As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                                   H.B. No. 76   5            

      1999-2000                                                    6            


        REPRESENTATIVES BRADING-TERWILLEGER-OLMAN-TAYLOR-          8            

               SCHULER-LOGAN-SULZER-MOTTLEY-OPFER                  9            


                                                                   10           

                           A   B I L L                                          

             To amend section 133.04 of the Revised Code to        12           

                exempt from the calculation of a subdivision's     14           

                debt limit a  specified portion of the principal   15           

                amount of securities issued for permanent          18           

                improvements if payments in lieu of taxes are      19           

                pledged to repay those securities.                 20           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        22           

      Section 1.  That section 133.04 of the Revised Code be       24           

amended to read as follows:                                        26           

      Sec. 133.04.  (A)  As used in this chapter, "net             37           

indebtedness" means, as determined pursuant to this section, the   38           

principal amount of the outstanding securities of a subdivision    39           

less the amount held in a bond retirement fund to the extent such  40           

THAT amount is not taken into account in determining the           42           

principal amount outstanding under division (AA) of section        43           

133.01 of the Revised Code.  For purposes of this definition, the  44           

principal amount of outstanding securities includes the principal  45           

amount of outstanding securities of another subdivision            46           

apportioned to the subdivision as a result of acquisition of       47           

territory, and excludes the principal amount of outstanding        48           

securities of the subdivision apportioned to another subdivision   49           

as a result of loss of territory and the payment or reimbursement  50           

obligations of the subdivision under credit enhancement            51           

facilities relating to outstanding securities.                     52           

       (B)  In calculating the net indebtedness of a subdivision,  54           

                                                          2      

                                                                 
none of the following securities, including anticipatory           55           

securities issued in anticipation of their issuance, shall be      56           

considered:                                                        57           

      (1)  Securities issued in anticipation of the levy or        59           

collection of special assessments, either in original or refunded  60           

form;                                                              61           

      (2)  Securities issued in anticipation of the collection of  63           

current revenues for the fiscal year or other period not to        64           

exceed twelve consecutive months, or securities issued in          65           

anticipation of the collection of the proceeds from a              66           

specifically identified voter-approved tax levy;                   67           

      (3)  Securities issued for purposes described in section     69           

133.12 of the Revised Code;                                        70           

      (4)  Securities issued under Chapter 122., 140., 165.,       72           

725., or 761., or section 131.23 of the Revised Code;              73           

      (5)  Securities issued to pay final judgments or             76           

court-approved settlements underauthorizing laws and securities    77           

issued under section 2744.081 of the Revised Code;                              

      (6)  Securities issued to pay costs of permanent             79           

improvements to the extent they are issued in anticipation of the  80           

receipt of, and are payable as to principal from, federal or       81           

state grants for that principal or for the costs of those          82           

permanent improvements;                                            83           

      (7)  Securities issued to evidence loans from the state      85           

capital improvements fund pursuant to Chapter 164. of the Revised  86           

Code;                                                              87           

      (8)  NOT MORE THAN SEVENTY-FIVE PER CENT, AS DETERMINED BY   89           

THE LEGISLATIVE AUTHORITY OF A COUNTY, TOWNSHIP, OR MUNICIPAL      90           

CORPORATION, OF THE PRINCIPAL AMOUNT OF SECURITIES ISSUED TO PAY   91           

COSTS OF PERMANENT IMPROVEMENTS, EXCEPT THAT THE PERCENTAGE        93           

EXCLUDED FROM CONSIDERATION ALSO SHALL NOT EXCEED THE PERCENTAGE   94           

OF THE DEBT CHARGES ON THOSE SECURITIES THAT THE FISCAL OFFICER    95           

ESTIMATES CAN BE PAID FROM RECEIPTS OF THE COUNTY, TOWNSHIP, OR    96           

MUNICIPAL CORPORATION FROM PAYMENTS IN LIEU OF TAXES UNDER         97           

                                                          3      

                                                                 
SECTION 5709.42, 5709.74, OR 5709.79 OF THE REVISED CODE THAT ARE  98           

PLEDGED, COVENANTED TO BE CHARGED AND COLLECTED, OR APPROPRIATED                

FOR THE PAYMENT OF DEBT CHARGES;                                   99           

      (9)  Other securities, including self-supporting             101          

securities, excepted by law from the calculation of net            102          

indebtedness or from the application of this chapter;              103          

      (9)(10)  Any other securities outstanding on the effective   105          

date of this amendment OCTOBER 30, 1989, and then excepted from    109          

the calculation of net indebtedness or from the application of     110          

this chapter, and securities issued at any time to fund or refund  111          

those securities.                                                  112          

      Section 2.  That existing section 133.04 of the Revised      114          

Code is hereby repealed.                                           115