SENATORS Robert Gardner, Mumper, Stivers, Schuler, Roberts, Amstutz, Carey, Carnes, White

To amend sections 133.09, 505.37, 505.50, and

1

5549.021, and to enact sections 505.267 and

2

4931.03 of the Revised Code to permit a board of

3

township trustees and boards of trustees of a

4

joint township police district, a township fire

5

district, a joint fire district, or a fire and

6

ambulance district to enter into lease or lease

7

with an option to purchase agreements for real and

8

personal property and to permit a telephone

9

company to construct telegraph or telephone lines

10

upon, along, and beneath the public roads,

11

highways, and waters that are in the

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unincorporated area of a township.

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

Section 1. That sections 133.09, 505.37, 505.50, and 5549.021	14
be amended and sections 505.267 and 4931.03 of the Revised Code be	15
enacted to read as follows:	16

Sec. 133.09.  (A) Unless it is a township that has adopted a	17
limited home rule government under Chapter 504. of the Revised	18
Code, a township shall not incur net indebtedness that exceeds an	19
amount equal to five per cent of its tax valuation and, except as	20
specifically authorized by section 505.262 of the Revised Code or	21
other laws, shall not incur any net indebtedness unless authorized	22
by vote of the electors.	23

(B) A township that has adopted a limited home rule	24
government under Chapter 504. of the Revised Code shall not incur	25
net indebtedness that exceeds an amount equal to ten and one-half	26
per cent of its tax valuation, or incur without a vote of the	27
electors net indebtedness that exceeds an amount equal to five and	28
one-half per cent of that tax valuation. In calculating the net	29
indebtedness of a township that has adopted a limited home rule	30
government, none of the following securities shall be considered:	31

(1) Self-supporting securities issued for any purpose;

32

(2) Securities issued for the purpose of purchasing,	33
constructing, improving, or extending water or sanitary or surface	34
and storm water sewerage systems or facilities, or a combination	35
of those systems or facilities, to the extent that an agreement	36
entered into with another subdivision requires the other	37
subdivision to pay to the township amounts equivalent to debt	38
charges on the securities;	39

(3) Securities that are not general obligations of the	40
township;	41

(4) Voted securities issued for the purposes of redevelopment	42
to the extent that their principal amount does not exceed an	43
amount equal to two per cent of the tax valuation of the township;	44

(5) Securities issued for the purpose of acquiring or	45
constructing roads, highways, bridges, or viaducts, or for the	46
purpose of acquiring or making other highway permanent	47
improvements, to the extent that the resolution of the board of	48
township trustees authorizing the issuance of the securities	49
includes a covenant to appropriate from money distributed to the	50
township under Chapter 4501., 4503., 4504., or 5735. of the	51
Revised Code a sufficient amount to cover debt charges on and	52
financing costs relating to the securities as they become due;	53

(6) Securities issued for energy conservation measures under	54
section 505.264 of the Revised Code.	55

(C) In calculating the net indebtedness of any township, no	56
obligation incurred under division (B) of section 513.17 or under	57
section 505.261, 505.264, 505.265, 505.267, or 505.37 of the	58
Revised Code shall be considered.	59

Sec. 505.267.  (A) As used in this section:

60

(1) "Lease-purchase agreement" has the same meaning as a	61
lease with an option to purchase.	62

(2) "Public obligation" has the same meaning as in section	63
133.01 of the Revised Code.	64

(B) For any purpose for which a board of township trustees,	65
or a board of trustees of a joint township police district, a	66
township fire district, a joint fire district, or a fire and	67
ambulance district is authorized to acquire real or personal	68
property, that board may enter into a lease-purchase agreement in	69
accordance with this section to acquire the property. The board's	70
resolution authorizing the lease-purchase agreement may provide	71
for the issuance of certificates of participation or other	72
evidences of fractionalized interests in the lease-purchase	73
agreement, for the purpose of financing, or refinancing or	74
refunding, any public obligation that financed or refinanced the	75
acquisition of the property. Sections 9.94, 133.03, and 133.30 of	76
the Revised Code shall apply to any such fractionalized interests.	77

The lease-purchase agreement shall provide for a series of	78
terms in which no term extends beyond the end of the fiscal year	79
of the township or district in which that term commences. In	80
total, the terms provided for in the agreement shall be for not	81
more than the useful life of the real or personal property that is	82
the subject of the agreement. A property's useful life shall be	83
determined either by the maximum number of installment payments	84
permitted under the statute that authorizes the board to acquire	85
the property or, if there is no such provision, by the maximum	86
number of years to maturity provided for the issuance of bonds in	87
division (B) of section 133.20 of the Revised Code for that	88
property. If the useful life cannot be determined under either of	89
those statutes, it shall be estimated as provided in division (C)	90
of section 133.20 of the Revised Code.	91

The lease-purchase agreement shall provide that, at the end	92
of the final term in the agreement, if all obligations of the	93
township or district have been satisfied, the title to the leased	94
property shall vest in the township or district executing the	95
lease-purchase agreement, if that title has not vested in the	96
township or district before or during the lease terms; except that	97
the lease-purchase agreement may require the township or district	98
to pay an additional lump sum payment as a condition of obtaining	99
that title.	100

(C) A board of trustees that enters into a lease-purchase	101
agreement under this section may do any of the following with the	102
property that is the subject of the agreement:	103

(1) If the property is personal property, assign the board's	104
rights to that property;	105

(2) Grant the lessor a security interest in the property;

106

(3) If the property is real property, grant leases,	107
easements, or licenses for underlying land or facilities under the	108
board's control for terms not exceeding five years beyond the	109
final term of the lease-purchase agreement.	110

(D) The authority granted in this section is in addition to,	111
and not in derogation of, any other financing authority provided	112
by law.	113

Sec. 505.37.  (A) The board of township trustees may	114
establish all necessary rules to guard against the occurrence of	115
fires and to protect the property and lives of the citizens	116
against damage and accidents, and may, with the approval of the	117
specifications by the prosecuting attorney or, if the township has	118
adopted limited home rule government under chapterChapter 504,.	119
of the Revised Code, with the approval of the specifications by	120
the township's law director, purchase, lease, lease with an option	121
to purchase, or otherwise provide any fire apparatus, mechanical	122
resuscitators, or other equipment, appliances, materials, fire	123
hydrants, and water supply for fire-fighting purposes that seems	124
advisable to the board. The board shall provide for the care and	125
maintenance of fire equipment, and, for these purposes, may	126
purchase, lease, lease with an option to purchase, or construct	127
and maintain necessary buildings, and it may establish and	128
maintain lines of fire-alarm communications within the limits of	129
the township. The board may employ one or more persons to maintain	130
and operate fire-fighting equipment, or it may enter into an	131
agreement with a volunteer fire company for the use and operation	132
of fire-fighting equipment. The board may compensate the members	133
of a volunteer fire company on any basis and in any amount that it	134
considers equitable.	135

(B) The boards of township trustees of any two or more	136
townships, or the legislative authorities of any two or more	137
political subdivisions, or any combination thereof, may, through	138
joint action, unite in the joint purchase, lease, lease with an	139
option to purchase, maintenance, use, and operation of	140
fire-fighting equipment, or for any other purpose designated in	141
sections 505.37 to 505.42 of the Revised Code, and may prorate the	142
expense of the joint action on any terms that are mutually agreed	143
upon.	144

(C) The board of township trustees of any township may, by	145
resolution, whenever it is expedient and necessary to guard	146
against the occurrence of fires or to protect the property and	147
lives of the citizens against damages resulting from their	148
occurrence, create a fire district of any portions of the township	149
that it considers necessary. The board may purchase, lease, lease	150
with an option to purchase, or otherwise provide any fire	151
apparatus, appliances, materials, fire hydrants, and water supply	152
for fire-fighting purposes, or may contract for the fire	153
protection for the fire district as provided in section 9.60 of	154
the Revised Code. The fire district so created shall be given a	155
separate name by which it shall be known.	156

Additional unincorporated territory of the township may be	157
added to a fire district upon the board's adoption of a resolution	158
authorizing the addition. A municipal corporation that is within	159
or adjoining the township may be added to a fire district upon the	160
board's adoption of a resolution authorizing the addition and the	161
municipal legislative authority's adoption of a resolution or	162
ordinance requesting the addition of the municipal corporation to	163
the fire district.	164

If the township fire district imposes a tax, additional	165
unincorporated territory of the township or a municipal	166
corporation that is within or adjoining the township shall become	167
part of the fire district only after all of the following have	168
occurred:	169

(1) Adoption by the board of township trustees of a	170
resolution approving the expansion of the territorial limits of	171
the district and, if the resolution proposes to add a municipal	172
corporation, adoption by the municipal legislative authority of a	173
resolution or ordinance requesting the addition of the municipal	174
corporation to the district;	175

(2) Adoption by the board of township trustees of a	176
resolution recommending the extension of the tax to the additional	177
territory;	178

(3) Approval of the tax by the electors of the territory	179
proposed for addition to the district.	180

Each resolution of the board adopted under division (C)(2) of	181
this section shall state the name of the fire district, a	182
description of the territory to be added, and the rate and	183
termination date of the tax, which shall be the rate and	184
termination date of the tax currently in effect in the fire	185
district.	186

The board of trustees shall certify each resolution adopted	187
under division (C)(2) of this section to the board of elections in	188
accordance with section 5705.19 of the Revised Code. The election	189
required under division (C)(3) of this section shall be held,	190
canvassed, and certified in the manner provided for the submission	191
of tax levies under section 5705.25 of the Revised Code, except	192
that the question appearing on the ballot shall read:	193

"Shall the territory within ........................	194
(description of the proposed territory to be added) be added to	195
........................ (name) fire district, and a property tax	196
at a rate of taxation not exceeding ...... (here insert tax rate)	197
be in effect for .......... (here insert the number of years the	198
tax is to be in effect or "a continuing period of time," as	199
applicable)?"	200

If the question is approved by at least a majority of the	201
electors voting on it, the joinder shall be effective as of the	202
first day of July of the year following approval, and on that	203
date, the township fire district tax shall be extended to the	204
taxable property within the territory that has been added. If the	205
territory that has been added is a municipal corporation and if it	206
had adopted a tax levy for fire purposes, the levy is terminated	207
on the effective date of the joinder.	208

Any municipal corporation may withdraw from a township fire	209
district created under division (C) of this section by the	210
adoption by the municipal legislative authority of a resolution or	211
ordinance ordering withdrawal. On the first day of July of the	212
year following the adoption of the resolution or ordinance of	213
withdrawal, the municipal corporation withdrawing ceases to be a	214
part of the district, and the power of the fire district to levy a	215
tax upon taxable property in the withdrawing municipal corporation	216
terminates, except that the fire district shall continue to levy	217
and collect taxes for the payment of indebtedness within the	218
territory of the fire district as it was composed at the time the	219
indebtedness was incurred.	220

Upon the withdrawal of any municipal corporation from a	221
township fire district created under division (C) of this section,	222
the county auditor shall ascertain, apportion, and order a	223
division of the funds on hand, moneys and taxes in the process of	224
collection except for taxes levied for the payment of	225
indebtedness, credits, and real and personal property, either in	226
money or in kind, on the basis of the valuation of the respective	227
tax duplicates of the withdrawing municipal corporation and the	228
remaining territory of the fire district.	229

A board of township trustees may remove unincorporated	230
territory of the township from the fire district upon the adoption	231
of a resolution authorizing the removal. On the first day of July	232
of the year following the adoption of the resolution, the	233
unincorporated township territory described in the resolution	234
ceases to be a part of the district, and the power of the fire	235
district to levy a tax upon taxable property in that territory	236
terminates, except that the fire district shall continue to levy	237
and collect taxes for the payment of indebtedness within the	238
territory of the fire district as it was composed at the time the	239
indebtedness was incurred.	240

(D) The board of township trustees of any township, the board	241
of fire district trustees of a fire district created under section	242
505.371 of the Revised Code, or the legislative authority of any	243
municipal corporation may purchase, lease, or lease with an option	244
to purchase the necessary fire-fighting equipment, buildings, and	245
sites for the township, fire district, or municipal corporation	246
and issue securities for that purpose with maximum maturities as	247
provided in section 133.20 of the Revised Code. The board of	248
township trustees, board of fire district trustees, or legislative	249
authority may also construct any buildings necessary to house	250
fire-fighting equipment and issue securities for that purpose with	251
maximum maturities as provided in section 133.20 of the Revised	252
Code. The	253

The board of township trustees, board of fire district	254
trustees, or legislative authority may issue the securities of the	255
township, fire district, or municipal corporation, signed by the	256
board or designated officer of the municipal corporation and	257
attested by the signature of the township, fire district, or	258
municipal clerk, covering any deferred payments and payable at the	259
times provided, which securities shall bear interest not to exceed	260
the rate determined as provided in section 9.95 of the Revised	261
Code, and shall not be subject to Chapter 133. of the Revised	262
Code. The legislation authorizing the issuance of the securities	263
shall provide for levying and collecting annually by taxation,	264
amounts sufficient to pay the interest on and principal of the	265
securities. The securities shall be offered for sale on the open	266
market or given to the vendor or contractor if no sale is made.	267

Section 505.40 of the Revised Code does not apply to any	268
securities issued, or any lease with an option to purchase entered	269
into, in accordance with this division.	270

(E) A board of township trustees of any township or a board	271
of fire district trustees of a fire district created under section	272
505.371 of the Revised Code may purchase a policy or policies of	273
liability insurance for the officers, employees, and appointees of	274
the fire department, fire district, or joint fire district	275
governed by the board that includes personal injury liability	276
coverage as to the civil liability of those officers, employees,	277
and appointees for false arrest, detention, or imprisonment,	278
malicious prosecution, libel, slander, defamation or other	279
violation of the right of privacy, wrongful entry or eviction, or	280
other invasion of the right of private occupancy, arising out of	281
the performance of their duties.	282

When a board of township trustees cannot, by deed of gift or	283
by purchase and upon terms it considers reasonable, procure land	284
for a township fire station that is needed in order to respond in	285
reasonable time to a fire or medical emergency, the board may	286
appropriate land for that purpose under sections 163.01 to 163.22	287
of the Revised Code. If it is necessary to acquire additional	288
adjacent land for enlarging or improving the fire station, the	289
board may purchase, appropriate, or accept a deed of gift for the	290
land for these purposes.	291

(F) As used in this division, "emergency medical service	292
organization" has the same meaning as in section 4766.01 of the	293
Revised Code.	294

A board of township trustees, by adoption of an appropriate	295
resolution, may choose to have the Ohio ambulance licensing board	296
license any emergency medical service organization it operates. If	297
the board adopts such a resolution, Chapter 4766. of the Revised	298
Code, except for sections 4766.06 and 4766.99 of the Revised Code,	299
applies to the organization. All rules adopted under the	300
applicable sections of that chapter also apply to the	301
organization. A board of township trustees, by adoption of an	302
appropriate resolution, may remove its emergency medical service	303
organization from the jurisdiction of the Ohio ambulance licensing	304
board.	305

Sec. 505.50.  The board of township trustees may purchase,	306
lease, lease with an option to purchase, or otherwise acquire any	307
police apparatus, equipment, including a public communications	308
system, or materials that the township police district requires	309
and may build, purchase, lease, or lease with an option to	310
purchase any building or buildings and site of the building or	311
buildings that are necessary for the operations of the district.	312

The boards of trustees of any two or more contiguous	313
townships, may, by joint agreement, unite in the joint purchase,	314
lease, lease with an option to purchase, maintenance, use, and	315
operation of police equipment, for any other police purpose	316
designated in sections 505.48 to 505.55 of the Revised Code, and	317
to prorate the expense of suchthat joint action on such terms as	318
are mutually agreed upon by the trustees in each affected	319
township.	320

The board of trustees of any township may enter into a	321
contract with one or more townships, a municipal corporation, a	322
park district created pursuant to section 511.18 or 1545.01 of the	323
Revised Code, or the county sheriff upon any terms that are	324
mutually agreed upon for the provision of police protection	325
services or additional police protection services either on a	326
regular basis or for additional protection in times of emergency.	327
The contract shall be agreed to in each instance by the respective	328
board or boards of township trustees, the board of county	329
commissioners, the board of park commissioners, or the legislative	330
authority of the municipal corporation involved. SuchThe contract	331
may provide for a fixed annual charge to be paid at the time	332
agreed upon in the contract.	333

Chapter 2744. of the Revised Code, insofar as it is	334
applicable to the operation of police departments, applies to the	335
contracting political subdivisions and police department members	336
when suchthe members are serving outside their own political	337
subdivision pursuant to such a contract. Police department members	338
acting outside the political subdivision in which they are	339
employed may participate in any pension or indemnity fund	340
established by their employer and are entitled to all the rights	341
and benefits of Chapter 4123. of the Revised Code, to the same	342
extent as while performing services within the political	343
subdivision.	344

Sec. 4931.03.  (A) A telegraph or telephone company may do	345
either of the following in the unincorporated area of the	346
township:	347

(1) Construct telegraph or telephone lines upon and along any	348
of the public roads and highways and across any waters within that	349
area by the erection of the necessary fixtures, including posts,	350
piers, or abutments for sustaining the cords or wires of those	351
lines. Those lines shall be constructed so as not to incommode the	352
public in the use of the roads or highways, or endanger or	353
injuriously interrupt the navigation of the waters.	354

(2) Construct telegraph or telephone lines and the fixtures	355
necessary for containing and protecting those lines beneath the	356
surface of any of the public roads and highways and beneath any	357
waters within that area. Those lines shall be constructed so as	358
not to incommode the public in the use of the roads or highways,	359
or endanger or injuriously interrupt the navigation of the waters.	360

(B)(1) This section does not authorize the construction of a	361
bridge across any waters within the state.	362

(2) Construction under this section is subject to section	363
5571.16 of the Revised Code, as applicable, and any other	364
applicable law, including, but not limited to, any law requiring	365
approval of the legislative authority, the county engineer, or the	366
director of transportation.	367

Sec. 5549.021. (A) A board of township trustees may purchase	368
machinery, tools, trucks, and other equipment for use in	369
constructing, maintaining, and repairing roads and, subject to	370
Chapter 133. of the Revised Code, may issue for that purpose	371
general obligation bonds of the township for which the full faith	372
and credit of the township shall be pledged.	373

(B) A board of township trustees may enter into a lease for	374
machinery, tools, trucks, and other equipment for use in	375
constructing, maintaining, and repairing roads, including a lease	376
with an option to purchase. Any lease with an option to purchase	377
shall require the board to pay a cash down payment of at least	378
three-twentieths of the total cost. If the board sells used	379
equipment as part of a lease with option to purchase, the cash	380
down payment may be reduced by the amount of the selling price of	381
the used equipment. A lease with an option to purchase may be	382
entered into only with the lowest responsive and responsible	383
bidder of the equipment after advertising for bids in the manner	384
provided in section 5575.01 of the Revised Code.	385

Section 2. That existing sections 133.09, 505.37, 505.50, and	386
5549.021 of the Revised Code are hereby repealed.	387