As Passed by the Senate

130th General Assembly Regular Session 2013-2014

S. B. No. 231

Senators Gardner, Hite 

Cosponsors: Senators LaRose, Lehner, Schaffer, Tavares 

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A BILL

To amend section 5705.10 of the Revised Code with

1

respect to the distribution of proceeds from the

2

sale of school district real property.

3

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

Section 1. That section 5705.10 of the Revised Code be	4
amended to read as follows:	5

Sec. 5705.10. (A) All revenue derived from the general levy	6
for current expense within the ten-mill limitation, from any	7
general levy for current expense authorized by vote in excess of	8
the ten-mill limitation, and from sources other than the general	9
property tax, unless its use for a particular purpose is	10
prescribed by law, shall be paid into the general fund.	11

(B) All revenue derived from general or special levies for	12
debt charges, whether within or in excess of the ten-mill	13
limitation, which is levied for the debt charges on serial bonds,	14
notes, or certificates of indebtedness having a life less than	15
five years, shall be paid into the bond retirement fund; and all	16
such revenue which is levied for the debt charges on all other	17
bonds, notes, or certificates of indebtedness shall be paid into	18
the sinking fund.	19

(C) All revenue derived from a special levy shall be credited	20
to a special fund for the purpose for which the levy was made.	21

(D) Except as otherwise provided by resolution adopted	22
pursuant to section 3315.01 of the Revised Code, all revenue	23
derived from a source other than the general property tax and	24
which the law prescribes shall be used for a particular purpose,	25
shall be paid into a special fund for such purpose. Except as	26
otherwise provided by resolution adopted pursuant to section	27
3315.01 of the Revised Code or as otherwise provided by section	28
3315.40 of the Revised Code, all revenue derived from a source	29
other than the general property tax, for which the law does not	30
prescribe use for a particular purpose, including interest earned	31
on the principal of any special fund, regardless of the source or	32
purpose of the principal, shall be paid into the general fund.	33

(E) All proceeds from the sale of public obligations or	34
fractionalized interests in public obligations as defined in	35
section 133.01 of the Revised Code, except premium and accrued	36
interest, shall be paid into a special fund for the purpose of	37
such issue, and any interest and other income earned on money in	38
such special fund may be used for the purposes for which the	39
indebtedness was authorized or may be credited to the general fund	40
or other fund or account as the taxing authority authorizes and	41
used for the purposes of that fund or account. The premium and	42
accrued interest received from such sale shall be paid into the	43
sinking fund or the bond retirement fund of the subdivision.	44

(F) Except as provided in divisions (G) and (H) of this	45
section, if a permanent improvement of the subdivision is sold,	46
the amount received from the sale shall be paid into the sinking	47
fund, the bond retirement fund, or a special fund for the	48
construction or acquisition of permanent improvements; provided	49
that the proceeds from the sale of a public utility shall be paid	50
into the sinking fund or bond retirement fund to the extent	51
necessary to provide for the retirement of the outstanding	52
indebtedness incurred in the construction or acquisition of such	53
utility. Proceeds from the sale of property other than a permanent	54
improvement shall be paid into the fund from which such property	55
was acquired or is maintained or, if there is no such fund, into	56
the general fund.	57

(G) A township that has a population greater than fifteen	58
thousand according to the most recent federal decennial census and	59
that has declared one or more improvements in the township to be a	60
public purpose under section 5709.73 of the Revised Code may pay	61
proceeds from the sale of a permanent improvement of the township	62
into its general fund if both of the following conditions are	63
satisfied:	64

(1) The township fiscal officer determines that all	65
foreseeable public infrastructure improvements, as defined in	66
section 5709.40 of the Revised Code, to be made in the township in	67
the ten years immediately following the date the permanent	68
improvement is sold will have been financed through resolutions	69
adopted under section 5709.73 of the Revised Code on or before the	70
date of the sale. The fiscal officer shall provide written	71
certification of this determination for the township's records.	72

(2) The permanent improvement being sold was financed	73
entirely from moneys in the township's general fund.	74

(H) If a board of education of a school district disposes of	75
real property under section 3313.41 of the Revised Code, the	76
proceeds received from the sale shall be used to retirefor either	77
of the following purposes:	78

(1) The retirement of any debt that was incurred by the	79
district with respect to that real property. Proceeds in excess of	80
the funds necessary to retire that debt may be paid into the	81
school district's capital and maintenance fund and used only to	82
pay for the costs of nonoperating capital expenses related to	83
technology infrastructure and equipment to be used for instruction	84
and assessment.	85

(2) Payment into a special fund for the construction or	86
acquisition of permanent improvements.	87

(I) Money paid into any fund shall be used only for the	88
purposes for which such fund is established.	89

Section 2. That existing section 5705.10 of the Revised Code	90
is hereby repealed.	91