SB 450 — Make capital appropriations for the biennium ending June 30, 2028

82Ohio (7)Constitution," "Issuing"paying authority"costs meansof capital facilities for a system of common schools throughout the state as authorized by Section 2n of Article VIII, Ohio publicConstitution," facilities"paying 83costs commissionof createdcapital infacilities sectionfor 151.02state-supported and state-assisted institutions of thehigher Revisededucation Codeas forauthorized 84by obligationsSection issued2n underof sectionArticle 151.03,VIII, 151.04,Ohio 151.05,Constitution," 151.07,"paying 85costs 151.08,of 151.09,coal 151.10,research orand 151.11development as authorized by Section 15 of theArticle RevisedVIII, Code,Ohio Constitution," "financing or assisting in the 86financing treasurerof local subdivision capital improvement projects as authorized by Section 2m, 2p, and 2s, and 2t of state,Article VIII, Ohio Constitution," "paying costs of conservation projects as authorized by Sections 2o and 2q of Article VIII, Ohio Constitution," "paying costs of revitalization projects as authorized by Sections 2o and 2q of Article VIII, Ohio Constitution," "paying costs of preparing sites for industry, commerce, distribution, or theresearch officerand whodevelopment as authorized by lawSection performs2p theof 87Article functionsVIII, Ohio Constitution," or "paying costs of thatresearch office,and development as authorized by Section 2p of Article VIII, Ohio Constitution." (D) The issuing authority may appoint or provide for obligationsthe issuedappointment underof sectionpaying 88agents, 151.06bond registrars, securities depositories, clearing corporations, and transfer agents, and may without need for any other approval retain or 151.40contract for the services of underwriters, investment bankers, financial advisers, accounting experts, marketing, remarketing, indexing, and administrative agents, other consultants, and independent contractors, including printing services, as are necessary in the Revisedjudgment Code.of the issuing authority to carry out the issuing authority's functions under this chapter.

89When (8)the "Netissuing proceeds"authority meansis amounts received from the saleOhio ofpublic 90facilities obligations,commission, excludingthe amountsissuing usedauthority toalso refundmay orwithout retireneed 91for outstandingany obligations,other amountsapproval requiredretain toor becontract depositedfor into 92 special funds pursuant to the applicableservices bondof proceedings,attorneys and 93other amountsprofessionals tofor bethat usedpurpose. to pay financing costs.

94Financing (9)costs "Obligations"are meanspayable, bonds,as notes,may orbe otherprovided evidencesin 95the ofbond obligationproceedings, offrom the state,proceeds including any appertaining interest 96 coupons, issued under Section 2k, 2l, 2m, 2n, 2o, 2p, 2q, 2s, 97 2t, or 15 of Articlethe VIII,obligations, Ohiofrom Constitution,special andfunds, pursuant to 98 sections 151.01 to 151.11 or 151.40from of the Revised Code or other 99moneys generalavailable assemblyfor authorization.the purpose.

100(E) (10)The "Principalbond amount"proceedings meansmay thecontain aggregateadditional ofprovisions thecustomary amount 101 as stated or providedappropriate forto in the applicablefinancing bondor proceedingsto as 102 the amountobligations on which interest or interestto equivalentparticular onobligations 103including, particularbut obligationsnot islimited initiallyto, calculated.provisions for:

Principal(1) amountThe 104redemption doesof notobligations includeprior anyto premiummaturity paidat tothe option of the state byor of the initialholder 105or purchaserupon the occurrence of thecertain obligations.conditions, and at particular price or prices and under particular terms and conditions;

"Principal(2) amount"The ofform a capital 106 appreciation bond, as defined in division (C) of sectionand 3334.01other 107terms of the Revisedobligations; Code, means its face amount, and "principal 108 amount" of a zero coupon bond, as defined in division (J) of 109 S.

B.(3) The establishment, deposit, investment, and application of special funds, and the safeguarding of moneys on hand or on deposit, in lieu of the applicability of provisions of Chapter 131.

No.

450 Page 5 As Passed by the Senate section 3334.01 of the Revised Code, means the discounted 110 offering price at which the bond is initially sold to the 111 public, disregarding any purchase price discount to the original 112 purchaser, if provided for pursuant to the bond proceedings.

113 (11) "Special funds" or "funds," unless the context 114 indicates otherwise, means the bond service fund, and any other 115 funds, including any reserve funds, created under the bond 116 proceedings and stated to be special funds in those proceedings, 117 including moneys and investments, and earnings from investments, 118 credited and to be credited to the particular fund.

Special 119 funds do not include the school building program assistance fund 120 created by section 3318.25 of the Revised Code, the higher 121 education improvement fund created by division (F) of section 122 154.21 of the Revised Code, the higher education improvement 123 taxable fund created by division (G) of section 154.21 of the 124 Revised Code, the highway capital improvement bond fund created 125 by section 5528.53 of the Revised Code, the state parks and 126 natural resources fund created by section 1557.02 of the Revised 127 Code, the coal research and development fund created by section 128 1555.15 of the Revised Code, the clean Ohio conservation fund 129 created by section 164.27 of the Revised Code, the job ready 130 site development fund created by section 122.0820 of the Revised 131 Code, the third frontier research and development fund created 132 by section 184.19 of the Revised Code, the third frontier 133 research and development taxable bond fund created by section 134 184.191 of the Revised Code, or other funds created by the bond 135 proceedings that are not stated by those proceedings to be 136 special funds.

137 (B) Subject to Section 2l, 2m, 2n, 2o, 2p, 2q, 2s, 2t, or 138 15, and Section 17, of Article VIII, Ohio Constitution, the 139 state, by the issuing authority, is authorized to issue and 140 S.

B.

No.

450 Page 6 As Passed by the Senate sell, as provided in sections 151.03 to 151.11 or 151.40 of the 141 Revised Code, and in respective aggregate principal amounts as 142 from time to time provided or authorized by the general 143 assembly, general obligations of this state for the purpose of 144 paying costs of capital facilities or projects identified by or 145 pursuant to general assembly action.

146 (C) Each issue of obligations shall be authorized by 147 resolution or order of the issuing authority.

The bond 148 proceedings shall provide for or authorize the manner for 149 determining the principal amount or maximum principal amount of 150 obligations of an issue, the principal maturity or maturities, 151 the interest rate or rates, the date of and the dates of payment 152 of interest on the obligations, their denominations, and the 153 place or places of payment of debt service which may be within 154 or outside the state.

Unless otherwise provided by law, the 155 latest principal maturity may not be later than the earlier of 156 the thirty-first day of December of the twenty-fifth calendar 157 year after the year of issuance of the particular obligations or 158 of the twenty-fifth calendar year after the year in which the 159 original obligation to pay was issued or entered into.

Sections 160 9.96, 9.98, 9.981, 9.982, and 9.983 of the Revised Code apply to 161 obligations.

The purpose of the obligations may be stated in the 162 bond proceedings in general terms, such as, as applicable, 163 "financing or assisting in the financing of projects as provided 164 in Section 2l of Article VIII, Ohio Constitution," "financing or 165 assisting in the financing of highway capital improvement 166 projects as provided in Section 2m of Article VIII, Ohio 167 Constitution," "paying costs of capital facilities for a system 168 of common schools throughout the state as authorized by Section 169 2n of Article VIII, Ohio Constitution," "paying costs of capital 170 facilities for state-supported and state-assisted institutions 171 S.

B.

No.

450 Page 7 As Passed by the Senate of higher education as authorized by Section 2n of Article VIII, 172 Ohio Constitution," "paying costs of coal research and 173 development as authorized by Section 15 of Article VIII, Ohio 174 Constitution," "financing or assisting in the financing of local 175 subdivision capital improvement projects as authorized by 176 Section 2m, 2p, and 2s, and 2t of Article VIII, Ohio 177 Constitution," "paying costs of conservation projects as 178 authorized by Sections 2o and 2q of Article VIII, Ohio 179 Constitution," "paying costs of revitalization projects as 180 authorized by Sections 2o and 2q of Article VIII, Ohio 181 Constitution," "paying costs of preparing sites for industry, 182 commerce, distribution, or research and development as 183 authorized by Section 2p of Article VIII, Ohio Constitution," or 184 "paying costs of research and development as authorized by 185 Section 2p of Article VIII, Ohio Constitution." 186 (D) The issuing authority may appoint or provide for the 187 appointment of paying agents, bond registrars, securities 188 depositories, clearing corporations, and transfer agents, and 189 may without need for any other approval retain or contract for 190 the services of underwriters, investment bankers, financial 191 advisers, accounting experts, marketing, remarketing, indexing, 192 and administrative agents, other consultants, and independent 193 contractors, including printing services, as are necessary in 194 the judgment of the issuing authority to carry out the issuing 195 authority's functions under this chapter.

When the issuing 196 authority is the Ohio public facilities commission, the issuing 197 authority also may without need for any other approval retain or 198 contract for the services of attorneys and other professionals 199 for that purpose.

Financing costs are payable, as may be 200 provided in the bond proceedings, from the proceeds of the 201 obligations, from special funds, or from other moneys available 202 S.

B.

No.

450 Page 8 As Passed by the Senate for the purpose.

203 (E) The bond proceedings may contain additional provisions 204 customary or appropriate to the financing or to the obligations 205 or to particular obligations including, but not limited to, 206 provisions for:

207 (1) The redemption of obligations prior to maturity at the 208 option of the state or of the holder or upon the occurrence of 209 certain conditions, and at particular price or prices and under 210 particular terms and conditions;

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

212 (3) The establishment, deposit, investment, and 213 application of special funds, and the safeguarding of moneys on 214 hand or on deposit, in lieu of the applicability of provisions 215 of Chapter 131.

of the Revised Code, but subject to any 216 special provisions of sections 151.01 to 151.11 or 151.40 of the 217 Revised Code with respect to the application of particular funds 218 or moneys.

Any financial institution that acts as a depository 219 of any moneys in special funds or other funds under the bond 220 proceedings may furnish indemnifying bonds or pledge securities 221 as required by the issuing authority.

222 (4) Any or every provision of the bond proceedings being 223 binding upon the issuing authority andS. upon such governmental 224 agency or entity, officer, board, commission, authority, agency, 225 department, institution, district, or other person or body as 226 may from time to time be authorized to take actions as may be 227 necessary to perform all or any part of the duty required by the 228 provision;

229 (5) The maintenance of each pledge or instrument 230 comprising part of the bond proceedings until the state has 231 S.

450 Page136th 9G.A. As Passed by the Senate fully paid or provided for the payment of the debt service on 232 the obligations or met other stated conditions;

233and (6)upon Insuch thegovernmental eventagency ofor defaultentity, inofficer, anyboard, paymentscommission, requiredauthority, toagency, bedepartment, 234institution, madedistrict, by the bond proceedings, or by any other agreementperson ofor thebody 235 issuing authority made as partmay offrom atime contractto undertime whichbe theauthorized 236to obligationstake wereactions issuedas ormay secured,be includingnecessary ato creditperform 237all enhancementor facility,any thepart enforcement of thosethe paymentsduty required by 238the mandamus,provision; a suit in equity, an action at law, or any combination 239 of those remedial actions;

240(5) (7) The rightsmaintenance and remedies of theeach holderspledge or ownersinstrument ofcomprising 241part obligations or of book-entrythe interestsbond inproceedings them,until andthe ofstate thirdhas 242fully partiespaid underor anyprovided credit enhancement facility, and provisions 243 for protectingthe andpayment enforcingof thosethe rightsdebt andservice remedies, 244 including limitations on rightsthe ofobligations individualor holdersmet orother owners;stated conditions;

245(6) (8)In Thethe replacementevent of mutilated,default destroyed,in lost,any payments required to be made by the bond proceedings, or 246by stolenany obligations;other agreement of the issuing authority made as part of a contract under which the obligations were issued or secured, including a credit enhancement facility, the enforcement of those payments by mandamus, a suit in equity, an action at law, or any combination of those remedial actions;

247(7) (9) The funding,rights refunding,and remedies of the holders or advanceowners refunding,of obligations or otherof 248book-entry provisioninterests forin payment,them, and of obligationsthird thatparties willunder thenany nocredit longerenhancement 249facility, beand outstandingprovisions for purposesprotecting ofand thisenforcing sectionthose orrights ofand theremedies, applicableincluding 250limitations bondon proceedings;rights of individual holders or owners;

251(8) (10)The Amendmentreplacement of themutilated, bonddestroyed, proceedings;lost, or stolen obligations;

252(9) (11)The Anyfunding, otherrefunding, or additionaladvance agreementsrefunding, withor theother ownersprovision offor 253payment, obligations,of andobligations suchthat otherwill provisionsthen asno thelonger issuingbe authorityoutstanding 254for determines,purposes includingof limitations,this conditions,section or 255 qualifications, relating to any of the foregoing.applicable bond proceedings;

256(10) (F)Amendment The great seal of the statebond orproceedings; a facsimile of it may 257 be affixed to or printed on the obligations.

The(11) obligationsAny 258other requiringor executionadditional byagreements orwith forthe owners of obligations, and such other provisions as the issuing authority shalldetermines, beincluding 259limitations, signedconditions, asor providedqualifications, inrelating theto bondany proceedings.of the foregoing.

Any(F) obligationsThe great seal of the state or a facsimile of it may 260be S.affixed to or printed on the obligations.

B.The obligations requiring execution by or for the issuing authority shall be signed as provided in the bond proceedings.

No.Any obligations may be signed by the individual who on the date of execution is the authorized signer although on the date of these obligations that individual is not an authorized signer.

450In Pagecase 10the Asindividual Passedwhose bysignature theor Senatefacsimile signature appears on any obligation ceases to be signedan byauthorized thesigner individualbefore whodelivery onof the dateobligation, ofthat executionsignature isor thefacsimile 261is authorizednevertheless signervalid althoughand onsufficient thefor dateall ofpurposes theseas obligationsif that 262 individual ishad notremained anthe authorized signer.signer until delivery.

In(G) caseObligations theare individualinvestment 263securities whoseunder signatureChapter or1308. facsimile signature appears on any obligation 264 ceases to be an authorized signer before delivery of the 265 obligation, that signature or facsimile is nevertheless valid 266 and sufficient for all purposes as if that individual had 267 remained the authorized signer until delivery.

268 (G) Obligations are investment securities under Chapter 269 1308.

Obligations may be issued in bearer 270 or in registered form, registrable as to principal alone or as 271 to both principal and interest, or both, or in certificated or 272 uncertificated form, as the issuing authority determines.

273 Provision may be made for the exchange, conversion, or transfer 274 of obligations and for reasonable charges for registration, 275 exchange, conversion, and transfer.

Pending preparation of final 276 obligations, the issuing authority may provide for the issuance 277 of interim instruments to be exchanged for the final 278 obligations.

279 (H) Obligations may be sold at public sale or at private 280 sale, in such manner, and at such priceS. at, above or below par, 281 all as determined by and provided by the issuing authority in 282 the bond proceedings.

283 (I) Except to the extent that rights are restricted by the 284 bond proceedings, any owner of obligations or provider of a 285 credit enhancement facility may by any suitable form of legal 286 proceedings protect and enforce any rights relating to 287 obligations or that facility under the laws of this state or 288 granted by the bond proceedings.

Those rights include the right 289 to compel the performance of all applicable duties of the 290 S.

450 Page136th 11G.A. As Passed by the Senate issuing authority and the state.

Eachprice dutyat, ofabove the issuing 291 authority and that authority's officers, staff, and employees, 292 and of each state entity or agency,below orpar, usingall district or using 293 institution, and its officers, members, staff, or employees, 294 undertaken pursuant to the bond proceedings, is hereby 295 established as adetermined duty of the entity or individual having 296 authority to perform that duty, specifically enjoined by law and 297provided resultingby from an office, trust, or station within the meaningissuing 298authority ofin section 2731.01 of the Revisedbond Code.proceedings.

The(I) individualsExcept whoto arethe 299extent fromthat timerights toare timerestricted by the issuingbond authority,proceedings, membersany orowner officers of 300obligations theor issuingprovider authority,of ora thosecredit members'enhancement designeesfacility actingmay 301by pursuantany tosuitable sectionform 151.02 of thelegal Revisedproceedings Code,protect orand theenforce issuingany 302rights authority'srelating officers,to staff,obligations or employees,that arefacility notunder liablethe inlaws 303of theirthis personalstate capacities on any obligations or otherwisegranted underby 304 the bond proceedings.

305Those (J)(1)rights Subjectinclude tothe Sectionright 2k,to 2l,compel 2m,the 2n,performance 2o, 2p, 2q, 2s, 306 2t, or 15, and Section 17, of Articleall VIII,applicable Ohioduties Constitution 307 and sections 151.01 to 151.11 or 151.40 of the Revised Code, the 308 issuing authority may, in addition to the authority referred to 309 in division (B) of this section, authorize and provide for the 310state. issuance of:

311Each (a)duty Obligationsof in the formissuing authority and that authority's officers, staff, and employees, and of bondeach anticipationstate notes,entity 312or agency, or using district or using institution, and mayits provideofficers, formembers, staff, or employees, undertaken pursuant to the renewalbond proceedings, is hereby established as a duty of thosethe notesentity fromor timeindividual having authority to timeperform 313that duty, specifically enjoined by law and resulting from an office, trust, or station within the issuancemeaning of newsection notes.2731.01 of the Revised Code.

The holdersindividuals ofwho notesare orfrom 314time appertainingto interesttime coupons have the rightissuing toauthority, havemembers debtor 315officers serviceof on those notes paid solely from the moneysissuing andauthority, specialor 316those fundsmembers' thatdesignees areacting orpursuant mayto besection pledged151.02 toof thatthe payment,Revised includingCode, or the 317issuing proceedsauthority's ofofficers, bondsstaff, or renewalemployees, notesare ornot both,liable asin thetheir issuingpersonal 318capacities authorityon providesany inobligations theor bondotherwise proceedingsunder authorizing the 319bond notes.proceedings.

Notes(J)(1) maySubject beto additionallySection secured2k, by2l, covenants2m, 2n, 2o, 2p, 2q, 2s, 2t, or 15, and Section 17, of theArticle 320VIII, issuingOhio authorityConstitution and sections 151.01 to 151.11 or 151.40 of the effectRevised thatCode, the issuing authority may, in addition to the authority referred to in division (B) of this section, authorize and 321provide S.for the issuance of:

(a) Obligations in the form of bond anticipation notes, and may provide for the renewal of those notes from time to time by the issuance of new notes.

The holders of notes or appertaining interest coupons have the right to have debt service on those notes paid solely from the moneys and special funds that are or may be pledged to that payment, including the proceeds of bonds or renewal notes or both, as the issuing authority provides in the bond proceedings authorizing the notes.

Notes may be additionally secured by covenants of the issuing authority to the effect that the issuing authority and the state will do all things necessary for the issuance of bonds or renewal notes in such principal amount and upon such terms as may be necessary to provide moneys to pay when due the debt service on the notes, and apply their proceeds to the extent necessary, to make full and timely payment of debt service on the notes as provided in the applicable bond proceedings.

In the bond proceedings authorizing the issuance of bond anticipation notes the issuing authority shall set forth for the bonds anticipated an estimated schedule of annual principal payments the latest of which shall be no later than provided in division (C) of this section.

While the notes are outstanding there shall be deposited, as shall be provided in the bond proceedings for those notes, from the sources authorized for payment of debt service on the bonds, amounts sufficient to pay the principal of the bonds anticipated as set forth in that estimated schedule during the time the notes are outstanding, which amounts shall be used solely to pay the principal of those notes or of the bonds anticipated.

(b) Obligations for the refunding, including funding and retirement, and advance refunding S.

450 Page136th 12G.A. As Passed by the Senate the state will do all things necessary for the issuance of bonds 322 or renewal notes in such principal amount and upon such terms as 323 may be necessary to provide moneys to pay when due the debt 324 service on the notes, and apply their proceeds to the extent 325 necessary, to make full and timely payment of debt service on 326 the notes as provided in the applicable bond proceedings.

Inwith theor 327without bondpayment proceedingsor authorizingredemption theprior issuanceto ofmaturity, bond anticipation 328 notes the issuing authority shall set forth for the bonds 329 anticipated an estimated schedule of annualany principalobligations paymentspreviously 330issued. the latest of which shall be no later than provided in division 331 (C) of this section.

WhileRefunding theobligations notesmay are outstanding there shall 332 be deposited,issued asin shallamounts besufficient providedto inpay theor bondto proceedingsprovide for 333repayment thoseof notes,the fromprincipal theamount, sourcesincluding authorizedprincipal foramounts paymentmaturing ofprior debtto 334the serviceredemption onof the bonds,remaining amountsprior sufficientobligations, toany payredemption thepremium, principaland ofinterest 335accrued theor bondsto anticipatedaccrue asto setthe forthmaturity inor thatredemption estimateddate scheduleor 336dates, duringpayable theon time the notesprior areobligations, outstanding,and whichrelated amountsfinancing shallcosts 337and beany usedexpenses solelyincurred or to paybe theincurred principalin ofconnection thosewith notesthat orissuance ofand therefunding. 338 bonds anticipated.

339Subject (b)to Obligationsthe forapplicable bond proceedings, the refunding,portion includingof fundingthe andproceeds 340of retirement,the andsale advanceof refunding withobligations orissued withoutunder paymentdivision or(J)(1)(b) 341of redemptionthis priorsection to maturity,be ofapplied anyto debt service on the prior obligations previouslyshall 342be issued.credited to an appropriate separate account in the bond service fund and held in trust for the purpose by the issuing authority or by a corporate trustee.

RefundingObligations obligationsauthorized mayunder bethis issueddivision inshall amountsbe 343considered sufficient to paybe orissued to provide for repaymentthose ofpurposes thefor principalwhich 344 amount, including principal amounts maturing prior to the 345 redemption of the remaining prior obligations,obligations anywere redemptionissued. 346 premium, and interest accrued or to accrue to the maturity or 347 redemption date or dates, payable on the prior obligations, and 348 related financing costs and any expenses incurred or to be 349 incurred in connection with that issuance and refunding.

Subject(2) 350Except toas theotherwise applicableprovided bondin proceedings,sections the151.01 portionto of151.11 theor proceeds151.40 351 of the saleRevised ofCode, refundingbonds obligationsor issuednotes underauthorized pursuant to division (J) 352of S.this section are subject to the provisions of those sections pertaining to obligations generally.

(3) The principal amount of refunding or renewal obligations issued pursuant to division (J) of this section shall be in addition to the amount authorized by the general assembly as referred to in division (B) of the following sections:

section 151.03, 151.04, 151.05, 151.06, 151.07, 151.08, 151.09, 151.10, 151.11, or 151.40 of the Revised Code.

(K) Obligations are lawful investments for banks, savings and loan associations, credit union share guaranty corporations, trust companies, trustees, fiduciaries, insurance companies, including domestic for life and domestic not for life, trustees or other officers having charge of sinking and bond retirement or other special funds of the state and political subdivisions and taxing districts of this state, the sinking fund, the administrator of workers' compensation subject to the approval of the workers' compensation board, the state teachers retirement system, the public employees retirement system, the school employees retirement system, and the Ohio police and fire pension fund, notwithstanding any other provisions of the Revised Code or rules adopted pursuant to those provisions by any state agency with respect to investments by them, and are also acceptable as security for the repayment of the deposit of public moneys.

The exemptions from taxation in Ohio as provided for in particular sections of the Ohio Constitution and section 5709.76 of the Revised Code apply to the obligations.

(L)(1) Unless otherwise provided or provided for in any applicable bond proceedings, moneys to the credit of or in a special fund shall be disbursed on the order of the issuing authority.

No such order is required for the payment, from the bond service fund or other special fund, when due of debt service or required payments under credit enhancement facilities.

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

(M) The full faith and credit, revenue, and taxing power of the state are and shall be pledged S.

450 Page136th 13G.A. As Passed by the Senate (1)(b) of this section to be applied to debt service on the 353 prior obligations shall be credited to an appropriate separate 354 account in the bond service fund and held in trust for the 355 purpose by the issuing authority or by a corporate trustee.

356to Obligationsthe authorizedtimely underpayment thisof divisiondebt shallservice beon consideredoutstanding 357obligations toas beit issuedcomes fordue, thoseall purposesin foraccordance whichwith theSection prior2k, obligations2l, 3582m, were2n, issued.2o, 2p, 2q, 2s, 2t, or 15 of Article VIII, Ohio Constitution, and section 151.03, 151.04, 151.05, 151.06, 151.07, 151.08, 151.09, 151.10, or 151.11 of the Revised Code.

359Moneys (2)referred Exceptto as otherwise provided in sectionsSection 151.015a toof 360Article 151.11XII, orOhio 151.40Constitution, ofmay thenot Revisedbe Code,pledged bonds or notesused authorizedfor 361the pursuantpayment toof divisiondebt (J)service ofexcept thison sectionobligations arereferred subject to thein 362section provisions151.06 of thosethe sectionsRevised pertainingCode. to obligations 363 generally.

364Net (3)state Thelottery principalproceeds, amountas ofprovided refundingfor orand renewalreferred 365 obligations issued pursuant to divisionin (J)section 3770.06 of thisthe sectionRevised 366Code, shallmay not be inpledged additionor toused for the amountpayment authorizedof bydebt theservice generalexcept 367on assemblyobligations as referred to in divisionsection (B)151.03 of the followingRevised 368Code. sections:

sectionThe 151.03,state 151.04,covenants, 151.05,and 151.06,that 151.07,covenant 369shall 151.08,be 151.09,controlling 151.10,notwithstanding 151.11,any orother 151.40provision of law, that the Revisedstate Code.and the applicable officers and agencies of the state, including the general assembly, shall, so long as any obligations are outstanding in accordance with their terms, maintain statutory authority for and cause to be levied, collected and applied sufficient pledged excises, taxes, and revenues of the state so that the revenues shall be sufficient in amounts to pay debt service when due, to establish and maintain any reserves and other requirements, and to pay financing costs, including costs of or relating to credit enhancement facilities, all as provided for in the bond proceedings.

370Those (K)excises, Obligationstaxes, areand lawfulrevenues investmentsare for banks, savings 371 and loanshall associations,be creditdeemed unionto sharebe guarantylevied corporations,and 372collected, trustin companies,addition trustees,to fiduciaries,the insurancepurposes companies,otherwise 373provided including domestic for lifeby andlaw, domesticto notprovide for life,the trusteespayment 374 or other officers having charge of sinkingdebt andservice bond retirement 375 or other special funds of the state and politicalfinancing subdivisionscosts 376in andaccordance taxingwith districtssections of151.01 this state, the sinking fund, the 377 administrator of workers' compensation subject to the151.11 approval 378 of the workers'Revised compensationCode board, the state teachers 379 retirement system, the public employees retirement system, the 380 school employees retirement system, and the Ohiobond policeproceedings. and fire 381 pension fund, notwithstanding any other provisions of the 382 S.

(N) The general assembly may from time to time repeal or reduce any excise, tax, or other source of revenue pledged to the payment of the debt service pursuant to Section 2k, 2l, 2m, 2n, 2o, 2p, 2q, 2s, 2t, or 15 of Article VIII, Ohio Constitution, and sections 151.01 to 151.11 or 151.40 of the Revised Code, and may levy, collect and apply any new or increased excise, tax, or revenue to meet the pledge, to the payment of debt service on outstanding obligations, of the state's full faith and credit, revenue and taxing power, or of designated revenues and receipts, except fees, excises or taxes referred to in Section 5a of Article XII, Ohio Constitution, for other than obligations referred to in section 151.06 of the Revised Code and except net state lottery proceeds for other than obligations referred to in section 151.03 of the Revised Code.

Nothing in division (N) of this section authorizes any impairment of the obligation of this state to levy and collect sufficient excises, taxes, and revenues to pay debt service on obligations outstanding in accordance with their terms.

(O) Each bond service fund is a trust fund and is hereby pledged to the payment of debt service on the applicable obligations.

Payment of that debt service shall be made or provided for by the issuing authority in accordance with the bond proceedings without necessity for any act of appropriation.

The bond proceedings may provide for the establishment of separate accounts in the bond service fund and for the application of those accounts only to debt service on specific obligations, and for other accounts in the bond service fund within the general purposes of that fund.

(P) Subject to the bond proceedings pertaining to any obligations then outstanding in accordance with their terms, the issuing authority may in the bond proceedings pledge all, or such portion as the issuing authority determines, of the moneys in the bond service fund to the payment of S.

450 Page136th 14G.A. As Passed by the Senate Revised Code or rules adopted pursuant to those provisions by 383 any state agency with respect to investments by them, and are 384 also acceptable as security for the repayment of the deposit of 385 public moneys.

Thedebt exemptionsservice fromon taxationparticular inobligations, Ohioand as provided 386 for in particular sections of the Ohioestablishment Constitution and sectionmaintenance 387 5709.76 of theany Revisedreserves Codefor applypayment toof theparticular obligations.debt service.

388(Q) (L)(1)The Unlessissuing otherwiseauthority providedshall orby providedthe forfifteenth inday anyof 389July applicableof bondeach proceedings,fiscal moneysyear, certify or cause to be certified to the creditoffice of orbudget inand amanagement 390the specialtotal fundamount shallof bemoneys disbursedrequired during the current fiscal year to meet in full all debt service on the orderrespective ofobligations and any related financing costs payable from the issuingapplicable 391bond authority.service fund and not from the proceeds of refunding or renewal obligations.

NoThe suchissuing orderauthority isshall requiredmake foror thecause payment,to frombe made supplemental certifications to the 392office bondof budget and management for each debt service fundpayment ordate and at such other specialtimes fund,during wheneach duefiscal ofyear debtas 393may servicebe orprovided requiredin paymentsthe underbond creditproceedings enhancementor 394requested facilities.by that office.

395Debt (2)service, Paymentscosts receivedof by the state under interest rate 396 hedges entered into as credit enhancement facilitiesfacilities, underand thisother 397financing chaptercosts shall be depositedset toforth theseparately creditin ofeach thecertification. bond service 398 fund for the obligations to which those credit enhancement 399 facilities relate.

400If (M)and Theso fulllong faithas andthe credit,moneys revenue,to andthe taxingcredit powerof 401the ofbond service fund, together with any other moneys available for the statepurpose, are insufficient to meet in full all payments when due of the amount required as stated in the certificate or otherwise, the office of budget and management shall beat pledgedthe totimes as provided in the timelybond paymentproceedings, and consistent with any particular provisions in sections 151.03 to 151.11 and 151.40 of 402the debtRevised serviceCode, ontransfer outstandinga obligationssufficient asamount itto comesthe due,bond allservice fund from the pledged revenues in 403the accordancecase withof Sectionobligations 2k,issued 2l,pursuant 2m,to 2n,section 2o,151.40 2p,of 2q,the 2s,Revised 2t,Code, orand 404in the case of Articleother VIII,obligations Ohiofrom Constitution,the revenues derived from excises, taxes, and sectionother 151.03,revenues, 405including 151.04,net 151.05,state 151.06,lottery 151.07,proceeds 151.08,in 151.09,the 151.10,case orof 406obligations 151.11referred to in section 151.03 of the Revised Code.

Moneys(R) referredUnless tootherwise provided in Sectionany 5aapplicable ofbond 407proceedings, Articlemoneys XII,to Ohiothe Constitution,credit mayof notspecial befunds pledgedmay orbe usedinvested forby 408or theon paymentbehalf of debtthe servicestate exceptonly on obligations referred to in 409one sectionor 151.06more of the Revisedfollowing: Code.

Net(1) stateNotes, lotterybonds, proceeds,or 410other asdirect providedobligations forof andthe referredUnited toStates inor sectionof 3770.06any agency or instrumentality of the 411United RevisedStates, Code,or mayin notno-front-end-load bemoney pledgedmarket mutual funds consisting exclusively of those obligations, or usedin forrepurchase theagreements, paymentincluding ofthose debtissued 412by S.any fiduciary, secured by those obligations, or in collective investment funds consisting exclusively of those obligations;

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

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

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

The income from investments referred to in division (R) of this section shall, unless otherwise provided in sections 151.01 to 151.11 or 151.40 of the Revised Code, be credited to special funds or otherwise as the issuing authority determines in the bond proceedings.

Those investments may be sold or exchanged at times as the issuing authority determines, provides for, or authorizes.

(S) The treasurer of state shall have responsibility for keeping records, making reports, and S.

450 Page136th 15G.A. As Passed by the Senate service except on obligations referred to in section 151.03 of 413 the Revised Code.

Themaking statepayments, covenants,relating andto that covenant shall 414 be controlling notwithstanding any otherarbitrage provisionrebate ofrequirements law,under that 415 the state and the applicable officers and agencies of the state, 416 including the general assembly, shall, so long as any 417 obligations are outstanding in accordance with their terms, 418 maintain statutory authority for and cause to be levied, 419 collected and applied sufficient pledged excises, taxes, and 420 revenues of the state so that the revenues shall be sufficient 421 in amounts to pay debt service when due, to establish and 422 maintain any reserves and other requirements, and to pay 423 financing costs, including costs of or relating to credit 424 enhancement facilities, all as provided for in the bond 425 proceedings.

ThoseSec. excises, taxes, and revenues are and shall be 426 deemed to be levied and collected, in addition to the purposes 427 otherwise provided for by law, to provide for the payment of 428 debt service and financing costs in accordance with sections 429 151.01 to 151.11 of the Revised Code and the bond proceedings.

430 (N) The general assembly may from time to time repeal or 431 reduce any excise, tax, or other source of revenue pledged to 432 the payment of the debt service pursuant to Section 2k, 2l, 2m, 433 2n, 2o, 2p, 2q, 2s, 2t, or 15 of Article VIII, Ohio 434 Constitution, and sections 151.01 to 151.11 or 151.40 of the 435 Revised Code, and may levy, collect and apply any new or 436 increased excise, tax, or revenue to meet the pledge, to the 437 payment of debt service on outstanding obligations, of the 438 state's full faith and credit, revenue and taxing power, or of 439 designated revenues and receipts, except fees, excises or taxes 440 referred to in Section 5a of Article XII, Ohio Constitution, for 441 other than obligations referred to in section 151.06 of the 442 Revised Code and except net state lottery proceeds for other 443 S.

B.

No.

450 Page 16 As Passed by the Senate than obligations referred to in section 151.03 of the Revised 444 Code.

Nothing in division (N) of this section authorizes any 445 impairment of the obligation of this state to levy and collect 446 sufficient excises, taxes, and revenues to pay debt service on 447 obligations outstanding in accordance with their terms.

448 (O) Each bond service fund is a trust fund and is hereby 449 pledged to the payment of debt service on the applicable 450 obligations.

Payment of that debt service shall be made or 451 provided for by the issuing authority in accordance with the 452 bond proceedings without necessity for any act of appropriation.

453 The bond proceedings may provide for the establishment of 454 separate accounts in the bond service fund and for the 455 application of those accounts only to debt service on specific 456 obligations, and for other accounts in the bond service fund 457 within the general purposes of that fund.

458 (P) Subject to the bond proceedings pertaining to any 459 obligations then outstanding in accordance with their terms, the 460 issuing authority may in the bond proceedings pledge all, or 461 such portion as the issuing authority determines, of the moneys 462 in the bond service fund to the payment of debt service on 463 particular obligations, and for the establishment and 464 maintenance of any reserves for payment of particular debt 465 service.

466 (Q) The issuing authority shall by the fifteenth day of 467 July of each fiscal year, certify or cause to be certified to 468 the office of budget and management the total amount of moneys 469 required during the current fiscal year to meet in full all debt 470 service on the respective obligations and any related financing 471 costs payable from the applicable bond service fund and not from 472 the proceeds of refunding or renewal obligations.

The issuing 473 S.

B.

No.

450 Page 17 As Passed by the Senate authority shall make or cause to be made supplemental 474 certifications to the office of budget and management for each 475 debt service payment date and at such other times during each 476 fiscal year as may be provided in the bond proceedings or 477 requested by that office.

Debt service, costs of credit 478 enhancement facilities, and other financing costs shall be set 479 forth separately in each certification.

If and so long as the 480 moneys to the credit of the bond service fund, together with any 481 other moneys available for the purpose, are insufficient to meet 482 in full all payments when due of the amount required as stated 483 in the certificate or otherwise, the office of budget and 484 management shall at the times as provided in the bond 485 proceedings, and consistent with any particular provisions in 486 sections 151.03 to 151.11 and 151.40 of the Revised Code, 487 transfer a sufficient amount to the bond service fund from the 488 pledged revenues in the case of obligations issued pursuant to 489 section 151.40 of the Revised Code, and in the case of other 490 obligations from the revenues derived from excises, taxes, and 491 other revenues, including net state lottery proceeds in the case 492 of obligations referred to in section 151.03 of the Revised 493 Code.

494 (R) Unless otherwise provided in any applicable bond 495 proceedings, moneys to the credit of special funds may be 496 invested by or on behalf of the state only in one or more of the 497 following:

498 (1) Notes, bonds, or other direct obligations of the 499 United States or of any agency or instrumentality of the United 500 States, or in no-front-end-load money market mutual funds 501 consisting exclusively of those obligations, or in repurchase 502 agreements, including those issued by any fiduciary, secured by 503 those obligations, or in collective investment funds consisting 504 S.

B.

No.

450 Page 18 As Passed by the Senate exclusively of those obligations;

505 (2) Obligations of this state or any political subdivision 506 of this state;

507 (3) Certificates of deposit of any national bank located 508 in this state and any bank, as defined in section 1101.01 of the 509 Revised Code, subject to inspection by the superintendent of 510 financial institutions;

511 (4) The treasurer of state's pooled investment program 512 under section 135.45 of the Revised Code.

513 The income from investments referred to in division (R) of 514 this section shall, unless otherwise provided in sections 151.01 515 to 151.11 or 151.40 of the Revised Code, be credited to special 516 funds or otherwise as the issuing authority determines in the 517 bond proceedings.

Those investments may be sold or exchanged at 518 times as the issuing authority determines, provides for, or 519 authorizes.

520 (S) The treasurer of state shall have responsibility for 521 keeping records, making reports, and making payments, relating 522 to any arbitrage rebate requirements under the applicable bond 523 proceedings.

524 Sec.

This section applies to obligations as 525 defined in this section.

526 (A) As used in this section:

527 (1) "Capital facilities" or "capital improvement projects" 528 means the acquisition, construction, reconstruction, 529 improvement, planning, and equipping of roads and bridges, waste 530 water treatment systems, water supply systems, solid waste 531 disposal facilities, flood control systems, and storm water and 532sanitary S.collection, storage, and treatment facilities, including real property, interests in real property, facilities, and equipment related or incidental to those facilities.

(2) "Costs of capital facilities" include related direct administrative expenses and allocable portions of direct costs of the Ohio public works commission and the local subdivision.

(3) "Local subdivision" means any county, municipal corporation, township, sanitary district, or regional water and sewer district.

(4) "Obligations" means obligations as defined in section 151.01 of the Revised Code issued to pay costs of capital facilities.

(B)(1) The issuing authority shall issue obligations to pay costs of financing or assisting in the financing of the capital improvement projects of local subdivisions pursuant to Section 2m of Article VIII, Ohio Constitution, section 151.01 of the Revised Code, and this section.

Not more than one hundred twenty million dollars principal amount of obligations, plus the principal amount of obligations that in any prior fiscal years could have been, but were not, issued within that one- hundred-twenty-million dollar fiscal year limit, may be issued in any fiscal year.

Not more than one billion two hundred million dollars principal amount of obligations pursuant to Section 2m of Article VIII, Ohio Constitution may be issued for the purposes of this section and division (B)(2) of section 164.09 of the Revised Code.

(2) The issuing authority shall issue obligations to pay costs of financing or assisting in the financing of the capital improvement projects of local subdivisions pursuant to Section 2p of Article VIII, Ohio Constitution, section 151.01 of the Revised Code, and this section.

Not more than one hundred twenty million dollars in principal amount of such obligations may be issued in any of the first five fiscal years of issuance and not more than one hundred fifty million dollars in principal amount of such obligations may be issued in any of the next five fiscal years, plus in each case the principal amount of such obligations that in any prior fiscal year could have been but were not issued within those fiscal year limits.

No obligations shall be issued for the purposes of this section pursuant to Section 2p of Article VIII, Ohio Constitution, until at least one billion one hundred ninety-nine million five hundred thousand dollars aggregate principal amount of obligations have been issued pursuant to Section 2m of Article VIII, Ohio Constitution.

Not more than one billion three hundred fifty million dollars principal amount of obligations may be issued pursuant to Section 2p of Article VIII, Ohio Constitution for the purposes of this section.

(3) The issuing authority shall issue obligations to pay costs of financing or assisting in the S.

450 Page136th 19G.A. As Passed by the Senate sanitary collection, storage, and treatment facilities, 533 including real property, interests in real property, facilities, 534 and equipment related or incidental to those facilities.

535financing (2) "Costs of the capital facilities"improvement includeprojects relatedof directlocal 536subdivisions administrativepursuant expensesto andSection allocable2s portions of directArticle costsVIII, 537Ohio ofConstitution, thesection Ohio151.01 publicof worksthe commissionRevised Code, and thethis localsection. subdivision.

538Not (3)more "Localthan subdivision"one meanshundred anyseventy-five county,million municipaldollars 539in corporation,principal township,amount sanitaryof district,such orobligations regionalmay waterbe issued in any of the first five fiscal years of issuance and 540not sewermore district.than two hundred million dollars in principal amount of such obligations may be issued in any of the next five fiscal years, plus in each case the principal amount of such obligations that in any prior fiscal year could have been but were not issued within those fiscal year limits.

541No (4)obligations "Obligations"shall meansbe obligationsissued asfor definedthe inpurposes of this section 542pursuant 151.01to Section 2s of theArticle RevisedVIII, CodeOhio issuedConstitution, tountil payall costsof the obligations authorized under Section 2p of capitalArticle 543VIII, facilities.Ohio Constitution, have been issued.

544Not (B)(1)more Thethan issuingone authoritybillion shalleight issuehundred obligationsseventy-five tomillion 545dollars payprincipal costsamount of financingobligations ormay assistingbe inissued the financing of the 546 capital improvement projects of local subdivisions pursuant to 547 Section 2m2s of Article VIII, Ohio Constitution, sectionfor 151.01 of 548 the Revisedpurposes Code,of and this section.

Not(4) moreThe thanissuing oneauthority hundredshall 549issue twentyobligations millionto dollarspay principalcosts amount of obligations,financing plusor theassisting 550in principalthe amountfinancing of obligationsthe thatcapital inimprovement anyprojects priorof fiscallocal yearssubdivisions 551pursuant couldto haveSection been,2t butof wereArticle not,VIII, issuedOhio withinConstitution, thatsection one-hundred-151.01 552of twenty-millionthe dollarRevised fiscalCode, yearand limit,this maysection. be issued in any 553 fiscal year.

Not more than one billion two hundred fifty million 554 dollars in principal amount of such obligations pursuantmay tobe Sectionissued 2min 555each of Articlethe VIII,ten Ohiofiscal Constitutionyears mayof beissuance, issuedplus forin each case the 556principal purposesamount of thisthose sectionobligations andthat divisionin (B)(2)any ofprior sectionfiscal 164.09year 557could ofhave thebeen Revisedbut Code.were not issued within those fiscal year limits.

558No (2)obligations Theshall issuingbe authorityissued shallfor issuethe obligationspurposes toof paythis 559section costspursuant to Section 2t of financingArticle orVIII, assistingOhio inConstitution, theuntil financingall of the capitalobligations 560authorized improvementunder projectsSection 2s of localArticle subdivisionsVIII, pursuantOhio toConstitution, Sectionhave 561been S.issued.

B.Not more than two billion five hundred million dollars principal amount of obligations may be issued pursuant to Section 2t of Article VIII, Ohio Constitution, for the purposes of this section.

No.(C) Net proceeds of obligations shall be deposited into the state capital improvements fund created by section 164.08 of the Revised Code.

450(D) PageThere 20is Ashereby Passedcreated in the state treasury the "state capital improvements bond service fund." All moneys received by the Senatestate 2pand ofrequired Articleby VIII,the Ohiobond Constitution,proceedings, consistent with this section and section 151.01 of the 562 Revised Code, to be deposited, transferred, or credited to the bond service fund, and thisall section.other moneys transferred or allocated to or received for the purposes of that fund, shall be deposited and credited to the bond service fund, subject to any applicable provisions of the bond proceedings but without necessity for any act of appropriation.

NotDuring morethe thanperiod onebeginning hundredwith twentythe 563date millionof dollarsthe infirst principalissuance amount of such obligations mayand becontinuing 564during issuedthe intime that any ofobligations theare firstoutstanding fivein fiscalaccordance yearswith oftheir issuanceterms, andso notlong 565as moremoneys thanin onethe hundredbond fiftyservice millionfund dollarsare ininsufficient principalto amountpay 566debt ofservice suchwhen due on those obligations maypayable befrom issuedthat infund any(except the principal amounts of bond anticipation notes payable from the nextproceeds fiveof fiscalrenewal 567notes years,or plusbonds inanticipated) eachand casedue in the principalparticular fiscal year, a sufficient amount of suchrevenues 568of obligationsthe thatstate inis anycommitted priorand, fiscalwithout yearnecessity couldfor havefurther beenact butof 569appropriation, wereshall notbe issuedpaid withinto thosethe fiscalbond yearservice limits.fund for the purpose of paying that debt service when due.

NoSec. obligations 570 shall be issued for the purposes of this section pursuant to 571 Section 2p of Article VIII, Ohio Constitution, until at least 572 one billion one hundred ninety-nine million five hundred 573 thousand dollars aggregate principal amount of obligations have 574 been issued pursuant to Section 2m of Article VIII, Ohio 575 Constitution.

Not more than one billion three hundred fifty 576 million dollars principal amount of obligations may be issued 577 pursuant to Section 2p of Article VIII, Ohio Constitution for 578 the purposes of this section.

579 (3) The issuing authority shall issue obligations to pay 580 costs of financing or assisting in the financing of the capital 581 improvement projects of local subdivisions pursuant to Section 582 2s of Article VIII, Ohio Constitution, section 151.01 of the 583 Revised Code, and this section.

Not more than one hundred 584 seventy-five million dollars in principal amount of such 585 obligations may be issued in any of the first five fiscal years 586 of issuance and not more than two hundred million dollars in 587 principal amount of such obligations may be issued in any of the 588 next five fiscal years, plus in each case the principal amount 589 of such obligations that in any prior fiscal year could have 590 been but were not issued within those fiscal year limits.

No 591 obligations shall be issued for the purposes of this section 592 S.

B.

No.

450 Page 21 As Passed by the Senate pursuant to Section 2s of Article VIII, Ohio Constitution, until 593 all of the obligations authorized under Section 2p of Article 594 VIII, Ohio Constitution, have been issued.

Not more than one 595 billion eight hundred seventy-five million dollars principal 596 amount of obligations may be issued pursuant to Section 2s of 597 Article VIII, Ohio Constitution, for the purposes of this 598 section.

599 (4) The issuing authority shall issue obligations to pay 600 costs of financing or assisting in the financing of the capital 601 improvement projects of local subdivisions pursuant to Section 602 2t of Article VIII, Ohio Constitution, section 151.01 of the 603 Revised Code, and this section.

Not more than two hundred fifty 604 million dollars in principal amount of such obligations may be 605 issued in each of the ten fiscal years of issuance, plus in each 606 case the principal amount of those obligations that in any prior 607 fiscal year could have been but were not issued within those 608 fiscal year limits.

No obligations shall be issued for the 609 purposes of this section pursuant to Section 2t of Article VIII, 610 Ohio Constitution, until all of the obligations authorized under 611 Section 2s of Article VIII, Ohio Constitution, have been issued.

612 Not more than two billion five hundred million dollars principal 613 amount of obligations may be issued pursuant to Section 2t of 614 Article VIII, Ohio Constitution, for the purposes of this 615 section.

616 (C) Net proceeds of obligations shall be deposited into 617 the state capital improvements fund created by section 164.08 of 618 the Revised Code.

619 (D) There is hereby created in the state treasury the 620 "state capital improvements bond service fund." All moneys 621 received by the state and required by the bond proceedings, 622 S.

B.

No.

450 Page 22 As Passed by the Senate consistent with this section and section 151.01 of the Revised 623 Code, to be deposited, transferred, or credited to the bond 624 service fund, and all other moneys transferred or allocated to 625 or received for the purposes of that fund, shall be deposited 626 and credited to the bond service fund, subject to any applicable 627 provisions of the bond proceedings but without necessity for any 628 act of appropriation.

During the period beginning with the date 629 of the first issuance of obligations and continuing during the 630 time that any obligations are outstanding in accordance with 631 their terms, so long as moneys in the bond service fund are 632 insufficient to pay debt service when due on those obligations 633 payable from that fund (except the principal amounts of bond 634 anticipation notes payable from the proceeds of renewal notes or 635 bonds anticipated) and due in the particular fiscal year, a 636 sufficient amount of revenues of the state is committed and, 637 without necessity for further act of appropriation, shall be 638 paid to the bond service fund for the purpose of paying that 639 debt service when due.

640 Sec.

For the purpose of allocating the funds made 641 available to finance public infrastructure capital improvement 642 projects of local subdivisions through the issuance of general 643S. obligations of the state of Ohio pursuant to Section 2k, 2m, 2p, 644 or 2s, or 2t of Article VIII, Ohio Constitution, the state is 645 divided into the following districts:

646 District one.

Cuyahoga county shall constitute district 647 one.

648 District two.

Hamilton county shall constitute district 649 two.

650 District three.

Franklin county shall constitute district 651 three.

652 S.

450 Page136th 23G.A. As Passed by the Senate District four.

Montgomeryobligations countyof shallthe constitutestate districtof 653Ohio four.pursuant to Section 2k, 2m, 2p, or 2s, or 2t of Article VIII, Ohio Constitution, the state is divided into the following districts:

654 District five.one.

Defiance,Cuyahoga Erie,county Fulton, Henry, Ottawa, 655 Paulding, Sandusky, Williams, and Wood counties shall constitute 656 district five.one.

657 District six.two.

MahoningHamilton andcounty Trumbull counties shall 658 constitute district six.two.

659 District seven.three.

Ashtabula,Franklin Geauga,county Lake, and Portage 660 counties shall constitute district seven.three.

661 District eight.four.

SummitMontgomery county shall constitute district 662four. eight.

663 District nine.five.

Lorain,Defiance, Huron,Erie, Fulton, Henry, Ottawa, Paulding, Sandusky, Williams, and MedinaWood counties shall 664 constitute district nine.five.

665 District ten.six.

Butler,Mahoning Clermont, Clinton, and WarrenTrumbull 666 counties shall constitute district ten.six.

667 District eleven.seven.

Champaign,Ashtabula, Clark,Geauga, Darke,Lake, Greene, Madison, 668 Miami, Preble, and UnionPortage counties shall constitute district 669seven. eleven.

670 District twelve.eight.

LucasSummit county shall constitute district 671eight. twelve.

672 District thirteen.nine.

Allen,Lorain, Auglaize,Huron, Hancock, Logan, 673 Mercer, Putnam, Shelby, and VanMedina Wert counties shall constitute 674 district thirteen.nine.

675 District fourteen.ten.

Carroll,Butler, Columbiana,Clermont, Coshocton,Clinton, 676 Guernsey, Harrison, Holmes, Jefferson, and TuscarawasWarren counties 677 shall constitute district fourteen.ten.

678 District fifteen.eleven.

Adams,Champaign, Brown,Clark, Fayette,Darke, Gallia,Greene, Highland,Madison, 679Miami, S.Preble, and Union counties shall constitute district eleven.

B.District twelve.

No.Lucas county shall constitute district twelve.

450District Pagethirteen. 24 As Passed by the Senate Jackson, Lawrence, Pike, Ross, Scioto, and Vinton counties shall 680 constitute district fifteen.

681Allen, DistrictAuglaize, sixteen.Hancock, Logan, Mercer, Putnam, Shelby, and Van Wert counties shall constitute district thirteen.

Ashland,District Crawford,fourteen. Hardin, Marion, 682 Richland, Seneca, Wayne, and Wyandot counties shall constitute 683 district sixteen.

684Carroll, DistrictColumbiana, seventeen.Coshocton, Guernsey, Harrison, Holmes, Jefferson, and Tuscarawas counties shall constitute district fourteen.

Delaware,District Fairfield,fifteen. Knox, Licking, 685 Morrow, and Pickaway counties shall constitute district 686 seventeen.

687Adams, DistrictBrown, eighteen.Fayette, Gallia, Highland, Jackson, Lawrence, Pike, Ross, Scioto, and Vinton counties shall constitute district fifteen.

Athens,District Belmont,sixteen. Hocking, Meigs, 688 Monroe, Morgan, Muskingum, Noble, Perry, and Washington counties 689 shall constitute district eighteen.

690Ashland, DistrictCrawford, nineteen.Hardin, Marion, Richland, Seneca, Wayne, and Wyandot counties shall constitute district sixteen.

StarkDistrict countyseventeen. shall constitute district 691 nineteen.

692Delaware, Sec.Fairfield, Knox, Licking, Morrow, and Pickaway counties shall constitute district seventeen.

District eighteen.

Athens, Belmont, Hocking, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, and Washington counties shall constitute district eighteen.

District nineteen.

Stark county shall constitute district nineteen.

Sec.

(A) Except as provided in sections 151.01 and 693 151.08 or section 164.09 of the Revised Code, the net proceeds 694 of obligations issued and sold by the treasurer of state 695 pursuant to section 164.09 of the Revised Code before September 696 30, 2000, or pursuant to sections 151.01 and 151.08 of the 697 Revised Code, for the purpose of financing or assisting in the 698 financing of the cost of public infrastructure capital 699 improvement projects of local subdivisions, as provided for in 700 Section 2k, 2m, 2p, or 2s, or 2t of Article VIII, Ohio 701 Constitution, and this chapter, shall be paid into the state 702 capital improvements fund, which is hereby created in the state 703 treasury.

Investment earnings on moneys in the fund shall be 704 credited to the fund.

705 (B) Beginning July 1, 2016, each program year the amount 706 of obligations authorized by the general assembly in accordance 707 with sections 151.01 and 151.08 or section 164.09 of the Revised 708 S.

450 Page136th 25G.A. As Passed by the Senate Code, excluding the proceeds of refunding or renewal 709 obligations, shall be allocated by the director of the Ohio 710 public works commission as follows:

711general (1)assembly First,in twelveaccordance perwith centsections of151.01 the amount of obligations 712 authorized shall be allocated to provide financial assistance to 713 villages and to151.08 townshipsor withsection populations164.09 inof the unincorporatedRevised 714Code, areasexcluding of the townshipproceeds of lessrefunding thanor fiverenewal thousandobligations, persons,shall forbe 715allocated capitalby improvementsthe indirector accordance with section 164.051 and 716 division (D) of sectionthe 164.06Ohio ofpublic theworks Revisedcommission Code.as follows:

As(1) usedFirst, twelve per cent of the amount of obligations authorized shall be allocated to provide financial assistance to villages and to townships with populations in 717the divisionunincorporated (B)(1)areas of thisthe section,township "capitalof improvements"less includesthan 718five resurfacingthousand persons, for capital improvements in accordance with section 164.051 and improvingdivision roads.(D) of section 164.06 of the Revised Code.

719As (2)used Followingin the allocation required by division (B)(1) 720 of this section, the"capital directorimprovements" mayincludes allocateresurfacing two per cent of the 721 authorized obligations to provide financial assistance to local 722 subdivisions for capital improvement projects which in the 723 judgment of the director of the Ohio public works commission are 724 necessary for the immediate preservation of the health, safety, 725 and welfareimproving ofroads. the citizens of the local subdivision requesting 726 assistance.

Starting(2) JulyFollowing 1,the 2021,allocation required by division (B)(1) of this section, the director may allocate uptwo 727 to six per cent of the authorized obligations asto providedprovide financial assistance to local subdivisions for capital improvement projects which in thisthe 728judgment division.of the director of the Ohio public works commission are necessary for the immediate preservation of the health, safety, and welfare of the citizens of the local subdivision requesting assistance.

729Starting (3)July The1, director2021, shall determine the amountdirector ofmay theallocate 730up remaining obligations authorized to besix issuedper andcent soldof thatauthorized eachobligations 731as countyprovided wouldin receivethis ifdivision. such amounts were allocated on a per 732 capita basis each year.

If(3) aThe county'sdirector pershall capitadetermine share for the 733amount yearof would be less than three hundred thousand dollars, the 734remaining directorobligations shallauthorized allocate to thebe districtissued inand whichsold that each county iswould 735receive locatedif ansuch amountamounts equalwere toallocated theon differencea between three hundred 736 thousand dollars and the county's per capita share.basis each year.

737If (4)a Aftercounty's makingper capita share for the allocationyear requiredwould bybe divisionless (B)than 738three S.hundred thousand dollars, the director shall allocate to the district in which that county is located an amount equal to the difference between three hundred thousand dollars and the county's per capita share.

(4) After making the allocation required by division (B)(3) of this section, the director shall allocate the remaining amount to each district on a per capita basis.

(C)(1) There is hereby created in the state treasury the state capital improvements revolving loan fund, into which shall be deposited all repayments of loans made to local subdivisions for capital improvements pursuant to this chapter.

Investment earnings on moneys in the fund shall be credited to the fund.

(2) There may also be deposited in the state capital improvements revolving loan fund moneys obtained from federal or private grants, or from other sources, which are to be used for any of the purposes authorized by this chapter.

Such moneys shall be allocated each year in accordance with division (B)(4) of this section.

(3) Moneys deposited into the state capital improvements revolving loan fund shall be used to make loans for the purpose of financing or assisting in the financing of the cost of capital improvement projects of local subdivisions.

(4) Investment earnings credited to the state capital improvements revolving loan fund that exceed the amounts required to meet estimated federal arbitrage rebate requirements shall be used to pay costs incurred by the public works commission in administering this section.

Investment earnings credited to the state capital improvements revolving loan fund that exceed the amounts required to pay for the administrative costs and estimated rebate requirements shall be allocated to each district on a per capita basis.

S.

450 Page136th 26G.A. As Passed by the Senate (3) of this section, the director shall allocate the remaining 739 amount to each district on a per capita basis.

740(5) (C)(1)Each Thereprogram isyear, herebyloan createdrepayments inreceived theand stateon treasurydeposit in the 741 state capital improvements revolving loan fund,fund into which shall 742 be depositedallocated allas repaymentsfollows: of loans made to local subdivisions 743 for capital improvements pursuant to this chapter.

Investment(a) 744Each earningsdistrict onpublic moneysworks inintegrating thecommittee fund shall be creditedallocated an amount equal to the fund.sum of all loan repayments made to the state capital improvements revolving loan fund by local subdivisions that are part of the district.

745Moneys (2)not Thereused may also be deposited in thea stateprogram capitalyear 746may improvementsbe revolvingused loanin fundthe moneysnext obtainedprogram fromyear federalin orthe 747same privatemanner grants,and or from other sources, which are to be used for 748 any of the purposessame authorizedpurpose byas thisoriginally chapter.allocated.

Such(b) moneysLoan 749repayments made pursuant to projects approved under division (B)(1) of this section shall be allocatedused eachto yearmake loans in accordance with section 164.051 and division (B)(4)(D) 750of section 164.06 of thisthe section.Revised Code.

751Allocations (3)for Moneysthis depositedpurpose intomade thepursuant stateto capitaldivision improvements(C)(5) 752of revolvingthis loansection fund shall be usedin addition to make loans for the purposeallocation 753provided of financing or assisting in thedivision financing(B)(1) of thethis costsection. of 754 capital improvement projects of local subdivisions.

755(c) (4)Loan Investmentrepayments earningsmade creditedpursuant to theprojects stateapproved capitalunder 756division improvements(B)(2) revolvingof loanthis fundsection that exceed the amounts 757 required to meet estimated federal arbitrage rebate requirements 758 shall be used to paymake costsloans incurredin byaccordance thewith publicdivision works(B)(2) 759of commission in administering this section.

InvestmentAllocations earningsfor 760this creditedpurpose tomade thepursuant state capital improvements revolving loan fund 761 that exceed the amounts required to paydivision for(C)(5) theof administrativethis 762section costs and estimated rebate requirements shall be allocatedin addition to 763the eachallocation districtprovided onin adivision per(B)(2) capitaof basis.this section.

764(d) (5)Loans Eachmade programfrom year,the loanstate repaymentscapital receivedimprovements andrevolving onloan 765fund depositshall not be limited in thetheir stateusage capitalby improvementsdivisions revolving(E), loan(F), fundand 766(G) shallof besection allocated164.05 asof follows:the Revised Code.

767(D) S.Investment earnings credited to the state capital improvements fund that exceed the amounts required to meet estimated federal arbitrage rebate requirements shall be used to pay costs incurred by the public works commission in administering sections 164.01 to 164.12 of the Revised Code.

B.(E) The director of the Ohio public works commission shall notify the director of budget and management of the amounts allocated pursuant to this section and such information shall be entered into the state accounting system.

No.The director of budget and management shall establish appropriation line items as needed to track these allocations.

450(F) PageIf 27the Asamount Passedof bya district's allocation in a program year exceeds the Senateamount (a)of Eachfinancial assistance approved for the district publicby worksthe integratingcommission committeefor shallthat 768year, bethe allocatedremaining anportion amountof equalthe district's allocation shall be added to the sumdistrict's allocation pursuant to division (B) of allthis loansection repaymentsfor 769the madenext tosucceeding year for use in the statesame capitalmanner improvementsand revolvingfor loanthe fundsame bypurposes 770as localit subdivisionswas originally allocated, except that areany partportion of a district's allocation which was available for use on new or expanded infrastructure pursuant to division (G) of section 164.05 of the district.Revised Code shall be available in succeeding years only for the repair and replacement of existing infrastructure.

Moneys(G) notWhen 771an usedallocation inbased aon programpopulation yearis maymade beby usedthe indirector thepursuant nextto programdivision year(B) inof 772this section, the samedirector mannershall use the most recent decennial census statistics, and forshall thenot samemake purposeany asreallocations originallybased 773upon allocated.a change in a district's population.

774Sec. (b) Loan repayments made pursuant to projects approved 775 under division (B)(1) of this section shall be used to make 776 loans in accordance with section 164.051 and division (D) of 777 section 164.06 of the Revised Code.

Allocations for this purpose 778 made pursuant to division (C)(5) of this section shall be in 779 addition to the allocation provided in division (B)(1) of this 780 section.

781 (c) Loan repayments made pursuant to projects approved 782 under division (B)(2) of this section shall be used to make 783 loans in accordance with division (B)(2) of this section.

784 Allocations for this purpose made pursuant to division (C)(5) of 785 this section shall be in addition to the allocation provided in 786 division (B)(2) of this section.

787 (d) Loans made from the state capital improvements 788 revolving loan fund shall not be limited in their usage by 789 divisions (E), (F), and (G) of section 164.05 of the Revised 790 Code.

791 (D) Investment earnings credited to the state capital 792 improvements fund that exceed the amounts required to meet 793 estimated federal arbitrage rebate requirements shall be used to 794 pay costs incurred by the public works commission in 795 administering sections 164.01 to 164.12 of the Revised Code.

796 S.

B.

No.

450 Page 28 As Passed by the Senate (E) The director of the Ohio public works commission shall 797 notify the director of budget and management of the amounts 798 allocated pursuant to this section and such information shall be 799 entered into the state accounting system.

The director of budget 800 and management shall establish appropriation line items as 801 needed to track these allocations.

802 (F) If the amount of a district's allocation in a program 803 year exceeds the amount of financial assistance approved for the 804 district by the commission for that year, the remaining portion 805 of the district's allocation shall be added to the district's 806 allocation pursuant to division (B) of this section for the next 807 succeeding year for use in the same manner and for the same 808 purposes as it was originally allocated, except that any portion 809 of a district's allocation which was available for use on new or 810 expanded infrastructure pursuant to division (G) of section 811 164.05 of the Revised Code shall be available in succeeding 812 years only for the repair and replacement of existing 813 infrastructure.

814 (G) When an allocation based on population is made by the 815 director pursuant to division (B) of this section, the director 816 shall use the most recent decennial census statistics, and shall 817 not make any reallocations based upon a change in a district's 818 population.

819 Sec.

(A) The board of education of any school 820 district that is receiving assistance under sections 3318.01 to 821 3318.20 of the Revised Code after May 20, 1997, or under section 822 3318.33 or sections 3318.40 to 3318.45 of the Revised Code, and 823 whose project is still under construction, may request that the 824 Ohio facilities construction commission examine whether the 825 circumstances prescribed in either division (B)(1) or (2) of 826 S.

450 Page136th 29G.A. As Passed by the Senate this section exist in the school district.

Ifcircumstances theprescribed commissionin soeither 827division finds,(B)(1) theor commission(2) shallof reviewthis thesection school district's 828 original assessment and approved project and consider providing 829 additional assistance to the school district to correct the 830 prescribed conditions found to exist in the school district.

AdditionalIf 831the assistancecommission underso thisfinds, sectionthe commission shall bereview limitedthe toschool additionsdistrict's tooriginal 832assessment oneand orapproved moreproject buildings,and remodelingconsider ofproviding oneadditional orassistance moreto buildings,the orschool 833district changes to correct the infrastructureprescribed ofconditions onefound orto moreexist buildings.in the district.

834Additional (B)assistance Considerationunder ofthis additionalsection assistanceshall be limited to aadditions schoolto 835one districtor undermore thisbuildings, sectionremodeling isof warrantedone inor eithermore ofbuildings, or changes to the 836infrastructure followingof circumstances:one or more buildings.

837(B) (1)Consideration Additionalof workadditional isassistance needed to correcta anschool oversightdistrict orunder 838this deficiencysection notis identifiedwarranted orin includedeither inof the district'sfollowing initialcircumstances: 839 assessment.

840(1) (2)Additional Otherwork conditionsis existneeded that,to incorrect thean opinionoversight of the 841 commission, warrant additions or remodelingdeficiency ofnot theidentified project 842 facilities or changesincluded toin infrastructure associated with the 843 district's project that were not identified in the initial 844assessment. assessment and plan.

845(2) (C)Other Ifconditions theexist commissionthat, decides in favorthe opinion of providingthe 846commission, additionalwarrant assistanceadditions toor anyremodeling schoolof district under this section, 847 the schoolproject districtfacilities shallor bechanges responsibleto forinfrastructure payingassociated forwith its 848 portion of the costdistrict's ofproject thethat additions,were remodeling,not oridentified 849in infrastructure changes pursuant to section 3318.083 of the 850initial Revisedassessment Code.and plan.

If,(C) afterIf makingthe acommission financialdecides evaluationin favor of theproviding 851additional schoolassistance district,to theany commission determines that the school 852 district isunder unablethis withoutsection, undue hardship, according to the 853school guidelinesdistrict adoptedshall bybe theresponsible commission,for topaying fundfor theits school 854 district portion of the increase,cost thenof the stateadditions, andremodeling, theor schoolinfrastructure 855changes districtpursuant shallto entersection into3318.083 anof agreement whereby the stateRevised shallCode. 856 S.

B.If, after making a financial evaluation of the school district, the commission determines that the school district is unable without undue hardship, according to the guidelines adopted by the commission, to fund the school district portion of the increase, then the state and the school district shall enter into an agreement whereby the state shall pay the portion of the cost increase attributable to the school district which is determined to be in excess of any local resources available to the district and the district shall thereafter reimburse the state.

No.The commission shall establish the district's schedule for reimbursing the state, which shall not extend beyond ten years.

450The Pagecommission 30may Aslengthen Passed by the Senatereimbursement payschedule the portion of thea costschool increasedistrict attributablethat tohas theentered schoolinto 857an districtagreement whichunder isthis determinedsection prior to beSeptember in26, excess2003, ofas anylong localas 858 resources available to the districttotal andterm theof districtthat shallschedule 859does thereafternot reimburseextend thebeyond state.ten years.

TheDebt commissionincurred under this section shall establishnot 860be included in the district'scalculation scheduleof forthe reimbursingnet indebtedness of the state,school whichdistrict shallunder 861section not133.06 extendof beyondthe tenRevised years.Code.

TheSec. commission may lengthen the 862 reimbursement schedule of a school district that has entered 863 into an agreement under this section prior to September 26, 864 2003, as long as the total term of that schedule does not extend 865 beyond ten years.

Debt incurred under this section shall not be 866 included in the calculation of the net indebtedness of the 867 school district under section 133.06 of the Revised Code.

868 Sec.

(A) The Ohio facilities construction 869 commission shall establish and administer the aging school 870 accelerator pilot program.

The commission shall adopt guidelines 871 and procedures for the pilot program.

Under the pilot program, 872 the commission shall provide support for the classroom 873 facilities projects of each school district that meets the 874 following criteria on or before the effective date of this 875 section:

876 (1) The district has at least one building that is used 877 primarily for classroom instruction in which all or a 878 significant portion of the structure is at least one hundred 879 years old.

880 (2) The district has never been approved to receive 881 assistance under sections 3318.01 to 3318.20 of the Revised Code 882 or has not completed all segments of a project approved under 883 those sections.

884 (3) The district's operating expenditure per pupil for 885 fiscal year 2025 was in the lowest twenty-five per cent of all 886 S.

450 Page136th 31G.A. As Passed by the Senate school districts in the state.

887twenty-five (4)per Thecent districtof qualifies to serve all ofschool itsdistricts students in 888 one school building according to the commission'sstate. policies.

889(4) (B) The commissiondistrict shallqualifies determineto whichserve schoolall districtsof 890its qualifystudents forin theone pilotschool programbuilding andaccording notifyto the qualifyingcommission's 891policies. districts.

To(B) participateThe incommission the pilot program, a qualifying 892 district annually shall setdetermine asidewhich theschool equivalentdistricts ofqualify one-half 893 mill for each dollar of valuation for maintenance on the 894pilot project,program for a number of years and innotify a manner determined by the 895qualifying commission.districts.

896To (C)participate Thein commissionthe shallpilot setprogram, asidea fromqualifying thedistrict amountsannually 897shall appropriatedset toaside the commissionequivalent forof classroomone-half facilitiesmill 898 assistance projects for theeach appropriatedollar fiscalof yearvaluation anfor amountmaintenance 899on determined by the commissionproject, tofor bea adequatenumber toof serveyears qualifying 900 districts and offerin thea fundingmanner todetermined qualifyingby districts.the commission.

(C) The 901commission stateshall shareset ofaside from the basicamounts projectappropriated costto forthe acommission for classroom facilities 902assistance projectprojects underfor the pilotappropriate programfiscal shallyear an amount determined by the commission to be atadequate leastto fortyserve perqualifying centdistricts 903and ofoffer the totalfunding projectto cost.qualifying districts.

904The (D)state Onceshare a pilot project is completed under this section, 905 the project shall be considered served and ineligible for 906 further assistance under sections 3318.01 to 3318.20 of the 907basic Revisedproject Code,cost except for thea correctiveclassroom actionfacilities programproject 908 established under section 3318.49 of the Revisedpilot Codeprogram andshall anybe 909at additionalleast assistanceforty providedper undercent section 3318.042 of the 910total Revisedproject Codecost. to cover the district's portion of the cost for 911 that program.

912(D) Sec.Once a pilot project is completed under this section, the project shall be considered served and ineligible for further assistance under sections 3318.01 to 3318.20 of the Revised Code, except for the corrective action program established under section 3318.49 of the Revised Code and any additional assistance provided under section 3318.042 of the Revised Code to cover the district's portion of the cost for that program.

Sec.

(A) The corrective action program is hereby 913 established to provide funding for the correction of work, in 914 connection with a project funded under sections 3318.01 to 9153318.20 S.or, section 3318.33, or sections 3318.40 to 3318.45 of the Revised Code, that is found after occupancy of the facility to be defective or to have been omitted.

(B) The Ohio facilities construction commission may provide funding under this section only if the school district notifies the executive director of the commission of the defective or omitted work within five years after occupancy of the facility for which the district seeks the funding.

(C) The commission shall establish procedures and deadlines for school districts to follow in applying for assistance under this section.

The procedures shall include definitions of "defective" and "omitted," and shall require that remediation efforts focus first on engaging the respective contractors that designed and constructed the areas that have design or construction-related issues.

The commission shall consider applications on a case-by-case basis, taking into account the amount of money appropriated and available for purposes of this section.

(D) The commission may provide funding assistance necessary to take corrective measures after evaluating the defective or omitted work.

(1) If the work to be corrected or remediated is part of a project not yet completed, the commission may amend the project agreement to increase the project budget and use corrective action funding to provide the state portion of the amendment.

If the work to be corrected or remediated is part of a completed project and funds were retained or transferred pursuant to division (C) of section 3318.12 of the Revised Code, the commission may enter into a new agreement to S.

450 Page136th 32G.A. As Passed by the Senate 3318.20 or, section 3318.33, or sections 3318.40 to 3318.45 of 916 the Revised Code, that is found after occupancy of the facility 917 to be defective or to have been omitted.

918address (B) The Ohio facilities construction commission may 919 provide funding under this section only if the schoolcorrective districtaction. 920 notifies the executive director of the commission of the 921 defective or omitted work within five years after occupancy of 922 the facility for which the district seeks the funding.

923(2) (C)Whether Theor commissionnot the project is completed, the district shall establishcontribute proceduresa andportion 924of deadlinesthe forcost schoolof districtsthe corrective action, to followbe determined in applyingaccordance forwith 925section assistance3318.032 underof thisthe section.Revised Code or, if the district is a joint vocational school district, section 3318.42 of the Revised Code.

TheA proceduresdistrict shallthat includeis 926unable definitionsto ofprovide "defective"its andportion "omitted,"so and shall require that 927 remediation effortscan focusproceed firstmay onapply engagingto the respectivecommission 928for contractorsadditional thatassistance designedunder andsection constructed3318.042 of the areasRevised thatCode. have 929 design or construction-related issues.

(E) The commission shall 930assess considerresponsibility applicationsfor on a case-by-case basis, taking into 931 account the amountdefective ofor moneyomitted appropriatedwork and availableseek forcost 932recovery purposesfrom ofresponsible thisparties, section.if applicable.

933Any (D)recovery Theof commissionthe mayexpense provideof fundingremediation assistanceshall 934be necessaryapplied first to takethe correctivedistrict measuresportion afterof evaluating the 935cost defectiveof orthe omittedcorrective work.action.

936Any (1)remaining Iffunds theshall work to be correctedapplied orto remediated is part of a 937 project not yet completed, the commissionstate mayportion amendand thedeposited projectinto 938 agreement to increase the projectschool budgetbuilding andprogram useassistance correctivefund 939established actionunder fundingsection to3318.25 provide the state portion of the amendment.Revised Code.

IfSec. 940 the work to be corrected or remediated is part of a completed 941 project and funds were retained or transferred pursuant to 942 division (C) of section 3318.12 of the Revised Code, the 943 commission may enter into a new agreement to address the 944 corrective action.

945 S.

B.

No.

450 Page 33 As Passed by the Senate (2) Whether or not the project is completed, the district 946 shall contribute a portion of the cost of the corrective action, 947 to be determined in accordance with section 3318.032 of the 948 Revised Code or, if the district is a joint vocational school 949 district, section 3318.42 of the Revised Code.

A district that 950 is unable to provide its portion so that remediation can proceed 951 may apply to the commission for additional assistance under 952 section 3318.042 of the Revised Code.

953 (E) The commission shall assess responsibility for the 954 defective or omitted work and seek cost recovery from 955 responsible parties, if applicable.

Any recovery of the expense 956 of remediation shall be applied first to the district portion of 957 the cost of the corrective action.

Any remaining funds shall be 958 applied to the state portion and deposited into the school 959 building program assistance fund established under section 960 3318.25 of the Revised Code.

961 Sec.

The Subject to section 3343.11 of the 962 Revised Code, the board of trustees of Central state university 963 shall take, keep, and maintain exclusive authority, direction, 964 supervision, and control over the operations and conduct of such 965 university, so as to assure for said university the best 966 attainable results with the aid secured to it from the state.

967 The board shall provide courses of study in accordance 968 with the standards of the department of education and workforce, 969 and create, establish, provide for, and maintain such 970 industrial, vocational, agricultural, home economics, 971 commercial, business administration, technical, and collegiate 972 subjects leading to the bachelors degree in arts and sciences.

973 The board may provide for other courses and degrees.

974 Sec.

The board of trustees of Central state 975university S.shall enter into an agreement with either the department of administrative services or another governmental third party under which the Central state university board of trustees transfers oversight authority for the management of the university's facilities to the department or other governmental third party.

B.Sec.

No.

450 Page 34 As Passed by the Senate university shall enter into an agreement with either the 976 department of administrative services or another governmental 977 third party under which the Central state university board of 978 trustees transfers oversight authority for the management of the 979 university's facilities to the department or other governmental 980 third party.

981 Sec.

(A) For the purpose of funding the needs of 982 this state and its local governments, there is hereby levied a 983 commercial activity tax on each person with taxable gross 984 receipts for the privilege of doing business in this state.

For 985 the purposes of this chapter, "doing business" means engaging in 986 any activity, whether legal or illegal, that is conducted for, 987 or results in, gain, profit, or income, at any time during a 988 calendar year.

Persons on which the commercial activity tax is 989 levied include, but are not limited to, persons with substantial 990 nexus with this state.

The tax imposed under this section is not 991 a transactional tax and is not subject to Public Law No.

86-272, 99273 Stat.

The tax imposed under this section is in addition 993 to any other taxes or fees imposed under the Revised Code.

The 994 tax levied under this section is imposed on the person receiving 995 the gross receipts and is not a tax imposed directly on a 996 purchaser.

The tax imposed by this section is an annual 997 privilege tax for the calendar year that contains all tax 998 periods in the calendar year.

A taxpayer is subject to the 999 annual privilege tax for doing business during any portion of 1000 such calendar year.

1001 (B) The tax imposed by this section is a tax on the 1002 taxpayer and shall not be billed or invoicedS. to another person.

1003 Even if the tax or any portion thereof is billed or invoiced and 1004 separately stated, such amounts remain part of the price for 1005 purposes of the sales and use taxes levied under Chapters 5739.

1006 S.

450 Page136th 35G.A. As Passed by the Senate and 5741.

invoiced to another person.

Even if the tax or any portion thereof is billed or invoiced and separately stated, such amounts remain part of the price for purposes of the sales and use taxes levied under Chapters 5739.

and 5741.

Nothing in division (B) of this 1007 section prohibits:

1008 (1) A person from including in the price charged for a 1009 good or service an amount sufficient to recover the tax imposed 1010 by this section;

or 1011 (2) A lessor from including an amount sufficient to 1012 recover the tax imposed by this section in a lease payment 1013 charged, or from including such an amount on a billing or 1014 invoice pursuant to the terms of a written lease agreement 1015 providing for the recovery of the lessor's tax costs.

The 1016 recovery of such costs shall be based on an estimate of the 1017 total tax cost of the lessor during the tax period, as the tax 1018 liability of the lessor cannot be calculated until the end of 1019 that period.

1020 (C)(1) The commercial activities tax receipts fund is 1021 hereby created in the state treasury and shall consist of money 1022 arising from the tax imposed under this chapter.

Sixty-five one-one-hundredths 1023 hundredths of one per cent of the money credited to that fund 1024 shall be credited to the revenue enhancement fund and shall be 1025 used to defray the costs incurred by the department of taxation 1026 in administering the tax imposed by this chapter and in 1027 implementing tax reform measures.

The remainder of the money in 1028 the commercial activities tax receipts fund shall first be 1029 credited to the fund described in division (C)(2)(C) (2) of this 1030 section, as provided in that division, and the remainder shall 1031 be credited to the general revenue fund.

1032 (2) Not later than the twentieth day of February, May, 1033 August, and November of each year, the commissioner shall 1034 provide for payment to the commercial activity tax motor fuel 1035 receipts fund of an amount that bears the same ratio to the 1036balance S.in the commercial activities tax receipts fund that (a) the taxable gross receipts attributed to motor fuel used for propelling vehicles on public highways as indicated by returns filed by the tenth day of that month for a liability that is due and payable on or after July 1, 2013, for a tax period ending before July 1, 2014, bears to (b) all taxable gross receipts as indicated by those returns for such liabilities.

(D)(1) There is hereby created in the state treasury the commercial activity tax motor fuel receipts fund.

(2) On or before the fifteenth day of June of each fiscal year beginning with fiscal year 2015, the director of the Ohio public works commission shall certify to the director of budget and management the amount of debt service paid from the general revenue fund in the current fiscal year on bonds issued to finance or assist in the financing of the cost of local subdivision public infrastructure capital improvement projects, as provided for in Sections 2k, 2m, 2p, and 2s, and 2t of Article VIII, Ohio Constitution, that are attributable to costs for construction, reconstruction, maintenance, or repair of public highways and bridges and other statutory highway purposes.

That certification shall allocate the total amount of debt service paid from the general revenue fund and attributable to those costs in the current fiscal year according to the applicable section of the Ohio Constitution under which the bonds were originally issued.

(3) On or before the thirtieth day of June of each fiscal year beginning with fiscal year 2015, S.

450 Page136th 36G.A. As Passed by the Senate balance in the commercial activities tax receipts fund that (a) 1037 the taxable gross receipts attributed to motor fuel used for 1038 propelling vehicles on public highways as indicated by returns 1039 filed by the tenth day of that month for a liability that is due 1040 and payable on or after July 1, 2013, for a tax period ending 1041 before July 1, 2014, bears to (b) all taxable gross receipts as 1042 indicated by those returns for such liabilities.

1043the (D)(1)director Thereof isbudget herebyand createdmanagement inshall determine an amount up to but not exceeding the stateamount treasurycertified under division (D)(2) of this section and shall reserve that amount from the 1044cash balance in the petroleum activity tax public highways fund or the commercial activity tax motor fuel receipts fund.fund for transfer to the general revenue fund at times and in amounts to be determined by the director.

1045The (2)director Onshall ortransfer before the fifteenthcash daybalance ofin Junethe ofpetroleum eachactivity fiscaltax 1046public yearhighways beginningfund withor fiscal year 2015, the directorcommercial ofactivity thetax Ohiomotor 1047fuel publicreceipts worksfund commissionin shallexcess certify to the director of budget 1048 and management the amount ofso debtreserved serviceto paid from the generalhighway 1049operating revenue fund in the current fiscal year on bonds issued to 1050 finance or assistbefore in the financingthirtieth ofday the cost of localJune 1051 subdivision public infrastructure capital improvement projects, 1052 as provided for in Sections 2k, 2m, 2p, and 2s, and 2t of 1053the Articlecurrent VIII,fiscal Ohioyear. Constitution, that are attributable to costs 1054 for construction, reconstruction, maintenance, or repair of 1055 public highways and bridges and other statutory highway 1056 purposes.

ThatSec. certification shall allocate the total amount of 1057 debt service paid from the general revenue fund and attributable 1058 to those costs in the current fiscal year according to the 1059 applicable section of the Ohio Constitution under which the 1060 bonds were originally issued.

1061 (3) On or before the thirtieth day of June of each fiscal 1062 year beginning with fiscal year 2015, the director of budget and 1063 management shall determine an amount up to but not exceeding the 1064 amount certified under division (D)(2) of this section and shall 1065 reserve that amount from the cash balance in the petroleum 1066 S.

B.

No.

450 Page 37 As Passed by the Senate activity tax public highways fund or the commercial activity tax 1067 motor fuel receipts fund for transfer to the general revenue 1068 fund at times and in amounts to be determined by the director.

1069 The director shall transfer the cash balance in the petroleum 1070 activity tax public highways fund or the commercial activity tax 1071 motor fuel receipts fund in excess of the amount so reserved to 1072 the highway operating fund on or before the thirtieth day of 1073 June of the current fiscal year.

1074 Sec.

No determinations, computations, 1075 certifications, or payments shall be made under this section 1076 after June 30, 2015.

1077 (A) As used in sections 5751.20 to 5751.22 of the Revised 1078 Code:

1079 (1) "School district," "joint vocational school district," 1080 "local taxing unit," "recognized valuation," "fixed-rate levy," 1081 and "fixed-sum levy" have the same meanings as used in section 1082 5727.84 of the Revised Code.

1083 (2) "State education aid" for a school district means the 1084 following:

1085 (a) For fiscal years prior to fiscal year 2010, the sum of 1086 state aid amounts computed for the district under the following 1087 provisions, as they existed for the applicable fiscal year:

1088 division (A) of section 3317.022 of the Revised Code, including 1089 the amounts calculated under former section 3317.029 and section 1090 3317.0217 of the Revised Code;

divisions (C)(1), (C)(4), (D), 1091 (E), and (F) of section 3317.022;

divisions (B), (C), and (D) of 1092 section 3317.023;

1093 section 3317.0216;

and any unit payments for gifted student 1094 services paid under section 3317.05 and former sections 3317.052 1095and S.3317.053 of the Revised Code;

except that, for fiscal years 2008 and 2009, the amount computed for the district under Section 269.20.80 of H.B.

119 of the 127th general assembly and as that section subsequently may be amended shall be substituted for the amount computed under division (D) of section 3317.022 of the Revised Code, and the amount computed under Section 269.30.80 of H.B.

119 of the 127th general assembly and as that section subsequently may be amended shall be included.

(b) For fiscal years 2010 and 2011, the sum of the amounts computed under former sections 3306.052, 3306.12, 3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code;

(c) For fiscal years 2012 and 2013, the sum of the amounts paid under Sections 267.30.50, 267.30.53, and 267.30.56 of H.B.

153 of the 129th general assembly;

(d) For fiscal year 2014 and each fiscal year thereafter, the sum of state amounts computed for the district under section 3317.022 of the Revised Code;

except that, for fiscal years 2014 and 2015, the amount computed for the district under the section of this act entitled "TRANSITIONAL AID FOR CITY, LOCAL, AND EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.

(3) "State education aid" for a joint vocational school district means the following:

(a) For fiscal years prior to fiscal year 2010, the sum of the state aid computed for the district S.

450 Page136th 38G.A. As Passed by the Senate and 3317.053 of the Revised Code;

under division (N) of section 3317.024 and former section 3317.16 of the Revised Code, except that, for fiscal years 10962008 and 2009, the amount computed for the district under 1097 Section 269.20.80269.30.80 of H.B.

119 of the 127th general assembly and 1098 as that section subsequently may be amended shall be substitutedincluded. 1099 for the amount computed under division (D) of section 3317.022 1100 of the Revised Code, and the amount computed under Section 1101 269.30.80 of H.B.

119(b) ofFor thefiscal 127thyears general2010 assembly and as2011, thatthe 1102amount sectionpaid subsequentlyin mayaccordance bewith amendedSection shall265.30.50 beof included.H.B.

11031 (b) For fiscal years 2010 and 2011, the sum of the amounts128th 1104general computedassembly. under former sections 3306.052, 3306.12, 3306.13, 1105 3306.19, 3306.191, and 3306.192 of the Revised Code;

1106 (c) For fiscal years 2012 and 2013, the sumamount of the amounts 1107 paid underin Sectionsaccordance 267.30.50,with 267.30.53,Section and267.30.60 267.30.56 of H.B.

1108153 of the 129th general assembly;assembly.

1109 (d) For fiscal year 2014 and each fiscal year thereafter, 1110 the sumamount of state amounts computed for the district under section 11113317.16 3317.022 of the Revised Code;

except that, for fiscal years 2014 1112 and 2015, the amount computed for the district under the section 1113 of this act entitled "TRANSITIONAL AID FOR CITY,JOINT LOCAL,VOCATIONAL AND 1114 EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.

1115(4) (3) "State education aid"aid offset" means the amount determined for aeach school district or joint vocational school 1116 district meansunder division (A)(1) of section 5751.21 of the following:Revised Code.

1117(5) (a)"Machinery For fiscal years prior to fiscal year 2010, the sum of 1118 the state aid computed for the district under division (N) of 1119 section 3317.024 and formerequipment sectionproperty 3317.16tax ofvalue theloss" Revisedmeans Code, 1120 except that, for fiscal years 2008 and 2009, the amount computeddetermined 1121 under Sectiondivision 269.30.80(C)(1) of H.B.this section.

119(6) of"Inventory theproperty 127thtax generalvalue 1122loss" assemblymeans andthe asamount thatdetermined sectionunder subsequentlydivision may(C)(2) beof amendedthis shallsection. 1123 be included.

1124(7) S."Furniture and fixtures property tax value loss" means the amount determined under division (C)(3) of this section.

(8) "Machinery and equipment fixed-rate levy loss" means the amount determined under division (D)(1) of this section.

(9) "Inventory fixed-rate levy loss" means the amount determined under division (D)(2) of this section.

(10) "Furniture and fixtures fixed-rate levy loss" means the amount determined under division (D)(3) of this section.

(11) "Total fixed-rate levy loss" means the sum of the machinery and equipment fixed-rate levy loss, the inventory fixed-rate levy loss, the furniture and fixtures fixed-rate levy loss, and the telephone company fixed-rate levy loss.

(12) "Fixed-sum levy loss" means the amount determined under division (E) of this section.

(13) "Machinery and equipment" means personal property subject to the assessment rate specified in division (F) of section 5711.22 of the Revised Code.

(14) "Inventory" means personal property subject to the assessment rate specified in division (E) of section 5711.22 of the Revised Code.

(15) "Furniture and fixtures" means personal property subject to the assessment rate specified in division (G) of section 5711.22 of the Revised Code.

(16) "Qualifying levies" are levies in effect for tax year 2004 or applicable to tax year 2005 or approved at an election conducted before September 1, 2005.

For the purpose of determining the rate of a qualifying levy authorized by section 5705.212 or 5705.213 of the Revised Code, the rate S.

450 Page136th 39G.A. As Passed by the Senate (b) For fiscal years 2010 and 2011, the amount paid in 1125 accordance with Section 265.30.50 of H.B.

1shall ofbe the 128thrate generalthat 1126would assembly.be in effect for tax year 2010.

1127(17) (c)"Telephone Forproperty" fiscalmeans yearstangible 2012personal andproperty 2013,of thea amounttelephone, paidtelegraph, inor 1128interexchange accordancetelecommunications withcompany Sectionsubject 267.30.60to an assessment rate specified in section 5727.111 of H.B.the Revised Code in tax year 2004.

153(18) of"Telephone property tax value loss" means the 129thamount 1129determined generalunder assembly.division (C)(4) of this section.

1130(19) (d)"Telephone Forproperty fiscalfixed-rate yearlevy 2014loss" andmeans each fiscal year thereafter, 1131 the amount computeddetermined for the district under sectiondivision 3317.16(D)(4) of 1132this thesection. Revised Code;

except(20) that,"Taxes forcharged fiscaland yearspayable" 2014means taxes charged and 2015,payable 1133after the amountreduction computedrequired forby thesection district319.301 underof the sectionRevised ofCode thisbut 1134before actthe entitledreductions "TRANSITIONALrequired AIDby FORsections JOINT319.302 VOCATIONALand SCHOOL323.152 1135of DISTRICTS"the shallRevised beCode. included.

1136(21) (4)"Median "Stateestate educationtax aidcollections" offset"means, meansin the amountcase 1137of determineda formunicipal eachcorporation schoolto districtwhich orrevenue jointfrom vocationalthe schooltaxes 1138levied districtin underChapter division5731. (A)(1) of section 5751.21 of the Revised 1139 Code.

1140of (5)the "MachineryRevised andCode equipmentwas propertydistributed taxin valueeach loss"of 1141calendar meansyears the2006, amount2007, determined2008, underand division2009, (C)(1)the median of thisthose 1142distributions. section.

1143In (6)the "Inventorycase propertyof taxa valuemunicipal loss"corporation meansto thewhich amountno 1144distributions determinedwere undermade divisionin (C)(2)one or more of thisthose section.years, "median estate tax collections" means zero.

1145(22) (7)"Total "Furnitureresources," andin fixturesthe propertycase taxof valuea loss"school district, means 1146the sum of the amountamounts determinedin divisions (A)(22)(a) to (h) of this section less any reduction required under division (C)(3)(A)(32) or (33) of this section.

1147(a) (8)The "Machinerystate andeducation equipmentaid fixed-ratefor levyfiscal loss"year means2010; 1148 the amount determined under division (D)(1) of this section.

1149(b) (9)The "Inventorysum fixed-rateof levythe loss"payments meansreceived by the amountschool 1150district determinedin underfiscal year 2010 for current expense levy losses pursuant to division (D)(2)(C)(2) of thissection section.5727.85 and divisions (C)(8) and (9) of section 5751.21 of the Revised Code, excluding the portion of such payments attributable to levies for joint vocational school district purposes;

1151(c) (10)The "Furnituresum of fixed-sum levy loss payments received by the school district in fiscal year pursuant to division (E)(1) of section 5727.85 and fixturesdivision fixed-rate(E)(1) levyof loss"section means5751.21 1152of S.the Revised Code for fixed-sum levies charged and payable for a purpose other than paying debt charges;

(d) Fifty per cent of the school district's taxes charged and payable against all property on the tax list of real and public utility property for current expense purposes for tax year 2008, including taxes charged and payable from emergency levies charged and payable under section 5709.194 of the Revised Code and excluding taxes levied for joint vocational school district purposes;

(e) Fifty per cent of the school district's taxes charged and payable against all property on the tax list of real and public utility property for current expenses for tax year 2009, including taxes charged and payable from emergency levies and excluding taxes levied for joint vocational school district purposes;

(f) The school district's taxes charged and payable against all property on the general tax list of personal property for current expenses for tax year 2009, including taxes charged and payable S.

450 Page136th 40G.A. As Passed by the Senate the amount determined under division (D)(3) of this section.

1153from (11)emergency "Totallevies; fixed-rate levy loss" means the sum of the 1154 machinery and equipment fixed-rate levy loss, the inventory 1155 fixed-rate levy loss, the furniture and fixtures fixed-rate levy 1156 loss, and the telephone company fixed-rate levy loss.

1157(g) (12)The "Fixed-sumamount levycertified loss"for meansfiscal theyear amount2010 determined 1158 under division (E)(A)(2) of thissection section.3317.08 of the Revised Code;

1159(h) (13)Distributions "Machineryreceived andduring equipment"calendar meansyear personal2009 propertyfrom 1160taxes subjectlevied tounder the assessment rate specified in division (F) of 1161 section 5711.22718.09 of the Revised Code.

1162(23) (14)"Total "Inventory"resources," meansin personalthe propertycase subjectof toa thejoint 1163vocational assessmentschool ratedistrict, specifiedmeans the sum of amounts in divisiondivisions (E)(A)(23)(a) to (g) of this section 5711.22less ofany 1164reduction therequired Revisedunder Code.division (A) (32) of this section.

1165(a) (15)The "Furniturestate andeducation fixtures"aid meansfor personalfiscal propertyyear 11662010; subject to the assessment rate specified in division (G) of 1167 section 5711.22 of the Revised Code.

1168(b) (16)The "Qualifyingsum levies"of arethe leviespayments received by the joint vocational school district in effectfiscal year for taxcurrent yearexpense 1169levy orlosses applicablepursuant to taxdivision year(C)(2) 2005of orsection approved5727.85 atand andivisions election(C) 1170(8) conductedand before(9) Septemberof 1,section 2005.5751.21 of the Revised Code;

For(c) theFifty purposeper cent of 1171 determining the ratejoint ofvocational aschool qualifyingdistrict's levytaxes authorizedcharged byand sectionpayable 1172against 5705.212all orproperty 5705.213on of the Revisedtax Code,list theof ratereal shalland bepublic theutility 1173property ratefor thatcurrent wouldexpense bepurposes in effect for tax year 2010.2008;

1174(d) (17)Fifty "Telephoneper property"cent meansof tangiblethe personaljoint propertyvocational 1175school ofdistrict's ataxes telephone,charged telegraph,and orpayable interexchangeagainst telecommunicationsall 1176property companyon subjectthe totax anlist assessmentof ratereal specifiedand inpublic sectionutility 1177property 5727.111for ofcurrent theexpenses Revisedfor Code in tax year 2004.2009;

1178(e) (18)Fifty "Telephoneper cent of a city, local, or exempted village school district's taxes charged and payable against all property on the tax valuelist loss"of meansreal theand amountpublic 1179utility determinedproperty underfor divisioncurrent (C)(4)expenses of thisthe section.joint vocational school district for tax year 2008;

1180(f) S.Fifty per cent of a city, local, or exempted village school district's taxes charged and payable against all property on the tax list of real and public utility property for current expenses of the joint vocational school district for tax year 2009;

(g) The joint vocational school district's taxes charged and payable against all property on the general tax list of personal property for current expenses for tax year 2009.

(24) "Total resources," in the case of county mental health and disability related functions, means the sum of the amounts in divisions (A)(24)(a) and (b) of this section less any reduction required under division (A)(32) of this section.

(a) The sum of the payments received by the county for mental health and developmental disability related functions in calendar year 2010 under division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of the Revised Code as they existed at that time;