COUNTIES OR TOWNSHIPS A REASONABLE 32 FEE TO COVER ANY ADDITIONAL COSTS INCURRED AS A RESULT OF THEIR 33 PARTICIPATION; (2) PARTICIPATE IN A JOINT PURCHASING PROGRAM OPERATED BY 35 OR THROUGH A NATIONAL OR STATE ASSOCIATION OF POLITICAL 36 SUBDIVISIONS IN WHICH THE PURCHASING COUNTY OR TOWNSHIP IS 37 2 ELIGIBLE FOR MEMBERSHIP. ACQUISITION BY A COUNTY OR TOWNSHIP OF EQUIPMENT, MATERIAL, 40 SUPPLIES, OR SERVICES, THROUGH PARTICIPATION IN A CONTRACT OF 41 ANOTHER COUNTY OR TOWNSHIP OR PARTICIPATION IN AN ASSOCIATION 42 PROGRAM UNDER THIS SECTION, IS EXEMPT FROM ANY COMPETITIVE 44 SELECTION REQUIREMENTS OTHERWISE REQUIRED BY LAW, IF THE CONTRACT 45 IN WHICH IT IS PARTICIPATING WAS AWARDED PURSUANT TO A 46 COMPETITIVE SELECTION PROCEDURE, AND, IN THE CASE OF PARTICIPATION IN A JOINT PURCHASING PROGRAM OPERATED BY OR 47 THROUGH A NATIONAL OR STATE ASSOCIATION OF POLITICAL 48 SUBDIVISIONS, IF THE PROGRAM HAS EMPLOYED A COMPETITIVE SELECTION 49 PROCEDURE SUBSTANTIALLY SIMILAR TO THE PROCEDURE THAT WOULD HAVE 50 BEEN REQUIRED OF THE PURCHASING COUNTY OR TOWNSHIP ACTING ALONE. NO COUNTY OR TOWNSHIP SHALL ACQUIRE EQUIPMENT, MATERIALS, 51 SUPPLIES, OR SERVICES BY PARTICIPATING IN A CONTRACT UNDER THIS 52 SECTION IF IT HAS RECEIVED BIDS FOR SUCH ACQUISITION, UNLESS ITS 53 PARTICIPATION ENABLES IT TO MAKE THE ACQUISITION UPON THE SAME 54 TERMS, CONDITIONS, AND SPECIFICATIONS AT A LOWER PRICE. 55 Sec. 133.151. (A) A COUNTY OR TOWNSHIP MAY ISSUE 57 SELF-SUPPORTING SECURITIES FOR EITHER OR BOTH OF THE FOLLOWING 58 PURPOSES: (1) PAYING THE COSTS OF ANY PERMANENT IMPROVEMENTS THAT IT 61 IS AUTHORIZED TO ACQUIRE, IMPROVE, OR CONSTRUCT; (2) MAKING LOANS OR OTHERWISE PROVIDING FINANCIAL 63 ASSISTANCE TO ONE OR MORE COUNTIES OR TOWNSHIPS TO ASSIST SUCH 64 OTHER COUNTIES OR TOWNSHIPS IN PAYING THE COSTS OF PERMANENT 65 IMPROVEMENTS. (B) SELF-SUPPORTING SECURITIES ISSUED UNDER THIS SECTION 67 SHALL NOT BE GENERAL OBLIGATIONS OF THE ISSUER, BUT SHALL BE 68 SECURED BY ANY OF THE FOLLOWING: 69 (1) A PLEDGE OF AND A LIEN UPON THE REVENUES OF THE 71 ISSUER, DERIVED FROM OWNERSHIP OR OPERATION OF THE PERMANENT 72 IMPROVEMENTS, INCLUDING THOSE RATES, CHARGES, OR RENTS AND ANY 73 INTEREST SUBSIDIES OR DEBT CHARGES, GRANTS, OR OTHER PAYMENTS BY 74 3 FEDERAL OR STATE AGENCIES THEREFOR, AND THE COVENANTS OF THE 75 ISSUER TO MAINTAIN SUFFICIENT RATES, CHARGES, AND RENTALS TO 76 PRODUCE REVENUES SUFFICIENT TO PAY ALL CURRENT EXPENSES OF THE 77 PERMANENT IMPROVEMENTS PAYABLE BY THE ISSUER, AND TO PAY DEBT 78 SERVICE CHARGES ON THE SECURITIES AND ESTABLISH AND MAINTAIN ANY 79 CONTRACTUALLY REQUIRED SPECIAL FUNDS RELATING TO THE SECURITIES, 80 AND, IF THE SECURITIES ARE ANTICIPATORY SECURITIES, TO ISSUE THE 81 SELF-SUPPORTING SECURITIES FOR WHICH THE ANTICIPATORY SECURITIES 82 ARE ISSUED; 83 (2) AMOUNTS RECEIVED FROM OTHER COUNTIES OR TOWNSHIPS AS 86 REPAYMENT OF LOANS OR OTHER FINANCIAL ASSISTANCE MADE TO THEM 87 FROM THE PROCEEDS OF SUCH SELF-SUPPORTING SECURITIES; 88 (3) A PLEDGE OF AND LIEN ON THE PROCEEDS OF ANY SECURITIES 91 ISSUED TO FUND OR REFUND THOSE SELF-SUPPORTING SECURITIES. 92 (C) A COUNTY OR TOWNSHIP ISSUING SELF-SUPPORTING 94 SECURITIES UNDER THIS SECTION SHALL DO SO BY RESOLUTION, AND SUCH 96 RESOLUTION SHALL SET FORTH THE TERMS OF THE SECURITIES, THE DATE 97 OF THE SECURITIES, THE AMOUNT TO BE ISSUED, AND THE MAXIMUM RATE 98 OF INTEREST. THE SECURITIES SHALL MATURE AT SUCH TIMES NOT 99 EXCEEDING THE MAXIMUM LIMITS SPECIFIED FOR GENERAL OBLIGATIONS IN 100 SECTION 133.20 OF THE REVISED CODE, AND SHALL BE EXECUTED IN SUCH 101 MANNER AS THE RESOLUTION PROVIDES. THE SECURITIES SHALL BE 102 NEGOTIABLE, BEAR INTEREST AT SUCH RATE OR RATES, BE IN SUCH 103 DENOMINATIONS, BE IN SUCH FORM, CARRY SUCH REGISTRATION 104 PRIVILEGES, BE PAYABLE IN SUCH MEDIUM OF PAYMENT AT SUCH PLACE OR 106 PLACES, AND BE SUBJECT TO SUCH TERMS OF REDEMPTION AS THE ISSUER 107 MAY AUTHORIZE. THE SECURITIES MAY BE SOLD AT PUBLIC OR PRIVATE 108 SALE. (D) SELF-SUPPORTING SECURITIES ISSUED UNDER THIS SECTION, 110 THEIR TRANSFER, AND ANY INCOME THEREFROM, INCLUDING ANY PROFIT 111 MADE ON THE SALE THEREOF, SHALL AT ALL TIMES BE FREE FROM 112 TAXATION WITHIN THE STATE. 113 (E) COSTS OF PERMANENT IMPROVEMENTS THAT MAY BE FINANCED 115 WITH, AND PAID FROM THE PROCEEDS OF, SELF-SUPPORTING SECURITIES 117 4 ISSUED UNDER THIS SECTION INCLUDE, WITHOUT LIMITATION AS TO OTHER 118 COSTS PROPERLY ALLOCABLE TO THE PERMANENT IMPROVEMENTS, THE COSTS 119 OF: ACQUIRING, CONSTRUCTING, RECONSTRUCTING, REHABILITATING, 120 INSTALLING, REMODELING, RENOVATING, ENLARGING, EQUIPPING, 121 FURNISHING, OR OTHERWISE IMPROVING PERMANENT IMPROVEMENTS; SITE 122 CLEARANCE, IMPROVEMENT, AND PREPARATION; ACQUISITION OF REAL OR 123 PERSONAL PROPERTY; INDEMNITY AND SURETY BONDS AND PREMIUMS ON 124 INSURANCE; ALL RELATED DIRECT ADMINISTRATIVE EXPENSES AND 125 ALLOCABLE PORTIONS OF DIRECT COSTS OF THE ISSUER; ENGINEERING, 126 ARCHITECTURAL, LEGAL, AND OTHER CONSULTING AND PROFESSIONAL 127 SERVICES; DESIGNS, PLANS, SPECIFICATIONS, FEASIBILITY OR RATE 128 STUDIES, APPRAISALS, SURVEYS, AND ESTIMATES OF COST; INTEREST OR 129 INTEREST EQUIVALENT ON THE SECURITIES, WHETHER CAPITALIZED OR 130 NOT; FINANCING COSTS; TITLE WORK AND TITLE COMMITMENT, INSURANCE, 131 AND GUARANTIES; AMOUNTS NECESSARY TO ESTABLISH ANY DEBT SERVICE 132 RESERVE OR OTHER RESERVES AS REQUIRED BY THE PROCEEDINGS FOR THE 133 SECURITIES; AUDITS; THE REIMBURSEMENT OF MONEYS ADVANCED OR 134 APPLIED BY OR BORROWED FROM ANY PERSON, WHETHER TO OR BY THE 135 ISSUER OR OTHERS, FROM WHATEVER SOURCE PROVIDED, FOR THE PAYMENT 136 OF ANY ITEM OR ITEMS OF COST OF THE PERMANENT IMPROVEMENTS; AND 137 ALL OTHER EXPENSES NECESSARY OR INCIDENTAL TO PLANNING OR 138 DETERMINING FEASIBILITY OR PRACTICABILITY WITH RESPECT TO 139 PERMANENT IMPROVEMENTS OR NECESSARY OR INCIDENTAL TO THE 140 ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, 141 INSTALLATION, REMODELING, RENOVATION, ENLARGEMENT, EQUIPPING, 142 FURNISHING, OR OTHER IMPROVEMENT OF THE PERMANENT IMPROVEMENTS, 143 THE FINANCING OF THE PERMANENT IMPROVEMENTS, AND THE PLACING OF 144 THE PERMANENT IMPROVEMENTS IN CONDITION FOR USE AND OPERATION, 145 AND ALL LIKE OR RELATED COSTS, INCLUDING ANY ONE, PART, OR 146 COMBINATION OF, OR THE ISSUER'S SHARE OF, THOSE COSTS AND 147 EXPENSES. 148