As Passed by the Senate                       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-SENATOR BLESSING                   10           


_________________________________________________________________   12           

                          A   B I L L                                           

             To amend section 133.04 of the Revised Code to        14           

                exempt from the calculation of a subdivision's     16           

                debt limit a  specified portion of the principal   17           

                amount of securities issued for permanent          20           

                improvements if payments in lieu of taxes are      21           

                pledged to repay those securities.                 22           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        24           

      Section 1.  That section 133.04 of the Revised Code be       26           

amended to read as follows:                                        28           

      Sec. 133.04.  (A)  As used in this chapter, "net             38           

indebtedness" means, as determined pursuant to this section, the   39           

principal amount of the outstanding securities of a subdivision    40           

less the amount held in a bond retirement fund to the extent such  41           

amount is not taken into account in determining the principal      42           

amount outstanding under division (AA) of section 133.01 of the    43           

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

amount of outstanding securities includes the principal amount of  45           

outstanding securities of another subdivision apportioned to the   46           

subdivision as a result of acquisition of territory, and excludes  47           

the principal amount of outstanding securities of the subdivision  48           

apportioned to another subdivision as a result of loss of          49           

territory and the payment or reimbursement obligations of the      50           

subdivision under credit enhancement facilities relating to        51           

outstanding securities.                                            52           

                                                          2      


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

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 court       75           

approved settlements under authorizing laws and securities issued  76           

under section 2744.081 of the Revised Code;                        77           

      (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 or distributions for, or legally available for, that  83           

principal or for the costs of those permanent improvements;        84           

      (7)  Securities issued to evidence loans from the state      86           

capital improvements fund pursuant to Chapter 164. of the Revised  87           

Code or from the state infrastructure bank pursuant to section     88           

5531.09 of the Revised Code;                                       89           

      (8)  THAT PERCENTAGE OF THE PRINCIPAL AMOUNT OF GENERAL      91           

OBLIGATION SECURITIES ISSUED BY A COUNTY, TOWNSHIP, OR MUNICIPAL   92           

CORPORATION TO PAY THE COSTS OF PERMANENT IMPROVEMENTS EQUAL TO    93           

THE PERCENTAGE OF THE DEBT CHARGES ON THOSE SECURITIES PAYABLE     94           

DURING THE CURRENT FISCAL YEAR THAT THE FISCAL OFFICER ESTIMATES   95           

CAN BE PAID DURING THE CURRENT FISCAL YEAR FROM PAYMENTS IN LIEU   96           

                                                          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  97           

THE ISSUANCE OF THE SECURITIES PLEDGES OR COVENANTS WILL BE USED   98           

FOR THE PAYMENT OF THOSE DEBT CHARGES; PROVIDED THAT THE AMOUNT    99           

EXCLUDED FROM CONSIDERATION UNDER DIVISION (B)(8) OF THIS SECTION  100          

SHALL NOT EXCEED THE LESSER OF THIRTY MILLION DOLLARS OR ONE-HALF  101          

PER CENT OF THE SUBDIVISION'S TAX VALUATION IN THE CASE OF A       102          

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

SUBDIVISION'S TAX VALUATION IN THE CASE OF A MUNICIPAL             103          

CORPORATION;                                                                    

      (9)  Other securities, including self-supporting             106          

securities, excepted by law from the calculation of net            107          

indebtedness or from the application of this chapter;              108          

      (9)(10)  Any other securities outstanding on October 30,     110          

1989, and then excepted from the calculation of net indebtedness   114          

or from the application of this chapter, and securities issued at  115          

any time to fund or refund those securities.                       116          

      Section 2.  That existing section 133.04 of the Revised      118          

Code is hereby repealed.                                           119