CHICAGO - A bill that would enable Ohio muncipalities to issue general obligation bonds to pay off in a lump sum about $400 million of accrued liability to a state pension fund has been introduced in the state legislature.

If the bill is passed and signed into law, the next step would be for a municipality to put together a transaction and seek a revenue ruling from the Internal Revenue Service on whether the deal would be considered an issue of arbitrage bonds and therefore taxable.

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