In addition to the authorization otherwise contained
in Article VIII of the Ohio Constitution, the
General Assembly, in accordance with but subject to
the limitations of this section, may authorize the issuance
of obligations, including bonds and notes, of
the state or of state institutions, boards, commissions,
authorities, or other state agencies or instrumentalities
for any one or more of the following public capital improvements:
the construction, reconstruction, or other
improvement of highways, including those on the state
highway system and urban extensions thereof, those
within or leading to public parks or recreational areas,
and those within or leading to municipal corporations,
the acquisition, construction, reconstruction, or
other improvement of, and provision of equipment for,
buildings, structures, or other improvements, and necessary
planning and engineering, for water pollution
control and abatement, including those for sewage collection,
treatment, or disposal, water management, including
those for water distribution, collection, supply,
storage, or impoundment, and stream flow control, and
flood control, state supported or assisted institutions
of higher education, technical education, vocational
education, juvenile correction, training and rehabilitation,
parks and recreation, research and development
with respect to transportation, highways, and highway
transportation, mental hygiene and retardation, police
and fire training, airports, and other state buildings and
structures, and the acquisition and improvement of real
estate and interests therein required with respect to the
foregoing, including participation in any such capital
improvements with the federal government, municipal
corporations, counties, or other governmental entities
or any one or more of them which participation may
be by grants, loans or contributions to them for any
of such capital improvements. It is hereby determined
that such capital improvements will directly or indirectly
create jobs, enhance employment opportunities,
and improve the economic welfare of the people of
the state.
The issuance under authority of this section of obligations
the holders or owners of which are given the
right to have excises and taxes levied by the General
Assembly for the payment of the principal thereof
or interest thereon, herein called tax supported obligations,
shall be subject to the following limitations.
Not more than one hundred million dollars principal
amount may be issued in any calendar year and
not more than five hundred million dollars principal
amount may be outstanding any one time for such
capital improvements for highways and research and
development with respect to highways and highway
transportation, herein called highway obligations, provided
that fifty per cent of the proceeds of the first five
hundred million dollars of such tax supported highway
obligations shall be used for urban extensions of
state highways and highways within or leading to municipal
corporations. Not more than two hundred fifty
nine million dollars aggregate principal amount of
such tax supported obligations may be issued for the
other capital improvements aforesaid, provided that
from the proceeds thereof one hundred twenty million
dollars shall be used for water pollution control and
abatement and water management, one hundred million
dollars shall be used for higher education, technical
and vocational education, and juvenile correction,
training and rehabilitation, twenty million dollars shall
be used for parks and recreation, and nineteen million
dollars for airports, and for construction, rehabilitation
and equipping of other state buildings and structures,
including those for police and fire training. If tax supported
obligations are issued under authority of this
section to retire tax supposed obligations previously
issued under authority of this section, such new obligations
shall not be counted against such limits to
the extent that the principal amount thereof does not
exceed the principal amount of the obligations to be
retired thereby.
Each issue of tax supported obligations issued pursuant
to this section shall mature in not more than thirty
years from the date of issuance thereof, or, if issued to
retire obligations issued hereunder, within thirty years
from the date such debt was originally contracted. If
such tax supposed obligations are issued as notes in
anticipation of the issuance of bonds, provision shall
be made by law for setting aside, so long as such notes
are outstanding, into a special fund or funds such
amounts from the sources authorized for payment of
such bonds under this section as would be sufficient
for payment of that amount of principal on such bonds
that would have been payable during such period if
such bonds, maturing during a period of thirty years,
had been issued without prior issuance of such notes.
Such fund or funds may be used solely for the payment
of principal of such notes or of bonds in anticipation of
which such notes have been issued.
The faith and credit and excises of taxes of the state,
excluding ad valorem taxes on real or personal property
and income taxes, shall be pledged to the payment
of the principal of and the interest on such tax supported
obligations, sinking or bond retirement fund provisions
shall be made therefore, and this section shall
otherwise be implemented, all in the manner and to
the extent provided by law by the General Assembly,
including provisions for appropriation of pledged excises
and taxes, and covenants to continue their levy,
collection and application, to continue so long as such
tax supported obligations are outstanding, without necessity
for further appropriation notwithstanding Section
22 of Article II, Ohio Constitution; provided that
the moneys referred to in Section 5a of Article XII,
Ohio Constitution herein called highway user receipts,
shall, after provision for payment of amounts pledged
to obligations heretofore or hereafter issued under
Sections 2c and 2g of this Article, be pledged to the
payment of the principal of and interest on highway
obligations authorized by this section but not to other
obligations authorized hereby. If excises and taxes
other than highway user receipts are pledged to the
payment of the principal of or interest on highway obligations
authorized by this section, in each year that
such highway user receipts are available for such purpose,
the same shall be appropriated thereto and the
required application of such other excises and taxes
shall be reduced in corresponding amount.
The General Assembly also may authorize the issuance
of revenue obligations and other obligations, the
owners or holders of which are not given the right to
have excises or taxes levied by the General Assembly
for the payment of principal thereof or interest thereon,
for such capital improvements for mental hygiene and
retardation, parks and recreation, state supported and
state assisted institutions of higher education, including
those for technical education, water pollution control
and abatement, water management, and housing
of branches and agencies of state government, which
obligations shall not be subject to other provisions of
this section and shall not be deemed to be debts or
bonded indebtedness of the state under other provisions
of this constitution. Such obligations may be
secured by a pledge under law, without necessity for
further appropriation, of all or such portion as the General
Assembly authorizes of charges for the treatment
or care of mental hygiene and retardation patients, receipts
with respect to parks and recreational facilities,
receipts of or on behalf of state supported and state
assisted institutions of higher education, or other revenues
or receipts, specified by law for such purpose, of
the state or its officers, departments, divisions, institutions,
boards, commissions, authorities, or other state
agencies instrumentalities, and this provision may be
implemented by law to better provide therefore; provided,
however, that any charges for the treatment or care
of mental hygiene or retardation patients may be so
pledged only to obligations issued for capital improvements
for mental hygiene and retardation, any receipts
with respect to parks and recreation may be so pledged
only to obligations issued for capital improvements
for parks and recreation, any receipts of or on behalf of
state supported or state assisted institutions of higher
education may be pledged only to obligations issued
for capital improvements for state supported or state
assisted institutions of higher education, and any other
revenues or receipts may be so pledged only to obliThe
gations issued for capital improvements which are in
whole or in part useful to, constructed by, or financed
by the department, board, commission, authority, or
other agency or instrumentality that receives the revenues
or receipts so pledged. The authority provided
by this paragraph is in addition to, cumulative with,
and not a limitation upon, the authority of the General
Assembly under other provisions of this constitution;
such paragraph does not impair any law heretofore enacted
by the General Assembly, and any obligations issued
under any such law consistent with the provisions
of this paragraph shall be deemed to be issued under
authority of this paragraph.
Both the principal of all obligations authorized under
authority of this section and the interest thereon shall
be exempt from taxation within this state.
Structure Ohio constitution