Allow for creation of water improvement districts

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 49

2025-2026

Representative Claggett

Cosponsors: Representatives Click,
Gross, Thomas, C.

A
BILL

To
enact sections 6120.01, 6120.02, 6120.03, 6120.031, 6120.032
,
6120.033
,
6120.04, 6120.05, 6120.06, 6120.07, 6120.08, 6120.09, 6120.10,
6120.11, 6120.12, 6120.13, 6120.14, 6120.15, 6120.16, 6120.17,
6120.18, and 6120.19 of the Revised Code
to
allow for the creation of water improvement districts.

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

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

Sec.
6120.01.
As
used in this chapter:

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

(B)
"Administrative agent," "agent," "commercial
paper," "floating rate interest structure," "indexing
agent," "interest rate hedge," "interest rate
period," "put arrangement," and "remarketing
agent" have the same meanings as in section 9.98 of the Revised
Code.

(C)
"Appellant" means a person or governmental agency who
opposes an action and files an appeal with the water district
improvement appeals board in accordance with this chapter.

(D)
"Appellee" means the person or governmental agency that
took the action that is the subject of an appeal.

(E)
"Bond proceedings" means the resolutions, trust agreements,
certifications, notices, sale proceedings, leases, lease-purchase
agreements, assignments, credit enhancement facility agreements, and
other agreements, instruments, and documents, as amended and
supplemented, or any one or more of combination thereof, authorizing,
or authorizing or providing for the terms and conditions applicable
to, or providing for the security or sale or award or liquidity of,
bonds, and includes the provisions set forth or incorporated in those
bonds and bond proceedings.

(F)
"Bond service charges" means principal, including any
mandatory sinking fund or mandatory redemption requirements for
retirement of bonds, and interest and any redemption premium payable
on bonds, as those payments come due and are payable to the
bondholder or to a person making payment under a credit enhancement
facility of those bond service charges to a bondholder.

(G)
"Bond service fund" means the applicable fund created by
the bond proceedings for and pledged to the payment of bond service
charges on bonds provided for by those proceedings, including all
money and investments, and earnings from investments, credited and to
be credited to that fund as provided in the bond proceedings.

(H)
"Bonds" means bonds, notes, including notes anticipating
bonds or other notes, commercial paper, certificates of
participation, or other evidences of obligation, including any
interest coupons pertaining thereto, issued pursuant to this chapter.

(I)
"Cost," as applied to a water project, means the cost of
acquisition and construction of a project, including all of the
following:

(1)
The cost of the acquisition of all land, rights-of-way, property
rights, easements, franchise rights, and interests required;

(2)
The cost of demolishing or removing any buildings or structures on
land so acquired, including the cost of acquiring any lands to which
such buildings or structures may be moved;

(3)
The cost of acquiring or constructing and equipping a principal
office and sub-offices of the district;

(4)
The cost of diverting highways, interchange of highways, and access
roads to private property, including the cost of land or easements
therefor;

(5)
The cost of all machinery, furnishings, and equipment, including any
financing charges or interest incurred prior to and during
construction and incurred not more than eighteen months after
completion of project acquisition or construction;

(6)
Costs of engineering, expenses of research and development with
respect to waste water or water management facilities, legal
expenses, plans, specifications, surveys, estimates of cost and
revenues, working capital, other expenses necessary or incident to
determining the feasibility or practicability of acquiring or
constructing a project, administrative expense, and such other
expenses as may be necessary or incident to the acquisition or
construction of a project;

(7)
The financing of the acquisition or construction of a project,
including the amount authorized in the resolution of the board of
trustees of the district providing for the issuance of water resource
revenue bonds to be paid into any special funds from the proceeds of
those bonds and the financing of the placing of any such project in
operation.

"Cost"
includes any obligation or expense incurred by any governmental
agency or person for surveys, borings, preparation of plans and
specifications, and other engineering services, or any other cost
described above, in connection with the construction or acquisition
of a project.

(J)
"Credit enhancement facilities" means letters of credit,
lines of credit, standby, contingent, or firm securities purchase
agreements, insurance, or surety arrangements, guarantees, and other
arrangements that provide for direct or contingent payment of bond
service charges, for security or additional security in the event of
nonpayment or default in respect of bonds, or for making payment of
bond service charges and at the option and on demand of bondholders
or at the option of the district or upon certain conditions occurring
under put or similar arrangements, or for otherwise supporting the
credit or liquidity of the bonds, and includes credit, reimbursement,
marketing, remarketing, indexing, carrying, interest rate hedge, and
subrogation agreements, and other agreements and arrangements for
payment and reimbursement of the person providing the credit
enhancement facility and the security for that payment and
reimbursement.

(K)
"Financing expenses" means all costs and expenses relating
to the authorization, issuance, sale, delivery, authentication,
deposit, custody, clearing, registration, transfer, exchange,
fractionalization, replacement, payment, and servicing of bonds,
including costs and expenses for or relating to publication and
printing, postage, delivery, preliminary and final official
statements, offering circulars, and informational statements, travel
and transportation, underwriters, placement agents, investment
bankers, paying agents, registrars, authenticating agents,
remarketing agents, custodians, clearing agencies or corporations,
securities depositories, financial advisory services, certifications,
audits, federal or state regulatory agencies, accounting and
computation services, legal services and obtaining approving legal
opinions and other legal opinions, credit ratings, redemption
premiums, and credit enhancement facilities.

(L)
"Governmental agency" means a department, division, or
other unit of state government; a county, township, or municipal
corporation; a watershed district, soil and water conservation
district, park district, special water district, including a county
and regional water and sewer district, conservancy district, sanitary
district, sewer district or any other public corporation or agency
having the authority to acquire, construct, or operate waste water or
water management facilities, or other political subdivision; a port
authority created pursuant to Chapter 4582. of the Revised Code; and
the United States or any agency thereof.

(M)
"Net revenues" means revenues lawfully available to pay
both current operating expenses of a district and bond service
charges in any fiscal year or other specified period, less current
operating expenses of the district and any amount necessary to
maintain a working capital reserve for that period.

(N)
"Outstanding" as applied to bonds means outstanding in
accordance with the terms of the bonds and the applicable bond
proceedings.

(O)
"Owner" includes any person having any title or interest in
any property authorized to be acquired by a district under this
chapter.

(P)
"Pledged revenues" means net revenues, money and
investments, and earnings on those investments, in the applicable
bond service fund and any other special funds, and the proceeds of
any bonds issued for the purpose of refunding prior bonds, all as
lawfully available and by resolution of the board of trustees of the
district committed for application as pledged revenues to the payment
of bond service charges on particular issues of bonds.

(Q)
"Project" or "water project" means any waste
water facility or water management facility constructed,
reconstructed, or repaired under this chapter, including all
buildings and facilities that the board of trustees of the district
considers necessary for the operation of the project, together with
all property and rights that must be acquired by the board to
construct, reconstruct, or repair the project.

(R)
"Property" includes interests in property.

(S)
"Refund" means to fund and retire outstanding bonds,
including advance refunding with or without payment or redemption
prior to stated maturity.

(T)
"Revenues" means all money received by a district for the
use or services of any project, all special assessments levied by the
board of trustees of the district pursuant to this chapter, any gift
or grant received with respect to a project, proceeds of bonds to the
extent the use thereof for payment of principal or of premium, if
any, or interest on the bonds is authorized by the board of trustees
of the district, proceeds from any insurance, condemnation, or
guaranty pertaining to a project or property mortgaged to secure
bonds or pertaining to the financing of a project, and income and
profit from the investment of the proceeds of bonds or of any
revenues.

(U)
"Special funds" means the applicable bond service fund and
any accounts and subaccounts in that fund, any other funds or
accounts permitted by and established under, and identified as a
special fund or special account in, the bond proceedings, including
any special fund or account established for purposes of rebate or
other requirements under federal income tax laws.

(V)
"Waste water facilities," "water management
facilities," "waters of the state," "sewage,"
"waste water," and "construction" have the same
meanings as in section 6119.011 of the Revised Code.

(W)
"Water improvement district" or "district" means
a water improvement district designated pursuant to section 6120.02
of the Revised Code.

Sec.
6120.02.
(A)
A water improvement district may be created by the board of county
commissioners of a county by resolution for the purpose of
facilitating, coordinating, funding, financing, constructing,
reconstructing, or repairing water projects or engaging in any
combination of those activities. In furtherance of such purposes, the
board of trustees of the district shall enter into an
intergovernmental agreement with one or more governmental agencies
that specifies that such governmental agency or agencies shall
operate and maintain the project under such terms as specified in the
agreement. All parties shall agree to such terms before the water
improvement district's board of trustees approve a project.

(B)
A water improvement district is a body both corporate and politic,
and the exercise by it of the powers conferred by this chapter in
facilitating, coordinating, funding, financing, constructing,
reconstructing, or repairing a water project are essential
governmental functions.

(C)(1)
Subject to division (C)(2) of this section, a water improvement
district shall be governed by a board of trustees consisting of five
voting members and one nonvoting member as follows:

(a)
The county sanitary engineer or the county sanitary engineer's
designee if a county sanitary engineer has been appointed for the
county or, if a county sanitary engineer has not been appointed for
the county, the county engineer or the county engineer's designee;

(b)
Four members, appointed by the board of county commissioners, who
have experience in waste water facilities, waste water, sewage, or
water management facilities;

(c)
One member appointed by the regional planning commission for the
county, who shall be a nonvoting member of the board.

(2)
The board of county commissioners may appoint not more than six
additional nonvoting members to the board of trustees. The additional
members shall be representative of the governmental entities that are
located within the territory of the water improvement district.

(3)
Each member of the board shall serve without compensation but shall
be reimbursed for all actual and necessary expenses incurred in the
performance of official duties.

(D)
Each appointed member of the board shall hold office for a term of
two years, subject to removal by the appointing authority only for
malfeasance. Members may be reappointed. Except as otherwise provided
in this division, any vacancy on the board shall be filled in the
same manner as the original appointment.

(E)
The voting members of the board shall elect from the entire board
membership a chairperson, vice-chairperson, and secretary-treasurer.
A majority of the voting members of the board constitutes a quorum,
the affirmative vote of which is necessary for any action of the
district. No vacancy in the membership of the board impairs the right
of a quorum to exercise all the rights and perform all duties of the
district.

(F)(1)
The board of county commissioners of any county, the legislative
authority of any municipal corporation, and the board of township
trustees of any township may make appropriations from money available
to them and not otherwise appropriated to pay costs incurred by the
district in the exercise of its functions under this chapter,
provided that money is available to use for that purpose.

(2)
The water improvement district board of trustees may establish fees
related to its services in order to pay costs incurred by the
district in the exercise of its functions under this chapter.

(G)
An organizational meeting of the board of trustees of a water
improvement district created under this section shall be held at the
time and place designated by the board member who was appointed by
the regional planning commission for the county.

Sec.
6120.03.
(A)
A water improvement district may do any of the following:

(1)
Adopt bylaws for the regulation of its affairs and the conduct of its
business;

(2)
Adopt an official seal;

(3)
Sue and be sued in its own name, plead and be impleaded, provided any
actions against the district shall be brought in the court of common
pleas of the county in which the principal office of the district is
located, or in the court of common pleas of the county in which the
cause of action arose, and all summonses, exceptions, and notices of
every kind shall be served on the district by leaving a copy thereof
at its principal office with the secretary-treasurer;

(4)
Facilitate, coordinate, fund, finance, construct, reconstruct, or
repair projects or engage in a combination of any of those
activities;

(5)
Issue either or both of the following for the purpose of providing
funds to pay the costs of any project or part thereof:

(a)
Water improvement district revenue bonds;

(b)
Bonds pursuant to Section 13 of Article VIII, Ohio Constitution.

(6)
Maintain such funds as it considers necessary;

(7)
Direct its agents or employees, when properly identified in writing
and after at least five days' written notice, to enter upon lands
within its jurisdiction to make surveys and examinations preliminary
to the construction, reconstruction, or repair of projects for the
district, without liability of the district or its agents or
employees except for actual damage done;

(8)
Make and enter into all contracts and agreements, including an
intergovernmental agreement as specified in division (A) of section
6120.02 of the Revised Code, necessary or incidental to the
performance of its functions and the execution of its powers under
this chapter;

(9)
Employ or retain or contract for the services of consulting
engineers, superintendents, managers, and such other engineers,
construction and accounting experts, auditors, financial advisers,
trustees, marketing, remarketing, and administrative agents,
attorneys, and other employees, independent contractors, or agents as
are necessary in its judgment and fix their compensation, provided
all such expenses shall be payable solely from the proceeds of bonds
or from revenues;

(10)
Receive and accept from any governmental agency, loans and grants for
or in aid of the construction, reconstruction, or repair of any
project, and receive and accept aid or contributions from any source
or person of money, property, labor, or other things of value, to be
held, used, and applied only for the purposes for which such loans,
grants, and contributions are made. Nothing in division (A)(10) of
this section shall be construed as imposing any liability on this
state for any loan received by a water improvement district from a
third party unless this state has entered into an agreement to accept
such liability.

(11)
Acquire, hold, and dispose of property in the exercise of its powers
and the performance of its duties under this chapter;

(12)
Subject to section 6120.15 of the Revised Code, enter into an
agreement with a contiguous board of county commissioners other than
the board of county commissioners that created the water improvement
district, for the district to exercise all or any portion of its
powers with respect to a project that is located wholly or partially
within the county that is party to the agreement;

(13)
Cooperate with any governmental agencies in the planning, design,
acquisition, construction, maintenance, funding, and financing of
projects;

(14)
Enter into an agreement with the board of county commissioners that
created the water improvement district and with the boards of county
commissioners of any contiguous group of counties to exercise all
powers of the district with respect to a project that is both of the
following:

(a)
Located partially or wholly within any county that is a party to the
agreement;

(b)
Partially funded with federal money.

(15)
Do all acts necessary and proper to carry out the powers expressly
granted in this chapter.

(B)
Chapters 123. and 124. of the Revised Code do not apply to contracts
or projects of a water improvement district.

Sec.
6120.031.
(A)
As used in this section, "public improvement" means the
construction, reconstruction, or repair of any waste water or water
management facility.

(B)
The board of trustees of a water improvement district may provide for
a public improvement and levy special assessments, if the board
determines that the public improvement will benefit the area where it
will be constructed, reconstructed, or repaired. However, if the
improvement is proposed for territory in a political subdivision
located outside the district's territory, the legislative authority
of that political subdivision shall approve the undertaking of the
improvement within the political subdivision.

(C)
If any improvements are made under this section, contracts for the
improvement may provide that the improvement may be owned by the
district or by the person or corporation supplying it to the district
under a lease.

(D)
If the board of trustees of a district proposes an improvement
described in division (B) of this section, the board shall conduct a
hearing on the proposed improvement. The board shall indicate by
metes and bounds the area in which the public improvement will be
made and the area that will benefit from the improvement.

(E)
The board of trustees shall fix a day for a hearing on the proposed
improvement. The secretary-treasurer of the board shall deliver, to
each owner of a parcel of land or a lot that the board identifies as
benefiting from the proposed improvement, a notice that sets forth
the substance of the proposed improvement and the time and place of
the hearing on it. At least fifteen days before the date set for the
hearing, a copy of the notice shall be served upon the owner or left
at the owner's usual place of residence, or, if the owner is a
corporation, upon an officer or agent of the corporation. On or
before the day of the hearing, the person serving notice of the
hearing shall make return thereon, under oath, of the time and manner
of service, and shall file the notice with the secretary-treasurer of
the board.

At
least fifteen days before the day set for the hearing on the proposed
improvement, the secretary-treasurer shall give notice to each
nonresident owner of a lot or parcel of land in the area to be
benefited by the improvement, by publication once in a newspaper of
general circulation in the one or more counties in which this area is
located. The publication of the notice shall be verified by affidavit
of the printer or other person having knowledge of the publication
and shall be filed with the secretary-treasurer of the district on or
before the date of the hearing.

(F)
At the time and place specified in the notice for a hearing on the
proposed improvement, the board of trustees of the district shall
meet and hear any and all testimony provided by any of the parties
affected by the proposed improvement and by any other persons
competent to testify. The board or its representatives shall inspect,
by an actual viewing, the area to be benefited by the proposed
improvement. The board shall determine the necessity of the proposed
improvement and may find that the proposed improvement will result in
general as well as special benefits. The board may adjourn from time
to time and to such places as it considers necessary.

(G)(1)
The board may award contracts or enter into a lease agreement for the
construction, reconstruction, or repair of any improvement described
in division (B) of this section and may issue notes, bonds, revenue
anticipatory instruments, or other obligations, as authorized by this
chapter, to finance the improvements.

(2)
All or a part of the costs and expenses of providing for the
construction, reconstruction, or repair of any improvement described
in division (G)(1) of this section may be paid from a fund into which
may be paid special assessments levied under this section against the
lots and parcels of land in the area to be benefited by the
improvement, if the board finds that the improvement will result in
general or special benefits to the benefited area. These special
assessments shall be levied not more than one time on the same lot or
parcel of land. Such costs and expenses may also be paid from the
treasury of the district or from other available sources in amounts
the board finds appropriate.

(3)
The board shall levy special assessments at an amount not to exceed
ten per cent of the assessable value of the lot or parcel of land
being assessed. The board shall determine the assessable value of a
lot or parcel of land in the following manner: the board shall first
determine the fair market value of the lot or parcel being assessed
in the calendar year in which the area to be benefited by the public
improvement is first designated and then multiply this amount by the
average rate of appreciation in value of the lot or parcel since that
calendar year. The assessable value of the lot or parcel is the
current fair market value of the lot or parcel minus the amount
calculated in the manner described in the immediately preceding
sentence. The board may adjust the assessable value of a lot or
parcel of land to reflect a sale of the lot or parcel that indicates
an appreciation in its value that exceeds its average rate of
appreciation in value.

(4)
Special assessments levied by the board may be paid in full in a lump
sum or may be paid and collected in equal semiannual installments,
equal in number to twice the number of years for which the lease of
the improvement is made or twice the number of years that the note,
bond, instrument, or obligation that the assessments are pledged to
pay requires. The assessments shall be paid and collected in the same
manner and at the same time as real property taxes are paid and
collected, and assessments in the amount of fifty dollars or less
shall be paid in full, and not in installments, at the time the first
or next installment would otherwise become due and payable.
Complaints regarding assessments may be made to the county board of
revision in the same manner as complaints relating to the valuation
and assessment of real property.

Credits
against assessments shall be granted equal to the value of any
construction, reconstruction, or repair that an owner of a parcel of
land or lot makes to an improvement pursuant to an agreement between
the owner and the district.

(5)
After the levy of a special assessment, the board, at any time during
any year in which an installment of the assessment becomes due, may
pay out of other available funds of the district, including any state
or federal funds available to the district, the full amount of the
price of the contract that the special assessments are pledged to pay
for that year or any other portion of the remaining obligation. The
board shall be the sole determiner of the definition, extent, and
allocation of the benefit resulting from an improvement that the
board authorizes under this section.

(H)(1)
The board shall certify to the appropriate county auditor the
boundaries of the area that is benefited by any public improvement
the board authorizes under this section and, when the board so
requests, the auditor shall apportion the valuation of any lot or
parcel of land lying partly within and partly outside the area so
benefited.

(2)
The board by resolution shall assess against the lots and parcels of
land located in the area that is benefited by a public improvement
such portion of the costs of completing the public improvement as the
board determines, for the period that may be necessary to pay the
note, bond, instrument, or obligation issued to pay for the
improvement and the proceedings in relation to it, and shall certify
these costs to the appropriate county auditor.

(3)
Except for assessments that have been paid in full in a lump sum, the
county auditor shall annually place upon the tax duplicate, for
collection in semiannual installments, the two installments of the
assessment for that year, which shall be paid and collected at the
same time and in the same manner as real property taxes. The
collected assessments shall be paid to the treasury of the district
and the board of the district shall use the assessments for any
purpose authorized by this chapter.

Sec.
6120.032.
Any
water project shall be determined by the board of trustees of the
water improvement district to be consistent with any applicable
comprehensive plan of water management approved by the director of
natural resources or in the process of preparation by the director
and to be not inconsistent with the standards set for the waters of
the state affected thereby by the environmental protection agency.
Any resolution of the board of trustees of the district providing for
constructing, reconstructing, or repairing such projects shall
include a finding by the board of trustees of the district that those
determinations have been made.

Sec.
6120.033.
(A)
Except as provided in division (B) of this section, notwithstanding
any contrary provision in sections 4115.03 to 4115.21 and 4115.99 of
the Revised Code, a water project undertaken by, or under contract
for, a water improvement district is not a public improvement for
purposes of section 4115.03 of the Revised Code.

(B)
A water improvement district may elect to apply sections 4115.03 to
4115.21 and 4115.99 of the Revised Code to a water project undertaken
by, or under contract for, the district. If a district makes an
election under this division, all contractors and subcontractors
working on the project shall comply with sections 4115.03 to 4115.21
of the Revised Code.

Sec.
6120.04.
(A)
A water improvement district may acquire by purchase, lease,
lease-purchase, lease with option to purchase, appropriation, or
otherwise and in such manner and for such consideration as it
considers proper, any public or private property necessary,
convenient, or proper for the construction, reconstruction, or repair
of a project. The district may pledge net revenues, to the extent
permitted by this chapter with respect to bonds, to secure payments
to be paid by the district under such a lease, lease-purchase
agreement, or lease with option to purchase. Title to real and
personal property shall be held in the name of the district. In any
proceedings for appropriation under this section, the procedure to be
followed shall be in accordance with that provided in sections 163.01
to 163.22 of the Revised Code. Except as otherwise agreed to by the
owner, full compensation shall be paid for public property so taken.

(B)
This section does not authorize a district to take or disturb
property or facilities belonging to any public utility or to a common
carrier engaged in interstate commerce, which property or facilities
are required for the proper and convenient operation of the public
utility or common carrier, unless provision is made for the
restoration, relocation, replication, or duplication of the property
or facilities elsewhere at the sole cost of the district.

(C)
Except as otherwise provided in this chapter, disposition of real
property shall be by sale, lease-purchase agreement, lease with
option to purchase, or otherwise in such manner and for such
consideration as determined by the district if to a governmental
agency. Disposition of personal property shall be in such manner and
for such consideration as determined by the district.

Sec.
6120.05.
The
board of trustees of a water improvement district may acquire real
property in fee simple in the name of the district in connection
with, but in excess of that needed for, a project by any method other
than appropriation and hold the property for such period of time
determined by the board. All right, title, and interest of the
district in the property may be sold at public auction or otherwise,
as the board considers in the best interests of the district; but in
no event shall the property be sold for less than two-thirds of its
appraised value. Sale at public auction shall be undertaken only
after the board advertises the sale in a newspaper of general
circulation in the district for two weeks or as provided in section
7.16 of the Revised Code, prior to the date set for the sale.

Sec.
6120.06.
(A)
The board of trustees of a water improvement district may provide by
resolution for the issuance, at one time or from time to time, of
bonds of the district for the purpose of paying all or any part of
the cost of any one or more projects. The bond service charges shall
be payable solely from pledged revenues pledged for such payment
pursuant to the applicable bond proceedings. The bonds of each issue
shall be dated, shall bear interest at a rate or rates or at variable
rates, and shall mature or be payable at such time or times, with a
final maturity not to exceed thirty years from their date or dates,
all as determined by the board in the bond proceedings. The board
shall determine the form of the bonds, including any interest coupons
to be attached thereto, and shall fix the denomination or
denominations of the bonds and the place or places of payment of bond
service charges.

(B)
The bonds shall be signed by the chairperson or vice-chairperson of
the board or by the facsimile signature of that officer, the official
seal of the district or a facsimile thereof may be affixed thereto or
printed thereon and attested by the secretary-treasurer of the
district, which may be by facsimile signature, and any coupons
attached thereto shall bear the facsimile signature of the
chairperson or vice-chairperson of the board. In case any officer
whose signature, or a facsimile of whose signature, appears on any
bonds or coupons ceases to be such officer before delivery of the
bonds, such signature or facsimile shall nevertheless be valid and
sufficient for all purposes the same as if the officer had remained
in office until such delivery.

(C)
Subject to the bond proceedings and provisions for registration, the
bonds shall have all the qualities and incidents of negotiable
instruments under Title XIII of the Revised Code. The bonds may be
issued in such form or forms as the board determines, including
without limitation coupon, book entry, and fully registered form, and
provision may be made for the registration of any coupon bonds as to
principal alone and also as to both principal and interest, and for
the exchange of bonds between forms. The board may sell such bonds by
competitive bid on the best bid after advertisement or request for
bids or by private sale in the manner, and for the price, it
determines to be for the best interest of the district.

(D)
The proceeds of the bonds of each issue shall be used solely for the
payment of the costs of the project or projects for which the bonds
were issued, and shall be disbursed in such manner and under such
restrictions as the board provides in the bond proceedings.

(E)
Prior to the preparation of definitive bonds, the board may, under
like restrictions, issue interim receipts or temporary bonds or bond
anticipation notes, with or without coupons, exchangeable for
definitive bonds when such bonds have been executed and are available
for delivery. The board may provide for the replacement of any
mutilated, stolen, destroyed, or lost bonds.

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

(G)
The bond proceedings shall provide, subject to the provisions of any
other applicable bond proceedings, for the pledge to the payment of
bond service charges and of any costs of or relating to credit
enhancement facilities of all, or such part as the board may
determine, of the pledged revenues and the applicable special fund or
funds, which pledges may be made to secure the bonds on a parity with
bonds theretofore or thereafter issued if and to the extent provided
in the bond proceedings. Every pledge, and every covenant and
agreement with respect thereto, made in the bond proceedings may in
the bond proceedings be extended to the benefit of the owners and
holders of bonds and to any trustee and any person providing a credit
enhancement facility for those bonds, for the further security for
the payment of the bond service charges and credit enhancement
facility costs.

(H)
The bond proceedings may contain additional provisions as to:

(1)
The redemption of bonds prior to maturity at the option of the board
or of the bondholders or upon the occurrence of certain stated
conditions, and at such price or prices and under such terms and
conditions as are provided in the bond proceedings;

(2)
Other terms of the bonds;

(3)
Limitations on the issuance of additional bonds;

(4)
The terms of any trust agreement securing the bonds or under which
the same may be issued;

(5)
Any or every provision of the bond proceedings being binding upon the
board and state agencies, or other person as may from time to time
have the authority under law to take such actions as may be necessary
to perform all or any part of the duty required by such provision;

(6)
Any provision that may be made in a trust agreement;

(7)
Any other or additional agreements with the holders of the bonds, or
the trustee therefor, relating to the bonds or the security for the
bonds, including agreements for credit enhancement facilities.

(I)
Any holder of bonds or a trustee under the bond proceedings, except
to the extent that the holder's or trustee's rights are restricted by
the bond proceedings, may by any suitable form of legal proceedings,
protect and enforce any rights under the laws of this state or
granted by the bond proceedings. Those rights include the right to
compel the performance of all duties of the board required by this
chapter or the bond proceedings; to enjoin unlawful activities; and
in the event of default with respect to the payment of any bond
service charges on any bonds or in the performance of any covenant or
agreement on the part of the board contained in the bond proceedings,
to apply to a court having jurisdiction of the cause to appoint a
receiver to receive and administer the revenues and the pledged
revenues which are pledged to the payment of the bond service charges
on such bonds or that are the subject of the covenant or agreement,
with full power to pay, and to provide for payment of, bond service
charges on such bonds, and with such powers, subject to the direction
of the court, as are accorded receivers in general equity cases,
excluding any power to pledge additional revenue or receipts or other
income, funds, or money of the board to the payment of such bond
service charges and excluding the power to take possession of,
mortgage, or cause the sale or otherwise dispose of any project or
other property of the board.

(J)
Each duty of the board and the board's officers and employees,
undertaken pursuant to the bond proceedings, is hereby established as
a duty of the board, and of each such 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 service charges, and for the
establishment and maintenance of any reserves and special funds, as
provided in the bond proceedings, and make other provisions therein
with respect to pledged revenues, revenues, and net revenues as
authorized by this chapter, which provisions shall be controlling
notwithstanding any other provisions of law pertaining thereto.

Sec.
6120.07.
The
board of trustees of a water improvement district may provide by
resolution for the issuance of bonds of the district, payable solely
from pledged revenues, for the purpose of refunding any bonds then
outstanding, including the payment of related financing expenses and,
if considered advisable by the board, for the additional purpose of
paying costs of improvements, extensions, renovations, or
enlargements of any project. The issuance of refunding bonds, the
maturities and other details thereof, the rights of the holders
thereof, and the rights, duties, and obligations of the board in
respect to such bonds shall be governed by the provisions of this
chapter insofar as they are applicable and by the applicable bond
proceedings.

Sec.
6120.08.
This
chapter provides an additional and alternative method for financing,
constructing, reconstructing, or repairing projects and taking the
actions authorized by this chapter. This chapter shall be regarded as
supplemental and additional to powers conferred by other laws. The
issuance of bonds under this chapter need not comply with any other
law applicable to the issuance of bonds.

Sec.
6120.09.
(A)
The bonds do not constitute a debt, or a pledge of the faith and
credit, of the state or of any political subdivision of the state.
Bond service charges on outstanding bonds are payable solely from the
pledged revenues pledged for their payment as authorized by this
chapter and as provided in the bond proceedings. All bonds shall
contain on their face a statement to that effect.

(B)
All expenses incurred in carrying out this chapter shall be payable
solely from revenues provided under this chapter. This chapter does
not authorize the board of trustees of a district to incur
indebtedness or liability on behalf of or payable by the state or any
political subdivision of the state.

Sec.
6120.10.
(A)
In the discretion of the board of trustees of a water improvement
district any bonds may be secured by a trust agreement between the
board and a corporate trustee, which may be any trust company or bank
having the powers of a trust company within or without the state but
authorized to exercise trust powers within this state.

(B)
Any trust agreement may pledge or assign the revenues to be received,
but shall not convey or mortgage any project or any part thereof. Any
such trust agreement or other bond proceedings may contain such
provisions for protecting and enforcing the rights and remedies of
the bondholders as are reasonable and proper and not in violation of
law, including covenants setting forth the duties of the board in
relation to the acquisition of property, and the construction,
reconstruction, and repair of the project or projects in connection
with which such bonds are authorized and the custody, safeguarding,
and application of all money, and provisions for the employment or
retention of the services of consulting engineers in connection with
the construction, reconstruction, or repair of the project or
projects. Any bank or trust company incorporated under the laws of
this state which may act as depository of the proceeds of bonds or of
revenues may furnish 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 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 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 appeals board shall be created by the
board of county commissioners. The appeals board has exclusive
original jurisdiction over any action regarding a waste water
facility or water management facility located in the county in which
the appeals board is located, including an action regarding any water
project facilitated, coordinated, funded, financed, constructed,
reconstructed, or repaired under this chapter in that county.

(B)
A water improvement district appeals board shall consist of eleven
voting members and one nonvoting member as follows:

(1)
The five members of the board of trustees of the water improvement
district;

(2)
Two members appointed by the legislative authority of the most
populous municipal corporation in the district;

(3)
One member appointed by the legislative authority of the second most
populous municipal corporation in the district;

(4)
One member appointed by the township trustee association within the
district. Absent such an association, one member shall be appointed
by the board of township trustees of the most populous township in
the county's unincorporated area.

(5)
One member appointed by the county engineer who represents regional
water and sewer districts. If there is no regional water and sewer
district in the county, one member shall be appointed by the county
engineer who has expertise on matters related to water and wastewater
management.

(6)
One member appointed by the board of county commissioners who is an
expert on matters related to water and wastewater management;

(7)
One member appointed by the regional planning commission for the
county, who shall be a nonvoting member of the board.

(C)
Each appointed member of the appeals board shall hold office for a
term of two years, subject to removal by the appointing authority
only for malfeasance. Members may be reappointed. Except as otherwise
provided in this division, any vacancy on the appeals board shall be
filled in the same manner as the original appointment.

(D)
The voting members of the appeals board shall elect from the entire
board membership a chairperson, vice-chairperson, and
secretary-treasurer. A majority of the voting members of the appeals
board constitutes a quorum, the affirmative vote of which is
necessary for any decision. No vacancy in the membership of the
appeals board impairs the right of a quorum to exercise all the
rights and perform all its duties.

(E)
Each member of the board shall serve without compensation but shall
be reimbursed for all actual and necessary expenses incurred in the
performance of official duties.

Sec.
6120.17.
(A)
The water improvement district appeals board shall adopt or amend, as
appropriate, regulations governing procedure to be followed for
hearings before it, including regulations governing all of the
following:

(1)
Procedures for conducting hearings on appeals that are not in
conflict with section 6120.18 of the Revised Code;

(2)
Procedures for issuing final decisions that are not in conflict with
section 6120.18 of the Revised Code;

(3)
Stays. The regulations shall specify that if an appeal of an action
made by a water improvement district board is filed, such action
shall not go into effect until the water improvement district appeals
board issues its final decision on the matter.

(B)
No regulation adopted by the appeals board shall be effective until
the tenth day after it has been adopted by the filing of a certified
copy thereof with the secretary of state who shall record it under
the heading "regulations of the [insert name of county] water
improvement district appeals board." The regulations shall be
numbered consecutively under the heading and shall bear the date of
filing. The regulations shall be public records open to public
inspection.

(C)
No regulation filed in the office of the secretary of state pursuant
to this section shall be amended except by a regulation which
contains the entire regulation as amended and which repeals the
regulation amended. Each regulation which amends a regulation shall
bear the same consecutive regulation number as the number of the
regulation which it amends, and it shall bear the date of filing.

(D)
No regulation filed in the office of the secretary of state pursuant
to this section shall be repealed except by a regulation. Each
regulation which repeals a regulation shall bear the same consecutive
regulation number as the number of the regulation which it repeals,
and it shall bear the date of filing.

(E)
The authority and the duty of the appeals board to adopt regulations
under this section is not governed by or subject to Chapter 119. of
the Revised Code.

(F)
The appeals board shall have available at all times copies of all
regulations of the appeals board that it has filed in the office of
the secretary of state pursuant to this section and shall furnish
them free of charge to any person requesting them.

(G)
The appeals board shall maintain and keep available for public
inspection, at its principal office, a current register of all
appeals filed, hearings pending, its final decision thereon, and the
dates on which such filings, hearings, and final decision occur.

Sec.
6120.18.
(A)(1)
Any person who has an interest in an action may file an appeal with
the applicable water improvement district appeals board for a
decision that modifies or revokes the action. Such appeal shall be
filed not later than fifteen days after the action or after the
appeals board is created, whichever event occurs later.

(2)
An appeal shall be in writing and shall set forth the action
complained of and the grounds upon which the appeal is based. The
chairperson of the appeals board shall notify all members of the
appeals board of the filing of an appeal and any other person that is
a party to the proceeding not later than twenty-four hours after such
filing.

(3)
A hearing concerning an appeal shall be conducted not later than
fifteen days after the filing of the appeal.

(4)
A hearing concerning an appeal brought under this section is subject
to section 121.22 of the Revised Code.

(B)
The appeal shall be accompanied by a filing fee of seventy dollars,
which the appeals board, in its discretion, may reduce if by
affidavit the appellant demonstrates that payment of the full amount
of the fee would cause extreme hardship.

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

(D)
Upon the filing of an appeal, the appeals board shall fix the time
and place at which the hearing on the appeal will be held. The
appeals board shall give the appellant and appellee at least three
days' notice of the hearing. The appeals board may postpone or
continue any hearing upon its own motion or upon application of the
appellant or of the appellee, but any postponement or continuance
shall be reasonable and the appeals board shall take into account the
interest of expediency.

(E)
The appeals board shall issue a final decision at the hearing. Not
later than three days after a final decision of the appeals board,
the chairperson of the appeals board shall serve on each party to the
appeal a written statement that the appealed action was either
affirmed, revoked, or modified along with the reasons for the final
decision. If modified, the statement shall describe how the appealed
action was modified.

Sec.
6120.19.
(A)
Any party adversely affected by a final decision of the water
improvement district appeals board may appeal the decision to the
court of appeals in the county that the applicable water improvement
district is located.

(B)
An original written notice of appeal or a copy of the notice of
appeal shall be filed with the appeals board and an original notice
of appeal or a copy of the notice of appeal 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.