(A) The General Assembly may provide by law, subject to the limitations of and in accordance with this section, for the issuance of bonds and other obligations of the state for the purpose of paying costs of facilities for a system of common schools throughout the state and facilities for state-supported and state-assisted institutions of higher education. As used in this section, "costs" includes, without limitation, the costs of acquisition, construction, improvement, expansion, planning, and equipping.
(B) Each obligation issued under this section shall mature no later than the thirty-first day of December of the twenty-fifth calendar year after its issuance except that obligations issued to refund other obligations shall mature not later than the thirty-first day of December of the twenty-fifth calendar year after the year in which the original obligation to pay was issued or entered into.
(C) Obligations issued under this section are general obligations of the state. The full faith and credit, revenue, and taxing power of the state shall be pledged to the payment of debt service on those outstanding obligations as it becomes due. For purposes of the full and timely payment of that debt service, appropriate provisions shall be made or authorized by law for bond retirement funds, for the sufficiency and appropriation of excises, taxes, and revenues so pledged to that debt service. For which purpose, notwithstanding Section 22 of Article II of the Ohio Constitution, no further act of appropriation shall be necessary, and for covenants to continue the levy, collection, and application of sufficient excises, taxes, and revenues to the extent needed for that purpose. Those obligations and the provisions for the payment of debt service on them are not subject to Sections 5, 6, and 11 of Article XII of the Ohio Constitution. Moneys referred to in Section 5a of Article XII of the Ohio Constitution may not be pledged or used for the payment of the debt service on those obligations. Moneys consisting of net state lottery proceeds may be pledged or used for payment of debt service on obligations issued under this section to pay costs offacilities for a system of common schools, but not on obligations issued under this section to pay costs of facilities for state-supported and state-assisted institutions of higher education.
In the case of the issuance of any of those obligations as bond anticipation notes, provision shall be made by law or in the bond or note proceedings for the establishment and the maintenance, during the period the notes are outstanding, of special funds into which there shall be paid, from the sources authorized for payment of the bonds anticipated, the amount that would have been sufficient to pay the principal that would have been payable on those bonds during that period if bonds maturing serially in each year over the maximum period of maturity referred to in division (B) of this section had been issued without the prior issuance of the notes. Those special funds and investment income on them shall be used solely for the payment of principal of those notes or of the bonds anticipated.
(D) As used in this section, "debt service" means principal and interest and other accreted amounts payable on the obligations referred to.
(E) Obligations issued under this section, their transfer, and the interest, interest equivalent, and other income or accreted amounts on them, including any profit made on their sale, exchange, or other disposition, shall at all times be free from taxation within the state.
(F) This section shall be implemented in the manner and to the extent provided by the General Assembly by law, including provision for the procedure for incurring, rffunding. Retiring, and evidencing obligations issued as referred to in this section. The total principal amount of obligations issued under this section shall be as determined by the General Assembly, subject to the limitation provided for in Section 17 of this article.
(G) The authorizations in this section are in addition to authorizations contained in other sections of this article, are in addition to and not a limitation upon the authority of the General Assembly under other provisions of this Constitution, and do not impair any law previously enacted by the General Assembly.
(Adopted Nov. 2, 1999; SJR No. 1)