As Reported by the Senate Finance Committee

130th General Assembly
Regular Session
2013-2014
S. J. R. No. 6


Senators Bacon, Manning 

Cosponsors: Senators Coley, Oelslager, Hughes, Jones, LaRose, Gardner, Sawyer, Skindell, Smith, Tavares, Peterson 



A JOINT RESOLUTION
Proposing to enact Section 2s of Article VIII of the 1
Constitution of the State of Ohio to permit the 2
issuance of additional general obligation bonds to 3
fund public infrastructure capital improvements.4



        Be it resolved by the General Assembly of the State of Ohio, 5
three-fifths of the members elected to each house concurring 6
therein, that there shall be submitted to the electors of the 7
state, in the manner prescribed by law at the special election to 8
be held on May 6, 2014, a proposal to enact Section 2s of Article 9
VIII of the Constitution of the State of Ohio to read as follows:10

ARTICLE VIII
11

2s.  (A) In addition to the authorizations otherwise 12
contained in Article VIII of the Ohio Constitution, the General 13
Assembly may provide by law, in accordance with and subject to the 14
limitations of this section, for the issuance of bonds and other 15
obligations of the state for the purpose of financing or assisting 16
in the financing of the cost of public infrastructure capital 17
improvements of municipal corporations, counties, townships, and 18
other governmental entities as designated by law. As used in this 19
section, public infrastructure capital improvements shall be 20
limited to roads and bridges, waste water treatment systems, water 21
supply systems, solid waste disposal facilities, and storm water 22
and sanitary collection, storage, and treatment facilities, 23
including real property, interests in real property, facilities, 24
and equipment related to or incidental thereto, and shall include, 25
without limitation, the cost of acquisition, construction, 26
reconstruction, expansion, improvement, planning, and equipping.27

       It is hereby determined that such public infrastructure 28
capital improvements are necessary to preserve and expand the 29
public capital infrastructure of such municipal corporations, 30
counties, townships, and other governmental entities, ensure the 31
public health, safety, and welfare, create and preserve jobs, 32
enhance employment opportunities, and improve the economic welfare 33
of the people of this state.34

       (B) Not more than one billion eight hundred seventy-five 35
million dollars principal amount of state general obligations may 36
be issued under this section for public infrastructure capital 37
improvements. Not more than one hundred seventy-five million 38
dollars principal amount of those obligations may be issued in 39
each of the first five fiscal years of issuance and not more than 40
two hundred million dollars principal amount of those obligations 41
may be issued in each of the next five fiscal years of issuance, 42
plus in each case the principal amount of those obligations that 43
in any prior fiscal year could have been but were not issued 44
within those fiscal year limits. No obligations may be issued 45
pursuant to this section until all of the state infrastructure 46
obligations authorized under Section 2p of Article VIII, Ohio 47
Constitution have been issued.48

       (C) Each issue of obligations issued under this section shall 49
mature in not more than thirty years from the date of issuance, 50
or, if issued to retire or refund other obligations, within that 51
number of years from the date the debt being retired or refunded 52
was originally issued. If state general obligations are issued as 53
notes in anticipation of the issuance of bonds, provision shall be 54
made by law for the establishment and maintenance, during the 55
period in which the notes are outstanding, of a special fund or 56
funds into which shall be paid, from the sources authorized for 57
the payment of such bonds, the amount that would have been 58
sufficient, if bonds maturing during the permitted period of years 59
had been issued without such prior issuance of notes, to pay the 60
principal that would have been payable on such bonds during such 61
period. Such fund or funds shall be used solely for the payment of 62
principal of such notes or bonds in anticipation of which such 63
notes have been issued. Obligations issued under this section to 64
retire or refund obligations previously issued under this section 65
or Section 2k, 2m, or 2p shall not be counted against the fiscal 66
year or total issuance limitations provided in this section or 67
Section 2k, 2m, or 2p, as applicable.68

       (D) The obligations issued under this section are general 69
obligations of the state. The full faith and credit, revenue, and 70
taxing power of the state shall be pledged to the payment of the 71
principal of and premium and interest and other accreted amounts 72
on outstanding obligations as they become due (hereinafter called 73
debt service), and bond retirement fund provisions shall be made 74
for payment of that debt service. Provision shall be made by law 75
for the sufficiency and appropriation, for purposes of paying debt 76
service, of excises, taxes, and revenues so pledged or committed 77
to debt service, and for covenants to continue the levy, 78
collection, and application of sufficient excises, taxes, and 79
revenues to the extent needed for that purpose. Notwithstanding 80
Section 22 of Article II, Ohio Constitution, no further act of 81
appropriation shall be necessary for that purpose. The obligations 82
and the provision for the payment of debt service, and repayment 83
by governmental entities of any loans made under this section, are 84
not subject to Sections 5, 6, and 11 of Article XII, Ohio 85
Constitution. Moneys referred to in Section 5a of Article XII, 86
Ohio Constitution may not be pledged to the payment of that debt 87
service.88

       (E) The state may participate in any public infrastructure 89
capital improvement under this section with municipal 90
corporations, counties, townships, or other governmental entities 91
as designated by law, or any one or more of them. Such 92
participation may be by grants, loans, or contributions to them 93
for any such capital improvements. The entire proceeds of the 94
infrastructure obligations shall be used for public infrastructure 95
capital improvements of municipal corporations, counties, 96
townships, and other governmental entities, except to the extent 97
that the General Assembly provides by law that the state may 98
reasonably be compensated from such moneys for planning, financial 99
management, or administrative services performed in relation to 100
the issuance of infrastructure obligations.101

       (F) Obligations issued under authority of this section, the 102
transfer thereof, and the interest, interest equivalent, and other 103
income and accreted amounts therefrom, including any profit made 104
on the sale, exchange, or other disposition thereof, shall at all 105
times be free from taxation within the state.106

       (G) This section shall otherwise be implemented in the manner 107
and to the extent provided by law by the General Assembly, 108
including provision for the procedure for incurring and issuing 109
obligations, separately or in combination with other obligations, 110
and refunding, retiring, and evidencing obligations, and provision 111
for the use to the extent practicable of Ohio products, materials, 112
services, and labor in the making of any project financed, in 113
whole or in part, under this section.114

       (H) The powers and authority granted or confirmed by and 115
under, and the determinations in, this section are independent of, 116
in addition to, and not in derogation of or a limitation on, 117
powers, authority, determinations, or confirmations under laws or 118
under other provisions of the Ohio Constitution and do not impair 119
any previously adopted provisions of the Ohio Constitution or any 120
law previously enacted by the General Assembly or by a local 121
public agency.122

EFFECTIVE DATE
123

       If adopted by a majority of the electors voting on this 124
proposal, Section 2s of Article VIII of the Constitution of the 125
State of Ohio shall take effect immediately.126