REPRESENTATIVES Olman, Widowfield, Niehaus, Carano, Brown, Latta, Gilb, DeBose

To amend sections 149.43, 718.01, 718.14, 5703.21,

1

5733.98, 5747.98, and 6111.31 and to enact sections

2

150.01, 150.02, 150.03, 150.04, 150.05, 150.06,

3

150.07, 150.08, 150.09, 150.10, 5709.211, 5725.19,

4

5729.08, 5733.49, 5747.80, and 6111.311 of the

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Revised Code to create the Ohio Venture Capital

6

Program to provide for the direction of moneys of a

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private investment fund into venture capital

8

investments that are secured by program revenues or

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transferable, nonrefundable tax credits; to

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prohibit municipal corporations from taxing S

11

corporation shareholders' distributive shares of

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net profits; to require state and county tax

13

officials to notify local taxing authorities of

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pending pollution control tax exemption

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applications; and to repeal Section 4 of this act

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six months after its effective date.

17

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

Section 1.  That sections 149.43, 718.01, 718.14, 5703.21,	18
5733.98, 5747.98, and 6111.31 be amended and sections 150.01,	19
150.02, 150.03, 150.04, 150.05, 150.06, 150.07, 150.08, 150.09,	20
150.10, 5709.211, 5725.19, 5729.08, 5733.49, 5747.80, and 6111.311	21
of the Revised Code be enacted to read as follows:	22

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

23

(1) "Public record" means records kept by any public	24
office, including, but not limited to, state, county, city,	25
village, township, and school district units, and records	26
pertaining to the delivery of educational services by an	27
alternative school in Ohio kept by a nonprofit or for profit	28
entity operating such alternative school pursuant to section	29
3313.533 of the Revised Code. "Public record" does not mean any of	30
the following:	31

(a) Medical records;

32

(b) Records pertaining to probation and parole proceedings;

33

(c) Records pertaining to actions under section 2151.85 and	34
division (C) of section 2919.121 of the Revised Code and to	35
appeals of actions arising under those sections;	36

(d) Records pertaining to adoption proceedings, including	37
the contents of an adoption file maintained by the department of	38
health under section 3705.12 of the Revised Code;	39

(e) Information in a record contained in the putative father	40
registry established by section 3107.062 of the Revised Code,	41
regardless of whether the information is held by the department of	42
job and family services or, pursuant to section 3111.69 of the	43
Revised Code, the office of child support in the department or a	44
child support enforcement agency;	45

(f) Records listed in division (A) of section 3107.42 of the	46
Revised Code or specified in division (A) of section 3107.52 of	47
the Revised Code;	48

(g) Trial preparation records;

49

(h) Confidential law enforcement investigatory records;

50

(i) Records containing information that is confidential	51
under section 2317.023 or 4112.05 of the Revised Code;	52

(j) DNA records stored in the DNA database pursuant to	53
section 109.573 of the Revised Code;	54

(k) Inmate records released by the department of	55
rehabilitation and correction to the department of youth services	56
or a court of record pursuant to division (E) of section 5120.21	57
of the Revised Code;	58

(l) Records maintained by the department of youth services	59
pertaining to children in its custody released by the department	60
of youth services to the department of rehabilitation and	61
correction pursuant to section 5139.05 of the Revised Code;	62

(m) Intellectual property records;

63

(n) Donor profile records;

64

(o) Records maintained by the department of job and family	65
services pursuant to section 3121.894 of the Revised Code;	66

(p) Peace officer residential and familial information;

67

(q) In the case of a county hospital operated pursuant to	68
Chapter 339. of the Revised Code, information that constitutes a	69
trade secret, as defined in section 1333.61 of the Revised Code;	70

(r) Information pertaining to the recreational activities of	71
a person under the age of eighteen;	72

(s) Records provided to, statements made by review board	73
members during meetings of, and all work products of a child	74
fatality review board acting under sections 307.621 to 307.629 of	75
the Revised Code, other than the report prepared pursuant to	76
section 307.626 of the Revised Code;	77

(t) Records provided to and statements made by the executive	78
director of a public children services agency or a prosecuting	79
attorney acting pursuant to section 5153.171 of the Revised Code	80
other than the information released under that section;	81

(u) Test materials, examinations, or evaluation tools used	82
in an examination for licensure as a nursing home administrator	83
that the board of examiners of nursing home administrators	84
administers under section 4751.04 of the Revised Code or contracts	85
under that section with a private or government entity to	86
administer;	87

(v) Records the release of which is prohibited by state or	88
federal law;	89

(w) Proprietary information of or relating to any person	90
that is submitted to or compiled by the Ohio venture capital	91
authority created under section 150.01 of the Revised Code.	92

(2) "Confidential law enforcement investigatory record"	93
means any record that pertains to a law enforcement matter of a	94
criminal, quasi-criminal, civil, or administrative nature, but	95
only to the extent that the release of the record would create a	96
high probability of disclosure of any of the following:	97

(a) The identity of a suspect who has not been charged with	98
the offense to which the record pertains, or of an information	99
source or witness to whom confidentiality has been reasonably	100
promised;	101

(b) Information provided by an information source or witness	102
to whom confidentiality has been reasonably promised, which	103
information would reasonably tend to disclose the source's or	104
witness's identity;	105

(c) Specific confidential investigatory techniques or	106
procedures or specific investigatory work product;	107

(d) Information that would endanger the life or physical	108
safety of law enforcement personnel, a crime victim, a witness, or	109
a confidential information source.	110

(3) "Medical record" means any document or combination of	111
documents, except births, deaths, and the fact of admission to or	112
discharge from a hospital, that pertains to the medical history,	113
diagnosis, prognosis, or medical condition of a patient and that	114
is generated and maintained in the process of medical treatment.	115

(4) "Trial preparation record" means any record that	116
contains information that is specifically compiled in reasonable	117
anticipation of, or in defense of, a civil or criminal action or	118
proceeding, including the independent thought processes and	119
personal trial preparation of an attorney.	120

(5) "Intellectual property record" means a record, other	121
than a financial or administrative record, that is produced or	122
collected by or for faculty or staff of a state institution of	123
higher learning in the conduct of or as a result of study or	124
research on an educational, commercial, scientific, artistic,	125
technical, or scholarly issue, regardless of whether the study or	126
research was sponsored by the institution alone or in conjunction	127
with a governmental body or private concern, and that has not been	128
publicly released, published, or patented.	129

(6) "Donor profile record" means all records about donors or	130
potential donors to a public institution of higher education	131
except the names and reported addresses of the actual donors and	132
the date, amount, and conditions of the actual donation.	133

(7) "Peace officer residential and familial information"	134
means either of the following:	135

(a) Any information maintained in a personnel record of a	136
peace officer that discloses any of the following:	137

(i) The address of the actual personal residence of a peace	138
officer, except for the state or political subdivision in which	139
the peace officer resides;	140

(ii) Information compiled from referral to or participation	141
in an employee assistance program;	142

(iii) The social security number, the residential telephone	143
number, any bank account, debit card, charge card, or credit card	144
number, or the emergency telephone number of, or any medical	145
information pertaining to, a peace officer;	146

(iv) The name of any beneficiary of employment benefits,	147
including, but not limited to, life insurance benefits, provided	148
to a peace officer by the peace officer's employer;	149

(v) The identity and amount of any charitable or employment	150
benefit deduction made by the peace officer's employer from the	151
peace officer's compensation unless the amount of the deduction is	152
required by state or federal law;	153

(vi) The name, the residential address, the name of the	154
employer, the address of the employer, the social security number,	155
the residential telephone number, any bank account, debit card,	156
charge card, or credit card number, or the emergency telephone	157
number of the spouse, a former spouse, or any child of a peace	158
officer.	159

(b) Any record that identifies a person's occupation as a	160
peace officer other than statements required to include the	161
disclosure of that fact under the campaign finance law.	162

As used in divisions (A)(7) and (B)(5) of this section,	163
"peace officer" has the same meaning as in section 109.71 of the	164
Revised Code and also includes the superintendent and troopers of	165
the state highway patrol; it does not include the sheriff of a	166
county or a supervisory employee who, in the absence of the	167
sheriff, is authorized to stand in for, exercise the authority of,	168
and perform the duties of the sheriff.	169

(8) "Information pertaining to the recreational activities	170
of a person under the age of eighteen" means information that is	171
kept in the ordinary course of business by a public office, that	172
pertains to the recreational activities of a person under the age	173
of eighteen years, and that discloses any of the following:	174

(a) The address or telephone number of a person under the	175
age of eighteen or the address or telephone number of that	176
person's parent, guardian, custodian, or emergency contact person;	177

(b) The social security number, birth date, or photographic	178
image of a person under the age of eighteen;	179

(c) Any medical record, history, or information pertaining	180
to a person under the age of eighteen;	181

(d) Any additional information sought or required about a	182
person under the age of eighteen for the purpose of allowing that	183
person to participate in any recreational activity conducted or	184
sponsored by a public office or to use or obtain admission	185
privileges to any recreational facility owned or operated by a	186
public office.	187

(B)(1) Subject to division (B)(4) of this section, all	188
public records shall be promptly prepared and made available for	189
inspection to any person at all reasonable times during regular	190
business hours. Subject to division (B)(4) of this section, upon	191
request, a public office or person responsible for public records	192
shall make copies available at cost, within a reasonable period of	193
time. In order to facilitate broader access to public records,	194
public offices shall maintain public records in a manner that they	195
can be made available for inspection in accordance with this	196
division.	197

(2) If any person chooses to obtain a copy of a public	198
record in accordance with division (B)(1) of this section, the	199
public office or person responsible for the public record shall	200
permit that person to choose to have the public record duplicated	201
upon paper, upon the same medium upon which the public office or	202
person responsible for the public record keeps it, or upon any	203
other medium upon which the public office or person responsible	204
for the public record determines that it reasonably can be	205
duplicated as an integral part of the normal operations of the	206
public office or person responsible for the public record. When	207
the person seeking the copy makes a choice under this division,	208
the public office or person responsible for the public record	209
shall provide a copy of it in accordance with the choice made by	210
the person seeking the copy.	211

(3) Upon a request made in accordance with division (B)(1)	212
of this section, a public office or person responsible for public	213
records shall transmit a copy of a public record to any person by	214
United States mail within a reasonable period of time after	215
receiving the request for the copy. The public office or person	216
responsible for the public record may require the person making	217
the request to pay in advance the cost of postage and other	218
supplies used in the mailing.	219

Any public office may adopt a policy and procedures that it	220
will follow in transmitting, within a reasonable period of time	221
after receiving a request, copies of public records by United	222
States mail pursuant to this division. A public office that	223
adopts a policy and procedures under this division shall comply	224
with them in performing its duties under this division.	225

In any policy and procedures adopted under this division, a	226
public office may limit the number of records requested by a	227
person that the office will transmit by United States mail to ten	228
per month, unless the person certifies to the office in writing	229
that the person does not intend to use or forward the requested	230
records, or the information contained in them, for commercial	231
purposes. For purposes of this division, "commercial" shall be	232
narrowly construed and does not include reporting or gathering	233
news, reporting or gathering information to assist citizen	234
oversight or understanding of the operation or activities of	235
government, or nonprofit educational research.	236

(4) A public office or person responsible for public records	237
is not required to permit a person who is incarcerated pursuant to	238
a criminal conviction or a juvenile adjudication to inspect or to	239
obtain a copy of any public record concerning a criminal	240
investigation or prosecution or concerning what would be a	241
criminal investigation or prosecution if the subject of the	242
investigation or prosecution were an adult, unless the request to	243
inspect or to obtain a copy of the record is for the purpose of	244
acquiring information that is subject to release as a public	245
record under this section and the judge who imposed the sentence	246
or made the adjudication with respect to the person, or the	247
judge's successor in office, finds that the information sought in	248
the public record is necessary to support what appears to be a	249
justiciable claim of the person.	250

(5) Upon written request made and signed by a journalist on	251
or after December 16, 1999, a public office, or person responsible	252
for public records, having custody of the records of the agency	253
employing a specified peace officer shall disclose to the	254
journalist the address of the actual personal residence of the	255
peace officer and, if the peace officer's spouse, former spouse,	256
or child is employed by a public office, the name and address of	257
the employer of the peace officer's spouse, former spouse, or	258
child. The request shall include the journalist's name and title	259
and the name and address of the journalist's employer and shall	260
state that disclosure of the information sought would be in the	261
public interest.	262

As used in division (B)(5) of this section, "journalist"	263
means a person engaged in, connected with, or employed by any news	264
medium, including a newspaper, magazine, press association, news	265
agency, or wire service, a radio or television station, or a	266
similar medium, for the purpose of gathering, processing,	267
transmitting, compiling, editing, or disseminating information for	268
the general public.	269

(C) If a person allegedly is aggrieved by the failure of a	270
public office to promptly prepare a public record and to make it	271
available to the person for inspection in accordance with division	272
(B) of this section, or if a person who has requested a copy of a	273
public record allegedly is aggrieved by the failure of a public	274
office or the person responsible for the public record to make a	275
copy available to the person allegedly aggrieved in accordance	276
with division (B) of this section, the person allegedly aggrieved	277
may commence a mandamus action to obtain a judgment that orders	278
the public office or the person responsible for the public record	279
to comply with division (B) of this section and that awards	280
reasonable attorney's fees to the person that instituted the	281
mandamus action. The mandamus action may be commenced in the	282
court of common pleas of the county in which division (B) of this	283
section allegedly was not complied with, in the supreme court	284
pursuant to its original jurisdiction under Section 2 of Article	285
IV, Ohio Constitution, or in the court of appeals for the	286
appellate district in which division (B) of this section allegedly	287
was not complied with pursuant to its original jurisdiction under	288
Section 3 of Article IV, Ohio Constitution.	289

(D) Chapter 1347. of the Revised Code does not limit the	290
provisions of this section.	291

(E)(1) The bureau of motor vehicles may adopt rules pursuant	292
to Chapter 119. of the Revised Code to reasonably limit the number	293
of bulk commercial special extraction requests made by a person	294
for the same records or for updated records during a calendar	295
year. The rules may include provisions for charges to be made for	296
bulk commercial special extraction requests for the actual cost of	297
the bureau, plus special extraction costs, plus ten per cent. The	298
bureau may charge for expenses for redacting information, the	299
release of which is prohibited by law.	300

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

301

(a) "Actual cost" means the cost of depleted supplies,	302
records storage media costs, actual mailing and alternative	303
delivery costs, or other transmitting costs, and any direct	304
equipment operating and maintenance costs, including actual costs	305
paid to private contractors for copying services.	306

(b) "Bulk commercial special extraction request" means a	307
request for copies of a record for information in a format other	308
than the format already available, or information that cannot be	309
extracted without examination of all items in a records series,	310
class of records, or data base by a person who intends to use or	311
forward the copies for surveys, marketing, solicitation, or resale	312
for commercial purposes. "Bulk commercial special extraction	313
request" does not include a request by a person who gives	314
assurance to the bureau that the person making the request does	315
not intend to use or forward the requested copies for surveys,	316
marketing, solicitation, or resale for commercial purposes.	317

(c) "Commercial" means profit-seeking production, buying, or	318
selling of any good, service, or other product.	319

(d) "Special extraction costs" means the cost of the time	320
spent by the lowest paid employee competent to perform the task,	321
the actual amount paid to outside private contractors employed by	322
the bureau, or the actual cost incurred to create computer	323
programs to make the special extraction. "Special extraction	324
costs" include any charges paid to a public agency for computer or	325
records services.	326

(3) For purposes of divisions (E)(1) and (2) of this	327
section, "commercial surveys, marketing, solicitation, or resale"	328
shall be narrowly construed and does not include reporting or	329
gathering news, reporting or gathering information to assist	330
citizen oversight or understanding of the operation or activities	331
of government, or nonprofit educational research.	332

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

333

(1) "Authority" means the Ohio venture capital authority	334
created under section 150.02 of the Revised Code.	335

(2) "Lender" means any person that lends money to the	336
program fund as provided in this chapter.	337

(3) "Loss" means a loss incurred with respect to a lender's	338
loan to the program fund. Such a loss is incurred only if and to	339
the extent a program administrator fails to satisfy its	340
obligations to the lender to make timely payments of principal or	341
interest as provided in the loan agreement between the lender and	342
the program administrator. "Loss" does not include either of the	343
following:	344

(a) Any loss incurred by the program fund, including a loss	345
attributable to any investment made by a program administrator;	346

(b) Any loss of the capital required to be provided by a	347
program administrator, or income accruing to that capital, under	348
the agreement entered into under division (B) of section 150.05 of	349
the Revised Code.	350

(4) "Ohio-based business enterprise" means a person that is	351
engaged in business, that employs at least one individual on a	352
full-time or part-time basis at a place of business in this state,	353
including a person engaged in business if that person is a	354
self-employed individual, and that is in the seed or early stage	355
of business development requiring initial funding or is an	356
established business enterprise developing new methods or	357
technologies.	358

(5) "Ohio-based venture capital fund" means a venture	359
capital fund having its principal office in this state, where the	360
majority of the fund's staff are employed and where at least one	361
investment professional is employed who has at least five years of	362
experience in venture capital investment.	363

(6) "Program fund" means the fund created under section	364
150.03 of the Revised Code.	365

(B) The general assembly declares that its purpose in	366
enacting Chapter 150. of the Revised Code is to increase the	367
amount of private investment capital available in this state for	368
enterprises in the seed or early stages of business development	369
and requiring initial funding, as well as established business	370
enterprises developing new methods or technologies, thereby	371
increasing employment, creating additional wealth, and otherwise	372
benefiting the economic welfare of the people of this state.	373
Accordingly, it is the intention of the general assembly that the	374
Ohio venture capital authority focus its investment policy	375
principally on venture capital funds investing in such	376
enterprises.	377

Sec. 150.02. (A) There is hereby created the Ohio venture	378
capital authority, which shall exercise the powers and perform the	379
duties prescribed by this chapter. The exercise by the authority	380
of its powers and duties is hereby declared to be an essential	381
state governmental function. The authority is subject to all laws	382
generally applicable to state agencies and public officials,	383
including, but not limited to, Chapter 119. and sections 121.22	384
and 149.43 of the Revised Code, to the extent those laws do not	385
conflict with this chapter.	386

(B) The authority shall consist of nine members. Seven of	387
the members shall be appointed by the governor, with the advice	388
and consent of the senate, from among the general public. All	389
appointed members shall have experience in the field of banking,	390
investments, commercial law, or industry relevant to the purpose	391
of the Ohio venture capital program as stated in section 150.01 of	392
the Revised Code. The director of development and tax	393
commissioner or their designees shall be ex officio, nonvoting	394
members.	395

Initial gubernatorial appointees to the authority shall serve	396
staggered terms, with one term expiring on January 31, 2004, two	397
terms expiring on January 31, 2005, two terms expiring on January	398
31, 2006, and two terms expiring on January 31, 2007. Thereafter,	399
terms of office for all appointees shall be for four years, with	400
each term ending on the same day of the same month as did the term	401
that it succeeds. A vacancy on the authority shall be filled in	402
the same manner as the original appointment, except that a person	403
appointed to fill a vacancy shall be appointed to the remainder of	404
the unexpired term. Any appointed member of the authority is	405
eligible for reappointment.	406

A member of the authority may be removed by the member's	407
appointing authority for misfeasance, malfeasance, willful	408
neglect of duty, or other cause, after notice and a public	409
hearing, unless the notice and hearing are waived in writing by	410
the member.	411

(C) Members of the authority shall serve without	412
compensation, but shall receive their reasonable and necessary	413
expenses incurred in the conduct of authority business. The	414
governor shall designate a member of the authority to serve as	415
chairperson. A majority of the voting members of the authority	416
constitutes a quorum, and the affirmative vote of a majority of	417
the voting members present is necessary for any action taken by	418
the authority. A vacancy in the voting membership of the authority	419
does not impair the right of a quorum to exercise all rights and	420
perform all duties of the authority.	421

(D) The department of development shall provide the	422
authority with office space and such technical assistance as the	423
authority requires.	424

Sec. 150.03. Within ninety days after the effective date of	425
this section, the authority shall establish, and subsequently may	426
modify as it considers necessary, a written investment policy	427
governing the investment of money from the program fund, which is	428
hereby created. The program fund shall consist of the proceeds of	429
loans acquired by a program administrator. The authority is	430
subject to Chapter 119. of the Revised Code with respect to the	431
establishment or modification of the policy. The policy shall	432
meet all the following requirements:	433

(A) It is consistent with the purpose of the program stated	434
in section 150.01 of the Revised Code.	435

(B) Subject to divisions (C) and (D) of this section, it	436
permits the investment of money from the program fund in private,	437
for-profit venture capital funds, including funds of funds, that	438
invest in enterprises in the seed or early stage of business	439
development or established business enterprises developing new	440
methods or technologies, and that demonstrate potential to	441
generate high levels of successful investment performance.	442

(C) It specifies that a program administrator or fund	443
manager employed by the program administrator shall invest not	444
less than seventy-five per cent of program fund money under its	445
investment authority in Ohio-based venture capital funds.	446

(D) It specifies that a program administrator or fund	447
manager employed by the program administrator shall not invest	448
money from the program fund in a venture capital fund to the	449
extent that the total amount of program fund money invested in the	450
venture capital fund or any other venture capital fund under	451
common management exceeds the lesser of the following:	452

(1) Ten million dollars;

453

(2)(a) In the case of an Ohio-based venture capital fund,	454
fifty per cent of the total amount of capital committed to the	455
fund from all sources, after accounting for capital committed from	456
the program fund;	457

(b) In the case of any other venture capital fund, twenty	458
per cent of the total amount of capital committed to the fund from	459
all sources, after accounting for capital committed from the	460
program fund.	461

(E) It specifies that a program administrator or fund	462
manager employed by the program administrator shall not commit	463
capital from the program fund to a venture capital fund until the	464
venture capital fund receives commitment of at least the same	465
amount from other investors in the fund.	466

(F) It specifies the general conditions a private, for-profit	467
investment fund must meet to be selected as a program	468
administrator under section 150.05 of the Revised Code, including,	469
as a significant selection standard, direct experience managing	470
external or nonproprietary capital in private equity fund of funds	471
formats.	472

(G) It specifies the criteria the authority must consider	473
when making a determination under division (B)(1) of section	474
150.04 of the Revised Code.	475

(H) It includes investment standards and general limitations	476
on allowable investments that the authority considers reasonable	477
and necessary to achieve the purposes of this chapter as stated in	478
division (B) of section 150.01 of the Revised Code, minimize the	479
need for the authority to grant tax credits under section 150.07	480
of the Revised Code, ensure compliance of the program	481
administrators with all applicable laws of this state and the	482
United States, and ensure the safety and soundness of investments	483
of money from the program fund.	484

(I) It prohibits the investment of money from the program	485
fund directly in persons other than venture capital funds, except	486
for temporary investment in investment grade debt securities or	487
temporary deposit in interest-bearing accounts or funds pending	488
permanent investment in venture capital funds.	489

(J) It encourages the investment of program fund money in	490
venture capital funds that invest their capital primarily in	491
Ohio-based business enterprises.	492

Sec. 150.04. (A) The investment policy established or	493
modified under section 150.03 of the Revised Code shall specify	494
the terms and conditions under which the authority may grant tax	495
credits under section 150.07 of the Revised Code, subject to that	496
section and division (B) of this section, to provide security	497
against lenders' losses.	498

(B) Nothing in this chapter authorizes the providing of	499
security against losses on any bases other than the following:	500

(1) The application first of moneys of the Ohio venture	501
capital fund, created under section 150.08 of the Revised Code,	502
that the authority, under the criteria in its investment policy,	503
determines may be expended without adversely affecting the ability	504
of the authority to continue fulfilling the purpose of this	505
chapter as stated in section 150.01 of the Revised Code; and then	506

(2) The granting of tax credits pursuant to section 150.07 of	507
the Revised Code, but only to the extent moneys under division	508
(B)(1) of this section are insufficient.	509

Sec. 150.05.  (A) The authority shall select, as program	510
administrators, not more than two private, for-profit investment	511
funds to acquire loans for the program fund and to invest money in	512
the program fund as prescribed in the investment policy	513
established or modified by the authority in accordance with	514
sections 150.03 and 150.04 of the Revised Code. To be eligible	515
for selection, an investment fund must be incorporated or	516
organized under Chapter 1701., 1705., 1775., 1782., or 1783. of	517
the Revised Code, must have an established business presence in	518
this state, and must be capitalized in accordance with any state	519
and federal laws applicable to the issuance or sale of securities.	520

The authority shall select program administrators only after	521
soliciting and evaluating requests for proposals as prescribed in	522
this section. The authority shall publish a notice of a request	523
for proposals in newspapers of general circulation in this state	524
once each week for two consecutive weeks before a date specified	525
by the authority as the date on which it will begin accepting	526
proposals. The notices shall contain a general description of the	527
subject of the proposed agreement and the location where the	528
request for proposals may be obtained. The request for proposals	529
shall include all the following:	530

(1) Instructions and information to respondents concerning	531
the submission of proposals, including the name and address of the	532
office where proposals are to be submitted;	533

(2) Instructions regarding the manner in which respondents	534
may communicate with the authority, including the names, titles,	535
and telephone numbers of the individuals to whom such	536
communications shall be directed;	537

(3) Description of the performance criteria that will be	538
used to evaluate whether a respondent selected by the authority is	539
satisfying the authority's investment policy;	540

(4) Description of the factors and criteria to be considered	541
in evaluating respondents' proposals, the relative importance of	542
each factor or criterion, and description of the authority's	543
evaluation procedure;	544

(5) Description of any documents that may be incorporated by	545
reference into the request for proposals, provided that the	546
request specifies where such documents may be obtained and such	547
documents are readily available to all interested parties.	548

After the date specified for receiving proposals, the	549
authority shall evaluate submitted proposals. The authority may	550
discuss a respondent's proposal with that respondent to clarify or	551
revise a proposal or the terms of the agreement.	552

The authority shall choose for review proposals from at least	553
three respondents the authority considers qualified to operate the	554
program in the best interests of the investment policy adopted by	555
the authority. If three or fewer proposals are submitted, the	556
authority shall review each proposal. The authority may cancel a	557
request for proposals at any time before entering into an	558
agreement with a respondent. The authority shall provide	559
respondents fair and equal opportunity for such discussions. The	560
authority may terminate discussions with any respondent upon	561
written notice to the respondent.	562

(B) After reviewing the chosen proposals, the authority may	563
select not more than two such respondents and enter into a written	564
agreement with each of the selected respondents, provided that at	565
no time shall there be agreements with more than two persons.	566

The agreement shall do all of the following:

567

(1) Specify that borrowing and investing by the program	568
administrator will be budgeted to guarantee that no tax credits	569
will be granted during the first four years of the Ohio venture	570
capital program;	571

(2) Require investment by the program administrator or the	572
fund manager employed by the program administrator to be in	573
compliance with the investment policy established or modified in	574
accordance with sections 150.03 and 150.04 of the Revised Code	575
that is in effect at the time the investment is made, and prohibit	576
the program administrator or fund manager from engaging in any	577
investment activities other than activities to carry out that	578
policy;	579

(3) Require periodic financial reporting by the program	580
administrator to the authority, which reporting shall include an	581
annual audit by an independent auditor and such other financial	582
reporting as is specified in the agreement or otherwise required	583
by the authority for the purpose of ensuring that the program	584
administrator is carrying out the investment policy;	585

(4) Specify any like standards or general limitations in	586
addition to or in furtherance of investment standards or	587
limitations that apply pursuant to division (H) of section 150.03	588
of the Revised Code;	589

(5) Require payment to the authority by the program	590
administrator of a percentage, not less than ninety per cent, of	591
the amount by which program fund revenues exceed the total of the	592
amounts required to make payments of principal or interest to	593
lenders and to cover the program administrator's pro rata share of	594
such excess, as required under division (B)(9) of this section;	595

(6) Specify the procedures by which the program administrator	596
shall certify immediately to the authority the necessity for the	597
authority to issue tax credit certificates pursuant to contracts	598
entered into under section 150.07 of the Revised Code;	599

(7) Specify any general limitations regarding the employment	600
of a fund manager by the program administrator, in addition to an	601
express limitation that the fund manager be a person with	602
demonstrated, substantial, successful experience in the design and	603
management of seed and venture capital investment programs and in	604
capital formation. The fund manager may be, but need not be, an	605
equity owner or affiliate of the program administrator.	606

(8) Specify the terms and conditions under which the	607
authority or the program administrator may terminate the	608
agreement, including in the circumstance that the program	609
administrator or fund manager violates the investment policy, or	610
under which the authority may cease granting additional tax	611
credits under this chapter;	612

(9) Require the program administrator to provide capital to	613
the program fund equal to at least one per cent of the amount of	614
outstanding loans by lenders to the program fund at any time. Such	615
capital shall be placed at the same risk as the proceeds from such	616
loans. The program administrator shall receive a pro rata share	617
of the net income, including net loss, from the investment of	618
money from the program fund, but is not entitled to the security	619
against losses provided under section 150.04 of the Revised Code.	620

Sec. 150.06.  (A) The authority is not an agency as defined	621
in section 101.82 of the Revised Code for purposes of divisions	622
(A) and (B) of section 101.83 of the Revised Code.	623

(B) The selection of a program administrator and the entering	624
into an agreement under section 150.05 of the Revised Code do	625
not constitute a purchase of services under Chapter 125. of the	626
Revised Code.	627

(C) Notwithstanding section 121.22 of the Revised Code, the	628
authority may hold an executive session for either of the	629
following purposes, but only after a majority of a quorum of the	630
authority determines, by a roll call vote, to hold the session,	631
and only at a regular or special meeting:	632

(1) Presenting, reviewing, or discussing proprietary	633
information relating to any person unless that person has	634
consented in writing to disclosure of such information by the	635
authority;	636

(2) Preparing for, conducting, or reviewing negotiating	637
sessions with any private, for-profit investment fund for the	638
purpose of selecting a program administrator and entering into an	639
agreement under section 150.05 of the Revised Code.	640

Sec. 150.07.  (A) For the purpose stated in section 150.01	641
of the Revised Code, the authority may authorize a lender to claim	642
one of the nonrefundable tax credits allowed under section	643
5725.19, 5729.08, 5733.49, or 5747.80 of the Revised Code. The	644
credits shall be authorized by a written contract with the lender.	645
The contract shall specify the terms under which the lender may	646
claim the credit, including the amount of loss, if any, the lender	647
must incur before the lender may claim the credit; specify that	648
the credit shall not exceed the amount of the loss; and specify	649
that the lender may claim the credit only for a loss certified by	650
a program administrator to the authority under the procedures	651
prescribed under division (B)(6) of section 150.05 of the Revised	652
Code.	653

(B) Tax credits may be authorized at any time after the	654
authority establishes the investment policy under section 150.03	655
of the Revised Code, but a tax credit so authorized may not be	656
claimed until the beginning of the fifth year after the authority	657
establishes the investment policy. A tax credit may not be	658
claimed after June 30, 2026.	659

(C)(1) Upon receiving certification of a lender's loss from	660
a program administrator pursuant to the procedures in the	661
investment policy, the authority shall issue a tax credit	662
certificate to the lender, except as otherwise provided in	663
division (C)(2) of this section. The certificate shall state the	664
amount of the credit and the calendar year, under section 5725.19	665
or 5729.08, the tax year, under section 5733.49, or the taxable	666
year under section 5747.80 of the Revised Code, for which the	667
credit may be claimed. The authority, in conjunction with the tax	668
commissioner, shall develop a system for issuing tax credit	669
certificates for the purpose of verifying that any credit claimed	670
is a credit issued under this section and is properly taken in	671
the year specified in the certificate and in compliance with	672
division (B) of this section.	673

(2) The authority shall not, in any fiscal year, issue tax	674
credit certificates in a total amount exceeding twenty million	675
dollars. When a loss is certified to the authority in such an	676
amount that the total of the certified losses in the fiscal year	677
exceeds twenty million dollars, the authority shall notify the	678
lender and advise the lender that the lender may defer receipt of	679
a tax credit certificate for the loss until the following fiscal	680
year. Within the time and in a manner that may be prescribed by	681
the authority, the lender shall confirm its receipt of such	682
notice. Each fiscal year, the authority shall issue tax credit	683
certificates to lenders that have deferred receipt of a	684
certificate under this division, in the order in which the	685
lenders' losses were certified to the authority, before issuing	686
tax credit certificates for losses certified in the current fiscal	687
year. The authority shall not issue a tax credit certificate for	688
any loss that was certified in a fiscal year ending more than five	689
years before the end of the current fiscal year. The authority	690
shall maintain a record of all certified losses with respect to	691
which issuance of tax credit certificates is deferred under this	692
division.	693

(D) Upon issuance of a tax credit certificate under division	694
(C) of this section, a lender may transfer the certificate to any	695
other person that is, for the year for which the credit may be	696
claimed, subject to any of the taxes against which the credit may	697
be claimed. A transfer of a tax credit certificate transfers to	698
the transferee all of the lender's rights, interests, duties, and	699
obligations with respect to the certificate. Such transfers shall	700
be governed by rules adopted by the authority pursuant to Chapter	701
119. of the Revised Code. The rules shall be adopted only after	702
the authority obtains the consent of the tax commissioner to the	703
proposed rules.	704

Sec. 150.08.  (A) There is hereby created in the state	705
treasury the Ohio venture capital fund, to which shall be credited	706
all payments received by the authority pursuant to division	707
(B)(5) of section 150.05 of the Revised Code and all interest	708
earned on moneys of the fund.	709

(B) Except as provided in division (C) of this section, money	710
in the Ohio venture capital fund shall be used exclusively to	711
provide security against losses as authorized under this chapter.	712

(C) If the amount in the venture capital fund exceeds the	713
amount reasonably necessary to provide security against such	714
losses, the excess may be used, upon appropriation by the general	715
assembly, to provide scholarships or other financial assistance to	716
students enrolled in a course of study in the fields of physical	717
or natural sciences, mathematics, or engineering at an institution	718
of higher education in this state.	719

Sec. 150.09.  The state, the governor, or a member of the	720
authority is not liable in damages to any person in a civil action	721
for any loss incurred as a result of any investment made by a	722
program administrator or fund manager employed by the program	723
administrator.	724

Sec. 150.10.  (A) On the first day of January of the second	725
year after the date of entering into an agreement under section	726
150.05 of the Revised Code and of each ensuing year, the authority	727
shall file with the clerk of the house of representatives, the	728
clerk of the senate, and the chairpersons of the house and senate	729
standing committees predominantly concerned with economic	730
development a written report on the Ohio venture capital program.	731
The report shall include all the following:	732

(1) A description of the details of the investment policy	733
established or modified in accordance with sections 150.03 and	734
150.04 of the Revised Code;	735

(2) The authority's assessment of the program's achievement	736
of its purpose stated in section 150.01 of the Revised Code;	737

(3) The value of tax credit certificates issued by the	738
authority under section 150.07 of the Revised Code in each fiscal	739
year ending on or before the preceding thirtieth day of June;	740

(4) The amount of tax credits claimed pursuant to section	741
5725.19, 5729.08, 5733.49, or 5747.80 of the Revised Code, as to	742
the respective taxes involved;	743

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

744

(6) The names of venture capital funds in which money from	745
the program fund has been invested and the locations of their	746
principal offices, and the names of the enterprises in which each	747
of those venture capital funds has invested such money and the	748
locations of those enterprises' principal offices;	749

(7) Any recommendations for modifying the program to better	750
achieve the purpose stated in section 150.01 of the Revised Code.	751

(B) During each year that a report is issued under division	752
(A) of this section, the chairperson of the authority, or another	753
member of the authority designated by the chairperson as the	754
authority's representative, shall be required to appear in person	755
before the standing committees of the house and senate	756
predominantly concerned with economic development to give	757
testimony concerning the status of the Ohio venture capital	758
program.	759

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

760

(1) "Internal Revenue Code" means the Internal Revenue Code	761
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.	762

(2) "Schedule C" means internal revenue service schedule C	763
filed by a taxpayer pursuant to the Internal Revenue Code.	764

(3) "Form 2106" means internal revenue service form 2106	765
filed by a taxpayer pursuant to the Internal Revenue Code.	766

(4) "Intangible income" means income of any of the following	767
types: income yield, interest, dividends, or other income arising	768
from the ownership, sale, exchange, or other disposition of	769
intangible property including, but not limited to, investments,	770
deposits, money, or credits as those terms are defined in Chapter	771
5701. of the Revised Code.	772

(5) "S corporation" means a corporation that has made an	773
election under subchapter S of Chapter 1 of Subtitle A of the	774
Internal Revenue Code for its taxable year.	775

(B) No municipal corporation with respect to that income	776
that it may tax shall tax such income at other than a uniform	777
rate.	778

(C) No municipal corporation shall levy a tax on income at a	779
rate in excess of one per cent without having obtained the	780
approval of the excess by a majority of the electors of the	781
municipality voting on the question at a general, primary, or	782
special election. The legislative authority of the municipal	783
corporation shall file with the board of elections at least	784
seventy-five days before the day of the election a copy of the	785
ordinance together with a resolution specifying the date the	786
election is to be held and directing the board of elections to	787
conduct the election. The ballot shall be in the following form:	788
"Shall the Ordinance providing for a ... per cent levy on income	789
for (Brief description of the purpose of the proposed levy) be	790
passed?	791

FOR THE INCOME TAX

792

AGAINST THE INCOME TAX"

793

In the event of an affirmative vote, the proceeds of the levy	794
may be used only for the specified purpose.	795

(D)(1) Except as otherwise provided in division (D)(2) or	796
(F)(9) of this section, no municipal corporation shall exempt from	797
a tax on income, compensation for personal services of individuals	798
over eighteen years of age or the net profit from a business or	799
profession.	800

(2) The legislative authority of a municipal corporation	801
may, by ordinance or resolution, exempt from a tax on income any	802
compensation arising from the grant, sale, exchange, or other	803
disposition of a stock option; the exercise of a stock option; or	804
the sale, exchange, or other disposition of stock purchased under	805
a stock option.	806

(E) Nothing in this section shall prevent a municipal	807
corporation from permitting lawful deductions as prescribed by	808
ordinance. If a taxpayer's taxable income includes income against	809
which the taxpayer has taken a deduction for federal income tax	810
purposes as reportable on the taxpayer's form 2106, and against	811
which a like deduction has not been allowed by the municipal	812
corporation, the municipal corporation shall deduct from the	813
taxpayer's taxable income an amount equal to the deduction shown	814
on such form allowable against such income, to the extent not	815
otherwise so allowed as a deduction by the municipal corporation.	816
In the case of a taxpayer who has a net profit from a business or	817
profession that is operated as a sole proprietorship, no municipal	818
corporation may tax or use as the base for determining the amount	819
of the net profit that shall be considered as having a taxable	820
situs in the municipal corporation, a greater amount than the net	821
profit reported by the taxpayer on schedule C filed in reference	822
to the year in question as taxable income from such sole	823
proprietorship, except as otherwise specifically provided by	824
ordinance or regulation.	825

(F) A municipal corporation shall not tax any of the	826
following:	827

(1) The military pay or allowances of members of the armed	828
forces of the United States and of members of their reserve	829
components, including the Ohio national guard;	830

(2) The income of religious, fraternal, charitable,	831
scientific, literary, or educational institutions to the extent	832
that such income is derived from tax-exempt real estate,	833
tax-exempt tangible or intangible property, or tax-exempt	834
activities;	835

(3) Except as otherwise provided in division (G) of this	836
section, intangible income;	837

(4) Compensation paid under section 3501.28 or 3501.36 of	838
the Revised Code to a person serving as a precinct election	839
official, to the extent that such compensation does not exceed one	840
thousand dollars annually. Such compensation in excess of one	841
thousand dollars may be subjected to taxation by a municipal	842
corporation. A municipal corporation shall not require the payer	843
of such compensation to withhold any tax from that compensation.	844

(5) Compensation paid to an employee of a transit authority,	845
regional transit authority, or regional transit commission created	846
under Chapter 306. of the Revised Code for operating a transit bus	847
or other motor vehicle for the authority or commission in or	848
through the municipal corporation, unless the bus or vehicle is	849
operated on a regularly scheduled route, the operator is subject	850
to such a tax by reason of residence or domicile in the municipal	851
corporation, or the headquarters of the authority or commission is	852
located within the municipal corporation;	853

(6) The income of a public utility when that public utility	854
is subject to the tax levied under section 5727.24 or 5727.30 of	855
the Revised Code, except starting January 1, 2002, the income of	856
an electric company or combined company, as defined in section	857
5727.01 of the Revised Code, may be taxed by a municipal	858
corporation, subject to Chapter 5745. of the Revised Code.	859

(7) On and after January 1, 2003, items excluded from	860
federal gross income pursuant to section 107 of the Internal	861
Revenue Code;	862

(8) On and after January 1, 2001, compensation paid to a	863
nonresident individual to the extent prohibited under section	864
718.011 of the Revised Code;	865

(9) An S corporation shareholder's distributive share of net	866
profits of the S corporation, except to the extent such	867
distributive share of net profits represents income earned for	868
services performed by the shareholder for the S corporation.	869

(G) Any municipal corporation that taxes any type of	870
intangible income on March 29, 1988, pursuant to Section 3 of	871
Amended Substitute Senate Bill No. 238 of the 116th general	872
assembly, may continue to tax that type of income after 1988 if a	873
majority of the electors of the municipal corporation voting on	874
the question of whether to permit the taxation of that type of	875
intangible income after 1988 vote in favor thereof at an election	876
held on November 8, 1988.	877

(H) Nothing in this section or section 718.02 of the Revised	878
Code shall authorize the levy of any tax on income that a	879
municipal corporation is not authorized to levy under existing	880
laws or shall require a municipal corporation to allow a deduction	881
from taxable income for losses incurred from a sole proprietorship	882
or partnership.	883

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

884

(1) "S corporation" means a corporation that has made an	885
election under subchapter S of Chapter 1 of Subtitle A of the	886
Internal Revenue Code for its taxable year.	887

(2) "Limited liability company" means a limited liability	888
company formed under Chapter 1705. of the Revised Code or under	889
the laws of another state.	890

(3)(2) "Pass-through entity" means a partnership, S	891
corporation, limited liability company, or any other class of	892
entity the income or profits from which are given pass-through	893
treatment under the Internal Revenue Code, excluding an S	894
corporation.	895

(4)(3) "Income from a pass-through entity" means partnership	896
income of partners, distributive shares of shareholders of an s	897
corporation, membership interests of members of a limited	898
liability company, or other distributive or proportionate	899
ownership shares of income from other pass-through entities.	900

(5)(4) "Owner" means a partner of a partnership, a	901
shareholder of an S corporation, a member of a limited liability	902
company, or other person with an ownership interest in a	903
pass-through entity.	904

(6)(5) "Owner's proportionate share," with respect to each	905
owner of a pass-through entity, means the ratio of (a) the owner's	906
income from the pass-through entity that is subject to taxation by	907
the municipal corporation, to (b) the total income from that	908
entity of all owners whose income from the entity is subject to	909
taxation by that municipal corporation.	910

(B) On and after January 1, 2003, any municipal corporation	911
imposing a tax that applies to income from a pass-through entity	912
shall grant a credit to each owner who is domiciled in the	913
municipal corporation for taxes paid to another municipal	914
corporation by a pass-through entity that does not conduct	915
business in the municipal corporation. The amount of the credit	916
shall equal the lesser of the following amounts, subject to	917
division (C) of this section:	918

(1) The owner's proportionate share of the amount, if any,	919
of tax paid by the pass-through entity to another municipal	920
corporation in this state;	921

(2) The owner's proportionate share of the amount of tax	922
that would be imposed on the pass-through entity by the municipal	923
corporation in which the taxpayer is domiciled if the pass-through	924
entity conducted business in the municipal corporation.	925

(C) If a municipal corporation grants a credit for a	926
percentage, less than one hundred per cent, of the amount of	927
income taxes paid on compensation by an individual who resides or	928
is domiciled in the municipal corporation to another municipal	929
corporation, the amount of credit otherwise required by division	930
(B) of this section shall be multiplied by that percentage.	931

(D) On and after January 1, 2003, any municipal corporation	932
that imposes a tax on income of or from a pass-through entity	933
shall specify by ordinance or rule whether the tax applies to	934
income of the pass-through entity in the hands of the entity or to	935
income from the pass-through entity in the hands of the owners of	936
the entity. A municipal corporation may specify a different	937
ordinance or rule under this division for each of the classes of	938
pass-through entity enumerated in division (A)(3)(2) of this	939
section.	940

Sec. 5703.21.  (A) Except as provided in divisions (B) and	941
(C) of this section, no agent of the department of taxation,	942
except in the agent's report to the department or when called on	943
to testify in any court or proceeding, shall divulge any	944
information acquired by the agent as to the transactions,	945
property, or business of any person while acting or claiming to	946
act under orders of the department. Whoever violates this	947
provision shall thereafter be disqualified from acting as an	948
officer or employee or in any other capacity under appointment or	949
employment of the department.	950

(B)(1) For purposes of an audit pursuant to section 117.15	951
of the Revised Code, or an audit of the department pursuant to	952
Chapter 117. of the Revised Code, or an audit, pursuant to that	953
chapter, the objective of which is to express an opinion on a	954
financial report or statement prepared or issued pursuant to	955
division (A)(7) or (9) of section 126.21 of the Revised Code, the	956
officers and employees of the auditor of state charged with	957
conducting the audit shall have access to and the right to examine	958
any state tax returns and state tax return information in the	959
possession of the department to the extent that the access and	960
examination are necessary for purposes of the audit. Any	961
information acquired as the result of that access and examination	962
shall not be divulged for any purpose other than as required for	963
the audit or unless the officers and employees are required to	964
testify in a court or proceeding under compulsion of legal	965
process. Whoever violates this provision shall thereafter be	966
disqualified from acting as an officer or employee or in any other	967
capacity under appointment or employment of the auditor of state.	968

(2) As provided by section 6103(d)(2) of the Internal	969
Revenue Code, any federal tax returns or federal tax information	970
that the department has acquired from the internal revenue	971
service, through federal and state statutory authority, may be	972
disclosed to the auditor of state solely for purposes of an audit	973
of the department.	974

(C) Division (A) of this section does not prohibit any of	975
the following:	976

(1) Divulging information contained in applications,	977
complaints, and related documents filed with the department under	978
section 5715.27 of the Revised Code or in applications filed with	979
the department under section 5715.39 of the Revised Code;	980

(2) Providing information to the office of child support	981
within the department of job and family services pursuant to	982
section 3125.43 of the Revised Code;	983

(3) Disclosing to the board of motor vehicle collision	984
repair registration any information in the possession of the	985
department that is necessary for the board to verify the existence	986
of an applicant's valid vendor's license and current state tax	987
identification number under section 4775.07 of the Revised Code;	988

(4) Providing information to the administrator of workers'	989
compensation pursuant to section 4123.591 of the Revised Code;	990

(5) Providing to the attorney general information the	991
department obtains under division (J) of section 1346.01 of the	992
Revised Code;	993

(6) Permitting properly authorized officers, employees, or	994
agents of a municipal corporation from inspecting reports or	995
information pursuant to rules adopted under section 5745.16 of the	996
Revised Code;	997

(7) Providing information regarding the name, account	998
number, or business address of a holder of a vendor's license	999
issued pursuant to section 5739.17 of the Revised Code, a holder	1000
of a direct payment permit issued pursuant to section 5739.031 of	1001
the Revised Code, or a seller having a use tax account maintained	1002
pursuant to section 5741.17 of the Revised Code, or information	1003
regarding the active or inactive status of a vendor's license,	1004
direct payment permit, or seller's use tax account;	1005

(8) Releasing invoices or invoice information furnished under	1006
section 4301.433 of the Revised Code pursuant to that section;	1007

(9) Providing statements regarding applications for air or	1008
noise pollution control certificates or industrial water pollution	1009
control certificates as provided in section 5709.211 or 6111.311	1010
of the Revised Code.	1011

Sec. 5709.211. As soon as is practicable after receiving an	1012
application for an air or noise pollution control certificate, the	1013
tax commissioner shall estimate the assessed value of the air or	1014
noise pollution control facility that is the subject of the	1015
application and shall issue a statement showing such value and the	1016
effective date of the certificate, if known, to the county auditor	1017
of the county in which the facility is located. Within sixty days	1018
after receiving such a statement, the county auditor shall issue a	1019
notice to the taxing authority of each taxing unit in which the	1020
facility is or is to be located. The notice shall state that an	1021
application for an air or noise pollution control facility has	1022
been filed for the facility; the effective date of the certificate	1023
if the date is shown on the tax commissioner's statement; the	1024
estimated assessed value of the facility shown on the statement;	1025
the annual amount of taxes that would be charged and payable on	1026
that value at the current rate of taxation in effect in the taxing	1027
unit; and that, if approved, the application entitles the facility	1028
to exemption from taxation and the taxing unit may be required to	1029
refund any taxes on the facility accruing after the effective date	1030
of the certificate. The tax commissioner shall issue an amended	1031
statement if, after the original statement is issued, the estimate	1032
of such assessed value increases or decreases by more than ten per	1033
cent of the estimated value shown on the most recently issued	1034
statement or amended statement, and the county auditor shall issue	1035
an amended notice reflecting such change.	1036

The tax commissioner's statement and the county auditor's	1037
notice are issued exclusively for the purpose of notifying taxing	1038
authorities of the potential for a refund of taxes paid on an air	1039
or noise pollution control facility before a pollution control	1040
certificate is issued. The statement and notice are not	1041
appealable by any person and do not constitute an assessment that	1042
is subject to a petition for reassessment by the taxpayer. The	1043
notice issued by the county auditor does not constitute a notice	1044
required by law to be given for the purpose of section 5717.02 of	1045
the Revised Code.	1046

Sec. 5725.19. Upon the issuance of a tax credit certificate	1047
by the Ohio venture capital authority under section 150.07 of the	1048
Revised Code, a nonrefundable credit may be claimed against the	1049
tax imposed on a domestic insurance company under section 5725.18	1050
of the Revised Code. The credit shall be claimed in the calendar	1051
year specified in the certificate issued by the authority.	1052

Sec. 5729.08. Upon the issuance of a tax credit certificate	1053
by the Ohio venture capital authority under section 150.07 of the	1054
Revised Code, a nonrefundable credit may be claimed against the	1055
tax imposed on a foreign insurance company under section 5729.03	1056
of the Revised Code. The credit shall be claimed in the calendar	1057
year specified in the certificate issued by the authority.	1058

Sec. 5733.49. Upon the issuance of a tax credit certificate	1059
by the Ohio venture capital authority under section 150.07 of the	1060
Revised Code, a nonrefundable credit may be claimed against the	1061
tax imposed by section 5733.06 of the Revised Code. The credit	1062
shall be claimed for the tax year specified in the certificate	1063
issued by the authority and in the order required under section	1064
5733.98 of the Revised Code.	1065

Sec. 5733.98.  (A) To provide a uniform procedure for	1066
calculating the amount of tax imposed by section 5733.06 of the	1067
Revised Code that is due under this chapter, a taxpayer shall	1068
claim any credits to which it is entitled in the following order,	1069
except as otherwise provided in section 5733.058 of the Revised	1070
Code:	1071

(1) The credit for taxes paid by a qualifying pass-through	1072
entity allowed under section 5733.0611 of the Revised Code;	1073

(2) The credit allowed for financial institutions under	1074
section 5733.45 of the Revised Code;	1075

(3) The credit for qualifying affiliated groups under section	1076
5733.068 of the Revised Code;	1077

(4) The subsidiary corporation credit under section 5733.067	1078
of the Revised Code;	1079

(5) The savings and loan assessment credit under section	1080
5733.063 of the Revised Code;	1081

(6) The credit for recycling and litter prevention donations	1082
under section 5733.064 of the Revised Code;	1083

(7) The credit for employers that enter into agreements with	1084
child day-care centers under section 5733.36 of the Revised Code;	1085

(8) The credit for employers that reimburse employee child	1086
day-care expenses under section 5733.38 of the Revised Code;	1087

(9) The credit for maintaining railroad active grade crossing	1088
warning devices under section 5733.43 of the Revised Code;	1089

(10) The credit for purchases of lights and reflectors under	1090
section 5733.44 of the Revised Code;	1091

(11) The job retention credit under division (B) of section	1092
5733.0610 of the Revised Code;	1093

(12) The credit for manufacturing investments under section	1094
5733.061 of the Revised Code;	1095

(13) The credit for purchases of new manufacturing machinery	1096
and equipment under section 5733.31 or section 5733.311 of the	1097
Revised Code;	1098

(14) The second credit for purchases of new manufacturing	1099
machinery and equipment under section 5733.33 of the Revised Code;	1100

(15) The job training credit under section 5733.42 of the	1101
Revised Code;	1102

(16) The credit for qualified research expenses under	1103
section 5733.351 of the Revised Code;	1104

(17) The enterprise zone credit under section 5709.66 of the	1105
Revised Code;	1106

(18) The credit for the eligible costs associated with a	1107
voluntary action under section 5733.34 of the Revised Code;	1108

(19) The credit for employers that establish on-site child	1109
day-care under section 5733.37 of the Revised Code;	1110

(20) The ethanol plant investment credit under section	1111
5733.46 of the Revised Code;	1112

(21) The credit for purchases of qualifying grape production	1113
property under section 5733.32 of the Revised Code;	1114

(22) The export sales credit under section 5733.069 of the	1115
Revised Code;	1116

(23) The credit for research and development and technology	1117
transfer investors under section 5733.35 of the Revised Code;	1118

(24) The enterprise zone credits under section 5709.65 of the	1119
Revised Code;	1120

(25) The credit for using Ohio coal under section 5733.39 of	1121
the Revised Code;	1122

(26) The credit for losses on loans made under the Ohio	1123
venture capital program under sections 150.01 to 150.10 of the	1124
Revised Code;	1125

(27) The refundable jobs creation credit under division (A)	1126
of section 5733.0610 of the Revised Code;	1127

(27)(28) The refundable credit for tax withheld under	1128
division (B)(2) of section 5747.062 of the Revised Code.	1129

(B) For any credit except the refundable credits enumerated	1130
in this section, the amount of the credit for a tax year shall not	1131
exceed the tax due after allowing for any other credit that	1132
precedes it in the order required under this section. Any excess	1133
amount of a particular credit may be carried forward if authorized	1134
under the section creating that credit.	1135

Sec. 5747.80. Upon the issuance of a tax credit certificate	1136
by the Ohio venture capital authority under section 150.07 of the	1137
Revised Code, a nonrefundable credit may be claimed against the	1138
tax imposed by section 5747.02 of the Revised Code. The credit	1139
shall be claimed for the taxable year specified in the certificate	1140
issued by the authority and in the order required under section	1141
5747.98 of the Revised Code.	1142

Sec. 5747.98.  (A) To provide a uniform procedure for	1143
calculating the amount of tax due under section 5747.02 of the	1144
Revised Code, a taxpayer shall claim any credits to which the	1145
taxpayer is entitled in the following order:	1146

(1) The retirement income credit under division (B) of	1147
section 5747.055 of the Revised Code;	1148

(2) The senior citizen credit under division (C) of section	1149
5747.05 of the Revised Code;	1150

(3) The lump sum distribution credit under division (D) of	1151
section 5747.05 of the Revised Code;	1152

(4) The dependent care credit under section 5747.054 of the	1153
Revised Code;	1154

(5) The lump sum retirement income credit under division (C)	1155
of section 5747.055 of the Revised Code;	1156

(6) The lump sum retirement income credit under division (D)	1157
of section 5747.055 of the Revised Code;	1158

(7) The lump sum retirement income credit under division (E)	1159
of section 5747.055 of the Revised Code;	1160

(8) The credit for displaced workers who pay for job	1161
training under section 5747.27 of the Revised Code;	1162

(9) The campaign contribution credit under section 5747.29	1163
of the Revised Code;	1164

(10) The twenty-dollar personal exemption credit under	1165
section 5747.022 of the Revised Code;	1166

(11) The joint filing credit under division (G) of section	1167
5747.05 of the Revised Code;	1168

(12) The nonresident credit under division (A) of section	1169
5747.05 of the Revised Code;	1170

(13) The credit for a resident's out-of-state income under	1171
division (B) of section 5747.05 of the Revised Code;	1172

(14) The credit for employers that enter into agreements	1173
with child day-care centers under section 5747.34 of the Revised	1174
Code;	1175

(15) The credit for employers that reimburse employee child	1176
day-care expenses under section 5747.36 of the Revised Code;	1177

(16) The credit for adoption of a minor child under section	1178
5747.37 of the Revised Code;	1179

(17) The credit for purchases of lights and reflectors under	1180
section 5747.38 of the Revised Code;	1181

(18) The job retention credit under division (B) of section	1182
5747.058 of the Revised Code;	1183

(19) The credit for manufacturing investments under section	1184
5747.051 of the Revised Code;	1185

(20) The credit for purchases of new manufacturing machinery	1186
and equipment under section 5747.26 or section 5747.261 of the	1187
Revised Code;	1188

(21) The second credit for purchases of new manufacturing	1189
machinery and equipment and the credit for using Ohio coal under	1190
section 5747.31 of the Revised Code;	1191

(22) The job training credit under section 5747.39 of the	1192
Revised Code;	1193

(23) The enterprise zone credit under section 5709.66 of the	1194
Revised Code;	1195

(24) The credit for the eligible costs associated with a	1196
voluntary action under section 5747.32 of the Revised Code;	1197

(25) The credit for employers that establish on-site child	1198
day-care centers under section 5747.35 of the Revised Code;	1199

(26) The ethanol plant investment credit under section	1200
5747.75 of the Revised Code;	1201

(27) The credit for purchases of qualifying grape production	1202
property under section 5747.28 of the Revised Code;	1203

(28) The export sales credit under section 5747.057 of the	1204
Revised Code;	1205

(29) The credit for research and development and technology	1206
transfer investors under section 5747.33 of the Revised Code;	1207

(30) The credit for losses on loans made under the Ohio	1208
venture capital program under sections 150.01 to 150.10 of the	1209
Revised Code;	1210

(31) The enterprise zone credits under section 5709.65 of the	1211
Revised Code;	1212

(31)(32) The refundable jobs creation credit under division	1213
(A) of section 5747.058 of the Revised Code;	1214

(32)(33) The refundable credit for taxes paid by a	1215
qualifying entity granted under section 5747.059 of the Revised	1216
Code;	1217

(33)(34) The refundable credits for taxes paid by a	1218
qualifying pass-through entity granted under division (J) of	1219
section 5747.08 of the Revised Code;	1220

(34)(35) The refundable credit for tax withheld under	1221
division (B)(1) of section 5747.062 of the Revised Code.	1222

(B) For any credit, except the refundable credits enumerated	1223
in this section and the credit granted under division (I) of	1224
section 5747.08 of the Revised Code, the amount of the credit for	1225
a taxable year shall not exceed the tax due after allowing for any	1226
other credit that precedes it in the order required under this	1227
section. Any excess amount of a particular credit may be carried	1228
forward if authorized under the section creating that credit.	1229
Nothing in this chapter shall be construed to allow a taxpayer to	1230
claim, directly or indirectly, a credit more than once for a	1231
taxable year.	1232

Sec. 6111.31.  Appliances, equipment, machinery, and	1233
structures comprising all or a part of an industrial water	1234
pollution control facility as defined in section 6111.01 of the	1235
Revised Code, and installed pursuant to the approval of the	1236
environmental protection agency or any other governmental agency	1237
having authority to approve the installation of industrial or	1238
other water pollution abatement or control facilities, and which	1239
is initially placed in operation, or is initially capable of	1240
operation on or after December 31, 1965, shall be excepted from	1241
personal property taxes, franchise taxes and sales and use taxes,	1242
as provided in this section. Application for an industrial water	1243
pollution control certificate shall be filed with the director of	1244
environmental protection in such manner and in such form as may be	1245
prescribed by regulations adopted and promulgated by the director	1246
and shall contain plans and specifications of the structure or	1247
structures, including all materials to be incorporated therein,	1248
and a descriptive list of all appliances, equipment, and machinery	1249
to be used as an industrial water pollution control facility.	1250
Within thirty days after receiving such an application, the	1251
director shall forward a copy of the application to the tax	1252
commissioner. The director shall promptly determine whether such	1253
application should be allowed or disallowed, in whole or in part,	1254
and shall give notice of such determination by mail to the	1255
applicant, the tax commissioner, and the auditor of the county or	1256
counties in which the structure or items described in the	1257
application will be located.	1258

Within fifteen days after the date of the mailing of such	1259
notice the applicant, the tax commissioner, or such county auditor	1260
may apply in writing for a reconsideration of the director's	1261
determination and request the director to hold a hearing on such	1262
application. Upon receipt of such application for reconsideration	1263
and request for hearing, the director shall set a date for such	1264
hearing and send notice thereof by mail to all persons notified of	1265
the filing of such application. Such hearing shall be held not	1266
less than fifteen nor more than thirty days from the date of the	1267
mailing of the notice thereof.	1268

If no application for reconsideration and request for hearing	1269
is filed within such period of fifteen days, the director's	1270
determination shall be final. If such application and request is	1271
filed, the director, after such hearing, shall finally determine	1272
whether the application for an industrial water pollution control	1273
certificate should be allowed or disallowed, in whole or in part,	1274
and shall send notice thereof by mail to all persons notified of	1275
the application for reconsideration.	1276

If any determination of the director which has become final	1277
contains a finding that any of the structures or items enumerated	1278
in the application for a certificate will be an industrial water	1279
pollution control facility, the director shall issue an industrial	1280
water pollution control certificate to that effect.	1281

The effective date of such certificate shall be the date when	1282
the item or items described therein are acquired or when title to	1283
or possession of such item or items is first transferred to the	1284
applicant or when construction of any structure or structures	1285
enumerated therein begins, whichever is earlier, provided such	1286
application shall not relate to facilities placed in operation or	1287
capable of operation prior to December 31, 1965, and shall remain	1288
in force and effect until revoked or modified as provided by	1289
section 6111.32 or 6111.33 of the Revised Code.	1290

Upon the issuance of a certificate the director shall send,	1291
by certified mail, such certificate to the applicant and a	1292
certified copy thereof to the tax commissioner and to the county	1293
auditor of the county or counties in which any property to which	1294
the certificate relates is located. The county auditor shall file	1295
such certified copy of the certificate of record in histhe	1296
auditor's office.	1297

Sec. 6111.311. As soon as is practicable after receiving a	1298
copy of an application for an industrial water pollution control	1299
certificate from the director of environmental protection under	1300
section 6111.31 of the Revised Code, the tax commissioner shall	1301
estimate the assessed value of the industrial water pollution	1302
control facility that is the subject of the application and shall	1303
issue a statement showing such value and the effective date of the	1304
certificate, if known, to the county auditor of the county in	1305
which the facility is located. The tax commissioner is not	1306
required to issue the statement if, before issuing the statement,	1307
the tax commissioner receives notice of the director's	1308
determination allowing or disallowing the application. Within	1309
sixty days after receiving such a statement, the county auditor	1310
shall issue a notice to the taxing authority of each taxing unit	1311
in which the facility is or is to be located, unless the county	1312
auditor has, within that period, received notice of the director's	1313
determination allowing or disallowing the application. The notice	1314
shall state that an application for an industrial water pollution	1315
control facility has been filed for the facility; the effective	1316
date of the certificate if the date is shown on the tax	1317
commissioner's statement; the estimated assessed value of the	1318
facility shown on the statement; the annual amount of taxes that	1319
would be charged and payable on that value at the current rate of	1320
taxation in effect in the taxing unit; and that, if approved, the	1321
application entitles the facility to exemption from taxation and	1322
the taxing unit may be required to refund any taxes on the	1323
facility accruing after the effective date of the certificate. The	1324
tax commissioner shall issue an amended statement if, after the	1325
original statement is issued, the estimate of such assessed value	1326
increases or decreases by more than ten per cent of the estimated	1327
value shown on the most recently issued statement or amended	1328
statement, and the county auditor shall issue an amended notice	1329
reflecting such change.	1330

The tax commissioner's statement and the county auditor's	1331
notice are issued exclusively for the purpose of notifying taxing	1332
authorities of the potential for a refund of taxes paid on an	1333
industrial water pollution control facility before a pollution	1334
control certificate is issued. The statement and notice are not	1335
appealable by any person and do not constitute an assessment that	1336
is subject to a petition for reassessment by the taxpayer. The	1337
notice issued by the county auditor does not constitute a notice	1338
required by law to be given for the purpose of section 5717.02 of	1339
the Revised Code.	1340

Section 2.  That existing sections 149.43, 718.01, 718.14,	1341
5703.21, 5733.98, 5747.98, and 6111.31 of the Revised Code are	1342
hereby repealed.	1343

Section 3. The enactment by this act of sections 5709.211 and	1344
6111.311 of the Revised Code applies to applications for air and	1345
noise pollution control certificates and to applications for	1346
industrial water pollution control certificates filed on or after	1347
the effective date of this act.	1348

The enactment of those sections also applies to such	1349
applications filed before the effective date of this act if such a	1350
certificate has not been issued before January 1, 2004. With	1351
respect to such applications, the Tax Commissioner shall issue the	1352
statements required by those sections as soon as is practicable	1353
after that effective date, and county auditors shall issue the	1354
notices required by those sections within sixty days after such a	1355
statement is received by the county auditor.	1356

Section 4. (A) As used in this section, "qualifying	1357
taxpayer" means a person satisfying all of the following:	1358

(1) The person disputes the valuation or assessment of one	1359
or more parcels of real property classified according to use as	1360
commercial real property;	1361

(2) The person filed an original complaint against the	1362
valuation or assessment of such property under section 5715.13 or	1363
5715.19 of the Revised Code that was dismissed by a county board	1364
of revision, the Board of Tax Appeals, or a court for lack of	1365
jurisdictional validity upon finding the filing of the complaint	1366
was the unauthorized practice of law;	1367

(3) The person has not paid in full the taxes, assessments,	1368
or charges due on the valuation or assessment of such property for	1369
the tax years to which those complaints relate.	1370

(B) Notwithstanding section 5715.13 or division (A) of	1371
section 5715.19 of the Revised Code, a qualifying taxpayer or a	1372
qualifying taxpayer's attorney may file, with the proper county	1373
board of revision, a complaint with respect to property described	1374
in division (A) of this section and with respect to any tax years	1375
to which the original complaints related and occurring within one	1376
sexennial reappraisal period within the ten years preceding the	1377
effective date of this section. The complaint shall be filed not	1378
later than six months after the effective date of this section.	1379
Upon the proper and timely filing of a complaint under this	1380
section, the board of revision shall proceed as otherwise	1381
prescribed in Chapter 5715. of the Revised Code and shall certify	1382
its action to the county auditor. Notwithstanding section 5715.22	1383
of the Revised Code, if the board of revision finds that the	1384
amount of taxes, assessments, and charges paid for the tax years	1385
to which the complaint relates exceeds the amount due for those	1386
years, the county auditor shall not draw a warrant for the refund	1387
of the overpayment or any portion thereof, and shall not credit	1388
the overpayment or any portion thereof against the amount of any	1389
taxes, assessments, or charges that may be due in the future from	1390
the qualifying taxpayer. The county auditor shall adjust the	1391
amount of taxes, assessments, and charges shown to be due on the	1392
current tax list from the years to which the complaint relates in	1393
accordance with the board's finding, and shall certify such	1394
adjustment to the county treasurer, who shall adjust the tax	1395
duplicate accordingly.	1396

(C) It is the intent of the General Assembly to exercise its	1397
authority under Ohio Constitution, Article II, Section 28, to pass	1398
a general law authorizing courts to carry into effect, upon such	1399
terms as are just and equitable, the manifest intention of	1400
parties, and officers, by curing omissions, defects, and errors in	1401
instruments and proceedings arising out of their want of	1402
conformity with the laws of this state. This section is remedial	1403
legislation and does not affect pending or past complaints where	1404
jurisdiction over a complainant absolutely vested with a county	1405
board of revision. It is the intent of the General Assembly that	1406
if a board of revision never had jurisdiction over a complainant	1407
because the complainant's previous complaint failed to vest	1408
jurisdictional validity because of an unauthorized practice of law	1409
violation, then no rights have vested with respect to the	1410
determination of the total valuation or assessment of a commercial	1411
parcel owned by the complainant, and, as such, there is not a	1412
reasonable expectation of finality with regard to said	1413
determination. Further, it is the intent of the General Assembly	1414
that this section merely modifies the existing right of a property	1415
owner, granted under sections 5715.13 and 5715.19 of the Revised	1416
Code, to file a complaint against a determination of the total	1417
valuation or assessment of a commercial parcel owned by the	1418
complainant, by expanding the statute of limitations under which a	1419
complaint can be filed.	1420

Section 5. Section 4 of this act is hereby repealed on the	1421
first day of the seventh month beginning after the effective date	1422
of this section.	1423