Legislation Creating State Bond Bank Clears Ohio House

State Representative Jeff McClain (R-Upper Sandusky) today announced the passage of House Bill 435, legislation he sponsored creating a state bond bank, which would be able to issue loans to local governments.

The state bond bank would be administered through the Treasurer of State’s office and all moneys received through the sale of bonds via the bank must be deposited, transferred, or credited to the State Bond Bank Trust Fund, also created under the bill. The trust fund is a separate entity from the state treasury.

“I am excited that House Bill 435 will allow many of our smaller entities to receive better terms and save taxpayer dollars through consolidation,” said Rep. McClain. “It is good cooperation between many levels of government.”

The bill would allow the state bond bank to issue bonds and use the proceeds to make loans to local governments throughout the state at their request. The local government that is borrowing the funds would be required to repay the state bond bank, which would then repay the holders of the bonds. Under the circumstance that a local government defaults on its repayments, it would still be held responsible, rather than the state.

After its passage, House Bill 435 now goes to the Ohio Senate for consideration.