As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. Sub. S. B. No. 62 5
1997-1998 6
SENATORS BLESSING-SHOEMAKER-GAETH-GARDNER-SWEENEY-DRAKE- 8
KEARNS-B. JOHNSON-NEIN-LATTA-SCHAFRATH-OELSLAGER-WATTS- 9
FINAN-ZALESKI 10
11
A B I L L
To enact sections 9.48 and 133.151 of the Revised 13
Code to authorize a county or township to 14
participate in contracts of other counties or
townships, or in joint purchasing programs of a 15
national or state association of political
subdivisions, for the acquisition of equipment, 16
materials, supplies, or services, and to 18
authorize counties or townships to issue
self-supporting securities for the purpose of 19
paying the costs of their own and other counties'
or townships' permanent improvements. 20
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That sections 9.48 and 133.151 of the Revised 24
Code be enacted to read as follows: 25
Sec. 9.48. A COUNTY OR TOWNSHIP MAY DO EITHER OF THE 27
FOLLOWING:
(A) PERMIT ONE OR MORE OTHER COUNTIES OR TOWNSHIPS TO 30
PARTICIPATE IN CONTRACTS INTO WHICH IT HAS ENTERED FOR THE 31
ACQUISITION OF EQUIPMENT, MATERIALS, SUPPLIES, OR SERVICES, AND 32
MAY CHARGE SUCH PARTICIPATING COUNTIES OR TOWNSHIPS A REASONABLE 33
FEE TO COVER ANY ADDITIONAL COSTS INCURRED AS A RESULT OF THEIR 34
PARTICIPATION;
(B) PARTICIPATE IN A JOINT PURCHASING PROGRAM OPERATED BY 36
OR THROUGH A NATIONAL OR STATE ASSOCIATION OF POLITICAL 39
2
SUBDIVISIONS IN WHICH THE PURCHASING COUNTY OR TOWNSHIP IS 40
ELIGIBLE FOR MEMBERSHIP.
ACQUISITION BY A COUNTY OR TOWNSHIP OF EQUIPMENT, MATERIAL, 43
SUPPLIES, OR SERVICES, THROUGH PARTICIPATION IN A CONTRACT OF 44
ANOTHER COUNTY OR TOWNSHIP OR PARTICIPATION IN AN ASSOCIATION 45
PROGRAM UNDER THIS SECTION, IS EXEMPT FROM ANY COMPETITIVE 47
SELECTION REQUIREMENTS OTHERWISE REQUIRED BY LAW, IF THE CONTRACT 48
IN WHICH IT IS PARTICIPATING WAS AWARDED PURSUANT TO A 49
COMPETITIVE SELECTION PROCEDURE, AND, IN THE CASE OF
PARTICIPATION IN A JOINT PURCHASING PROGRAM OPERATED BY OR 50
THROUGH A NATIONAL OR STATE ASSOCIATION OF POLITICAL 51
SUBDIVISIONS, IF THE PROGRAM HAS EMPLOYED A COMPETITIVE SELECTION 52
PROCEDURE SUBSTANTIALLY SIMILAR TO THE PROCEDURE THAT WOULD HAVE 53
BEEN REQUIRED OF THE PURCHASING COUNTY OR TOWNSHIP ACTING ALONE.
NO COUNTY OR TOWNSHIP SHALL ACQUIRE EQUIPMENT, MATERIALS, 54
SUPPLIES, OR SERVICES BY PARTICIPATING IN A CONTRACT UNDER THIS 55
SECTION IF IT HAS RECEIVED BIDS FOR SUCH ACQUISITION, UNLESS ITS 56
PARTICIPATION ENABLES IT TO MAKE THE ACQUISITION UPON THE SAME 57
TERMS, CONDITIONS, AND SPECIFICATIONS AT A LOWER PRICE. 58
Sec. 133.151. (A) A COUNTY OR TOWNSHIP MAY ISSUE 60
SELF-SUPPORTING SECURITIES FOR EITHER OR BOTH OF THE FOLLOWING 61
PURPOSES:
(1) PAYING THE COSTS OF ANY PERMANENT IMPROVEMENTS THAT IT 64
IS AUTHORIZED TO ACQUIRE, IMPROVE, OR CONSTRUCT;
(2) MAKING LOANS OR OTHERWISE PROVIDING FINANCIAL 66
ASSISTANCE TO ONE OR MORE COUNTIES OR TOWNSHIPS TO ASSIST SUCH 67
OTHER COUNTIES OR TOWNSHIPS IN PAYING THE COSTS OF PERMANENT 68
IMPROVEMENTS.
(B) SELF-SUPPORTING SECURITIES ISSUED UNDER THIS SECTION 70
SHALL NOT BE GENERAL OBLIGATIONS OF THE ISSUER, BUT SHALL BE 71
SECURED BY ANY OF THE FOLLOWING: 72
(1) A PLEDGE OF AND A LIEN UPON THE REVENUES OF THE 74
ISSUER, DERIVED FROM OWNERSHIP OR OPERATION OF THE PERMANENT 75
IMPROVEMENTS, INCLUDING THOSE RATES, CHARGES, OR RENTS AND ANY 76
3
INTEREST SUBSIDIES OR DEBT CHARGES, GRANTS, OR OTHER PAYMENTS BY 77
FEDERAL OR STATE AGENCIES THEREFOR, AND THE COVENANTS OF THE 78
ISSUER TO MAINTAIN SUFFICIENT RATES, CHARGES, AND RENTALS TO 79
PRODUCE REVENUES SUFFICIENT TO PAY ALL CURRENT EXPENSES OF THE 80
PERMANENT IMPROVEMENTS PAYABLE BY THE ISSUER, AND TO PAY DEBT 81
SERVICE CHARGES ON THE SECURITIES AND ESTABLISH AND MAINTAIN ANY 82
CONTRACTUALLY REQUIRED SPECIAL FUNDS RELATING TO THE SECURITIES, 83
AND, IF THE SECURITIES ARE ANTICIPATORY SECURITIES, TO ISSUE THE 84
SELF-SUPPORTING SECURITIES FOR WHICH THE ANTICIPATORY SECURITIES 85
ARE ISSUED; 86
(2) AMOUNTS RECEIVED FROM OTHER COUNTIES OR TOWNSHIPS AS 89
REPAYMENT OF LOANS OR OTHER FINANCIAL ASSISTANCE MADE TO THEM 90
FROM THE PROCEEDS OF SUCH SELF-SUPPORTING SECURITIES; 91
(3) A PLEDGE OF AND LIEN ON THE PROCEEDS OF ANY SECURITIES 94
ISSUED TO FUND OR REFUND THOSE SELF-SUPPORTING SECURITIES. 95
(C) A COUNTY OR TOWNSHIP ISSUING SELF-SUPPORTING 97
SECURITIES UNDER THIS SECTION SHALL DO SO BY RESOLUTION, AND SUCH 99
RESOLUTION SHALL SET FORTH THE TERMS OF THE SECURITIES, THE DATE 100
OF THE SECURITIES, THE AMOUNT TO BE ISSUED, AND THE MAXIMUM RATE 101
OF INTEREST. THE SECURITIES SHALL MATURE AT SUCH TIMES NOT 102
EXCEEDING THE MAXIMUM LIMITS SPECIFIED FOR GENERAL OBLIGATIONS IN 103
SECTION 133.20 OF THE REVISED CODE, AND SHALL BE EXECUTED IN SUCH 104
MANNER AS THE RESOLUTION PROVIDES. THE SECURITIES SHALL BE 105
NEGOTIABLE, BEAR INTEREST AT SUCH RATE OR RATES, BE IN SUCH 106
DENOMINATIONS, BE IN SUCH FORM, CARRY SUCH REGISTRATION 107
PRIVILEGES, BE PAYABLE IN SUCH MEDIUM OF PAYMENT AT SUCH PLACE OR 109
PLACES, AND BE SUBJECT TO SUCH TERMS OF REDEMPTION AS THE ISSUER 110
MAY AUTHORIZE. THE SECURITIES MAY BE SOLD AT PUBLIC OR PRIVATE 111
SALE.
(D) SELF-SUPPORTING SECURITIES ISSUED UNDER THIS SECTION, 113
THEIR TRANSFER, AND ANY INCOME THEREFROM, INCLUDING ANY PROFIT 114
MADE ON THE SALE THEREOF, SHALL AT ALL TIMES BE FREE FROM 115
TAXATION WITHIN THE STATE. 116
(E) COSTS OF PERMANENT IMPROVEMENTS THAT MAY BE FINANCED 118
4
WITH, AND PAID FROM THE PROCEEDS OF, SELF-SUPPORTING SECURITIES 120
ISSUED UNDER THIS SECTION INCLUDE, WITHOUT LIMITATION AS TO OTHER 121
COSTS PROPERLY ALLOCABLE TO THE PERMANENT IMPROVEMENTS, THE COSTS 122
OF: ACQUIRING, CONSTRUCTING, RECONSTRUCTING, REHABILITATING, 123
INSTALLING, REMODELING, RENOVATING, ENLARGING, EQUIPPING, 124
FURNISHING, OR OTHERWISE IMPROVING PERMANENT IMPROVEMENTS; SITE 125
CLEARANCE, IMPROVEMENT, AND PREPARATION; ACQUISITION OF REAL OR 126
PERSONAL PROPERTY; INDEMNITY AND SURETY BONDS AND PREMIUMS ON 127
INSURANCE; ALL RELATED DIRECT ADMINISTRATIVE EXPENSES AND 128
ALLOCABLE PORTIONS OF DIRECT COSTS OF THE ISSUER; ENGINEERING, 129
ARCHITECTURAL, LEGAL, AND OTHER CONSULTING AND PROFESSIONAL 130
SERVICES; DESIGNS, PLANS, SPECIFICATIONS, FEASIBILITY OR RATE 131
STUDIES, APPRAISALS, SURVEYS, AND ESTIMATES OF COST; INTEREST OR 132
INTEREST EQUIVALENT ON THE SECURITIES, WHETHER CAPITALIZED OR 133
NOT; FINANCING COSTS; TITLE WORK AND TITLE COMMITMENT, INSURANCE, 134
AND GUARANTIES; AMOUNTS NECESSARY TO ESTABLISH ANY DEBT SERVICE 135
RESERVE OR OTHER RESERVES AS REQUIRED BY THE PROCEEDINGS FOR THE 136
SECURITIES; AUDITS; THE REIMBURSEMENT OF MONEYS ADVANCED OR 137
APPLIED BY OR BORROWED FROM ANY PERSON, WHETHER TO OR BY THE 138
ISSUER OR OTHERS, FROM WHATEVER SOURCE PROVIDED, FOR THE PAYMENT 139
OF ANY ITEM OR ITEMS OF COST OF THE PERMANENT IMPROVEMENTS; AND 140
ALL OTHER EXPENSES NECESSARY OR INCIDENTAL TO PLANNING OR 141
DETERMINING FEASIBILITY OR PRACTICABILITY WITH RESPECT TO 142
PERMANENT IMPROVEMENTS OR NECESSARY OR INCIDENTAL TO THE 143
ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, 144
INSTALLATION, REMODELING, RENOVATION, ENLARGEMENT, EQUIPPING, 145
FURNISHING, OR OTHER IMPROVEMENT OF THE PERMANENT IMPROVEMENTS, 146
THE FINANCING OF THE PERMANENT IMPROVEMENTS, AND THE PLACING OF 147
THE PERMANENT IMPROVEMENTS IN CONDITION FOR USE AND OPERATION, 148
AND ALL LIKE OR RELATED COSTS, INCLUDING ANY ONE, PART, OR 149
COMBINATION OF, OR THE ISSUER'S SHARE OF, THOSE COSTS AND 150
EXPENSES. 151