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To enact section 307.933 of the Revised Code to | 1 |
authorize a corrections commission of a | 2 |
multicounty, municipal-county, or | 3 |
multicounty-municipal correctional center to issue | 4 |
securities of the commission to pay the costs | 5 |
associated with certain improvements of the | 6 |
center. | 7 |
Section 1. That section 307.933 of the Revised Code be | 8 |
enacted to read as follows: | 9 |
Sec. 307.933. (A) A corrections commission formed under | 10 |
section 307.93 of the Revised Code may issue securities of the | 11 |
commission, in an amount determined by the commission, to pay for | 12 |
all or part of the cost of the acquisition, construction, | 13 |
enlargement, modification, or repair of any improvements for a | 14 |
multicounty, municipal-county, or multicounty-municipal | 15 |
correctional center that is provided for in section 307.93 of the | 16 |
Revised Code and for which a county may issue securities under | 17 |
section 133.15 of the Revised Code. | 18 |
(B) The commission may issue securities of the commission to | 19 |
fund or refund the securities issued under division (A) of this | 20 |
section. The commission may also issue securities of the | 21 |
commission in anticipation of the proceeds of the securities | 22 |
issued pursuant to this section. | 23 |
(C) Securities issued under this section, including | 24 |
securities issued to fund or refund securities issued under this | 25 |
section and securities issued in anticipation of the proceeds of | 26 |
the securities to be issued under this section, shall be subject | 27 |
to the maximum maturity requirements provided in division (B) or | 28 |
(C) of section 133.20 of the Revised Code. The fiscal agent of the | 29 |
commission shall serve as its fiscal officer for purposes of | 30 |
division (C) of section 133.20 of the Revised Code. | 31 |
(D) The securities issued under this section shall not | 32 |
constitute general obligations of the commission or a county or | 33 |
municipal corporation that has contracted for the creation of a | 34 |
center, and the general credit or taxing power of a contracting | 35 |
county or municipal corporation shall not be pledged for payment | 36 |
of any part of the principal of or interest on these securities. | 37 |
The holder or owner of securities issued under this section shall | 38 |
have no right to have money raised by taxation by a county or | 39 |
municipal corporation that has contracted for the creation of a | 40 |
center obligated or pledged, and money so raised shall not be | 41 |
obligated or pledged, for the payment of principal or interest on | 42 |
such securities. The securities under this section shall not | 43 |
constitute debt of the commission or a county or municipal | 44 |
corporation that has contracted for the creation of a center. | 45 |
Money received by the commission from a county or municipal | 46 |
corporation pursuant to section 307.93 of the Revised Code shall | 47 |
not be considered money raised by taxation. | 48 |
(E) The securities issued under this section shall be secured | 49 |
by the revenues the commission receives: | 50 |
(1) From the counties or municipal corporations that have | 51 |
contracted to create the center, as provided in section 307.93 of | 52 |
the Revised Code; and | 53 |
(2) For the services the center provides. | 54 |
(F) The commission shall authorize the issuance of securities | 55 |
under this section by adopting a resolution that includes all of | 56 |
the following: | 57 |
(1) A statement that the securities issued under this section | 58 |
are not general obligations of either the commission or a county | 59 |
or municipal corporation that has contracted to create a center. | 60 |
(2) A statement that the commission pledges to fix rates or | 61 |
charges for the services of the center and payments under the | 62 |
contract between or among participating counties or municipal | 63 |
corporations sufficient to provide adequate funds and reserves to | 64 |
pay the debt incurred by the issuance of the securities, after | 65 |
payment of the cost of management, maintenance, and operation of | 66 |
the center or other correctional facilities under the commission's | 67 |
control. | 68 |
(3) A description of the fund or funds to which the proceeds | 69 |
of the sale of securities under this section shall be credited and | 70 |
a description of the fund or funds to which any pledged revenue | 71 |
for the retirement of the debt from the securities shall be | 72 |
credited. | 73 |
(G) The resolution authorizing the issuance of securities may | 74 |
contain provisions governing the following subjects, which | 75 |
provisions shall be a part of the contract with the holders of | 76 |
such securities: | 77 |
(1) The sale and execution of the securities, pledging all or | 78 |
any part of the revenues and contract payments to secure the | 79 |
payment of the securities; | 80 |
(2) The use and disposition of revenues and contract | 81 |
payments; | 82 |
(3) The crediting of the proceeds of the sale of the | 83 |
securities to and among the funds referred to or provided for in | 84 |
the resolution; | 85 |
(4) The use, lease, sale, or other disposition of the center | 86 |
or any correctional facilities under the commission's control; | 87 |
(5) Limitations on the purpose to which the proceeds of the | 88 |
sale of securities may be applied to refund previously issued | 89 |
securities; | 90 |
(6) As to securities issued in anticipation of the issuance | 91 |
of securities, the agreement of the commission to do all things | 92 |
necessary for the authorization, issuance, and sale of securities | 93 |
in such amounts as may be necessary for the timely retirement of | 94 |
such anticipation securities; | 95 |
(7) Limitations on the issuance of additional securities; | 96 |
(8) The terms on which additional securities may be issued | 97 |
and secured; | 98 |
(9) The refunding of outstanding securities; | 99 |
(10) The procedure by which the terms of any contract with | 100 |
holders of securities may be amended or abrogated, the amount of | 101 |
securities the holders of which are required to consent thereto, | 102 |
and the manner in which such consent may be given; | 103 |
(11) Limitations on the amount of moneys to be expended by | 104 |
the commission for operation, administration, or other expenses of | 105 |
the center; | 106 |
(12) Any other provisions related to the security or | 107 |
protection of the securities, as determined by the commission. | 108 |
(H) Any surplus of pledged revenues received by a commission | 109 |
in any year, in excess of the amount of principal and interest | 110 |
payable in that year, and any additional amount as is provided in | 111 |
the resolution authorizing the securities to be held as a reserve | 112 |
for debt service, may be used for the enlargement and replacement | 113 |
of the center or other correctional facilities under a | 114 |
commission's control. | 115 |
(I) A corrections commission who issues securities under this | 116 |
section may appoint or provide for the appointment of agents, | 117 |
consultants, independent contractors, or any other type of | 118 |
administrative, investment, financial, or accounting experts as | 119 |
are necessary, in the judgment of the commission, to carry out the | 120 |
commission's duties under this section. | 121 |
(J) The issuance of securities under this section need not | 122 |
comply with any other law applicable to the issuance of | 123 |
securities. | 124 |
(K) A pledge under this section shall be valid and binding | 125 |
from the time the pledge is made. The revenues so pledged, and | 126 |
thereafter received by the commission, shall immediately be | 127 |
subject to the lien of such pledge without any physical delivery | 128 |
thereof or further act. The lien of any such pledge is valid and | 129 |
binding as against all parties having claims of any kind in tort, | 130 |
contract, or otherwise against the commission or a contracting | 131 |
county or municipal corporation, irrespective of whether such | 132 |
parties have notice thereof. The resolution by which a pledge is | 133 |
created need not be filed or recorded except in the records of the | 134 |
commission. Neither the members of the commission nor any person | 135 |
executing the securities shall be liable personally on the | 136 |
securities or be subject to any personal liability or | 137 |
accountability by reason of the issuance thereof. | 138 |