As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 676

Representative Conditt 

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A BILL

To amend sections 1710.01, 1710.02, 1710.021,

1

1710.03, 1710.04, 1710.05, 1710.06, 1710.061,

2

1710.07, 1710.11, 1710.12, 1710.13, 4582.06, and

3

4582.31; to amend, for the purpose of adopting a

4

new section number as indicated in parentheses,

5

section 1710.061 (1710.40); and to enact sections

6

1710.20, 1710.21, 1710.22, 1710.23, 1710.24,

7

1710.25, 1710.26, 1710.27, 1710.28, 1710.29,

8

1710.30, 1710.31, 1710.32, 1710.33, 1710.34,

9

1710.35, 1710.36, and 1710.37 of the Revised Code

10

to authorize port authorities to create energy

11

special improvement districts for the purpose of

12

developing and implementing plans for special

13

energy improvement projects and to alter the law

14

governing such districts that are governed by a

15

nonprofit corporation.

16

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

Section 1.  That sections 1710.01, 1710.02, 1710.021,	17
1710.03, 1710.04, 1710.05, 1710.06, 1710.061, 1710.07, 1710.11,	18
1710.12, 1710.13, 4582.06, and 4582.31 be amended, section	19
1710.061 (1710.40) be amended for the purpose of adopting a new	20
section number as indicated in parentheses, and sections 1710.20,	21
1710.21, 1710.22, 1710.23, 1710.24, 1710.25, 1710.26, 1710.27,	22
1710.28, 1710.29, 1710.30, 1710.31, 1710.32, 1710.33, 1710.34,	23
1710.35, 1710.36, and 1710.37 of the Revised Code be enacted to	24
read as follows:	25

Sec. 1710.01.  As used in this chapter:

26

(A) "Special improvement district" means a special	27
improvement district organized under this chaptersections 1710.02	28
to 1710.13 of the Revised Code.	29

(B) "Church" means a fellowship of believers, congregation,	30
society, corporation, convention, or association that is formed	31
primarily or exclusively for religious purposes and that is not	32
formed for the private profit of any person.	33

(C) "Church property" means property that is described as	34
being exempt from taxation under division (A)(2) of section	35
5709.07 of the Revised Code and that the county auditor has	36
entered on the exempt list compiled under section 5713.07 of the	37
Revised Code.	38

(D) "Municipal executive" means the mayor, city manager, or	39
other chief executive officer of the municipal corporation in	40
which a special improvement district is located.	41

(E) "Participating political subdivision" means the municipal	42
corporation or township, or each of the municipal corporations or	43
townships, that has territory within the boundaries of a special	44
improvement district or an energy special improvement district	45
created under this chapter.	46

(F) "Legislative authority of a participating political	47
subdivision" means, with reference to a township, the board of	48
township trustees.	49

(G) "Public improvement" means the planning, design,	50
construction, reconstruction, enlargement, or alteration of any	51
facility or improvement, including the acquisition of land, for	52
which a special assessment may be levied under Chapter 727. of the	53
Revised Code, and includes any special energy improvement project.	54

(H) "Public service" means any service that can be provided	55
by a municipal corporation or any service for which a special	56
assessment may be levied under Chapter 727. of the Revised Code.	57

(I) "Special energy improvement project" means any property,	58
device, structure, or equipment necessary for the acquisition,	59
installation, equipping, and improvement of any real or personal	60
property used for the purpose of creating a solar photovoltaic	61
project, a solar thermal energy project, a geothermal energy	62
project, a waste heat recovery project, a hydroelectric project, a	63
water efficiency project, a combined heat and power (CHP) project,	64
a fuel source conversion project, a cogeneration project, a	65
biodigestor project, a customer-generated energy project, or an	66
energy efficiency improvement, whether such real or personal	67
property is publicly or privately owned.	68

(J) "Existing qualified nonprofit corporation" means a	69
nonprofit corporation that existed before the creation of the	70
corresponding special improvement district under this chapter,	71
that is composed of members located within or adjacent to the	72
district, that has established a police department under section	73
1702.80 of the Revised Code, and that is organized for purposes	74
that include acquisition of real property within an area specified	75
by its articles for the subsequent transfer of such property to	76
its members exclusively for charitable, scientific, literary, or	77
educational purposes, or holding and maintaining and leasing such	78
property; planning for and assisting in the development of its	79
members; providing for the relief of the poor and distressed or	80
underprivileged in the area and adjacent areas; combating	81
community deterioration and lessening the burdens of government;	82
providing or assisting others in providing housing for low- or	83
moderate-income persons; and assisting its members by the	84
provision of public safety and security services, parking	85
facilities, transit service, landscaping, and parks.	86

(K) "Energy efficiency improvement" means energy efficiency	87
technologies, products, and activities that reduce or support the	88
reduction of energy consumption, allow for the reduction in	89
demand, or support the production of clean, renewable energy and	90
that are or will be permanently fixed to real property.	91

(L) "Customer-generated energy project" means a wind,	92
biomass, or gasification facility for the production of	93
electricity that meets either of the following requirements:	94

(1) The facility is designed to have a generating capacity of	95
two hundred fifty kilowatts of electricity or less.	96

(2) The facility is:

97

(a) Designed to have a generating capacity of more than two	98
hundred fifty kilowatts of electricity;	99

(b) Operated in parallel with electric transmission and	100
distribution facilities serving the real property at the site of	101
the customer-generated energy project;	102

(c) Intended primarily to offset part or all of the facility	103
owner's requirements for electricity at the site of the	104
customer-generated energy project and is located on the facility	105
owner's real property; and	106

(d) Not producing energy for direct sale by the facility	107
owner to the public.	108

(M) "Reduction in demand" means a change in customer behavior	109
or a change in customer-owned or operated assets that reduces or	110
has the capability to reduce the demand for electricity as a	111
result of price signals or other incentives.	112

(N) "Electric distribution utility" and "mercantile customer"	113
have the same meanings as in section 4928.01 of the Revised Code.	114

(O) "Fuel source conversion project" means a project	115
undertaken by a property owner, rural cooperative, or political	116
subdivision of this state to convert an existing fossil fuel-based	117
technology, product, or system to a more efficient technology,	118
product, or system, including conversion to a natural gas or	119
electricity-based technology, product, or system.	120

(P) "Nonresidential property" means real property that is not	121
classified as either residential or agricultural property for	122
property tax purposes.	123

(Q) "Port authority" means a port authority created under	124
section 4582.02 or section 4582.22 of the Revised Code.	125

Sec. 1710.02.  (A) A special improvement district may be	126
created within the boundaries of any one municipal corporation,	127
any one township, or any combination of contiguous municipal	128
corporations and townships for the purpose of developing and	129
implementing plans for public improvements and public services	130
that benefit the district. A district may be created by petition	131
of the owners of real property within the proposed district, or by	132
an existing qualified nonprofit corporation. If the district is	133
created by an existing qualified nonprofit corporation, the	134
purposes for which the district is created may be supplemental to	135
the other purposes for which the corporation is organized. All	136
territory in a special improvement district shall be contiguous;	137
except that the territory in a special improvement district may be	138
noncontiguous if at least one special energy improvement project	139
is designated for each parcel of real property included within the	140
special improvement district. Additional territory may be added to	141
a special improvement district created under this chapter for the	142
purpose of developing and implementing plans for special energy	143
improvement projects if at least one special energy improvement	144
project is designated for each parcel of real property included	145
within such additional territory and the addition of territory is	146
authorized by the initial plan proposed under division (F) of this	147
section or a plan adopted by the board of directors of the special	148
improvement district under section 1710.06 of the Revised Code.	149

The district shall be governed by the board of trustees	150
directors of a nonprofit corporation. Thisand the board shall be	151
known as the board of directors of the special improvement	152
district. No special improvement district shall include any church	153
property, or property of the federal or state government or a	154
county, township, or municipal corporation, unless the church or	155
the county, township, or municipal corporation specifically	156
requests in writing that the property be included within the	157
district, or unless the church is a member of the existing	158
qualified nonprofit corporation creating the district at the time	159
the district is created. More than one district may be created	160
within a participating political subdivision, but no real property	161
may be included within more than one district unless the owner of	162
the property files a written consent with the clerk of the	163
legislative authority, the township fiscal officer, or the village	164
clerk, as appropriate. The area of each district shall be	165
contiguous; except that the area of a special improvement district	166
may be noncontiguous if all parcels of real property included	167
within such area contain at least one special energy improvement	168
thereon.	169

(B) Except as provided in division (C) of this section, a	170
district created under this chaptersections 1710.02 to 1710.13 of	171
the Revised Code is not a political subdivision. A district	172
created under this chapterthose sections shall be considered a	173
public agency under section 102.01 and a public authority under	174
section 4115.03 of the Revised Code. Each member of the board of	175
directors of a district, each member's designee or proxy, and each	176
officer and employee of a district shall be considered a public	177
official or employee under section 102.01 of the Revised Code and	178
a public official and public servant under section 2921.42 of the	179
Revised Code. Districts created under this chaptersections	180
1710.02 to 1710.13 of the Revised Code are not subject to sections	181
121.81 to 121.83 of the Revised Code. Districts created under this	182
chapterbut are subject to sections 121.22 and 121.23 of the	183
Revised Code.	184

(C) Each district created under this chaptersections 1710.02	185
to 1710.13 of the Revised Code shall be considered a political	186
subdivision for purposes of section 4905.34 of the Revised Code.	187

Membership on the board of directors of the district shall	188
not be considered as holding a public office. Directors and their	189
designees shall be entitled to the immunities provided by Chapter	190
1702. and to the same immunity as an employee under division	191
(A)(6) of section 2744.03 of the Revised Code, except that	192
directors and their designees shall not be entitled to the	193
indemnification provided in section 2744.07 of the Revised Code	194
unless the director or designee is an employee or official of a	195
participating political subdivision of the district and is acting	196
within the scope of the director's or designee's employment or	197
official responsibilities.	198

District officers and district members and directors and	199
their designees or proxies shall not be required to file a	200
statement with the Ohio ethics commission under section 102.02 of	201
the Revised Code. All records of the district shall be treated as	202
public records under section 149.43 of the Revised Code, except	203
that records of organizations contracting with a district shall	204
not be considered to be public records under section 149.43 or	205
section 149.431 of the Revised Code solely by reason of any	206
contract with a district.	207

(D) Except as otherwise provided in this section, the	208
nonprofit corporation that governs a district shall be organized	209
in the manner described in Chapter 1702. of the Revised Code.	210
Except in the case of a district created by an existing qualified	211
nonprofit corporation, the corporation's articles of incorporation	212
are required to be approved, as provided in division (E) of this	213
section, by resolution of the legislative authority of each	214
participating political subdivision of the district. A copy of	215
that resolution shall be filed along with the articles of	216
incorporation in the secretary of state's office.	217

In addition to meeting the requirements for articles of	218
incorporation set forth in Chapter 1702. of the Revised Code, the	219
articles of incorporation for the nonprofit corporation governing	220
a district formed under this chaptersections 1710.02 to 1710.13	221
of the Revised Code shall provide all the following:	222

(1) The name for the district, which shall include the name	223
of each participating political subdivision of the district;	224

(2) A description of the territory within the district, which	225
may be all or part of each participating political subdivision.	226
The description shall be specific enough to enable real property	227
owners to determine if their property is located within the	228
district.	229

(3) A description of the procedure by which the articles of	230
incorporation may be amended. The procedure shall include	231
receiving approval of the amendment, by resolution, from the	232
legislative authority of each participating political subdivision	233
and filing the approved amendment and resolution with the	234
secretary of state.	235

(4) The reasons for creating the district, plus an	236
explanation of how the district will be conducive to the public	237
health, safety, peace, convenience, and welfare of the district.	238

(E) The articles of incorporation for a nonprofit corporation	239
governing a district created under this chaptersections 1710.02	240
to 1710.13 of the Revised Code and amendments to them shall be	241
submitted to the municipal executive, if any, and the legislative	242
authority of each municipal corporation or township in which the	243
proposed district is to be located. Except in the case of a	244
district created by an existing qualified nonprofit corporation,	245
the articles or amendments shall be accompanied by a petition	246
signed either by the owners of at least sixty per cent of the	247
front footage of all real property located in the proposed	248
district that abuts upon any street, alley, public road, place,	249
boulevard, parkway, park entrance, easement, or other existing	250
public improvement within the proposed district, excluding church	251
property or property owned by the state, county, township,	252
municipal, or federal government, unless a church, county,	253
township, or municipal corporation has specifically requested in	254
writing that the property be included in the district, or by the	255
owners of at least seventy-five per cent of the area of all real	256
property located within the proposed district, excluding church	257
property or property owned by the state, county, township,	258
municipal, or federal government, unless a church, county,	259
township, or municipal corporation has specifically requested in	260
writing that the property be included in the district. Pursuant to	261
Section 2o of Article VIII, Ohio Constitution, the petition	262
required under this division may be for the purpose of developing	263
and implementing plans for special energy improvement projects,	264
and, in such case, is determined to be in furtherance of the	265
purposes set forth in Section 2o of Article VIII, Ohio	266
Constitution. If a special improvement district is being created	267
under this chapter for the purpose of developing and implementing	268
plans for special energy improvement projects, the petition	269
required under this division shall be signed by one hundred per	270
cent of the owners of the area of all real property located within	271
the proposed special improvement district, at least one special	272
energy improvement project shall be designated for each parcel of	273
real property within the special improvement district, and the	274
special improvement district may include any number of parcels of	275
real property as determined by the legislative authority of each	276
participating political subdivision in which the proposed special	277
improvement district is to be located. For purposes of determining	278
compliance with these requirements, the area of the district, or	279
the front footage and ownership of property, shall be as shown in	280
the most current records available at the county recorder's office	281
and the county engineer's office sixty days prior to the date on	282
which the petition is filed.	283

Each municipal corporation or township with which the	284
petition is filed has sixty days to approve or disapprove, by	285
resolution, the petition, including the articles of incorporation.	286
In the case of a district created by an existing qualified	287
nonprofit corporation, each municipal corporation or township has	288
sixty days to approve or disapprove the creation of the district	289
after the corporation submits the articles of incorporation or	290
amendments thereto. This chaptersection does not prohibit or	291
restrict the rights of municipal corporations under Article XVIII	292
of the Ohio Constitution or the right of the municipal legislative	293
authority to impose reasonable conditions in a resolution of	294
approval. The acquisition, installation, equipping, and	295
improvement of a special energy improvement project under this	296
chapter shall not supersede any local zoning, environmental, or	297
similar law or regulation.	298

(F) Persons proposing creation and operation of the district	299
may propose an initial plan for public services or public	300
improvements that benefit all or any part of the district. Any	301
initial plan shall be submitted as part of the petition proposing	302
creation of the district or, in the case of a district created by	303
an existing qualified nonprofit corporation, shall be submitted	304
with the articles of incorporation or amendments thereto.	305

An initial plan may include provisions for the following:

306

(1) Creation and operation of the district and of the	307
nonprofit corporation to govern the district under this chapter;	308

(2) Hiring employees and professional services;

309

(3) Contracting for insurance;

310

(4) Purchasing or leasing office space and office equipment;

311

(5) Other actions necessary initially to form, operate, or	312
organize the district and the nonprofit corporation to govern the	313
district;	314

(6) A plan for public improvements or public services that	315
benefit all or part of the district, which plan shall comply with	316
the requirements of division (A) of section 1710.06 of the Revised	317
Code and may include, but is not limited to, any of the permissive	318
provisions described in the fourth sentence of that division or	319
listed in divisions (A)(1) to (7)(5) of that section;	320

(7) If the special improvement district is being created	321
under this chapter for the purpose of developing and implementing	322
plans for special energy improvement projects, provision for the	323
addition of territory to the special improvement district.	324

After the initial plan is approved by all municipal	325
corporations and townships to which it is submitted for approval	326
and the district is created, each participating subdivision shall	327
levy a special assessment within its boundaries to pay for the	328
costs of the initial plan. The levy shall be for no more than ten	329
years from the date of the approval of the initial plan; except	330
that if the proceeds of the levy are to be used to pay the costs	331
of a special energy improvement project, the levy of a special	332
assessment shall be for no more than thirty years from the date of	333
approval of the initial plan. In the event that additional	334
territory is added to a special improvement district, the special	335
assessment to be levied with respect to such additional territory	336
shall commence not earlier than the date such territory is added	337
and shall be for no more than thirty years from such date. For	338
purposes of levying an assessment for this initial plan, the	339
services or improvements included in the initial plan shall be	340
deemed a special benefit to property owners within the district.	341

(G) Each nonprofit corporation governing a district under	342
this chaptersections 1710.02 to 1710.13 of the Revised Code may	343
do the following:	344

(1) Exercise all powers of nonprofit corporations granted	345
under Chapter 1702. of the Revised Code that do not conflict with	346
this chaptersections 1710.02 to 1710.13 of the Revised Code;	347

(2) Develop, adopt, revise, implement, and repeal plans for	348
public improvements and public services for all or any part of the	349
district;	350

(3) Contract with any person, political subdivision as	351
defined in section 2744.01 of the Revised Code, or state agency as	352
defined in section 1.60 of the Revised Code to develop and	353
implement plans for public improvements or public services within	354
the district;	355

(4) Contract and pay for insurance for the district and for	356
directors, officers, agents, contractors, employees, or members of	357
the district for any consequences of the implementation of any	358
plan adopted by the district or any actions of the district.	359

The board of directors of a special improvement district may,	360
acting as agent and on behalf of a participating political	361
subdivision, sell, transfer, lease, or convey any special energy	362
improvement project owned by the participating political	363
subdivision upon a determination by the legislative authority	364
thereof that the project is not required to be owned exclusively	365
by the participating political subdivision for its purposes, for	366
uses determined by the legislative authority thereof as those that	367
will promote the welfare of the people of such participating	368
political subdivision; to improve the quality of life and the	369
general and economic well-being of the people of the participating	370
political subdivision; better ensure the public health, safety,	371
and welfare; protect water and other natural resources; provide	372
for the conservation and preservation of natural and open areas	373
and farmlands, including by making urban areas more desirable or	374
suitable for development and revitalization; control, prevent,	375
minimize, clean up, or mediate certain contamination of or	376
pollution from lands in the state and water contamination or	377
pollution; or provide for safe and natural areas and resources.	378
The legislative authority of each participating political	379
subdivision shall specify the consideration for such sale,	380
transfer, lease, or conveyance and any other terms thereof. Any	381
determinations made by a legislative authority of a participating	382
political subdivision under this division shall be conclusive.	383

Any sale, transfer, lease, or conveyance of a special energy	384
improvement project by a participating political subdivision or	385
the board of directors of the special improvement district may be	386
made without advertising, receipt of bids, or other competitive	387
bidding procedures applicable to the participating political	388
subdivision or the special improvement district under Chapter 153.	389
or 735. or section 1710.11 of the Revised Code or other	390
representative provisions of the Revised Code.	391

Sec. 1710.021.  Any owner of an interest in real property	392
that is located within a proposed or existing special improvement	393
district who enters into a contract to transfer the interest shall	394
give to the transferee of the interest within the specified period	395
of time both of the following:	396

(A) Within five days after entering into the contract, each	397
notice that the owner received under this chaptersections 1710.02	398
to 1710.13 of the Revised Code within ninety days prior to	399
entering into the contract;	400

(B) Within five days after its receipt, each notice that the	401
owner receives under this chaptersections 1710.02 to 1710.13 of	402
the Revised Code after entering into the contract until the	403
contract is completely performed or terminated.	404

Sec. 1710.03.  (A) Except as otherwise provided in this	405
division, each owner of real property within a special improvement	406
district other than the state or federal government is a member of	407
the district, and the real property of each member of the district	408
is subject to special assessment under division (C) of section	409
1710.06 of the Revised Code. A church is not a member of the	410
district unless the church specifically requested in writing that	411
its property be included in the district or unless, in the case of	412
a district created by an existing qualified nonprofit corporation,	413
the church is a member of the corporation at the time the district	414
is created. A county, township, or municipal corporation owning	415
real property in the district is not a member of the district	416
unless such entity specifically requested in writing that its	417
property be included in the district.	418

The identity and address of the owners shall be determined	419
for any particular action of the nonprofit corporation that	420
governs the district, including notice of meetings of the	421
district, no more than sixty days prior to the date of the action,	422
from the most current records available at the county auditor's	423
office. For purposes of this chaptersections 1710.02 to 1710.13	424
of the Revised Code, the persons shown on such records as having	425
common or joint ownership interests in a parcel of real property	426
collectively shall constitute the owner of the real property.	427

(B) A member may file a written statement with the district's	428
secretary at least three days prior to any meeting of the entire	429
membership of the district to appoint a proxy to carry out the	430
member's rights and responsibilities under this chaptersections	431
1710.02 to 1710.13 of the Revised Code at that meeting.	432

(C) A member also may appoint a designee to carry out the	433
member's rights and responsibilities under this chaptersections	434
1710.02 to 1710.13 of the Revised Code by filing a written	435
designation form with the district's secretary. This form shall	436
include the name and address of the member, the name and address	437
of the designee, and the expiration date, if any, of the	438
designation and may authorize the designee to vote at any meeting	439
of the district.	440

(D) A proxy or designee need not be an elector or resident of	441
any participating political subdivision of the district or a	442
member of the district. The appointment of a proxy or a designee	443
may be changed by filing a new form with the district's secretary.	444
The most current form filed with the secretary is the valid	445
appointment. Service of any notice upon a proxy or designee at the	446
proxy's or designee's address as shown on that form satisfies any	447
requirements for notification of the member.	448

Sec. 1710.04.  (A) A special improvement district created	449
under this chaptersections 1710.02 to 1710.13 of the Revised Code	450
shall be governed by the board of directors of the special	451
improvement district. The board shall consist of at least five	452
directors. The board shall include a person appointed by the	453
legislative authority of each participating political subdivision	454
and the municipal executive of each municipal corporation with	455
territory within the boundaries of the special improvement	456
district. The remainder of the board's members shall be members of	457
the district. Except for the municipal executives and the	458
appointees of the legislative authorities, and except as otherwise	459
provided in this division, members of the board of directors shall	460
be elected at a meeting of the entire membership of the district.	461
The initial election of directors may occur at the first meeting	462
of the entire membership of the district after its creation. All	463
subsequent elections shall be held at a Novemberan annual meeting	464
of the membership.	465

Each municipal executive may designate one person who is an	466
employee of the municipal corporation involved with its planning	467
or economic development functions to serve in the municipal	468
executive's stead. This designee shall serve at the pleasure of	469
the municipal executive.	470

In the case of a district created by an existing qualified	471
nonprofit corporation, the corporation's board of trustees	472
directors or other governing board, however denominated, shall be	473
the board of directors of the special improvement district for the	474
purposes of this chaptersections 1710.02 to 1710.13 of the	475
Revised Code. The election of directors otherwise required by this	476
division shall not be required, and the requirement that municipal	477
executives and appointees of the legislative authorities be	478
members of the district's board of directors may be satisfied by	479
the membership on the corporation's governing board of	480
representatives of such participating political subdivisions, or	481
may be waived if approved by resolution of the legislative	482
authorities of the participating political subdivisions.	483

(B) A director may file a written statement with the	484
district's secretary at least three days prior to any meeting of	485
the board to have a person act as proxy to carry out the	486
director's rights and responsibilities under this chaptersections	487
1710.02 to 1710.13 of the Revised Code at that meeting.	488

A director may also appoint a designee to carry out the	489
director's rights and responsibilities under this chaptersections	490
1710.02 to 1710.13 of the Revised Code by filing a written	491
designation form with the district's secretary. This form shall	492
include the name and address of the director, the name and address	493
of the designee, and the expiration date, if any, of the	494
designation.	495

A proxy or designee need not be an elector or resident of a	496
participating political subdivision of the district or a member of	497
the district. The appointment of a proxy or designee may be	498
changed by filing a new form with the district's secretary. The	499
most current form filed with the secretary is the valid	500
appointment. Service of any notice upon a proxy or designee at the	501
proxy's or designee's address as shown on that form satisfies any	502
requirements for notification of the director.	503

(C) Notice of the time, date, place, and agenda for any	504
meeting of the board of directors shall be by written notice to	505
each director, transmitted by certified mail, personal service, or	506
electronic device prior to the meeting. If possible, the notice	507
shall be served at least one week prior to the meeting.	508

The board shall act by a majority vote of those present and	509
authorized to vote at any meeting where proper notice has been	510
served.	511

(D) The board shall elect a chairperson, vice-chairperson,	512
secretary, and treasurer of the board. These officers shall serve	513
at the board's pleasure. A director may be elected to more than	514
one office, except that the director elected as treasurer shall	515
not be elected to any other office of the board.	516

By the first day of March of each year, the treasurer shall	517
submit to each member of the district and to the municipal	518
executive, chief fiscal officer, and legislative authority of each	519
municipal corporation with territory within the boundaries of the	520
special improvement district and the board of township trustees of	521
each township with territory within the boundaries of the special	522
improvement district, a report of the district's activities and	523
financial condition for the previous year.	524

(E) Divisions (B), (C), and (D) of this section do not apply	525
to a district created by an existing qualified nonprofit	526
corporation to the extent those divisions are not consistent with	527
the regulations of the corporation, in which case the regulations	528
of the corporation shall govern.	529

Sec. 1710.05.  Except as otherwise provided in this chapter	530
sections 1710.02 to 1710.13 of the Revised Code, the articles of	531
incorporation or the code of regulations governing the nonprofit	532
corporation shall provide for the method by which notice for	533
meetings of the membership of the special improvement district is	534
to be given and the method for voting by the membership of the	535
district.	536

Sec. 1710.06.  (A) The board of directors of a special	537
improvement district may develop and adopt one or more written	538
plans for public improvements or public services that benefit all	539
or any part of the district. Each plan shall set forth the	540
specific public improvements or public services that are to be	541
provided, identify the area in which they will be provided, and	542
specify the method of assessment to be used. Each plan for public	543
improvements or public services shall indicate the period of time	544
the assessments are to be levied for the improvements and services	545
and, if public services are included in the plan, the period of	546
time the services are to remain in effect. Plans for public	547
improvements may include the planning, design, construction,	548
reconstruction, enlargement, or alteration of any public	549
improvements and the acquisition of land for the improvements.	550
Plans for public improvements or public services may also include,	551
but are not limited to, provisions for the following:	552

(1) Creating and operating the district and the nonprofit	553
corporation under this chaptersections 1710.02 to 1710.13 of the	554
Revised Code, including hiring employees and professional	555
services, contracting for insurance, and purchasing or leasing	556
office space and office equipment and other requirements of the	557
district;	558

(2) Planning, designing, and implementing a public	559
improvements or public services plan, including hiring	560
architectural, engineering, legal, appraisal, insurance,	561
consulting, energy auditing, and planning services, and, for	562
public services, managing, protecting, and maintaining public and	563
private facilities, including public improvements;	564

(3) Conducting court proceedings to carry out this chapter	565
sections 1710.02 to 1710.13 of the Revised Code;	566

(4) Paying damages resulting from the provision of public	567
improvements or public services and implementing the plans;	568

(5) Paying the costs of issuing, paying interest on, and	569
redeeming or refunding notes and bonds issued for funding public	570
improvements and public services plans;	571

(6) Sale, lease, lease with an option to purchase, conveyance	572
of other interests in, or other contracts for the acquisition,	573
construction, maintenance, repair, furnishing, equipping,	574
operation, or improvement of any special energy improvement	575
project by the special improvement district, between a	576
participating political subdivision and the special improvement	577
district, and between the special improvement district and any	578
owner of real property in the special improvement district on	579
which a special energy improvement project has been acquired,	580
installed, equipped, or improved; and	581

(7) Aggregating the renewable energy credits generated by one	582
or more special energy improvement projects within a special	583
improvement district, upon the consent of the owners of the	584
credits and for the purpose of negotiating and completing the sale	585
of such credits.	586

(B) Once the board of directors of the special improvement	587
district adopts a plan, it shall submit the plan to the	588
legislative authority of each participating political subdivision	589
and the municipal executive of each municipal corporation in which	590
the district is located, if any. The legislative authorities and	591
municipal executives shall review the plan and, within sixty days	592
after receiving it, may submit their comments and recommendations	593
about it to the district. After reviewing these comments and	594
recommendations, the board of directors may amend the plan. It may	595
then submit the plan, amended or otherwise, in the form of a	596
petition to members of the district whose property may be assessed	597
for the plan. Once the petition is signed by those members who own	598
at least sixty per cent of the front footage of property that is	599
to be assessed and that abuts upon a street, alley, public road,	600
place, boulevard, parkway, park entrance, easement, or other	601
public improvement, or those members who own at least seventy-five	602
per cent of the area to be assessed for the improvement or	603
service, the petition may be submitted to each legislative	604
authority for approval. If the special improvement district was	605
created for the purpose of developing and implementing plans for	606
special energy improvement projects, the petition required under	607
this division shall be signed by one hundred per cent of the	608
owners of the area of all real property located within the area to	609
be assessed for the special energy improvement project.	610

Each legislative authority shall, by resolution, approve or	611
reject the petition within sixty days after receiving it. If the	612
petition is approved by the legislative authority of each	613
participating political subdivision, the plan contained in the	614
petition shall be effective at the earliest date on which a	615
nonemergency resolution of the legislative authority with the	616
latest effective date may become effective. A plan may not be	617
resubmitted to the legislative authorities and municipal	618
executives more than three times in any twelve-month period.	619

(C) Each participating political subdivision shall levy, by	620
special assessment upon specially benefited property located	621
within the district, the costs of any public improvements or	622
public services plan contained in a petition approved by the	623
participating political subdivisions under this section or	624
division (F) of section 1710.02 of the Revised Code. The levy	625
shall be made in accordance with the procedures set forth in	626
Chapter 727. of the Revised Code, except that:	627

(1) The assessment for each improvements or services plan may	628
be levied by any one or any combination of the methods of	629
assessment listed in section 727.01 of the Revised Code, provided	630
that the assessment is uniformly applied.	631

(2) For the purpose of levying an assessment, the board of	632
directors may combine one or more improvements or services plans	633
or parts of plans and levy a single assessment against specially	634
benefited property.	635

(3) For purposes of special assessments levied by a township	636
pursuant to this chaptersections 1710.02 to 1710.13 of the	637
Revised Code, references in Chapter 727. of the Revised Code to	638
the municipal corporation shall be deemed to refer to the	639
township, and references to the legislative authority of the	640
municipal corporation shall be deemed to refer to the board of	641
township trustees.	642

Church property or property owned by a political subdivision,	643
including any participating political subdivision in which a	644
special improvement district is located, shall be included in and	645
be subject to special assessments made pursuant to a plan adopted	646
under this section or division (F) of section 1710.02 of the	647
Revised Code, if the church or political subdivision has	648
specifically requested in writing that its property be included	649
within the special improvement district and the church or	650
political subdivision is a member of the district or, in the case	651
of a district created by an existing qualified nonprofit	652
corporation, if the church is a member of the corporation.	653

(D) All rights and privileges of property owners who are	654
assessed under Chapter 727. of the Revised Code shall be granted	655
to property owners assessed under this chaptersections 1710.02 to	656
1710.13 of the Revised Code, including those rights and privileges	657
specified in sections 727.15 to 727.17 and 727.18 to 727.22 of the	658
Revised Code and the right to notice of the resolution of	659
necessity and the filing of the estimated assessment under section	660
727.13 of the Revised Code. Property owners assessed for public	661
services under this chaptersections 1710.02 to 1710.13 of the	662
Revised Code shall have the same rights and privileges as property	663
owners assessed for public improvements under this chapter	664
sections 1710.02 to 1710.13 of the Revised Code.	665

Sec. 1710.07.  The cost of any public improvements or public	666
services plan of a special improvement district may include, but	667
is not limited to, the following:	668

(A) The cost of creating and operating the district under	669
this chaptersections 1710.02 to 1710.13 of the Revised Code,	670
including creating and operating a nonprofit organization	671
organized under this chaptersections 1710.02 to 1710.13 of the	672
Revised Code, hiring employees and professional services,	673
contracting for insurance, and purchasing or leasing office space	674
or office equipment;	675

(B) The cost of planning, designing, and implementing the	676
public improvements or public services plan, including payment of	677
architectural, engineering, legal, appraisal, insurance,	678
consulting, energy auditing, and planning fees and expenses, and,	679
for public services, the management, protection, and maintenance	680
costs of public or private facilities;	681

(C) Any court costs incurred by the district in implementing	682
the public improvements or public services plan;	683

(D) Any damages resulting from implementing the public	684
improvements or public services plan;	685

(E) The costs of issuing, paying interest on, and redeeming	686
or refunding notes and bonds issued for funding the public	687
improvements or public services plan; and	688

(F) The costs associated with the sale, lease, lease with an	689
option to purchase, conveyance of other interests in, or other	690
contracts for the acquisition, construction, maintenance, repair,	691
furnishing, equipping, operation, or improvement of any special	692
energy improvement project by the district, between a	693
participating political subdivision and the special improvement	694
district, or between the special improvement district and any	695
owner of real property in the special improvement district on	696
which a special energy improvement project has been acquired,	697
installed, equipped, or improved.	698

Sec. 1710.11.  The board of directors of a special	699
improvement district shall adopt written rules prescribing	700
competitive bidding procedures for contracts awarded under this	701
chaptersections 1710.02 to 1710.13 of the Revised Code. The	702
procedures may differ from competitive bidding procedures	703
applicable to the participating political subdivisions of the	704
district or those provided in Chapter 735. of the Revised Code.	705
The rules shall provide for advertising for bids and specify the	706
bidding procedures to be followed, and may specify conditions	707
under which competitive bidding is not required and other	708
conditions such as establishing a dollar limit per contract or	709
specifying particular parties to a contract.	710

Sec. 1710.12.  Any participating political subdivision of a	711
special improvement district may issue bonds and notes in	712
anticipation of collection of any special assessments authorized	713
by this chaptersections 1710.02 to 1710.13 of the Revised Code.	714
All proceeds of any assessments,such bonds, or notes issued to	715
fund any public improvements or public services plan under this	716
chaptersections 1710.02 to 1710.13 of the Revised Code shall	717
first be applied by the political subdivision to payment of those	718
bonds or notes and any interest on them, as required by section	719
133.17 of the Revised Code. Any remaining proceeds shall be turned	720
over to the treasurer of the district and deposited in a district	721
account to be used for the purposes for which the assessment was	722
made or for which the bonds or notes were issued.	723

Sec. 1710.13.  This section does not apply to a special	724
improvement district created by an existing qualified nonprofit	725
corporation.	726

The process for dissolving a special improvement district or	727
repealing an improvements or services plan may be initiated by a	728
petition signed by members of the district who own at least twenty	729
per cent of the appraised value of the real property located in	730
the district, excluding church property or real property owned by	731
the federal government, the state, or a county, township, or	732
municipal corporation, unless the church, county, township, or	733
municipal corporation has specifically requested in writing that	734
the property be included in the district, and filed with the	735
municipal executive, if any, and the legislative authorities of	736
all the participating political subdivisions of the district. As	737
used in this section, "appraised value" means the taxable value	738
established by the county auditor for purposes of real estate	739
taxation.	740

No later than forty-five days after such a petition is filed,	741
the members of the district shall meet to consider it. Notice of	742
the meeting shall be given as provided in section 1710.05 of the	743
Revised Code. Upon the affirmative vote of members who	744
collectively own more than fifty per cent of the appraised value	745
of the real property in the district that may be subject to	746
assessment under division (C) of section 1710.06 of the Revised	747
Code, the district shall be dissolved, or the plan shall be	748
repealed, as applicable.	749

No rights or obligations of any person under any contract, or	750
in relation to any bonds, notes, or assessments made under this	751
chaptersections 1710.02 to 1710.13 of the Revised Code, shall be	752
affected by the dissolution of the district or the repeal of a	753
plan, except with the consent of that person or by order of a	754
court with jurisdiction over the matter. Upon dissolution of a	755
district, any assets or rights of the district, after payment of	756
all bonds, notes, or other obligations of the district, shall be	757
deposited in a special account in the treasury of each	758
participating political subdivision, prorated among all	759
participating political subdivisions to reflect the percentage of	760
the district's territory within that political subdivision, to be	761
used for the benefit of the territory that made up the district.	762

Once the members have approved the repeal of a plan, all	763
bonds, notes, and other obligations of the district associated	764
with the plan shall be paid. Thereafter, the plan shall be	765
repealed. Upon receipt of proof that all bonds, notes, and other	766
obligations have been paid and that the plan has been repealed,	767
the participating political subdivisions shall terminate any	768
levies imposed to pay for costs of the plan.	769

Sec. 1710.20. For the purpose of developing and implementing	770
plans for special energy improvement projects on nonresidential	771
property, a property owner or owners may create an energy special	772
improvement district. The property owner or owners shall create	773
the district in accordance with sections 1710.20 to 1710.28 of the	774
Revised Code and shall ensure that all of the following apply to	775
the district:	776

(A) The district is governed by a nonprofit corporation	777
organized under Chapter 1702. of the Revised Code acting through	778
its board of directors.	779

(B) The territory comprising the district is within the	780
boundaries of any one municipal corporation, any one township, or	781
any combination of contiguous or noncontiguous municipal	782
corporations or townships.	783

(C) At least one special energy improvement project is	784
designated for each parcel of real property within the district.	785

Sec. 1710.21.  In order to create an energy special	786
improvement district under sections 1710.20 to 1710.28 of the	787
Revised Code, the person or persons proposing the creation of the	788
district shall submit to each participating political subdivision	789
all of the following:	790

(A) A written plan for special energy improvement projects	791
created in accordance with section 1710.22 of the Revised Code;	792

(B) The articles of incorporation for the nonprofit	793
corporation that will govern the district that meet the	794
requirements of section 1710.23 of the Revised Code; and	795

(C) A petition for the creation of the district signed by one	796
hundred per cent of the property owners located within the	797
proposed district.	798

For purposes of compliance with division (C) of this section,	799
the person or persons proposing creation of the district shall	800
show the area of the district and the ownership of each parcel of	801
property of the proposed district by reference to records that	802
were available from each county recorder's office not more than	803
sixty days prior to the submission of the petition. A petition	804
submitted under division (C) of this section is in furtherance of	805
the purposes set forth in Section 2o of Article VIII, Ohio	806
Constitution.	807

Sec. 1710.22. (A) The person or persons proposing the	808
creation of an energy special improvement district under sections	809
1710.20 to 1710.28 of the Revised Code shall ensure that the plan	810
required under section 1710.21 of the Revised Code includes both	811
of the following:	812

(1) A description of the proposed special energy improvement	813
project or projects, including the cost of the proposed project or	814
projects and a statement of which property or properties each	815
project will benefit. The person or persons shall designate at	816
least one special energy improvement project for each parcel of	817
real property within the proposed district.	818

(2) The method of assessment to be used and the time period	819
during which the assessment will be levied.	820

(B) The person or persons proposing the creation of an energy	821
special improvement district under sections 1710.20 to 1710.28 of	822
the Revised Code may include in the plan submitted under section	823
1710.21 of the Revised Code provisions for the following:	824

(1) Creating and operating the district and the nonprofit	825
corporation, including hiring employees and professional services,	826
contracting for insurance, and purchasing or leasing office space	827
and office equipment and other requirements of the district;	828

(2) Planning, designing, and implementing a plan, and paying	829
the costs of any action taken in furtherance of the plan,	830
including hiring architectural, engineering, legal, appraisal,	831
insurance, consulting, energy auditing, and planning services;	832

(3) Conducting court proceedings to carry out sections	833
1710.20 to 1710.28 of the Revised Code;	834

(4) Paying damages resulting from the provision of public	835
improvements or public services and implementing a plan;	836

(5) Paying the costs of issuing, paying interest on, and	837
redeeming or refunding notes and bonds issued for the purpose of	838
funding a plan;	839

(6) Sale, lease, lease with an option to purchase, conveyance	840
of other interests in, or other contracts for the acquisition,	841
construction, maintenance, repair, furnishing, equipping,	842
operation, or improvement of any special energy improvement	843
project by the energy special improvement district, between a	844
participating political subdivision and the district, and between	845
the district and any owner of real property in the district on	846
which a special energy improvement project has been acquired,	847
installed, equipped, or improved;	848

(7) Aggregating the renewable energy credits generated by one	849
or more special energy improvement projects within an energy	850
special improvement district, upon the consent of the owners of	851
the credits and for the purpose of negotiating and completing the	852
sale of such credits;	853

(8) The addition of territory to the energy special	854
improvement district;	855

(9) Any other actions necessary to form, operate, or organize	856
the energy special improvement district and the nonprofit	857
corporation that will govern the energy special improvement	858
district.	859

Sec. 1710.23.  The person or persons proposing the creation	860
of an energy special improvement district under sections 1710.20	861
to 1710.28 of the Revised Code shall ensure that in addition to	862
meeting the requirements for articles of incorporation set forth	863
in Chapter 1702. of the Revised Code, the articles of	864
incorporation submitted under section 1710.21 of the Revised Code	865
for the nonprofit corporation that will govern the energy special	866
improvement district provide all of the following:	867

(A) The name for the district;

868

(B) A description of the territory within the district, which	869
may be all or part of each participating political subdivision;	870

(C) A description of the procedure by which the articles of	871
incorporation may be amended;	872

(D) The reasons for creating the district and an explanation	873
of how the district will be conducive to the public health,	874
safety, peace, convenience, and welfare of the district.	875

Sec. 1710.24.  (A) Each participating political subdivision	876
with which the petition, the plan, and the articles of	877
incorporation are filed under section 1710.21 of the Revised Code	878
has sixty days to approve or disapprove, by resolution, the	879
petition, the plan, and the articles of incorporation. A copy of	880
that resolution shall be filed along with the articles of	881
incorporation in the secretary of state's office. The energy	882
special improvement district is created upon the filing of	883
approval by all participating political subdivisions within the	884
proposed energy special improvement district.	885

This division does not prohibit or restrict the rights of	886
municipal corporations under Article XVIII of the Ohio	887
Constitution or the right of the municipal legislative authority	888
to impose reasonable conditions in a resolution of approval. The	889
acquisition, installation, equipping, and improvement of a special	890
energy improvement project under this section does not supersede	891
any local zoning, environmental, or similar law or regulation.	892

(B) If a participating political subdivision approves the	893
petition, the plan, and the articles of incorporation, the	894
participating political subdivision shall levy a special	895
assessment on all real property in the energy special improvement	896
district that is located within its boundaries to pay for the	897
costs of the plan. The participating political subdivision shall	898
levy the special assessment for not more than thirty years from	899
the first day of the year in which the special assessment is	900
imposed. In the event that additional territory is added to the	901
energy special improvement district, a participating political	902
subdivision shall levy the special assessment with respect to such	903
additional territory commencing not earlier than the date such	904
territory is added and for not more than thirty years from the	905
first day of the year in which the special assessment is first	906
imposed.	907

(C) For purposes of levying a special assessment for the	908
plan, the special energy improvement projects included in the plan	909
are deemed a special benefit to property owners within the energy	910
special improvement district. The use of special assessments	911
levied to benefit such property owners does not constitute	912
expenditures made with public funds. The participating political	913
subdivision shall levy the special assessment in accordance with	914
Chapter 727. of the Revised Code except that:	915

(1) The participating political subdivision may levy the	916
assessment for each plan by any one or any combination of the	917
methods of assessment listed in section 727.01 of the Revised	918
Code, provided that the assessment is uniformly applied;	919

(2) For purposes of levying an assessment, the participating	920
political subdivision may combine one or more plans or parts of	921
plans and levy a single assessment against specially benefited	922
property;	923

(3) For purposes of special assessments levied by a township	924
under this section, references in Chapter 727. of the Revised Code	925
to the municipal corporation are deemed to refer to the township,	926
and references to the legislative authority of the municipal	927
corporation are deemed to refer to the board of township trustees.	928

(D) All applicable rights and privileges of a property owner	929
that is assessed under Chapter 727. of the Revised Code are	930
granted to a property owner assessed under this section, including	931
those rights and privileges specified in sections 727.15 to 727.17	932
and 727.18 to 727.22 of the Revised Code and the right to notice	933
of the resolution of necessity and the filing of the estimated	934
assessment under section 727.13 of the Revised Code. Property	935
owners assessed for public services under this section have the	936
same rights and privileges as property owners assessed for public	937
improvements under this section.	938

Sec. 1710.25.  (A) Each nonprofit corporation governing an	939
energy special improvement district under sections 1710.20 to	940
1710.28 of the Revised Code may do the following:	941

(1) Exercise all powers of nonprofit corporations granted	942
under Chapter 1702. of the Revised Code that do not conflict with	943
sections 1710.20 to 1710.28 of the Revised Code;	944

(2) Develop, adopt, revise, implement, and repeal plans for	945
all or any part of the district;	946

(3) Contract with any person, political subdivision as	947
defined in section 2744.01 of the Revised Code, or state agency as	948
defined in section 1.60 of the Revised Code to develop and	949
implement plans for special energy improvement projects within the	950
district;	951

(4) Contract and pay for insurance for the district and for	952
directors, officers, agents, contractors, employees, or members of	953
the district for any consequences of the implementation of any	954
plan adopted by the district or any actions of the district;	955

(5) Act as an agent for and on behalf of a participating	956
political subdivision in order to sell, transfer, lease, or convey	957
any special energy improvement project owned by the political	958
subdivision, provided that the legislative authority of the	959
participating political subdivision determines that the project is	960
not required to be exclusively owned by the political subdivision	961
for its purposes, and provided that the sale is for any of the	962
following purposes:	963

(a) To promote the welfare of the people of such	964
participating political subdivision;	965

(b) To improve the quality of life and the general and	966
economic well-being of the people of the participating political	967
subdivision;	968

(c) To better ensure the public health, safety, and welfare;

969

(d) To protect water and other natural resources;

970

(e) To provide for the conservation and preservation of	971
natural and open areas and farmlands, including by making urban	972
areas more desirable or suitable for development and	973
revitalization;	974

(f) To control, prevent, minimize, clean up, or mediate	975
certain contamination of or pollution from lands in the state and	976
water contamination or pollution; or	977

(g) To provide for safe and natural areas and resources.

978

The legislative authority of a participating political	979
subdivision shall specify the consideration for such sale,	980
transfer, lease, or conveyance and any other terms thereof. Any	981
determinations made by a legislative authority of a participating	982
political subdivision under division (A)(5) of this section are	983
conclusive.	984

(B) A participating political subdivision or a nonprofit	985
corporation governing an energy special improvement district may	986
make any purchase, sale, transfer, lease, or conveyance of a	987
special energy improvement project without advertising, receipt of	988
bids, or other competitive bidding procedures applicable to the	989
participating political subdivision or the energy special	990
improvement district under Chapter 153. or 735. or section 1710.11	991
of the Revised Code or other representative provisions of the	992
Revised Code.	993

(C) Membership on the board of directors of the district is	994
not considered holding a public office. Directors and their	995
designees are entitled to the immunities provided by Chapter 1702.	996
and to the same immunity as an employee under division (A)(6) of	997
section 2744.03 of the Revised Code, except that directors and	998
their designees are not entitled to the indemnification provided	999
in section 2744.07 of the Revised Code unless the director or	1000
designee is an employee or official of a participating political	1001
subdivision of the district and is acting within the scope of the	1002
director's or designee's employment or official responsibilities.	1003

District officers and district members and directors and	1004
their designees or proxies are not required to file a statement	1005
with the Ohio ethics commission under section 102.02 of the	1006
Revised Code. All records of the district are public records under	1007
section 149.43 of the Revised Code, except that records of	1008
organizations contracting with a district are not public records	1009
under section 149.43 or section 149.431 of the Revised Code solely	1010
by reason of any contract with a district.	1011

Sec. 1710.26.  (A) Each owner of real property within an	1012
energy special improvement district created under sections 1710.20	1013
to 1710.28 of the Revised Code is a member of the energy special	1014
improvement district. The nonprofit corporation governing the	1015
district shall determine the identity and address of each owner	1016
for any particular action of the nonprofit corporation, including	1017
notice of meetings of the district, not more than sixty days prior	1018
to the date of the action, from the most current records available	1019
at the county auditor's office. For purposes of this section, the	1020
persons shown on such records as having common or joint ownership	1021
interests in a parcel of real property collectively constitute the	1022
owner of the real property. The articles of incorporation or the	1023
code of regulations governing the nonprofit corporation shall	1024
provide for the method by which notice for meetings of the	1025
membership of the energy special improvement district is given and	1026
the method for voting by the membership of the district.	1027

(B) A member may file a written statement with the district's	1028
secretary at least three days prior to any meeting of the entire	1029
membership of the district to appoint a proxy to carry out the	1030
member's rights and responsibilities under sections 1710.20 to	1031
1710.28 of the Revised Code at that meeting.	1032

(C) A member also may appoint a designee to carry out the	1033
member's rights and responsibilities under sections 1710.20 to	1034
1710.28 of the Revised Code by filing a written designation form	1035
with the district's secretary. This form shall include the name	1036
and address of the member, the name and address of the designee,	1037
and the expiration date, if any, of the designation and may	1038
authorize the designee to vote at any meeting of the district.	1039

(D) A proxy or designee need not be an elector or resident of	1040
any participating political subdivision of the district or a	1041
member of the district. A member may change the appointment of a	1042
proxy or a designee by filing a new form with the district's	1043
secretary. The most current form filed with the secretary is the	1044
valid appointment. Service of any notice upon a proxy or designee	1045
at the proxy's or designee's address as shown on that form	1046
satisfies any requirements for notification of the member.	1047

Sec. 1710.27.  The board of directors of the nonprofit	1048
corporation that governs an energy special improvement district	1049
created under sections 1710.20 to 1710.28 of the Revised Code may	1050
add additional territory to the district upon approval of a	1051
petition by one hundred per cent of the property owners of the	1052
additional territory and a plan that designates at least one	1053
special energy improvement project for each parcel of real	1054
property and that complies with section 1710.22 of the Revised	1055
Code.	1056

Sec. 1710.28.  A nonprofit corporation created for the	1057
purpose of governing an energy special improvement district	1058
created under sections 1710.20 to 1710.28 of the Revised Code may	1059
be dissolved not earlier than one year following the creation of	1060
the district if both of the following apply:	1061

(A) The petition of property owners or the plan submitted	1062
under section 1710.21 of the Revised Code authorized dissolution;	1063

(B) Sufficient provisions have been made to levy and collect	1064
special assessments to pay the costs of existing special energy	1065
improvement projects pursuant to a written agreement with a	1066
participating political subdivision.	1067

Upon dissolution of a nonprofit corporation that governs an	1068
energy special improvement district, the property owners shall	1069
succeed to all rights and responsibilities of the nonprofit	1070
corporation.	1071

Sec. 1710.29. On and after the effective date of this	1072
section, any energy special improvement district that, prior to	1073
the effective date of this section, was created under sections	1074
1710.01 to 1710.13 of the Revised Code for the purpose of	1075
developing and implementing plans for special energy improvement	1076
projects shall continue and shall be treated as though it was	1077
created under sections 1710.20 to 1710.28 of the Revised Code.	1078
Such a district shall hereafter be governed by the requirements of	1079
sections 1710.20 to 1710.28 of the Revised Code.	1080

Sec. 1710.30.  For the purpose of developing and implementing	1081
plans for special energy improvement projects on nonresidential	1082
property, a port authority may create an energy special	1083
improvement district. The port authority shall create the district	1084
in accordance with sections 1710.30 to 1710.37 of the Revised Code	1085
and shall ensure that all of the following apply to the district:	1086

(A) The district is governed either by the board of directors	1087
of the port authority or a nonprofit corporation organized under	1088
Chapter 1702. of the Revised Code acting through its board of	1089
directors.	1090

(B) The territory comprising the district is within the	1091
jurisdiction of the port authority, but may include territory	1092
within the boundaries of any one municipal corporation, any one	1093
township, or any combination of contiguous or noncontiguous	1094
municipal corporations or townships.	1095

(C) At least one special energy improvement project is	1096
designated for each parcel of real property within the district.	1097

Sec. 1710.31. In order to create an energy special	1098
improvement district under sections 1710.30 to 1710.37 of the	1099
Revised Code, the person or persons proposing the creation of the	1100
district shall submit to the board of directors of a port	1101
authority that has jurisdiction over the territory in which the	1102
proposed energy special improvement district is to be located both	1103
of the following:	1104

(A) A written plan for special energy improvement projects	1105
created in accordance with section 1710.32 of the Revised Code;	1106

(B) A petition for the creation of the district signed by one	1107
hundred per cent of the property owners within the proposed	1108
district.	1109

For purposes of compliance with division (B) of this section,	1110
the person or persons proposing creation of the district shall	1111
show the area of the district and the ownership of each parcel of	1112
property of the proposed district by reference to records that	1113
were available from each county recorder's office not more than	1114
sixty days prior to the submission of the petition. A petition	1115
submitted under division (B) of this section is in furtherance of	1116
the purposes set forth in Section 2o of Article VIII, Ohio	1117
Constitution.	1118

Sec. 1710.32.  (A) The person or persons proposing the	1119
creation of an energy special improvement district under sections	1120
1710.30 to 1710.37 of the Revised Code shall ensure that the plan	1121
required under section 1710.31 of the Revised Code includes both	1122
of the following:	1123

(1) A description of the proposed special energy improvement	1124
project or projects, including the cost of the proposed project or	1125
projects and a statement of which property or properties each	1126
project will benefit. The person or persons shall designate at	1127
least one special energy improvement project for each parcel of	1128
real property within the proposed district.	1129

(2) The method of assessment to be used and the time period	1130
during which the assessment will be levied.	1131

(B) The person or persons proposing the creation of an energy	1132
special improvement district under sections 1710.30 to 1710.37 of	1133
the Revised Code may include in the plan submitted under section	1134
1710.31 of the Revised Code provisions for the following:	1135

(1) Creating and operating the district and the nonprofit	1136
corporation, including hiring employees and professional services,	1137
contracting for insurance, and purchasing or leasing office space	1138
and office equipment and other requirements of the district;	1139

(2) Planning, designing, and implementing a plan, and paying	1140
the cost of any action taken in furtherance of the plan, including	1141
hiring architectural, engineering, legal, appraisal, insurance,	1142
consulting, energy auditing, and planning services;	1143

(3) Conducting court proceedings to carry out sections	1144
1710.30 to 1710.37 of the Revised Code;	1145

(4) Paying damages resulting from the provision of public	1146
improvements or public services and implementing a plan;	1147

(5) Paying the costs of issuing, paying interest on, and	1148
redeeming or refunding notes and bonds issued for the purpose of	1149
funding a plan;	1150

(6) Sale, lease, lease with an option to purchase, conveyance	1151
of other interests in, or other contracts for the acquisition,	1152
construction, maintenance, repair, furnishing, equipping,	1153
operation, or improvement of any special energy improvement	1154
project by the energy special improvement district, between a	1155
participating political subdivision and the district, and between	1156
the district and any owner of real property in the district on	1157
which a special energy improvement project has been acquired,	1158
installed, equipped, or improved;	1159

(7) Aggregating the renewable energy credits generated by one	1160
or more special energy improvement projects within a district,	1161
upon the consent of the owners of the credits and for the purpose	1162
of negotiating and completing the sale of such credits;	1163

(8) The addition of territory to the energy special	1164
improvement district;	1165

(9) Any other actions necessary to form, operate, or organize	1166
the energy special improvement district and, if applicable, the	1167
nonprofit corporation that will govern the energy special	1168
improvement district.	1169

Sec. 1710.33.  (A)(1) The board of directors of a port	1170
authority with which a petition and plan are filed under section	1171
1710.31 of the Revised Code may approve or disapprove of the plan	1172
and petition. If the board approves of the petition and plan, the	1173
board shall create an energy special improvement district. The	1174
board of directors of the port authority also shall determine	1175
whether the board will govern the district or whether the board	1176
will create a nonprofit corporation to govern the district.	1177

(2) If the board of directors of the port authority will	1178
govern the energy special improvement district, the board shall	1179
prepare bylaws for the energy special improvement district that	1180
include all of the following:	1181

(a) The name of the district;

1182

(b) A description of the territory within the district, which	1183
may include all or part of a municipal corporation or township	1184
within the jurisdiction of the port authority;	1185

(c) Procedures and requirements governing meetings on special	1186
energy improvement projects, including procedures governing the	1187
provision of notice regarding such meetings;	1188

(d) A provision governing the addition of territory to the	1189
district;	1190

(e) Provisions for the operation of the district, hiring	1191
employees and professional services, contracting for insurance,	1192
purchasing and leasing office space and office equipment, and	1193
other actions necessary to form, operate, or organize the	1194
district.	1195

(B) If the board of directors of the port authority creates a	1196
nonprofit corporation for the purpose of governing the energy	1197
special improvement district, the board shall prepare articles of	1198
incorporation for the nonprofit corporation. The board shall	1199
ensure that in addition to meeting the requirements for articles	1200
of incorporation set forth in Chapter 1702. of the Revised Code,	1201
the articles of incorporation provide all of the following:	1202

(1) The name for the district;

1203

(2) A description of the territory within the district, which	1204
may be all or part of each participating political subdivision;	1205

(3) A description of the procedure by which the articles of	1206
incorporation may be amended;	1207

(4) The reasons for creating the district and an explanation	1208
of how the district will be conducive to the public health,	1209
safety, peace, convenience, and welfare of the district.	1210

(C) The board of directors of the port authority shall	1211
provide notice to the property owners that submitted the petition	1212
and plan under section 1710.31 of the Revised Code and any	1213
participating political subdivision that is located within the	1214
energy special improvement district of the approval of the	1215
petition and the plan and the creation of an energy special	1216
improvement district. Along with the notice, the board shall	1217
provide the approved petition, the approved plan, and either the	1218
bylaws or the bylaws and the articles of incorporation, as	1219
applicable, that will dictate the governance of the district. The	1220
board shall include with the notice to the participating political	1221
subdivisions a statement of the responsibilities each	1222
participating political subdivision will assume if the political	1223
subdivision approves the petition and the plan.	1224

Sec. 1710.34.  (A) Each participating political subdivision	1225
that receives notice of the creation of an energy special	1226
improvement district under section 1710.34 of the Revised Code has	1227
sixty days to approve or disapprove, by resolution, the petition	1228
by the property owners, the plan for special energy improvement	1229
projects, and either the bylaws or the bylaws and the articles of	1230
incorporation, as applicable, that dictate the governance of the	1231
district. A copy of that resolution shall be filed in the	1232
secretary of state's office.	1233

This division does not prohibit or restrict the rights of	1234
municipal corporations under Article XVIII of the Ohio	1235
Constitution or the right of the municipal legislative authority	1236
to impose reasonable conditions in a resolution of approval. The	1237
acquisition, installation, equipping, and improvement of a special	1238
energy improvement project under this section shall not supersede	1239
any local zoning, environmental, or similar law or regulation.	1240

(B) If a participating political subdivision approves the	1241
petition, the plan, and either the bylaws or the bylaws and the	1242
articles of incorporation, as applicable, the participating	1243
political subdivision shall levy a special assessment on all real	1244
property in the energy special improvement district that is	1245
located within its boundaries to pay for the costs of the plan.	1246
The participating political subdivision shall levy the special	1247
assessment for not more than thirty years from the first day of	1248
the year in which the special assessment is first imposed. In the	1249
event that additional territory is added to the energy special	1250
improvement district, a participating political subdivision shall	1251
levy the special assessment with respect to such additional	1252
territory commencing not earlier than the date such territory is	1253
added and for not more than thirty years from the first day of the	1254
year in which the special assessment is first imposed.	1255

(C) For purposes of levying a special assessment for the	1256
plan, the special energy improvement projects included in the plan	1257
are deemed a special benefit to property owners within the energy	1258
special improvement district. The use of special assessments	1259
levied to benefit such property owners does not constitute	1260
expenditures made with public funds. The participating political	1261
subdivision shall levy the special assessment in accordance with	1262
Chapter 727. of the Revised Code except that:	1263

(1) The participating political subdivision may levy the	1264
assessment for each plan by any one or any combination of the	1265
methods of assessment listed in section 727.01 of the Revised	1266
Code, provided that the assessment is uniformly applied;	1267

(2) For purposes of levying an assessment, the participating	1268
political subdivision may combine one or more plans or parts of	1269
plans and levy a single assessment against specially benefited	1270
property;	1271

(3) For purposes of special assessments levied by a township	1272
under this section, references in Chapter 727. of the Revised Code	1273
to the municipal corporation are deemed to refer to the township,	1274
and references to the legislative authority of the municipal	1275
corporation are deemed to refer to the board of township trustees.	1276

(D) All applicable rights and privileges of a property owner	1277
that is assessed under Chapter 727. of the Revised Code are	1278
granted to a property owner assessed under this section, including	1279
those rights and privileges specified in sections 727.15 to 727.17	1280
and 727.18 to 727.22 of the Revised Code and the right to notice	1281
of the resolution of necessity and the filing of the estimated	1282
assessment under section 727.13 of the Revised Code. Property	1283
owners assessed for public services under this section have the	1284
same rights and privileges as property owners assessed for public	1285
improvements under this section.	1286

Sec. 1710.35.  (A) Each nonprofit corporation or port	1287
authority governing an energy special improvement district under	1288
sections 1710.30 to 1710.37 of the Revised Code may do the	1289
following:	1290

(1) Develop, adopt, revise, implement, and repeal plans for	1291
all or any part of the district;	1292

(2) Contract with any person, political subdivision as	1293
defined in section 2744.01 of the Revised Code, or state agency as	1294
defined in section 1.60 of the Revised Code to develop and	1295
implement plans for special energy improvement projects within the	1296
district;	1297

(3) Contract and pay for insurance for the district and for	1298
directors, officers, agents, contractors, employees, or members of	1299
the district for any consequences of the implementation of any	1300
plan adopted by the district or any actions of the district;	1301

(4) Act as an agent for and on behalf of a participating	1302
political subdivision in order to sell, transfer, lease, or convey	1303
any special energy improvement project owned by the political	1304
subdivision, provided that the legislative authority of the	1305
participating political subdivision determines that the project is	1306
not required to be exclusively owned by the political subdivision	1307
for its purposes, and provided that the sale is for any of the	1308
following purposes:	1309

(a) To promote the welfare of the people of such	1310
participating political subdivision;	1311

(b) To improve the quality of life and the general and	1312
economic well-being of the people of the participating political	1313
subdivision;	1314

(c) To better ensure the public health, safety, and welfare;

1315

(d) To protect water and other natural resources;

1316

(e) To provide for the conservation and preservation of	1317
natural and open areas and farmlands, including by making urban	1318
areas more desirable or suitable for development and	1319
revitalization;	1320

(f) To control, prevent, minimize, clean up, or mediate	1321
certain contamination of or pollution from lands in the state and	1322
water contamination or pollution; or	1323

(g) To provide for safe and natural areas and resources.

1324

The legislative authority of a participating political	1325
subdivision shall specify the consideration for such sale,	1326
transfer, lease, or conveyance and any other terms thereof. Any	1327
determinations made by a legislative authority of a participating	1328
political subdivision under division (A)(4) of this section are	1329
conclusive.	1330

(B) In addition to the actions authorized under division (A)	1331
of this section, a nonprofit corporation governing an energy	1332
special improvement district under sections 1710.30 to 1710.37 of	1333
the Revised Code may exercise all powers of nonprofit corporations	1334
granted under Chapter 1702. of the Revised Code, and a port	1335
authority governing an energy special improvement district under	1336
sections 1710.30 to 1710.37 of the Revised Code may exercise all	1337
applicable powers of port authorities granted under Chapter 4582.	1338
of the Revised Code that do not conflict with sections 1710.30 to	1339
1710.37 of the Revised Code.	1340

(C) A participating political subdivision, or a nonprofit	1341
corporation or port authority governing an energy special	1342
improvement district, may make any purchase, sale, transfer,	1343
lease, or conveyance of a special energy improvement project	1344
without advertising, receipt of bids, or other competitive bidding	1345
procedures applicable to the participating political subdivision	1346
or the energy special improvement district under Chapter 153. or	1347
735. or section 1710.11 of the Revised Code or other	1348
representative provisions of the Revised Code.	1349

(D) Membership on the board of directors of the district is	1350
not considered holding a public office. Directors and their	1351
designees are entitled to the immunities provided by Chapter 1702.	1352
and to the same immunity as an employee under division (A)(6) of	1353
section 2744.03 of the Revised Code, except that directors and	1354
their designees are not entitled to the indemnification provided	1355
in section 2744.07 of the Revised Code unless the director or	1356
designee is an employee or official of a participating political	1357
subdivision of the district and is acting within the scope of the	1358
director's or designee's employment or official responsibilities.	1359

District officers and district members and directors and	1360
their designees or proxies are not required to file a statement	1361
with the Ohio ethics commission under section 102.02 of the	1362
Revised Code. All records of the district are public records under	1363
section 149.43 of the Revised Code, except that records of	1364
organizations contracting with a district are not public records	1365
under section 149.43 or section 149.431 of the Revised Code solely	1366
by reason of any contract with a district.	1367

Sec. 1710.36.  (A) Each owner of real property within an	1368
energy special improvement district created under sections 1710.30	1369
to 1710.37 of the Revised Code is a member of the energy special	1370
improvement district. The port authority or nonprofit corporation	1371
governing the district shall determine the identity and address of	1372
each owner for any particular action of the port authority or	1373
nonprofit corporation, including notice of meetings of the	1374
district, not more than sixty days prior to the date of the	1375
action, from the most current records available at the county	1376
auditor's office. For purposes of this section, the persons shown	1377
on such records as having common or joint ownership interests in a	1378
parcel of real property collectively constitute the owner of the	1379
real property. The articles of incorporation or the code of	1380
regulations governing the nonprofit corporation, or the bylaws of	1381
the energy special improvement district, shall provide for the	1382
method by which notice for meetings of the membership of the	1383
district is to be given and the method for voting by the	1384
membership of the district.	1385

(B) A member may file a written statement with the district's	1386
secretary at least three days prior to any meeting of the entire	1387
membership of the district to appoint a proxy to carry out the	1388
member's rights and responsibilities under sections 1710.30 to	1389
1710.37 of the Revised Code at that meeting.	1390

(C) A member also may appoint a designee to carry out the	1391
member's rights and responsibilities under sections 1710.30 to	1392
1710.37 of the Revised Code by filing a written designation form	1393
with the district's secretary. This form shall include the name	1394
and address of the member, the name and address of the designee,	1395
and the expiration date, if any, of the designation and may	1396
authorize the designee to vote at any meeting of the district.	1397

(D) A proxy or designee need not be an elector or resident of	1398
any participating political subdivision of the district or a	1399
member of the district. A member may change the appointment of a	1400
proxy or a designee by filing a new form with the district's	1401
secretary. The most current form filed with the secretary is the	1402
valid appointment. Service of any notice upon a proxy or designee	1403
at the proxy's or designee's address as shown on that form	1404
satisfies any requirements for notification of the member.	1405

Sec. 1710.37.  The board of directors of the port authority	1406
or the nonprofit corporation that governs an energy special	1407
improvement district created under sections 1710.30 to 3710.37 of	1408
the Revised Code may add additional territory to the district upon	1409
approval of a petition by one hundred per cent of the property	1410
owners of the additional territory and a plan that designates at	1411
least one special energy improvement project for each parcel of	1412
real property and that complies with section 1710.32 of the	1413
Revised Code.	1414

Sec. 1710.061.        Sec. 1710.40.  (A) Except as provided in division	1415
(B) of this section, an electric distribution utility may count	1416
toward its compliance with the energy efficiency and peak demand	1417
reduction requirements of section 4928.66 of the Revised Code any	1418
efficiency savings or reduction in demand produced by a special	1419
energy improvement project located in its certified territory.	1420

(B) A mercantile customer that realizes energy efficiency	1421
savings or reduction in demand produced by a special energy	1422
improvement project that it owns may elect to commit the savings	1423
or reduction to the electric distribution utility in exchange for	1424
an exemption from an energy efficiency cost recovery mechanism	1425
permitted under section 4928.66 of the Revised Code, approved by	1426
the public utilities commission.	1427

(C) The board of directors of aan energy special improvement	1428
district shall submit a quarterly report to the electric	1429
distribution utility that includes, but is not limited to, both of	1430
the following:	1431

(1) The total number and a description of each new and	1432
ongoing special energy improvement project located within the	1433
energy special improvement district that produces energy	1434
efficiency savings or reduction in demand;	1435

(2) Any additional information that the electric distribution	1436
utility needs in order to obtain credit under section 4928.66 of	1437
the Revised Code for energy efficiency savings or reduction in	1438
demand from such projects.	1439

Sec. 4582.06.  (A) A port authority created in accordance	1440
with section 4582.02 of the Revised Code may:	1441

(1) Acquire, construct, furnish, equip, maintain, repair,	1442
sell, exchange, lease to or from, lease with an option to	1443
purchase, convey other interests in, or operate real or personal	1444
property, or any combination thereof, related to, useful for, or	1445
in furtherance of any authorized purpose, and make charges for the	1446
use of any port authority facility, which shall be not less than	1447
the charges established for the same services furnished by a	1448
public utility or common carrier in the jurisdiction of the	1449
particular port authority;	1450

(2) Straighten, deepen, and improve any canal, channel,	1451
river, stream, or other water course or way that may be necessary	1452
or proper in the development of the facilities of the port	1453
authority;	1454

(3) Issue bonds or notes for the acquisition, construction,	1455
furnishing, or equipping of any real or personal property, or any	1456
combination thereof, related to, useful for, or in furtherance of	1457
any authorized purpose, in compliance with Chapter 133. of the	1458
Revised Code, except that the bonds or notes only may be issued	1459
pursuant to a vote of the electors residing within the territory	1460
of the port authority. The net indebtedness incurred by a port	1461
authority shall never exceed two per cent of the total value of	1462
all property within the territory comprising the authority as	1463
listed and assessed for taxation.	1464

(4) By resolution of its board of directors, issue revenue	1465
bonds beyond the limit of bonded indebtedness provided by law, for	1466
the acquisition, construction, furnishing, or equipping of any	1467
real or personal property, or any combination thereof, related to,	1468
useful for, or in furtherance of any authorized purpose, including	1469
all costs in connection with or incidental thereto.	1470

The revenue bonds of the port authority shall be secured only	1471
by a pledge of and a lien on the revenues of the port authority	1472
derived from those loan payments, rentals, fees, charges, or other	1473
revenues that are designated in the resolution, including, but not	1474
limited to, any property to be acquired, constructed, furnished,	1475
or equipped with the proceeds of the bond issue, after provision	1476
only for the reasonable cost of operating, maintaining, and	1477
repairing the property of the port authority so designated. The	1478
bonds may further be secured by the covenant of the port authority	1479
to maintain rates or charges that will produce revenues sufficient	1480
to meet the costs of operating, maintaining, and repairing such	1481
property and to meet the interest and principal requirements of	1482
the bonds and to establish and maintain reserves for the foregoing	1483
purposes. The board of directors, by resolution, may provide for	1484
the issuance of additional revenue bonds from time to time, to be	1485
secured equally and ratably, without preference, priority, or	1486
distinction, with outstanding revenue bonds, but subject to the	1487
terms and limitations of any trust agreement described in this	1488
section, and of any resolution authorizing bonds then outstanding.	1489
The board of directors, by resolution, may designate additional	1490
property of the port authority, the revenues of which shall be	1491
pledged and be subject to a lien for the payment of the debt	1492
charges on revenue bonds theretofore authorized by resolution of	1493
the board of directors, to the same extent as the revenues above	1494
described.	1495

In the discretion of the board of directors, the revenue	1496
bonds of the port authority may be secured by a trust agreement	1497
between the board of directors on behalf of the port authority and	1498
a corporate trustee, that may be any trust company or bank having	1499
powers of a trust company, within or without the state.	1500

The trust agreement may provide for the pledge or assignment	1501
of the revenues to be received, but shall not pledge the general	1502
credit and taxing power of the port authority. A trust agreement	1503
securing revenue bonds issued to acquire, construct, furnish, or	1504
equip real property, plants, factories, offices, and other	1505
structures and facilities for authorized purposes consistent with	1506
Section 13 or 16 of Article VIII, Ohio Constitution, may mortgage	1507
the real or personal property, or a combination thereof, to be	1508
acquired, constructed, furnished, or equipped from the proceeds of	1509
such revenue bonds, as further security for the bonds. The trust	1510
agreement or the resolution providing for the issuance of revenue	1511
bonds may set forth the rights and remedies of the bondholders and	1512
trustee, and may contain other provisions for protecting and	1513
enforcing their rights and remedies that are determined in the	1514
discretion of the board of directors to be reasonable and proper.	1515
The agreement or resolution may provide for the custody,	1516
investment, and disbursement of all moneys derived from the sale	1517
of such bonds, or from the revenues of the port authority, other	1518
than those moneys received from taxes levied pursuant to section	1519
4582.14 of the Revised Code, and may provide for the deposit of	1520
such funds without regard to section 4582.15 of the Revised Code.	1521

All bonds issued under authority of this chapter, regardless	1522
of form or terms and regardless of any other law to the contrary,	1523
shall have all qualities and incidents of negotiable instruments,	1524
subject to provisions for registration, and may be issued in	1525
coupon, fully registered, or other form, or any combination	1526
thereof, as the board of directors determines. Provision may be	1527
made for the registration of any coupon bonds as to principal	1528
alone or as to both principal and interest, and for the conversion	1529
into coupon bonds of any fully registered bonds or bonds	1530
registered as to both principal and interest.	1531

The revenue bonds shall bear interest at such rate or rates,	1532
shall bear such date or dates, and shall mature within forty-five	1533
years following the date of issuance and in such amount, at such	1534
time or times, and in such number of installments, as may be	1535
provided in or pursuant to the resolution authorizing their	1536
issuance. The final maturity of any original issue of revenue	1537
bonds shall not be later than forty-five years from their date of	1538
issue. Such resolution also shall provide for the execution of the	1539
bonds, which may be by facsimile signatures unless prohibited by	1540
the resolution, and the manner of sale of the bonds. The	1541
resolution shall provide for, or provide for the determination of,	1542
any other terms and conditions relative to the issuance, sale, and	1543
retirement of the bonds that the board of directors in its	1544
discretion determines to be reasonable and proper.	1545

Whenever a port authority considers it expedient, it may	1546
issue renewal notes and refund any bonds, whether the bonds to be	1547
refunded have or have not matured. The final maturity of any	1548
notes, including any renewal notes, shall not be later than five	1549
years from the date of issue of the original issue of notes. The	1550
final maturity of any refunding bonds shall not be later than the	1551
later of forty-five years from the date of issue of the original	1552
issue of bonds. The refunding bonds shall be sold and the proceeds	1553
applied to the purchase, redemption, or payment of the bonds to be	1554
refunded and the costs of issuance of the refunding bonds. The	1555
bonds and notes issued under this chapter, their transfer, and the	1556
income therefrom, shall at all times be free from taxation within	1557
the state.	1558

(5) Do any of the following, in regard to any interests in	1559
any real or personal property, or any combination thereof,	1560
including, without limitation, machinery, equipment, plants,	1561
factories, offices, and other structures and facilities related	1562
to, useful for, or in furtherance of any authorized purpose, for	1563
such consideration and in such manner, consistent with Article	1564
VIII, Ohio Constitution, as the board in its sole discretion may	1565
determine:	1566

(a) Loan moneys to any person or governmental entity for the	1567
acquisition, construction, furnishing, and equipping of the	1568
property;	1569

(b) Acquire, construct, maintain, repair, furnish, and equip	1570
the property;	1571

(c) Sell to, exchange with, lease, convey other interests in,	1572
or lease with an option to purchase the same or any lesser	1573
interest in the property to the same or any other person or	1574
governmental entity;	1575

(d) Guarantee the obligations of any person or governmental	1576
entity.	1577

A port authority may accept and hold as consideration for the	1578
conveyance of property or any interest therein such property or	1579
interests therein as the board in its discretion may determine,	1580
notwithstanding any restrictions that apply to the investment of	1581
funds by a port authority.	1582

(6) Construct, maintain, repair, furnish, equip, sell,	1583
exchange, lease, or lease with an option to purchase, any property	1584
that it is authorized to acquire. A port authority that is subject	1585
to this section also may operate any property in connection with	1586
transportation, recreational, governmental operations, or cultural	1587
activities.	1588

(a) Any purchase, exchange, sale, lease, lease with an option	1589
to purchase, conveyance of other interests in, or other contract	1590
with a person or governmental entity that pertains to the	1591
acquisition, construction, maintenance, repair, furnishing,	1592
equipping, or operation of any real or personal property, or any	1593
combination thereof, related to, useful for, or in furtherance of	1594
an activity contemplated by Section 13 or 16 of Article VIII, Ohio	1595
Constitution, shall be made in such manner and subject to such	1596
terms and conditions as may be determined by the board of	1597
directors in its discretion.	1598

(b) Division (A)(6)(a) of this section applies to all	1599
contracts that are subject to the division, notwithstanding any	1600
other provision of law that might otherwise apply, including,	1601
without limitation, any requirement of notice, any requirement of	1602
competitive bidding or selection, or any requirement for the	1603
provision of security.	1604

(c) Divisions (A)(6)(a) and (b) of this section do not apply	1605
to either of the following:	1606

(i) Any contract secured by or to be paid from moneys raised	1607
by taxation or the proceeds of obligations secured by a pledge of	1608
moneys raised by taxation;	1609

(ii) Any contract secured exclusively by or to be paid	1610
exclusively from the general revenues of the port authority. For	1611
the purposes of this section, any revenues derived by the port	1612
authority under a lease or other agreement that, by its terms,	1613
contemplates the use of amounts payable under the agreement either	1614
to pay the costs of the improvement that is the subject of the	1615
contract or to secure obligations of the port authority issued to	1616
finance costs of such improvement, are excluded from general	1617
revenues.	1618

(7) Apply to the proper authorities of the United States	1619
pursuant to appropriate law for the right to establish, operate,	1620
and maintain foreign trade zones and to establish, operate, and	1621
maintain foreign trade zones; and to acquire land or property	1622
therefor, in a manner consistent with section 4582.17 of the	1623
Revised Code;	1624

(8) Exercise the right of eminent domain to appropriate any	1625
land, rights, rights-of-way, franchises, easements, or other	1626
property, necessary or proper for any authorized purpose, pursuant	1627
to the procedure provided in sections 163.01 to 163.22 of the	1628
Revised Code, if funds equal to the appraised value of the	1629
property to be acquired as a result of such proceedings are	1630
available for that purpose, except that nothing contained in	1631
sections 4582.01 to 4582.20 of the Revised Code shall authorize a	1632
port authority to take or disturb property or facilities belonging	1633
to any agency or political subdivision of this state, public	1634
utility, or common carrier, which property or facilities are	1635
necessary and convenient in the operation of the agency or	1636
political subdivision, public utility, or common carrier, unless	1637
provision is made for the restoration, relocation, or duplication	1638
of the property or facilities, or upon the election of the agency	1639
or political subdivision, public utility, or common carrier, for	1640
the payment of compensation, if any, at the sole cost of the port	1641
authority, provided that:	1642

(a) If any restoration or duplication proposed to be made	1643
pursuant to this section involves a relocation of such property or	1644
facilities, the new facilities and location shall be of at least	1645
comparable utilitarian value and effectiveness, and the relocation	1646
shall not impair the ability of the public utility or common	1647
carrier to compete in its original area of operation.	1648

(b) If any restoration or duplication made pursuant to this	1649
section involves a relocation of such property or facilities, the	1650
port authority shall acquire no interest or right in or to the	1651
appropriated property or facilities, except as provided in	1652
division (A)(11) of this section, until the relocated property or	1653
facilities are available for use and until marketable title	1654
thereto has been transferred to the public utility or common	1655
carrier.	1656

(c) Provisions for restoration or duplication shall be	1657
described in detail in the resolution for appropriation passed by	1658
the port authority.	1659

(9) Enjoy and possess the same rights, privileges, and powers	1660
granted municipal corporations under sections 721.04 to 721.11 of	1661
the Revised Code;	1662

(10) Maintain such funds as it considers necessary;

1663

(11) Direct its agents or employees, when properly identified	1664
in writing, and after at least five days' written notice, to enter	1665
upon lands within the confines of its jurisdiction in order to	1666
make surveys and examinations preliminary to location and	1667
construction of works for the purposes of the port authority,	1668
without liability of the port authority or its agents or employees	1669
except for actual damage done;	1670

(12) Sell, lease, or convey other interests in real and	1671
personal property and grant easements or rights-of-way over	1672
property of the port authority. The board of directors shall	1673
specify the consideration and any terms thereof for the sale,	1674
lease, or conveyance of other interests in real and personal	1675
property. Any determinations made by the board of directors under	1676
this division shall be conclusive. The sale, lease, or conveyance	1677
may be made without advertising and the receipt of bids.	1678

(13) Promote, advertise, and publicize the port authority	1679
facilities and its authorized purposes, provide information to	1680
persons with an interest in transportation and other port	1681
authority activities, and appear before rate-making authorities to	1682
represent and promote the interests of the port authority and its	1683
authorized purposes;	1684

(14) Adopt rules, not in conflict with general law, governing	1685
the use of and the safeguarding of its property, grounds,	1686
buildings, equipment, and facilities, safeguarding persons and	1687
their property located on or in port authority property, and	1688
governing the conduct of its employees and the public, in order to	1689
promote the public safety and convenience in and about its	1690
terminals and grounds, and to maintain order. Any such regulation	1691
shall be posted at no less than five public places in the port	1692
authority, as determined by the board of directors, for a period	1693
of not fewer than fifteen days, and shall be available for public	1694
inspection at the principal office of the port authority during	1695
regular business hours. No person shall violate any lawful	1696
regulation adopted and posted as provided in this division.	1697

(15) Do all acts necessary or appropriate to carry out its	1698
authorized purposes. The port authority shall have the powers and	1699
rights granted to other subdivisions under section 9.20 of the	1700
Revised Code.	1701

(16) Develop and implement plans for special energy	1702
improvement projects and create and govern energy special	1703
improvement districts in accordance with sections 1710.30 to	1704
1710.37 of the Revised Code.	1705

(B) Any instrument by which real property is acquired	1706
pursuant to this section shall identify the agency of the state	1707
that has the use and benefit of the real property as specified in	1708
section 5301.012 of the Revised Code.	1709

(C) Whoever violates division (A)(14) of this section is	1710
guilty of a minor misdemeanor.	1711

Sec. 4582.31.  (A) A port authority created in accordance	1712
with section 4582.22 of the Revised Code may:	1713

(1) Adopt bylaws for the regulation of its affairs and the	1714
conduct of its business;	1715

(2) Adopt an official seal;

1716

(3) Maintain a principal office within its jurisdiction, and	1717
maintain such branch offices as it may require;	1718

(4) Acquire, construct, furnish, equip, maintain, repair,	1719
sell, exchange, lease to or from, or lease with an option to	1720
purchase, convey other interests in real or personal property, or	1721
any combination thereof, related to, useful for, or in furtherance	1722
of any authorized purpose and operate any property in connection	1723
with transportation, recreational, governmental operations, or	1724
cultural activities;	1725

(5) Straighten, deepen, and improve any channel, river,	1726
stream, or other water course or way which may be necessary or	1727
proper in the development of the facilities of a port authority;	1728

(6) Make available the use or services of any port authority	1729
facility to one or more persons, one or more governmental	1730
agencies, or any combination thereof;	1731

(7) Issue bonds or notes for the acquisition, construction,	1732
furnishing, or equipping of any port authority facility or other	1733
permanent improvement that a port authority is authorized to	1734
acquire, construct, furnish, or equip, in compliance with Chapter	1735
133. of the Revised Code, except that such bonds or notes may only	1736
be issued pursuant to a vote of the electors residing within the	1737
area of jurisdiction of the port authority. The net indebtedness	1738
incurred by a port authority shall never exceed two per cent of	1739
the total value of all property within the territory comprising	1740
the port authority as listed and assessed for taxation.	1741

(8) Issue port authority revenue bonds beyond the limit of	1742
bonded indebtedness provided by law, payable solely from revenues	1743
as provided in section 4582.48 of the Revised Code, for the	1744
purpose of providing funds to pay the costs of any port authority	1745
facility or facilities or parts thereof;	1746

(9) Apply to the proper authorities of the United States	1747
pursuant to appropriate law for the right to establish, operate,	1748
and maintain foreign trade zones and establish, operate, and	1749
maintain foreign trade zones and to acquire, exchange, sell, lease	1750
to or from, lease with an option to purchase, or operate	1751
facilities, land, or property therefor in accordance with the	1752
"Foreign Trade Zones Act," 48 Stat. 998 (1934), 19 U.S.C. 81a to	1753
81u;	1754

(10) Enjoy and possess the same rights, privileges, and	1755
powers granted municipal corporations under sections 721.04 to	1756
721.11 of the Revised Code;	1757

(11) Maintain such funds as it considers necessary;

1758

(12) Direct its agents or employees, when properly identified	1759
in writing, and after at least five days' written notice, to enter	1760
upon lands within the confines of its jurisdiction in order to	1761
make surveys and examinations preliminary to location and	1762
construction of works for the purposes of the port authority,	1763
without liability of the port authority or its agents or employees	1764
except for actual damage done;	1765

(13) Promote, advertise, and publicize the port authority and	1766
its facilities; provide information to shippers and other	1767
commercial interests; and appear before rate-making authorities to	1768
represent and promote the interests of the port authority;	1769

(14) Adopt rules, not in conflict with general law, it finds	1770
necessary or incidental to the performance of its duties and the	1771
execution of its powers under sections 4582.21 to 4582.54 of the	1772
Revised Code. Any such rule shall be posted at no less than five	1773
public places in the port authority, as determined by the board of	1774
directors, for a period of not fewer than fifteen days, and shall	1775
be available for public inspection at the principal office of the	1776
port authority during regular business hours. No person shall	1777
violate any lawful rule adopted and posted as provided in this	1778
division.	1779

(15) Do any of the following, in regard to any interests in	1780
any real or personal property, or any combination thereof,	1781
including, without limitation, machinery, equipment, plants,	1782
factories, offices, and other structures and facilities related	1783
to, useful for, or in furtherance of any authorized purpose, for	1784
such consideration and in such manner, consistent with Article	1785
VIII of the Ohio Constitution, as the board in its sole discretion	1786
may determine:	1787

(a) Loan moneys to any person or governmental entity for the	1788
acquisition, construction, furnishing, and equipping of the	1789
property;	1790

(b) Acquire, construct, maintain, repair, furnish, and equip	1791
the property;	1792

(c) Sell to, exchange with, lease, convey other interests in,	1793
or lease with an option to purchase the same or any lesser	1794
interest in the property to the same or any other person or	1795
governmental entity;	1796

(d) Guarantee the obligations of any person or governmental	1797
entity.	1798

A port authority may accept and hold as consideration for the	1799
conveyance of property or any interest therein such property or	1800
interests therein as the board in its discretion may determine,	1801
notwithstanding any restrictions that apply to the investment of	1802
funds by a port authority.	1803

(16) Sell, lease, or convey other interests in real and	1804
personal property, and grant easements or rights-of-way over	1805
property of the port authority. The board of directors shall	1806
specify the consideration and any terms for the sale, lease, or	1807
conveyance of other interests in real and personal property. Any	1808
determination made by the board under this division shall be	1809
conclusive. The sale, lease, or conveyance may be made without	1810
advertising and the receipt of bids.	1811

(17) Exercise the right of eminent domain to appropriate any	1812
land, rights, rights-of-way, franchises, easements, or other	1813
property, necessary or proper for any authorized purpose, pursuant	1814
to the procedure provided in sections 163.01 to 163.22 of the	1815
Revised Code, if funds equal to the appraised value of the	1816
property to be acquired as a result of such proceedings are	1817
available for that purpose. However, nothing contained in sections	1818
4582.201 to 4582.59 of the Revised Code shall authorize a port	1819
authority to take or disturb property or facilities belonging to	1820
any agency or political subdivision of this state, public utility,	1821
cable operator, or common carrier, which property or facilities	1822
are necessary and convenient in the operation of the agency or	1823
political subdivision, public utility, cable operator, or common	1824
carrier, unless provision is made for the restoration, relocation,	1825
or duplication of such property or facilities, or upon the	1826
election of the agency or political subdivision, public utility,	1827
cable operator, or common carrier, for the payment of	1828
compensation, if any, at the sole cost of the port authority,	1829
provided that:	1830

(a) If any restoration or duplication proposed to be made	1831
under this section involves a relocation of the property or	1832
facilities, the new facilities and location shall be of at least	1833
comparable utilitarian value and effectiveness and shall not	1834
impair the ability of the public utility, cable operator, or	1835
common carrier to compete in its original area of operation;	1836

(b) If any restoration or duplication made under this section	1837
involves a relocation of the property or facilities, the port	1838
authority shall acquire no interest or right in or to the	1839
appropriated property or facilities, except as provided in	1840
division (A)(15) of this section, until the relocated property or	1841
facilities are available for use and until marketable title	1842
thereto has been transferred to the public utility, cable	1843
operator, or common carrier.	1844

As used in division (A)(17) of this section, "cable operator"	1845
has the same meaning as in the "Cable Communications Policy Act of	1846
1984," Pub. L. No. 98-549, 98 Stat. 2780, 47 U.S.C. 522, as	1847
amended by the "Telecommunications Act of 1996," Pub. L. No.	1848
104-104, 110 Stat. 56.	1849

(18)(a) Make and enter into all contracts and agreements and	1850
execute all instruments necessary or incidental to the performance	1851
of its duties and the execution of its powers under sections	1852
4582.21 to 4582.59 of the Revised Code.	1853

(b)(i) Except as provided in division (A)(18)(c) of this	1854
section or except when the port authority elects to construct a	1855
building, structure, or other improvement pursuant to a contract	1856
made with a construction manager at risk under sections 9.33 to	1857
9.335 of the Revised Code or with a design-build firm under	1858
section 153.65 to 153.73 of the Revised Code, when the cost of a	1859
contract for the construction of any building, structure, or other	1860
improvement undertaken by a port authority involves an expenditure	1861
exceeding the higher of one hundred thousand dollars or the amount	1862
as adjusted under division (A)(18)(b)(ii) of this section, and the	1863
port authority is the contracting entity, the port authority shall	1864
make a written contract after notice calling for bids for the	1865
award of the contract has been given by publication twice, with at	1866
least seven days between publications, in a newspaper of general	1867
circulation in the area of the port authority or as provided in	1868
section 7.16 of the Revised Code. Each such contract shall be let	1869
to the lowest responsive and responsible bidder in accordance with	1870
section 9.312 of the Revised Code. Every contract shall be	1871
accompanied by or shall refer to plans and specifications for the	1872
work to be done, prepared for and approved by the port authority,	1873
signed by an authorized officer of the port authority and by the	1874
contractor, and shall be executed in triplicate.	1875

Each bid shall be awarded in accordance with sections 153.54,	1876
153.57, and 153.571 of the Revised Code. The port authority may	1877
reject any and all bids.	1878

(ii) On January 1, 2012, and the first day of January of	1879
every even-numbered year thereafter, the director of commerce	1880
shall adjust the threshold level for contracts subject to the	1881
bidding requirements contained in division (A)(18)(b)(i) of this	1882
section. The director shall adjust this amount according to the	1883
average increase for each of the two years immediately preceding	1884
the adjustment as set forth in the producer price index for	1885
material and supply inputs for new nonresidential construction as	1886
determined by the bureau of labor statistics of the United States	1887
department of labor or, if that index no longer is published, a	1888
generally available comparable index. If there is no resulting	1889
increase, the threshold shall remain the same until the next	1890
scheduled adjustment on the first day of January of the next	1891
even-numbered year.	1892

(c) The board of directors by rule may provide criteria for	1893
the negotiation and award without competitive bidding of any	1894
contract as to which the port authority is the contracting entity	1895
for the construction of any building or structure or other	1896
improvement under any of the following circumstances:	1897

(i) There exists a real and present emergency that threatens	1898
damage or injury to persons or property of the port authority or	1899
other persons, provided that a statement specifying the nature of	1900
the emergency that is the basis for the negotiation and award of a	1901
contract without competitive bidding shall be signed by the	1902
officer of the port authority that executes that contract at the	1903
time of the contract's execution and shall be attached to the	1904
contract.	1905

(ii) A commonly recognized industry or other standard or	1906
specification does not exist and cannot objectively be articulated	1907
for the improvement.	1908

(iii) The contract is for any energy conservation measure as	1909
defined in section 307.041 of the Revised Code.	1910

(iv) With respect to material to be incorporated into the	1911
improvement, only a single source or supplier exists for the	1912
material.	1913

(v) A single bid is received by the port authority after	1914
complying with the provisions of division (A)(18)(b) of this	1915
section.	1916

(d)(i) If a contract is to be negotiated and awarded without	1917
competitive bidding for the reason set forth in division	1918
(A)(18)(c)(ii) of this section, the port authority shall publish a	1919
notice calling for technical proposals twice, with at least seven	1920
days between publications, in a newspaper of general circulation	1921
in the area of the port authority or as provided in section 7.16	1922
of the Revised Code. After receipt of the technical proposals, the	1923
port authority may negotiate with and award a contract for the	1924
improvement to the proposer making the proposal considered to be	1925
the most advantageous to the port authority.	1926

(ii) If a contract is to be negotiated and awarded without	1927
competitive bidding for the reason set forth in division	1928
(A)(18)(c)(iv) of this section, any construction activities	1929
related to the incorporation of the material into the improvement	1930
also may be provided without competitive bidding by the source or	1931
supplier of that material.	1932

(e)(i) Any purchase, exchange, sale, lease, lease with an	1933
option to purchase, conveyance of other interests in, or other	1934
contract with a person or governmental entity that pertains to the	1935
acquisition, construction, maintenance, repair, furnishing,	1936
equipping, or operation of any real or personal property, or any	1937
combination thereof, related to, useful for, or in furtherance of	1938
an activity contemplated by Section 13 or 16 of Article VIII, Ohio	1939
Constitution, shall be made in such manner and subject to such	1940
terms and conditions as may be determined by the board of	1941
directors in its discretion.	1942

(ii) Division (A)(18)(e)(i) of this section applies to all	1943
contracts that are subject to the division, notwithstanding any	1944
other provision of law that might otherwise apply, including,	1945
without limitation, any requirement of notice, any requirement of	1946
competitive bidding or selection, or any requirement for the	1947
provision of security.	1948

(iii) Divisions (A)(18)(e)(i) and (ii) of this section do not	1949
apply to either of the following: any contract secured by or to be	1950
paid from moneys raised by taxation or the proceeds of obligations	1951
secured by a pledge of moneys raised by taxation; or any contract	1952
secured exclusively by or to be paid exclusively from the general	1953
revenues of the port authority. For the purposes of this section,	1954
any revenues derived by the port authority under a lease or other	1955
agreement that, by its terms, contemplates the use of amounts	1956
payable under the agreement either to pay the costs of the	1957
improvement that is the subject of the contract or to secure	1958
obligations of the port authority issued to finance costs of such	1959
improvement, are excluded from general revenues.	1960

(19) Employ managers, superintendents, and other employees	1961
and retain or contract with consulting engineers, financial	1962
consultants, accounting experts, architects, attorneys, and any	1963
other consultants and independent contractors as are necessary in	1964
its judgment to carry out this chapter, and fix the compensation	1965
thereof. All expenses thereof shall be payable from any available	1966
funds of the port authority or from funds appropriated for that	1967
purpose by a political subdivision creating or participating in	1968
the creation of the port authority.	1969

(20) Receive and accept from any state or federal agency	1970
grants and loans for or in aid of the construction of any port	1971
authority facility or for research and development with respect to	1972
port authority facilities, and receive and accept aid or	1973
contributions from any source of money, property, labor, or other	1974
things of value, to be held, used, and applied only for the	1975
purposes for which the grants and contributions are made;	1976

(21) Engage in research and development with respect to port	1977
authority facilities;	1978

(22) Purchase fire and extended coverage and liability	1979
insurance for any port authority facility and for the principal	1980
office and branch offices of the port authority, insurance	1981
protecting the port authority and its officers and employees	1982
against liability for damage to property or injury to or death of	1983
persons arising from its operations, and any other insurance the	1984
port authority may agree to provide under any resolution	1985
authorizing its port authority revenue bonds or in any trust	1986
agreement securing the same;	1987

(23) Charge, alter, and collect rentals and other charges for	1988
the use or services of any port authority facility as provided in	1989
section 4582.43 of the Revised Code;	1990

(24) Provide coverage for its employees under Chapters 145.,	1991
4123., and 4141. of the Revised Code;	1992

(25) Do all acts necessary or proper to carry out the powers	1993
expressly granted in sections 4582.21 to 4582.59 of the Revised	1994
Code.	1995

(26) Develop and implement plans for special energy	1996
improvement projects and create and govern energy special	1997
improvement districts in accordance with sections 1710.30 to	1998
1710.37 of the Revised Code.	1999

(B) Any instrument by which real property is acquired	2000
pursuant to this section shall identify the agency of the state	2001
that has the use and benefit of the real property as specified in	2002
section 5301.012 of the Revised Code.	2003

(C) Whoever violates division (A)(14) of this section is	2004
guilty of a minor misdemeanor.	2005

Section 2.  That existing sections 1710.01, 1710.02,	2006
1710.021, 1710.03, 1710.04, 1710.05, 1710.06, 1710.061, 1710.07,	2007
1710.11, 1710.12, 1710.13, 4582.06, and 4582.31 of the Revised	2008
Code are hereby repealed.	2009