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