Allow for creation of water improvement districts

Number H. B. No. 49
Type House Bill
General Assembly 136
Government Link
Legislative Analysis Report

Legislative Analysis

Ohio Citizen's Audit

Bill: H. B. No. 49
General Assembly: 136
Introduced: February 04, 2025

Allow for creation of water improvement districts

1. Primary Purpose of the Bill

This bill allows Ohio counties to create water improvement districts to plan, fund, build, and repair water and wastewater projects. These districts will be run by a board of trustees and can raise money by issuing bonds, charging fees, and placing special assessments (taxes) on properties that benefit from the water projects. The bill also sets up an appeals board in each participating county to handle public disagreements over district decisions.

Water ManagementLocal GovernmentTaxation

2. Changes to Existing Law

ORC Sec. 6120.01 to 6120.19

Enacts a new chapter of law to allow counties to establish water improvement districts, govern them via a board of trustees, levy special property assessments, issue tax-exempt bonds, and create an 11-member appeals board to resolve disputes.

3. Key Information for Citizens

🗳️ What You Need to Know

  • Counties can now create special districts to build and repair water and sewer systems.
  • These districts can charge property owners a special tax (assessment) of up to 10% of their property's value if they benefit from a water project.
  • Property owners must receive written notice and have a right to a public hearing before any new water project or property tax is approved.
  • A new 11-member appeals board will be created to hear complaints about district decisions, requiring a $70 fee to file an appeal.
  • The districts have the power to buy, lease, or take property (using eminent domain) to build water projects, though they cannot take active public utility property without replacing it.

4. Entities Affected

  • Property owners in areas designated for water improvements
  • County, township, and municipal governments
  • Water and wastewater utility companies and contractors
  • Financial institutions and bond investors

5. Regulatory Impact & Enforcement

Agency Authority:

Boards of County Commissioners are authorized to create these districts and appeals boards. The Water Improvement District Board of Trustees is given the power to levy taxes, charge fees, buy property, and issue bonds. The Water Improvement District Appeals Board is given exclusive authority to rule on disputes and make its own procedural rules.

Penalties & Mandates:
Property owners in designated benefit areas must pay special assessments of up to 10% of their property's assessable value. A $70 fee is mandated to file an appeal with the county's water improvement district appeals board, though it can be reduced for extreme hardship.
Implementation Timeline:
The county must set up the appeals board within 30 days of appointing the water improvement district board. Specific dates for when the entire law takes effect are not specified.

6. Estimated Fiscal Impact

State Revenue Impact
Not applicable
Local Government Impact
Local governments can choose to give money to these districts. Districts can raise local revenue by charging fees and levying special property assessments. District projects, property, and bonds are exempt from state and local taxes.
Implementation Costs
Not applicable
Net Annual Fiscal Effect
Not applicable
Prepared for the Citizen's of Ohio
www.ohiocitizensaudit.org
Legislative Analysis v1.0
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Sponsors

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Primary Sponsors

Thaddeus J. Claggett
District 68
Chamber House of Representatives
Party Republican

Co-Sponsors

Related Topics

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Education
Elections & Voting
Taxation & Finance
Criminal Justice
Environment
Business & Commerce
Labor & Employment
Agriculture
Local Government
Rent & Housing

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Natural Resources
  • Type: House
  • Bills: 27
  • Members: 13

Status Changes

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House Senate Governor
  1. Introduced
    Feb 04 2025
  2. Referred to committee
    Feb 05 2025

Documents

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