As Passed by the House                        1            

123rd General Assembly                                             4            

   Regular Session                               Am. H.B. No. 76   5            

      1999-2000                                                    6            


    REPRESENTATIVES BRADING-TERWILLEGER-OLMAN-TAYLOR-SCHULER-      8            

       LOGAN-SULZER-MOTTLEY-OPFER-HARTNETT-HAINES-AUSTRIA-         9            

                         BRITTON-BARRETT                           10           


_________________________________________________________________   11           

                          A   B I L L                                           

             To amend section 133.04 of the Revised Code to        13           

                exempt from the calculation of a subdivision's     15           

                debt limit a  specified portion of the principal   16           

                amount of securities issued for permanent          19           

                improvements if payments in lieu of taxes are      20           

                pledged to repay those securities.                 21           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        23           

      Section 1.  That section 133.04 of the Revised Code be       25           

amended to read as follows:                                        27           

      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           

amount is not taken into account in determining the principal      41           

amount outstanding under division (AA) of section 133.01 of the    42           

Revised Code.  For purposes of this definition, the principal      43           

amount of outstanding securities includes the principal amount of  44           

outstanding securities of another subdivision apportioned to the   45           

subdivision as a result of acquisition of territory, and excludes  46           

the principal amount of outstanding securities of the subdivision  47           

apportioned to another subdivision as a result of loss of          48           

territory and the payment or reimbursement obligations of the      49           

subdivision under credit enhancement facilities relating to        50           

outstanding securities.                                            51           

                                                          2      


                                                                 
      (B)  In calculating the net indebtedness of a subdivision,   53           

none of the following securities, including anticipatory           54           

securities issued in anticipation of their issuance, shall be      55           

considered:                                                        56           

      (1)  Securities issued in anticipation of the levy or        58           

collection of special assessments, either in original or refunded  59           

form;                                                              60           

      (2)  Securities issued in anticipation of the collection of  62           

current revenues for the fiscal year or other period not to        63           

exceed twelve consecutive months, or securities issued in          64           

anticipation of the collection of the proceeds from a              65           

specifically identified voter-approved tax levy;                   66           

      (3)  Securities issued for purposes described in section     68           

133.12 of the Revised Code;                                        69           

      (4)  Securities issued under Chapter 122., 140., 165.,       71           

725., or 761., or section 131.23 of the Revised Code;              72           

      (5)  Securities issued to pay final judgments or court       74           

approved settlements under authorizing laws and securities issued  75           

under section 2744.081 of the Revised Code;                        76           

      (6)  Securities issued to pay costs of permanent             78           

improvements to the extent they are issued in anticipation of the  79           

receipt of, and are payable as to principal from, federal or       80           

state grants or distributions for, or legally available for, that  82           

principal or for the costs of those 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 or from the state infrastructure bank pursuant to section     87           

5531.09 of the Revised Code;                                       88           

      (8)  THAT PERCENTAGE OF THE PRINCIPAL AMOUNT OF GENERAL      90           

OBLIGATION SECURITIES ISSUED BY A COUNTY, TOWNSHIP, OR MUNICIPAL   91           

CORPORATION TO PAY THE COSTS OF PERMANENT IMPROVEMENTS EQUAL TO    92           

THE PERCENTAGE OF THE DEBT CHARGES ON THOSE SECURITIES PAYABLE     93           

DURING THE CURRENT FISCAL YEAR THAT THE FISCAL OFFICER ESTIMATES   94           

CAN BE PAID DURING THE CURRENT FISCAL YEAR FROM PAYMENTS IN LIEU   95           

                                                          3      


                                                                 
OF TAXES UNDER SECTION 1728.11, 1728.111, 5709.42, 5709.74, OR                  

5709.79 OF THE REVISED CODE, AND THAT THE LEGISLATION AUTHORIZING  96           

THE ISSUANCE OF THE SECURITIES PLEDGES OR COVENANTS WILL BE USED   97           

FOR THE PAYMENT OF THOSE DEBT CHARGES; PROVIDED THAT THE AMOUNT    98           

EXCLUDED FROM CONSIDERATION UNDER DIVISION (B)(8) OF THIS SECTION  99           

SHALL NOT EXCEED THE LESSER OF THIRTY MILLION DOLLARS OR ONE-HALF  100          

PER CENT OF THE SUBDIVISION'S TAX VALUATION IN THE CASE OF A       101          

COUNTY OR TOWNSHIP, OR ONE AND ONE-TENTH PER CENT OF THE                        

SUBDIVISION'S TAX VALUATION IN THE CASE OF A MUNICIPAL             102          

CORPORATION;                                                                    

      (9)  Other securities, including self-supporting             105          

securities, excepted by law from the calculation of net            106          

indebtedness or from the application of this chapter;              107          

      (9)(10)  Any other securities outstanding on October 30,     109          

1989, and then excepted from the calculation of net indebtedness   113          

or from the application of this chapter, and securities issued at  114          

any time to fund or refund those securities.                       115          

      Section 2.  That existing section 133.04 of the Revised      117          

Code is hereby repealed.                                           118