Bill Text: OH SB134 | 2013-2014 | 130th General Assembly | Introduced
Bill Title: Relative to the financing of capital improvement projects in this state by another state or a political subdivision of another state.
Sponsorship: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2013-05-15 - To Finance [SB134 Detail]
Download: Ohio-2013-SB134-Introduced.html
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Senators LaRose, Sawyer
Cosponsors:
Senators Uecker, Gardner
| To enact sections 9.58, 9.581, 9.582, 9.583, 9.584, | 1 |
| 9.585, 9.586, and 9.587 of the Revised Code | 2 |
| relative to the financing of capital improvement | 3 |
| projects in this state by another state or a | 4 |
| political subdivision of another state. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That sections 9.58, 9.581, 9.582, 9.583, 9.584, | 6 |
| 9.585, 9.586, and 9.587 of the Revised Code be enacted to read as | 7 |
| follows: | 8 |
| Sec. 9.58. (A) As used in sections 9.58 to 9.587 of the | 9 |
| Revised Code: | 10 |
| (1) "Eligible project" means any capital improvement project | 11 |
| located in this state that is designed to enhance, aid, provide, | 12 |
| or promote transportation, economic development, housing, health | 13 |
| care, recreation, education, government operations, culture, | 14 |
| research, or purposes or activities authorized by Section 13 or 16 | 15 |
| of Article VIII, Ohio Constitution. | 16 |
| (2) "Foreign entity" means a state other than this state, or | 17 |
| a political subdivision or governmental entity created by, or | 18 |
| pursuant to the laws of, a state other than this state. | 19 |
| (3) "Governmental agency" means a department, division, or | 20 |
| other unit of state government of this state or a municipal | 21 |
| corporation, county, township, port authority, transportation | 22 |
| improvement district, water or sewer district, solid waste | 23 |
| management district, school district or other public school, | 24 |
| health district, park district, soil and water conservation | 25 |
| district, water conservancy district, regional transit authority, | 26 |
| airport authority, or other political subdivision or public | 27 |
| corporation, district, agency, authority, or commission created | 28 |
| pursuant to the laws of this state or pursuant to an interstate | 29 |
| compact or agreement authorized under the laws of this state. | 30 |
| (B) A foreign entity shall not directly or indirectly provide | 31 |
| financing for an eligible project, through bonded indebtedness or | 32 |
| otherwise, unless it first obtains approval of the financing in | 33 |
| accordance with sections 9.581 and 9.582 of the Revised Code. | 34 |
| Sec. 9.581. (A) A foreign entity that intends to provide | 35 |
| financing for an eligible project shall apply for approval of the | 36 |
| proposed financing by submitting an application to one of the | 37 |
| following entities, as appropriate: | 38 |
| (1) If the project will be located within the territory of a | 39 |
| port authority, the port authority; | 40 |
| (2) If the project will not be located within the territory | 41 |
| of a port authority, but will be located within a municipal | 42 |
| corporation, the municipal corporation; | 43 |
| (3) If the project will not be located within the territory | 44 |
| of a port authority or a municipal corporation, the county within | 45 |
| which the project will be located. | 46 |
| (B) The application submitted by a foreign entity shall | 47 |
| provide the location of the project, a general description of the | 48 |
| purpose and use of the project, and the name, address, and contact | 49 |
| information of the project owner and the foreign entity. The | 50 |
| application shall be accompanied by a letter of commitment | 51 |
| executed by the foreign entity that describes the proposed | 52 |
| financing terms for the project. | 53 |
| Sec. 9.582. (A) The port authority, municipal corporation, | 54 |
| or county shall approve an application received under section | 55 |
| 9.581 of the Revised Code if both of the following apply: | 56 |
| (1) The proposed project is an eligible project. | 57 |
| (2) The port authority, municipal corporation, or county | 58 |
| determines that it cannot or will not provide financing for the | 59 |
| project on terms similar to or better than those described in the | 60 |
| foreign entity's letter of commitment. | 61 |
| (B) Within forty-five days after receiving an application, | 62 |
| the port authority, municipal corporation, or county shall provide | 63 |
| notice to the foreign entity of its decision to approve or deny | 64 |
| the application. If the port authority, municipal corporation, or | 65 |
| county fails to notify the foreign entity of its approval or | 66 |
| denial within that forty-five-day period, the application shall be | 67 |
| considered approved. | 68 |
| (C) If an application is denied, the foreign entity may | 69 |
| submit its application to the director of development services. | 70 |
| The director may approve the financing notwithstanding a prior | 71 |
| denial by the port authority, municipal corporation, or county. | 72 |
| Sec. 9.583. The approval of an application under section | 73 |
| 9.582 of the Revised Code shall not be considered an endorsement | 74 |
| of the validity, sufficiency, or legality of the proposed | 75 |
| financing. The port authority, municipal corporation, or county | 76 |
| that approves an application or, in the case of an approval by the | 77 |
| director of development services, the state, shall not incur any | 78 |
| liability or continuing obligation for the proposed financing, and | 79 |
| the financing shall not constitute a general obligation or debt, | 80 |
| or a pledge of the general credit, of the port authority, | 81 |
| municipal corporation, county, or state. | 82 |
| Sec. 9.584. (A) The approval of an application under section | 83 |
| 9.582 of the Revised Code is in addition to, and a condition of, | 84 |
| any other public approval requirement related to the financing of | 85 |
| an eligible project, including any approval authorized or | 86 |
| contemplated by section 9.97 of the Revised Code. | 87 |
| (B) If an application for the financing of an eligible | 88 |
| project has not been approved under section 9.582 of the Revised | 89 |
| Code, any public approval authorized or contemplated by section | 90 |
| 9.97 of the Revised Code for the financing of the project shall | 91 |
| not be given. Any public approval given in violation of division | 92 |
| (B) of this section is void. | 93 |
| Sec. 9.585. A governmental agency shall not directly or | 94 |
| indirectly utilize a foreign entity to provide financing for an | 95 |
| eligible project, through the issuance of bonded indebtedness or | 96 |
| otherwise, unless such financing of the project is approved under | 97 |
| section 9.582 of the Revised Code. Any financing agreement entered | 98 |
| into in violation of this section is void. | 99 |
| Sec. 9.586. (A) If a foreign entity provides financing for | 100 |
| an eligible project without applying to the appropriate port | 101 |
| authority, municipal corporation, or county for approval as | 102 |
| required by section 9.581 of the Revised Code, the foreign entity | 103 |
| shall pay to the port authority, municipal corporation, or county | 104 |
| an amount equal to seventy-five per cent of all fees charged by | 105 |
| the foreign entity to provide the financing, as and when those | 106 |
| fees accrue, or, if greater in the aggregate, an amount equal to | 107 |
| all fees the port authority, municipal corporation, or county | 108 |
| would have charged to provide the financing based on a | 109 |
| predetermined fee schedule, as and when those fees would become | 110 |
| due under that schedule. Any governmental agency or other person | 111 |
| benefited by or participating in the financing provided by the | 112 |
| foreign entity shall be jointly and severally liable with the | 113 |
| foreign entity to the port authority, municipal corporation, or | 114 |
| county for the fees. | 115 |
| (B) If a foreign entity provides financing for an eligible | 116 |
| project despite its application being denied under section 9.582 | 117 |
| of the Revised Code, the foreign entity shall pay to the | 118 |
| appropriate port authority, municipal corporation, or county an | 119 |
| amount equal to seventy-five per cent of all fees charged by the | 120 |
| foreign entity to provide the financing, as and when those fees | 121 |
| accrue, or, if greater in the aggregate, an amount equal to all | 122 |
| fees the port authority, municipal corporation, or county would | 123 |
| have charged to provide the financing based on a predetermined fee | 124 |
| schedule, as and when those fees would become due under that | 125 |
| schedule. Any governmental agency or other person benefited by or | 126 |
| participating in the financing provided by the foreign entity | 127 |
| shall be jointly and severally liable with the foreign entity to | 128 |
| the port authority, municipal corporation, or county for the fees. | 129 |
| Sec. 9.587. If a foreign entity provides financing for an | 130 |
| eligible project without applying to the appropriate port | 131 |
| authority, municipal corporation, or county as required by section | 132 |
| 9.581 of the Revised Code, or if a foreign entity provides | 133 |
| financing for an eligible project despite its application being | 134 |
| denied under section 9.582 of the Revised Code, the director of | 135 |
| development services or the appropriate port authority, municipal | 136 |
| corporation, or county may bring an action for injunctive relief | 137 |
| pursuant to Chapter 2727. of the Revised Code against the foreign | 138 |
| entity. Upon proof by clear and convincing evidence of a violation | 139 |
| of section 9.58 of the Revised Code, the port authority, municipal | 140 |
| corporation, or county shall be entitled to such injunctive | 141 |
| relief. Any injunction granted pursuant to this section shall have | 142 |
| statewide effect. | 143 |
