Am. H. B. No. 459 As Reported by the House Local Government and Public Administration Committee

As Reported by the House Local Government and Public Administration Committee

128th General Assembly

Regular Session

2009-2010

Am. H. B. No. 459

Representative Dyer

Cosponsors: Representatives Yuko, Harwood, Domenick, Mallory, Letson, Derickson, Williams, B., Murray, Boose, Okey, Harris

A BILL

To amend sections 135.21 and 5705.10 and to enact

section 503.211 of the Revised Code to authorize a

board of township trustees to require that

interest earned on a special fund be credited to

that special fund, rather than to the general

fund.

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

Section 1. That sections 135.21 and 5705.10 be amended and	7
section 503.211 of the Revised Code be enacted to read as follows:	8

Sec. 135.21. All investment earnings on money included	9
within a public deposit of a subdivision and belonging to	10
undivided tax funds shall, except as otherwise expressly provided	11
by law, be apportioned by the auditor pro rata among the separate	12
funds or taxing districts in the proportions in which they are	13
entitled to receive distribution of such undivided tax funds, due	14
allowance being made for sums transferred in advance of	15
settlements. All investment earnings from other moneys deposited	16
by a treasurer, which by reason of being custodial funds, or funds	17
belonging in the treasury of a taxing, assessment, or other	18
district of which the treasurer is acting as ex officio treasurer,	19
or for any other reason, do not belong in the treasury of the	20
state or subdivision shall, except as provided in section 135.351	21
of the Revised Code, be apportioned among and credited to the	22
funds to which the principal sums of such deposits or investments	23
belong. All other investment earnings, except as provided in	24
section 135.351 of the Revised Code ~~and~~or by resolution adopted	25
pursuant to section 503.211, 3315.01, or 3375.391 of the Revised	26
Code, shall be credited to the general fund of the county,	27
municipal corporation, township, taxing district, assessment	28
district, or other local authority to which the principal sum	29
thereof belongs.	30

All investment earnings on money included within the state	31
treasury shall be credited as provided in section 113.09 of the	32
Revised Code.	33

The director of budget and management shall inform the	34
treasurer of state in writing of the amount apportioned by the	35
director to each fund or account in the state treasury. The	36
auditor of a subdivision shall inform the treasurer of the	37
subdivision in writing of the amount apportioned by the auditor to	38
each fund, district, or account.	39

Sec. 503.211. A board of township trustees of any township,	40
by resolution adopted by a majority of its members, may require	41
the township fiscal officer to credit the interest earned on the	42
investment of the principal of any special fund specified in the	43
resolution to that special fund.	44

This section does not apply to the interest earned on the	45
investment of any bond retirement fund or any sinking fund.	46

Sec. 5705.10. (A) All revenue derived from the general levy	47
for current expense within the ten-mill limitation, from any	48
general levy for current expense authorized by vote in excess of	49
the ten-mill limitation, and from sources other than the general	50
property tax, unless its use for a particular purpose is	51
prescribed by law, shall be paid into the general fund.	52

(B) All revenue derived from general or special levies for	53
debt charges, whether within or in excess of the ten-mill	54
limitation, which is levied for the debt charges on serial bonds,	55
notes, or certificates of indebtedness having a life less than	56
five years, shall be paid into the bond retirement fund; and all	57
such revenue which is levied for the debt charges on all other	58
bonds, notes, or certificates of indebtedness shall be paid into	59
the sinking fund.	60

(C) All revenue derived from a special levy shall be credited	61
to a special fund for the purpose for which the levy was made.	62

(D) Except as otherwise provided by resolution adopted	63
pursuant to section 3315.01 of the Revised Code, all revenue	64
derived from a source other than the general property tax and	65
which the law prescribes shall be used for a particular purpose,	66
shall be paid into a special fund for such purpose. Except as	67
otherwise provided by resolution adopted pursuant to section	68
503.211 or 3315.01 of the Revised Code or as otherwise provided by	69
section 3315.40 of the Revised Code, all revenue derived from a	70
source other than the general property tax, for which the law does	71
not prescribe use for a particular purpose, including interest	72
earned on the principal of any special fund, regardless of the	73
source or purpose of the principal, shall be paid into the general	74
fund.	75

(E) All proceeds from the sale of public obligations or	76
fractionalized interests in public obligations as defined in	77
section 133.01 of the Revised Code, except premium and accrued	78
interest, shall be paid into a special fund for the purpose of	79
such issue, and any interest and other income earned on money in	80
such special fund may be used for the purposes for which the	81
indebtedness was authorized or may be credited to the general fund	82
or other fund or account as the taxing authority authorizes and	83
used for the purposes of that fund or account. The premium and	84
accrued interest received from such sale shall be paid into the	85
sinking fund or the bond retirement fund of the subdivision.	86

(F) Except as provided in division (G) of this section, if a	87
permanent improvement of the subdivision is sold, the amount	88
received from the sale shall be paid into the sinking fund, the	89
bond retirement fund, or a special fund for the construction or	90
acquisition of permanent improvements; provided that the proceeds	91
from the sale of a public utility shall be paid into the sinking	92
fund or bond retirement fund to the extent necessary to provide	93
for the retirement of the outstanding indebtedness incurred in the	94
construction or acquisition of such utility. Proceeds from the	95
sale of property other than a permanent improvement shall be paid	96
into the fund from which such property was acquired or is	97
maintained or, if there is no such fund, into the general fund.	98

(G) A township that has a population greater than fifteen	99
thousand according to the most recent federal decennial census and	100
that has declared one or more improvements in the township to be a	101
public purpose under section 5709.73 of the Revised Code may pay	102
proceeds from the sale of a permanent improvement of the township	103
into its general fund if both of the following conditions are	104
satisfied:	105

(1) The township fiscal officer determines that all	106
foreseeable public infrastructure improvements, as defined in	107
section 5709.40 of the Revised Code, to be made in the township in	108
the ten years immediately following the date the permanent	109
improvement is sold will have been financed through resolutions	110
adopted under section 5709.73 of the Revised Code on or before the	111
date of the sale. The fiscal officer shall provide written	112
certification of this determination for the township's records.	113

(2) The permanent improvement being sold was financed	114
entirely from moneys in the township's general fund.	115

(H) Money paid into any fund shall be used only for the	116
purposes for which such fund is established.	117

Section 2. That existing sections 135.21 and 5705.10 of the	118
Revised Code are hereby repealed.	119