HB 49: Allow for creation of water improvement districts

As Introduced

36th 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, 1
6120.031, 6120.032, 6120.033, 6120.04, 6120.05, 2
6120.06, 6120.07, 6120.08, 6120.09, 6120.10, 3
6120.11, 6120.12, 6120.13, 6120.14, 6120.15, 4
6120.16, 6120.17, 6120.18, and 6120.19 of the 5
Revised Code to allow for the creation of water 6
improvement districts. 7

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

Section 1. That sections 6120.01, 6120.02, 6120.03, 8
6120.031, 6120.032, 6120.033, 6120.04, 6120.05, 6120.06, 9
6120.07, 6120.08, 6120.09, 6120.10, 6120.11, 6120.12, 6120.13, 10
6120.14, 6120.15, 6120.16, 6120.17, 6120.18, and 6120.19 of the 11
Revised Code be enacted to read as follows: 12

Sec. 6120.01. As used in this chapter: 13

(A) "Action" means any decision made or agreement entered 14
into regarding a waste water facility or water management 15
facility located in a county in which a water improvement 16
district appeals board has been created under section 6120.16 of 17
the Revised Code. 18

H. B. No. 49 As Introduced

(B) "Administrative agent," "agent," "commercial paper," 19
"floating rate interest structure," "indexing agent," "interest 20
rate hedge," "interest rate period," "put arrangement," and 21
"remarketing agent" have the same meanings as in section 9.98 of 22
the Revised Code. 23
(C) "Appellant" means a person or governmental agency who 24
opposes an action and files an appeal with the water district 25
improvement appeals board in accordance with this chapter. 26
(D) "Appellee" means the person or governmental agency 27
that took the action that is the subject of an appeal. 28
(E) "Bond proceedings" means the resolutions, trust 2
agreements, certifications, notices, sale proceedings, leases, 3
lease-purchase agreements, assignments, credit enhancement 3
facility agreements, and other agreements, instruments, and 3
documents, as amended and supplemented, or any one or more of 3
combination thereof, authorizing, or authorizing or providing 3
for the terms and conditions applicable to, or providing for the 3
security or sale or award or liquidity of, bonds, and includes 3
the provisions set forth or incorporated in those bonds and bond 3
proceedings. 38

(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

H. B. No. 49 As Introduced

service charges on bonds provided for by those proceedings, 48
including all money and investments, and earnings from 49
investments, credited and to be credited to that fund as 50
provided in the bond proceedings. 51
(H) "Bonds" means bonds, notes, including notes 52
anticipating bonds or other notes, commercial paper, 53
certificates of participation, or other evidences of obligation, 54
including any interest coupons pertaining thereto, issued 55
pursuant to this chapter. 56
(I) "Cost," as applied to a water project, means the cost 57
of acquisition and construction of a project, including all of 58
the following: 59
(1) The cost of the acquisition of all land, rights-of- 60
way, property rights, easements, franchise rights, and interests 61
required; 62
(2) The cost of demolishing or removing any buildings or 63
structures on land so acquired, including the cost of acquiring 64
any lands to which such buildings or structures may be moved; 65
(3) The cost of acquiring or constructing and equipping a 66
principal office and sub-offices of the district; 67
(4) The cost of diverting highways, interchange of 68
highways, and access roads to private property, including the 69
cost of land or easements therefor; 70
(5) The cost of all machinery, furnishings, and equipment, 71
including any financing charges or interest incurred prior to 72
and during construction and incurred not more than eighteen 73
months after completion of project acquisition or construction; 74
(6) Costs of engineering, expenses of research and 75

H. B. No. 49 As Introduced

development with respect to waste water or water management 76
facilities, legal expenses, plans, specifications, surveys, 77
estimates of cost and revenues, working capital, other expenses 78
necessary or incident to determining the feasibility or 79
practicability of acquiring or constructing a project, 80
administrative expense, and such other expenses as may be 81
necessary or incident to the acquisition or construction of a 82
project; 83
(7) The financing of the acquisition or construction of a 84
project, including the amount authorized in the resolution of 85
the board of trustees of the district providing for the issuance 86
of water resource revenue bonds to be paid into any special 87
funds from the proceeds of those bonds and the financing of the 88
placing of any such project in operation. 89
"Cost" includes any obligation or expense incurred by any 90
governmental agency or person for surveys, borings, preparation 91
of plans and specifications, and other engineering services, or 92
any other cost described above, in connection with the 93
construction or acquisition of a project. 94
(J) "Credit enhancement facilities" means letters of 95
credit, lines of credit, standby, contingent, or firm securities 96
purchase agreements, insurance, or surety arrangements, 97
guarantees, and other arrangements that provide for direct or 98
contingent payment of bond service charges, for security or 99
additional security in the event of nonpayment or default in 100
respect of bonds, or for making payment of bond service charges 101
and at the option and on demand of bondholders or at the option 102
of the district or upon certain conditions occurring under put 103
or similar arrangements, or for otherwise supporting the credit 104
or liquidity of the bonds, and includes credit, reimbursement, 105

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marketing, remarketing, indexing, carrying, interest rate hedge, 106
and subrogation agreements, and other agreements and 107
arrangements for payment and reimbursement of the person 108
providing the credit enhancement facility and the security for 109
that payment and reimbursement. 110

(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

H. B. No. 49 As Introduced

United States or any agency thereof. 137
(M) "Net revenues" means revenues lawfully available to 138
pay both current operating expenses of a district and bond 139
service charges in any fiscal year or other specified period, 140
less current operating expenses of the district and any amount 141
necessary to maintain a working capital reserve for that period. 142
(N) "Outstanding" as applied to bonds means outstanding in 143
accordance with the terms of the bonds and the applicable bond 144
proceedings. 145
(O) "Owner" includes any person having any title or 146
interest in any property authorized to be acquired by a district 147
under this chapter. 148
(P) "Pledged revenues" means net revenues, money and 149
investments, and earnings on those investments, in the 150
applicable bond service fund and any other special funds, and 151
the proceeds of any bonds issued for the purpose of refunding 152
prior bonds, all as lawfully available and by resolution of the 153
board of trustees of the district committed for application as 154
pledged revenues to the payment of bond service charges on 155
particular issues of bonds. 156
(Q) "Project" or "water project" means any waste water 157
facility or water management facility constructed, 158
reconstructed, or repaired under this chapter, including all 159
buildings and facilities that the board of trustees of the 160
district considers necessary for the operation of the project, 161
together with all property and rights that must be acquired by 162
the board to construct, reconstruct, or repair the project. 163
(R) "Property" includes interests in property. 164
(S) "Refund" means to fund and retire outstanding bonds, 165

H. B. No. 49

As Introduced
including advance refunding with or without payment or 166
redemption prior to stated maturity. 167
(T) "Revenues" means all money received by a district for 168
the use or services of any project, all special assessments 169
levied by the board of trustees of the district pursuant to this 170
chapter, any gift or grant received with respect to a project, 171
proceeds of bonds to the extent the use thereof for payment of 172
principal or of premium, if any, or interest on the bonds is 173
authorized by the board of trustees of the district, proceeds 174
from any insurance, condemnation, or guaranty pertaining to a 175
project or property mortgaged to secure bonds or pertaining to 176
the financing of a project, and income and profit from the 177
investment of the proceeds of bonds or of any revenues. 178
(U) "Special funds" means the applicable bond service fund 179
and any accounts and subaccounts in that fund, any other funds 180
or accounts permitted by and established under, and identified 181
as a special fund or special account in, the bond proceedings, 182
including any special fund or account established for purposes 183
of rebate or other requirements under federal income tax laws. 184
(V) "Waste water facilities," "water management 185
facilities," "waters of the state," "sewage," "waste water," and 186
"construction" have the same meanings as in section 6119.011 of 187
the Revised Code. 188
(W) "Water improvement district" or "district" means a 189
water improvement district designated pursuant to section 190
6120.02 of the Revised Code. 191
Sec. 6120.02. (A) A water improvement district may be 192
created by the board of county commissioners of a county by 193
resolution for the purpose of facilitating, coordinating, 194

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funding, financing, constructing, reconstructing, or repairing	195
water projects or engaging in any combination of those	196
activities. In furtherance of such purposes, the board of	197
trustees of the district shall enter into an intergovernmental	198
agreement with one or more governmental agencies that specifies	199
that such governmental agency or agencies shall operate and	200
maintain the project under such terms as specified in the	201
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water improvement district's board of trustees approve a	203
project.	204
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and politic, and the exercise by it of the powers conferred by	206
this chapter in facilitating, coordinating, funding, financing,	207
constructing， reconstructing, or repairing a water project are	208
essential governmental functions.	209
(C)(l) Subject to division (C)(2) of this section, a water	210
improvement district shall be governed by a board of trustees	211
	212
follows:	213
(a) The county sanitary engineer or the county sanitary	214
engineer's designee if a county sanitary engineer has been	215
appointed for the county or, if a county sanitary engineer has not been appointed for the county, the county engineer or the	216
county engineer's designee;	217
	218
(b) Four members, appointed by the board of county commissioners, who have experience in waste water facilities,	219
waste water, sewage, or water management facilities;	220 221
(c) One member appointed by the regional planning	222
commission for the county, who shall be a nonvoting member of	223

H. B. No. 49 As Introduced

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.

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(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

H. B. No. 49 As Introduced

money is available to use for that purpose. 253
(2) The water improvement district board of trustees may 254
establish fees related to its services in order to pay costs 255
incurred by the district in the exercise of its functions under 256
this chapter. 257
(G) An organizational meeting of the board of trustees of 258
a water improvement district created under this section shall be 259
held at the time and place designated by the board member who 260
was appointed by the regional planning commission for the 261
county. 262
Sec. 6120.03. (A) A water improvement district may do any 263
of the following: 264
(1) Adopt bylaws for the regulation of its affairs and the 265
conduct of its business; 266
(2) Adopt an official seal; 267
(3) Sue and be sued in its own name, plead and be 268
impleaded, provided any actions against the district shall be 269
brought in the court of common pleas of the county in which the 270
principal office of the district is located, or in the court of 271
common pleas of the county in which the cause of action arose, 272
and all summonses, exceptions, and notices of every kind shall 273
be served on the district by leaving a copy thereof at its 274
principal office with the secretary-treasurer; 275
(4) Facilitate, coordinate, fund, finance, construct, 276
reconstruct, or repair projects or engage in a combination of 277
any of those activities; 278
(5) Issue either or both of the following for the purpose 279
of providing funds to pay the costs of any project or part 280

H. B. No. 49 As Introduced

thereof: 281
(a) Water improvement district revenue bonds; 282
(b) Bonds pursuant to Section 13 of Article VIII, Ohio 283
Constitution. 284
(6) Maintain such funds as it considers necessary; 285
(7) Direct its agents or employees, when properly 286
identified in writing and after at least five days' written 287
notice, to enter upon lands within its jurisdiction to make 288
surveys and examinations preliminary to the construction, 289
reconstruction, or repair of projects for the district, without 290
liability of the district or its agents or employees except for 291
actual damage done; 292
(8) Make and enter into all contracts and agreements, 293
including an intergovernmental agreement as specified in 294
division (A) of section 6120.02 of the Revised Code, necessary 295
or incidental to the performance of its functions and the 296
execution of its powers under this chapter; 297
(9) Employ or retain or contract for the services of 298
consulting engineers, superintendents, managers, and such other 299
engineers, construction and accounting experts, auditors, 300
financial advisers, trustees, marketing, remarketing, and 301
administrative agents, attorneys, and other employees, 302
independent contractors, or agents as are necessary in its 303
judgment and fix their compensation, provided all such expenses 304
shall be payable solely from the proceeds of bonds or from 305
revenues; 306
(10) Receive and accept from any governmental agency, 307
loans and grants for or in aid of the construction, 308
reconstruction, or repair of any project, and receive and accept 309

H. B. No. 49 As Introduced

aid or contributions from any source or person of money, 310
property, labor, or other things of value, to be held, used, and 311
applied only for the purposes for which such loans, grants, and 312
contributions are made. Nothing in division (A)(10) of this 313
section shall be construed as imposing any liability on this 314
state for any loan received by a water improvement district from 315
a third party unless this state has entered into an agreement to 316
accept such liability. 317
(11) Acquire, hold, and dispose of property in the 318
exercise of its powers and the performance of its duties under 319
this chapter; 320
(12) Subject to section 6120.15 of the Revised Code, enter 321
into an agreement with a contiguous board of county 322
commissioners other than the board of county commissioners that 323
created the water improvement district, for the district to 324
exercise all or any portion of its powers with respect to a 325
project that is located wholly or partially within the county 326
that is party to the agreement; 327
(13) Cooperate with any governmental agencies in the 328
planning, design, acquisition, construction, maintenance, 329
funding, and financing of projects; 330
(14) Enter into an agreement with the board of county 331
commissioners that created the water improvement district and 332
with the boards of county commissioners of any contiguous group 333
of counties to exercise all powers of the district with respect 334
to a project that is both of the following: 335
(a) Located partially or wholly within any county that is 336
a party to the agreement; 337
(b) Partially funded with federal money. 338

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(15) Do all acts necessary and proper to carry out the 339
powers expressly granted in this chapter. 340
(B) Chapters 123. and 124. of the Revised Code do not 341
apply to contracts or projects of a water improvement district. 342
Sec. 6120.031. (A) As used in this section, "public 343
improvement" means the construction, reconstruction, or repair 344
of any waste water or water management facility. 345
(B) The board of trustees of a water improvement district 346
may provide for a public improvement and levy special 347
assessments, if the board determines that the public improvement 348
will benefit the area where it will be constructed, 349
reconstructed, or repaired. However, if the improvement is 350
proposed for territory in a political subdivision located 351
outside the district's territory, the legislative authority of 352
that political subdivision shall approve the undertaking of the 353
improvement within the political subdivision. 354
(C) If any improvements are made under this section, 355
contracts for the improvement may provide that the improvement 356
may be owned by the district or by the person or corporation 357
supplying it to the district under a lease. 358
(D) If the board of trustees of a district proposes an 359
improvement described in division (B) of this section, the board 360
shall conduct a hearing on the proposed improvement. The board 361
shall indicate by metes and bounds the area in which the public 362
improvement will be made and the area that will benefit from the 363
improvement. 364
(E) The board of trustees shall fix a day for a hearing on 365
the proposed improvement. The secretary-treasurer of the board 366

shall deliver, to each owner of a parcel of land or a lot that

H. B. No. 49 As Introduced

the board identifies as benefiting from the proposed 368
improvement, a notice that sets forth the substance of the 369
proposed improvement and the time and place of the hearing on 370
it. At least fifteen days before the date set for the hearing, a 371
copy of the notice shall be served upon the owner or left at the 372
owner's usual place of residence, or, if the owner is a 373
corporation, upon an officer or agent of the corporation. On or 374
before the day of the hearing, the person serving notice of the 375
hearing shall make return thereon, under oath, of the time and 376
manner of service, and shall file the notice with the secretary- 377
treasurer of the board. 378
At least fifteen days before the day set for the hearing 379
on the proposed improvement, the secretary-treasurer shall give 380
notice to each nonresident owner of a lot or parcel of land in 381
the area to be benefited by the improvement, by publication once 382
in a newspaper of general circulation in the one or more 383
counties in which this area is located. The publication of the 384
notice shall be verified by affidavit of the printer or other 385
person having knowledge of the publication and shall be filed 386
with the secretary-treasurer of the district on or before the 387
date of the hearing. 388
(F) At the time and place specified in the notice for a 389
hearing on the proposed improvement, the board of trustees of 390
the district shall meet and hear any and all testimony provided 391
by any of the parties affected by the proposed improvement and 392
by any other persons competent to testify. The board or its 393
representatives shall inspect, by an actual viewing, the area to 394
be benefited by the proposed improvement. The board shall 395
determine the necessity of the proposed improvement and may find 396
that the proposed improvement will result in general as well as 397
special benefits. The board may adjourn from time to time and to 398

H. B. No. 49 As Introduced

such places as it considers necessary. 399

(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

H. B. No. 49 As Introduced

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.

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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

H. B. No. 49 As Introduced

the sole determiner of the definition, extent, and allocation of 459
the benefit resulting from an improvement that the board 460
authorizes under this section. 461

(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.

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(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	489
affected thereby by the environmental protection agency. Any	490
resolution of the board of trustees of the district providing	491
for constructing, reconstructing, or repairing such projects	492
shall include a finding by the board of trustees of the district	493
that those determinations have been made.	494
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this section, notwithstanding any contrary provision in sections	496
4115.03 to 4115.21 and 4115.99 of the Revised Code, a water	497
project undertaken by, or under contract for, a water	498
improvement district is not a public improvement for purposes of
Section 4115.03 of the Revised Code.	499 500
(B) A water improvement district may elect to apply
sections 4115.03 to 4115.21 and 4115.99 of the Revised Code to a	501 502
water project undertaken by， or under contract for， the	503
district. If a district makes an election under this division,	504
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comply with sections 4115.03 to 4115.21 of the Revised Code.	506
Sec. 6120.04. (A) A water improvement district may acquire
by purchase, lease, lease-purchase, lease with option to	507 508
purchase, appropriation, or otherwise and in such manner and for	509
such consideration as it considers proper, any public or private	510
property necessary, convenient, or proper for the construction,	511
reconstruction, or repair of a project. The district may pledge	512
net revenues, to the extent permitted by this chapter with	513
respect to bonds, to secure payments to be paid by the district	514
under such a lease, lease-purchase agreement, or lease with	515
option to purchase. Title to real and personal property shall be	516
held in the name of the district. In any proceedings for	517
appropriation under this section, the procedure to be followed	518

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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 538
district may acquire real property in fee simple in the name of 539
the district in connection with, but in excess of that needed 540
for, a project by any method other than appropriation and hold 541
the property for such period of time determined by the board. 542
All right, title, and interest of the district in the property 543
may be sold at public auction or otherwise, as the board 544
considers in the best interests of the district; but in no event 545
shall the property be sold for less than two-thirds of its 546
appraised value. Sale at public auction shall be undertaken only 547
after the board advertises the sale in a newspaper of general 548

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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 vicechairperson 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.

H. B. No. 49 As Introduced

(C) Subject to the bond proceedings and provisions for

registration, the bonds shall have all the qualities and

581 incidents of negotiable instruments under Title XIII of the 582

Revised Code. The bonds may be issued in such form or forms sas 583

the board determines, including without limitation coupon, book 584

entry， and fully registered form, and provision may be made for 585

the registration of any coupon bonds as to principal alone and 586

also as to both principal and interest, and for the exchange of 587

bonds between forms. The board may sell such bonds by 588

competitive bid on the best bid after advertisement or request 589

590

determines to be for the best interest of the district. 591

(D) The proceeds of the bonds of each issue shall be used 592

solely for the payment of the costs of the project or projects 593

for which the bonds were issued, and shall be disbursed in such 594

manner and under such restrictions as the board provides in the 595

bond proceedings. 596

(E） Prior to the preparation of definitive bonds， the 597

board may, under like restrictions, issue interim receipts or 598

temporary bonds or bond anticipation notes, with or without 599

coupons, exchangeable for definitive bonds when such bonds have 009

been executed and are available for delivery. The board may 601

provide for the replacement of any mutilated, stolen, destroyed, 602

or lost bonds. 603

(F) Sections 9.98 to 9.983 of the Revised Code apply to 604

the bonds. 605

(G) The bond proceedings shall provide, subject to the 909

provisions of any other applicable bond proceedings, for the 607

pledge to the payment of bond service charges and of any costs 608

of or relating to credit enhancement facilities of all， or such 609

H. B. No. 49

As Introduced
part as the board may determine, of the pledged revenues and the 610
applicable special fund or funds, which pledges may be made to 611
secure the bonds on a parity with bonds theretofore or 612
thereafter issued if and to the extent provided in the bond 613
proceedings. Every pledge, and every covenant and agreement with 614
respect thereto, made in the bond proceedings may in the bond 615
proceedings be extended to the benefit of the owners and holders 616
of bonds and to any trustee and any person providing a credit 617
enhancement facility for those bonds, for the further security 618
for the payment of the bond service charges and credit 619
enhancement facility costs. 620
(H) The bond proceedings may contain additional provisions 621
as to: 622
(1) The redemption of bonds prior to maturity at the 623
option of the board or of the bondholders or upon the occurrence 624
of certain stated conditions, and at such price or prices and 625
under such terms and conditions as are provided in the bond 626
proceedings; 627
(2) Other terms of the bonds; 628
(3) Limitations on the issuance of additional bonds; 629
(4) The terms of any trust agreement securing the bonds or 630
under which the same may be issued; 631
(5) Any or every provision of the bond proceedings being 632
binding upon the board and state agencies, or other person as 633
may from time to time have the authority under law to take such 634
actions as may be necessary to perform all or any part of the 635
duty required by such provision; 636
(6) Any provision that may be made in a trust agreement; 637

H. B. No. 49 As Introduced

(7) Any other or additional agreements with the holders of 638
the bonds, or the trustee therefor, relating to the bonds or the 639
security for the bonds, including agreements for credit 640
enhancement facilities. 641
(I) Any holder of bonds or a trustee under the bond 642
proceedings, except to the extent that the holder's or trustee's 643
rights are restricted by the bond proceedings, may by any 644
suitable form of legal proceedings, protect and enforce any 645
rights under the laws of this state or granted by the bond 646
proceedings. Those rights include the right to compel the 647
performance of all duties of the board required by this chapter 648
or the bond proceedings; to enjoin unlawful activities; and in 649
the event of default with respect to the payment of any bond 650
service charges on any bonds or in the performance of any 651
covenant or agreement on the part of the board contained in the 652
bond proceedings, to apply to a court having jurisdiction of the 653
cause to appoint a receiver to receive and administer the 654
revenues and the pledged revenues which are pledged to the 655
payment of the bond service charges on such bonds or that are 656
the subject of the covenant or agreement, with full power to 657
pay, and to provide for payment of, bond service charges on such 658
bonds, and with such powers, subject to the direction of the 659
court, as are accorded receivers in general equity cases, 660
excluding any power to pledge additional revenue or receipts or 661
other income, funds, or money of the board to the payment of 662
such bond service charges and excluding the power to take 663
possession of, mortgage, or cause the sale or otherwise dispose 664
of any project or other property of the board. 665
(J) Each duty of the board and the board's officers and 666
employees, undertaken pursuant to the bond proceedings, is 667
hereby established as a duty of the board, and of each such 668

H. B. No. 49 As Introduced

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

H. B. No. 49 As Introduced

service charges, and for the establishment and maintenance of 699
any reserves and special funds, as provided in the bond 700
proceedings, and make other provisions therein with respect to 701
pledged revenues, revenues, and net revenues as authorized by 702
this chapter, which provisions shall be controlling 703
notwithstanding any other provisions of law pertaining thereto. 704

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

H. B. No. 49 As Introduced

their payment as authorized by this chapter and as provided in 729
the bond proceedings. All bonds shall contain on their face a 730
statement to that effect. 731
(B) All expenses incurred in carrying out this chapter 732
shall be payable solely from revenues provided under this 733
chapter. This chapter does not authorize the board of trustees 734
of a district to incur indebtedness or liability on behalf of or 735
payable by the state or any political subdivision of the state. 736
Sec. 6120.10. (A) In the discretion of the board of 737
trustees of a water improvement district any bonds may be 738
secured by a trust agreement between the board and a corporate 739
trustee, which may be any trust company or bank having the 740
powers of a trust company within or without the state but 741
authorized to exercise trust powers within this state. 742
(B) Any trust agreement may pledge or assign the revenues 743
to be received, but shall not convey or mortgage any project or 744
any part thereof. Any such trust agreement or other bond 745
proceedings may contain such provisions for protecting and 746
enforcing the rights and remedies of the bondholders as are 747
reasonable and proper and not in violation of law, including 748
covenants setting forth the duties of the board in relation to 749
the acquisition of property, and the construction, 750
reconstruction, and repair of the project or projects in 751
connection with which such bonds are authorized and the custody, 752
safeguarding, and application of all money, and provisions for 753
the employment or retention of the services of consulting 754
engineers in connection with the construction, reconstruction, 755
or repair of the project or projects. Any bank or trust company 756
incorporated under the laws of this state which may act as 757
depository of the proceeds of bonds or of revenues may furnish 758

H. B. No. 49 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

H. B. No. 49 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

H. B. No. 49 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

H. B. No. 49 As Introduced

appeals board shall be created by the board of county 851
commissioners. The appeals board has exclusive original 852
jurisdiction over any action regarding a waste water facility or 853
water management facility located in the county in which the 854
appeals board is located, including an action regarding any 855
water project facilitated, coordinated, funded, financed, 856
constructed, reconstructed, or repaired under this chapter in 857
that county. 858
(B) A water improvement district appeals board shall 859
consist of eleven voting members and one nonvoting member as 860
follows: 861
(1) The five members of the board of trustees of the water 862
improvement district; 863
(2) Two members appointed by the legislative authority of 864
the most populous municipal corporation in the district; 865
(3) One member appointed by the legislative authority of 866
the second most populous municipal corporation in the district; 867
(4) One member appointed by the township trustee 868
association within the district. Absent such an association, one 869
member shall be appointed by the board of township trustees of 870
the most populous township in the county's unincorporated area. 871
(5) One member appointed by the county engineer who 872
represents regional water and sewer districts. If there is no 873
regional water and sewer district in the county, one member 874
shall be appointed by the county engineer who has expertise on 875
matters related to water and wastewater management. 876
(6) One member appointed by the board of county 877
commissioners who is an expert on matters related to water and 878

wastewater management;

879

H. B. No. 49 As Introduced

(7) One member appointed by the regional planning 880
commission for the county, who shall be a nonvoting member of 881
the board. 882
(C) Each appointed member of the appeals board shall hold 883
office for a term of two years, subject to removal by the 884
appointing authority only for malfeasance. Members may be 885
reappointed. Except as otherwise provided in this division, any 886
vacancy on the appeals board shall be filled in the same manner 887
as the original appointment. 888
(D) The voting members of the appeals board shall elect 889
from the entire board membership a chairperson, vice- 890
chairperson, and secretary-treasurer. A majority of the voting 891
members of the appeals board constitutes a quorum, the 892
affirmative vote of which is necessary for any decision. No 893
vacancy in the membership of the appeals board impairs the right 894
of a quorum to exercise all the rights and perform all its 895
duties. 896
(E) Each member of the board shall serve without 897
compensation but shall be reimbursed for all actual and 898
necessary expenses incurred in the performance of official 899
duties. 900
Sec. 6120.17. (A) The water improvement district appeals 901
board shall adopt or amend, as appropriate, regulations 902
governing procedure to be followed for hearings before it, 903
including regulations governing all of the following: 904
(1) Procedures for conducting hearings on appeals that are 905
not in conflict with section 6120.18 of the Revised Code; 906
(2) Procedures for issuing final decisions that are not in 907
conflict with section 6120.18 of the Revised Code; 908

H. B. No. 49 As Introduced

(3) Stays. The regulations shall specify that if an appeal
of an action made by a water improvement district board is	909 910
filed, such action shall not go into effect until the water
	911
thematter.	912
	913
(B) No regulation adopted by the appeals board shall be	914
effective until the tenth day after it has been adopted by the	915
filing of a certified copy thereof with the secretary of state	916
who shall record it under the heading "regulations of the	917
[insert name of county] water improvement district appeals	918
board." The regulations shall be numbered consecutively under	919
	920
shall be public records open to public inspection.	921
(C) No regulation filed in the office of the secretary of state pursuant to this section shall be amended except by a	922
regulation which contains the entire regulation as amended and	923
which repeals the regulation amended. Each regulation which	924 925
amends a regulation shall bear the same consecutive regulation
number as the number of the regulation which it amends, and it	926 927
shall bear the date of filing.	928
(D) No regulation filed in the office of the secretary of	929
state pursuant to this section shall be repealed except by a
regulation. Each regulation which repeals a regulation shall	930
bear the same consecutive regulation number as the number of the	931 932
regulation which it repeals, and it shall bear the date of	933
filing.	934
(E) The authority and the duty of the appeals board to	935
adopt regulations under this section is not governed by or	936
subject to Chapter 1l9. of the Revised Code.	937

H. B. No. 49 Page 33
As Introduced
(F) The appeals board shall have available at all times 938
copies of all regulations of the appeals board that it has filed 939
in the office of the secretary of state pursuant to this section 940
and shall furnish them free of charge to any person requesting 941
them. 942
(G) The appeals board shall maintain and keep available 943
for public inspection, at its principal office, a current 944
register of all appeals filed, hearings pending, its final 945
decision thereon, and the dates on which such filings, hearings, 946
and final decision occur. 947
Sec. 6120.18. (A) (1) Any person who has an interest in an 948
action may file an appeal with the applicable water improvement 949
district appeals board for a decision that modifies or revokes 950
the action. Such appeal shall be filed not later than fifteen 951
days after the action or after the appeals board is created, 952
whichever event occurs later. 953
(2) An appeal shall be in writing and shall set forth the 954
action complained of and the grounds upon which the appeal is 955
based. The chairperson of the appeals board shall notify all 956
members of the appeals board of the filing of an appeal and any 957
other person that is a party to the proceeding not later than 958
twenty-four hours after such filing. 959
(3) A hearing concerning an appeal shall be conducted not 960
later than fifteen days after the filing of the appeal. 961
(4) A hearing concerning an appeal brought under this 962
section is subject to section 121.22 of the Revised Code. 963
(B) The appeal shall be accompanied by a filing fee of 964
seventy dollars, which the appeals board, in its discretion, may 965
reduce if by affidavit the appellant demonstrates that payment 966

H. B. No. 49 As Introduced

of the full amount of the fee would cause extreme hardship.

(C) Within three days days after an appeal is made, the 968
water improvement district board, or any other applicable 969
appellee, shall prepare and certify to the appeals board a 970
record of the proceedings out of which the appeal arises, 971
including all documents and correspondence, and a transcript of 972
all testimony. 973

(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

H. B. No. 49 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.