As Introduced
136th General Assembly
Regular Session H. B. No. 49
2025-2026
Representative Claggett
Cosponsors: Representatives Click, Gross, Thomas, C.
A B I L L
To enact sections 6120.01, 6120.02, 6120.03,
6120.031, 6120.032, 6120.033, 6120.04, 6120.05,
6120.06, 6120.07, 6120.08, 6120.09, 6120.10,
6120.11, 6120.12, 6120.13, 6120.14, 6120.15,
6120.16, 6120.17, 6120.18, and 6120.19 of the
Revised Code to allow for the creation of water
improvement districts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 6120.01, 6120.02, 6120.03,
6120.031, 6120.032, 6120.033, 6120.04, 6120.05, 6120.06,
6120.07, 6120.08, 6120.09, 6120.10, 6120.11, 6120.12, 6120.13,
6120.14, 6120.15, 6120.16, 6120.17, 6120.18, and 6120.19 of the
Revised Code be enacted to read as follows:
Sec. 6120.01. As used in this chapter:
(A) "Action" means any decision made or agreement entered
into regarding a waste water facility or water management
facility located in a county in which a water improvement
district appeals board has been created under section 6120.16 of
the Revised Code.
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(B) "Administrative agent," "agent," "commercial paper,"
"floating rate interest structure," "indexing agent," "interest
rate hedge," "interest rate period," "put arrangement," and
"remarketing agent" have the same meanings as in section 9.98 of
the Revised Code.
(C) "Appellant" means a person or governmental agency who
opposes an action and files an appeal with the water district
improvement appeals board in accordance with this chapter.
(D) "Appellee" means the person or governmental agency
that took the action that is the subject of an appeal.
(E) "Bond proceedings" means the resolutions, trust
agreements, certifications, notices, sale proceedings, leases,
lease-purchase agreements, assignments, credit enhancement
facility agreements, and other agreements, instruments, and
documents, as amended and supplemented, or any one or more of
combination thereof, authorizing, or authorizing or providing
for the terms and conditions applicable to, or providing for the
security or sale or award or liquidity of, bonds, and includes
the provisions set forth or incorporated in those bonds and bond
proceedings.
(F) "Bond service charges" means principal, including any
mandatory sinking fund or mandatory redemption requirements for
retirement of bonds, and interest and any redemption premium
payable on bonds, as those payments come due and are payable to
the bondholder or to a person making payment under a credit
enhancement facility of those bond service charges to a
bondholder.
(G) "Bond service fund" means the applicable fund created
by the bond proceedings for and pledged to the payment of bond
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service charges on bonds provided for by those proceedings,
including all money and investments, and earnings from
investments, credited and to be credited to that fund as
provided in the bond proceedings.
(H) "Bonds" means bonds, notes, including notes
anticipating bonds or other notes, commercial paper,
certificates of participation, or other evidences of obligation,
including any interest coupons pertaining thereto, issued
pursuant to this chapter.
(I) "Cost," as applied to a water project, means the cost
of acquisition and construction of a project, including all of
the following:
(1) The cost of the acquisition of all land, rights-of-
way, property rights, easements, franchise rights, and interests
required;
(2) The cost of demolishing or removing any buildings or
structures on land so acquired, including the cost of acquiring
any lands to which such buildings or structures may be moved;
(3) The cost of acquiring or constructing and equipping a
principal office and sub-offices of the district;
(4) The cost of diverting highways, interchange of
highways, and access roads to private property, including the
cost of land or easements therefor;
(5) The cost of all machinery, furnishings, and equipment,
including any financing charges or interest incurred prior to
and during construction and incurred not more than eighteen
months after completion of project acquisition or construction;
(6) Costs of engineering, expenses of research and
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development with respect to waste water or water management
facilities, legal expenses, plans, specifications, surveys,
estimates of cost and revenues, working capital, other expenses
necessary or incident to determining the feasibility or
practicability of acquiring or constructing a project,
administrative expense, and such other expenses as may be
necessary or incident to the acquisition or construction of a
project;
(7) The financing of the acquisition or construction of a
project, including the amount authorized in the resolution of
the board of trustees of the district providing for the issuance
of water resource revenue bonds to be paid into any special
funds from the proceeds of those bonds and the financing of the
placing of any such project in operation.
"Cost" includes any obligation or expense incurred by any
governmental agency or person for surveys, borings, preparation
of plans and specifications, and other engineering services, or
any other cost described above, in connection with the
construction or acquisition of a project.
(J) "Credit enhancement facilities" means letters of
credit, lines of credit, standby, contingent, or firm securities
purchase agreements, insurance, or surety arrangements,
guarantees, and other arrangements that provide for direct or
contingent payment of bond service charges, for security or
additional security in the event of nonpayment or default in
respect of bonds, or for making payment of bond service charges
and at the option and on demand of bondholders or at the option
of the district or upon certain conditions occurring under put
or similar arrangements, or for otherwise supporting the credit
or liquidity of the bonds, and includes credit, reimbursement,
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marketing, remarketing, indexing, carrying, interest rate hedge,
and subrogation agreements, and other agreements and
arrangements for payment and reimbursement of the person
providing the credit enhancement facility and the security for
that payment and reimbursement.
(K) "Financing expenses" means all costs and expenses
relating to the authorization, issuance, sale, delivery,
authentication, deposit, custody, clearing, registration,
transfer, exchange, fractionalization, replacement, payment, and
servicing of bonds, including costs and expenses for or relating
to publication and printing, postage, delivery, preliminary and
final official statements, offering circulars, and informational
statements, travel and transportation, underwriters, placement
agents, investment bankers, paying agents, registrars,
authenticating agents, remarketing agents, custodians, clearing
agencies or corporations, securities depositories, financial
advisory services, certifications, audits, federal or state
regulatory agencies, accounting and computation services, legal
services and obtaining approving legal opinions and other legal
opinions, credit ratings, redemption premiums, and credit
enhancement facilities.
(L) "Governmental agency" means a department, division, or
other unit of state government; a county, township, or municipal
corporation; a watershed district, soil and water conservation
district, park district, special water district, including a
county and regional water and sewer district, conservancy
district, sanitary district, sewer district or any other public
corporation or agency having the authority to acquire,
construct, or operate waste water or water management
facilities, or other political subdivision; a port authority
created pursuant to Chapter 4582. of the Revised Code; and the
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United States or any agency thereof.
(M) "Net revenues" means revenues lawfully available to
pay both current operating expenses of a district and bond
service charges in any fiscal year or other specified period,
less current operating expenses of the district and any amount
necessary to maintain a working capital reserve for that period.
(N) "Outstanding" as applied to bonds means outstanding in
accordance with the terms of the bonds and the applicable bond
proceedings.
(O) "Owner" includes any person having any title or
interest in any property authorized to be acquired by a district
under this chapter.
(P) "Pledged revenues" means net revenues, money and
investments, and earnings on those investments, in the
applicable bond service fund and any other special funds, and
the proceeds of any bonds issued for the purpose of refunding
prior bonds, all as lawfully available and by resolution of the
board of trustees of the district committed for application as
pledged revenues to the payment of bond service charges on
particular issues of bonds.
(Q) "Project" or "water project" means any waste water
facility or water management facility constructed,
reconstructed, or repaired under this chapter, including all
buildings and facilities that the board of trustees of the
district considers necessary for the operation of the project,
together with all property and rights that must be acquired by
the board to construct, reconstruct, or repair the project.
(R) "Property" includes interests in property.
(S) "Refund" means to fund and retire outstanding bonds,
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including advance refunding with or without payment or
redemption prior to stated maturity.
(T) "Revenues" means all money received by a district for
the use or services of any project, all special assessments
levied by the board of trustees of the district pursuant to this
chapter, any gift or grant received with respect to a project,
proceeds of bonds to the extent the use thereof for payment of
principal or of premium, if any, or interest on the bonds is
authorized by the board of trustees of the district, proceeds
from any insurance, condemnation, or guaranty pertaining to a
project or property mortgaged to secure bonds or pertaining to
the financing of a project, and income and profit from the
investment of the proceeds of bonds or of any revenues.
(U) "Special funds" means the applicable bond service fund
and any accounts and subaccounts in that fund, any other funds
or accounts permitted by and established under, and identified
as a special fund or special account in, the bond proceedings,
including any special fund or account established for purposes
of rebate or other requirements under federal income tax laws.
(V) "Waste water facilities," "water management
facilities," "waters of the state," "sewage," "waste water," and
"construction" have the same meanings as in section 6119.011 of
the Revised Code.
(W) "Water improvement district" or "district" means a
water improvement district designated pursuant to section
6120.02 of the Revised Code.
Sec. 6120.02. (A) A water improvement district may be
created by the board of county commissioners of a county by
resolution for the purpose of facilitating, coordinating,
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funding, financing, constructing, reconstructing, or repairing
water projects or engaging in any combination of those
activities. In furtherance of such purposes, the board of
trustees of the district shall enter into an intergovernmental
agreement with one or more governmental agencies that specifies
that such governmental agency or agencies shall operate and
maintain the project under such terms as specified in the
agreement. All parties shall agree to such terms before the
water improvement district's board of trustees approve a
project.
(B) A water improvement district is a body both corporate
and politic, and the exercise by it of the powers conferred by
this chapter in facilitating, coordinating, funding, financing,
constructing, reconstructing, or repairing a water project are
essential governmental functions.
(C)(1) Subject to division (C)(2) of this section, a water
improvement district shall be governed by a board of trustees
consisting of five voting members and one nonvoting member as
follows:
(a) The county sanitary engineer or the county sanitary
engineer's designee if a county sanitary engineer has been
appointed for the county or, if a county sanitary engineer has
not been appointed for the county, the county engineer or the
county engineer's designee;
(b) Four members, appointed by the board of county
commissioners, who have experience in waste water facilities,
waste water, sewage, or water management facilities;
(c) One member appointed by the regional planning
commission for the county, who shall be a nonvoting member of
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the board.
(2) The board of county commissioners may appoint not more
than six additional nonvoting members to the board of trustees.
The additional members shall be representative of the
governmental entities that are located within the territory of
the water improvement district.
(3) Each member of the board shall serve without
compensation but shall be reimbursed for all actual and
necessary expenses incurred in the performance of official
duties.
(D) Each appointed member of the board shall hold office
for a term of two years, subject to removal by the appointing
authority only for malfeasance. Members may be reappointed.
Except as otherwise provided in this division, any vacancy on
the board shall be filled in the same manner as the original
appointment.
(E) The voting members of the board shall elect from the
entire board membership a chairperson, vice-chairperson, and
secretary-treasurer. A majority of the voting members of the
board constitutes a quorum, the affirmative vote of which is
necessary for any action of the district. No vacancy in the
membership of the board impairs the right of a quorum to
exercise all the rights and perform all duties of the district.
(F)(1) The board of county commissioners of any county,
the legislative authority of any municipal corporation, and the
board of township trustees of any township may make
appropriations from money available to them and not otherwise
appropriated to pay costs incurred by the district in the
exercise of its functions under this chapter, provided that
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money is available to use for that purpose.
(2) The water improvement district board of trustees may
establish fees related to its services in order to pay costs
incurred by the district in the exercise of its functions under
this chapter.
(G) An organizational meeting of the board of trustees of
a water improvement district created under this section shall be
held at the time and place designated by the board member who
was appointed by the regional planning commission for the
county.
Sec. 6120.03. (A) A water improvement district may do any
of the following:
(1) Adopt bylaws for the regulation of its affairs and the
conduct of its business;
(2) Adopt an official seal;
(3) Sue and be sued in its own name, plead and be
impleaded, provided any actions against the district shall be
brought in the court of common pleas of the county in which the
principal office of the district is located, or in the court of
common pleas of the county in which the cause of action arose,
and all summonses, exceptions, and notices of every kind shall
be served on the district by leaving a copy thereof at its
principal office with the secretary-treasurer;
(4) Facilitate, coordinate, fund, finance, construct,
reconstruct, or repair projects or engage in a combination of
any of those activities;
(5) Issue either or both of the following for the purpose
of providing funds to pay the costs of any project or part
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thereof:
(a) Water improvement district revenue bonds;
(b) Bonds pursuant to Section 13 of Article VIII, Ohio
Constitution.
(6) Maintain such funds as it considers necessary;
(7) Direct its agents or employees, when properly
identified in writing and after at least five days' written
notice, to enter upon lands within its jurisdiction to make
surveys and examinations preliminary to the construction,
reconstruction, or repair of projects for the district, without
liability of the district or its agents or employees except for
actual damage done;
(8) Make and enter into all contracts and agreements,
including an intergovernmental agreement as specified in
division (A) of section 6120.02 of the Revised Code, necessary
or incidental to the performance of its functions and the
execution of its powers under this chapter;
(9) Employ or retain or contract for the services of
consulting engineers, superintendents, managers, and such other
engineers, construction and accounting experts, auditors,
financial advisers, trustees, marketing, remarketing, and
administrative agents, attorneys, and other employees,
independent contractors, or agents as are necessary in its
judgment and fix their compensation, provided all such expenses
shall be payable solely from the proceeds of bonds or from
revenues;
(10) Receive and accept from any governmental agency,
loans and grants for or in aid of the construction,
reconstruction, or repair of any project, and receive and accept
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aid or contributions from any source or person of money,
property, labor, or other things of value, to be held, used, and
applied only for the purposes for which such loans, grants, and
contributions are made. Nothing in division (A)(10) of this
section shall be construed as imposing any liability on this
state for any loan received by a water improvement district from
a third party unless this state has entered into an agreement to
accept such liability.
(11) Acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under
this chapter;
(12) Subject to section 6120.15 of the Revised Code, enter
into an agreement with a contiguous board of county
commissioners other than the board of county commissioners that
created the water improvement district, for the district to
exercise all or any portion of its powers with respect to a
project that is located wholly or partially within the county
that is party to the agreement;
(13) Cooperate with any governmental agencies in the
planning, design, acquisition, construction, maintenance,
funding, and financing of projects;
(14) Enter into an agreement with the board of county
commissioners that created the water improvement district and
with the boards of county commissioners of any contiguous group
of counties to exercise all powers of the district with respect
to a project that is both of the following:
(a) Located partially or wholly within any county that is
a party to the agreement;
(b) Partially funded with federal money.
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(15) Do all acts necessary and proper to carry out the
powers expressly granted in this chapter.
(B) Chapters 123. and 124. of the Revised Code do not
apply to contracts or projects of a water improvement district.
Sec. 6120.031. (A) As used in this section, "public
improvement" means the construction, reconstruction, or repair
of any waste water or water management facility.
(B) The board of trustees of a water improvement district
may provide for a public improvement and levy special
assessments, if the board determines that the public improvement
will benefit the area where it will be constructed,
reconstructed, or repaired. However, if the improvement is
proposed for territory in a political subdivision located
outside the district's territory, the legislative authority of
that political subdivision shall approve the undertaking of the
improvement within the political subdivision.
(C) If any improvements are made under this section,
contracts for the improvement may provide that the improvement
may be owned by the district or by the person or corporation
supplying it to the district under a lease.
(D) If the board of trustees of a district proposes an
improvement described in division (B) of this section, the board
shall conduct a hearing on the proposed improvement. The board
shall indicate by metes and bounds the area in which the public
improvement will be made and the area that will benefit from the
improvement.
(E) The board of trustees shall fix a day for a hearing on
the proposed improvement. The secretary-treasurer of the board
shall deliver, to each owner of a parcel of land or a lot that
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the board identifies as benefiting from the proposed
improvement, a notice that sets forth the substance of the
proposed improvement and the time and place of the hearing on
it. At least fifteen days before the date set for the hearing, a
copy of the notice shall be served upon the owner or left at the
owner's usual place of residence, or, if the owner is a
corporation, upon an officer or agent of the corporation. On or
before the day of the hearing, the person serving notice of the
hearing shall make return thereon, under oath, of the time and
manner of service, and shall file the notice with the secretary-
treasurer of the board.
At least fifteen days before the day set for the hearing
on the proposed improvement, the secretary-treasurer shall give
notice to each nonresident owner of a lot or parcel of land in
the area to be benefited by the improvement, by publication once
in a newspaper of general circulation in the one or more
counties in which this area is located. The publication of the
notice shall be verified by affidavit of the printer or other
person having knowledge of the publication and shall be filed
with the secretary-treasurer of the district on or before the
date of the hearing.
(F) At the time and place specified in the notice for a
hearing on the proposed improvement, the board of trustees of
the district shall meet and hear any and all testimony provided
by any of the parties affected by the proposed improvement and
by any other persons competent to testify. The board or its
representatives shall inspect, by an actual viewing, the area to
be benefited by the proposed improvement. The board shall
determine the necessity of the proposed improvement and may find
that the proposed improvement will result in general as well as
special benefits. The board may adjourn from time to time and to
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such places as it considers necessary.
(G)(1) The board may award contracts or enter into a lease
agreement for the construction, reconstruction, or repair of any
improvement described in division (B) of this section and may
issue notes, bonds, revenue anticipatory instruments, or other
obligations, as authorized by this chapter, to finance the
improvements.
(2) All or a part of the costs and expenses of providing
for the construction, reconstruction, or repair of any
improvement described in division (G)(1) of this section may be
paid from a fund into which may be paid special assessments
levied under this section against the lots and parcels of land
in the area to be benefited by the improvement, if the board
finds that the improvement will result in general or special
benefits to the benefited area. These special assessments shall
be levied not more than one time on the same lot or parcel of
land. Such costs and expenses may also be paid from the treasury
of the district or from other available sources in amounts the
board finds appropriate.
(3) The board shall levy special assessments at an amount
not to exceed ten per cent of the assessable value of the lot or
parcel of land being assessed. The board shall determine the
assessable value of a lot or parcel of land in the following
manner: the board shall first determine the fair market value of
the lot or parcel being assessed in the calendar year in which
the area to be benefited by the public improvement is first
designated and then multiply this amount by the average rate of
appreciation in value of the lot or parcel since that calendar
year. The assessable value of the lot or parcel is the current
fair market value of the lot or parcel minus the amount
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calculated in the manner described in the immediately preceding
sentence. The board may adjust the assessable value of a lot or
parcel of land to reflect a sale of the lot or parcel that
indicates an appreciation in its value that exceeds its average
rate of appreciation in value.
(4) Special assessments levied by the board may be paid in
full in a lump sum or may be paid and collected in equal
semiannual installments, equal in number to twice the number of
years for which the lease of the improvement is made or twice
the number of years that the note, bond, instrument, or
obligation that the assessments are pledged to pay requires. The
assessments shall be paid and collected in the same manner and
at the same time as real property taxes are paid and collected,
and assessments in the amount of fifty dollars or less shall be
paid in full, and not in installments, at the time the first or
next installment would otherwise become due and payable.
Complaints regarding assessments may be made to the county board
of revision in the same manner as complaints relating to the
valuation and assessment of real property.
Credits against assessments shall be granted equal to the
value of any construction, reconstruction, or repair that an
owner of a parcel of land or lot makes to an improvement
pursuant to an agreement between the owner and the district.
(5) After the levy of a special assessment, the board, at
any time during any year in which an installment of the
assessment becomes due, may pay out of other available funds of
the district, including any state or federal funds available to
the district, the full amount of the price of the contract that
the special assessments are pledged to pay for that year or any
other portion of the remaining obligation. The board shall be
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the sole determiner of the definition, extent, and allocation of
the benefit resulting from an improvement that the board
authorizes under this section.
(H)(1) The board shall certify to the appropriate county
auditor the boundaries of the area that is benefited by any
public improvement the board authorizes under this section and,
when the board so requests, the auditor shall apportion the
valuation of any lot or parcel of land lying partly within and
partly outside the area so benefited.
(2) The board by resolution shall assess against the lots
and parcels of land located in the area that is benefited by a
public improvement such portion of the costs of completing the
public improvement as the board determines, for the period that
may be necessary to pay the note, bond, instrument, or
obligation issued to pay for the improvement and the proceedings
in relation to it, and shall certify these costs to the
appropriate county auditor.
(3) Except for assessments that have been paid in full in
a lump sum, the county auditor shall annually place upon the tax
duplicate, for collection in semiannual installments, the two
installments of the assessment for that year, which shall be
paid and collected at the same time and in the same manner as
real property taxes. The collected assessments shall be paid to
the treasury of the district and the board of the district shall
use the assessments for any purpose authorized by this chapter.
Sec. 6120.032. Any water project shall be determined by
the board of trustees of the water improvement district to be
consistent with any applicable comprehensive plan of water
management approved by the director of natural resources or in
the process of preparation by the director and to be not
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inconsistent with the standards set for the waters of the state
affected thereby by the environmental protection agency. Any
resolution of the board of trustees of the district providing
for constructing, reconstructing, or repairing such projects
shall include a finding by the board of trustees of the district
that those determinations have been made.
Sec. 6120.033. (A) Except as provided in division (B) of
this section, notwithstanding any contrary provision in sections
4115.03 to 4115.21 and 4115.99 of the Revised Code, a water
project undertaken by, or under contract for, a water
improvement district is not a public improvement for purposes of
section 4115.03 of the Revised Code.
(B) A water improvement district may elect to apply
sections 4115.03 to 4115.21 and 4115.99 of the Revised Code to a
water project undertaken by, or under contract for, the
district. If a district makes an election under this division,
all contractors and subcontractors working on the project shall
comply with sections 4115.03 to 4115.21 of the Revised Code.
Sec. 6120.04. (A) A water improvement district may acquire
by purchase, lease, lease-purchase, lease with option to
purchase, appropriation, or otherwise and in such manner and for
such consideration as it considers proper, any public or private
property necessary, convenient, or proper for the construction,
reconstruction, or repair of a project. The district may pledge
net revenues, to the extent permitted by this chapter with
respect to bonds, to secure payments to be paid by the district
under such a lease, lease-purchase agreement, or lease with
option to purchase. Title to real and personal property shall be
held in the name of the district. In any proceedings for
appropriation under this section, the procedure to be followed
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shall be in accordance with that provided in sections 163.01 to
163.22 of the Revised Code. Except as otherwise agreed to by the
owner, full compensation shall be paid for public property so
taken.
(B) This section does not authorize a district to take or
disturb property or facilities belonging to any public utility
or to a common carrier engaged in interstate commerce, which
property or facilities are required for the proper and
convenient operation of the public utility or common carrier,
unless provision is made for the restoration, relocation,
replication, or duplication of the property or facilities
elsewhere at the sole cost of the district.
(C) Except as otherwise provided in this chapter,
disposition of real property shall be by sale, lease-purchase
agreement, lease with option to purchase, or otherwise in such
manner and for such consideration as determined by the district
if to a governmental agency. Disposition of personal property
shall be in such manner and for such consideration as determined
by the district.
Sec. 6120.05. The board of trustees of a water improvement
district may acquire real property in fee simple in the name of
the district in connection with, but in excess of that needed
for, a project by any method other than appropriation and hold
the property for such period of time determined by the board.
All right, title, and interest of the district in the property
may be sold at public auction or otherwise, as the board
considers in the best interests of the district; but in no event
shall the property be sold for less than two-thirds of its
appraised value. Sale at public auction shall be undertaken only
after the board advertises the sale in a newspaper of general
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circulation in the district for two weeks or as provided in
section 7.16 of the Revised Code, prior to the date set for the
sale.
Sec. 6120.06. (A) The board of trustees of a water
improvement district may provide by resolution for the issuance,
at one time or from time to time, of bonds of the district for
the purpose of paying all or any part of the cost of any one or
more projects. The bond service charges shall be payable solely
from pledged revenues pledged for such payment pursuant to the
applicable bond proceedings. The bonds of each issue shall be
dated, shall bear interest at a rate or rates or at variable
rates, and shall mature or be payable at such time or times,
with a final maturity not to exceed thirty years from their date
or dates, all as determined by the board in the bond
proceedings. The board shall determine the form of the bonds,
including any interest coupons to be attached thereto, and shall
fix the denomination or denominations of the bonds and the place
or places of payment of bond service charges.
(B) The bonds shall be signed by the chairperson or vice-
chairperson of the board or by the facsimile signature of that
officer, the official seal of the district or a facsimile
thereof may be affixed thereto or printed thereon and attested
by the secretary-treasurer of the district, which may be by
facsimile signature, and any coupons attached thereto shall bear
the facsimile signature of the chairperson or vice-chairperson
of the board. In case any officer whose signature, or a
facsimile of whose signature, appears on any bonds or coupons
ceases to be such officer before delivery of the bonds, such
signature or facsimile shall nevertheless be valid and
sufficient for all purposes the same as if the officer had
remained in office until such delivery.
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(C) Subject to the bond proceedings and provisions for
registration, the bonds shall have all the qualities and
incidents of negotiable instruments under Title XIII of the
Revised Code. The bonds may be issued in such form or forms as
the board determines, including without limitation coupon, book
entry, and fully registered form, and provision may be made for
the registration of any coupon bonds as to principal alone and
also as to both principal and interest, and for the exchange of
bonds between forms. The board may sell such bonds by
competitive bid on the best bid after advertisement or request
for bids or by private sale in the manner, and for the price, it
determines to be for the best interest of the district.
(D) The proceeds of the bonds of each issue shall be used
solely for the payment of the costs of the project or projects
for which the bonds were issued, and shall be disbursed in such
manner and under such restrictions as the board provides in the
bond proceedings.
(E) Prior to the preparation of definitive bonds, the
board may, under like restrictions, issue interim receipts or
temporary bonds or bond anticipation notes, with or without
coupons, exchangeable for definitive bonds when such bonds have
been executed and are available for delivery. The board may
provide for the replacement of any mutilated, stolen, destroyed,
or lost bonds.
(F) Sections 9.98 to 9.983 of the Revised Code apply to
the bonds.
(G) The bond proceedings shall provide, subject to the
provisions of any other applicable bond proceedings, for the
pledge to the payment of bond service charges and of any costs
of or relating to credit enhancement facilities of all, or such
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part as the board may determine, of the pledged revenues and the
applicable special fund or funds, which pledges may be made to
secure the bonds on a parity with bonds theretofore or
thereafter issued if and to the extent provided in the bond
proceedings. Every pledge, and every covenant and agreement with
respect thereto, made in the bond proceedings may in the bond
proceedings be extended to the benefit of the owners and holders
of bonds and to any trustee and any person providing a credit
enhancement facility for those bonds, for the further security
for the payment of the bond service charges and credit
enhancement facility costs.
(H) The bond proceedings may contain additional provisions
as to:
(1) The redemption of bonds prior to maturity at the
option of the board or of the bondholders or upon the occurrence
of certain stated conditions, and at such price or prices and
under such terms and conditions as are provided in the bond
proceedings;
(2) Other terms of the bonds;
(3) Limitations on the issuance of additional bonds;
(4) The terms of any trust agreement securing the bonds or
under which the same may be issued;
(5) Any or every provision of the bond proceedings being
binding upon the board and state agencies, or other person as
may from time to time have the authority under law to take such
actions as may be necessary to perform all or any part of the
duty required by such provision;
(6) Any provision that may be made in a trust agreement;
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(7) Any other or additional agreements with the holders of
the bonds, or the trustee therefor, relating to the bonds or the
security for the bonds, including agreements for credit
enhancement facilities.
(I) Any holder of bonds or a trustee under the bond
proceedings, except to the extent that the holder's or trustee's
rights are restricted by the bond proceedings, may by any
suitable form of legal proceedings, protect and enforce any
rights under the laws of this state or granted by the bond
proceedings. Those rights include the right to compel the
performance of all duties of the board required by this chapter
or the bond proceedings; to enjoin unlawful activities; and in
the event of default with respect to the payment of any bond
service charges on any bonds or in the performance of any
covenant or agreement on the part of the board contained in the
bond proceedings, to apply to a court having jurisdiction of the
cause to appoint a receiver to receive and administer the
revenues and the pledged revenues which are pledged to the
payment of the bond service charges on such bonds or that are
the subject of the covenant or agreement, with full power to
pay, and to provide for payment of, bond service charges on such
bonds, and with such powers, subject to the direction of the
court, as are accorded receivers in general equity cases,
excluding any power to pledge additional revenue or receipts or
other income, funds, or money of the board to the payment of
such bond service charges and excluding the power to take
possession of, mortgage, or cause the sale or otherwise dispose
of any project or other property of the board.
(J) Each duty of the board and the board's officers and
employees, undertaken pursuant to the bond proceedings, is
hereby established as a duty of the board, and of each such
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officer, member, or employee having authority to perform the
duty, specifically enjoined by law resulting from an office,
trust, or station within the meaning of section 2731.01 of the
Revised Code.
(K) The board's officers or employees are not liable in
their personal capacities on any bonds issued by the board or
any agreements of or with the board relating to those bonds.
(L) The bonds 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 funds of the state or its political subdivisions and
taxing districts, the commissioners of the sinking fund of the
state, the administrator of workers' compensation, 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 thereto
by any state agency with respect to investments by them, and
also are acceptable as security for the repayment of the deposit
of public money.
(M) Provision may be made in the applicable bond
proceedings for the establishment of separate accounts in the
bond service fund and for the application of such accounts only
to the specified bond service charges pertinent to such accounts
and bond service fund, and for other accounts therein within the
general purposes of such fund.
(N) The board may pledge all, or such portion as it
determines, of the pledged revenues to the payment of bond
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As Introduced
service charges, and for the establishment and maintenance of
any reserves and special funds, as provided in the bond
proceedings, and make other provisions therein with respect to
pledged revenues, revenues, and net revenues as authorized by
this chapter, which provisions shall be controlling
notwithstanding any other provisions of law pertaining thereto.
Sec. 6120.07. The board of trustees of a water improvement
district may provide by resolution for the issuance of bonds of
the district, payable solely from pledged revenues, for the
purpose of refunding any bonds then outstanding, including the
payment of related financing expenses and, if considered
advisable by the board, for the additional purpose of paying
costs of improvements, extensions, renovations, or enlargements
of any project. The issuance of refunding bonds, the maturities
and other details thereof, the rights of the holders thereof,
and the rights, duties, and obligations of the board in respect
to such bonds shall be governed by the provisions of this
chapter insofar as they are applicable and by the applicable
bond proceedings.
Sec. 6120.08. This chapter provides an additional and
alternative method for financing, constructing, reconstructing,
or repairing projects and taking the actions authorized by this
chapter. This chapter shall be regarded as supplemental and
additional to powers conferred by other laws. The issuance of
bonds under this chapter need not comply with any other law
applicable to the issuance of bonds.
Sec. 6120.09. (A) The bonds do not constitute a debt, or a
pledge of the faith and credit, of the state or of any political
subdivision of the state. Bond service charges on outstanding
bonds are payable solely from the pledged revenues pledged for
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As Introduced
their payment as authorized by this chapter and as provided in
the bond proceedings. All bonds shall contain on their face a
statement to that effect.
(B) All expenses incurred in carrying out this chapter
shall be payable solely from revenues provided under this
chapter. This chapter does not authorize the board of trustees
of a district to incur indebtedness or liability on behalf of or
payable by the state or any political subdivision of the state.
Sec. 6120.10. (A) In the discretion of the board of
trustees of a water improvement district any bonds may be
secured by a trust agreement between the board and a corporate
trustee, which may be any trust company or bank having the
powers of a trust company within or without the state but
authorized to exercise trust powers within this state.
(B) Any trust agreement may pledge or assign the revenues
to be received, but shall not convey or mortgage any project or
any part thereof. Any such trust agreement or other bond
proceedings may contain such provisions for protecting and
enforcing the rights and remedies of the bondholders as are
reasonable and proper and not in violation of law, including
covenants setting forth the duties of the board in relation to
the acquisition of property, and the construction,
reconstruction, and repair of the project or projects in
connection with which such bonds are authorized and the custody,
safeguarding, and application of all money, and provisions for
the employment or retention of the services of consulting
engineers in connection with the construction, reconstruction,
or repair of the project or projects. Any bank or trust company
incorporated under the laws of this state which may act as
depository of the proceeds of bonds or of revenues may furnish
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As Introduced
such indemnifying bonds or may pledge such securities as are
required by the board. Any such trust agreement may set forth
the rights and remedies of the bondholders and of the trustee,
may restrict the individual right of action by bondholders as is
customary in revenue bond trust agreements of public bodies, and
may contain such other provisions as the board considers
reasonable and proper for the security of the bondholders. All
expenses incurred in entering into or carrying out the
provisions of any such trust agreement may be treated as a part
of the cost of the project or projects. Chapter 135. of the
Revised Code does not apply to investments made pursuant to any
such trust agreement.
Sec. 6120.11. Revenues derived from each project of a
water improvement district in connection with which any bonds
are outstanding shall be first applied to pay the cost of the
construction, reconstruction, and repair of the project and to
provide such reserves therefor as are provided for in the bond
proceedings authorizing the issuance of those outstanding bonds,
and otherwise as provided by the board of trustees of the
district, and the balance of the pledged revenues shall be set
aside, at such regular intervals as are provided in the bond
proceedings in a bond service fund which is hereby pledged to
and charged with the payment of the bond service charges on any
such outstanding bonds as provided in the applicable bond
proceedings. Such pledge shall be valid and binding from the
time the pledge is made; the revenues and the pledged revenues
thereafter received by the board shall immediately be subject to
the lien of such pledge without any physical delivery thereof or
further act, and the lien of such pledge shall be valid and
binding as against all parties having claims of any kind in
tort, contract, or otherwise against the board, whether or not
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As Introduced
such parties have notice thereof. The bond proceedings by which
a pledge is created need not be filed or recorded except in the
records of the board. The use and disposition of money to the
credit of a bond service fund shall be subject to the applicable
bond proceedings. Except as is otherwise provided in such bond
proceedings, such a bond service fund shall be a fund for all
such bonds, without distinction or priority of one over another.
Sec. 6120.12. All money received by the board of trustees
of a water improvement district under this chapter, whether as
proceeds from the sale of bonds, as revenues, or otherwise, are
to be held and applied solely as provided in this chapter and in
any applicable bond proceedings. Such money shall be kept in
depositories as selected by the board in the manner provided in
sections 135.01 to 135.21 of the Revised Code, insofar as such
sections are applicable, and the deposits shall be secured as
provided in sections 135.01 to 135.21 of the Revised Code. The
bond proceedings shall provide that any officer to whom, or any
bank or trust company to which, revenues or pledged revenues are
paid shall act as trustee of such money and hold and apply it
for the purposes thereof, subject to applicable provisions of
this chapter and the bond proceedings.
Sec. 6120.13. Any holder of bonds issued and outstanding
under this chapter, or any of the coupons appertaining thereto,
and the trustee under any trust agreement, except to the extent
the rights given by this chapter may be restricted or modified
by the bond proceedings, may by suit, action, mandamus, or other
proceedings, protect and enforce any rights under the laws of
the state or granted under this chapter or the bond proceedings,
and may enforce and compel the performance of all duties
required by this chapter or the bond proceedings, to be
performed by the board of trustees of a water improvement
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As Introduced
district or any officer of the board.
Sec. 6120.14. The exercise of the powers granted by this
chapter is in all respects for the benefit of the people of the
state, for the increase of their commerce and prosperity, and
for the improvement of their health and living conditions, and
as the construction, reconstruction, and repair of projects by a
water improvement district constitute the performance of
essential governmental functions, the district shall not be
required to pay any state or local taxes or assessments upon any
project, or upon revenues or any property acquired or used by
the district under this chapter, or upon the income therefrom.
The bonds issued under this chapter, their transfer, and the
income therefrom, including any profit made on the sale thereof,
shall at all times be free from taxation within the state.
Sec. 6120.15. A board of county commissioners may enter
into an agreement with a contiguous water improvement district
that the board of county commissioners did not create for the
district to undertake a project that is located wholly or
partially within that county provided that the board of county
commissioners of the county that created the water improvement
district also must enter into the agreement.
No water improvement district shall undertake a project
that is located wholly or partially within a county that did not
create the water improvement district except pursuant to an
agreement entered into in accordance with this section, a
project being undertaken by two or more water improvement
districts, or as otherwise provided by law.
Sec. 6120.16. (A) Not later than thirty days after the
appointment of a water improvement district board under section
6120.02 of the Revised Code, a water improvement district
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As Introduced
appeals board shall be created by the board of county
commissioners. The appeals board has exclusive original
jurisdiction over any action regarding a waste water facility or
water management facility located in the county in which the
appeals board is located, including an action regarding any
water project facilitated, coordinated, funded, financed,
constructed, reconstructed, or repaired under this chapter in
that county.
(B) A water improvement district appeals board shall
consist of eleven voting members and one nonvoting member as
follows:
(1) The five members of the board of trustees of the water
improvement district;
(2) Two members appointed by the legislative authority of
the most populous municipal corporation in the district;
(3) One member appointed by the legislative authority of
the second most populous municipal corporation in the district;
(4) One member appointed by the township trustee
association within the district. Absent such an association, one
member shall be appointed by the board of township trustees of
the most populous township in the county's unincorporated area.
(5) One member appointed by the county engineer who
represents regional water and sewer districts. If there is no
regional water and sewer district in the county, one member
shall be appointed by the county engineer who has expertise on
matters related to water and wastewater management.
(6) One member appointed by the board of county
commissioners who is an expert on matters related to water and
wastewater management;
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(7) One member appointed by the regional planning
commission for the county, who shall be a nonvoting member of
the board.
(C) Each appointed member of the appeals board shall hold
office for a term of two years, subject to removal by the
appointing authority only for malfeasance. Members may be
reappointed. Except as otherwise provided in this division, any
vacancy on the appeals board shall be filled in the same manner
as the original appointment.
(D) The voting members of the appeals board shall elect
from the entire board membership a chairperson, vice-
chairperson, and secretary-treasurer. A majority of the voting
members of the appeals board constitutes a quorum, the
affirmative vote of which is necessary for any decision. No
vacancy in the membership of the appeals board impairs the right
of a quorum to exercise all the rights and perform all its
duties.
(E) Each member of the board shall serve without
compensation but shall be reimbursed for all actual and
necessary expenses incurred in the performance of official
duties.
Sec. 6120.17. (A) The water improvement district appeals
board shall adopt or amend, as appropriate, regulations
governing procedure to be followed for hearings before it,
including regulations governing all of the following:
(1) Procedures for conducting hearings on appeals that are
not in conflict with section 6120.18 of the Revised Code;
(2) Procedures for issuing final decisions that are not in
conflict with section 6120.18 of the Revised Code;
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As Introduced
(3) Stays. The regulations shall specify that if an appeal
of an action made by a water improvement district board is
filed, such action shall not go into effect until the water
improvement district appeals board issues its final decision on
the matter.
(B) No regulation adopted by the appeals board shall be
effective until the tenth day after it has been adopted by the
filing of a certified copy thereof with the secretary of state
who shall record it under the heading "regulations of the
[insert name of county] water improvement district appeals
board." The regulations shall be numbered consecutively under
the heading and shall bear the date of filing. The regulations
shall be public records open to public inspection.
(C) No regulation filed in the office of the secretary of
state pursuant to this section shall be amended except by a
regulation which contains the entire regulation as amended and
which repeals the regulation amended. Each regulation which
amends a regulation shall bear the same consecutive regulation
number as the number of the regulation which it amends, and it
shall bear the date of filing.
(D) No regulation filed in the office of the secretary of
state pursuant to this section shall be repealed except by a
regulation. Each regulation which repeals a regulation shall
bear the same consecutive regulation number as the number of the
regulation which it repeals, and it shall bear the date of
filing.
(E) The authority and the duty of the appeals board to
adopt regulations under this section is not governed by or
subject to Chapter 119. of the Revised Code.
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As Introduced
(F) The appeals board shall have available at all times
copies of all regulations of the appeals board that it has filed
in the office of the secretary of state pursuant to this section
and shall furnish them free of charge to any person requesting
them.
(G) The appeals board shall maintain and keep available
for public inspection, at its principal office, a current
register of all appeals filed, hearings pending, its final
decision thereon, and the dates on which such filings, hearings,
and final decision occur.
Sec. 6120.18. (A)(1) Any person who has an interest in an
action may file an appeal with the applicable water improvement
district appeals board for a decision that modifies or revokes
the action. Such appeal shall be filed not later than fifteen
days after the action or after the appeals board is created,
whichever event occurs later.
(2) An appeal shall be in writing and shall set forth the
action complained of and the grounds upon which the appeal is
based. The chairperson of the appeals board shall notify all
members of the appeals board of the filing of an appeal and any
other person that is a party to the proceeding not later than
twenty-four hours after such filing.
(3) A hearing concerning an appeal shall be conducted not
later than fifteen days after the filing of the appeal.
(4) A hearing concerning an appeal brought under this
section is subject to section 121.22 of the Revised Code.
(B) The appeal shall be accompanied by a filing fee of
seventy dollars, which the appeals board, in its discretion, may
reduce if by affidavit the appellant demonstrates that payment
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966 H. B. No. 49 Page 34
As Introduced
of the full amount of the fee would cause extreme hardship.
(C) Within three days days after an appeal is made, the
water improvement district board, or any other applicable
appellee, shall prepare and certify to the appeals board a
record of the proceedings out of which the appeal arises,
including all documents and correspondence, and a transcript of
all testimony.
(D) Upon the filing of an appeal, the appeals board shall
fix the time and place at which the hearing on the appeal will
be held. The appeals board shall give the appellant and appellee
at least three days' notice of the hearing. The appeals board
may postpone or continue any hearing upon its own motion or upon
application of the appellant or of the appellee, but any
postponement or continuance shall be reasonable and the appeals
board shall take into account the interest of expediency.
(E) The appeals board shall issue a final decision at the
hearing. Not later than three days after a final decision of the
appeals board, the chairperson of the appeals board shall serve
on each party to the appeal a written statement that the
appealed action was either affirmed, revoked, or modified along
with the reasons for the final decision. If modified, the
statement shall describe how the appealed action was modified.
Sec. 6120.19. (A) Any party adversely affected by a final
decision of the water improvement district appeals board may
appeal the decision to the court of appeals in the county that
the applicable water improvement district is located.
(B) An original written notice of appeal or a copy of the
notice of appeal shall be filed with the appeals board and an
original notice of appeal or a copy of the notice of appeal
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995 H. B. No. 49 Page 35
As Introduced
shall be filed with the reviewing court of common pleas within
fifteen calendar days of the final decision of the appeals
board.
(C) A copy of the notice of appeal shall be served upon
the board of the trustees of the applicable water improvement
district.
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