S. B. No. 1 As Introduced

As Introduced

128th General Assembly

Regular Session

2009-2010

S. B. No. 1

Senator Hughes

A BILL

To amend sections 133.52, 151.01, 151.09, and 151.40

of the Revised Code and to amend Sections 217.10,

217.11, 239.10, 241.10, 243.10, and 243.11 of Am.

Sub. H.B. 562 of the 127th General Assembly to

implement the additional debt authority for

conservation and revitalization programs provided

by Section 2q of Article VIII of the Ohio

Constitution, to authorize the issuance of that

debt, to make new appropriations for the purpose

of continuing programs established by Am. Sub.

H.B. 554 of the 127th General Assembly, the

Bipartisan Job Stimulus Act, and to declare an

emergency.

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

Section 1. That sections 133.52, 151.01, 151.09, and 151.40	14
of the Revised Code be amended to read as follows:	15

Sec. 133.52. A county, municipal corporation, or township may	16
issue or incur public obligations, including general obligations,	17
to provide, or assist in providing, grants, loans, loan	18
guarantees, or contributions for conservation and revitalization	19
purposes pursuant to ~~Section~~Sections 2o and 2q of Article VIII,	20
Ohio Constitution.	21

Sec. 151.01. (A) As used in sections 151.01 to 151.11 and	22
151.40 of the Revised Code and in the applicable bond proceedings	23
unless otherwise provided:	24

(1) "Bond proceedings" means the resolutions, orders,	25
agreements, and credit enhancement facilities, and amendments and	26
supplements to them, or any one or more or combination of them,	27
authorizing, awarding, or providing for the terms and conditions	28
applicable to or providing for the security or liquidity of, the	29
particular obligations, and the provisions contained in those	30
obligations.	31

(2) "Bond service fund" means the respective bond service	32
fund created by section 151.03, 151.04, 151.05, 151.06, 151.07,	33
151.08, 151.09, 151.10, 151.11, or 151.40 of the Revised Code, and	34
any accounts in that fund, including all moneys and investments,	35
and earnings from investments, credited and to be credited to that	36
fund and accounts as and to the extent provided in the applicable	37
bond proceedings.	38

(3) "Capital facilities" means capital facilities or projects	39
as referred to in section 151.03, 151.04, 151.05, 151.06, 151.07,	40
151.08, 151.09, 151.10, 151.11, or 151.40 of the Revised Code.	41

(4) "Costs of capital facilities" means the costs of	42
acquiring, constructing, reconstructing, rehabilitating,	43
remodeling, renovating, enlarging, improving, equipping, or	44
furnishing capital facilities, and of the financing of those	45
costs. "Costs of capital facilities" includes, without limitation,	46
and in addition to costs referred to in section 151.03, 151.04,	47
151.05, 151.06, 151.07, 151.08, 151.09, 151.10, 151.11, or 151.40	48
of the Revised Code, the cost of clearance and preparation of the	49
site and of any land to be used in connection with capital	50
facilities, the cost of any indemnity and surety bonds and	51
premiums on insurance, all related direct administrative expenses	52
and allocable portions of direct costs of the issuing authority,	53
costs of engineering and architectural services, designs, plans,	54
specifications, surveys, and estimates of cost, financing costs,	55
interest on obligations from their date to the time when interest	56
is to be paid from sources other than proceeds of obligations,	57
amounts necessary to establish any reserves as required by the	58
bond proceedings, the reimbursement of all moneys advanced or	59
applied by or borrowed from any person or governmental agency or	60
entity for the payment of any item of costs of capital facilities,	61
and all other expenses necessary or incident to planning or	62
determining feasibility or practicability with respect to capital	63
facilities, and such other expenses as may be necessary or	64
incident to the acquisition, construction, reconstruction,	65
rehabilitation, remodeling, renovation, enlargement, improvement,	66
equipment, and furnishing of capital facilities, the financing of	67
those costs, and the placing of the capital facilities in use and	68
operation, including any one, part of, or combination of those	69
classes of costs and expenses. For purposes of sections 122.085 to	70
122.0820 of the Revised Code, "costs of capital facilities"	71
includes "allowable costs" as defined in section 122.085 of the	72
Revised Code.	73

(5) "Credit enhancement facilities," "financing costs," and	74
"interest" or "interest equivalent" have the same meanings as in	75
section 133.01 of the Revised Code.	76

(6) "Debt service" means principal, including any mandatory	77
sinking fund or redemption requirements for retirement of	78
obligations, interest and other accreted amounts, interest	79
equivalent, and any redemption premium, payable on obligations. If	80
not prohibited by the applicable bond proceedings, debt service	81
may include costs relating to credit enhancement facilities that	82
are related to and represent, or are intended to provide a source	83
of payment of or limitation on, other debt service.	84

(7) "Issuing authority" means the Ohio public facilities	85
commission created in section 151.02 of the Revised Code for	86
obligations issued under section 151.03, 151.04, 151.05, 151.07,	87
151.08, 151.09, 151.10, or 151.11 of the Revised Code, or the	88
treasurer of state, or the officer who by law performs the	89
functions of that office, for obligations issued under section	90
151.06 or 151.40 of the Revised Code.	91

(8) "Net proceeds" means amounts received from the sale of	92
obligations, excluding amounts used to refund or retire	93
outstanding obligations, amounts required to be deposited into	94
special funds pursuant to the applicable bond proceedings, and	95
amounts to be used to pay financing costs.	96

(9) "Obligations" means bonds, notes, or other evidences of	97
obligation of the state, including any appertaining interest	98
coupons, issued under Section 2k, 2l, 2m, 2n, 2o, 2p, 2q, or 15 of	99
Article VIII, Ohio Constitution, and pursuant to sections 151.01	100
to 151.11 or 151.40 of the Revised Code or other general assembly	101
authorization.	102

(10) "Principal amount" means the aggregate of the amount as	103
stated or provided for in the applicable bond proceedings as the	104
amount on which interest or interest equivalent on particular	105
obligations is initially calculated. Principal amount does not	106
include any premium paid to the state by the initial purchaser of	107
the obligations. "Principal amount" of a capital appreciation	108
bond, as defined in division (C) of section 3334.01 of the Revised	109
Code, means its face amount, and "principal amount" of a zero	110
coupon bond, as defined in division (J) of section 3334.01 of the	111
Revised Code, means the discounted offering price at which the	112
bond is initially sold to the public, disregarding any purchase	113
price discount to the original purchaser, if provided for pursuant	114
to the bond proceedings.	115

(11) "Special funds" or "funds," unless the context indicates	116
otherwise, means the bond service fund, and any other funds,	117
including any reserve funds, created under the bond proceedings	118
and stated to be special funds in those proceedings, including	119
moneys and investments, and earnings from investments, credited	120
and to be credited to the particular fund. Special funds do not	121
include the school building program assistance fund created by	122
section 3318.25 of the Revised Code, the higher education	123
improvement fund created by division (F) of section 154.21 of the	124
Revised Code, the highway capital improvement bond fund created by	125
section 5528.53 of the Revised Code, the state parks and natural	126
resources fund created by section 1557.02 of the Revised Code, the	127
coal research and development fund created by section 1555.15 of	128
the Revised Code, the clean Ohio conservation fund created by	129
section 164.27 of the Revised Code, the clean Ohio revitalization	130
fund created by section 122.658 of the Revised Code, the job ready	131
site development fund created by section 122.0820 of the Revised	132
Code, the third frontier research and development fund created by	133
section 184.19 of the Revised Code, the third frontier research	134
and development taxable bond fund created by section 184.191 of	135
the Revised Code, or other funds created by the bond proceedings	136
that are not stated by those proceedings to be special funds.	137

(B) Subject to Section 2l, 2m, 2n, 2o, 2p, 2q, or 15, and	138
Section 17, of Article VIII, Ohio Constitution, the state, by the	139
issuing authority, is authorized to issue and sell, as provided in	140
sections 151.03 to 151.11 or 151.40 of the Revised Code, and in	141
respective aggregate principal amounts as from time to time	142
provided or authorized by the general assembly, general	143
obligations of this state for the purpose of paying costs of	144
capital facilities or projects identified by or pursuant to	145
general assembly action.	146

(C) Each issue of obligations shall be authorized by	147
resolution or order of the issuing authority. The bond proceedings	148
shall provide for or authorize the manner for determining the	149
principal amount or maximum principal amount of obligations of an	150
issue, the principal maturity or maturities, the interest rate or	151
rates, the date of and the dates of payment of interest on the	152
obligations, their denominations, and the place or places of	153
payment of debt service which may be within or outside the state.	154
Unless otherwise provided by law, the latest principal maturity	155
may not be later than the earlier of the thirty-first day of	156
December of the twenty-fifth calendar year after the year of	157
issuance of the particular obligations or of the twenty-fifth	158
calendar year after the year in which the original obligation to	159
pay was issued or entered into. Sections 9.96, 9.98, 9.981, 9.982,	160
and 9.983 of the Revised Code apply to obligations. The purpose of	161
the obligations may be stated in the bond proceedings in general	162
terms, such as, as applicable, "financing or assisting in the	163
financing of projects as provided in Section 2l of Article VIII,	164
Ohio Constitution," "financing or assisting in the financing of	165
highway capital improvement projects as provided in Section 2m of	166
Article VIII, Ohio Constitution," "paying costs of capital	167
facilities for a system of common schools throughout the state as	168
authorized by Section 2n of Article VIII, Ohio Constitution,"	169
"paying costs of capital facilities for state-supported and	170
state-assisted institutions of higher education as authorized by	171
Section 2n of Article VIII, Ohio Constitution," "paying costs of	172
coal research and development as authorized by Section 15 of	173
Article VIII, Ohio Constitution," "financing or assisting in the	174
financing of local subdivision capital improvement projects as	175
authorized by Section 2m of Article VIII, Ohio Constitution,"	176
"paying costs of conservation projects as authorized by ~~Section~~	177
Sections 2o and 2q of Article VIII, Ohio Constitution," "paying	178
costs of revitalization projects as authorized by ~~Section~~Sections	179
2o and 2q of Article VIII, Ohio Constitution," "paying costs of	180
preparing sites for industry, commerce, distribution, or research	181
and development as authorized by Section 2p of Article VIII, Ohio	182
Constitution," or "paying costs of research and development as	183
authorized by Section 2p of Article VIII, Ohio Constitution."	184

(D) The issuing authority may appoint or provide for the	185
appointment of paying agents, bond registrars, securities	186
depositories, clearing corporations, and transfer agents, and may	187
without need for any other approval retain or contract for the	188
services of underwriters, investment bankers, financial advisers,	189
accounting experts, marketing, remarketing, indexing, and	190
administrative agents, other consultants, and independent	191
contractors, including printing services, as are necessary in the	192
judgment of the issuing authority to carry out the issuing	193
authority's functions under this chapter. When the issuing	194
authority is the Ohio public facilities commission, the issuing	195
authority also may without need for any other approval retain or	196
contract for the services of attorneys and other professionals for	197
that purpose. Financing costs are payable, as may be provided in	198
the bond proceedings, from the proceeds of the obligations, from	199
special funds, or from other moneys available for the purpose.	200

(E) The bond proceedings may contain additional provisions	201
customary or appropriate to the financing or to the obligations or	202
to particular obligations including, but not limited to,	203
provisions for:	204

(1) The redemption of obligations prior to maturity at the	205
option of the state or of the holder or upon the occurrence of	206
certain conditions, and at particular price or prices and under	207
particular terms and conditions;	208

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

209

(3) The establishment, deposit, investment, and application	210
of special funds, and the safeguarding of moneys on hand or on	211
deposit, in lieu of the applicability of provisions of Chapter	212
131. or 135. of the Revised Code, but subject to any special	213
provisions of sections 151.01 to 151.11 or 151.40 of the Revised	214
Code with respect to the application of particular funds or	215
moneys. Any financial institution that acts as a depository of any	216
moneys in special funds or other funds under the bond proceedings	217
may furnish indemnifying bonds or pledge securities as required by	218
the issuing authority.	219

(4) Any or every provision of the bond proceedings being	220
binding upon the issuing authority and upon such governmental	221
agency or entity, officer, board, commission, authority, agency,	222
department, institution, district, or other person or body as may	223
from time to time be authorized to take actions as may be	224
necessary to perform all or any part of the duty required by the	225
provision;	226

(5) The maintenance of each pledge or instrument comprising	227
part of the bond proceedings until the state has fully paid or	228
provided for the payment of the debt service on the obligations or	229
met other stated conditions;	230

(6) In the event of default in any payments required to be	231
made by the bond proceedings, or by any other agreement of the	232
issuing authority made as part of a contract under which the	233
obligations were issued or secured, including a credit enhancement	234
facility, the enforcement of those payments by mandamus, a suit in	235
equity, an action at law, or any combination of those remedial	236
actions;	237

(7) The rights and remedies of the holders or owners of	238
obligations or of book-entry interests in them, and of third	239
parties under any credit enhancement facility, and provisions for	240
protecting and enforcing those rights and remedies, including	241
limitations on rights of individual holders or owners;	242

(8) The replacement of mutilated, destroyed, lost, or stolen	243
obligations;	244

(9) The funding, refunding, or advance refunding, or other	245
provision for payment, of obligations that will then no longer be	246
outstanding for purposes of this section or of the applicable bond	247
proceedings;	248

(10) Amendment of the bond proceedings;

249

(11) Any other or additional agreements with the owners of	250
obligations, and such other provisions as the issuing authority	251
determines, including limitations, conditions, or qualifications,	252
relating to any of the foregoing.	253

(F) The great seal of the state or a facsimile of it may be	254
affixed to or printed on the obligations. The obligations	255
requiring execution by or for the issuing authority shall be	256
signed as provided in the bond proceedings. Any obligations may be	257
signed by the individual who on the date of execution is the	258
authorized signer although on the date of these obligations that	259
individual is not an authorized signer. In case the individual	260
whose signature or facsimile signature appears on any obligation	261
ceases to be an authorized signer before delivery of the	262
obligation, that signature or facsimile is nevertheless valid and	263
sufficient for all purposes as if that individual had remained the	264
authorized signer until delivery.	265

(G) Obligations are investment securities under Chapter 1308.	266
of the Revised Code. Obligations may be issued in bearer or in	267
registered form, registrable as to principal alone or as to both	268
principal and interest, or both, or in certificated or	269
uncertificated form, as the issuing authority determines.	270
Provision may be made for the exchange, conversion, or transfer of	271
obligations and for reasonable charges for registration, exchange,	272
conversion, and transfer. Pending preparation of final	273
obligations, the issuing authority may provide for the issuance of	274
interim instruments to be exchanged for the final obligations.	275

(H) Obligations may be sold at public sale or at private	276
sale, in such manner, and at such price at, above or below par,	277
all as determined by and provided by the issuing authority in the	278
bond proceedings.	279

(I) Except to the extent that rights are restricted by the	280
bond proceedings, any owner of obligations or provider of a credit	281
enhancement facility may by any suitable form of legal proceedings	282
protect and enforce any rights relating to obligations or that	283
facility under the laws of this state or granted by the bond	284
proceedings. Those rights include the right to compel the	285
performance of all applicable duties of the issuing authority and	286
the state. Each duty of the issuing authority and that authority's	287
officers, staff, and employees, and of each state entity or	288
agency, or using district or using institution, and its officers,	289
members, staff, or employees, undertaken pursuant to the bond	290
proceedings, is hereby established as a duty of the entity or	291
individual having authority to perform that duty, specifically	292
enjoined by law and resulting from an office, trust, or station	293
within the meaning of section 2731.01 of the Revised Code. The	294
individuals who are from time to time the issuing authority,	295
members or officers of the issuing authority, or those members'	296
designees acting pursuant to section 151.02 of the Revised Code,	297
or the issuing authority's officers, staff, or employees, are not	298
liable in their personal capacities on any obligations or	299
otherwise under the bond proceedings.	300

(J)(1) Subject to Section 2k, 2l, 2m, 2n, 2o, 2p, 2q, or 15,	301
and Section 17, of Article VIII, Ohio Constitution and sections	302
151.01 to 151.11 or 151.40 of the Revised Code, the issuing	303
authority may, in addition to the authority referred to in	304
division (B) of this section, authorize and provide for the	305
issuance of:	306

(a) Obligations in the form of bond anticipation notes, and	307
may provide for the renewal of those notes from time to time by	308
the issuance of new notes. The holders of notes or appertaining	309
interest coupons have the right to have debt service on those	310
notes paid solely from the moneys and special funds that are or	311
may be pledged to that payment, including the proceeds of bonds or	312
renewal notes or both, as the issuing authority provides in the	313
bond proceedings authorizing the notes. Notes may be additionally	314
secured by covenants of the issuing authority to the effect that	315
the issuing authority and the state will do all things necessary	316
for the issuance of bonds or renewal notes in such principal	317
amount and upon such terms as may be necessary to provide moneys	318
to pay when due the debt service on the notes, and apply their	319
proceeds to the extent necessary, to make full and timely payment	320
of debt service on the notes as provided in the applicable bond	321
proceedings. In the bond proceedings authorizing the issuance of	322
bond anticipation notes the issuing authority shall set forth for	323
the bonds anticipated an estimated schedule of annual principal	324
payments the latest of which shall be no later than provided in	325
division (C) of this section. While the notes are outstanding	326
there shall be deposited, as shall be provided in the bond	327
proceedings for those notes, from the sources authorized for	328
payment of debt service on the bonds, amounts sufficient to pay	329
the principal of the bonds anticipated as set forth in that	330
estimated schedule during the time the notes are outstanding,	331
which amounts shall be used solely to pay the principal of those	332
notes or of the bonds anticipated.	333

(b) Obligations for the refunding, including funding and	334
retirement, and advance refunding with or without payment or	335
redemption prior to maturity, of any obligations previously	336
issued. Refunding obligations may be issued in amounts sufficient	337
to pay or to provide for repayment of the principal amount,	338
including principal amounts maturing prior to the redemption of	339
the remaining prior obligations, any redemption premium, and	340
interest accrued or to accrue to the maturity or redemption date	341
or dates, payable on the prior obligations, and related financing	342
costs and any expenses incurred or to be incurred in connection	343
with that issuance and refunding. Subject to the applicable bond	344
proceedings, the portion of the proceeds of the sale of refunding	345
obligations issued under division (J)(1)(b) of this section to be	346
applied to debt service on the prior obligations shall be credited	347
to an appropriate separate account in the bond service fund and	348
held in trust for the purpose by the issuing authority or by a	349
corporate trustee. Obligations authorized under this division	350
shall be considered to be issued for those purposes for which the	351
prior obligations were issued.	352

(2) Except as otherwise provided in sections 151.01 to 151.11	353
or 151.40 of the Revised Code, bonds or notes authorized pursuant	354
to division (J) of this section are subject to the provisions of	355
those sections pertaining to obligations generally.	356

(3) The principal amount of refunding or renewal obligations	357
issued pursuant to division (J) of this section shall be in	358
addition to the amount authorized by the general assembly as	359
referred to in division (B) of the following sections: section	360
151.03, 151.04, 151.05, 151.06, 151.07, 151.08, 151.09, 151.10,	361
151.11, or 151.40 of the Revised Code.	362

(K) Obligations are lawful investments for banks, savings and	363
loan associations, credit union share guaranty corporations, trust	364
companies, trustees, fiduciaries, insurance companies, including	365
domestic for life and domestic not for life, trustees or other	366
officers having charge of sinking and bond retirement or other	367
special funds of the state and political subdivisions and taxing	368
districts of this state, the sinking fund, the administrator of	369
workers' compensation subject to the approval of the workers'	370
compensation board, the state teachers retirement system, the	371
public employees retirement system, the school employees	372
retirement system, and the Ohio police and fire pension fund,	373
notwithstanding any other provisions of the Revised Code or rules	374
adopted pursuant to those provisions by any state agency with	375
respect to investments by them, and are also acceptable as	376
security for the repayment of the deposit of public moneys. The	377
exemptions from taxation in Ohio as provided for in particular	378
sections of the Ohio Constitution and section 5709.76 of the	379
Revised Code apply to the obligations.	380

(L)(1) Unless otherwise provided or provided for in any	381
applicable bond proceedings, moneys to the credit of or in a	382
special fund shall be disbursed on the order of the issuing	383
authority. No such order is required for the payment, from the	384
bond service fund or other special fund, when due of debt service	385
or required payments under credit enhancement facilities.	386

(2) Payments received by the state under interest rate hedges	387
entered into as credit enhancement facilities under this chapter	388
shall be deposited to the credit of the bond service fund for the	389
obligations to which those credit enhancement facilities relate.	390

(M) The full faith and credit, revenue, and taxing power of	391
the state are and shall be pledged to the timely payment of debt	392
service on outstanding obligations as it comes due, all in	393
accordance with Section 2k, 2l, 2m, 2n, 2o, 2p, 2q, or 15 of	394
Article VIII, Ohio Constitution, and section 151.03, 151.04,	395
151.05, 151.06, 151.07, 151.08, 151.09, 151.10, or 151.11 of the	396
Revised Code. Moneys referred to in Section 5a of Article XII,	397
Ohio Constitution, may not be pledged or used for the payment of	398
debt service except on obligations referred to in section 151.06	399
of the Revised Code. Net state lottery proceeds, as provided for	400
and referred to in section 3770.06 of the Revised Code, may not be	401
pledged or used for the payment of debt service except on	402
obligations referred to in section 151.03 of the Revised Code. The	403
state covenants, and that covenant shall be controlling	404
notwithstanding any other provision of law, that the state and the	405
applicable officers and agencies of the state, including the	406
general assembly, shall, so long as any obligations are	407
outstanding in accordance with their terms, maintain statutory	408
authority for and cause to be levied, collected and applied	409
sufficient pledged excises, taxes, and revenues of the state so	410
that the revenues shall be sufficient in amounts to pay debt	411
service when due, to establish and maintain any reserves and other	412
requirements, and to pay financing costs, including costs of or	413
relating to credit enhancement facilities, all as provided for in	414
the bond proceedings. Those excises, taxes, and revenues are and	415
shall be deemed to be levied and collected, in addition to the	416
purposes otherwise provided for by law, to provide for the payment	417
of debt service and financing costs in accordance with sections	418
151.01 to 151.11 of the Revised Code and the bond proceedings.	419

(N) The general assembly may from time to time repeal or	420
reduce any excise, tax, or other source of revenue pledged to the	421
payment of the debt service pursuant to Section 2k, 2l, 2m, 2n,	422
2o, 2p, 2q, or 15 of Article VIII, Ohio Constitution, and sections	423
151.01 to 151.11 or 151.40 of the Revised Code, and may levy,	424
collect and apply any new or increased excise, tax, or revenue to	425
meet the pledge, to the payment of debt service on outstanding	426
obligations, of the state's full faith and credit, revenue and	427
taxing power, or of designated revenues and receipts, except fees,	428
excises or taxes referred to in Section 5a of Article XII, Ohio	429
Constitution, for other than obligations referred to in section	430
151.06 of the Revised Code and except net state lottery proceeds	431
for other than obligations referred to in section 151.03 of the	432
Revised Code. Nothing in division (N) of this section authorizes	433
any impairment of the obligation of this state to levy and collect	434
sufficient excises, taxes, and revenues to pay debt service on	435
obligations outstanding in accordance with their terms.	436

(O) Each bond service fund is a trust fund and is hereby	437
pledged to the payment of debt service on the applicable	438
obligations. Payment of that debt service shall be made or	439
provided for by the issuing authority in accordance with the bond	440
proceedings without necessity for any act of appropriation. The	441
bond proceedings may provide for the establishment of separate	442
accounts in the bond service fund and for the application of those	443
accounts only to debt service on specific obligations, and for	444
other accounts in the bond service fund within the general	445
purposes of that fund.	446

(P) Subject to the bond proceedings pertaining to any	447
obligations then outstanding in accordance with their terms, the	448
issuing authority may in the bond proceedings pledge all, or such	449
portion as the issuing authority determines, of the moneys in the	450
bond service fund to the payment of debt service on particular	451
obligations, and for the establishment and maintenance of any	452
reserves for payment of particular debt service.	453

(Q) The issuing authority shall by the fifteenth day of July	454
of each fiscal year, certify or cause to be certified to the	455
office of budget and management the total amount of moneys	456
required during the current fiscal year to meet in full all debt	457
service on the respective obligations and any related financing	458
costs payable from the applicable bond service fund and not from	459
the proceeds of refunding or renewal obligations. The issuing	460
authority shall make or cause to be made supplemental	461
certifications to the office of budget and management for each	462
debt service payment date and at such other times during each	463
fiscal year as may be provided in the bond proceedings or	464
requested by that office. Debt service, costs of credit	465
enhancement facilities, and other financing costs shall be set	466
forth separately in each certification. If and so long as the	467
moneys to the credit of the bond service fund, together with any	468
other moneys available for the purpose, are insufficient to meet	469
in full all payments when due of the amount required as stated in	470
the certificate or otherwise, the office of budget and management	471
shall at the times as provided in the bond proceedings, and	472
consistent with any particular provisions in sections 151.03 to	473
151.11 and 151.40 of the Revised Code, transfer a sufficient	474
amount to the bond service fund from the pledged revenues in the	475
case of obligations issued pursuant to section 151.40 of the	476
Revised Code, and in the case of other obligations from the	477
revenues derived from excises, taxes, and other revenues,	478
including net state lottery proceeds in the case of obligations	479
referred to in section 151.03 of the Revised Code.	480

(R) Unless otherwise provided in any applicable bond	481
proceedings, moneys to the credit of special funds may be invested	482
by or on behalf of the state only in one or more of the following:	483

(1) Notes, bonds, or other direct obligations of the United	484
States or of any agency or instrumentality of the United States,	485
or in no-front-end-load money market mutual funds consisting	486
exclusively of those obligations, or in repurchase agreements,	487
including those issued by any fiduciary, secured by those	488
obligations, or in collective investment funds consisting	489
exclusively of those obligations;	490

(2) Obligations of this state or any political subdivision of	491
this state;	492

(3) Certificates of deposit of any national bank located in	493
this state and any bank, as defined in section 1101.01 of the	494
Revised Code, subject to inspection by the superintendent of	495
financial institutions;	496

(4) The treasurer of state's pooled investment program under	497
section 135.45 of the Revised Code.	498

The income from investments referred to in division (R) of	499
this section shall, unless otherwise provided in sections 151.01	500
to 151.11 or 151.40 of the Revised Code, be credited to special	501
funds or otherwise as the issuing authority determines in the bond	502
proceedings. Those investments may be sold or exchanged at times	503
as the issuing authority determines, provides for, or authorizes.	504

(S) The treasurer of state shall have responsibility for	505
keeping records, making reports, and making payments, relating to	506
any arbitrage rebate requirements under the applicable bond	507
proceedings.	508

Sec. 151.09. (A) As used in this section:

509

(1) "Costs of conservation projects" includes related direct	510
administrative expenses and allocable portions of the direct costs	511
of those projects of the department of agriculture, the department	512
of natural resources, or the Ohio public works commission.	513

(2) "Obligations" means obligations as defined in section	514
151.01 of the Revised Code issued to pay costs of projects for	515
conservation purposes as referred to in division (A)(1) of Section	516
2o of Article VIII, Ohio Constitution and division (A)(1) of	517
Section 2q of Article VIII, Ohio Constitution.	518

(B)(1) The issuing authority shall issue general obligations	519
of the state to pay costs of conservation projects pursuant to	520
division (B)(1) of Section 2o of Article VIII, Ohio Constitution,	521
division (B)(1) of Section 2q of Article VIII, Ohio Constitution,	522
section 151.01 of the Revised Code, and this section. The issuing	523
authority, upon the certification to it by the Ohio public works	524
commission of amounts needed in and for the purposes of the clean	525
Ohio conservation fund created by section 164.27 of the Revised	526
Code, the clean Ohio agricultural easement fund created by section	527
901.21 of the Revised Code, and the clean Ohio trail fund created	528
by section 1519.05 of the Revised Code, shall issue obligations in	529
the amount determined by the issuing authority to be required for	530
those purposes. Not more than ~~two~~four hundred million dollars	531
principal amount of obligations issued under this section for	532
conservation purposes may be outstanding at any one time. Not more	533
than ~~fifty~~one hundred million dollars principal amount of	534
obligations, plus the principal amount of obligations that in any	535
prior fiscal year could have been, but were not issued within the	536
~~fifty~~one hundred-million-dollar fiscal year limit, may be issued	537
in any fiscal year.	538

(2) In making the certification required under division	539
(B)(1) of this section, the Ohio public works commission shall	540
consult with the department of agriculture and the department of	541
natural resources. The commission shall certify amounts that	542
correspond to the distribution of the net proceeds of obligations	543
provided in division (C) of this section.	544

(C) Net proceeds of obligations shall be deposited as	545
follows:	546

(1) Seventy-five per cent into the clean Ohio conservation	547
fund created by section 164.27 of the Revised Code;	548

(2) Twelve and one-half per cent into the clean Ohio	549
agricultural easement fund created by section 901.21 of the	550
Revised Code;	551

(3) Twelve and one-half per cent into the clean Ohio trail	552
fund created by section 1519.05 of the Revised Code.	553

(D) There is hereby created in the state treasury the	554
conservation projects bond service fund. All moneys received by	555
the state and required by the bond proceedings, consistent with	556
section 151.01 of the Revised Code and this section, to be	557
deposited, transferred, or credited to the bond service fund, and	558
all other moneys transferred or allocated to or received for the	559
purposes of that fund, shall be deposited and credited to the bond	560
service fund, subject to any applicable provisions of the bond	561
proceedings, but without necessity for any act of appropriation.	562
During the period beginning with the date of the first issuance of	563
obligations and continuing during the time that any obligations	564
are outstanding in accordance with their terms, so long as moneys	565
in the bond service fund are insufficient to pay debt service when	566
due on those obligations payable from that fund, except the	567
principal amounts of bond anticipation notes payable from the	568
proceeds of renewal notes or bonds anticipated, and due in the	569
particular fiscal year, a sufficient amount of revenues of the	570
state is committed and, without necessity for further act of	571
appropriation, shall be paid to the bond service fund for the	572
purpose of paying that debt service when due.	573

Sec. 151.40. (A) As used in this section:

574

(1) "Bond proceedings" includes any trust agreements, and any	575
amendments or supplements to them, as authorized by this section.	576

(2) "Costs of revitalization projects" includes related	577
direct administrative expenses and allocable portions of the	578
direct costs of those projects of the department of development or	579
the environmental protection agency.	580

(3) "Issuing authority" means the treasurer of state.

581

(4) "Obligations" means obligations as defined in section	582
151.01 of the Revised Code issued to pay the costs of projects for	583
revitalization purposes as referred to in division (A)(2) of	584
Section 2o of Article VIII, Ohio Constitution and division (A)(2)	585
of Section 2q of Article VIII, Ohio Constitution.	586

(5) "Pledged liquor profits" means all receipts of the state	587
representing the gross profit on the sale of spirituous liquor, as	588
referred to in division (B)(4) of section 4301.10 of the Revised	589
Code, after paying all costs and expenses of the division of	590
liquor control and providing an adequate working capital reserve	591
for the division of liquor control as provided in that division,	592
but excluding the sum required by the second paragraph of section	593
4301.12 of the Revised Code, as it was in effect on May 2, 1980,	594
to be paid into the state treasury.	595

(6) "Pledged receipts" means, as and to the extent provided	596
in bond proceedings:	597

(a) Pledged liquor profits. The pledge of pledged liquor	598
profits to obligations is subject to the priority of the pledge of	599
those profits to obligations issued and to be issued pursuant to	600
Chapter 166. of the Revised Code.	601

(b) Moneys accruing to the state from the lease, sale, or	602
other disposition or use of revitalization projects or from the	603
repayment, including any interest, of loans or advances made from	604
net proceeds;	605

606

(d) Income from the investment of the special funds;

607

(e) Any gifts, grants, donations, or pledges, and receipts	608
therefrom, available for the payment of debt service;	609

(f) Additional or any other specific revenues or receipts	610
lawfully available to be pledged, and pledged, pursuant to further	611
authorization by the general assembly, to the payment of debt	612
service.	613

(B)(1) The issuing authority shall issue obligations of the	614
state to pay costs of revitalization projects pursuant to division	615
(B)(2) of Section 2o of Article VIII, Ohio Constitution, division	616
(B)(2) of Section 2q of Article VIII, Ohio Constitution, section	617
151.01 of the Revised Code as applicable to this section, and this	618
section. The issuing authority, upon the certification to it by	619
the clean Ohio council of the amount of moneys needed in and for	620
the purposes of the clean Ohio revitalization fund created by	621
section 122.658 of the Revised Code, shall issue obligations in	622
the amount determined by the issuing authority to be required for	623
those purposes. Not more than ~~two~~four hundred million dollars	624
principal amount of obligations issued under this section for	625
revitalization purposes may be outstanding at any one time. Not	626
more than ~~fifty~~one hundred million dollars principal amount of	627
obligations, plus the principal amount of obligations that in any	628
prior fiscal year could have been, but were not issued within the	629
~~fifty~~one hundred-million-dollar fiscal year limit, may be issued	630
in any fiscal year.	631

(2) The provisions and authorizations in section 151.01 of	632
the Revised Code apply to the obligations and the bond proceedings	633
except as otherwise provided or provided for in those obligations	634
and bond proceedings.	635

(C) Net proceeds of obligations shall be deposited in the	636
clean Ohio revitalization fund created in section 122.658 of the	637
Revised Code.	638

(D) There is hereby created the revitalization projects bond	639
service fund, which shall be in the custody of the treasurer of	640
state, but shall be separate and apart from and not a part of the	641
state treasury. All money received by the state and required by	642
the bond proceedings, consistent with section 151.01 of the	643
Revised Code and this section, to be deposited, transferred, or	644
credited to the bond service fund, and all other money transferred	645
or allocated to or received for the purposes of that fund, shall	646
be deposited and credited to the bond service fund, subject to any	647
applicable provisions of the bond proceedings, but without	648
necessity for any act of appropriation. During the period	649
beginning with the date of the first issuance of obligations and	650
continuing during the time that any obligations are outstanding in	651
accordance with their terms, so long as moneys in the bond service	652
fund are insufficient to pay debt service when due on those	653
obligations payable from that fund, except the principal amounts	654
of bond anticipation notes payable from the proceeds of renewal	655
notes or bonds anticipated, and due in the particular fiscal year,	656
a sufficient amount of pledged receipts is committed and, without	657
necessity for further act of appropriation, shall be paid to the	658
bond service fund for the purpose of paying that debt service when	659
due.	660

(E) The issuing authority may pledge all, or such portion as	661
the issuing authority determines, of the pledged receipts to the	662
payment of the debt service charges on obligations issued under	663
this section, and for the establishment and maintenance of any	664
reserves, as provided in the bond proceedings, and make other	665
provisions in the bond proceedings with respect to pledged	666
receipts as authorized by this section, which provisions are	667
controlling notwithstanding any other provisions of law pertaining	668
to them.	669

(F) The issuing authority may covenant in the bond	670
proceedings, and such covenants shall be controlling	671
notwithstanding any other provision of law, that the state and	672
applicable officers and state agencies, including the general	673
assembly, so long as any obligations issued under this section are	674
outstanding, shall maintain statutory authority for and cause to	675
be charged and collected wholesale or retail prices for spirituous	676
liquor sold by the state or its agents so that the available	677
pledged receipts are sufficient in time and amount to meet debt	678
service payable from pledged liquor profits and for the	679
establishment and maintenance of any reserves and other	680
requirements provided for in the bond proceedings.	681

(G) Obligations may be further secured, as determined by the	682
issuing authority, by a trust agreement between the state and a	683
corporate trustee, which may be any trust company or bank having a	684
place of business within the state. Any trust agreement may	685
contain the resolution or order authorizing the issuance of the	686
obligations, any provisions that may be contained in any bond	687
proceedings, and other provisions that are customary or	688
appropriate in an agreement of that type, including, but not	689
limited to:	690

(1) Maintenance of each pledge, trust agreement, or other	691
instrument comprising part of the bond proceedings until the state	692
has fully paid or provided for the payment of debt service on the	693
obligations secured by it;	694

(2) In the event of default in any payments required to be	695
made by the bond proceedings, enforcement of those payments or	696
agreements by mandamus, the appointment of a receiver, suit in	697
equity, action at law, or any combination of them;	698

(3) The rights and remedies of the holders or owners of	699
obligations and of the trustee and provisions for protecting and	700
enforcing them, including limitations on rights of individual	701
holders and owners.	702

(H) The obligations shall not be general obligations of the	703
state and the full faith and credit, revenue, and taxing power of	704
the state shall not be pledged to the payment of debt service on	705
them. The holders or owners of the obligations shall have no right	706
to have any moneys obligated or pledged for the payment of debt	707
service except as provided in this section and in the applicable	708
bond proceedings. The rights of the holders and owners to payment	709
of debt service are limited to all or that portion of the pledged	710
receipts, and those special funds, pledged to the payment of debt	711
service pursuant to the bond proceedings in accordance with this	712
section, and each obligation shall bear on its face a statement to	713
that effect.	714

Section 2. That existing sections 133.52, 151.01, 151.09, and	715
151.40 of the Revised Code are hereby repealed.	716

Section 3. Except as otherwise provided in this act, all	717
appropriation items in this act are appropriated out of any moneys	718
in the state treasury to the credit of the designated fund that	719
are not otherwise appropriated. For all appropriations made in	720
this act, the amounts in the first column are for fiscal year 2010	721
and the amounts in the second column are for fiscal year 2011.	722

Section 4. BOR BOARD OF REGENTS

723

General Revenue Fund	724

GRF	235441	Co-Op/Internship Program	$	50,000,000	$	50,000,000	725
TOTAL GRF General Revenue Fund			$	50,000,000		50,000,000	726
TOTAL ALL BUDGET FUND GROUPS			$	50,000,000	$	50,000,000	727

Section 5. DEV DEPARTMENT OF DEVELOPMENT

729

General Revenue Fund	730

Facilities Establishment Fund Group	731

7008	195698		Logistics & Distribution Infrastructure		$	25,000,000		$	25,000,000		732
TOTAL 037 Facilities Establishment Fund Group					$	25,000,000		$	25,000,000		733

Tobacco Master Settlement Agreement Fund Group	734

5Z30	195694	Jobs Fund Bioproducts	$	20,000,000	$	10,000,000	735
5Z30	195695	Jobs Fund Biomedical	$	40,000,000	$	20,000,000	736
TOTAL TSF Tobacco Master Settlement Agreement Fund Group			$	60,000,000	$	30,000,000	737
TOTAL ALL BUDGET FUND GROUPS			$	85,000,000	$	55,000,000	738

LOGISTICS AND DISTRIBUTION INFRASTRUCTURE

739

The foregoing appropriation item 195698, Logistics and	740
Distribution Infrastructure, shall be used for eligible logistics	741
and distribution projects as defined in section 166.01 of the	742
Revised Code.	743

JOBS FUND BIOPRODUCTS

744

The foregoing appropriation item 195694, Jobs Fund	745
Bioproducts, shall be used for the Ohio Bioproducts Development	746
Program established in section 184.25 of the Revised Code.	747

JOBS FUND BIOMEDICAL The foregoing appropriation item	748
195695, Jobs Fund Biomedical, shall be used for the Ohio	749
Biomedical Development Program established in section 184.26 of	750
the Revised Code.	751

Section 6. That Sections 217.10, 217.11, 239.10, 241.10,	752
243.10, and 243.11 of Am. Sub. H.B. 562 of the 127th General	753
Assembly be amended to read as follows:	754

Sec. 217.10. The items set forth in this section are hereby	755
appropriated out of any moneys in the state treasury to the	756
credit of the Clean Ohio Revitalization Fund (Fund 7003) that are	757
not otherwise appropriated:	758

Appropriations

DEV DEPARTMENT OF DEVELOPMENT	759

C19500	Clean Ohio Revitalization	$	~~32,000,000~~ 72,000,000	760
C19501	Clean Ohio Assistance	$	~~8,000,000~~ 18,000,000	761
Total Department of Development		$	~~40,000,000~~ 90,000,000	762
TOTAL Clean Ohio Assistance Fund		$	~~40,000,000~~ 90,000,000	763

Sec. 217.11. CLEAN OHIO REVITALIZATION

765

The Treasurer of State is hereby authorized to issue and	766
sell, in accordance with ~~Section~~Sections 2o and 2q of Article	767
VIII, Ohio Constitution, and pursuant to sections 151.01 and	768
151.40 of the Revised Code, original obligations in an aggregate	769
principal amount not to exceed ~~$40,000,000~~$90,000,000 in	770
addition to the original issuance of obligations heretofore	771
authorized by prior acts of the General Assembly. These	772
authorized obligations shall be issued and sold from time to	773
time, subject to applicable constitutional and statutory	774
limitations, as needed to ensure sufficient moneys to the credit	775
of the Clean Ohio Revitalization Fund (Fund 7003) to pay costs of	776
revitalization projects.	777

Sec. 239.10. The items set forth in this section are hereby	778
appropriated out of any moneys in the state treasury to the	779
credit of the Clean Ohio Conservation Fund (Fund 7056) that are	780
not otherwise appropriated.	781

Appropriations

PWC PUBLIC WORKS COMMISSION	782

C15060	Clean Ohio Conservation	$	~~30,000,000~~ 67,500,000	783
Total Public Works Commission		$	~~30,000,000~~ 67,500,000	784
TOTAL Clean Ohio Conservation Fund		$	~~30,000,000~~ 67,500,000	785

The foregoing appropriation item C15060, Clean Ohio	786
Conservation, shall be used in accordance with sections 164.20 to	787
164.27 of the Revised Code. If the Public Works Commission	788
receives refunds due to project overpayments that are discovered	789
during the post-project audit, the Director of the Public Works	790
Commission may certify to the Director of Budget and Management	791
that refunds have been received. If the Director of Budget and	792
Management determines that the project refunds are available to	793
support additional appropriations, such amounts are hereby	794
appropriated.	795

Sec. 241.10. The items set forth in this section are hereby	796
appropriated out of any moneys in the state treasury to the	797
credit of the Clean Ohio Agricultural Easement Fund (Fund 7057)	798
that are not otherwise appropriated.	799

Appropriations

AGR DEPARTMENT OF AGRICULTURE	800

C70009	Clean Ohio Agricultural Easements	$	~~5,000,000~~ 11,250,000	801
Total Department of Agriculture		$	~~5,000,000~~ 11,250,000	802
TOTAL Clean Ohio Agricultural Easement Fund		$	~~5,000,000~~ 11,250,000	803

Sec. 243.10. The items set forth in this section are hereby	805
appropriated out of any moneys in the state treasury to the	806
credit of the Clean Ohio Trail Fund (Fund 7061) that are not	807
otherwise appropriated.	808

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES	809

C72514	Clean Ohio Trail - Grants	$	~~5,000,000~~ 11,250,000	810
Total Department of Natural Resources		$	~~5,000,000~~ 11,250,000	811
TOTAL Clean Ohio Trail Fund		$	~~5,000,000~~ 11,250,000	812

Sec. 243.11. The Ohio Public Facilities Commission is hereby	814
authorized to issue and sell, in accordance with ~~Section~~Sections	815
2o and 2q of Article VIII, Ohio Constitution, and pursuant to	816
sections 151.01 and 151.09 of the Revised Code, original	817
obligations of the state in an aggregate principal amount not to	818
exceed ~~$40,000,000~~$90,000,000 in addition to the original	819
issuance of obligations heretofore authorized by prior acts of	820
the General Assembly. These authorized obligations shall be	821
issued and sold from time to time, subject to applicable	822
constitutional and statutory limitations, as needed to ensure	823
sufficient moneys to the credit of the Clean Ohio Conservation	824
Fund (Fund 7056), the Clean Ohio Agricultural Easement Fund	825
(Fund 7057), and the Clean Ohio Trail Fund (Fund 7061) to pay	826
costs of conservation projects.	827

Section 7. That existing Sections 217.10, 217.11, 239.10,	828
241.10, 243.10, and 243.11 of Am. Sub. H.B. 562 of the 127th	829
General Assembly are hereby repealed.	830

Section 8. This act is hereby declared to be an emergency	831
measure necessary for the immediate preservation of the public	832
peace, health, and safety. The reason for such necessity is to	833
make appropriations pursuant to the Bipartisan Job Stimulus Act of	834
2008 and Article VIII, Section 2q of the Ohio Constitution in	835
order to revive Ohio's economy and create jobs. Therefore, this	836
act shall go into immediate effect.	837