S. B. No. 125 As Passed by the Senate

Senators Schuring, Amstutz, Carey, Niehaus, Dann, Hagan

A BILL

To amend section 2151.655 and to enact section 1
133.152 of the Revised Code to authorize joint 2
county juvenile detention facility districts to 3
enter into agreements with the several boards of 4
county commissioners providing for the financing 5
of juvenile detention facility improvements. 6

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

       Section 1. That section 2151.655 be amended and section 7
133.152 of the Revised Code be enacted to read as follows: 8

       Sec. 133.152. (A) The taxing authority of a detention 9
facility district, of a district organized under section 2151.65 10
of the Revised Code, or of a combined district organized under 11
sections 2152.41 and 2151.65 of the Revised Code that has entered 12
into an agreement under division (C) of section 2151.655 of the 13
Revised Code may issue self-supporting securities to pay the cost 14
of permanent improvements of the district. Costs of permanent 15
improvements that may be financed with, and paid from the proceeds 16
of, self-supporting securities issued under this section include, 17
without limitation as to other costs properly allocable to the 18
permanent improvements, the costs of: acquiring, constructing, 19
reconstructing, rehabilitating, installing, remodeling, 20
renovating, enlarging, equipping, furnishing, or otherwise 21
improving permanent improvements; site clearance, improvement, and 22
preparation; acquisition of real or personal property; indemnity 23
and surety bonds and premiums on insurance; all related direct 24
administrative expenses and allocable portions of direct costs of 25
the taxing authority; engineering, architectural, legal, and other 26
consulting and professional services; designs, plans, 27
specifications, feasibility or rate studies, appraisals, surveys, 28
and estimates of cost; interest or interest equivalent on the 29
securities, whether capitalized or not; financing costs; title 30
work and title commitment, insurance, and guaranties; amounts 31
necessary to establish any debt service reserve or other reserves 32
as required by the proceedings for the securities; audits; the 33
reimbursement of moneys advanced or applied by or borrowed from 34
any person, whether to or by the taxing authority or others, from 35
whatever source provided, for the payment of any item or items of 36
cost of the permanent improvements; and all other expenses 37
necessary or incidental to planning or determining feasibility or 38
practicability with respect to permanent improvements or necessary 39
or incidental to the acquisition, construction, reconstruction, 40
rehabilitation, installation, remodeling, renovation, enlargement, 41
equipping, furnishing, or other improvement of the permanent 42
improvements, the financing of the permanent improvements, and the 43
placing of the permanent improvements in condition for use and 44
operation, and all like or related costs, including any one, part, 45
or combination of, or the taxing authority's share of, those costs 46
and expenses. 47

       The total of the principal of and interest on all securities 48
issued by the taxing authority of a district under this section 49
and outstanding at any time shall not exceed such an amount that 50
the debt charges on the outstanding securities due in any fiscal 51
year exceed three per cent of the operating expenses of the 52
district for that year. 53

       (B) Self-supporting securities issued under this section are 54
not general obligations of the district or of the counties 55
composing the district. Self-supporting securities issued under 56
this section shall be secured by a pledge of and a lien on the 57
payments due from counties under the agreement entered into under 58
division (C) of section 2151.655 of the Revised Code or the 59
revenue, if any, of the district derived from ownership or 60
operation of the district's permanent improvements, including 61
rates, charges, or rents. If any such rates, charges, or rents are 62
levied, the securities shall further be secured by covenants of 63
the taxing authority to maintain sufficient rates, charges, or 64
rents to pay debt charges on the securities to the extent those 65
debt charges are not payable from other funds of the district or 66
to the extent other funds of the district are not pledged to the 67
payment of the debt charges. If any securities are issued to fund 68
or refund any self-supporting securities issued under this 69
section, the self-supporting securities shall be secured by a 70
pledge of and lien on the proceeds of such funding or refunding 71
securities. 72

       (C) A joint board of county commissioners issuing 73
self-supporting securities under this section shall do so by 74
resolution, and such resolution shall set forth the terms of the 75
securities, the date of the securities, the amount to be issued, 76
and the maximum rate of interest. The securities shall mature at 77
such times not exceeding the maximum limits specified for general 78
obligations in section 133.20 of the Revised Code, and shall be 79
executed in such manner as the resolution provides. The securities 80
shall be negotiable, bear interest at such rate or rates, be in 81
such denominations, be in such form, carry such registration 82
privileges, be payable in such medium of payment at such place or 83
places, and be subject to such terms of redemption as the taxing 84
authority may authorize. The securities may be sold at public or 85
private sale. 86

       (D) Self-supporting securities issued under this section, 87
their transfer, and any income therefrom, including any profit 88
made on the sale thereof, shall at all times be free from taxation 89
within the state. 90

       Sec. 2151.655. (A) The taxing authority of a county may 91
issue general obligation securities of the county under Chapter 92
133. of the Revised Code to pay such county's share, either 93
separately or as a part of a district, of the cost of acquiring 94
schools, detention facilities, forestry camps, or other 95
facilities, or any combination thereof, under section 2152.41 or 96
2151.65 of the Revised Code, or of acquiring sites for and 97
constructing, enlarging, or otherwise improving such schools, 98
detention facilities, forestry camps, other facilities, or 99
combinations thereof. 100

       (B) The joint board of county commissioners, as the taxing 101
authority of a detention facility district, or a district 102
organized under section 2151.65 of the Revised Code, or of a 103
combined district organized under sections 2152.41 and 2151.65 of 104
the Revised Code, may submit to the electors of the district the 105
question of issuing general obligation bonds of the district to 106
pay the cost of acquiring, constructing, enlarging, or otherwise 107
improving sites, buildings, and facilities for any purposes for 108
which the district was organized. The election on such question 109
shall be submitted and held under section 133.18 of the Revised 110
Code. 111

       (C)(1) To pay the cost of permanent improvements of the 112
district, the board of trustees of a detention facility district, 113
of a district organized under section 2151.65 of the Revised Code, 114
or of a combined district organized under sections 2152.41 and 115
2151.65 of the Revised Code may enter into an agreement with the 116
several boards of county commissioners constituting the joint 117
board of county commissioners. The agreement shall provide for 118
each such board of county commissioners to pay the district a 119
share of such costs for a stated term from the proceeds of a tax 120
levied by the board under division (F) or (R) of section 5705.19 121
of the Revised Code or from funds of the county otherwise lawfully 122
available to pay the county's share of the costs of the district's 123
permanent improvements. County shares shall be allocated on the 124
basis prescribed in the agreement, which may include an allocation 125
in proportion to the taxable value of each county or in proportion 126
to the number of children from each county who are maintained in 127
district facilities. 128

       More than one agreement may be entered into under this 129
division with respect to a district, and more than one agreement 130
may exist at the same time with respect to a district. An 131
agreement entered into under this division may be amended if the 132
amendment is mutually agreed to by the board of trustees of the 133
district and the several boards of county commissioners 134
constituting the joint board of county commissioners. 135

       If a board of county commissioners withdraws from the 136
district before the end of the term of the agreement, the board 137
shall be required to make payments as required in the agreement 138
until all debt charges or loan repayments for which such payments 139
are pledged are paid in full, unless the board of trustees agrees 140
otherwise. 141

       (2) In any such district where the board of trustees has 142
entered into an agreement under division (C)(1) of this section, 143
the joint board of county commissioners, as the taxing authority 144
of a district, may issue self-supporting securities of the 145
district under section 133.152 of the Revised Code for the purpose 146
of paying the cost of permanent improvements of the district. If 147
such securities are issued, the term of an agreement shall be for 148
no fewer years than the maximum maturity of securities secured by 149
a pledge of payments made under the agreement. 150

       (3) In any such district where the board of trustees has 151
entered into an agreement under division (C)(1) of this section, 152
the joint board of county commissioners, as the taxing authority 153
of a district, may obtain loans from a financial institution to be 154
repaid from amounts to be paid to the district under the agreement 155
by the boards of county commissioners constituting the joint board 156
of county commissioners. 157

       Section 2. That existing section 2151.655 of the Revised Code 158
is hereby repealed. 159

Section 1. That section 2151.655 be amended and section	7
133.152 of the Revised Code be enacted to read as follows:	8

Sec. 133.152. (A) The taxing authority of a detention	9
facility district, of a district organized under section 2151.65	10
of the Revised Code, or of a combined district organized under	11
sections 2152.41 and 2151.65 of the Revised Code that has entered	12
into an agreement under division (C) of section 2151.655 of the	13
Revised Code may issue self-supporting securities to pay the cost	14
of permanent improvements of the district. Costs of permanent	15
improvements that may be financed with, and paid from the proceeds	16
of, self-supporting securities issued under this section include,	17
without limitation as to other costs properly allocable to the	18
permanent improvements, the costs of: acquiring, constructing,	19
reconstructing, rehabilitating, installing, remodeling,	20
renovating, enlarging, equipping, furnishing, or otherwise	21
improving permanent improvements; site clearance, improvement, and	22
preparation; acquisition of real or personal property; indemnity	23
and surety bonds and premiums on insurance; all related direct	24
administrative expenses and allocable portions of direct costs of	25
the taxing authority; engineering, architectural, legal, and other	26
consulting and professional services; designs, plans,	27
specifications, feasibility or rate studies, appraisals, surveys,	28
and estimates of cost; interest or interest equivalent on the	29
securities, whether capitalized or not; financing costs; title	30
work and title commitment, insurance, and guaranties; amounts	31
necessary to establish any debt service reserve or other reserves	32
as required by the proceedings for the securities; audits; the	33
reimbursement of moneys advanced or applied by or borrowed from	34
any person, whether to or by the taxing authority or others, from	35
whatever source provided, for the payment of any item or items of	36
cost of the permanent improvements; and all other expenses	37
necessary or incidental to planning or determining feasibility or	38
practicability with respect to permanent improvements or necessary	39
or incidental to the acquisition, construction, reconstruction,	40
rehabilitation, installation, remodeling, renovation, enlargement,	41
equipping, furnishing, or other improvement of the permanent	42
improvements, the financing of the permanent improvements, and the	43
placing of the permanent improvements in condition for use and	44
operation, and all like or related costs, including any one, part,	45
or combination of, or the taxing authority's share of, those costs	46
and expenses.	47

The total of the principal of and interest on all securities	48
issued by the taxing authority of a district under this section	49
and outstanding at any time shall not exceed such an amount that	50
the debt charges on the outstanding securities due in any fiscal	51
year exceed three per cent of the operating expenses of the	52
district for that year.	53

(B) Self-supporting securities issued under this section are	54
not general obligations of the district or of the counties	55
composing the district. Self-supporting securities issued under	56
this section shall be secured by a pledge of and a lien on the	57
payments due from counties under the agreement entered into under	58
division (C) of section 2151.655 of the Revised Code or the	59
revenue, if any, of the district derived from ownership or	60
operation of the district's permanent improvements, including	61
rates, charges, or rents. If any such rates, charges, or rents are	62
levied, the securities shall further be secured by covenants of	63
the taxing authority to maintain sufficient rates, charges, or	64
rents to pay debt charges on the securities to the extent those	65
debt charges are not payable from other funds of the district or	66
to the extent other funds of the district are not pledged to the	67
payment of the debt charges. If any securities are issued to fund	68
or refund any self-supporting securities issued under this	69
section, the self-supporting securities shall be secured by a	70
pledge of and lien on the proceeds of such funding or refunding	71
securities.	72

(C) A joint board of county commissioners issuing	73
self-supporting securities under this section shall do so by	74
resolution, and such resolution shall set forth the terms of the	75
securities, the date of the securities, the amount to be issued,	76
and the maximum rate of interest. The securities shall mature at	77
such times not exceeding the maximum limits specified for general	78
obligations in section 133.20 of the Revised Code, and shall be	79
executed in such manner as the resolution provides. The securities	80
shall be negotiable, bear interest at such rate or rates, be in	81
such denominations, be in such form, carry such registration	82
privileges, be payable in such medium of payment at such place or	83
places, and be subject to such terms of redemption as the taxing	84
authority may authorize. The securities may be sold at public or	85
private sale.	86

(D) Self-supporting securities issued under this section,	87
their transfer, and any income therefrom, including any profit	88
made on the sale thereof, shall at all times be free from taxation	89
within the state.	90

Sec. 2151.655. (A) The taxing authority of a county may	91
issue general obligation securities of the county under Chapter	92
133. of the Revised Code to pay such county's share, either	93
separately or as a part of a district, of the cost of acquiring	94
schools, detention facilities, forestry camps, or other	95
facilities, or any combination thereof, under section 2152.41 or	96
2151.65 of the Revised Code, or of acquiring sites for and	97
constructing, enlarging, or otherwise improving such schools,	98
detention facilities, forestry camps, other facilities, or	99
combinations thereof.	100

(B) The joint board of county commissioners, as the taxing	101
authority of a detention facility district, or a district	102
organized under section 2151.65 of the Revised Code, or of a	103
combined district organized under sections 2152.41 and 2151.65 of	104
the Revised Code, may submit to the electors of the district the	105
question of issuing general obligation bonds of the district to	106
pay the cost of acquiring, constructing, enlarging, or otherwise	107
improving sites, buildings, and facilities for any purposes for	108
which the district was organized. The election on such question	109
shall be submitted and held under section 133.18 of the Revised	110
Code.	111

(C)(1) To pay the cost of permanent improvements of the	112
district, the board of trustees of a detention facility district,	113
of a district organized under section 2151.65 of the Revised Code,	114
or of a combined district organized under sections 2152.41 and	115
2151.65 of the Revised Code may enter into an agreement with the	116
several boards of county commissioners constituting the joint	117
board of county commissioners. The agreement shall provide for	118
each such board of county commissioners to pay the district a	119
share of such costs for a stated term from the proceeds of a tax	120
levied by the board under division (F) or (R) of section 5705.19	121
of the Revised Code or from funds of the county otherwise lawfully	122
available to pay the county's share of the costs of the district's	123
permanent improvements. County shares shall be allocated on the	124
basis prescribed in the agreement, which may include an allocation	125
in proportion to the taxable value of each county or in proportion	126
to the number of children from each county who are maintained in	127
district facilities.	128

More than one agreement may be entered into under this	129
division with respect to a district, and more than one agreement	130
may exist at the same time with respect to a district. An	131
agreement entered into under this division may be amended if the	132
amendment is mutually agreed to by the board of trustees of the	133
district and the several boards of county commissioners	134
constituting the joint board of county commissioners.	135

If a board of county commissioners withdraws from the	136
district before the end of the term of the agreement, the board	137
shall be required to make payments as required in the agreement	138
until all debt charges or loan repayments for which such payments	139
are pledged are paid in full, unless the board of trustees agrees	140
otherwise.	141

(2) In any such district where the board of trustees has	142
entered into an agreement under division (C)(1) of this section,	143
the joint board of county commissioners, as the taxing authority	144
of a district, may issue self-supporting securities of the	145
district under section 133.152 of the Revised Code for the purpose	146
of paying the cost of permanent improvements of the district. If	147
such securities are issued, the term of an agreement shall be for	148
no fewer years than the maximum maturity of securities secured by	149
a pledge of payments made under the agreement.	150

(3) In any such district where the board of trustees has	151
entered into an agreement under division (C)(1) of this section,	152
the joint board of county commissioners, as the taxing authority	153
of a district, may obtain loans from a financial institution to be	154
repaid from amounts to be paid to the district under the agreement	155
by the boards of county commissioners constituting the joint board	156
of county commissioners.	157

Section 2. That existing section 2151.655 of the Revised Code	158
is hereby repealed.	159