As Passed by the Senate

124th General Assembly
Regular Session
2001-2002
Sub. H. B. No. 385


REPRESENTATIVES Blasdel, Carey, Grendell, Faber, Gilb, Schmidt, Widowfield, Evans, Webster, Barrett, Seitz, Setzer, Calvert, Niehaus, Lendrum, Flowers, Carano, Sferra, Fedor, Woodard, Collier, Barnes, Britton, Patton, Latell, Key, Coates



A BILL
To amend sections 122.651, 122.657, 122.658, 151.01,1
164.22, 164.23, 901.22, and 5301.691 of the Revised2
Code, and to amend Sections 4, 6, and 7 of Am. Sub.3
H.B. 3 of the 124th General Assembly to revise the4
procedures to be followed by park districts when5
applying for natural resources and parks and6
recreation grants, to create a revolving loan fund7
for repayments of loans made from the Clean Ohio8
Revitalization Fund, to provide that the9
Department of Agriculture is a coholder of and may10
share in enforcing local Clean Ohio Agricultural11
Easement Fund easements, and to make an12
appropriation.13


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

       Section 1. That sections 122.651, 122.657, 122.658, 151.01,14
164.22, 164.23, 901.22, and 5301.691 of the Revised Code be15
amended to read as follows:16

       Sec. 122.651. (A) There is hereby created the clean Ohio17
council consisting of the director of development or the18
director's designee, the director of environmental protection or19
the director's designee, the director of the Ohio public works20
commission as a nonvoting, ex officio member, one member of the21
majority party of the senate and one member of the minority party22
of the senate to be appointed by the president of the senate, one23
member of the majority party of the house of representatives and24
one member of the minority party of the house of representatives25
to be appointed by the speaker of the house of representatives,26
and seven members to be appointed by the governor with the advice27
and consent of the senate. Of the members appointed by the28
governor, one shall represent the interests of counties, one shall29
represent the interests of townships, one shall represent the30
interests of municipal corporations, two shall represent the31
interests of business and development, and two shall represent32
statewide environmental advocacy organizations. The members33
appointed by the governor shall reflect the demographic and34
economic diversity of the population of the state. Additionally,35
the governor's appointments shall represent all areas of the36
state. All appointments to the council shall be made not later37
than one hundred twenty days after the effective date of this38
sectionJuly 26, 2001.39

       (B) The members appointed by the president of the senate and40
speaker of the house of representatives shall serve at the41
pleasure of their appointing authorities. Of the initial members42
appointed by the governor to the clean Ohio council, four shall be43
appointed for two years and three shall be appointed for one year.44
Thereafter, terms of office for members appointed by the governor45
shall be for two years, with each term ending on the same day of46
the same month as did the term that it succeeds. Each of those47
members shall hold office from the date of appointment until the48
end of the term for which the member is appointed.49

       Members may be reappointed. Vacancies shall be filled in the50
same manner as provided for original appointments. Any member51
appointed to fill a vacancy occurring prior to the expiration date52
of the term for which the member was appointed shall hold office53
for the remainder of that term. A member shall continue in office54
after the expiration date of the member's term until the member's55
successor takes office or until a period of sixty days has56
elapsed, whichever occurs first. The governor may remove a member57
appointed by the governor for misfeasance, nonfeasance, or58
malfeasance in office.59

       (C) The director of development shall serve as the60
chairperson of the clean Ohio council. The council annually shall61
select from among its members a vice-chairperson and a secretary62
to keep a record of its proceedings. A majority vote of a quorum63
of the members of the council is necessary to take action on any64
matter. The council may adopt bylaws governing its operation,65
including bylaws that establish the frequency of meetings,66
procedures for reviewing eligible projects under sections 122.6567
to 122.658 of the Revised Code and policies and requirements68
established under section 122.657 of the Revised Code, and other69
necessary procedures.70

       (D) Members of the clean Ohio council shall be deemed to be71
public officials or officers only for the purposes of section 9.8672
and Chapters 102. and 2921. of the Revised Code. Serving as a73
member of the clean Ohio council does not constitute holding a74
public office or position of employment under the laws of this75
state and does notso as to constitute grounds for removal of76
public officers or employees serving as members of the council77
from their offices or positions of employment. Members of the78
council shall file with the Ohio ethics commission the disclosure79
statement described in division (A) of section 102.02 of the80
Revised Code on the form prescribed by the commission and be81
subject to divisions (C) and (D) of that section. Members of the82
council shall serve without compensation for attending council83
meetings but shall receive their actual and necessary traveling84
and other expenses incurred in the performance of their official85
duties in accordance with the rules of the office of budget and86
management.87

       (E) Members appointed by the governor shallto represent the88
interests of counties, townships, and municipal corporations do89
not have a conflict of interest withby virtue of their service in90
the position. For the purposes of this division, "conflict of91
interest" means the taking of any action that violates any92
provision of Chapter 102. or 2921. of the Revised Codeas a member93
of the council that affects a public agency the person serves as94
an officer or employee.95

       (F) The department of development shall provide office space96
for the council. The council shall be assisted in its duties by97
the staff of the department of development and the environmental98
protection agency.99

       (G) Sections 101.82 to 101.87 of the Revised Code do not100
apply to the clean Ohio council.101

       Sec. 122.657.  For the purposes of sections 122.65 to 122.658102
of the Revised Code, the director of development shall establish103
policies and requirements regarding all of the following:104

       (A) The form and content of applications for grants or loans105
from the clean Ohio revitalization fund under section 122.652 of106
the Revised Code. The policies and requirements shall require107
that each application include, at a minimum, all of the following:108

       (1) The name, address, and telephone number of the applicant;109

       (2) The legal description of the property for which the grant110
or loan is requested;111

       (3) A summary description of the hazardous substances or112
petroleum present at the brownfield and a certified copy of the113
results of an assessment;114

       (4) A detailed explanation of the proposed cleanup or115
remediation of the brownfield, including an identification of the116
applicable cleanup standards, and a detailed description of the117
proposed use of the brownfield after completion of the cleanup or118
remediation;119

       (5) An estimate of the total cost to clean up or remediate120
the brownfield in order to comply with the applicable cleanup121
standards. The total cost shall include the cost of employing a122
certified professional under section 122.654 of the Revised Code.123

       (6) A detailed explanation of the portion of the estimated124
total cost of the cleanup or remediation of the brownfield that125
the applicant proposes to provide as required under sections126
122.653 and 122.658 of the Revised Code and financial records127
supporting the proposal;128

       (7) A certified copy of a resolution or ordinance approving129
the project that the applicant shall obtain from the board of130
township trustees of the township or the legislative authority of131
the municipal corporation in which the property is located,132
whichever is applicable;133

       (8) A description of the estimated economic benefit that will134
result from a cleanup or remediation of the brownfield;135

       (9) An application summary for purposes of review by an136
integrating committee or, if applicable, the executive committee137
of an integrating committee under division (B) of section 122.652138
of the Revised Code;139

       (10) With respect to applications for loans, information140
demonstrating that the applicant will implement a financial141
management plan that includes, without limitation, provisions for142
the satisfactory repayment of the loan;143

       (11) Any other provisions that the director determines should144
be included in an application.145

       (B) Procedures for conducting public meetings and providing146
public notice under division (A) of section 122.652 of the Revised147
Code;148

       (C) Criteria to be used by integrating committees or, if149
required under division (C) of section 122.652 of the Revised150
Code, executive committees of integrating committees when151
prioritizing projects under division (B) of section 122.652 of the152
Revised Code. The policies and requirements also shall establish153
procedures that integrating committees or, if required under154
division (C) of section 122.652 of the Revised Code, executive155
committees of integrating committees shall use in applying the156
criteria.157

       (D) A selection process that provides for the prioritization158
of brownfield cleanup or remediation projects for which grant or159
loan applications are submitted under section 122.652 of the160
Revised Code. The policies and requirements shall require the161
selection process to give priority to projects in which the162
post-cleanup or remediation use will be for a combination of163
residential, commercial, or industrial purposes, which may include164
the conversion of a portion of a brownfield to a recreation, park,165
or natural area that is integrated with the residential,166
commercial, or industrial use of the brownfield after cleanup or167
remediation, or will incorporate projects that are funded by168
grants awarded under sections 164.20 to 164.27 of the Revised169
Code. The policies and requirements shall require the selection170
process to incorporate and emphasize all of the following factors:171

       (1) The potential economic benefit that will result from the172
cleanup or remediation of a brownfield;173

       (2) The potential environmental improvement that will result174
from the cleanup or remediation of a brownfield;175

       (3) The amount and nature of the match provided by an176
applicant as required under sections 122.653 and 122.658 of the177
Revised Code;178

       (4) Funding priorities recommended by integrating committees179
or, if required under division (C) of section 122.652 of the180
Revised Code, executive committees of integrating committees under181
division (B) of section 122.652 of the Revised Code;182

       (5) The potential benefit to low-income communities,183
including minority communities, that will result from the cleanup184
or remediation of a brownfield;185

       (6) Any other factors that the director considers186
appropriate.187

       (E) The development of criteria that the director shall use188
when awarding grants under section 122.656 of the Revised Code.189
The criteria shall give priority to public health projects. In190
addition, the director, in consultation with the director of191
environmental protection, shall establish policies and192
requirements that require the criteria to include a public health193
project selection process that incorporates and emphasizes all of194
the following factors:195

       (1) The potential environmental improvement that will result196
from the cleanup or remediation;197

       (2) The ability of an applicant to access the property for198
purposes of the cleanup or remediation;199

       (3) The name and qualifications of the cleanup or200
remediation contractor;201

       (4) Any other factors that the director of development202
considers appropriate.203

       The director of development may develop any other policies204
and requirements that the director determines are necessary for205
the administration of section 122.656 of the Revised Code.206

       (F) The development of a brownfield cleanup and remediation207
oversight program to ensure compliance with sections 122.65 to208
122.658 of the Revised Code and policies and requirements209
established under this section. The policies and requirements210
shall require the program to include, at a minimum, both of the211
following:212

       (1) Procedures for the accounting of invoices and receipts213
and any other documents that are necessary to demonstrate that a214
cleanup or remediation was properly performed;215

       (2) Procedures that are necessary to provide a detailed216
explanation of the status of the property five years after the217
completed cleanup or remediation.218

       (G) A delineation of what constitutes administrative costs219
for purposes of divisions (C)(D) and (E)(F) of section 122.658 of220
the Revised Code;221

       (H) Procedures and requirements for making loans and loan222
agreements that include at least all of the following:223

       (1) Not more than fifteen per cent of moneys annually224
allocated to the clean Ohio revitalization fund shall be used for225
loans.226

       (2) The loans shall be made at or below market rates of227
interest, including, without limitation, interest-free loans.228

       (3) The recipient of a loan shall identify a source of229
security and a source of repayment of the loan.230

       (4) All payments of principal and interest on a loan shall231
be deposited in the state treasury and credited to the clean Ohio232
revitalization revolving loan fund.233

       (5) The clean Ohio council may accept notes and other forms234
of obligation to evidence indebtedness, accept mortgages, liens,235
pledges, assignments, and other security interests to secure such236
indebtedness, and take any actions that are considered by the237
council to be appropriate to protect such security and safeguard238
against losses, including, without limitation, foreclosure and239
bidding on the purchase of property upon foreclosure or other240
sale.241

       (I) Any other policies and requirements that the director242
determines are necessary for the administration of sections 122.65243
to 122.658 of the Revised Code.244

       Sec. 122.658. (A) The clean Ohio revitalization fund is245
hereby created in the state treasury. The fund shall consist of246
moneys credited to it pursuant to section 151.40 of the Revised247
Code and of payments of principal and interest on loans that are248
made from the fund in accordance with policies and requirements249
established under section 122.657 of the Revised Code. Moneys in250
the fund shall be used to make grants or loans for projects that251
have been approved by the clean Ohio council in accordance with252
section 122.653 of the Revised Code, except that the council253
annually shall devote twenty per cent of the net proceeds of254
obligations deposited in the clean Ohio revitalization fund for255
the purposes of section 122.656 of the Revised Code.256

       Moneys in the clean Ohio revitalization fund may be used to257
pay reasonable costs incurred by the department of development and258
the environmental protection agency in administering sections259
122.65 to 122.658 of the Revised Code. All investment earnings of260
the fund shall be credited to the fund. For two years after the261
effective date of this sectionJuly 26, 2001, investment earnings262
credited to the clean Ohio revitalization fund may be used to pay263
costs incurred by the department of development and the264
environmental protection agency pursuant to sections 122.65 to265
122.658 of the Revised Code.266

       The department of development shall administer the clean Ohio267
revitalization fund in accordance with this section, policies and268
requirements established under section 122.657 of the Revised269
Code, and the terms of agreements entered into by the council270
under section 122.653 of the Revised Code.271

       (B) Grants awarded and loans made under section 122.653 of272
the Revised Code shall provide not more than seventy-five per cent273
of the estimated total cost of a project. A grant or loan to any274
one project shall not exceed three million dollars. An applicant275
shall provide at least twenty-five per cent of the estimated total276
cost of a project. The applicant's share may consist of one or a277
combination of any of the following:278

       (1) Payment of the cost of acquiring the property for the279
purposes of sections 122.65 to 122.658 of the Revised Code;280

       (2) Payment of the reasonable cost of an assessment at the281
property;282

       (3) The reasonable value, as determined by the council, of283
labor and materials that will be contributed by the applicant in284
performing the cleanup or remediation;285

       (4) Moneys received by the applicant in any form for use in286
performing the cleanup or remediation;287

       (5) Loans secured by the applicant for the purpose of the288
cleanup or remediation of the brownfield.289

       Costs that were incurred more than two years prior to the290
submission of an application to the clean Ohio council for the291
acquisition of property, assessments, and labor and materials292
shall not be used as part of the applicant's matching share.293

       (C) The department of development shall not make any payment294
to an applicant from the clean Ohio revitalization fund to pay295
costs of the applicant that were not included in an application296
for a grant or loan under section 122.653 of the Revised Code or297
that exceed the amount of the estimated total cost of the project298
included in the application. If, upon completion of a project,299
the costs of the project are less than the amounts included in the300
application, the amounts included in the application less the301
amounts of the actual costs of the project shall be credited to302
the clean Ohio revitalization fund. However, the amounts credited303
shall be equivalent in percentage to the percentage of the costs304
of the project that were to be funded by the grant or loan from305
the fund.306

       (D) Grants awarded or loans made under section 122.653 of307
the Revised Code from the clean Ohio revitalization fund shall be308
used by an applicant only to pay the costs of the actual cleanup309
or remediation of a brownfield and shall not be used by an310
applicant to pay any administrative costs incurred by the311
applicant. Costs related to the use of a certified professional312
for purposes of section 122.654 of the Revised Code are not313
administrative costs and may be paid with moneys from grants314
awarded or loans made under section 122.653 of the Revised Code.315

       (E) The portion of net proceeds of obligations devoted316
under division (A) of this section for the purposes of section317
122.656 of the Revised Code shall be used to make grants for318
assessments, cleanup or remediation of brownfields, and public319
health projects that have been approved by the director of320
development under that section. The department of development321
shall administer section 122.656 of the Revised Code in accordance322
with this section, policies and requirements established under323
section 122.657 of the Revised Code, and the terms of agreements324
entered into by the director under section 122.656 of the Revised325
Code. The director shall not grant more than twenty-five million326
dollars for public health projects under section 122.656 of the327
Revised Code.328

       (F) Grants awarded under section 122.656 of the Revised Code329
shall be used by an applicant only to pay the costs of actually330
conducting an assessment, a cleanup or remediation of a331
brownfield, or a public health project and shall not be used by an332
applicant to pay any administrative costs incurred by the333
applicant. Costs related to the use of a certified professional334
for purposes of section 122.654 of the Revised Code are not335
administrative costs and may be paid with moneys from grants336
awarded under section 122.656 of the Revised Code.337

       (G)(1) The clean Ohio revitalization revolving loan fund is338
hereby created in the state treasury. Payments of principal and339
interest on loans made from the clean Ohio revitalization fund340
shall be credited to this revolving loan fund, as shall payments341
of principal and interest on loans made from the revolving loan342
fund itself. The revolving loan fund's investment earnings shall343
be credited to it.344

       (2) The clean Ohio revitalization revolving loan fund shall345
be used to make loans for the same purposes and subject to the346
same policies, requirements, criteria, and application procedures347
as loans made from the clean Ohio revitalization fund.348

       Sec. 151.01.  (A) As used in sections 151.01 to 151.09 and349
151.40 of the Revised Code and in the applicable bond proceedings350
unless otherwise provided:351

       (1) "Bond proceedings" means the resolutions, orders,352
agreements, and credit enhancement facilities, and amendments and353
supplements to them, or any one or more or combination of them,354
authorizing, awarding, or providing for the terms and conditions355
applicable to or providing for the security or liquidity of, the356
particular obligations, and the provisions contained in those357
obligations.358

       (2) "Bond service fund" means the respective bond service359
fund created by section 151.03, 151.04, 151.05, 151.06, 151.07, 360
151.08, 151.09, or 151.40 of the Revised Code, and any accounts in361
that fund, including all moneys and investments, and earnings from362
investments, credited and to be credited to that fund and accounts363
as and to the extent provided in the applicable bond proceedings.364

       (3) "Capital facilities" means capital facilities or projects365
as referred to in section 151.03, 151.04, 151.05, 151.06, 151.07,366
151.08, 151.09, or 151.40 of the Revised Code.367

       (4) "Costs of capital facilities" means the costs of368
acquiring, constructing, reconstructing, rehabilitating,369
remodeling, renovating, enlarging, improving, equipping, or370
furnishing capital facilities, and of the financing of those371
costs. "Costs of capital facilities" includes, without limitation,372
and in addition to costs referred to in section 151.03, 151.04,373
151.05, 151.06, 151.07, 151.08, 151.09, or 151.40 of the Revised374
Code, the cost of clearance and preparation of the site and of any375
land to be used in connection with capital facilities, the cost of376
any indemnity and surety bonds and premiums on insurance, all377
related direct administrative expenses and allocable portions of378
direct costs of the issuing authority, costs of engineering and379
architectural services, designs, plans, specifications, surveys,380
and estimates of cost, financing costs, interest on obligations381
from their date to the time when interest is to be paid from382
sources other than proceeds of obligations, amounts necessary to383
establish any reserves as required by the bond proceedings, the384
reimbursement of all moneys advanced or applied by or borrowed385
from any person or governmental agency or entity for the payment386
of any item of costs of capital facilities, and all other expenses387
necessary or incident to planning or determining feasibility or388
practicability with respect to capital facilities, and such other389
expenses as may be necessary or incident to the acquisition,390
construction, reconstruction, rehabilitation, remodeling,391
renovation, enlargement, improvement, equipment, and furnishing of392
capital facilities, the financing of those costs, and the placing393
of the capital facilities in use and operation, including any one,394
part of, or combination of those classes of costs and expenses.395

       (5) "Credit enhancement facilities," "financing costs," and396
"interest" or "interest equivalent" have the same meanings as in397
section 133.01 of the Revised Code.398

       (6) "Debt service" means principal, including any mandatory399
sinking fund or redemption requirements for retirement of400
obligations, interest and other accreted amounts, interest401
equivalent, and any redemption premium, payable on obligations. 402
If not prohibited by the applicable bond proceedings, debt service403
includes costs relating to credit enhancement facilities that are404
related to and represent, or are intended to provide a source of405
payment of or limitation on, other debt service.406

       (7) "Issuing authority" means the Ohio public facilities407
commission created in section 151.02 of the Revised Code for408
obligations issued under section 151.03, 151.04, 151.05, 151.07,409
or 151.09 of the Revised Code, or the treasurer of state, or the410
officer who by law performs the functions of that office, for411
obligations issued under section 151.06 , 151.08, or 151.40 of the412
Revised Code.413

       (8) "Net proceeds" means amounts received from the sale of414
obligations, excluding amounts used to refund or retire415
outstanding obligations, amounts required to be deposited into416
special funds pursuant to the applicable bond proceedings, and417
amounts to be used to pay financing costs.418

       (9) "Obligations" means bonds, notes, or other evidences of419
obligation of the state, including any appertaining interest420
coupons, issued pursuant to sections 151.01 to 151.09 or 151.40421
of the Revised Code.422

       (10) "Principal amount" means the aggregate of the amount as423
stated or provided for in the applicable bond proceedings as the424
amount on which interest or interest equivalent on particular425
obligations is initially calculated. Principal amount does not426
include any premium paid to the state by the initial purchaser of427
the obligations. "Principal amount" of a capital appreciation428
bond, as defined in division (C) of section 3334.01 of the Revised429
Code, means its face amount, and "principal amount" of a zero430
coupon bond, as defined in division (J) of section 3334.01 of the431
Revised Code, means the discounted offering price at which the432
bond is initially sold to the public, disregarding any purchase433
price discount to the original purchaser, if provided for pursuant434
to the bond proceedings.435

       (11) "Special funds" or "funds," unless the context indicates436
otherwise, means the bond service fund, and any other funds,437
including any reserve funds, created under the bond proceedings438
and stated to be special funds in those proceedings, including439
moneys and investments, and earnings from investments, credited440
and to be credited to the particular fund. Special funds do not441
include the school building program assistance fund created by442
section 3318.25 of the Revised Code, the higher education443
improvement fund created by division (F) of section 154.21 of the444
Revised Code, the highway capital improvement bond fund created by445
section 5528.53 of the Revised Code, the state parks and natural446
resources fund created by section 1557.02 of the Revised Code, the447
coal research and development fund created by section 1555.15 of448
the Revised Code, the clean Ohio conservation fund created by449
section 164.27 of the Revised Code, the clean Ohio revitalization450
fund created by section 122.658 of the Revised Code, or other451
funds created by the bond proceedings that are not stated by those452
proceedings to be special funds.453

       (B) Subject to Section 2l, 2m, 2n, 2o, or 15, and Section454
17, of Article VIII, Ohio Constitution, the state, by the issuing455
authority, is authorized to issue and sell, as provided in456
sections 151.03 to 151.09 or 151.40 of the Revised Code, and in457
respective aggregate principal amounts as from time to time458
provided or authorized by the general assembly, general459
obligations of this state for the purpose of paying costs of460
capital facilities or projects identified by or pursuant to461
general assembly action.462

       (C) Each issue of obligations shall be authorized by463
resolution or order of the issuing authority. The bond464
proceedings shall provide for or authorize the manner for465
determining the principal amount or maximum principal amount of466
obligations of an issue, the principal maturity or maturities, the467
interest rate or rates, the date of and the dates of payment of468
interest on the obligations, their denominations, and the place or469
places of payment of debt service which may be within or outside470
the state. Unless otherwise provided by law, the latest principal471
maturity may not be later than the earlier of the thirty-first day472
of December of the twenty-fifth calendar year after the year of473
issuance of the particular obligations or of the twenty-fifth474
calendar year after the year in which the original obligation to475
pay was issued or entered into. Sections 9.96, 9.98, 9.981,476
9.982, and 9.983 of the Revised Code apply to obligations. The477
purpose of the obligations may be stated in the bond proceedings478
in general terms, such as, as applicable, "financing or assisting479
in the financing of projects as provided in Section 2l of Article480
VIII, Ohio Constitution," "financing or assisting in the financing481
of highway capital improvement projects as provided in Section 2m482
of Article VIII, Ohio Constitution," "paying costs of capital483
facilities for a system of common schools throughout the state as484
authorized by Section 2n of Article VIII, Ohio Constitution,"485
"paying costs of capital facilities for state-supported and486
state-assisted institutions of higher education as authorized by487
Section 2n of Article VIII, Ohio Constitution," "paying costs of488
coal research and development as authorized by Section 15 of489
Article VIII, Ohio Constitution," "financing or assisting in the490
financing of local subdivision capital improvement projects as491
authorized by Section 2m of Article VIII, Ohio Constitution,"492
"paying costs of conservation projects as authorized by Section 2o493
of Article VIII, Ohio Constitution," or "paying costs of494
revitalization projects as authorized by Section 2o of Article495
VIII, Ohio Constitution."496

       (D) The issuing authority may appoint or provide for the497
appointment of paying agents, bond registrars, securities498
depositories, clearing corporations, and transfer agents, and may499
without need for any other approval retain or contract for the500
services of underwriters, investment bankers, financial advisers,501
accounting experts, marketing, remarketing, indexing, and502
administrative agents, other consultants, and independent503
contractors, including printing services, as are necessary in the504
judgment of the issuing authority to carry out the issuing505
authority's functions under this chapter. When the issuing506
authority is the Ohio public facilities commission, the issuing507
authority also may without need for any other approval retain or508
contract for the services of attorneys and other professionals for509
that purpose. Financing costs are payable, as may be provided in510
the bond proceedings, from the proceeds of the obligations, from511
special funds, or from other moneys available for the purpose.512

       (E) The bond proceedings may contain additional provisions513
customary or appropriate to the financing or to the obligations or514
to particular obligations including, but not limited to,515
provisions for:516

       (1) The redemption of obligations prior to maturity at the517
option of the state or of the holder or upon the occurrence of518
certain conditions, and at particular price or prices and under519
particular terms and conditions;520

       (2) The form of and other terms of the obligations;521

       (3) The establishment, deposit, investment, and application522
of special funds, and the safeguarding of moneys on hand or on523
deposit, in lieu of the applicability of provisions of Chapter524
131. or 135. of the Revised Code, but subject to any special525
provisions of sections 151.01 to 151.09 or 151.40 of the Revised526
Code with respect to the application of particular funds or527
moneys. Any financial institution that acts as a depository of528
any moneys in special funds or other funds under the bond529
proceedings may furnish indemnifying bonds or pledge securities as530
required by the issuing authority.531

       (4) Any or every provision of the bond proceedings being532
binding upon the issuing authority and upon such governmental533
agency or entity, officer, board, commission, authority, agency,534
department, institution, district, or other person or body as may535
from time to time be authorized to take actions as may be536
necessary to perform all or any part of the duty required by the537
provision;538

       (5) The maintenance of each pledge or instrument comprising539
part of the bond proceedings until the state has fully paid or540
provided for the payment of the debt service on the obligations or541
met other stated conditions;542

       (6) In the event of default in any payments required to be543
made by the bond proceedings, or by any other agreement of the544
issuing authority made as part of a contract under which the545
obligations were issued or secured, including a credit enhancement546
facility, the enforcement of those payments by mandamus, a suit in547
equity, an action at law, or any combination of those remedial548
actions;549

       (7) The rights and remedies of the holders or owners of550
obligations or of book-entry interests in them, and of third551
parties under any credit enhancement facility, and provisions for552
protecting and enforcing those rights and remedies, including553
limitations on rights of individual holders or owners;554

       (8) The replacement of mutilated, destroyed, lost, or stolen555
obligations;556

       (9) The funding, refunding, or advance refunding, or other557
provision for payment, of obligations that will then no longer be558
outstanding for purposes of this section or of the applicable bond559
proceedings;560

       (10) Amendment of the bond proceedings;561

       (11) Any other or additional agreements with the owners of562
obligations, and such other provisions as the issuing authority563
determines, including limitations, conditions, or qualifications,564
relating to any of the foregoing.565

       (F) The great seal of the state or a facsimile of it may be566
affixed to or printed on the obligations. The obligations567
requiring execution by or for the issuing authority shall be568
signed as provided in the bond proceedings. Any obligations may569
be signed by the individual who on the date of execution is the570
authorized signer although on the date of these obligations that571
individual is not an authorized signer. In case the individual572
whose signature or facsimile signature appears on any obligation573
ceases to be an authorized signer before delivery of the574
obligation, that signature or facsimile is nevertheless valid and575
sufficient for all purposes as if that individual had remained the576
authorized signer until delivery.577

       (G) Obligations are investment securities under Chapter578
1308. of the Revised Code. Obligations may be issued in bearer or579
in registered form, registrable as to principal alone or as to580
both principal and interest, or both, or in certificated or581
uncertificated form, as the issuing authority determines. 582
Provision may be made for the exchange, conversion, or transfer of583
obligations and for reasonable charges for registration, exchange,584
conversion, and transfer. Pending preparation of final585
obligations, the issuing authority may provide for the issuance of586
interim instruments to be exchanged for the final obligations.587

       (H) Obligations may be sold at public sale or at private588
sale, in such manner, and at such price at, above or below par,589
all as determined by and provided by the issuing authority in the590
bond proceedings.591

       (I) Except to the extent that rights are restricted by the592
bond proceedings, any owner of obligations or provider of a credit593
enhancement facility may by any suitable form of legal proceedings594
protect and enforce any rights relating to obligations or that595
facility under the laws of this state or granted by the bond596
proceedings. Those rights include the right to compel the597
performance of all applicable duties of the issuing authority and598
the state. Each duty of the issuing authority and that599
authority's officers, staff, and employees, and of each state600
entity or agency, or using district or using institution, and its601
officers, members, staff, or employees, undertaken pursuant to the602
bond proceedings, is hereby established as a duty of the entity or603
individual having authority to perform that duty, specifically604
enjoined by law and resulting from an office, trust, or station605
within the meaning of section 2731.01 of the Revised Code. The606
individuals who are from time to time the issuing authority,607
members or officers of the issuing authority, or those members'608
designees acting pursuant to section 154.02 of the Revised Code,609
or the issuing authority's officers, staff, or employees, are not610
liable in their personal capacities on any obligations or611
otherwise under the bond proceedings.612

       (J)(1) Subject to Section 2l, 2m, 2n, 2o, or 15, and613
Section 17, of Article VIII, Ohio Constitution and sections 151.01614
to 151.09 or 151.40 of the Revised Code, the issuing authority615
may, in addition to the authority referred to in division (B) of616
this section, authorize and provide for the issuance of:617

       (a) Obligations in the form of bond anticipation notes, and618
may provide for the renewal of those notes from time to time by619
the issuance of new notes. The holders of notes or appertaining620
interest coupons have the right to have debt service on those621
notes paid solely from the moneys and special funds that are or622
may be pledged to that payment, including the proceeds of bonds or623
renewal notes or both, as the issuing authority provides in the624
bond proceedings authorizing the notes. Notes may be additionally625
secured by covenants of the issuing authority to the effect that626
the issuing authority and the state will do all things necessary627
for the issuance of bonds or renewal notes in such principal628
amount and upon such terms as may be necessary to provide moneys629
to pay when due the debt service on the notes, and apply their630
proceeds to the extent necessary, to make full and timely payment631
of debt service on the notes as provided in the applicable bond632
proceedings. In the bond proceedings authorizing the issuance of633
bond anticipation notes the issuing authority shall set forth for634
the bonds anticipated an estimated schedule of annual principal635
payments the latest of which shall be no later than provided in636
division (C) of this section. While the notes are outstanding637
there shall be deposited, as shall be provided in the bond638
proceedings for those notes, from the sources authorized for639
payment of debt service on the bonds, amounts sufficient to pay640
the principal of the bonds anticipated as set forth in that641
estimated schedule during the time the notes are outstanding,642
which amounts shall be used solely to pay the principal of those643
notes or of the bonds anticipated.644

       (b) Obligations for the refunding, including funding and645
retirement, and advance refunding with or without payment or646
redemption prior to maturity, of any obligations previously647
issued. Refunding obligations may be issued in amounts sufficient648
to pay or to provide for repayment of the principal amount,649
including principal amounts maturing prior to the redemption of650
the remaining prior obligations, any redemption premium, and651
interest accrued or to accrue to the maturity or redemption date652
or dates, payable on the prior obligations, and related financing653
costs and any expenses incurred or to be incurred in connection654
with that issuance and refunding. Subject to the applicable bond655
proceedings, the portion of the proceeds of the sale of refunding656
obligations issued under division (J)(1)(b) of this section to be657
applied to debt service on the prior obligations shall be credited658
to an appropriate separate account in the bond service fund and659
held in trust for the purpose by the issuing authority or by a660
corporate trustee. Obligations authorized under this division661
shall be considered to be issued for those purposes for which the662
prior obligations were issued.663

       (2) Except as otherwise provided in sections 151.01 to 664
151.09 or 151.40 of the Revised Code, bonds or notes authorized665
pursuant to division (J) of this section are subject to the666
provisions of those sections pertaining to obligations generally.667

       (3) The principal amount of refunding or renewal obligations668
issued pursuant to division (J) of this section shall be in669
addition to the amount authorized by the general assembly as670
referred to in division (B) of the following sections: section671
151.03, 151.04, 151.05, 151.06, 151.07, 151.08, 151.09, or 151.40672
of the Revised Code.673

       (K) Obligations are lawful investments for banks, savings674
and loan associations, credit union share guaranty corporations,675
trust companies, trustees, fiduciaries, insurance companies,676
including domestic for life and domestic not for life, trustees or677
other officers having charge of sinking and bond retirement or678
other special funds of the state and political subdivisions and679
taxing districts of this state, the sinking fund, the680
administrator of workers' compensation subject to the approval of681
the workers' compensation board, the state teachers retirement682
system, the public employees retirement system, the school683
employees retirement system, and the Ohio police and fire pension684
fund, notwithstanding any other provisions of the Revised Code or685
rules adopted pursuant to those provisions by any state agency686
with respect to investments by them, and are also acceptable as687
security for the repayment of the deposit of public moneys. The688
exemptions from taxation in Ohio as provided for in particular689
sections of the Ohio Constitution and section 5709.76 of the690
Revised Code apply to the obligations.691

       (L)(1) Unless otherwise provided or provided for in any692
applicable bond proceedings, moneys to the credit of or in a693
special fund shall be disbursed on the order of the issuing694
authority. No such order is required for the payment, from the695
bond service fund or other special fund, when due of debt service696
or required payments under credit enhancement facilities.697

       (2) Payments received by the state under interest rate698
hedges entered into as credit enhancement facilities under this699
chapter shall be deposited to the credit of the bond service fund700
for the obligations to which those credit enhancement facilities701
relate.702

       (M) The full faith and credit, revenue, and taxing power of703
the state are and shall be pledged to the timely payment of debt704
service on outstanding obligations as it comes due, all in705
accordance with Section 2l, 2m, 2n, 2o, or 15 of Article VIII,706
Ohio Constitution, and section 151.03, 151.04, 151.05, 151.06,707
151.07, 151.08, or 151.09 of the Revised Code. Moneys referred708
to in Section 5a of Article XII, Ohio Constitution, may not be709
pledged or used for the payment of debt service except on710
obligations referred to in section 151.06 of the Revised Code. The711
state covenants, and that covenant shall be controlling712
notwithstanding any other provision of law, that the state and the713
applicable officers and agencies of the state, including the714
general assembly, shall, so long as any obligations are715
outstanding in accordance with their terms, maintain statutory716
authority for and cause to be levied, collected and applied717
sufficient pledged excises, taxes, and revenues of the state so718
that the revenues shall be sufficient in amounts to pay debt719
service when due, to establish and maintain any reserves and other720
requirements, and to pay financing costs, including costs of or721
relating to credit enhancement facilities, all as provided for in722
the bond proceedings. Those excises, taxes, and revenues are and723
shall be deemed to be levied and collected, in addition to the724
purposes otherwise provided for by law, to provide for the payment725
of debt service and financing costs in accordance with sections726
151.01 to 151.08151.09 of the Revised Code and the bond727
proceedings.728

       (N) The general assembly may from time to time repeal or729
reduce any excise, tax, or other source of revenue pledged to the730
payment of the debt service pursuant to Section 2l, 2m, 2n, 2o, or731
15 of Article VIII, Ohio Constitution, and sections 151.01 to 732
151.09 or 151.40 of the Revised Code, and may levy, collect and733
apply any new or increased excise, tax, or revenue to meet the734
pledge, to the payment of debt service on outstanding obligations,735
of the state's full faith and credit, revenue and taxing power, or736
of designated revenues and receipts, except fees, excises or taxes737
referred to in Section 5a of Article XII, Ohio Constitution, for738
other than obligations referred to in section 151.06 of the739
Revised Code and except net state lottery proceeds for other than740
obligations referred to in section 151.03 of the Revised Code.741
Nothing in division (N) of this section authorizes any impairment742
of the obligation of this state to levy and collect sufficient743
excises, taxes, and revenues to pay debt service on obligations744
outstanding in accordance with their terms.745

       (O) Each bond service fund is a trust fund and is hereby746
pledged to the payment of debt service on the applicable747
obligations. Payment of that debt service shall be made or748
provided for by the issuing authority in accordance with the bond749
proceedings without necessity for any act of appropriation. The750
bond proceedings may provide for the establishment of separate751
accounts in the bond service fund and for the application of those752
accounts only to debt service on specific obligations, and for753
other accounts in the bond service fund within the general754
purposes of that fund.755

       (P) Subject to the bond proceedings pertaining to any756
obligations then outstanding in accordance with their terms, the757
issuing authority may in the bond proceedings pledge all, or such758
portion as the issuing authority determines, of the moneys in the759
bond service fund to the payment of debt service on particular760
obligations, and for the establishment and maintenance of any761
reserves for payment of particular debt service.762

       (Q) For obligations issued pursuant to sections 151.01 to763
151.09 of the Revised Code, theThe issuing authority shall by the764
fifteenth day of the July of each fiscal year, certify or cause to765
be certified to the office of budget and management the total766
amount of moneys required during the current fiscal year to meet767
in full all debt service on the respective obligations and any768
related financing costs payable from the applicable bond service769
fund and not from the proceeds of refunding or renewal770
obligations. The issuing authority shall make or cause to be made771
supplemental certifications to the office of budget and management772
for each debt service payment date and at such other times during773
each fiscal year as may be provided in the bond proceedings or774
requested by that office. Debt service, costs of credit775
enhancement facilities, and other financing costs shall be set776
forth separately in each certification. If and so long as the777
moneys to the credit of the bond service fund, together with any778
other moneys available for the purpose, are insufficient to meet779
in full all payments when due of the amount required as stated in780
the certificate or otherwise, the office of budget and management781
shall at the times as provided in the bond proceedings, and782
consistent with any particular provisions in sections 151.03 to 783
151.09 and 151.40 of the Revised Code, transfer a sufficient784
amount to the bond service fund from the pledged revenues in the785
case of obligations issued pursuant to section 151.40 of the786
Revised Code, and in the case of other obligations from the787
revenues derived from excises, taxes, and other revenues,788
including net state lottery proceeds in the case of obligations789
referred to in section 151.03 of the Revised Code.790

       (R) Unless otherwise provided in any applicable bond791
proceedings, moneys to the credit of special funds may be invested792
by or on behalf of the state only in one or more of the following:793

       (1) Notes, bond, or other direct obligations of the United794
States or of any agency or instrumentality of the United States,795
or in no-front-end-load money market mutual funds consisting796
exclusively of those obligations, or in repurchase agreements,797
including those issued by any fiduciary, secured by those798
obligations, or in collective investment funds consisting799
exclusively of those obligations;800

       (2) Obligations of this state or any political subdivision801
of this state;802

       (3) Certificates of deposit of any national bank located in803
this state and any bank, as defined in section 1101.01 of the804
Revised Code, subject to inspection by the superintendent of805
financial institutions;806

       (4) The treasurer of state's pooled investment program under807
section 135.45 of the Revised Code.808

       The income from investments referred to in division (R) of809
this section shall, unless otherwise provided in sections 151.01810
to 151.09 or 151.40 of the Revised Code, be credited to special811
funds or otherwise as the issuing authority determines in the bond812
proceedings. Those investments may be sold or exchanged at times813
as the issuing authority determines, provides for, or authorizes.814

       (S) The treasurer of state shall have responsibility for815
keeping records, making reports, and making payments, relating to816
any arbitrage rebate requirements under the applicable bond817
proceedings.818

       Sec. 164.22. Natural resources assistance councils shall819
review and approve or disapprove applications in accordance with820
sections 164.20 to 164.27 of the Revised Code for grants for821
projects that propose to do either of the following:822

       (A) Provide for open space acquisition and related823
development of those open spaces, including the aquisition824
acquisition of easements. Open space acquisition projects include825
acquisition of land or rights in land for parks, forests,826
wetlands, natural areas that protect an endangered plant or animal827
population, other natural areas, and connecting corridors for828
natural areas. Related development projects include projects for829
the construction or enhancement of facilities that are necessary830
to make an open space area accessible and useable by the general831
public. Projects proposed pursuant to division (A) of this832
section shall emphasize the following:833

       (1) The support of comprehensive open space planning and834
incorporation of aesthetically pleasing and ecologically informed835
design;836

       (2) The enhancement of economic development that relies on837
recreation and ecotourism in areas with relatively high838
unemployment and lower incomes;839

       (3) The protection of habitat for rare, threatened, and840
endangered species or the preservation of high quality, viable841
habitat for plant and animal species;842

       (4) The preservation of existing high quality wetlands or843
other scarce natural resources within the geographical844
jurisdiction of the council;845

       (5) The inclusion of pedestrian or bicycle linkages to other846
open-space preserves and population centers;847

       (6) The enhancement of educational opportunities and848
provision of physical links to schools and after-school centers;849

       (7)(6) The preservation or restoration of water quality,850
natural stream channels, functioning floodplains, wetlands,851
streamside forests, and other natural features that contribute to852
the quality of life in this state and to the state's natural853
heritage. Projects shall not include hydromodification projects854
such as dams, dredging, sedimentation, and bank clearing and shall855
not accelerate untreated water runoff or encourage invasive856
nonnative species.857

       (8)(7) The reduction or elimination of nonnative, invasive858
species of plants or animals;859

       (9)(8) The proper management of areas where safe fishing,860
hunting, and trapping may take place in a manner that will861
preserve a balanced natural ecosystem.862

       (B) Protect and enhance riparian corridors or watersheds,863
including the protection and enhancement of streams, rivers,864
lakes, and other waters of the state. Such projects may include,865
without limitation, the reforestation of land or the planting of866
vegetation for filtration purposes; the fee simple acquisition of867
lands for the purpose of providing access to riparian corridors or868
watersheds or for other purposes necessary for the protection and869
enhancement of riparian corridors or watersheds; and the870
acquisition of easements for the purpose of protecting and871
enhancing riparian corridors or watersheds. Projects proposed872
pursuant to division (B) of this section shall emphasize the873
following:874

       (1) The increase of habitat protection;875

       (2) Inclusion as part of a stream corridor-wide or876
watershed-wide plan;877

       (3) The provision of multiple recreational, economic, and878
aesthetic preservation benefits;879

       (4) The preservation or restoration of floodplain and880
streamside forest functions;881

       (5) The preservation of headwater streams;882

       (6) The restoration and preservation of aquatic biological883
communities.884

       Projects shall not initiate or perpetuate hydromodification885
projects such as dams, ditch development, or channelization.886

       Grant moneys may be used for preliminary costs related to887
projects that are eligible for funding under this section,888
including planning costs, design costs, engineering costs, costs889
of appraisals, environmental assessments, and archaeological890
surveys.891

       Sec. 164.23. (A) An entity seeking a grant for a project that892
is eligible for funding under section 164.22 of the Revised Code893
shall submit an application to the natural resources assistance894
council with geographical jurisdiction over the proposed project895
area. Entities that are eligible for funding are limited to local896
political subdivisions and nonprofit organizations. The director897
of the Ohio public works commission shall develop the form of the898
application and shall provide application forms to each council.899
The application shall require at least all of the following:900

       (1) An identification of the local political subdivision or901
nonprofit organization that is responsible for the execution and902
completion of the proposed project;903

       (2) A detailed description of the proposed project;904

       (3) An identification of the areas that are proposed to be905
protected, restored, preserved, or constructed;906

       (4) Detailed information concerning the practices and907
procedures that will be undertaken to complete the project;908

       (5) A formal detailed estimate of the project's cost;909

       (6) The amount and nature of the moneys or resources to be910
used as matching funds for the project. Matching funds shall911
constitute not less than twenty-five per cent of the total cost of912
the project and may consist of contributions of money by any913
person, any local political subdivision, or the federal914
government or of contributions in-kind by such parties through the915
purchase or donation of equipment, land, easements, labor, or916
materials necessary to complete the project.917

       (7) An identification of any participation by state agencies918
that may have expertise regarding the particular project and that919
may provide assistance with respect to the project;920

       (8) Information concerning the coordination of the project921
among local political subdivisions, state agencies, federal922
agencies, community organizations, conservation organizations, and923
local business groups;924

       (9) Information about any coordination that the project will925
have with projects being undertaken under the jurisdiction of926
other natural resources assistance councils throughout the state927
under sections 164.20 to 164.27 of the Revised Code or with928
projects being undertaken under sections 122.65 to 122.658 of the929
Revised Code;930

       (10) Information about public participation in the planning931
and execution of the project;932

       (11) Information about whether the general public will be933
given access to the project area upon the completion of the934
project;935

       (12) A timetable for completion of the proposed project.936

       (B) In addition to the application required under division937
(A) of this section, an applicant for a grant for a project shall938
include with the application all of the following:939

       (1) Except as otherwise provided in division (C) of this940
section, a copy of a resolution supporting the project from each941
county in which the proposed project is to be conducted and942
whichever of the following is applicable:943

       (a) If the proposed project is to be conducted wholly within944
the geographical boundaries of one township, a copy of a945
resolution supporting the project from the township;946

       (b) If the proposed project is to be conducted wholly within947
the geographical boundaries of one municipal corporation, a copy948
of a resolution supporting the project from the municipal949
corporation;950

       (c) If the proposed project is to be conducted in more than951
one, but fewer than five townships or municipal corporations, a952
copy of a resolution supporting the project from at least one-half953
of the total number of townships and municipal corporations in954
which the proposed project is to be conducted;955

       (d) If the proposed project is to be conducted in five or956
more townships or municipal corporations, a copy of a resolution957
supporting the project from at least three-fifths of the total958
number of townships and municipal corporations in which the959
proposed project is to be conducted.960

       However, if the applicant is a county and the proposed961
project is to be located wholly within the geographical boundaries962
of the county, the applicant shall not be required to include a963
copy of a resolution from any township or municipal corporation.964
If the applicant is a municipal corporation and the proposed965
project is to be located wholly within the geographical boundaries966
of the municipal corporation, the applicant shall not be required967
to include a copy of a resolution from the county in which it is968
located. If the applicant is a township and the proposed project969
is to be located wholly within the geographical boundaries of the970
township, the applicant shall not be required to include a copy of971
a resolution from the county in which it is located.972

       (2) Documentation that demonstrates that the applicant has973
the capacity, financial or otherwise, to complete the project for974
which the grant is sought and to provide any necessary ongoing975
maintenance of the project;976

       (3) Documentation that indicates compliance with division977
(A) of section 164.26 of the Revised Code related to the long-term978
ownership or control of the property that is the subject of the979
grant application.980

       (C)(1) Prior to submitting an application for a grant for a981
project under this section, an applicant that is a park district982
or other similar park authority shall submit a copy of the983
application toconsult with the legislative authority of each984
county, township, and municipal corporation in which the proposed985
project will be located. Not later than twenty-one days after986
receipt of the copy of the application, the legislative authority987
may adopt a resolution objecting to the proposed project.988

       If a legislative authority adopts a resolution by the end of989
the twenty-one-day period objecting to the proposed project, the990
legislative authority immediately shall send a copy of the991
resolution to the applicant and to the appropriate natural992
resources assistance council. If a legislative authority fails to993
adopt a resolution by the end of that period objecting to the994
proposed project, it shall be conclusively presumed that the995
legislative authority does not object to the proposed project.996

       (2) Except as otherwise provided in division (C)(3) of this997
section, if the applicant receives a copy of a resolution from any998
legislative authority objecting to the proposed project that was999
adopted by the end of the twenty-one-day period, the applicant1000
shall not submit the application to the appropriate natural1001
resources assistance council. If the applicant does not receive1002
any such resolutions, the applicant may proceed to submit the1003
application to the appropriate natural resources assistance1004
council and shall include with it an affidavit stating that the1005
applicant notified all affected counties, townships, and municipal1006
corporations as required under division (C)(1) of this section and1007
that the applicant did not receive any timely resolutions1008
objecting to the proposed project.1009

       The affidavit required under division (C)(2) of this section1010
is in lieu of the copies of resolutions required under division1011
(B)(1) of this section.1012

       If an applicant submits a false affidavit required under1013
division (C)(2) of this section, the appropriate natural resources1014
assistance council shall deny the application for a grant. If an1015
applicant has received a grant at the time that a false affidavit1016
is discovered, the applicant shall return all of the money awarded1017
in the grant.1018

       (3) If an applicant that is subject to division (C) of this1019
section proposes a project that will be located in more than one1020
county, township, or municipal corporation and receives a timely1021
resolution objecting to the proposed project from at least one,1022
but not all, of the legislative authorities of those counties,1023
townships, and municipal corporations, the applicant may submit an1024
application for, and be awarded a grant for, the portion of the1025
proposed project that will be located in the counties, townships,1026
and municipal corporations whose legislative authorities did not1027
adopt resolutions objecting to the proposed project.1028

       (D) Upon receipt of an application under division (A) of1029
this section and the information required under division (B) of1030
this section, a council may request additional information1031
concerning the proposed project to which the application and1032
information apply. Upon receiving such a request, the entity1033
proposing the project shall provide the additional information1034
requested.1035

       Sec. 901.22.  (A) The director of agriculture, in accordance1036
with Chapter 119. of the Revised Code, shall adopt rules that do1037
all of the following:1038

       (1) Establish procedures and eligibility criteria for making1039
matching grants to municipal corporations, counties, townships,1040
and charitable organizations described in division (B) of section1041
5301.69 of the Revised Code for the purchase of agricultural1042
easements. With respect to agricultural easements that are1043
purchased or proposed to be purchased with such matching grants1044
that consist in whole or in part of moneys from the clean Ohio1045
agricultural easement fund created in section 901.21 of the1046
Revised Code, the rules shall establish all of the following:1047

       (a) Procedures for all of the following:1048

       (i) Soliciting and accepting applications for matching1049
grants;1050

       (ii) Participation by local governments and by the public in1051
the process of making matching grants to charitable organizations;1052

       (iii) Notifying local governments, charitable organizations,1053
and organizations that represent the interests of farmers of the1054
ranking system established in rules adopted under division1055
(A)(1)(b) of this section.1056

       (b) A ranking system for applications for the matching1057
grants that is based on the soil type, proximity of the land or1058
other land that is conducive to agriculture as defined by rules1059
adopted under this section and that is the subject of an1060
application to other agricultural land or other land that is1061
conducive to agriculture as defined by rules adopted under this1062
section and that is already or is in the process of becoming1063
permanently protected from development, farm stewardship,1064
development pressure, and, if applicable, a local comprehensive1065
land use plan involved with a proposed agricultural easement. The1066
rules shall require that preference be given to proposed1067
agricultural easements that involve the greatest proportion of all1068
of the following:1069

       (i) Prime soils, unique or locally important soils,1070
microclimates, or similar features;1071

       (ii) Land that is adjacent to or that is in close proximity1072
to other agricultural land or other land that is conducive to1073
agriculture as defined by rules adopted under this section and1074
that is already or is in the process of becoming permanently1075
protected from development, by agricultural easement or otherwise,1076
so that a buffer would exist between the land involving the1077
proposed agricultural easement and areas that have been developed1078
or likely will be developed for purposes other than agriculture;1079

       (iii) The use of best management practices, including1080
federally or state approved conservation plans, and a history of1081
substantial compliance with applicable federal and state laws;1082

       (iv) Development pressure that is imminent, but not a result1083
of current location in the direct path of urban development;1084

       (v) Areas identified for agricultural protection in local1085
comprehensive land use plans.1086

       (c) Any other criteria that the director determines are1087
necessary for selecting applications for matching grants;1088

       (d) Requirements regarding the information that must be1089
included in the annual monitoring report that must be prepared for1090
an agricultural easement under division (D)(2) of section 5301.6911091
of the Revised Code, procedures for submitting a copy of the1092
report to the office of farmland preservation in the department of1093
agriculture, and requirements and procedures governing corrective1094
actions that may be necessary to enforce the terms of the1095
agricultural easement.1096

       (2) Establish provisions that shall be included in the1097
instrument conveying to a municipal corporation, county, township,1098
or charitable organization any agricultural easement purchased1099
with matching grant funds provided by the director under this1100
section, including, without limitation, all of the following1101
provisions:1102

       (a) A provision stating that an easement so purchased may be1103
extinguished only if an unexpected change in the conditions of or1104
surrounding the land that is subject to the easement makes1105
impossible or impractical the continued use of the land for the1106
purposes described in the easement, or if the requirements of the1107
easement are extinguished by judicial proceedings;1108

       (b) A provision requiring that, upon the sale, exchange, or1109
involuntary conversion of the land subject to the easement, the1110
holder of the easement shall be paid an amount of money that is at1111
least equal to the proportionate value of the easement compared to1112
the total value of the land at the time the easement was acquired;1113

       (c) A provision requiring that, upon receipt of the portion1114
of the proceeds of a sale, exchange, or involuntary conversion1115
described in division (A)(2)(b) of this section, the municipal1116
corporation, county, township, or charitable organization remit to1117
the director an amount of money equal to the percentage of the1118
cost of purchasing the easement it received as a matching grant1119
under this section.1120

       Moneys received by the director pursuant to rules adopted1121
under division (A)(2)(c) of this section shall be credited to the1122
agricultural easement purchase fund created in section 901.21 of1123
the Revised Code.1124

       (3) Establish a provision that provides a charitable1125
organization described in division (B) of section 5301.69 of the1126
Revised Code, municipal corporation, township, or county with the1127
option of purchasing agricultural easements either in installments1128
or with a lump sum payment. The rules shall include a requirement1129
that a charitable organization, municipal corporation, township,1130
or county negotiate with the seller of the agricultural easement1131
concerning any installment payment terms, including the dates and1132
amounts of payments and the interest rate on the outstanding1133
balance. The rules also shall require the director to approve any1134
method of payment that is undertaken in accordance with the rules1135
adopted under division (A)(3) of this section.1136

       (4) Establish any other requirements that the director1137
considers to be necessary or appropriate to implement or1138
administer a program to make matching grants under this section1139
and monitor those grants.1140

       (B) The director may develop guidelines regarding the1141
acquisition of agricultural easements by the department of1142
agriculture and the provisions of instruments conveying those1143
easements. The director may make the guidelines available to1144
public and private entities authorized to acquire and hold1145
agricultural easements.1146

       (C) The director may provide technical assistance in1147
developing a program for the acquisition and monitoring of1148
agricultural easements to public and private entities authorized1149
to hold agricultural easements. The technical assistance may1150
include, without limitation, reviewing and providing advisory1151
recommendations regarding draft instruments conveying agricultural1152
easements.1153

       (D) The director may make matching grants from the1154
agricultural easement purchase fund and the clean Ohio1155
agricultural easement fund to municipal corporations, counties,1156
townships, and charitable organizations described in division (B)1157
of section 5301.69 of the Revised Code, to assist those political1158
subdivisions and charitable organizations in purchasing1159
agricultural easements. Application for a matching grant shall be1160
made on forms prescribed and provided by the director. The1161
matching grants shall be made in compliance with the criteria and1162
procedures established in rules adopted under this section.1163
Instruments conveying agricultural easements purchased with1164
matching grant funds provided under this section, at a minimum,1165
shall include the mandatory provisions set forth in those rules.1166

       Matching grants made under this division using moneys from1167
the clean Ohio agricultural easement fund created in section1168
901.21 of the Revised Code may provide up to seventy-five per cent1169
of the value of an agricultural easement as determined by a1170
general real estate appraiser who is certified under Chapter 4763.1171
of the Revised Code. Not less than twenty-five per cent of the1172
value of the agricultural easement shall be provided by the1173
recipient of the matching grant or donated by the person who is1174
transferring the easement to the grant recipient. The amount of1175
such a matching grant used for the purchase of a single1176
agricultural easement shall not exceed one million dollars.1177

       (E) For any agricultural easement purchased with a matching1178
grant that consists in whole or in part of moneys from the clean1179
Ohio agricultural easement fund, the director shall be named as a1180
grantee on the instrument conveying the easement, as shall the1181
municipal corporation, county, township, or charitable1182
organization that receives the grant.1183

       (F)(1) The director shall monitor and evaluate the1184
effectiveness and efficiency of the agricultural easement program1185
as a farmland preservation tool. On or before July 1, 1999, and1186
the first day of July of each year thereafter, the director shall1187
prepare and submit a report to the chairpersons of the standing1188
committees of the senate and the house of representatives that1189
consider legislation regarding agriculture. The report shall1190
consider and address the following criteria to determine the1191
program's effectiveness:1192

       (a) The number of agricultural easements purchased during1193
the preceding year;1194

       (b) The location of those easements;1195

       (c) The number of acres of land preserved for agricultural1196
use;1197

       (d) The amount of money used by a municipal corporation,1198
township, or county from its general fund or special fund to1199
purchase the agricultural easements;1200

       (e) The number of state matching grants given to purchase1201
the agricultural easements;1202

       (f) The amount of state matching grant moneys used to1203
purchase the agricultural easements.1204

       (2) The report also shall consider and include, at a1205
minimum, the following information for each county to determine1206
the program's efficiency:1207

       (a) The total number of acres in the county;1208

       (b) The total number of acres in current agricultural use;1209

       (c) The total number of acres preserved for agricultural use1210
in the preceding year;1211

       (d) The average cost, per acre, of land preserved for1212
agricultural use in the preceding year.1213

       Sec. 5301.691.  (A)(1) Subject to divisions (A)(2) and (E)1214
of this section, the director of agriculture, with moneys credited1215
to the agricultural easement purchase fund created in section1216
901.21 of the Revised Code, may purchase agricultural easements in1217
the name of the state.1218

       (2) Not less than thirty days prior to the acquisition of an1219
agricultural easement under division (A)(1) of this section or the1220
extinguishment of such an easement purchased under that division,1221
the director shall provide written notice of the intention to do1222
so to the board of county commissioners of the county in which the1223
land that is or is proposed to be subject to the easement or1224
extinguishment is located, and either to the legislative authority1225
of the municipal corporation in which the land is located, if it1226
is located in an incorporated area, or to the board of township1227
trustees of the township in which the land is located, if it is1228
located in an unincorporated area. If, within thirty days after1229
the director provides the notice, the board of county1230
commissioners, legislative authority, or board of township1231
trustees requests an informational meeting with the director1232
regarding the proposed acquisition or extinguishment, the director1233
shall meet with the legislative authority or board to respond to1234
the board's or authority's questions and concerns. If a meeting1235
is timely requested under division (A)(2) of this section, the1236
director shall not undertake the proposed acquisition or1237
extinguishment until after the meeting has been concluded.1238

       The director, upon the director's own initiative and prior to1239
the purchase of an agricultural easement under division (A)(1) of1240
this section or the extinguishment of such an easement, may hold1241
an informational meeting with the board of county commissioners1242
and the legislative authority of the municipal corporation or1243
board of township trustees in which land that would be affected by1244
the proposed acquisition or extinguishment is located, to respond1245
to any questions and concerns of the board or authority regarding1246
the proposed acquisition or extinguishment.1247

       (B)(1) Subject to division (E) of this section, the1248
legislative authority of a municipal corporation, board of county1249
commissioners of a county, or board of trustees of a township,1250
with moneys in the political subdivision's general fund not1251
required by law or charter to be used for other specified purposes1252
or with moneys in a special fund of the political subdivision to1253
be used for the purchase of agricultural easements, may purchase1254
agricultural easements in the name of the municipal corporation,1255
county, or township.1256

       (2) Subject to division (E) of this section, the legislative1257
authority of a municipal corporation, board of county1258
commissioners of a county, or board of township trustees of a1259
township may acquire agricultural easements by gift, devise, or1260
bequest. Any terms may be included in an agricultural easement so1261
acquired that are necessary or appropriate to preserve on behalf1262
of the grantor of the easement the favorable tax consequences of1263
the gift, devise, or bequest under the "Internal Revenue Act of1264
1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.1265

       (C)(1) The term of an agricultural easement purchased wholly1266
or in part with money from the agricultural easement purchase fund1267
shall be perpetual and shall run with the land.1268

       (2) The term of an agricultural easement purchased by such a1269
legislative authority or board without the use of any money from1270
the agricultural easement purchase fund may be perpetual or for a1271
specified period. The agricultural easement shall run with the1272
land. The instrument conveying an agricultural easement for a1273
specified period shall include provisions specifying, at a1274
minimum, all of the following:1275

       (a) The consideration to be paid for the easement and manner1276
of payment;1277

       (b) Whether the easement is renewable and, if so, procedures1278
for its renewal;1279

       (c) The circumstances under which the easement may be1280
extinguished;1281

       (d) The method for determining the amount of money, if any,1282
due the holder of the easement upon extinguishment and for payment1283
of that amount to the holder.1284

       (D)(1) The director and each legislative authority of a1285
municipal corporation, board of county commissioners, or board of1286
township trustees, upon acquiring an agricultural easement by1287
purchase, gift, devise, or bequest under this section or section1288
901.21 of the Revised Code, shall name an appropriate1289
administrative officer, department, or division to supervise and1290
enforce the easement. A legislative authority or board may enter1291
into a contract with the board of park commissioners of a park1292
district established under Chapter 1545. of the Revised Code, the1293
board of park commissioners of a township park district1294
established under section 511.18 of the Revised Code, or the board1295
of supervisors of a soil and water conservation district1296
established under Chapter 1515. of the Revised Code having1297
territorial jurisdiction within the municipal corporation, county,1298
or township, or with a charitable organization described in1299
division (B) of section 5301.69 of the Revised Code, to supervise1300
on behalf of the legislative authority or board an agricultural1301
easement so acquired. The contract may be entered into on such1302
terms as are agreeable to the parties and shall specify or1303
prescribe a method for determining the amounts of any payments to1304
be made by the legislative authority or board of county1305
commissioners or township trustees for the performance of the1306
contract.1307

       (2) With respect to an agricultural easement purchased with1308
a matching grant that is made under division (D) of section 901.221309
of the Revised Code and that consists in whole or in part of1310
moneys from the clean Ohio agricultural easement fund created in1311
section 901.21 of the Revised Code, the recipient of the matching1312
grant shall make an annual monitoring visit to the land that is1313
the subject of the easement. The purpose of the visit is to1314
ensure that no development that is prohibited by the terms of the1315
easement has occurred or is occurring. In accordance with rules1316
adopted under division (A)(1)(d) of section 901.22 of the Revised1317
Code, the grant recipient shall prepare a written annual1318
monitoring report and submit it to the office of farmland1319
preservation in the department of agriculture. If necessary to1320
enforce the terms of the easement, the grant recipient shall take1321
corrective action in accordance with those rules. The director may1322
agree to share these monitoring and enforcement responsibilities1323
with the grant recipient.1324

       (E) The director; a municipal corporation, county, or1325
township; or a charitable organization described in division (B)1326
of section 5301.69 of the Revised Code, may acquire agricultural1327
easements by purchase, gift, devise, or bequest only on land that1328
is valued for purposes of real property taxation at its current1329
value for agricultural use under section 5713.31 of the Revised1330
Code or that constitutes a homestead when the easement is granted.1331

       (F) An agricultural easement acquired by the director under1332
division (A) of this section may be extinguished if an unexpected1333
change in the conditions of or surrounding the land that is1334
subject to the easement makes impossible or impractical the1335
continued use of the land for the purposes described in the1336
agricultural easement, or if the requirements of the easement are1337
extinguished by judicial proceedings. Upon the sale, exchange, or1338
involuntary conversion of the land subject to the easement, the1339
director shall be paid an amount of money that is at least equal1340
to the proportionate value of the easement compared to the total1341
value of the land at the time the easement was acquired. Moneys1342
so received shall be credited to the agricultural easement1343
purchase fund.1344

       An agricultural easement acquired by a municipal corporation,1345
county, or township under division (B) of this section may be1346
extinguished under the circumstances prescribed, and in accordance1347
with the terms and conditions set forth, in the instrument1348
conveying the agricultural easement. An agricultural easement1349
acquired by a charitable organization described in division (B) of1350
section 5301.69 of the Revised Code may be extinguished under the1351
circumstances prescribed, and in accordance with the terms and1352
conditions set forth, in the instrument conveying the agricultural1353
easement.1354

       Any instrument extinguishing an agricultural easement shall1355
be executed and recorded in the same manner as other instruments1356
conveying or terminating interests in real property.1357

       (G) Promptly after the recording and indexing of an1358
instrument conveying an agricultural easement to any person or to1359
a municipal corporation, county, or township or of an instrument1360
extinguishing an agricultural easement held by any person or such1361
a political subdivision, the county recorder shall mail, by1362
regular mail, a photocopy of the instrument to the office of1363
farmland preservation in the department of agriculture. The1364
photocopy shall be accompanied by an invoice for the applicable1365
fee established in section 317.32 of the Revised Code. Promptly1366
after receiving the photocopy and invoice, the office of farmland1367
preservation shall remit the fee to the county recorder.1368

       (H) The director, the legislative authority of a municipal1369
corporation, a board of county commissioners, or a board of1370
township trustees may receive and expend grants from any public or1371
private source for the purpose of purchasing agricultural1372
easements and supervising and enforcing them.1373

       Section 2. That existing sections 122.651, 122.657, 122.658,1374
151.01, 164.22, 164.23, 901.22, and 5301.691 of the Revised Code1375
are hereby repealed.1376

       Section 3. That Sections 4, 6, and 7 of Am. Sub. H.B. 3 of1377
the 124th General Assembly be amended to read as follows:1378

       "       Sec. 4. All items in this section are hereby appropriated as1379
designated out of any moneys in the state treasury to the credit1380
of the Clean Ohio Conservation Fund (Fund 056). The appropriations1381
made in this actAm. Sub. H.B. 3 of the 124th General Assembly are1382
in addition to any other capital appropriations made for the1383
2000-2002 biennium.1384

PWC PUBLIC WORKS COMMISSION
1385

Clean Ohio Conservation Fund1386

056 CAP-152 Clean Ohio Conservation $ 37,500,000 1387
TOTAL 056 Clean Ohio Conservation Fund $ 37,500,000 1388
TOTAL ALL BUDGET FUND GROUPS $ 37,500,000 1389

       CLEAN OHIO CONSERVATION1390

       The foregoing appropriation item CAP-152, Clean Ohio1391
Conservation, shall be used in accordance with sections 164.20 to1392
164.27 of the Revised Code. The Director of the Public Works1393
Commission may certify to the Director of Budget and Management1394
that a need exists to appropriate investment earnings to be used1395
in accordance with sections 164.20 to 164.27 of the Revised Code.1396
If the Director of Budget and Management determines pursuant to1397
sections 164.12 and 164.27 of the Revised Code that investment1398
earnings are available to support additional appropriations, such1399
amounts are hereby appropriated.1400

       Within the limits set forth in this actAm. Sub. H.B. 3 of1401
the 124th General Assembly, the Director of Budget and Management1402
shall establish accounts indicating source and amount of funds for1403
each appropriation made in this actAm. Sub. H.B. 3 of the 124th1404
General Assembly, and shall determine the form and manner in which1405
appropriation accounts shall be maintained. Expenditures from1406
appropriations contained in this actAm. Sub. H.B. 3 of the 124th1407
General Assembly shall be accounted for as though made in Am. Sub.1408
H.B. 640 of the 123rd General Assembly.1409

       The appropriations made in this actAm. Sub. H.B. 3 of the1410
124th General Assembly are subject to all provisions of Am. Sub.1411
H.B. 640 of the 123rd General Assembly that are general applicable1412
to such appropriations.1413

       Notwithstanding section 126.14 of the Revised Code,1414
appropriations from the Clean Ohio Conservation Fund (Fund 056) to1415
the Public Works Commission shall be released upon presentation of1416
a request to release the funds, by the Public Works Commission, to1417
the Director of Budget and Management.1418

       Sec. 6.  All items in this section are hereby appropriated as1419
designated out of any moneys in the state treasury to the credit1420
of the Clean Ohio Trail Fund (Fund 058061). The appropriations1421
made in this act are in addition to any other capital1422
appropriations made for the 2000-2002 biennium.1423

DNR DEPARTMENT OF NATURAL RESOURCES
1424

Clean Ohio Trail Fund1425

058 061 CAP-014 Clean Ohio Trail $ 6,250,000 1426
TOTAL 058 061 Clean Ohio Trail Fund ` $ 6,250,000 1427
TOTAL ALL BUDGET FUND GROUPS $ 6,250,000 1428

       CLEAN OHIO TRAIL1429

       The foregoing appropriation item CAP-014, Clean Ohio Trail,1430
shall be used in accordance with section 1519.05 of the Revised1431
Code. The Director of the Department of Natural Resources may1432
certify to the Director of Budget and Management that a need1433
exists to appropriate investment earnings to be used in accordance1434
with section 1519.05 of the Revised Code. If the Director of1435
Budget and Management determines pursuant to section 1519.05 of1436
the Revised Code that investment earnings are available to support1437
additional appropriations, such amounts are hereby appropriated.1438

       Within the limits set forth in this act, the Director of1439
Budget and Management shall establish accounts indicating source1440
and amount of funds for each appropriation made in this act, and1441
shall determine the form and manner in which appropriation1442
accounts shall be maintained. Expenditures from appropriations1443
contained in this act shall be accounted for as though made in Am.1444
Sub. H.B. 640 of the 123rd General Assembly.1445

       The appropriations made in this act are subject to all1446
provisions of Am. Sub. H.B. 640 of the 123rd General Assembly that1447
are generally applicable to such appropriations.1448

       Sec. 7.  All items in this section are hereby appropriated as1449
designated out of any moneys in the state treasury to the credit1450
of the Clean Ohio Trail Fund (Fund 058061). For all1451
appropriations made in this act, those in the first column are for1452
fiscal year 2002 and those in the second column are for fiscal1453
year 2003. The appropriations made in this act are in addition to1454
any other appropriations made for the 2001-2003 biennium.1455

DNR DEPARTMENT OF NATURAL RESOURCES
1456

Clean Ohio Trail Fund1457

058 061 725-405 Clean Ohio - Operating $ 150,000 $ 155,000 1458
TOTAL 058 061 Clean Ohio Trail Fund $ 150,000 $ 155,000 1459
TOTAL ALL BUDGET FUND GROUPS $ 150,000 $ 155,000 1460

       CLEAN OHIO - OPERATING1461

       The foregoing appropriations item 725-405, Clean Ohio -1462
Operating, shall be used by the Ohio Department of Natural1463
Resources in administering section 1519.05 of the Revised Code.1464

       Within the limits set forth in this act, the Director of1465
Budget and Management shall establish accounts indicating source1466
and amount of funds for each appropriation made in this act, and1467
shall determine the form and manner in which appropriation1468
accounts shall be maintained. Expenditures from appropriations1469
contained in this act shall be accounted for as though made in Am.1470
Sub. H.B. 94 of the 124th General Assembly.1471

       The appropriations made in this act are subject to all1472
provisions of Am. Sub. H.B. 94 of the 124th General Assembly that1473
are generally applicable to such appropriations."1474

       Section 4. That existing Sections 4, 6, and 7 of Am. Sub.1475
H.B. 3 of the 124th General Assembly are hereby repealed.1476

       Section 5. On the effective date of this section or as soon1477
as possible thereafter, the Director of Budget and Management1478
shall transfer $9,812.73 in cash from the State Accounting Fund1479
(Fund 105) to the Traffic Safety Fund (Fund 832). The transfer1480
will reimburse the Traffic Safety Fund for cash intercepted by the1481
Internal Revenue Service for an assessment unrelated to the1482
Traffic Safety Fund or the Department of Public Safety.1483

       Section 6. Notwithstanding any other provision of law to the1484
contrary, not later than June 30, 2002, the Director of Budget and1485
Management shall transfer up to $3,000,000 in cash from General1486
Revenue Fund appropriation item 035-407, Legislative Task Force on1487
Redistricting, under the budget of the Legislative Service1488
Commission to General Services Fund 106, appropriation item1489
055-612, General Reimbursement, under the budget of the Office of1490
the Attorney General. The amount transferred is hereby1491
appropriated.1492