REPRESENTATIVES Olman, Widowfield, Niehaus, Carano, Brown, Latta, Gilb, DeBose, Kilbane, Roman, Flowers, Schmidt, Wilson, Hoops, Wolpert, Raga, Aslanides, Husted, DeWine, Faber, Cates, Coates, Patton, Womer Benjamin, Metzger, Buehrer, Distel, G. Smith, D. Miller, Otterman, Clancy, Schneider, Barrett, Seitz, Koziura, Hughes, S. Smith, Krupinski, Rhine, Flannery, R. Miller, Trakas, Setzer, Allen, Boccieri, Redfern, Perry, Hartnett, Cirelli, Salerno, Strahorn, Britton, Core, Driehaus, Key, Woodard, Sykes

To amend sections 122.171, 149.43, 718.01, 718.14,

1

5703.21, 5733.98, 5747.98, and 6111.31 and to enact

2

sections 150.01, 150.02, 150.03, 150.04, 150.05,

3

150.06, 150.07, 150.08, 150.09, 150.10, 5709.211,

4

5725.19, 5729.08, 5733.49, 5747.80, and 6111.311 of

5

the Revised Code to create the Ohio Venture Capital

6

Program to provide for the direction of moneys of a

7

private investment fund into venture capital

8

investments that are secured by program revenues or

9

tax credits; to modify eligibility for and other

10

terms of the job retention tax credit; to prohibit

11

municipal corporations from taxing S corporation

12

shareholders' distributive shares of net profits;

13

to require state and county tax officials to notify

14

local taxing authorities of pending pollution

15

control tax exemption applications; to adjust the

16

debt service formula allocation of Youngstown State

17

University; and to repeal Section 4 of this act six

18

months after its effective date.

19

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 122.171, 149.43, 718.01, 718.14,	20
5703.21, 5733.98, 5747.98, and 6111.31 be amended and sections	21
150.01, 150.02, 150.03, 150.04, 150.05, 150.06, 150.07, 150.08,	22
150.09, 150.10, 5709.211, 5725.19, 5729.08, 5733.49, 5747.80, and	23
6111.311 of the Revised Code be enacted to read as follows:	24

Sec. 122.171. (A) As used in this section:

25

(1) "Capital investment project" means a plan of investment	26
at a project site for the acquisition, construction, renovation,	27
or repair of buildings, machinery, or equipment, or for	28
capitalized costs of basic research and new product development	29
determined in accordance with generally accepted accounting	30
principles, but does not include any of the following:	31

(a) Payments made for the acquisition of personal property	32
through operating leases;	33

(b) Project costs paid before January 1, 2002, or after	34
December 31, 2006;	35

(c) Payments made to a related member as defined in section	36
5733.042 of the Revised Code.	37

(2) "Eligible business" means a business with Ohio	38
operations thatsatisfying all of the following:	39

(a) Employed an average of at least one thousand employees	40
in full-time employment positions at a project site during each of	41
the twelve months preceding the application for a tax credit under	42
this section; and	43

(b) On or after January 1, 2002, has made payments for the	44
capital investment project of ateither of the following:	45

(i) At least two hundred million dollars in the aggregate	46
at the project site during a period of three consecutive calendar	47
years that includesincluding the calendar year that includes a	48
day of the taxpayer's taxable year with respect to which the	49
credit is granted;	50

(ii) If the average wage of all full-time employment	51
positions at the project site is greater than four hundred per	52
cent of the federal minimum wage, at least one hundred million	53
dollars in the aggregate at the project site during a period of	54
three consecutive calendar years including the calendar year that	55
includes a day of the taxpayer's taxable year with respect to	56
which the credit is granted.	57

(c) Is engaged at the project site primarily as a	58
manufacturer or is providing significant corporate administrative	59
functions;	60

(d) Has had a capital investment project reviewed and	61
approved by the tax credit authority as provided in divisions (C),	62
(D), and (E) of this section.	63

(3) "Full-time employment position" means a position of	64
employment for consideration for at least thirty-five hours a	65
week, or any other standard of service generally accepted by	66
custom as full-time employment within the industry, that has been	67
filled for at least one hundred eighty days immediately preceding	68
the filing of an application under this section, and for at least	69
one hundred eighty days during each taxable year with respect to	70
which the credit is granted.	71

(4) "Manufacturer" has the same meaning as in section	72
5739.011 of the Revised Code.	73

(5) "Project site" means an integrated complex of facilities	74
in this state, as specified by the tax credit authority under this	75
section, within a five-milefifteen-mile radius where a taxpayer	76
in this state is primarily operating as a manufacturer as defined	77
in section 5739.011 of the Revised Codean eligible business.	78

(B) The tax credit authority created under section 122.17 of	79
the Revised Code may grant tax credits under this section for the	80
purpose of fostering job retention in this state. Upon	81
application by an eligible business and upon consideration of the	82
recommendation of the director of budget and management, tax	83
commissioner, and director of development under division (C) of	84
this section, the tax credit authority may grant to an eligible	85
business a nonrefundable credit against the tax imposed by section	86
5733.06 or 5747.02 of the Revised Code for a period up to ten	87
taxable years. The credit shall be in an amount not exceeding	88
seventy-five per cent of the Ohio income tax withheld from the	89
employees of the eligible business occupying full-time employment	90
positions at the project site during the calendar year that	91
includes the last day of such business' taxable year with respect	92
to which the credit is granted. The amount of the credit shall	93
not be based on the Ohio income tax withheld from full-time	94
employees for a calendar year prior to the calendar year in which	95
the two hundred million dollar minimum investment requirement	96
referred to in division (A)(2)(b) of this section is completed.	97
The credit shall be claimed only for the taxable years specified	98
in the eligible business' agreement with the tax credit authority	99
under division (E) of this section, but in no event shall the	100
credit be claimed for a taxable year terminating before the date	101
specified in the agreement.	102

Any unused portion of a tax credit may be carried forward for	103
not more than three additional years after the year for which the	104
credit is granted.	105

(C) A taxpayer whothat proposes a capital investment	106
project to retain jobs in this state may apply to the tax credit	107
authority to enter into an agreement for a tax credit under this	108
section. The director of development shall prescribe the form of	109
the application. After receipt of an application, the authority	110
shall forward copies of the application to the director of budget	111
and management, the tax commissioner, and the director of	112
development, each of whom shall review the application to	113
determine the economic impact the proposed project would have on	114
the state and the affected political subdivisions and shall submit	115
a summary of their determinations and recommendations to the	116
authority. The authority shall make no agreements under this	117
section after June 30, 2007.	118

(D) Upon review of the determinations and recommendations	119
described in division (C) of this section, the tax credit	120
authority may enter into an agreement with the taxpayer for a	121
credit under this section if itthe authority determines all of	122
the following:	123

(1) The taxpayer's capital investment project will result in	124
the retention of full-time employment positions in this state.	125

(2) The taxpayer is economically sound and has the ability	126
to complete the proposed capital investment project.	127

(3) The taxpayer intends to and has the ability to maintain	128
operations at the project site for at least twice the term of the	129
credit.	130

(4) Receiving the credit is a major factor in the taxpayer's	131
decision to begin, continue with, or complete the project.	132

(5) The political subdivisions in which the project is	133
located have agreed to provide substantial financial support to	134
the project.	135

(E) An agreement under this section shall include all of the	136
following:	137

(1) A detailed description of the project that is the	138
subject of the agreement, including the amount of the investment,	139
the period over which the investment has been or is being made,	140
and the number of full-time employment positions at the project	141
site;.	142

(2) The method of calculating the number of full-time	143
employment positions as specified in division (A)(3) of this	144
section;.	145

(3) The term and percentage of the tax credit, and the	146
first year for which the credit may be claimed;.	147

(4) A requirement that the taxpayer maintain operations at	148
the project site for at least twice the number of years as the	149
term of the credit;.	150

(5) A requirement that the taxpayer retain a specified	151
number of full-time employment positions at the project site and	152
within this state for the term of the credit, including a	153
requirement that the taxpayer continue to employ at least one	154
thousand employees in full-time employment positions at the	155
project site during the entire term of any agreement, subject to	156
division (E)(7) of this section;.	157

(6) A requirement that the taxpayer annually report to the	158
director of development the number of full-time employment	159
positions subject to the credit, the amount of tax withheld from	160
employees in those positions, the amount of the payments made for	161
the capital investment project, and any other information the	162
director needs to perform the director's duties under this	163
section;.	164

(7) A requirement that the director of development annually	165
review the annual reports of the taxpayer to verify the	166
information reported under division (E)(6) of this section and	167
compliance with the agreement. Upon verification, the director	168
shall issue a certificate to the taxpayer stating that the	169
information has been verified and identifying the amount of the	170
credit for the taxable year. The director shall not issue a	171
certificate for any year in which the total number of filled	172
full-time employment positions for each day of the calendar year	173
divided by three hundred sixty-five is less than ninety per cent	174
of the full-time employment positions specified in division (E)(5)	175
of this section. In determining the number of full-time	176
employment positions, no position shall be counted that is filled	177
by an employee who is included in the calculation of a tax credit	178
under section 122.17 of the Revised Code.	179

(8)(a) A provision requiring that the taxpayer, except as	180
otherwise provided in division (E)(8)(b) of this section, shall	181
not relocate employment positions from elsewhere in this state to	182
the project site that is the subject of the agreement for the	183
lesser of five years from the date the agreement is entered into	184
or the number of years the taxpayer is entitled to claim the	185
credit.	186

(b) The taxpayer may relocate employment positions from	187
elsewhere in this state to the project site that is the subject of	188
the agreement if the director of development determines both of	189
the following:	190

(i) That the site from which the employment positions would	191
be relocated is inadequate to meet market and industry conditions,	192
expansion plans, consolidation plans, or other business	193
considerations affecting the taxpayer;	194

(ii) That the legislative authority of the county, township,	195
or municipal corporation from which the employment positions would	196
be relocated has been notified of the relocation.	197

For purposes of this section, the movement of an employment	198
position from one political subdivision to another political	199
subdivision shall be considered a relocation of an employment	200
position unless the movement is confined to the project site. The	201
transfer of an individual employee from one political subdivision	202
to another political subdivision shall not be considered a	203
relocation of an employment position as long as the individual's	204
employment position in the first political subdivision is	205
refilled.	206

(9) A waiver by the taxpayer of any limitations periods	207
relating to assessments or adjustments resulting from the	208
taxpayer's failure to comply with the agreement.	209

(F) If a taxpayer fails to meet or comply with any condition	210
or requirement set forth in a tax credit agreement, the tax credit	211
authority may amend the agreement to reduce the percentage or term	212
of the credit. The reduction of the percentage or term shall take	213
effect in the taxable year immediately following the taxable year	214
in which the authority amends the agreement. If the taxpayer	215
relocates employment positions in violation of the provision	216
required under division (D)(8)(a) of this section, the taxpayer	217
shall not claim the tax credit under section 5733.0610 of the	218
Revised Code for any tax years following the calendar year in	219
which the relocation occurs, or shall not claim the tax credit	220
under section 5747.058 of the Revised Code for the taxable year in	221
which the relocation occurs and any subsequent taxable years.	222

(G) Financial statements and other information submitted to	223
the department of development or the tax credit authority by an	224
applicant for or recipient of a tax credit under this section, and	225
any information taken for any purpose from such statements or	226
information, are not public records subject to section 149.43 of	227
the Revised Code. However, the chairperson of the authority may	228
make use of the statements and other information for purposes of	229
issuing public reports or in connection with court proceedings	230
concerning tax credit agreements under this section. Upon the	231
request of the tax commissioner, the chairperson of the authority	232
shall provide to the commissioner any statement or other	233
information submitted by an applicant for or recipient of a tax	234
credit in connection with the credit. The commissioner shall	235
preserve the confidentiality of the statement or other	236
information.	237

(H) A taxpayer claiming a tax credit under this section	238
shall submit to the tax commissioner a copy of the director of	239
development's certificate of verification under division (E)(7) of	240
this section for the taxable year. However, failure to submit a	241
copy of the certificate does not invalidate a claim for a credit.	242

(I) For the purposes of this section, a taxpayer may include	243
a partnership, a corporation that has made an election under	244
subchapter S of chapter one of subtitle A of the Internal Revenue	245
Code, or any other business entity through which income flows as a	246
distributive share to its owners. A tax credit received under	247
this section by a partnership, S-corporation, or other such	248
business entity shall be apportioned among the persons to whom the	249
income or profit of the partnership, S-corporation, or other	250
entity is distributed, in the same proportions as those in which	251
the income or profit is distributed.	252

(J) If the director of development determines that a	253
taxpayer who hasthat received a tax credit under this section is	254
not complying with the requirement under division (E)(4) of this	255
section or reduces the number of employees agreed to under	256
division (E)(5) of this section by more than ten per cent, the	257
director shall notify the tax credit authority of the	258
noncompliance. After receiving such a notice, and after giving	259
the taxpayer an opportunity to explain the noncompliance, the	260
authority may terminate the agreement and require the taxpayer to	261
refund to the state all or a portion of the credit claimed in	262
previous years, as follows:	263

(1) If the taxpayer maintained operations at the project	264
site for less than the term of the credit, the amount required to	265
be refunded shall not exceed the amount of any tax credits	266
previously allowed and received under this section.	267

(2) If the taxpayer maintained operations at the project	268
site longer than the term of the credit but less than one and	269
one-half times the term of the credit, the amount required to be	270
refunded shall not exceed fifty per cent of the sum of any tax	271
credits previously allowed and received under this section.	272

(3) If the taxpayer maintained operations at the project	273
site for at least one and one-half times the term of the credit	274
but less than twice the term of the credit, the amount required to	275
be refunded shall not exceed twenty-five per cent of the sum of	276
any tax credits previously allowed and received under this	277
section.	278

In determining the portion of the credit to be refunded to	279
this state, the authority shall consider the effect of market	280
conditions on the taxpayer's project and whether the taxpayer	281
continues to maintain other operations in this state. After	282
making the determination, the authority shall certify the amount	283
to be refunded to the tax commissioner. The commissioner shall	284
make an assessment for that amount against the taxpayer under	285
Chapter 5733. or 5747. of the Revised Code. The time limitations	286
on assessments under Chapter 5733. or 5747. of the Revised Code do	287
not apply to an assessment under this division, but the	288
commissioner shall make the assessment within one year after the	289
date the authority certifies to the commissioner the amount to be	290
refunded.	291

If the director of development determines that a taxpayer	292
that received a tax credit under this section has reduced the	293
number of employees agreed to under division (E)(5) of this	294
section by more than ten per cent, the director shall notify the	295
tax credit authority of the noncompliance. After receiving such	296
notice, and after providing the taxpayer an opportunity to explain	297
the noncompliance, the authority may amend the agreement to reduce	298
the percentage or term of the tax credit. The reduction in the	299
percentage or term shall take effect in the taxable year in which	300
the authority amends the agreement.	301

(K) The director of development, after consultation with the	302
tax commissioner and in accordance with Chapter 119. of the	303
Revised Code, shall adopt rules necessary to implement this	304
section. The rules may provide for recipients of tax credits	305
under this section to be charged fees to cover administrative	306
costs of the tax credit program. At the time the director gives	307
public notice under division (A) of section 119.03 of the Revised	308
Code of the adoption of the rules, the director shall submit	309
copies of the proposed rules to the chairpersons of the standing	310
committees on economic development in the senate and the house of	311
representatives.	312

(L) On or before the thirty-first day of March of each year,	313
the director of development shall submit a report to the governor,	314
the president of the senate, and the speaker of the house of	315
representatives on the tax credit program under this section. The	316
report shall include information on the number of agreements that	317
were entered into under this section during the preceding calendar	318
year, a description of the project that is the subject of each	319
such agreement, and an update on the status of projects under	320
agreements entered into before the preceding calendar year.	321

Sec. 149.43.  (A) As used in this section:

322

(1) "Public record" means records kept by any public	323
office, including, but not limited to, state, county, city,	324
village, township, and school district units, and records	325
pertaining to the delivery of educational services by an	326
alternative school in Ohio kept by a nonprofit or for profit	327
entity operating such alternative school pursuant to section	328
3313.533 of the Revised Code. "Public record" does not mean any of	329
the following:	330

(a) Medical records;

331

(b) Records pertaining to probation and parole proceedings;

332

(c) Records pertaining to actions under section 2151.85 and	333
division (C) of section 2919.121 of the Revised Code and to	334
appeals of actions arising under those sections;	335

(d) Records pertaining to adoption proceedings, including	336
the contents of an adoption file maintained by the department of	337
health under section 3705.12 of the Revised Code;	338

(e) Information in a record contained in the putative father	339
registry established by section 3107.062 of the Revised Code,	340
regardless of whether the information is held by the department of	341
job and family services or, pursuant to section 3111.69 of the	342
Revised Code, the office of child support in the department or a	343
child support enforcement agency;	344

(f) Records listed in division (A) of section 3107.42 of the	345
Revised Code or specified in division (A) of section 3107.52 of	346
the Revised Code;	347

(g) Trial preparation records;

348

(h) Confidential law enforcement investigatory records;

349

(i) Records containing information that is confidential	350
under section 2317.023 or 4112.05 of the Revised Code;	351

(j) DNA records stored in the DNA database pursuant to	352
section 109.573 of the Revised Code;	353

(k) Inmate records released by the department of	354
rehabilitation and correction to the department of youth services	355
or a court of record pursuant to division (E) of section 5120.21	356
of the Revised Code;	357

(l) Records maintained by the department of youth services	358
pertaining to children in its custody released by the department	359
of youth services to the department of rehabilitation and	360
correction pursuant to section 5139.05 of the Revised Code;	361

(m) Intellectual property records;

362

(n) Donor profile records;

363

(o) Records maintained by the department of job and family	364
services pursuant to section 3121.894 of the Revised Code;	365

(p) Peace officer residential and familial information;

366

(q) In the case of a county hospital operated pursuant to	367
Chapter 339. of the Revised Code, information that constitutes a	368
trade secret, as defined in section 1333.61 of the Revised Code;	369

(r) Information pertaining to the recreational activities of	370
a person under the age of eighteen;	371

(s) Records provided to, statements made by review board	372
members during meetings of, and all work products of a child	373
fatality review board acting under sections 307.621 to 307.629 of	374
the Revised Code, other than the report prepared pursuant to	375
section 307.626 of the Revised Code;	376

(t) Records provided to and statements made by the executive	377
director of a public children services agency or a prosecuting	378
attorney acting pursuant to section 5153.171 of the Revised Code	379
other than the information released under that section;	380

(u) Test materials, examinations, or evaluation tools used	381
in an examination for licensure as a nursing home administrator	382
that the board of examiners of nursing home administrators	383
administers under section 4751.04 of the Revised Code or contracts	384
under that section with a private or government entity to	385
administer;	386

(v) Records the release of which is prohibited by state or	387
federal law;	388

(w) Proprietary information of or relating to any person	389
that is submitted to or compiled by the Ohio venture capital	390
authority created under section 150.01 of the Revised Code.	391

(2) "Confidential law enforcement investigatory record"	392
means any record that pertains to a law enforcement matter of a	393
criminal, quasi-criminal, civil, or administrative nature, but	394
only to the extent that the release of the record would create a	395
high probability of disclosure of any of the following:	396

(a) The identity of a suspect who has not been charged with	397
the offense to which the record pertains, or of an information	398
source or witness to whom confidentiality has been reasonably	399
promised;	400

(b) Information provided by an information source or witness	401
to whom confidentiality has been reasonably promised, which	402
information would reasonably tend to disclose the source's or	403
witness's identity;	404

(c) Specific confidential investigatory techniques or	405
procedures or specific investigatory work product;	406

(d) Information that would endanger the life or physical	407
safety of law enforcement personnel, a crime victim, a witness, or	408
a confidential information source.	409

(3) "Medical record" means any document or combination of	410
documents, except births, deaths, and the fact of admission to or	411
discharge from a hospital, that pertains to the medical history,	412
diagnosis, prognosis, or medical condition of a patient and that	413
is generated and maintained in the process of medical treatment.	414

(4) "Trial preparation record" means any record that	415
contains information that is specifically compiled in reasonable	416
anticipation of, or in defense of, a civil or criminal action or	417
proceeding, including the independent thought processes and	418
personal trial preparation of an attorney.	419

(5) "Intellectual property record" means a record, other	420
than a financial or administrative record, that is produced or	421
collected by or for faculty or staff of a state institution of	422
higher learning in the conduct of or as a result of study or	423
research on an educational, commercial, scientific, artistic,	424
technical, or scholarly issue, regardless of whether the study or	425
research was sponsored by the institution alone or in conjunction	426
with a governmental body or private concern, and that has not been	427
publicly released, published, or patented.	428

(6) "Donor profile record" means all records about donors or	429
potential donors to a public institution of higher education	430
except the names and reported addresses of the actual donors and	431
the date, amount, and conditions of the actual donation.	432

(7) "Peace officer residential and familial information"	433
means either of the following:	434

(a) Any information maintained in a personnel record of a	435
peace officer that discloses any of the following:	436

(i) The address of the actual personal residence of a peace	437
officer, except for the state or political subdivision in which	438
the peace officer resides;	439

(ii) Information compiled from referral to or participation	440
in an employee assistance program;	441

(iii) The social security number, the residential telephone	442
number, any bank account, debit card, charge card, or credit card	443
number, or the emergency telephone number of, or any medical	444
information pertaining to, a peace officer;	445

(iv) The name of any beneficiary of employment benefits,	446
including, but not limited to, life insurance benefits, provided	447
to a peace officer by the peace officer's employer;	448

(v) The identity and amount of any charitable or employment	449
benefit deduction made by the peace officer's employer from the	450
peace officer's compensation unless the amount of the deduction is	451
required by state or federal law;	452

(vi) The name, the residential address, the name of the	453
employer, the address of the employer, the social security number,	454
the residential telephone number, any bank account, debit card,	455
charge card, or credit card number, or the emergency telephone	456
number of the spouse, a former spouse, or any child of a peace	457
officer.	458

(b) Any record that identifies a person's occupation as a	459
peace officer other than statements required to include the	460
disclosure of that fact under the campaign finance law.	461

As used in divisions (A)(7) and (B)(5) of this section,	462
"peace officer" has the same meaning as in section 109.71 of the	463
Revised Code and also includes the superintendent and troopers of	464
the state highway patrol; it does not include the sheriff of a	465
county or a supervisory employee who, in the absence of the	466
sheriff, is authorized to stand in for, exercise the authority of,	467
and perform the duties of the sheriff.	468

(8) "Information pertaining to the recreational activities	469
of a person under the age of eighteen" means information that is	470
kept in the ordinary course of business by a public office, that	471
pertains to the recreational activities of a person under the age	472
of eighteen years, and that discloses any of the following:	473

(a) The address or telephone number of a person under the	474
age of eighteen or the address or telephone number of that	475
person's parent, guardian, custodian, or emergency contact person;	476

(b) The social security number, birth date, or photographic	477
image of a person under the age of eighteen;	478

(c) Any medical record, history, or information pertaining	479
to a person under the age of eighteen;	480

(d) Any additional information sought or required about a	481
person under the age of eighteen for the purpose of allowing that	482
person to participate in any recreational activity conducted or	483
sponsored by a public office or to use or obtain admission	484
privileges to any recreational facility owned or operated by a	485
public office.	486

(B)(1) Subject to division (B)(4) of this section, all	487
public records shall be promptly prepared and made available for	488
inspection to any person at all reasonable times during regular	489
business hours. Subject to division (B)(4) of this section, upon	490
request, a public office or person responsible for public records	491
shall make copies available at cost, within a reasonable period of	492
time. In order to facilitate broader access to public records,	493
public offices shall maintain public records in a manner that they	494
can be made available for inspection in accordance with this	495
division.	496

(2) If any person chooses to obtain a copy of a public	497
record in accordance with division (B)(1) of this section, the	498
public office or person responsible for the public record shall	499
permit that person to choose to have the public record duplicated	500
upon paper, upon the same medium upon which the public office or	501
person responsible for the public record keeps it, or upon any	502
other medium upon which the public office or person responsible	503
for the public record determines that it reasonably can be	504
duplicated as an integral part of the normal operations of the	505
public office or person responsible for the public record. When	506
the person seeking the copy makes a choice under this division,	507
the public office or person responsible for the public record	508
shall provide a copy of it in accordance with the choice made by	509
the person seeking the copy.	510

(3) Upon a request made in accordance with division (B)(1)	511
of this section, a public office or person responsible for public	512
records shall transmit a copy of a public record to any person by	513
United States mail within a reasonable period of time after	514
receiving the request for the copy. The public office or person	515
responsible for the public record may require the person making	516
the request to pay in advance the cost of postage and other	517
supplies used in the mailing.	518

Any public office may adopt a policy and procedures that it	519
will follow in transmitting, within a reasonable period of time	520
after receiving a request, copies of public records by United	521
States mail pursuant to this division. A public office that	522
adopts a policy and procedures under this division shall comply	523
with them in performing its duties under this division.	524

In any policy and procedures adopted under this division, a	525
public office may limit the number of records requested by a	526
person that the office will transmit by United States mail to ten	527
per month, unless the person certifies to the office in writing	528
that the person does not intend to use or forward the requested	529
records, or the information contained in them, for commercial	530
purposes. For purposes of this division, "commercial" shall be	531
narrowly construed and does not include reporting or gathering	532
news, reporting or gathering information to assist citizen	533
oversight or understanding of the operation or activities of	534
government, or nonprofit educational research.	535

(4) A public office or person responsible for public records	536
is not required to permit a person who is incarcerated pursuant to	537
a criminal conviction or a juvenile adjudication to inspect or to	538
obtain a copy of any public record concerning a criminal	539
investigation or prosecution or concerning what would be a	540
criminal investigation or prosecution if the subject of the	541
investigation or prosecution were an adult, unless the request to	542
inspect or to obtain a copy of the record is for the purpose of	543
acquiring information that is subject to release as a public	544
record under this section and the judge who imposed the sentence	545
or made the adjudication with respect to the person, or the	546
judge's successor in office, finds that the information sought in	547
the public record is necessary to support what appears to be a	548
justiciable claim of the person.	549

(5) Upon written request made and signed by a journalist on	550
or after December 16, 1999, a public office, or person responsible	551
for public records, having custody of the records of the agency	552
employing a specified peace officer shall disclose to the	553
journalist the address of the actual personal residence of the	554
peace officer and, if the peace officer's spouse, former spouse,	555
or child is employed by a public office, the name and address of	556
the employer of the peace officer's spouse, former spouse, or	557
child. The request shall include the journalist's name and title	558
and the name and address of the journalist's employer and shall	559
state that disclosure of the information sought would be in the	560
public interest.	561

As used in division (B)(5) of this section, "journalist"	562
means a person engaged in, connected with, or employed by any news	563
medium, including a newspaper, magazine, press association, news	564
agency, or wire service, a radio or television station, or a	565
similar medium, for the purpose of gathering, processing,	566
transmitting, compiling, editing, or disseminating information for	567
the general public.	568

(C) If a person allegedly is aggrieved by the failure of a	569
public office to promptly prepare a public record and to make it	570
available to the person for inspection in accordance with division	571
(B) of this section, or if a person who has requested a copy of a	572
public record allegedly is aggrieved by the failure of a public	573
office or the person responsible for the public record to make a	574
copy available to the person allegedly aggrieved in accordance	575
with division (B) of this section, the person allegedly aggrieved	576
may commence a mandamus action to obtain a judgment that orders	577
the public office or the person responsible for the public record	578
to comply with division (B) of this section and that awards	579
reasonable attorney's fees to the person that instituted the	580
mandamus action. The mandamus action may be commenced in the	581
court of common pleas of the county in which division (B) of this	582
section allegedly was not complied with, in the supreme court	583
pursuant to its original jurisdiction under Section 2 of Article	584
IV, Ohio Constitution, or in the court of appeals for the	585
appellate district in which division (B) of this section allegedly	586
was not complied with pursuant to its original jurisdiction under	587
Section 3 of Article IV, Ohio Constitution.	588

(D) Chapter 1347. of the Revised Code does not limit the	589
provisions of this section.	590

(E)(1) The bureau of motor vehicles may adopt rules pursuant	591
to Chapter 119. of the Revised Code to reasonably limit the number	592
of bulk commercial special extraction requests made by a person	593
for the same records or for updated records during a calendar	594
year. The rules may include provisions for charges to be made for	595
bulk commercial special extraction requests for the actual cost of	596
the bureau, plus special extraction costs, plus ten per cent. The	597
bureau may charge for expenses for redacting information, the	598
release of which is prohibited by law.	599

(2) As used in divisions (B)(3) and (E)(1) of this section:

600

(a) "Actual cost" means the cost of depleted supplies,	601
records storage media costs, actual mailing and alternative	602
delivery costs, or other transmitting costs, and any direct	603
equipment operating and maintenance costs, including actual costs	604
paid to private contractors for copying services.	605

(b) "Bulk commercial special extraction request" means a	606
request for copies of a record for information in a format other	607
than the format already available, or information that cannot be	608
extracted without examination of all items in a records series,	609
class of records, or data base by a person who intends to use or	610
forward the copies for surveys, marketing, solicitation, or resale	611
for commercial purposes. "Bulk commercial special extraction	612
request" does not include a request by a person who gives	613
assurance to the bureau that the person making the request does	614
not intend to use or forward the requested copies for surveys,	615
marketing, solicitation, or resale for commercial purposes.	616

(c) "Commercial" means profit-seeking production, buying, or	617
selling of any good, service, or other product.	618

(d) "Special extraction costs" means the cost of the time	619
spent by the lowest paid employee competent to perform the task,	620
the actual amount paid to outside private contractors employed by	621
the bureau, or the actual cost incurred to create computer	622
programs to make the special extraction. "Special extraction	623
costs" include any charges paid to a public agency for computer or	624
records services.	625

(3) For purposes of divisions (E)(1) and (2) of this	626
section, "commercial surveys, marketing, solicitation, or resale"	627
shall be narrowly construed and does not include reporting or	628
gathering news, reporting or gathering information to assist	629
citizen oversight or understanding of the operation or activities	630
of government, or nonprofit educational research.	631

Sec. 150.01. (A) As used in this chapter:

632

(1) "Authority" means the Ohio venture capital authority	633
created under section 150.02 of the Revised Code.	634

(2) "Lender" means any person that lends money to the	635
program fund as provided in this chapter.	636

(3) "Loss" means a loss incurred with respect to a lender's	637
loan to the program fund. Such a loss is incurred only if and to	638
the extent a program administrator fails to satisfy its	639
obligations to the lender to make timely payments of principal or	640
interest as provided in the loan agreement between the lender and	641
the program administrator. "Loss" does not include either of the	642
following:	643

(a) Any loss incurred by the program fund, including a loss	644
attributable to any investment made by a program administrator;	645

(b) Any loss of the capital required to be provided by a	646
program administrator, or income accruing to that capital, under	647
the agreement entered into under division (B) of section 150.05 of	648
the Revised Code.	649

(4) "Ohio-based business enterprise" means a person that is	650
engaged in business, that employs at least one individual on a	651
full-time or part-time basis at a place of business in this state,	652
including a person engaged in business if that person is a	653
self-employed individual, and that is in the seed or early stage	654
of business development requiring initial or early stage funding	655
or is an established business enterprise developing new methods or	656
technologies.	657

(5) "Ohio-based venture capital fund" means a venture	658
capital fund having its principal office in this state, where the	659
majority of the fund's staff are employed and where at least one	660
investment professional is employed who has at least five years of	661
experience in venture capital investment.	662

(6) "Program fund" means the fund created under section	663
150.03 of the Revised Code.	664

(B) The general assembly declares that its purpose in	665
enacting Chapter 150. of the Revised Code is to increase the	666
amount of private investment capital available in this state for	667
Ohio-based business enterprises in the seed or early stages of	668
business development and requiring initial or early stage funding,	669
as well as established Ohio-based business enterprises developing	670
new methods or technologies, thereby increasing employment,	671
creating additional wealth, and otherwise benefiting the economic	672
welfare of the people of this state. Accordingly, it is the	673
intention of the general assembly that the Ohio venture capital	674
authority focus its investment policy principally on venture	675
capital funds investing in such Ohio-based business enterprises.	676

Sec. 150.02. (A) There is hereby created the Ohio venture	677
capital authority, which shall exercise the powers and perform the	678
duties prescribed by this chapter. The exercise by the authority	679
of its powers and duties is hereby declared to be an essential	680
state governmental function. The authority is subject to all laws	681
generally applicable to state agencies and public officials,	682
including, but not limited to, Chapter 119. and sections 121.22	683
and 149.43 of the Revised Code, to the extent those laws do not	684
conflict with this chapter.	685

(B) The authority shall consist of nine members. Seven of	686
the members shall be appointed by the governor, with the advice	687
and consent of the senate, from among the general public. All	688
appointed members shall have experience in the field of banking,	689
investments, commercial law, or industry relevant to the purpose	690
of the Ohio venture capital program as stated in section 150.01 of	691
the Revised Code. The director of development and tax	692
commissioner or their designees shall be ex officio, nonvoting	693
members.	694

Initial gubernatorial appointees to the authority shall serve	695
staggered terms, with one term expiring on January 31, 2004, two	696
terms expiring on January 31, 2005, two terms expiring on January	697
31, 2006, and two terms expiring on January 31, 2007. Thereafter,	698
terms of office for all appointees shall be for four years, with	699
each term ending on the same day of the same month as did the term	700
that it succeeds. A vacancy on the authority shall be filled in	701
the same manner as the original appointment, except that a person	702
appointed to fill a vacancy shall be appointed to the remainder of	703
the unexpired term. Any appointed member of the authority is	704
eligible for reappointment.	705

A member of the authority may be removed by the member's	706
appointing authority for misfeasance, malfeasance, willful	707
neglect of duty, or other cause, after notice and a public	708
hearing, unless the notice and hearing are waived in writing by	709
the member.	710

(C) Members of the authority shall serve without	711
compensation, but shall receive their reasonable and necessary	712
expenses incurred in the conduct of authority business. The	713
governor shall designate a member of the authority to serve as	714
chairperson. A majority of the voting members of the authority	715
constitutes a quorum, and the affirmative vote of a majority of	716
the voting members present is necessary for any action taken by	717
the authority. A vacancy in the voting membership of the authority	718
does not impair the right of a quorum to exercise all rights and	719
perform all duties of the authority.	720

(D) The department of development shall provide the	721
authority with office space and such technical assistance as the	722
authority requires.	723

Sec. 150.03. Within ninety days after the effective date of	724
this section, the authority shall establish, and subsequently may	725
modify as it considers necessary, a written investment policy	726
governing the investment of money from the program fund, which is	727
hereby created. The program fund shall consist of the proceeds of	728
loans acquired by a program administrator. The authority is	729
subject to Chapter 119. of the Revised Code with respect to the	730
establishment or modification of the policy. The policy shall	731
meet all the following requirements:	732

(A) It is consistent with the purpose of the program stated	733
in section 150.01 of the Revised Code.	734

(B) Subject to divisions (C), (D), and (E) of this section,	735
it permits the investment of money from the program fund in	736
private, for-profit venture capital funds, including funds of	737
funds, that invest in enterprises in the seed or early stage of	738
business development or established business enterprises	739
developing new methods or technologies, and that demonstrate	740
potential to generate high levels of successful investment	741
performance.	742

(C) It specifies that a program administrator or fund	743
manager employed by the program administrator shall invest not	744
less than seventy-five per cent of program fund money under its	745
investment authority in Ohio-based venture capital funds.	746

(D) It specifies that not less than an amount equal to	747
fifty per cent of program fund money invested in any venture	748
capital fund be invested by the venture capital fund in Ohio-based	749
business enterprises.	750

(E) It specifies that a program administrator or fund	751
manager employed by the program administrator shall not invest	752
money from the program fund in a venture capital fund to the	753
extent that the total amount of program fund money invested in the	754
venture capital fund, when combined with any program fund money	755
invested in a venture capital fund under the same management as	756
that venture capital fund, exceeds the lesser of the following:	757

(1) Ten million dollars;

758

(2)(a) In the case of an Ohio-based venture capital fund,	759
fifty per cent of the total amount of capital committed to the	760
fund from all sources, after accounting for capital committed from	761
the program fund;	762

(b) In the case of any other venture capital fund, twenty	763
per cent of the total amount of capital committed to the fund from	764
all sources, after accounting for capital committed from the	765
program fund.	766

(F) It specifies that a program administrator or fund	767
manager employed by the program administrator shall not commit	768
capital from the program fund to a venture capital fund until the	769
venture capital fund receives commitment of at least the same	770
amount from other investors in the fund.	771

(G) It specifies the general conditions a private, for-profit	772
investment fund must meet to be selected as a program	773
administrator under section 150.05 of the Revised Code, including,	774
as a significant selection standard, direct experience managing	775
external or nonproprietary capital in private equity fund of funds	776
formats.	777

(H) It specifies the criteria the authority must consider	778
when making a determination under division (B)(1) of section	779
150.04 of the Revised Code.	780

(I) It includes investment standards and general limitations	781
on allowable investments that the authority considers reasonable	782
and necessary to achieve the purposes of this chapter as stated in	783
division (B) of section 150.01 of the Revised Code, minimize the	784
need for the authority to grant tax credits under section 150.07	785
of the Revised Code, ensure compliance of the program	786
administrators with all applicable laws of this state and the	787
United States, and ensure the safety and soundness of investments	788
of money from the program fund.	789

(J) It prohibits the investment of money from the program	790
fund directly in persons other than venture capital funds, except	791
for temporary investment in investment grade debt securities or	792
temporary deposit in interest-bearing accounts or funds pending	793
permanent investment in venture capital funds.	794

Sec. 150.04. (A) The investment policy established or	795
modified under section 150.03 of the Revised Code shall specify	796
the terms and conditions under which the authority may grant tax	797
credits under section 150.07 of the Revised Code, subject to that	798
section and division (B) of this section, to provide security	799
against lenders' losses.	800

(B) Nothing in this chapter authorizes the providing of	801
security against losses on any bases other than the following:	802

(1) The application first of moneys of the Ohio venture	803
capital fund, created under section 150.08 of the Revised Code,	804
that the authority, under the criteria in its investment policy,	805
determines may be expended without adversely affecting the ability	806
of the authority to continue fulfilling the purpose of this	807
chapter as stated in section 150.01 of the Revised Code; and then	808

(2) The granting of tax credits pursuant to section 150.07 of	809
the Revised Code, but only to the extent moneys under division	810
(B)(1) of this section are insufficient.	811

Sec. 150.05.  (A) The authority shall select, as program	812
administrators, not more than two private, for-profit investment	813
funds to acquire loans for the program fund and to invest money in	814
the program fund as prescribed in the investment policy	815
established or modified by the authority in accordance with	816
sections 150.03 and 150.04 of the Revised Code. To be eligible	817
for selection, an investment fund must be incorporated or	818
organized under Chapter 1701., 1705., 1775., 1782., or 1783. of	819
the Revised Code, must have an established business presence in	820
this state, and must be capitalized in accordance with any state	821
and federal laws applicable to the issuance or sale of securities.	822

The authority shall select program administrators only after	823
soliciting and evaluating requests for proposals as prescribed in	824
this section. The authority shall publish a notice of a request	825
for proposals in newspapers of general circulation in this state	826
once each week for two consecutive weeks before a date specified	827
by the authority as the date on which it will begin accepting	828
proposals. The notices shall contain a general description of the	829
subject of the proposed agreement and the location where the	830
request for proposals may be obtained. The request for proposals	831
shall include all the following:	832

(1) Instructions and information to respondents concerning	833
the submission of proposals, including the name and address of the	834
office where proposals are to be submitted;	835

(2) Instructions regarding the manner in which respondents	836
may communicate with the authority, including the names, titles,	837
and telephone numbers of the individuals to whom such	838
communications shall be directed;	839

(3) Description of the performance criteria that will be	840
used to evaluate whether a respondent selected by the authority is	841
satisfying the authority's investment policy;	842

(4) Description of the factors and criteria to be considered	843
in evaluating respondents' proposals, the relative importance of	844
each factor or criterion, and description of the authority's	845
evaluation procedure;	846

(5) Description of any documents that may be incorporated by	847
reference into the request for proposals, provided that the	848
request specifies where such documents may be obtained and such	849
documents are readily available to all interested parties.	850

After the date specified for receiving proposals, the	851
authority shall evaluate submitted proposals. The authority may	852
discuss a respondent's proposal with that respondent to clarify or	853
revise a proposal or the terms of the agreement.	854

The authority shall choose for review proposals from at least	855
three respondents the authority considers qualified to operate the	856
program in the best interests of the investment policy adopted by	857
the authority. If three or fewer proposals are submitted, the	858
authority shall review each proposal. The authority may cancel a	859
request for proposals at any time before entering into an	860
agreement with a respondent. The authority shall provide	861
respondents fair and equal opportunity for such discussions. The	862
authority may terminate discussions with any respondent upon	863
written notice to the respondent.	864

(B) After reviewing the chosen proposals, the authority may	865
select not more than two such respondents and enter into a written	866
agreement with each of the selected respondents, provided that at	867
no time shall there be agreements with more than two persons.	868

The agreement shall do all of the following:

869

(1) Specify that borrowing and investing by the program	870
administrator will be budgeted to guarantee that no tax credits	871
will be granted during the first four years of the Ohio venture	872
capital program, and will be structured to ensure that payments of	873
principal, interest, or interest equivalent due in any fiscal	874
year, when added to such payments due from any other program	875
administrator, does not exceed twenty million dollars;	876

(2) Require investment by the program administrator or the	877
fund manager employed by the program administrator to be in	878
compliance with the investment policy established or modified in	879
accordance with sections 150.03 and 150.04 of the Revised Code	880
that is in effect at the time the investment is made, and prohibit	881
the program administrator or fund manager from engaging in any	882
investment activities other than activities to carry out that	883
policy;	884

(3) Require periodic financial reporting by the program	885
administrator to the authority, which reporting shall include an	886
annual audit by an independent auditor and such other financial	887
reporting as is specified in the agreement or otherwise required	888
by the authority for the purpose of ensuring that the program	889
administrator is carrying out the investment policy;	890

(4) Specify any like standards or general limitations in	891
addition to or in furtherance of investment standards or	892
limitations that apply pursuant to division (H) of section 150.03	893
of the Revised Code;	894

(5) Require the program administrator to apply program fund	895
revenue first to the payment of principal borrowed by the program	896
administrator for investment under the program, then to interest	897
related to that principal, and then to amounts necessary to cover	898
the program administrator's pro rata share required under division	899
(B) (9) of this section; and require the program administrator to	900
pay the authority not less than ninety per cent of the amount by	901
which program fund revenue attributable to investments under the	902
program administrator's investment authority exceeds amounts so	903
applied;	904

(6) Specify the procedures by which the program administrator	905
shall certify immediately to the authority the necessity for the	906
authority to issue tax credit certificates pursuant to contracts	907
entered into under section 150.07 of the Revised Code;	908

(7) Specify any general limitations regarding the employment	909
of a fund manager by the program administrator, in addition to an	910
express limitation that the fund manager be a person with	911
demonstrated, substantial, successful experience in the design and	912
management of seed and venture capital investment programs and in	913
capital formation. The fund manager may be, but need not be, an	914
equity owner or affiliate of the program administrator.	915

(8) Specify the terms and conditions under which the	916
authority or the program administrator may terminate the	917
agreement, including in the circumstance that the program	918
administrator or fund manager violates the investment policy;	919

(9) Require the program administrator or fund manager	920
employed by the program administrator to provide capital in the	921
form of a loan equal to one per cent of the amount of outstanding	922
loans by lenders to the program fund. The loan from the program	923
administrator or fund manager shall be on the same terms and	924
conditions as loans from other lenders, except that the loan from	925
the program administrator or fund manager shall not be secured by	926
the Ohio venture capital fund or tax credits available to other	927
lenders under division (B) of section 150.04 of the Revised Code.	928
Such capital shall be placed at the same risk as the proceeds from	929
such loans. The program administrator shall receive a pro rata	930
share of the net income, including net loss, from the investment	931
of money from the program fund, but is not entitled to the	932
security against losses provided under section 150.04 of the	933
Revised Code.	934

Sec. 150.06.  (A) The authority is not an agency as defined	935
in section 101.82 of the Revised Code for purposes of divisions	936
(A) and (B) of section 101.83 of the Revised Code.	937

(B) The selection of a program administrator and the entering	938
into an agreement under section 150.05 of the Revised Code do	939
not constitute a purchase of services under Chapter 125. of the	940
Revised Code.	941

(C) Notwithstanding section 121.22 of the Revised Code, the	942
authority may hold an executive session for either of the	943
following purposes, but only after a majority of a quorum of the	944
authority determines, by a roll call vote, to hold the session,	945
and only at a regular or special meeting:	946

(1) Presenting, reviewing, or discussing proprietary	947
information relating to any person unless that person has	948
consented in writing to disclosure of such information by the	949
authority;	950

(2) Preparing for, conducting, or reviewing negotiating	951
sessions with any private, for-profit investment fund for the	952
purpose of selecting a program administrator and entering into an	953
agreement under section 150.05 of the Revised Code.	954

Sec. 150.07.  (A) For the purpose stated in section 150.01	955
of the Revised Code, the authority may authorize a lender to claim	956
one of the tax credits allowed under section 5725.19, 5729.08,	957
5733.49, or 5747.80 of the Revised Code. The credits shall be	958
authorized by a written contract with the lender. The contract	959
shall specify the terms under which the lender may claim the	960
credit, including the amount of loss, if any, the lender must	961
incur before the lender may claim the credit; specify that the	962
credit shall not exceed the amount of the loss; and specify that	963
the lender may claim the credit only for a loss certified by a	964
program administrator to the authority under the procedures	965
prescribed under division (B)(6) of section 150.05 of the Revised	966
Code.	967

(B) Tax credits may be authorized at any time after the	968
authority establishes the investment policy under section 150.03	969
of the Revised Code, but a tax credit so authorized may not be	970
claimed until the beginning of the fifth year after the authority	971
establishes the investment policy. A tax credit may not be	972
claimed after June 30, 2026.	973

(C) Upon receiving certification of a lender's loss from a	974
program administrator pursuant to the procedures in the investment	975
policy, the authority shall issue a tax credit certificate to the	976
lender, except as otherwise provided in division (D) of this	977
section. The authority shall not issue a certificate until the	978
lender, in the manner prescribed by the authority, elects to	979
receive a refundable or nonrefundable tax credit. The election,	980
once made, is irrevocable. The certificate shall state the amount	981
of the credit, whether the credit is refundable or nonrefundable,	982
and the calendar year, under section 5725.19 or 5729.08, the tax	983
year, under section 5733.49, or the taxable year under section	984
5747.80 of the Revised Code, for which the credit may be claimed.	985
The authority, in conjunction with the tax commissioner, shall	986
develop a system for issuing tax credit certificates for the	987
purpose of verifying that any credit claimed is a credit issued	988
under this section and is properly taken in the year specified in	989
the certificate and in compliance with division (B) of this	990
section.	991

(D) The authority shall not, in any fiscal year, issue tax	992
credit certificates in a total amount exceeding twenty million	993
dollars.	994

Sec. 150.08.  (A) There is hereby created in the state	995
treasury the Ohio venture capital fund, to which shall be credited	996
all payments received by the authority pursuant to division	997
(B)(5) of section 150.05 of the Revised Code and all interest	998
earned on moneys of the fund.	999

(B) Except as provided in division (C) of this section, money	1000
in the Ohio venture capital fund shall be used exclusively to	1001
provide security against losses as authorized under this chapter.	1002

(C) If the amount in the venture capital fund exceeds the	1003
amount reasonably necessary to provide security against such	1004
losses, the excess may be used, upon appropriation by the general	1005
assembly, to provide scholarships or other financial assistance to	1006
students enrolled in a course of study in the fields of physical	1007
or natural sciences, mathematics, or engineering at an institution	1008
of higher education in this state.	1009

Sec. 150.09.  The state, the governor, or a member of the	1010
authority is not liable in damages to any person in a civil action	1011
for any loss incurred as a result of any investment made by a	1012
program administrator or fund manager employed by the program	1013
administrator.	1014

Sec. 150.10.  (A) On the first day of January of the second	1015
year after the date of entering into an agreement under section	1016
150.05 of the Revised Code and of each ensuing year, the authority	1017
shall file with the clerk of the house of representatives, the	1018
clerk of the senate, and the chairpersons of the house and senate	1019
standing committees predominantly concerned with economic	1020
development a written report on the Ohio venture capital program.	1021
The report shall include all the following:	1022

(1) A description of the details of the investment policy	1023
established or modified in accordance with sections 150.03 and	1024
150.04 of the Revised Code;	1025

(2) The authority's assessment of the program's achievement	1026
of its purpose stated in section 150.01 of the Revised Code;	1027

(3) The value of tax credit certificates issued by the	1028
authority under section 150.07 of the Revised Code in each fiscal	1029
year ending on or before the preceding thirtieth day of June;	1030

(4) The amount of tax credits claimed pursuant to section	1031
5725.19, 5729.08, 5733.49, or 5747.80 of the Revised Code, as to	1032
the respective taxes involved;	1033

(5) The financial status of the Ohio venture capital fund;

1034

(6) The names of venture capital funds in which money from	1035
the program fund has been invested and the locations of their	1036
principal offices, and the names of the enterprises in which each	1037
of those venture capital funds has invested such money and the	1038
locations of those enterprises' principal offices;	1039

(7) Any recommendations for modifying the program to better	1040
achieve the purpose stated in section 150.01 of the Revised Code.	1041

(B) During each year that a report is issued under division	1042
(A) of this section, the chairperson of the authority, or another	1043
member of the authority designated by the chairperson as the	1044
authority's representative, shall be required to appear in person	1045
before the standing committees of the house and senate	1046
predominantly concerned with economic development to give	1047
testimony concerning the status of the Ohio venture capital	1048
program.	1049

Sec. 718.01.  (A) As used in this chapter:

1050

(1) "Internal Revenue Code" means the Internal Revenue Code	1051
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.	1052

(2) "Schedule C" means internal revenue service schedule C	1053
filed by a taxpayer pursuant to the Internal Revenue Code.	1054

(3) "Form 2106" means internal revenue service form 2106	1055
filed by a taxpayer pursuant to the Internal Revenue Code.	1056

(4) "Intangible income" means income of any of the following	1057
types: income yield, interest, dividends, or other income arising	1058
from the ownership, sale, exchange, or other disposition of	1059
intangible property including, but not limited to, investments,	1060
deposits, money, or credits as those terms are defined in Chapter	1061
5701. of the Revised Code.	1062

(5) "S corporation" means a corporation that has made an	1063
election under subchapter S of Chapter 1 of Subtitle A of the	1064
Internal Revenue Code for its taxable year.	1065

(B) No municipal corporation with respect to that income	1066
that it may tax shall tax such income at other than a uniform	1067
rate.	1068

(C) No municipal corporation shall levy a tax on income at a	1069
rate in excess of one per cent without having obtained the	1070
approval of the excess by a majority of the electors of the	1071
municipality voting on the question at a general, primary, or	1072
special election. The legislative authority of the municipal	1073
corporation shall file with the board of elections at least	1074
seventy-five days before the day of the election a copy of the	1075
ordinance together with a resolution specifying the date the	1076
election is to be held and directing the board of elections to	1077
conduct the election. The ballot shall be in the following form:	1078
"Shall the Ordinance providing for a ... per cent levy on income	1079
for (Brief description of the purpose of the proposed levy) be	1080
passed?	1081

FOR THE INCOME TAX

1082

AGAINST THE INCOME TAX"

1083

In the event of an affirmative vote, the proceeds of the levy	1084
may be used only for the specified purpose.	1085

(D)(1) Except as otherwise provided in division (D)(2) or	1086
(F)(9) of this section, no municipal corporation shall exempt from	1087
a tax on income, compensation for personal services of individuals	1088
over eighteen years of age or the net profit from a business or	1089
profession.	1090

(2) The legislative authority of a municipal corporation	1091
may, by ordinance or resolution, exempt from a tax on income any	1092
compensation arising from the grant, sale, exchange, or other	1093
disposition of a stock option; the exercise of a stock option; or	1094
the sale, exchange, or other disposition of stock purchased under	1095
a stock option.	1096

(E) Nothing in this section shall prevent a municipal	1097
corporation from permitting lawful deductions as prescribed by	1098
ordinance. If a taxpayer's taxable income includes income against	1099
which the taxpayer has taken a deduction for federal income tax	1100
purposes as reportable on the taxpayer's form 2106, and against	1101
which a like deduction has not been allowed by the municipal	1102
corporation, the municipal corporation shall deduct from the	1103
taxpayer's taxable income an amount equal to the deduction shown	1104
on such form allowable against such income, to the extent not	1105
otherwise so allowed as a deduction by the municipal corporation.	1106
In the case of a taxpayer who has a net profit from a business or	1107
profession that is operated as a sole proprietorship, no municipal	1108
corporation may tax or use as the base for determining the amount	1109
of the net profit that shall be considered as having a taxable	1110
situs in the municipal corporation, a greater amount than the net	1111
profit reported by the taxpayer on schedule C filed in reference	1112
to the year in question as taxable income from such sole	1113
proprietorship, except as otherwise specifically provided by	1114
ordinance or regulation.	1115

(F) A municipal corporation shall not tax any of the	1116
following:	1117

(1) The military pay or allowances of members of the armed	1118
forces of the United States and of members of their reserve	1119
components, including the Ohio national guard;	1120

(2) The income of religious, fraternal, charitable,	1121
scientific, literary, or educational institutions to the extent	1122
that such income is derived from tax-exempt real estate,	1123
tax-exempt tangible or intangible property, or tax-exempt	1124
activities;	1125

(3) Except as otherwise provided in division (G) of this	1126
section, intangible income;	1127

(4) Compensation paid under section 3501.28 or 3501.36 of	1128
the Revised Code to a person serving as a precinct election	1129
official, to the extent that such compensation does not exceed one	1130
thousand dollars annually. Such compensation in excess of one	1131
thousand dollars may be subjected to taxation by a municipal	1132
corporation. A municipal corporation shall not require the payer	1133
of such compensation to withhold any tax from that compensation.	1134

(5) Compensation paid to an employee of a transit authority,	1135
regional transit authority, or regional transit commission created	1136
under Chapter 306. of the Revised Code for operating a transit bus	1137
or other motor vehicle for the authority or commission in or	1138
through the municipal corporation, unless the bus or vehicle is	1139
operated on a regularly scheduled route, the operator is subject	1140
to such a tax by reason of residence or domicile in the municipal	1141
corporation, or the headquarters of the authority or commission is	1142
located within the municipal corporation;	1143

(6) The income of a public utility when that public utility	1144
is subject to the tax levied under section 5727.24 or 5727.30 of	1145
the Revised Code, except starting January 1, 2002, the income of	1146
an electric company or combined company, as defined in section	1147
5727.01 of the Revised Code, may be taxed by a municipal	1148
corporation, subject to Chapter 5745. of the Revised Code.	1149

(7) On and after January 1, 2003, items excluded from	1150
federal gross income pursuant to section 107 of the Internal	1151
Revenue Code;	1152

(8) On and after January 1, 2001, compensation paid to a	1153
nonresident individual to the extent prohibited under section	1154
718.011 of the Revised Code;	1155

(9) Except as provided in division (H) of this section, an S	1156
corporation shareholder's distributive share of net profits of the	1157
S corporation, other than any part of the distributive share of	1158
net profits that represents wages as defined in section 3121(a) of	1159
the Internal Revenue Code or net earnings from self-employment as	1160
defined in section 1402(a) of the Internal Revenue Code, to the	1161
extent such distributive share would not be allocated or	1162
apportioned to this state under division (B)(1) and (2) of section	1163
5733.05 of the Revised Code if the S corporation were a	1164
corporation subject to the taxes imposed under Chapter 5733. of	1165
the Revised Code.	1166

(G) Any municipal corporation that taxes any type of	1167
intangible income on March 29, 1988, pursuant to Section 3 of	1168
Amended Substitute Senate Bill No. 238 of the 116th general	1169
assembly, may continue to tax that type of income after 1988 if a	1170
majority of the electors of the municipal corporation voting on	1171
the question of whether to permit the taxation of that type of	1172
intangible income after 1988 vote in favor thereof at an election	1173
held on November 8, 1988.	1174

(H) Any municipal corporation that, on December 6, 2002,	1175
taxes an S corporation shareholder's distributive share of net	1176
profits of the S corporation to any greater extent than that	1177
permitted under division (F)(9) of this section may continue after	1178
2002 to tax such distributive shares to such greater extent only	1179
if a majority of the electors of the municipal corporation voting	1180
on the question of such continuation vote in favor thereof at an	1181
election held on November 4, 2003. If a majority of electors vote	1182
in favor of that question, then, for purposes of section 718.14 of	1183
the Revised Code, "pass-through entity" includes S corporations,	1184
"income from a pass-through entity" includes distributive shares	1185
from an S corporation, and "owner" includes a shareholder of an S	1186
corporation, notwithstanding that section to the contrary.	1187

(I) Nothing in this section or section 718.02 of the Revised	1188
Code shall authorize the levy of any tax on income that a	1189
municipal corporation is not authorized to levy under existing	1190
laws or shall require a municipal corporation to allow a deduction	1191
from taxable income for losses incurred from a sole proprietorship	1192
or partnership.	1193

Sec. 718.14.  (A) As used in this section:

1194

(1) "S corporation" means a corporation that has made an	1195
election under subchapter S of Chapter 1 of Subtitle A of the	1196
Internal Revenue Code for its taxable year.	1197

(2) "Limited liability company" means a limited liability	1198
company formed under Chapter 1705. of the Revised Code or under	1199
the laws of another state.	1200

(3)(2) "Pass-through entity" means a partnership, S	1201
corporation, limited liability company, or any other class of	1202
entity the income or profits from which are given pass-through	1203
treatment under the Internal Revenue Code, excluding an S	1204
corporation.	1205

(4)(3) "Income from a pass-through entity" means partnership	1206
income of partners, distributive shares of shareholders of an s	1207
corporation, membership interests of members of a limited	1208
liability company, or other distributive or proportionate	1209
ownership shares of income from other pass-through entities.	1210

(5)(4) "Owner" means a partner of a partnership, a	1211
shareholder of an S corporation, a member of a limited liability	1212
company, or other person with an ownership interest in a	1213
pass-through entity.	1214

(6)(5) "Owner's proportionate share," with respect to each	1215
owner of a pass-through entity, means the ratio of (a) the owner's	1216
income from the pass-through entity that is subject to taxation by	1217
the municipal corporation, to (b) the total income from that	1218
entity of all owners whose income from the entity is subject to	1219
taxation by that municipal corporation.	1220

(B) On and after January 1, 2003, any municipal corporation	1221
imposing a tax that applies to income from a pass-through entity	1222
shall grant a credit to each owner who is domiciled in the	1223
municipal corporation for taxes paid to another municipal	1224
corporation by a pass-through entity that does not conduct	1225
business in the municipal corporation. The amount of the credit	1226
shall equal the lesser of the following amounts, subject to	1227
division (C) of this section:	1228

(1) The owner's proportionate share of the amount, if any,	1229
of tax paid by the pass-through entity to another municipal	1230
corporation in this state;	1231

(2) The owner's proportionate share of the amount of tax	1232
that would be imposed on the pass-through entity by the municipal	1233
corporation in which the taxpayer is domiciled if the pass-through	1234
entity conducted business in the municipal corporation.	1235

(C) If a municipal corporation grants a credit for a	1236
percentage, less than one hundred per cent, of the amount of	1237
income taxes paid on compensation by an individual who resides or	1238
is domiciled in the municipal corporation to another municipal	1239
corporation, the amount of credit otherwise required by division	1240
(B) of this section shall be multiplied by that percentage.	1241

(D) On and after January 1, 2003, any municipal corporation	1242
that imposes a tax on income of or from a pass-through entity	1243
shall specify by ordinance or rule whether the tax applies to	1244
income of the pass-through entity in the hands of the entity or to	1245
income from the pass-through entity in the hands of the owners of	1246
the entity. A municipal corporation may specify a different	1247
ordinance or rule under this division for each of the classes of	1248
pass-through entity enumerated in division (A)(3)(2) of this	1249
section.	1250

Sec. 5703.21.  (A) Except as provided in divisions (B) and	1251
(C) of this section, no agent of the department of taxation,	1252
except in the agent's report to the department or when called on	1253
to testify in any court or proceeding, shall divulge any	1254
information acquired by the agent as to the transactions,	1255
property, or business of any person while acting or claiming to	1256
act under orders of the department. Whoever violates this	1257
provision shall thereafter be disqualified from acting as an	1258
officer or employee or in any other capacity under appointment or	1259
employment of the department.	1260

(B)(1) For purposes of an audit pursuant to section 117.15	1261
of the Revised Code, or an audit of the department pursuant to	1262
Chapter 117. of the Revised Code, or an audit, pursuant to that	1263
chapter, the objective of which is to express an opinion on a	1264
financial report or statement prepared or issued pursuant to	1265
division (A)(7) or (9) of section 126.21 of the Revised Code, the	1266
officers and employees of the auditor of state charged with	1267
conducting the audit shall have access to and the right to examine	1268
any state tax returns and state tax return information in the	1269
possession of the department to the extent that the access and	1270
examination are necessary for purposes of the audit. Any	1271
information acquired as the result of that access and examination	1272
shall not be divulged for any purpose other than as required for	1273
the audit or unless the officers and employees are required to	1274
testify in a court or proceeding under compulsion of legal	1275
process. Whoever violates this provision shall thereafter be	1276
disqualified from acting as an officer or employee or in any other	1277
capacity under appointment or employment of the auditor of state.	1278

(2) As provided by section 6103(d)(2) of the Internal	1279
Revenue Code, any federal tax returns or federal tax information	1280
that the department has acquired from the internal revenue	1281
service, through federal and state statutory authority, may be	1282
disclosed to the auditor of state solely for purposes of an audit	1283
of the department.	1284

(C) Division (A) of this section does not prohibit any of	1285
the following:	1286

(1) Divulging information contained in applications,	1287
complaints, and related documents filed with the department under	1288
section 5715.27 of the Revised Code or in applications filed with	1289
the department under section 5715.39 of the Revised Code;	1290

(2) Providing information to the office of child support	1291
within the department of job and family services pursuant to	1292
section 3125.43 of the Revised Code;	1293

(3) Disclosing to the board of motor vehicle collision	1294
repair registration any information in the possession of the	1295
department that is necessary for the board to verify the existence	1296
of an applicant's valid vendor's license and current state tax	1297
identification number under section 4775.07 of the Revised Code;	1298

(4) Providing information to the administrator of workers'	1299
compensation pursuant to section 4123.591 of the Revised Code;	1300

(5) Providing to the attorney general information the	1301
department obtains under division (J) of section 1346.01 of the	1302
Revised Code;	1303

(6) Permitting properly authorized officers, employees, or	1304
agents of a municipal corporation from inspecting reports or	1305
information pursuant to rules adopted under section 5745.16 of the	1306
Revised Code;	1307

(7) Providing information regarding the name, account	1308
number, or business address of a holder of a vendor's license	1309
issued pursuant to section 5739.17 of the Revised Code, a holder	1310
of a direct payment permit issued pursuant to section 5739.031 of	1311
the Revised Code, or a seller having a use tax account maintained	1312
pursuant to section 5741.17 of the Revised Code, or information	1313
regarding the active or inactive status of a vendor's license,	1314
direct payment permit, or seller's use tax account;	1315

(8) Releasing invoices or invoice information furnished under	1316
section 4301.433 of the Revised Code pursuant to that section;	1317

(9) Providing to a county auditor notices or documents	1318
concerning or affecting the taxable value of property in the	1319
county auditor's county. Unless authorized by law to disclose	1320
documents so provided, the county auditor shall not disclose such	1321
documents.	1322

Sec. 5709.211. As used in this section: (A) "Facility" means	1324
an air pollution control facility, noise pollution control	1325
facility, energy conversion facility, thermal efficiency	1326
improvement facility, or solid waste energy conversion facility as	1327
defined in section 5709.20 or 5709.45 of the Revised Code.	1328

(B) "Tax exemption certificate" means a certificate issued	1329
under section 5709.21 or 5709.46 of the Revised Code.	1330

As soon as is practicable after receiving an application for	1331
a tax exemption certificate, the tax commissioner shall provide a	1332
copy of the application and of any accompanying documentation to	1333
the county auditor of the county in which the facility is located.	1334
The copy shall be accompanied by a statement showing an estimate	1335
of what the assessed value of the facility would be, based on the	1336
appropriate assessment percentage, if the facility were to be	1337
taxable, and an estimate of the taxes that would be chargeable	1338
against the facility computed on the basis of the rate of taxation	1339
in the taxing district in the year in which the application is	1340
received. Within sixty days after receiving such a statement, the	1341
county auditor shall issue a notice to the taxing authority of	1342
each taxing unit in which the facility is or is to be located. The	1343
notice shall state that an application for a tax exemption	1344
certificate has been filed for the facility; the estimated	1345
assessed value of the facility shown on the statement; the annual	1346
amount of taxes that would be charged and payable on that value at	1347
the current rate of taxation in effect in the taxing unit; and	1348
that, if approved, the application entitles the facility to	1349
exemption from taxation and the taxing unit may be required to	1350
refund any taxes on the facility accruing after the certificate	1351
becomes effective. The tax commissioner shall issue an amended	1352
statement if, after the original statement is issued, the estimate	1353
of such assessed value increases or decreases by more than ten per	1354
cent of the estimated value shown on the most recently issued	1355
statement or amended statement, and the county auditor shall issue	1356
an amended notice reflecting such change.	1357

The tax commissioner's statement and the county auditor's	1358
notice are issued exclusively for the purpose of notifying taxing	1359
authorities of the potential for a refund of taxes paid on a	1360
facility before a tax exemption certificate is issued. The	1361
statement and notice are not appealable by any person and do not	1362
constitute an assessment that is subject to a petition for	1363
reassessment by the taxpayer. The notice issued by the county	1364
auditor does not constitute a notice required by law to be given	1365
for the purpose of section 5717.02 of the Revised Code.	1366

Sec. 5725.19. Upon the issuance of a tax credit certificate	1367
by the Ohio venture capital authority under section 150.07 of the	1368
Revised Code, a credit may be claimed against the tax imposed on	1369
a domestic insurance company under section 5725.18 of the Revised	1370
Code. The credit shall be claimed in the calendar year specified	1371
in the certificate issued by the authority. If the company	1372
elected a refundable credit under section 150.07 of the Revised	1373
Code, and the amount of the credit shown on the certificate	1374
exceeds the tax otherwise due under section 5725.18 of the Revised	1375
Code, the company may receive a refund equal to seventy-five per	1376
cent of such excess. If the company elected a nonrefundable	1377
credit, the amount of the credit shown on the certificate shall	1378
not exceed the aount of tax otherwise due.	1379

Sec. 5729.08. Upon the issuance of a tax credit certificate	1380
by the Ohio venture capital authority under section 150.07 of the	1381
Revised Code, a credit may be claimed against the tax imposed on	1382
a foreign insurance company under section 5729.03 of the Revised	1383
Code. The credit shall be claimed in the calendar year specified	1384
in the certificate issued by the authority. If the company elected	1385
a refundable credit under section 150.07 of the Revised Code, and	1386
the amount of the credit shown on the certificate exceeds the tax	1387
otherwise due under section 5729.03 of the Revised Code, the	1388
company may receive a refund equal to seventy-five per cent of	1389
such excess. If the company elected a nonrefundable credit, the	1390
amount of the credit shown on the certificate shall not exceed the	1391
amount of tax otherwise due.	1392

Sec. 5733.49. Upon the issuance of a tax credit certificate	1393
by the Ohio venture capital authority under section 150.07 of the	1394
Revised Code, a credit may be claimed against the tax imposed by	1395
section 5733.06 of the Revised Code. The credit shall be claimed	1396
for the tax year specified in the certificate issued by the	1397
authority and in the order required under section 5733.98 of the	1398
Revised Code. If the taxpayer elected a refundable credit under	1399
section 150.07 of the Revised Code, and the amount of the credit	1400
shown on the certificate exceeds the tax otherwise due under	1401
sections 5733.06, 5733.065, and 5733.066 of the Revised Code after	1402
all credits, including the credit allowed under this section, are	1403
deducted in that order, the taxpayer shall receive a refund equal	1404
to seventy-five per cent of that excess. If the taxpayer elected	1405
a nonrefundable credit, the amount of the credit, claimed in that	1406
order, shall not exceed the tax otherwise due under those sections	1407
after all the taxpayer's credits are deducted in that order.	1408

Sec. 5733.98.  (A) To provide a uniform procedure for	1409
calculating the amount of tax imposed by section 5733.06 of the	1410
Revised Code that is due under this chapter, a taxpayer shall	1411
claim any credits to which it is entitled in the following order,	1412
except as otherwise provided in section 5733.058 of the Revised	1413
Code:	1414

(1) The credit for taxes paid by a qualifying pass-through	1415
entity allowed under section 5733.0611 of the Revised Code;	1416

(2) The credit allowed for financial institutions under	1417
section 5733.45 of the Revised Code;	1418

(3) The credit for qualifying affiliated groups under section	1419
5733.068 of the Revised Code;	1420

(4) The subsidiary corporation credit under section 5733.067	1421
of the Revised Code;	1422

(5) The savings and loan assessment credit under section	1423
5733.063 of the Revised Code;	1424

(6) The credit for recycling and litter prevention donations	1425
under section 5733.064 of the Revised Code;	1426

(7) The credit for employers that enter into agreements with	1427
child day-care centers under section 5733.36 of the Revised Code;	1428

(8) The credit for employers that reimburse employee child	1429
day-care expenses under section 5733.38 of the Revised Code;	1430

(9) The credit for maintaining railroad active grade crossing	1431
warning devices under section 5733.43 of the Revised Code;	1432

(10) The credit for purchases of lights and reflectors under	1433
section 5733.44 of the Revised Code;	1434

(11) The job retention credit under division (B) of section	1435
5733.0610 of the Revised Code;	1436

(12) The credit for manufacturing investments under section	1437
5733.061losses on loans made under the Ohio venture capital	1438
program under sections 150.01 to 150.10 of th Revised Code if the	1439
taxpayer elected a nonrefundable credit under section 150.07 of	1440
the Revised Code;	1441

(13) The credit for purchases of new manufacturing machinery	1442
and equipment under section 5733.31 or section 5733.311 of the	1443
Revised Code;	1444

(14) The second credit for purchases of new manufacturing	1445
machinery and equipment under section 5733.33 of the Revised Code;	1446

(15) The job training credit under section 5733.42 of the	1447
Revised Code;	1448

(16) The credit for qualified research expenses under	1449
section 5733.351 of the Revised Code;	1450

(17) The enterprise zone credit under section 5709.66 of the	1451
Revised Code;	1452

(18) The credit for the eligible costs associated with a	1453
voluntary action under section 5733.34 of the Revised Code;	1454

(19) The credit for employers that establish on-site child	1455
day-care under section 5733.37 of the Revised Code;	1456

(20) The ethanol plant investment credit under section	1457
5733.46 of the Revised Code;	1458

(21) The credit for purchases of qualifying grape production	1459
property under section 5733.32 of the Revised Code;	1460

(22) The export sales credit under section 5733.069 of the	1461
Revised Code;	1462

(23) The credit for research and development and technology	1463
transfer investors under section 5733.35 of the Revised Code;	1464

(24) The enterprise zone credits under section 5709.65 of the	1465
Revised Code;	1466

(25) The credit for using Ohio coal under section 5733.39 of	1467
the Revised Code;	1468

(26) The refundable jobs creation credit under division (A)	1469
of section 5733.0610 of the Revised Code;	1470

(27) The refundable credit for tax withheld under division	1471
(B)(2) of section 5747.062 of the Revised Code;	1472

(28) The credit for losses on loans made to the Ohio venture	1473
capital program under sections 150.01 to 150.10 of the Revised	1474
Code if the taxpayer elected a refundable credit under section	1475
150.07 of the Revised Code.	1476

(B) For any credit except the refundable credits enumerated	1477
in divisions (A)(26), (27), and (28) of this section, the amount	1478
of the credit for a tax year shall not exceed the tax due after	1479
allowing for any other credit that precedes it in the order	1480
required under this section. Any excess amount of a particular	1481
credit may be carried forward if authorized under the section	1482
creating that credit.	1483

Sec. 5747.80. Upon the issuance of a tax credit certificate	1484
by the Ohio venture capital authority under section 150.07 of the	1485
Revised Code, a credit may be claimed against the tax imposed by	1486
section 5747.02 of the Revised Code. The credit shall be claimed	1487
for the taxable year specified in the certificate issued by the	1488
authority and in the order required under section 5747.98 of the	1489
Revised Code. If the taxpayer elected a refundable credit under	1490
section 150.07 of the Revised Code, and the amount of the credit	1491
shown on the certificate exceeds the tax otherwise due under	1492
section 5747.02 of the Revised Code after all credits, including	1493
the credit allowed under this section, are deducted in that order,	1494
the taxpayer shall receive a refund equal to seventy-five per cent	1495
of that excess. If the taxpayer elected a nonrefundable credit,	1496
the amount of the credit, claimed in that order, shall not exceed	1497
the tax otherwise due after all the taxpayer's credits are	1498
deducted in that order.	1499

Sec. 5747.98.  (A) To provide a uniform procedure for	1500
calculating the amount of tax due under section 5747.02 of the	1501
Revised Code, a taxpayer shall claim any credits to which the	1502
taxpayer is entitled in the following order:	1503

(1) The retirement income credit under division (B) of	1504
section 5747.055 of the Revised Code;	1505

(2) The senior citizen credit under division (C) of section	1506
5747.05 of the Revised Code;	1507

(3) The lump sum distribution credit under division (D) of	1508
section 5747.05 of the Revised Code;	1509

(4) The dependent care credit under section 5747.054 of the	1510
Revised Code;	1511

(5) The lump sum retirement income credit under division (C)	1512
of section 5747.055 of the Revised Code;	1513

(6) The lump sum retirement income credit under division (D)	1514
of section 5747.055 of the Revised Code;	1515

(7) The lump sum retirement income credit under division (E)	1516
of section 5747.055 of the Revised Code;	1517

(8) The credit for displaced workers who pay for job	1518
training under section 5747.27 of the Revised Code;	1519

(9) The campaign contribution credit under section 5747.29	1520
of the Revised Code;	1521

(10) The twenty-dollar personal exemption credit under	1522
section 5747.022 of the Revised Code;	1523

(11) The joint filing credit under division (G) of section	1524
5747.05 of the Revised Code;	1525

(12) The nonresident credit under division (A) of section	1526
5747.05 of the Revised Code;	1527

(13) The credit for a resident's out-of-state income under	1528
division (B) of section 5747.05 of the Revised Code;	1529

(14) The credit for employers that enter into agreements	1530
with child day-care centers under section 5747.34 of the Revised	1531
Code;	1532

(15) The credit for employers that reimburse employee child	1533
day-care expenses under section 5747.36 of the Revised Code;	1534

(16) The credit for adoption of a minor child under section	1535
5747.37 of the Revised Code;	1536

(17) The credit for purchases of lights and reflectors under	1537
section 5747.38 of the Revised Code;	1538

(18) The job retention credit under division (B) of section	1539
5747.058 of the Revised Code;	1540

(19) The credit for manufacturing investments under section	1541
5747.051 losses on loans made under the Ohio venture capital	1542
program under sections 150.01 to 150.10 of the Revised Code if the	1543
taxpayer elected a nonrefundable credit under section 150.07 of	1544
the Revised Code;	1545

(20) The credit for purchases of new manufacturing machinery	1546
and equipment under section 5747.26 or section 5747.261 of the	1547
Revised Code;	1548

(21) The second credit for purchases of new manufacturing	1549
machinery and equipment and the credit for using Ohio coal under	1550
section 5747.31 of the Revised Code;	1551

(22) The job training credit under section 5747.39 of the	1552
Revised Code;	1553

(23) The enterprise zone credit under section 5709.66 of the	1554
Revised Code;	1555

(24) The credit for the eligible costs associated with a	1556
voluntary action under section 5747.32 of the Revised Code;	1557

(25) The credit for employers that establish on-site child	1558
day-care centers under section 5747.35 of the Revised Code;	1559

(26) The ethanol plant investment credit under section	1560
5747.75 of the Revised Code;	1561

(27) The credit for purchases of qualifying grape production	1562
property under section 5747.28 of the Revised Code;	1563

(28) The export sales credit under section 5747.057 of the	1564
Revised Code;	1565

(29) The credit for research and development and technology	1566
transfer investors under section 5747.33 of the Revised Code;	1567

(30) The enterprise zone credits under section 5709.65 of	1568
the Revised Code;	1569

(31) The refundable jobs creation credit under division (A)	1570
of section 5747.058 of the Revised Code;	1571

(32) The refundable credit for taxes paid by a qualifying	1572
entity granted under section 5747.059 of the Revised Code;	1573

(33) The refundable credits for taxes paid by a qualifying	1574
pass-through entity granted under division (J) of section 5747.08	1575
of the Revised Code;	1576

(34) The refundable credit for tax withheld under division	1577
(B)(1) of section 5747.062 of the Revised Code;	1578

(35) The credit for losses on loans made to the Ohio venture	1579
capital program under sections 150.01 to 150.10 of the Revised	1580
Code if the taxpayer elected a refundable credit under section	1581
150.07 of the Revised Code.	1582

(B) For any credit, except the refundable credits enumerated	1583
in divisions (A)(31) to (35) of this section and the credit	1584
granted under division (I) of section 5747.08 of the Revised Code,	1585
the amount of the credit for a taxable year shall not exceed the	1586
tax due after allowing for any other credit that precedes it in	1587
the order required under this section. Any excess amount of a	1588
particular credit may be carried forward if authorized under the	1589
section creating that credit. Nothing in this chapter shall be	1590
construed to allow a taxpayer to claim, directly or indirectly, a	1591
credit more than once for a taxable year.	1592

Sec. 6111.31.  Appliances, equipment, machinery, and	1593
structures comprising all or a part of an industrial water	1594
pollution control facility as defined in section 6111.01 of the	1595
Revised Code, and installed pursuant to the approval of the	1596
environmental protection agency or any other governmental agency	1597
having authority to approve the installation of industrial or	1598
other water pollution abatement or control facilities, and which	1599
is initially placed in operation, or is initially capable of	1600
operation on or after December 31, 1965, shall be excepted from	1601
personal property taxes, franchise taxes and sales and use taxes,	1602
as provided in this section. Application for an industrial water	1603
pollution control certificate shall be filed with the director of	1604
environmental protection in such manner and in such form as may be	1605
prescribed by regulations adopted and promulgated by the director	1606
and shall contain plans and specifications of the structure or	1607
structures, including all materials to be incorporated therein,	1608
and a descriptive list of all appliances, equipment, and machinery	1609
to be used as an industrial water pollution control facility.	1610
Within thirty days after receiving such an application, the	1611
director shall forward a copy of the application to the tax	1612
commissioner. The director shall promptly determine whether such	1613
application should be allowed or disallowed, in whole or in part,	1614
and shall give notice of such determination by mail to the	1615
applicant, the tax commissioner, and the auditor of the county or	1616
counties in which the structure or items described in the	1617
application will be located.	1618

Within fifteen days after the date of the mailing of such	1619
notice the applicant, the tax commissioner, or such county auditor	1620
may apply in writing for a reconsideration of the director's	1621
determination and request the director to hold a hearing on such	1622
application. Upon receipt of such application for reconsideration	1623
and request for hearing, the director shall set a date for such	1624
hearing and send notice thereof by mail to all persons notified of	1625
the filing of such application. Such hearing shall be held not	1626
less than fifteen nor more than thirty days from the date of the	1627
mailing of the notice thereof.	1628

If no application for reconsideration and request for hearing	1629
is filed within such period of fifteen days, the director's	1630
determination shall be final. If such application and request is	1631
filed, the director, after such hearing, shall finally determine	1632
whether the application for an industrial water pollution control	1633
certificate should be allowed or disallowed, in whole or in part,	1634
and shall send notice thereof by mail to all persons notified of	1635
the application for reconsideration.	1636

If any determination of the director which has become final	1637
contains a finding that any of the structures or items enumerated	1638
in the application for a certificate will be an industrial water	1639
pollution control facility, the director shall issue an industrial	1640
water pollution control certificate to that effect.	1641

The effective date of such certificate shall be the date when	1642
the item or items described therein are acquired or when title to	1643
or possession of such item or items is first transferred to the	1644
applicant or when construction of any structure or structures	1645
enumerated therein begins, whichever is earlier, provided such	1646
application shall not relate to facilities placed in operation or	1647
capable of operation prior to December 31, 1965, and shall remain	1648
in force and effect until revoked or modified as provided by	1649
section 6111.32 or 6111.33 of the Revised Code.	1650

Upon the issuance of a certificate the director shall send,	1651
by certified mail, such certificate to the applicant and a	1652
certified copy thereof to the tax commissioner and to the county	1653
auditor of the county or counties in which any property to which	1654
the certificate relates is located. The county auditor shall file	1655
such certified copy of the certificate of record in histhe	1656
auditor's office.	1657

Sec. 6111.311. As soon as is practicable after receiving a	1658
copy of an application for an industrial water pollution control	1659
certificate from the director of environmental protection under	1660
section 6111.31 of the Revised Code, the tax commissioner shall	1661
provide a copy of the application and of any accompanying	1662
documentation to the county auditor of the county in which the	1663
facility is located. The copy shall be accompanied by a statement	1664
showing an estimate of what the assessed value of the facility	1665
would be, based on the appropriate assessment percentage, if the	1666
facility were to be taxable, and an estimate of the taxes that	1667
would be chargeable against the facility computed on the basis of	1668
the rate of taxation in the taxing district in the year in which	1669
the application is received. The tax commissioner is not required	1670
to provide the copy or statement if, before doing so, the tax	1671
commissioner receives notice of the director's determination	1672
allowing or disallowing the application. Within sixty days after	1673
receiving such a statement, the county auditor shall issue a	1674
notice to the taxing authority of each taxing unit in which the	1675
facility is or is to be located, unless the county auditor has,	1676
within that period, received notice of the director's	1677
determination allowing or disallowing the application. The notice	1678
shall state that an application for an industrial water pollution	1679
control facility has been filed for the facility; the estimated	1680
assessed value of the facility shown on the statement; the annual	1681
amount of taxes that would be charged and payable on that value at	1682
the current rate of taxation in effect in the taxing unit; and	1683
that, if approved, the application entitles the facility to	1684
exemption from taxation and the taxing unit may be required to	1685
refund any taxes on the facility accruing after the certificate	1686
becomes effective. The tax commissioner shall issue an amended	1687
statement if, after the original statement is issued, the estimate	1688
of such assessed value increases or decreases by more than ten per	1689
cent of the estimated value shown on the most recently issued	1690
statement or amended statement, and the county auditor shall issue	1691
an amended notice reflecting such change.	1692

The tax commissioner's statement and the county auditor's	1693
notice are issued exclusively for the purpose of notifying taxing	1694
authorities of the potential for a refund of taxes paid on an	1695
industrial water pollution control facility before a pollution	1696
control certificate is issued. The statement and notice are not	1697
appealable by any person and do not constitute an assessment that	1698
is subject to a petition for reassessment by the taxpayer. The	1699
notice issued by the county auditor does not constitute a notice	1700
required by law to be given for the purpose of section 5717.02 of	1701
the Revised Code.	1702

Section 2.  That existing sections 122.171, 149.43, 718.01,	1703
718.14, 5703.21, 5733.98, 5747.98, and 6111.31 of the Revised Code	1704
are hereby repealed.	1705

Section 3. The enactment by this act of sections 5709.211 and	1706
6111.311 of the Revised Code applies to applications for air and	1707
noise pollution control certificates and to applications for	1708
industrial water pollution control certificates filed on or after	1709
the effective date of this act.	1710

The enactment of those sections also applies to such	1711
applications filed before the effective date of this act if such a	1712
certificate has not been issued before January 1, 2004. With	1713
respect to such applications, the Tax Commissioner shall issue the	1714
statements required by those sections as soon as is practicable	1715
after that effective date, and county auditors shall issue the	1716
notices required by those sections within sixty days after such a	1717
statement is received by the county auditor.	1718

Section 4. (A) As used in this section, "qualifying	1719
taxpayer" means a person satisfying all of the following:	1720

(1) The person disputes the valuation or assessment of one	1721
or more parcels of real property classified according to use as	1722
commercial real property;	1723

(2) The person filed an original complaint against the	1724
valuation or assessment of such property under section 5715.13 or	1725
5715.19 of the Revised Code that was dismissed by a county board	1726
of revision, the Board of Tax Appeals, or a court for lack of	1727
jurisdictional validity upon finding the filing of the complaint	1728
was the unauthorized practice of law;	1729

(3) The person has not paid in full the taxes, assessments,	1730
or charges due on the valuation or assessment of such property for	1731
the tax years to which those complaints relate.	1732

(B) A qualifying taxpayer or a qualifying taxpayer's	1733
attorney may file, with the Board of Tax Appeals, a complaint with	1734
respect to property described in division (A) of this section and	1735
with respect to any tax years to which the original complaints	1736
related and occurring within one sexennial reappraisal period	1737
within the ten years preceding the effective date of this section.	1738
The complaint shall be filed on or with any forms, prescribed by	1739
the Tax Commissioner under section 5715.30 of the Revised Code or	1740
otherwise, for the filing of a complaint under section 5715.13 or	1741
5715.19 of the Revised Code, and such a form shall constitute a	1742
proper form for filing a complaint with the Board of Tax Appeals	1743
under this section if the filing otherwise complies with this	1744
section. At the same time as the complaint is filed, the	1745
qualifying taxpayer shall file a notice of the complaint with the	1746
county board of revision with which the original complaint was	1747
filed. The complaint and the notice of complaint shall be filed	1748
not later than six months after the effective date of this	1749
section. The board of revision, upon receiving notice of the	1750
complaint, shall notify, by certified mail, any person that was a	1751
party to any proceeding on the original complaint conducted by the	1752
board of revision, and file proof of such notice with the Board of	1753
Tax Appeals. Notwithstanding sections 5703.02, 5715.13, 5715.19,	1754
and 5717.01 of the Revised Code, the Board of Tax Appeals is	1755
hereby vested with original jurisdiction to hear and determine	1756
such complaints.	1757

Upon the proper and timely filing of a complaint under this	1758
section, the Board of Tax Appeals shall proceed as otherwise	1759
prescribed in section 5717.01 of the Revised Code to hear the	1760
complaint on the basis of the evidence offered to the Board of Tax	1761
Appeals, or to cause its examiners to hear the complaint on such	1762
evidence and report their findings to the Board. The Board of Tax	1763
Appeals shall certify its action to the county auditor.	1764
Notwithstanding section 5715.22 of the Revised Code, if the Board	1765
of Tax Appeals finds that the amount of taxes, assessments, and	1766
charges paid for the tax years to which the complaint relates	1767
exceeds the amount due for those years, the county auditor shall	1768
not draw a warrant for the refund of the overpayment or any	1769
portion thereof, and shall not credit the overpayment or any	1770
portion thereof against the amount of any taxes, assessments, or	1771
charges that may be due in the future from the qualifying	1772
taxpayer. The county auditor shall adjust the amount of taxes,	1773
assessments, and charges shown to be due on the current tax list	1774
from the years to which the complaint relates in accordance with	1775
the Board's finding, and shall certify such adjustment to the	1776
county treasurer, who shall adjust the tax duplicate accordingly.	1777
The finding of the Board of Tax Appeals under this section may be	1778
appealed by the parties and in the manner prescribed under section	1779
5717.04 of the Revised Code for the institution of appeals from	1780
decisions of the Board of Tax Appeals determining appeals from	1781
decisions of county boards of revision.	1782

(C) It is the intent of the General Assembly to exercise its	1783
authority under Ohio Constitution, Article II, Section 28, to pass	1784
a general law authorizing courts to carry into effect, upon such	1785
terms as are just and equitable, the manifest intention of	1786
parties, and officers, by curing omissions, defects, and errors in	1787
instruments and proceedings arising out of their want of	1788
conformity with the laws of this state. This section is remedial	1789
legislation and does not affect pending or past complaints where	1790
jurisdiction over a complainant absolutely vested with a county	1791
board of revision. It is the intent of the General Assembly that	1792
if a board of revision never had jurisdiction over a complainant	1793
because the complainant's previous complaint failed to vest	1794
jurisdictional validity because of an unauthorized practice of law	1795
violation, then no rights have vested with respect to the	1796
determination of the total valuation or assessment of a commercial	1797
parcel owned by the complainant, and, as such, there is not a	1798
reasonable expectation of finality with regard to said	1799
determination. Further, it is the intent of the General Assembly	1800
that this section merely modifies the existing right of a property	1801
owner, granted under sections 5715.13 and 5715.19 of the Revised	1802
Code, to file a complaint against a determination of the total	1803
valuation or assessment of a commercial parcel owned by the	1804
complainant, by expanding the statute of limitations under which a	1805
complaint can be filed.	1806

Section 5. Section 4 of this act is hereby repealed on the	1807
first day of the seventh month beginning after the effective date	1808
of this section.	1809

Section 6.  Instead of the $8,459,014 amount applying to	1810
Youngstown State University in Section 19.47, Debt Service Formula	1811
Allocation, of H.B. 675 of the 124th General Assembly, $6,959,014	1812
applies to Youngstown State University for purposes of that	1813
section, notwithstanding the order in which H.B. 675 and this act	1814
are enacted.	1815