Bill Text: OH HB482 | 2009-2010 | 128th General Assembly | Engrossed

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Bill Title: To authorize a joint recreation district operating on the site of the United States Christopher Columbus Quincentenary Jubilee to issue revenue bonds, maintain lines of credit, and enter into lease purchase agreements for property; to expand the district's powers with respect to its own property; and to make certain appointments to the district's board permissive rather than mandatory.

Spectrum: Slight Partisan Bill (Democrat 14-7)

Status: (Engrossed - Dead) 2010-05-28 - To Finance & Financial Institutions [HB482 Detail]

Download: Ohio-2009-HB482-Engrossed.html

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As Passed by the House

128th General Assembly Regular Session 2009-2010

H. B. No. 482

Representative Garland 

Cosponsors: Representatives Bacon, Carney, Celeste, Grossman, Harris, Heard, Stewart, Weddington, Adams, J., Beck, Bubp, Chandler, Combs, DeBose, Domenick, Gerberry, Hackett, Letson, Luckie, Mallory 

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A BILL

To amend section 755.14 and to enact section 755.141

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of the Revised Code to authorize a joint

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recreation district operating on the site of the

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United States Christopher Columbus Quincentenary

4

Jubilee to issue revenue bonds, maintain lines of

5

credit, and enter into lease purchase agreements

6

for property; to expand the district's powers with

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respect to its own property; and to make certain

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appointments to the district's board permissive

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rather than mandatory.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 755.14 be amended and section 755.141	11
of the Revised Code be enacted to read as follows:	12

Sec. 755.14.  (A) If the legislative authority of a municipal	13
corporation determines that the power to equip, operate, and	14
maintain parks, playgrounds, playfields, gymnasiums, public baths,	15
swimming pools, or recreation centers shall be exercised by a	16
recreation board, it may establish such a board, which shall	17
possess all the powers and be subject to all the responsibilities	18
of the respective local authorities under sections 755.12 to	19
755.18 of the Revised Code. The board shall consist of five	20
persons, two of whom shall be members of the board of education of	21
the city or village school district or shall be appointed by that	22
board of education. The other members of the recreation board	23
shall be appointed by the mayor or manager as executive of such	24
municipal corporation with the consent of its council. The members	25
who are board of education members and members appointed by a	26
board of education shall be residents of the school district	27
making the appointment but need not be residents of the municipal	28
corporation. All other members of the board shall be residents of	29
the municipal corporation. All members of the board shall serve	30
for terms of five years, except that the members first appointed	31
shall be appointed for such terms that the term of one member	32
shall expire annually thereafter. Members of the board shall serve	33
without pay. Vacancies in the board, occurring otherwise than by	34
expiration of term, shall be for the unexpired term and shall be	35
filled in the same manner as original appointments.	36

(B)(1) The legislative authorities of the municipal	37
corporations, boards of township trustees of the townships, boards	38
of township park commissioners, boards of county commissioners of	39
the counties, and boards of education of the school districts	40
joined in the operation and maintenance of parks or recreation	41
facilities under section 755.16 of the Revised Code may, by	42
resolution, establish a joint recreation board which may possess	43
all the powers and be subject to all the responsibilities of the	44
respective local authorities under sections 755.12 to 755.18 of	45
the Revised Code. The resolutions shall specify the number of	46
members of the joint recreation board, other than any members who	47
may be appointed under division (B)(2) of this section, and the	48
method of appointing members and filling vacancies. Members of the	49
board shall serve without pay.	50

(2) If a park or recreational facility owned, operated, or	51
maintained by a joint recreation board created under division	52
(B)(1) of this section is the site where an exhibition sanctioned	53
by the United States Christopher Columbus quincentenary jubilee	54
commission is being or has been held and the exhibition is or was	55
sponsored by an organization that is also sponsoring or has	56
sponsored an exhibition sanctioned by the international	57
association of horticulture producers, then the governor, speaker	58
of the house of representatives, and president of the senate shall	59
each appoint one member to the board. The members appointed by the	60
speaker of the house of representatives and the president of the	61
senate may be members of the general assembly, but any members of	62
the general assembly appointed to the board shall be nonvoting	63
members and shall serve only while they remain members of the	64
general assembly. Members appointed under division (B)(2) of this	65
section shall serve terms of three years and serve without pay,	66
and all vacancies in their positions on the board, whether for an	67
unexpired term or at the end of a term, shall be filled in the	68
same manner as the original appointments.	69

(C) The legislative authorities of the several subdivisions	70
joined in the operation and maintenance of recreation facilities	71
under section 755.16 of the Revised Code may, by resolution,	72
establish a joint recreation district, consisting of all the	73
territory of the subdivisions so joined. The joint recreation	74
district board of trustees shall be the governing body of a	75
district and shall possess all the powers of a legislative	76
authority of an individual subdivision under sections 755.12 to	77
755.18 of the Revised Code. TheSubject to section 755.141 of the	78
Revised Code, the number of trustees shall be fixed by the	79
resolutions creating the district and may be any number so long as	80
there is representation of all participating subdivisions.	81

Sec. 755.141.  If a park or recreational facility owned,	82
operated, or maintained by a joint recreation district created	83
under division (C) of section 755.14 of the Revised Code is the	84
site where an exhibition sanctioned by the United States	85
Christopher Columbus quincentenary jubilee commission is being or	86
has been held and the exhibition is or was sponsored by the	87
organization that is also sponsoring or has sponsored an	88
exhibition sanctioned by the international association of	89
horticulture producers, the following provisions shall apply, in	90
addition to the provisions of sections 755.12 to 755.18 of the	91
Revised Code:	92

(A) The governor, speaker of the house of representatives,	93
and president of the senate shall each appoint one member to the	94
board of trustees of the district. These members may be members of	95
the general assembly, but any members of the general assembly	96
appointed to the board of trustees shall be nonvoting members and	97
shall serve only while they remain members of the general	98
assembly. Members appointed under this division shall serve terms	99
of three years and serve without pay, and all vacancies in their	100
positions on the board, whether for an unexpired term or at the	101
end of a term, shall be filled in the same manner as the original	102
appointments.	103

(B) The board of trustees of a joint recreation district may	104
designate the amounts and forms of property and casualty insurance	105
protection to be provided. The expense of providing the protection	106
shall be paid from operating funds of the joint recreation	107
district.	108

(C) The board of trustees of a joint recreation district may	109
acquire, construct, maintain, and operate horticultural	110
facilities, public banquet facilities, greenhouses, and such other	111
facilities as are authorized in section 755.16 of the Revised	112
Code.	113

(D)(1) By resolution of its board of trustees, the joint	114
recreation district may issue revenue bonds beyond the limit of	115
bonded indebtedness provided by law, for the acquisition,	116
construction, furnishing, or equipping of any real or personal	117
property, or any combination thereof which it is authorized to	118
acquire, construct, furnish, or equip, including all costs in	119
connection with or incidental thereto.	120

(2) The revenue bonds of the joint recreation district shall	121
be secured only by a pledge of and a lien on the revenues of the	122
joint recreation district that are designated in the resolution,	123
including, but not limited to, any property to be acquired,	124
constructed, furnished, or equipped with the proceeds of the bond	125
issue, after provision only for the reasonable cost of operating,	126
maintaining, and repairing the property of the joint recreation	127
district so designated. The bonds may further be secured by the	128
covenant of the joint recreation district to maintain rates or	129
charges that will produce revenues sufficient to meet the costs of	130
operating, maintaining, and repairing such property and to meet	131
the interest and principal requirements of the bonds and to	132
establish and maintain reserves for the foregoing purposes. The	133
board of trustees of the joint recreation district, by resolution,	134
may provide for the issuance of additional revenue bonds from time	135
to time, to be secured equally and ratably, without preference,	136
priority, or distinction, with outstanding revenue bonds, but	137
subject to the terms and limitations of any trust agreement	138
described in this section, and of any resolution authorizing bonds	139
then outstanding. The board of trustees, by resolution, may	140
designate additional property of the district, the revenues of	141
which shall be pledged and be subject to a lien for the payment of	142
the debt charges on revenue bonds theretofore authorized by	143
resolution of the board of trustees, to the same extent as the	144
revenues above described.	145

(3) In the discretion of the board of trustees, the revenue	146
bonds of the district may be secured by a trust agreement between	147
the joint recreation district and a corporate trustee, that may be	148
any trust company or bank having powers of a trust company, within	149
or without the state.	150

(4) The trust agreement may provide for the pledge or	151
assignment of the revenues to be received, but shall not pledge	152
the general credit and taxing power of the joint recreation	153
district. The trust agreement or the resolution providing for the	154
issuance of revenue bonds may set forth the rights and remedies of	155
the bondholders and trustees, and may contain other provisions for	156
protecting and enforcing their rights and remedies that are	157
determined in the discretion of the board of trustees to be	158
reasonable and proper. The agreement or resolution may provide for	159
the custody, investment, and disbursement of all moneys derived	160
from the sale of such bonds, or from the revenues of the joint	161
recreation district, other than those moneys received from taxes	162
levied pursuant to section 755.171 of the Revised Code, and may	163
provide for the deposit of such funds without regard to Chapter	164
135. of the Revised Code.	165

(5) All bonds issued under authority of this section,	166
regardless of form or terms and regardless of any other law to the	167
contrary, shall have all qualities and incidents of negotiable	168
instruments, subject to provisions for registration, and may be	169
issued in coupon, fully registered, or other form, or any	170
combination thereof, as the board of trustees determines.	171
Provision may be made for the registration of any coupon bonds as	172
to principal alone or as to both principal and interest, and for	173
the conversion into coupon bonds of any fully registered bonds or	174
bonds registered as to both principal and interest.	175

(6) The revenue bonds shall bear interest at such rate or	176
rates, shall bear such date or dates, and shall mature within	177
thirty years following the date of issuance and in such amount, at	178
such time or times, and in such number of installments, as may be	179
provided in or pursuant to the resolution authorizing their	180
issuance. Any original issue of revenue bonds shall mature not	181
later than thirty years from their date of issue. Such resolution	182
also shall provide for the execution of the bonds, which may be by	183
facsimile signatures unless prohibited by the resolution, and the	184
manner of sale of the bonds. The resolution shall provide for, or	185
provide for the determination of, any other terms and conditions	186
relative to the issuance, sale, and retirement of the bonds that	187
the board of trustees in its discretion determines to be	188
reasonable and proper.	189

(7) Whenever a joint recreation district considers it	190
expedient, it may issue renewal notes and refund any bonds,	191
whether the bonds to be refunded have or have not matured. The	192
final maturity of any notes, including any renewal notes, shall	193
not be later than five years from the date of issue of the	194
original issue of notes. The final maturity of any refunding bonds	195
shall not be later than the later of thirty years from the date of	196
issue of the original issue of bonds or the date by which it is	197
expected, at the time of issuance of the refunding bonds, that the	198
useful life of all of the property, other than interests in land,	199
refinanced with proceeds of the bonds will have expired. The	200
refunding bonds shall be sold and the proceeds applied to the	201
purchase, redemption, or payment of the bonds to be refunded and	202
the costs of issuance of the refunding bonds. The bonds and notes	203
issued under this section, their transfer, and the income	204
therefrom, shall at all times be free from taxation within the	205
state.	206

(E) A joint recreation district described in this section may	207
do all of the following:	208

(1) Operate or appoint agents to operate, or otherwise	209
provide for the operation of, its properties and its facilities,	210
activities, and programs and to enter into agreements and	211
arrangements related thereto, and to receive and apply the net	212
proceeds thereof solely to the management, operation, development,	213
maintenance, and repair of its properties, its buildings,	214
facilities, improvements, and grounds;	215

(2) Impose and collect a charge for admission for selective	216
events, exhibits, and facilities;	217

(3) Offer memberships of various denominations for selective	218
activities or facilities;	219

(4) Form advisory and other support committees to the board	220
of trustees to provide counsel and assistance to the board in the	221
management, operation, and development of its properties,	222
buildings, facilities, improvements, and grounds;	223

(5) Grant licenses, or enter into leases or contracts, for	224
the use of any part of its properties, facilities, buildings, and	225
grounds for such length of time and upon such terms and conditions	226
as the board of trustees deems appropriate and necessary, and	227
grant easements in, through, or over its property;	228

(6) Receive and accept from any federal, state, county,	229
municipal, or local government or agency, any grant or	230
contribution of money, property, labor, or other things of value,	231
to be held, used, and applied for the purpose for which such	232
grants and contributions are made; and	233

(7) Accept and expend gifts, grants, devises, and bequests of	234
money and property on behalf of the board of trustees and hold,	235
use, and apply such gifts, grants, devises, and bequests according	236
to the terms thereof.	237

(F)(1) For purposes of division (F)(2) of this section:

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(a) "Bank" has the same meaning as in section 1101.01 of the	239
Revised Code.	240

(b) "Savings and loan association" has the same meaning as in	241
section 1151.01 of the Revised Code.	242

(c) "Savings bank" has the same meaning as in section 1161.01	243
of the Revised Code.	244

(2) The board of trustees may enter into a contract for a	245
secured line of credit with a bank, savings and loan association,	246
or savings bank if the contract meets all of the following	247
requirements:	248

(a) The term of the contract does not exceed one year, except	249
that the contract may provide for the automatic renewal of the	250
contract for up to four additional one-year periods.	251

(b) The contract provides that the bank, savings and loan	252
association, or savings bank shall not commence a civil action	253
against the board, any member of the board, or the county or the	254
municipal corporation to recover the principal, interest, or any	255
charges or other amounts that remain outstanding on the secured	256
line of credit at the time of any default by the board.	257

(c) The contract provides that no assets other than those of	258
the joint recreation district can be used to secure the line of	259
credit.	260

(d) The terms and conditions of the contract comply with all	261
state and federal statutes and rules governing the extension of a	262
secured line of credit.	263

(3) Any obligation incurred by a board of trustees of a joint	264
recreation district pursuant to division (B) of this section is an	265
obligation of that board only and not a general obligation of the	266
board of county commissioners, the county, or the municipal	267
corporation within the meaning of division (Q) of section 133.01	268
of the Revised Code.	269

(G)(1) For purposes of division (G)(2) of this section,	270
"lease-purchase agreement" has the same meaning as a lease with an	271
option to purchase.	272

(2) For any purpose for which a board of trustees of a joint	273
recreation district described in this section is authorized to	274
acquire real or personal property, that board may enter into a	275
lease-purchase agreement in accordance with this section to	276
acquire the property.	277

The lease-purchase agreement shall provide for a series of	278
terms in which no term extends beyond the end of the fiscal year	279
of the joint recreation district in which that term commences. In	280
total, the terms provided for in the agreement shall be for not	281
more than the useful life of the real or personal property that is	282
the subject of the agreement. A property's useful life shall be	283
determined either by the maximum number of installment payments	284
permitted under the statute that authorizes the board to acquire	285
the property or, if there is no such provision, by the maximum	286
number of years to maturity provided for the issuance of bonds in	287
division (B) of section 133.20 of the Revised Code if bonds were	288
to be issued by a subdivision under that section to finance such	289
facilities. If the useful life cannot be determined under either	290
of those statutes, it shall be estimated as provided in division	291
(C) of section 133.20 of the Revised Code.	292

The lease-purchase agreement shall provide that, at the end	293
of the final term in the agreement, if all obligations of the	294
joint recreation district have been satisfied, the title to the	295
leased property shall vest in the joint recreation district if	296
that title has not vested in the joint recreation district before	297
or during the lease terms; except that the lease-purchase	298
agreement may require the joint recreation district to pay an	299
additional lump sum payment as a condition of obtaining that	300
title.	301

(3) A board of trustees of a joint recreation district that	302
enters into a lease-purchase agreement under this section may do	303
any of the following with the property that is the subject of the	304
agreement:	305

(a) If the property is personal property, assign the board's	306
rights to that property;	307

(b) Grant the lessor a security interest in the property;

308

(c) If the property is real property, grant leases,	309
easements, or licenses for underlying land or facilities under the	310
board's control for terms not exceeding five years beyond the	311
final term of the lease-purchase agreement.	312

(4) The authority granted in division (G) of this section is	313
in addition to and not in derogation of, any other financing	314
authority provided by law.	315

(H) The board of trustees of a joint recreation district	316
described in this section may exercise such other powers as shall	317
have been granted to it in the agreement between the municipal	318
corporation and the board of county commissioners establishing the	319
joint recreation district entered into pursuant to division (C) of	320
section 755.14 of the Revised Code.	321

Section 2. That existing section 755.14 of the Revised Code	322
is hereby repealed.	323