H. B. No. 1 As Introduced

REPRESENTATIVE T. Patton

A BILL

To amend sections 122.151, 122.152, 122.154, 166.01,

166.02, 166.08, 166.11, 166.13, 166.14, 166.16,

5733.98, and 5747.98 and to enact sections 166.17

to 166.21, 184.04, 5733.352, and 5747.331 to

increase the maximum amount of technology

investments eligible for a tax credit, to require

signatures on technology investment tax credit

certificates, to require the Director of

Development to develop the form of the tax credit

certificate, to require the Director to report

information regarding tax credit certificates to

the Tax Commissioner, to increase Edison Center

application fees, to create the Ohio Research

Commercialization Grant Program, to increase the

maximum amount of obligations that may be issued

to fund economic development programs, to create

the Research and Development Loan Fund, to

authorize the Director to make loans from the

Research and Development Loan Fund, and to grant

tax credits for qualified research and development

loan payments.

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

Section 1. That sections 122.151, 122.152, 122.154, 166.01,	22
166.02, 166.08, 166.11, 166.13, 166.14, 166.16, 5733.98, and	23
5747.98 be amended and sections 166.17, 166.18, 166.19, 166.20,	24
166.21, 184.04, 5733.352, and 5747.331 of the Revised Code be	25
enacted to read as follows:	26

Sec. 122.151. (A) An investor who proposes to make an	27
investment of money in an Ohio entity may apply to an Edison	28
center for a tax credit under this section. The Edison center	29
shall prescribe the form of the application and any information	30
that the investor must submit with the application. The investor	31
shall include with the application a fee of two hundred dollars.	32
The center, within three weeks after receiving the application,	33
shall review it, determine whether the investor should be	34
recommended for the tax credit, and send written notice of its	35
initial determination to the industrial technology and enterprise	36
advisory council and to the investor. If the center determines the	37
investor should not be recommended for the tax credit, it shall	38
include in the notice the reasons for the determination. Subject	39
to divisions (C) and (D) of this section, an investor is eligible	40
for a tax credit if all of the following requirements are met:	41

(1) The investor's investment of money is in an Ohio entity	42
engaged in a qualified trade or business.	43

(2) The Ohio entity had less than one million dollars of	44
gross revenue during its most recently completed fiscal year or	45
had a net book value of less than one million dollars at the end	46
of that fiscal year.	47

(3) The investment takes the form of the purchase of common	48
or preferred stock, a membership interest, a partnership interest,	49
or any other ownership interest.	50

(4) The amount of the investment for which the credit is	51
being claimed does not exceed ~~one~~two hundred fifty thousand	52
dollars.	53

(5) The money invested is entirely at risk of loss, where	54
repayment depends upon the success of the business operations of	55
the Ohio entity.	56

(6) No repayment of principal invested will be made for at	57
least three years from the date the investment is made.	58

(7) The annual combined amount of any dividend and interest	59
payments to be made to the investor will not exceed ten per cent	60
of the amount of the investment for at least three years from the	61
date the investment is made.	62

(8) The investor is not an employee with proprietary	63
decision-making authority of the Ohio entity in which the	64
investment of money is proposed, or related to such an individual.	65
The Ohio entity is not an individual related to the investor. For	66
purposes of this division, the industrial technology and	67
enterprise advisory council shall define "an employee with	68
proprietary decision-making authority."	69

(9) The investor is not an insider.

For the purposes of determining the net book value of an Ohio	71
entity under division (A)(1) or (2) of this section, if the entity	72
is a member of an affiliated group, the combined net book values	73
of all of the members of that affiliated group shall be used.	74

Nothing in division (A)(6) or (7) of this section limits or	75
disallows the distribution to an investor in a pass-through entity	76
of a portion of the entity's profits equal to the investor's	77
federal, state, and local income tax obligations attributable to	78
the investor's allocable share of the entity's profits. Nothing in	79
division (A)(6) or (7) of this section limits or disallows the	80
sale by an investor of part or all of the investor's interests in	81
an Ohio entity by way of a public offering of shares in the Ohio	82
entity.	83

(B) A group of two but not more than twenty investors, each	84
of whom proposes to make an investment of money in the same Ohio	85
entity, may submit an application for tax credits under division	86
(A) of this section. The group shall include with the application	87
a fee of eight hundred dollars. The application shall identify	88
each investor in the group and the amount of money each investor	89
proposes to invest in the Ohio entity, and shall name a contact	90
person for the group. The Edison center, within three weeks after	91
receiving the application, shall review it, determine whether each	92
investor of the group should be recommended for a tax credit under	93
the conditions set forth in division (A) of this section, and send	94
written notice of its determination to the industrial technology	95
and enterprise advisory council and to the contact person. The	96
center shall not recommend that a group of investors receive a tax	97
credit unless each investor is eligible under those conditions.	98
The center may disqualify from a group any investor who is not	99
eligible under the conditions and recommend that the remaining	100
group of investors receive the tax credit. If the center	101
determines the group should not be recommended for the tax credit,	102
it shall include in the notice the reasons for the determination.	103

(C) The industrial technology and enterprise advisory council	104
shall establish from among its members a three-person committee.	105
Within four weeks after the council receives a notice of	106
recommendation from an Edison center, the committee shall review	107
the recommendation and issue a final determination of whether the	108
investor or group is eligible for a tax credit under the	109
conditions set forth in division (A) of this section. The	110
committee may require the investor or group to submit additional	111
information to support the application. The vote of at least two	112
members of the committee is necessary for the issuance of a final	113
determination or any other action of the committee. Upon making	114
the final determination, the committee shall send written notice	115
of approval or disapproval of the tax credit to the investor or	116
group contact person, the director of development, and the Edison	117
center. If the committee disapproves the tax credit, it shall	118
include in the notice the reasons for the disapproval.	119

(D)(1) The industrial technology and enterprise advisory	120
council committee shall not approve more than one million five	121
hundred thousand dollars of investments in any one Ohio entity.	122
However, if a proposed investment of money in an Ohio entity has	123
been approved but the investor does not actually make the	124
investment, the committee may reassign the amount of that	125
investment to another investor, as long as the total amount	126
invested in the entity under this section does not exceed one	127
million five hundred thousand dollars.	128

If the one-million-five-hundred-thousand-dollar limit for an	129
Ohio entity has not yet been reached and an application proposes	130
an investment of money that would exceed the limit for that	131
entity, the committee shall send written notice to the investor,	132
or for a group, the contact person, that the investment cannot be	133
approved as requested. Upon receipt of the notice, the investor or	134
group may amend the application to propose an investment of money	135
that does not exceed the limit.	136

(2) Not more than ~~ten~~twenty million dollars of tax credits	137
shall be issued under sections 122.15 to 122.154 of the Revised	138
Code.	139

(E) If an investor makes an approved investment of money in	140
an Ohio entity of less than ~~one~~two hundred fifty thousand	141
dollars, the investor may apply for approval of another investment	142
of money in that entity, as long as the total amount invested in	143
that entity by the investor under this section does not exceed ~~one~~	144
two hundred fifty thousand dollars. An investor who receives	145
approval of an investment of money as part of a group may	146
subsequently apply on an individual basis for approval of an	147
additional investment of money in the Ohio entity.	148

(F) The industrial technology and enterprise advisory council	149
committee shall approve or disapprove tax credit applications	150
under this section in the order in which they are received by the	151
council.	152

(G) The director of development may disapprove any	153
application recommended by an Edison center and approved by the	154
industrial technology and enterprise advisory council committee,	155
or may disapprove a credit for which a tax credit certificate has	156
been issued under section 122.152 of the Revised Code, if the	157
director determines that the entity in which the applicant	158
proposes to invest or has invested is not an Ohio entity eligible	159
to receive investments that qualify for the credit. If the	160
director disapproves an application, the director shall certify	161
the action to the investor, the Edison center that recommended the	162
application, the industrial technology and enterprise advisory	163
council, and the tax commissioner, together with a written	164
explanation of the reasons for the disapproval. If the director	165
disapproves a tax credit after a tax credit certificate is issued,	166
the investor shall not claim the credit for the taxable year that	167
includes the day the director disapproves the credit, or for any	168
subsequent taxable year.	169

The director of development, in accordance with section	170
111.15 of the Revised Code and with the advice of the industrial	171
technology and enterprise advisory council, may adopt, amend, and	172
rescind rules necessary to implement sections 122.15 to 122.154 of	173
the Revised Code.	174

(H) An Edison center shall use application fees received	175
under this section only for the costs of administering sections	176
122.15 to 122.154 of the Revised Code.	177

Sec. 122.152. (A) After receiving notice of approval for an	178
investment of money from the industrial technology and enterprise	179
advisory council committee under section 122.151 of the Revised	180
Code, an investor, within a period of time determined by the	181
council committee, may make the investment and apply to the	182
council committee for a tax credit certificate. If the council	183
committee is satisfied the investor has made the investment in the	184
proper form, it shall issue to the investor a tax credit	185
certificate signed by the chairperson of the council committee and	186
the director of development indicating that the investor is	187
allowed a tax credit in an amount equal to twenty-five per cent of	188
the investment.	189

An investor who receives approval of a proposed investment of	190
money through a group application, after making the investment,	191
shall apply for a tax credit certificate on an individual basis.	192

(B) An investor who is issued a tax credit certificate under	193
this section may claim a nonrefundable credit equal to the amount	194
indicated on the certificate against any state tax liability. The	195
investor shall claim the credit for the taxable year in which the	196
certificate is issued.	197

(1) If the credit to which a taxpayer otherwise would be	198
entitled under this section for any taxable year is greater than	199
the tax otherwise due under division (D) of section 5707.03 or	200
section 5727.24 or 5727.38 of the Revised Code, the excess shall	201
be allowed as a credit in each of the ensuing fifteen taxable	202
years, but the amount of any excess credit allowed in an ensuing	203
taxable year shall be deducted from the balance carried forward to	204
the next taxable year.	205

(2) If the credit to which a taxpayer otherwise would be	206
entitled under this section for any taxable year is greater than	207
the tax otherwise due under section 5747.02 or Chapter 5733. of	208
the Revised Code, after allowing for any other credits that	209
precede the credit allowed under this section in the order	210
required under section 5733.98 or 5747.98 of the Revised Code, the	211
excess shall be allowed as a credit in each of the ensuing fifteen	212
taxable years, but the amount of any excess credit allowed in an	213
ensuing taxable year shall be deducted from the balance carried	214
forward to the next taxable year.	215

(C) Any portion of a credit allowed under this section that	216
is utilized by an investor to reduce the investor's state tax	217
liability shall not be utilized by any other person.	218

(D) To claim a tax credit allowed under this section, an	219
investor shall attach to the appropriate return a copy of the	220
certificate issued to the investor under this section.	221

(E) Nothing in this section shall limit or disallow	222
pass-through treatment of a pass-through entity's income,	223
deductions, or credits, or other amounts necessary to compute a	224
state tax liability.	225

(F) A tax credit certificate issued to an investor under this	226
section may not be transferred by that investor to any other	227
person.	228

(G)(1) The ~~industrial technology and enterprise advisory~~	229
~~council~~director of development shall develop the form of the tax	230
credit certificate and the industrial technology and enterprise	231
advisory council committee shall use that form when issuing a tax	232
credit certificate under this section.	233

(2) The ~~industrial technology and enterprise advisory council~~	234
director of development shall report to the tax commissioner any	235
information requested by the commissioner concerning tax credit	236
certificates issued under this section.	237

(H) An investment made by an investor or group of investors	238
who enter into a contractual agreement with an Ohio entity to	239
invest money in the Ohio entity is an acceptable investment if all	240
of the following conditions are met:	241

(1) The investment is made pursuant to a subscription	242
agreement providing that the investor or group of investors is	243
entitled to receive a refund of funds if the investment is not	244
approved by the industrial technology and enterprise advisory	245
council committee.	246

(2) The investment is placed in escrow until the investment	247
is approved by the industrial technology and enterprise advisory	248
council committee.	249

(3) The investor or group of investors shows proof of the	250
withdrawal of the funds by the Ohio entity after the investment is	251
approved by the industrial technology and enterprise advisory	252
council committee.	253

Sec. 122.154. (A) A business may apply to an Edison center	254
for a determination as to whether the business is an Ohio entity	255
eligible to receive investments of money under section 122.151 of	256
the Revised Code that qualify the investor for a tax credit under	257
section 122.152 of the Revised Code. The business shall include	258
with the application a fee of ~~one~~two hundred fifty dollars and a	259
business plan. The Edison center shall prescribe any other	260
information the business must submit with the application and the	261
form of the application. The center, within three weeks after	262
receiving the application, shall review it, determine whether the	263
business is an Ohio entity eligible to receive investments of	264
money that qualify for the tax credit, and send written notice to	265
the industrial technology and enterprise advisory council and the	266
business of its initial determination. If the center determines	267
that the business is not an Ohio entity eligible to receive	268
investments of money that qualify for the tax credit, it shall	269
include in the notice the reasons for the determination.	270

Within four weeks after the council receives a notice of	271
recommendation from an Edison center, the industrial technology	272
and enterprise advisory council committee established under	273
section 122.152 of the Revised Code shall review the	274
recommendation and issue a final determination of whether the	275
business is an Ohio entity eligible to receive investments of	276
money under section 122.151 of the Revised Code that qualify an	277
investor for a tax credit under section 122.152 of the Revised	278
Code. The council committee may require the business to submit	279
additional information to support the application. The vote of at	280
least two members of the council committee is necessary for the	281
issuance of a final determination. On making the final	282
determination, the council committee shall send written notice of	283
approval or disapproval to the business, the director of	284
development, and the Edison center. If the council committee	285
determines that the business is not an Ohio entity eligible to	286
receive investments of money that qualify for the tax credit, it	287
shall include in the notice the reasons for the determination.	288

(B) The department of development shall maintain a list of	289
the businesses that have been determined to be Ohio entities	290
eligible to receive investments of money that qualify for the tax	291
credit. The department shall furnish copies of the list to the	292
public upon request.	293

(C) The department of development may prescribe a schedule	294
under which businesses periodically must submit information to	295
enable the center to maintain the accuracy of the list. At the	296
times required in the schedule, each business on the list shall	297
submit any information the center requires to determine if the	298
business continues to be an Ohio entity eligible to receive	299
investments of money that qualify for the tax credit.	300

(D) An Edison center shall use fees received under this	301
section only for the costs of administering sections 122.15 to	302
122.154 of the Revised Code.	303

(E) The Edison centers and the industrial technology and	304
enterprise advisory council and its committees do not assume any	305
responsibility for the accuracy or truthfulness of information	306
furnished by an Ohio entity or its agents.	307

An investor in an Ohio entity is solely responsible for due	308
diligence in verifying information submitted by an Ohio entity. An	309
Edison center is not liable for any action resulting from its	310
provision of such information to investors in accordance with	311
sections 122.15 to 122.154 of the Revised Code.	312

Sec. 166.01. As used in this chapter:

313

(A) "Allowable costs" means all or part of the costs of	314
project facilities or, eligible innovation projects, or eligible	315
research and development projects, including costs of acquiring,	316
constructing, reconstructing, rehabilitating, renovating,	317
enlarging, improving, equipping, or furnishing project facilities	318
or, eligible innovation projects, or eligible research and	319
development projects, site clearance and preparation,	320
supplementing and relocating public capital improvements or	321
utility facilities, designs, plans, specifications, surveys,	322
studies, and estimates of costs, expenses necessary or incident to	323
determining the feasibility or practicability of assisting an	324
eligible project or, an eligible innovation project, or an	325
eligible research and development project, or providing project	326
facilities or facilities related to an eligible innovation project	327
or an eligible research and development project, architectural,	328
engineering, and legal services fees and expenses, the costs of	329
conducting any other activities as part of a voluntary action, and	330
such other expenses as may be necessary or incidental to the	331
establishment or development of an eligible project or, an	332
eligible innovation project, or an eligible research and	333
development project, and reimbursement of moneys advanced or	334
applied by any governmental agency or other person for allowable	335
costs.	336

(B) "Allowable innovation costs" includes allowable costs of	337
eligible innovation projects and, in addition, includes the costs	338
of research and development of eligible innovation projects;	339
obtaining or creating any requisite software or computer hardware	340
related to an eligible innovation project or the products or	341
services associated therewith; testing (including, without	342
limitation, quality control activities necessary for initial	343
production), perfecting, and marketing of such products and	344
services; creating and protecting intellectual property related to	345
an eligible innovation project or any products or services related	346
thereto, including costs of securing appropriate patent,	347
trademark, trade secret, trade dress, copyright, or other form of	348
intellectual property protection for an eligible innovation	349
project or related products and services; all to the extent that	350
such expenditures could be capitalized under then-applicable	351
generally accepted accounting principles; and the reimbursement of	352
moneys advanced or applied by any governmental agency or other	353
person for allowable innovation costs.	354

(C) "Eligible innovation project" includes an eligible	355
project, including any project facilities associated with an	356
eligible innovation project and, in addition, includes all	357
tangible and intangible property related to a new product or	358
process based on new technology or the creative application of	359
existing technology, including research and development, product	360
or process testing, quality control, market research, and related	361
activities, that is to be acquired, established, expanded,	362
remodeled, rehabilitated, or modernized for industry, commerce,	363
distribution, or research, or any combination thereof, the	364
operation of which, alone or in conjunction with other eligible	365
projects, eligible innovation projects, or innovation property,	366
will create new jobs or preserve existing jobs and employment	367
opportunities and improve the economic welfare of the people of	368
the state.	369

(D) "Eligible project" means project facilities to be	370
acquired, established, expanded, remodeled, rehabilitated, or	371
modernized for industry, commerce, distribution, or research, or	372
any combination thereof, the operation of which, alone or in	373
conjunction with other facilities, will create new jobs or	374
preserve existing jobs and employment opportunities and improve	375
the economic welfare of the people of the state. "Eligible	376
project" includes, without limitation, a voluntary action. For	377
purposes of this division, "new jobs" does not include existing	378
jobs transferred from another facility within the state, and	379
"existing jobs" includes only those existing jobs with work places	380
within the municipal corporation or unincorporated area of the	381
county in which the eligible project is located.	382

"Eligible project" does not include project facilities to be	383
acquired, established, expanded, remodeled, rehabilitated, or	384
modernized for industry, commerce, distribution, or research, or	385
any combination of industry, commerce, distribution, or research,	386
if the project facilities consist solely of	387
point-of-final-purchase retail facilities. If the project	388
facilities consist of both point-of-final-purchase retail	389
facilities and nonretail facilities, only the portion of the	390
project facilities consisting of nonretail facilities is an	391
eligible project. If a warehouse facility is part of a	392
point-of-final-purchase retail facility and supplies only that	393
facility, the warehouse facility is not an eligible project.	394
Catalog distribution facilities are not considered	395
point-of-final-purchase retail facilities for purposes of this	396
paragraph, and are eligible projects.	397

(E) "Eligible research and development project" means an	398
eligible project, including project facilities, comprising,	399
within, or related to, a facility or portion of a facility at	400
which research is undertaken for the purpose of discovering	401
information that is technological in nature and the application of	402
which is intended to be useful in the development of a new or	403
improved product, process, technique, formula, invention, or a new	404
product or process based on new technology, or the creative	405
application of existing technology.	406

(F) "Financial assistance" means inducements under division	407
(B) of section 166.02 of the Revised Code, loan guarantees under	408
section 166.06 of the Revised Code, and direct loans under section	409
166.07 of the Revised Code.	410

~~(F)~~(G) "Governmental action" means any action by a	411
governmental agency relating to the establishment, development, or	412
operation of an eligible project or, eligible innovation project,	413
or eligible research and development project, and project	414
facilities that the governmental agency acting has authority to	415
take or provide for the purpose under law, including, but not	416
limited to, actions relating to contracts and agreements, zoning,	417
building, permits, acquisition and disposition of property, public	418
capital improvements, utility and transportation service,	419
taxation, employee recruitment and training, and liaison and	420
coordination with and among governmental agencies.	421

~~(G)~~(H) "Governmental agency" means the state and any state	422
department, division, commission, institution or authority; a	423
municipal corporation, county, or township, and any agency	424
thereof, and any other political subdivision or public corporation	425
or the United States or any agency thereof; any agency,	426
commission, or authority established pursuant to an interstate	427
compact or agreement; and any combination of the above.	428

~~(H)~~(I) "Innovation financial assistance" means inducements	429
under division (B) of section 166.12 of the Revised Code,	430
innovation Ohio loan guarantees under section 166.15 of the	431
Revised Code, and innovation Ohio loans under section 166.16 of	432
the Revised Code.	433

~~(I)~~(J) "Innovation Ohio loan guarantee reserve requirement"	434
means, at any time, with respect to innovation loan guarantees	435
made under section 166.15 of the Revised Code, a balance in the	436
innovation Ohio loan guarantee fund equal to the greater of twenty	437
per cent of the then-outstanding principal amount of all	438
outstanding innovation loan guarantees made pursuant to section	439
166.15 of the Revised Code or fifty per cent of the principal	440
amount of the largest outstanding guarantee made pursuant to	441
section 166.15 of the Revised Code.	442

~~(J)~~(K) "Innovation property" includes property and also	443
includes software, inventory, licenses, contract rights, goodwill,	444
intellectual property, including without limitation, patents,	445
patent applications, trademarks and service marks, and trade	446
secrets, and other tangible and intangible property, and any	447
rights and interests in or connected to the foregoing.	448

~~(K)~~(L) "Loan guarantee reserve requirement" means, at any	449
time, with respect to loan guarantees made under section 166.06 of	450
the Revised Code, a balance in the loan guarantee fund equal to	451
the greater of twenty per cent of the then-outstanding principal	452
amount of all outstanding guarantees made pursuant to section	453
166.06 of the Revised Code or fifty per cent of the principal	454
amount of the largest outstanding guarantee made pursuant to	455
section 166.06 of the Revised Code.	456

~~(L)~~(M) "Person" means any individual, firm, partnership,	457
association, corporation, or governmental agency, and any	458
combination thereof.	459

~~(M)~~(N) "Project facilities" means buildings, structures, and	460
other improvements, and equipment and other property, excluding	461
small tools, supplies, and inventory, and any one, part of, or	462
combination of the above, comprising all or part of, or serving or	463
being incidental to, an eligible project or, an eligible	464
innovation project, or an eligible research and development	465
project, including, but not limited to, public capital	466
improvements.	467

~~(N)~~(O) "Property" means real and personal property and	468
interests therein.	469

~~(O)~~(P) "Public capital improvements" means capital	470
improvements or facilities that any governmental agency has	471
authority to acquire, pay the costs of, own, maintain, or operate,	472
or to contract with other persons to have the same done,	473
including, but not limited to, highways, roads, streets, water and	474
sewer facilities, railroad and other transportation facilities,	475
and air and water pollution control and solid waste disposal	476
facilities.	477

~~(P)~~(Q) "Research and development financial assistance" means	478
inducements under section 166.17 of the Revised Code, research and	479
development loans under section 166.21 of the Revised Code, and	480
research and development tax credits under sections 5733.352 and	481
5747.331 of the Revised Code.	482

(R) "Targeted innovation industry sectors" means industry	483
sectors involving the production or use of advanced materials,	484
instruments, controls and electronics, power and propulsion,	485
biosciences, and information technology, or such other sectors as	486
may be designated by the director of development.	487

~~(Q)~~(S) "Voluntary action" means a voluntary action, as	488
defined in section 3746.01 of the Revised Code, that is conducted	489
under the voluntary action program established in Chapter 3746. of	490
the Revised Code.	491

~~(R)~~(T) "Project financing obligations" means obligations	492
issued pursuant to section 166.08 of the Revised Code other than	493
obligations for which the bond proceedings provide that bond	494
service charges shall be paid from receipts of the state	495
representing gross profit on the sale of spirituous liquor as	496
referred to in division (B)(4) of section 4310.10 of the Revised	497
Code.	498

~~(S)~~(U) "Regional economic development entity" means an entity	499
that is under contract with the director of development to	500
administer a loan program under this chapter in a particular area	501
of this state.	502

Sec. 166.02. (A) The general assembly finds that many local	503
areas throughout the state are experiencing economic stagnation or	504
decline, and that the economic development program provided for in	505
sections 166.01 to 166.11 of the Revised Code will constitute a	506
deserved, necessary reinvestment by the state in those areas,	507
materially contribute to their economic revitalization, and result	508
in improving the economic welfare of all the people of the state.	509
Accordingly, it is declared to be the public policy of the state,	510
through the operations under sections 166.01 to 166.11 of the	511
Revised Code and other applicable laws adopted pursuant to Section	512
13 of Article VIII, Ohio Constitution, and other authority vested	513
in the general assembly, to assist in and facilitate the	514
establishment or development of eligible projects or assist and	515
cooperate with any governmental agency in achieving such purpose.	516

(B) In furtherance of such public policy and to implement	517
such purpose, the director of development may:	518

(1) After consultation with appropriate governmental	519
agencies, enter into agreements with persons engaged in industry,	520
commerce, distribution, or research and with governmental agencies	521
to induce such persons to acquire, construct, reconstruct,	522
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	523
otherwise develop, eligible projects and make provision therein	524
for project facilities and governmental actions, as authorized by	525
this chapter and other applicable laws, subject to any required	526
actions by the general assembly or the controlling board and	527
subject to applicable local government laws and regulations;	528

(2) Provide for the guarantees and loans as provided for in	529
sections 166.06 and 166.07 of the Revised Code;	530

(3) Subject to release of such moneys by the controlling	531
board, contract for labor and materials needed for, or contract	532
with others, including governmental agencies, to provide, project	533
facilities the allowable costs of which are to be paid for or	534
reimbursed from moneys in the facilities establishment fund, and	535
contract for the operation of such project facilities;	536

(4) Subject to release thereof by the controlling board, from	537
moneys in the facilities establishment fund acquire or contract to	538
acquire by gift, exchange, or purchase, including the obtaining	539
and exercise of purchase options, property, and convey or	540
otherwise dispose of, or provide for the conveyance or disposition	541
of, property so acquired or contracted to be acquired by sale,	542
exchange, lease, lease purchase, conditional or installment sale,	543
transfer, or other disposition, including the grant of an option	544
to purchase, to any governmental agency or to any other person	545
without necessity for competitive bidding and upon such terms and	546
conditions and manner of consideration pursuant to and as the	547
director determines to be appropriate to satisfy the objectives of	548
sections 166.01 to 166.11 of the Revised Code;	549

(5) Retain the services of or employ financial consultants,	550
appraisers, consulting engineers, superintendents, managers,	551
construction and accounting experts, attorneys, and employees,	552
agents, and independent contractors as are necessary in the	553
director's judgment and fix the compensation for their services;	554

(6) Receive and accept from any person grants, gifts, and	555
contributions of money, property, labor, and other things of	556
value, to be held, used and applied only for the purpose for which	557
such grants, gifts, and contributions are made;	558

(7) Enter into appropriate arrangements and agreements with	559
any governmental agency for the taking or provision by that	560
governmental agency of any governmental action;	561

(8) Do all other acts and enter into contracts and execute	562
all instruments necessary or appropriate to carry out the	563
provisions of Chapter 166. of the Revised Code;	564

(9) Adopt rules to implement any of the provisions of Chapter	565
166. of the Revised Code applicable to the director.	566

(C) The determinations by the director that facilities	567
constitute eligible projects, that facilities are project	568
facilities, that costs of such facilities are allowable costs, and	569
all other determinations relevant thereto or to an action taken or	570
agreement entered into shall be conclusive for purposes of the	571
validity and enforceability of rights of parties arising from	572
actions taken and agreements entered into under this chapter.	573

(D) Except as otherwise prescribed in Chapter 166. of the	574
Revised Code, all expenses and obligations incurred by the	575
director in carrying out the director's powers and in exercising	576
the director's duties under Chapter 166. of the Revised Code,	577
shall be payable solely from, as appropriate, moneys in the	578
facilities establishment fund, the loan guarantee fund, the	579
innovation Ohio loan guarantee fund, the innovation Ohio loan	580
fund, the research and development loan fund, or moneys	581
appropriated for such purpose by the general assembly. Chapter	582
166. of the Revised Code does not authorize the director or the	583
issuing authority under section 166.08 of the Revised Code to	584
incur bonded indebtedness of the state or any political	585
subdivision thereof, or to obligate or pledge moneys raised by	586
taxation for the payment of any bonds or notes issued or	587
guarantees made pursuant to Chapter 166. of the Revised Code.	588

(E) No financial assistance for project facilities shall be	589
provided under this chapter unless the provisions of the agreement	590
providing for such assistance specify that all wages paid to	591
laborers and mechanics employed on such project facilities for	592
which the assistance is granted shall be paid at the prevailing	593
rates of wages of laborers and mechanics for the class of work	594
called for by such project facilities, which wages shall be	595
determined in accordance with the requirements of Chapter 4115. of	596
the Revised Code for determination of prevailing wage rates,	597
provided that the requirements of this division do not apply where	598
the federal government or any of its agencies provides financing	599
assistance as to all or any part of the funds used in connection	600
with such project facilities and prescribes predetermined minimum	601
wages to be paid to such laborers and mechanics; and provided	602
further that should a nonpublic user beneficiary of the eligible	603
project undertake, as part of the eligible project, construction	604
to be performed by its regular bargaining unit employees who are	605
covered under a collective bargaining agreement which was in	606
existence prior to the date of the document authorizing such	607
assistance then, in that event, the rate of pay provided under the	608
collective bargaining agreement may be paid to such employees.	609

(F) Any governmental agency may enter into an agreement with	610
the director, any other governmental agency, or a person to be	611
assisted under this chapter, to take or provide for the purposes	612
of this chapter any governmental action it is authorized to take	613
or provide, and to undertake on behalf and at the request of the	614
director any action which the director is authorized to undertake	615
pursuant to divisions (B)(3), (4), and (5) of this section or	616
divisions (B)(3), (4), and (5) of section 166.12 of the Revised	617
Code. Governmental agencies of the state shall cooperate with and	618
provide assistance to the director of development and the	619
controlling board in the exercise of their respective functions	620
under this chapter.	621

Sec. 166.08. (A) As used in this chapter:

622

(1) "Bond proceedings" means the resolution, order, trust	623
agreement, indenture, lease, and other agreements, amendments and	624
supplements to the foregoing, or any one or more or combination	625
thereof, authorizing or providing for the terms and conditions	626
applicable to, or providing for the security or liquidity of,	627
obligations issued pursuant to this section, and the provisions	628
contained in such obligations.	629

(2) "Bond service charges" means principal, including	630
mandatory sinking fund requirements for retirement of obligations,	631
and interest, and redemption premium, if any, required to be paid	632
by the state on obligations.	633

(3) "Bond service fund" means the applicable fund and	634
accounts therein created for and pledged to the payment of bond	635
service charges, which may be, or may be part of, the economic	636
development bond service fund created by division (S) of this	637
section including all moneys and investments, and earnings from	638
investments, credited and to be credited thereto.	639

(4) "Issuing authority" means the treasurer of state, or the	640
officer who by law performs the functions of such officer.	641

(5) "Obligations" means bonds, notes, or other evidence of	642
obligation including interest coupons pertaining thereto, issued	643
pursuant to this section.	644

(6) "Pledged receipts" means all receipts of the state	645
representing the gross profit on the sale of spirituous liquor, as	646
referred to in division (B)(4) of section 4301.10 of the Revised	647
Code, after paying all costs and expenses of the division of	648
liquor control and providing an adequate working capital reserve	649
for the division of liquor control as provided in that division,	650
but excluding the sum required by the second paragraph of section	651
4301.12 of the Revised Code, as in effect on May 2, 1980, to be	652
paid into the state treasury; moneys accruing to the state from	653
the lease, sale, or other disposition, or use, of project	654
facilities, and from the repayment, including interest, of loans	655
made from proceeds received from the sale of obligations; accrued	656
interest received from the sale of obligations; income from the	657
investment of the special funds; and any gifts, grants, donations,	658
and pledges, and receipts therefrom, available for the payment of	659
bond service charges.	660

(7) "Special funds" or "funds" means, except where the	661
context does not permit, the bond service fund, and any other	662
funds, including reserve funds, created under the bond	663
proceedings, and the economic development bond service fund	664
created by division (S) of this section to the extent provided in	665
the bond proceedings, including all moneys and investments, and	666
earnings from investment, credited and to be credited thereto.	667

(B) Subject to the limitations provided in section 166.11 of	668
the Revised Code, the issuing authority, upon the certification by	669
the director of development to the issuing authority of the amount	670
of moneys or additional moneys needed in the facilities	671
establishment fund, the loan guarantee fund, the innovation Ohio	672
loan fund, or the innovation Ohio loan guarantee fund, or the	673
research and development loan fund for the purpose of paying, or	674
making loans for, allowable costs from the facilities	675
establishment fund or, allowable innovation costs from the	676
innovation Ohio loan fund, or allowable costs from the research	677
and development loan fund, or needed for capitalized interest, for	678
funding reserves, and for paying costs and expenses incurred in	679
connection with the issuance, carrying, securing, paying,	680
redeeming, or retirement of the obligations or any obligations	681
refunded thereby, including payment of costs and expenses relating	682
to letters of credit, lines of credit, insurance, put agreements,	683
standby purchase agreements, indexing, marketing, remarketing and	684
administrative arrangements, interest swap or hedging agreements,	685
and any other credit enhancement, liquidity, remarketing, renewal,	686
or refunding arrangements, all of which are authorized by this	687
section, or providing moneys for the loan guarantee fund or the	688
innovation Ohio loan guarantee fund, as provided in this chapter	689
or needed for the purposes of funds established in accordance with	690
or pursuant to sections 122.35, 122.42, 122.54, 122.55, 122.56,	691
122.561, 122.57, and 122.80 of the Revised Code which are within	692
the authorization of Section 13 of Article VIII, Ohio	693
Constitution, shall issue obligations of the state under this	694
section in the required amount; provided that such obligations may	695
be issued to satisfy the covenants in contracts of guarantee made	696
under section 166.06 or 166.15 of the Revised Code,	697
notwithstanding limitations otherwise applicable to the issuance	698
of obligations under this section. The proceeds of such	699
obligations, except for the portion to be deposited in special	700
funds, including reserve funds, as may be provided in the bond	701
proceedings, shall as provided in the bond proceedings be	702
deposited by the director of development to the facilities	703
establishment fund, the loan guarantee fund, the innovation Ohio	704
loan guarantee fund, or the innovation Ohio loan fund, or the	705
research and development loan fund. Bond proceedings for project	706
financing obligations may provide that the proceeds derived from	707
the issuance of such obligations shall be deposited into such fund	708
or funds provided for in the bond proceedings and, to the extent	709
provided for in the bond proceedings, such proceeds shall be	710
deemed to have been deposited into the facilities establishment	711
fund and transferred to such fund or funds. The issuing authority	712
may appoint trustees, paying agents, and transfer agents and may	713
retain the services of financial advisors, accounting experts, and	714
attorneys, and retain or contract for the services of marketing,	715
remarketing, indexing, and administrative agents, other	716
consultants, and independent contractors, including printing	717
services, as are necessary in the issuing authority's judgment to	718
carry out this section. The costs of such services are allowable	719
costs payable from the facilities establishment fund or the	720
research and development loan fund or allowable innovation costs	721
payable from the innovation Ohio loan fund.	722

(C) The holders or owners of such obligations shall have no	723
right to have moneys raised by taxation obligated or pledged, and	724
moneys raised by taxation shall not be obligated or pledged, for	725
the payment of bond service charges. Such holders or owners shall	726
have no rights to payment of bond service charges from any moneys	727
accruing to the state from the lease, sale, or other disposition,	728
or use, of project facilities, or from payment of the principal of	729
or interest on loans made, or fees charged for guarantees made, or	730
from any money or property received by the director, treasurer of	731
state, or the state under Chapter 122. of the Revised Code, or	732
from any other use of the proceeds of the sale of the obligations,	733
and no such moneys may be used for the payment of bond service	734
charges, except for accrued interest, capitalized interest, and	735
reserves funded from proceeds received upon the sale of the	736
obligations and except as otherwise expressly provided in the	737
applicable bond proceedings pursuant to written directions by the	738
director. The right of such holders and owners to payment of bond	739
service charges is limited to all or that portion of the pledged	740
receipts and those special funds pledged thereto pursuant to the	741
bond proceedings in accordance with this section, and each such	742
obligation shall bear on its face a statement to that effect.	743

(D) Obligations shall be authorized by resolution or order of	744
the issuing authority and the bond proceedings shall provide for	745
the purpose thereof and the principal amount or amounts, and shall	746
provide for or authorize the manner or agency for determining the	747
principal maturity or maturities, not exceeding twenty-five years	748
from the date of issuance, the interest rate or rates or the	749
maximum interest rate, the date of the obligations and the dates	750
of payment of interest thereon, their denomination, and the	751
establishment within or without the state of a place or places of	752
payment of bond service charges. Sections 9.98 to 9.983 of the	753
Revised Code are applicable to obligations issued under this	754
section, subject to any applicable limitation under section 166.11	755
of the Revised Code. The purpose of such obligations may be stated	756
in the bond proceedings in terms describing the general purpose or	757
purposes to be served. The bond proceedings also shall provide,	758
subject to the provisions of any other applicable bond	759
proceedings, for the pledge of all, or such part as the issuing	760
authority may determine, of the pledged receipts and the	761
applicable special fund or funds to the payment of bond service	762
charges, which pledges may be made either prior or subordinate to	763
other expenses, claims, or payments, and may be made to secure the	764
obligations on a parity with obligations theretofore or thereafter	765
issued, if and to the extent provided in the bond proceedings. The	766
pledged receipts and special funds so pledged and thereafter	767
received by the state are immediately subject to the lien of such	768
pledge without any physical delivery thereof or further act, and	769
the lien of any such pledges is valid and binding against all	770
parties having claims of any kind against the state or any	771
governmental agency of the state, irrespective of whether such	772
parties have notice thereof, and shall create a perfected security	773
interest for all purposes of Chapter 1309. of the Revised Code,	774
without the necessity for separation or delivery of funds or for	775
the filing or recording of the bond proceedings by which such	776
pledge is created or any certificate, statement or other document	777
with respect thereto; and the pledge of such pledged receipts and	778
special funds is effective and the money therefrom and thereof may	779
be applied to the purposes for which pledged without necessity for	780
any act of appropriation. Every pledge, and every covenant and	781
agreement made with respect thereto, made in the bond proceedings	782
may therein be extended to the benefit of the owners and holders	783
of obligations authorized by this section, and to any trustee	784
therefor, for the further security of the payment of the bond	785
service charges.	786

(E) The bond proceedings may contain additional provisions as	787
to:	788

(1) The redemption of obligations prior to maturity at the	789
option of the issuing authority at such price or prices and under	790
such terms and conditions as are provided in the bond proceedings;	791

(2) Other terms of the obligations;

792

(3) Limitations on the issuance of additional obligations;

793

(4) The terms of any trust agreement or indenture securing	794
the obligations or under which the same may be issued;	795

(5) The deposit, investment and application of special funds,	796
and the safeguarding of moneys on hand or on deposit, without	797
regard to Chapter 131. or 135. of the Revised Code, but subject to	798
any special provisions of this chapter, with respect to particular	799
funds or moneys, provided that any bank or trust company which	800
acts as depository of any moneys in the special funds may furnish	801
such indemnifying bonds or may pledge such securities as required	802
by the issuing authority;	803

(6) Any or every provision of the bond proceedings being	804
binding upon such officer, board, commission, authority, agency,	805
department, or other person or body as may from time to time have	806
the authority under law to take such actions as may be necessary	807
to perform all or any part of the duty required by such provision;	808

(7) Any provision that may be made in a trust agreement or	809
indenture;	810

(8) Any other or additional agreements with the holders of	811
the obligations, or the trustee therefor, relating to the	812
obligations or the security therefor, including the assignment of	813
mortgages or other security obtained or to be obtained for loans	814
under section 122.43, 166.07, or 166.16 of the Revised Code.	815

(F) The obligations may have the great seal of the state or a	816
facsimile thereof affixed thereto or printed thereon. The	817
obligations and any coupons pertaining to obligations shall be	818
signed or bear the facsimile signature of the issuing authority.	819
Any obligations or coupons may be executed by the person who, on	820
the date of execution, is the proper issuing authority although on	821
the date of such bonds or coupons such person was not the issuing	822
authority. If the issuing authority whose signature or a facsimile	823
of whose signature appears on any such obligation or coupon ceases	824
to be the issuing authority before delivery thereof, such	825
signature or facsimile is nevertheless valid and sufficient for	826
all purposes as if the former issuing authority had remained the	827
issuing authority until such delivery; and if the seal to be	828
affixed to obligations has been changed after a facsimile of the	829
seal has been imprinted on such obligations, such facsimile seal	830
shall continue to be sufficient as to such obligations and	831
obligations issued in substitution or exchange therefor.	832

(G) All obligations are negotiable instruments and securities	833
under Chapter 1308. of the Revised Code, subject to the provisions	834
of the bond proceedings as to registration. The obligations may be	835
issued in coupon or in registered form, or both, as the issuing	836
authority determines. Provision may be made for the registration	837
of any obligations with coupons attached thereto as to principal	838
alone or as to both principal and interest, their exchange for	839
obligations so registered, and for the conversion or reconversion	840
into obligations with coupons attached thereto of any obligations	841
registered as to both principal and interest, and for reasonable	842
charges for such registration, exchange, conversion, and	843
reconversion.	844

(H) Obligations may be sold at public sale or at private	845
sale, as determined in the bond proceedings.	846

Obligations issued to provide moneys for the loan guarantee	847
fund or the innovation Ohio loan guarantee fund may, as determined	848
by the issuing authority, be sold at private sale, and without	849
publication of a notice of sale.	850

(I) Pending preparation of definitive obligations, the	851
issuing authority may issue interim receipts or certificates which	852
shall be exchanged for such definitive obligations.	853

(J) In the discretion of the issuing authority, obligations	854
may be secured additionally by a trust agreement or indenture	855
between the issuing authority and a corporate trustee which may be	856
any trust company or bank having its principal place of business	857
within the state. Any such agreement or indenture may contain the	858
resolution or order authorizing the issuance of the obligations,	859
any provisions that may be contained in any bond proceedings, and	860
other provisions which are customary or appropriate in an	861
agreement or indenture of such type, including, but not limited	862
to:	863

(1) Maintenance of each pledge, trust agreement, indenture,	864
or other instrument comprising part of the bond proceedings until	865
the state has fully paid the bond service charges on the	866
obligations secured thereby, or provision therefor has been made;	867

(2) In the event of default in any payments required to be	868
made by the bond proceedings, or any other agreement of the	869
issuing authority made as a part of the contract under which the	870
obligations were issued, enforcement of such payments or agreement	871
by mandamus, the appointment of a receiver, suit in equity, action	872
at law, or any combination of the foregoing;	873

(3) The rights and remedies of the holders of obligations and	874
of the trustee, and provisions for protecting and enforcing them,	875
including limitations on rights of individual holders of	876
obligations;	877

(4) The replacement of any obligations that become mutilated	878
or are destroyed, lost, or stolen;	879

(5) Such other provisions as the trustee and the issuing	880
authority agree upon, including limitations, conditions, or	881
qualifications relating to any of the foregoing.	882

(K) Any holders of obligations or trustees under the bond	883
proceedings, except to the extent that their rights are restricted	884
by the bond proceedings, may by any suitable form of legal	885
proceedings, protect and enforce any rights under the laws of this	886
state or granted by such bond proceedings. Such rights include the	887
right to compel the performance of all duties of the issuing	888
authority, the director of development, or the division of liquor	889
control required by this chapter or the bond proceedings; to	890
enjoin unlawful activities; and in the event of default with	891
respect to the payment of any bond service charges on any	892
obligations or in the performance of any covenant or agreement on	893
the part of the issuing authority, the director of development, or	894
the division of liquor control in the bond proceedings, to apply	895
to a court having jurisdiction of the cause to appoint a receiver	896
to receive and administer the pledged receipts and special funds,	897
other than those in the custody of the treasurer of state, which	898
are pledged to the payment of the bond service charges on such	899
obligations or which are the subject of the covenant or agreement,	900
with full power to pay, and to provide for payment of bond service	901
charges on, such obligations, and with such powers, subject to the	902
direction of the court, as are accorded receivers in general	903
equity cases, excluding any power to pledge additional revenues or	904
receipts or other income or moneys of the issuing authority or the	905
state or governmental agencies of the state to the payment of such	906
principal and interest and excluding the power to take possession	907
of, mortgage, or cause the sale or otherwise dispose of any	908
project facilities.	909

Each duty of the issuing authority and the issuing	910
authority's officers and employees, and of each governmental	911
agency and its officers, members, or employees, undertaken	912
pursuant to the bond proceedings or any agreement or lease,	913
lease-purchase agreement, or loan made under authority of this	914
chapter, and in every agreement by or with the issuing authority,	915
is hereby established as a duty of the issuing authority, and of	916
each such officer, member, or employee having authority to perform	917
such duty, specifically enjoined by the law resulting from an	918
office, trust, or station within the meaning of section 2731.01 of	919
the Revised Code.	920

The person who is at the time the issuing authority, or the	921
issuing authority's officers or employees, are not liable in their	922
personal capacities on any obligations issued by the issuing	923
authority or any agreements of or with the issuing authority.	924

(L) The issuing authority may authorize and issue obligations	925
for the refunding, including funding and retirement, and advance	926
refunding with or without payment or redemption prior to maturity,	927
of any obligations previously issued by the issuing authority.	928
Such obligations may be issued in amounts sufficient for payment	929
of the principal amount of the prior obligations, any redemption	930
premiums thereon, principal maturities of any such obligations	931
maturing prior to the redemption of the remaining obligations on a	932
parity therewith, interest accrued or to accrue to the maturity	933
dates or dates of redemption of such obligations, and any	934
allowable costs including expenses incurred or to be incurred in	935
connection with such issuance and such refunding, funding, and	936
retirement. Subject to the bond proceedings therefor, the portion	937
of proceeds of the sale of obligations issued under this division	938
to be applied to bond service charges on the prior obligations	939
shall be credited to an appropriate account held by the trustee	940
for such prior or new obligations or to the appropriate account in	941
the bond service fund for such obligations. Obligations authorized	942
under this division shall be deemed to be issued for those	943
purposes for which such prior obligations were issued and are	944
subject to the provisions of this section pertaining to other	945
obligations, except as otherwise provided in this section;	946
provided that, unless otherwise authorized by the general	947
assembly, any limitations imposed by the general assembly pursuant	948
to this section with respect to bond service charges applicable to	949
the prior obligations shall be applicable to the obligations	950
issued under this division to refund, fund, advance refund or	951
retire such prior obligations.	952

(M) The authority to issue obligations under this section	953
includes authority to issue obligations in the form of bond	954
anticipation notes and to renew the same from time to time by the	955
issuance of new notes. The holders of such notes or interest	956
coupons pertaining thereto shall have a right to be paid solely	957
from the pledged receipts and special funds that may be pledged to	958
the payment of the bonds anticipated, or from the proceeds of such	959
bonds or renewal notes, or both, as the issuing authority provides	960
in the resolution or order authorizing such notes. Such notes may	961
be additionally secured by covenants of the issuing authority to	962
the effect that the issuing authority and the state will do such	963
or all things necessary for the issuance of such bonds or renewal	964
notes in appropriate amount, and apply the proceeds thereof to the	965
extent necessary, to make full payment of the principal of and	966
interest on such notes at the time or times contemplated, as	967
provided in such resolution or order. For such purpose, the	968
issuing authority may issue bonds or renewal notes in such	969
principal amount and upon such terms as may be necessary to	970
provide funds to pay when required the principal of and interest	971
on such notes, notwithstanding any limitations prescribed by or	972
for purposes of this section. Subject to this division, all	973
provisions for and references to obligations in this section are	974
applicable to notes authorized under this division.	975

The issuing authority in the bond proceedings authorizing the	976
issuance of bond anticipation notes shall set forth for such bonds	977
an estimated interest rate and a schedule of principal payments	978
for such bonds and the annual maturity dates thereof, and for	979
purposes of any limitation on bond service charges prescribed	980
under division (A) of section 166.11 of the Revised Code, the	981
amount of bond service charges on such bond anticipation notes is	982
deemed to be the bond service charges for the bonds anticipated	983
thereby as set forth in the bond proceedings applicable to such	984
notes, but this provision does not modify any authority in this	985
section to pledge receipts and special funds to, and covenant to	986
issue bonds to fund, the payment of principal of and interest and	987
any premium on such notes.	988

(N) Obligations issued under this section are lawful	989
investments for banks, societies for savings, savings and loan	990
associations, deposit guarantee associations, trust companies,	991
trustees, fiduciaries, insurance companies, including domestic for	992
life and domestic not for life, trustees or other officers having	993
charge of sinking and bond retirement or other special funds of	994
political subdivisions and taxing districts of this state, the	995
commissioners of the sinking fund of the state, the administrator	996
of workers' compensation, the state teachers retirement system,	997
the public employees retirement system, the school employees	998
retirement system, and the Ohio police and fire pension fund,	999
notwithstanding any other provisions of the Revised Code or rules	1000
adopted pursuant thereto by any governmental agency of the state	1001
with respect to investments by them, and are also acceptable as	1002
security for the deposit of public moneys.	1003

(O) Unless otherwise provided in any applicable bond	1004
proceedings, moneys to the credit of or in the special funds	1005
established by or pursuant to this section may be invested by or	1006
on behalf of the issuing authority only in notes, bonds, or other	1007
obligations of the United States, or of any agency or	1008
instrumentality of the United States, obligations guaranteed as to	1009
principal and interest by the United States, obligations of this	1010
state or any political subdivision of this state, and certificates	1011
of deposit of any national bank located in this state and any	1012
bank, as defined in section 1101.01 of the Revised Code, subject	1013
to inspection by the superintendent of banks. If the law or the	1014
instrument creating a trust pursuant to division (J) of this	1015
section expressly permits investment in direct obligations of the	1016
United States or an agency of the United States, unless expressly	1017
prohibited by the instrument, such moneys also may be invested in	1018
no-front-end-load money market mutual funds consisting exclusively	1019
of obligations of the United States or an agency of the United	1020
States and in repurchase agreements, including those issued by the	1021
fiduciary itself, secured by obligations of the United States or	1022
an agency of the United States; and in common trust funds	1023
established in accordance with section 1111.20 of the Revised Code	1024
and consisting exclusively of any such securities, notwithstanding	1025
division (A)(4) of that section. The income from such investments	1026
shall be credited to such funds as the issuing authority	1027
determines, and such investments may be sold at such times as the	1028
issuing authority determines or authorizes.	1029

(P) Provision may be made in the applicable bond proceedings	1030
for the establishment of separate accounts in the bond service	1031
fund and for the application of such accounts only to the	1032
specified bond service charges on obligations pertinent to such	1033
accounts and bond service fund and for other accounts therein	1034
within the general purposes of such fund. Unless otherwise	1035
provided in any applicable bond proceedings, moneys to the credit	1036
of or in the several special funds established pursuant to this	1037
section shall be disbursed on the order of the treasurer of state,	1038
provided that no such order is required for the payment from the	1039
bond service fund when due of bond service charges on obligations.	1040

(Q) The issuing authority may pledge all, or such portion as	1041
the issuing authority determines, of the pledged receipts to the	1042
payment of bond service charges on obligations issued under this	1043
section, and for the establishment and maintenance of any	1044
reserves, as provided in the bond proceedings, and make other	1045
provisions therein with respect to pledged receipts as authorized	1046
by this chapter, which provisions are controlling notwithstanding	1047
any other provisions of law pertaining thereto.	1048

(R) The issuing authority may covenant in the bond	1049
proceedings, and any such covenants are controlling	1050
notwithstanding any other provision of law, that the state and	1051
applicable officers and governmental agencies of the state,	1052
including the general assembly, so long as any obligations are	1053
outstanding, shall:	1054

(1) Maintain statutory authority for and cause to be charged	1055
and collected wholesale and retail prices for spirituous liquor	1056
sold by the state or its agents so that the pledged receipts are	1057
sufficient in amount to meet bond service charges, and the	1058
establishment and maintenance of any reserves and other	1059
requirements provided for in the bond proceedings, and, as	1060
necessary, to meet covenants contained in contracts of guarantee	1061
made under section 166.06 of the Revised Code;	1062

(2) Take or permit no action, by statute or otherwise, that	1063
would impair the exemption from federal income taxation of the	1064
interest on the obligations.	1065

(S) There is hereby created the economic development bond	1066
service fund, which shall be in the custody of the treasurer of	1067
state but shall be separate and apart from and not a part of the	1068
state treasury. All moneys received by or on account of the	1069
issuing authority or state agencies and required by the applicable	1070
bond proceedings, consistent with this section, to be deposited,	1071
transferred, or credited to a bond service fund or the economic	1072
development bond service fund, and all other moneys transferred or	1073
allocated to or received for the purposes of the fund, shall be	1074
deposited and credited to such fund and to any separate accounts	1075
therein, subject to applicable provisions of the bond proceedings,	1076
but without necessity for any act of appropriation. During the	1077
period beginning with the date of the first issuance of	1078
obligations and continuing during such time as any such	1079
obligations are outstanding, and so long as moneys in the	1080
pertinent bond service funds are insufficient to pay all bond	1081
services charges on such obligations becoming due in each year, a	1082
sufficient amount of the gross profit on the sale of spirituous	1083
liquor included in pledged receipts are committed and shall be	1084
paid to the bond service fund or economic development bond service	1085
fund in each year for the purpose of paying the bond service	1086
charges becoming due in that year without necessity for further	1087
act of appropriation for such purpose and notwithstanding anything	1088
to the contrary in Chapter 4301. of the Revised Code. The economic	1089
development bond service fund is a trust fund and is hereby	1090
pledged to the payment of bond service charges to the extent	1091
provided in the applicable bond proceedings, and payment thereof	1092
from such fund shall be made or provided for by the treasurer of	1093
state in accordance with such bond proceedings without necessity	1094
for any act of appropriation.	1095

(T) The obligations, the transfer thereof, and the income	1096
therefrom, including any profit made on the sale thereof, shall at	1097
all times be free from taxation within the state.	1098

Sec. 166.11. (A) The aggregate principal amount of project	1099
financing obligations that may be issued under section 166.08 of	1100
the Revised Code is three hundred million dollars, plus the	1101
principal amount of such project financing obligations retired by	1102
payments. The aggregate principal amount of obligations, exclusive	1103
of project financing obligations, that may be issued under section	1104
166.08 of the Revised Code is ~~three~~five hundred million dollars,	1105
plus the principal amount of any such obligations retired by	1106
payment, the amounts held or obligations pledged for the payment	1107
of the principal amount of any such obligations outstanding,	1108
amounts in special funds held as reserves to meet bond service	1109
charges, and amounts of obligations issued to provide moneys	1110
required to meet payments from the loan guarantee fund created in	1111
section 166.06 of the Revised Code and the innovation Ohio loan	1112
guarantee fund created in section 166.15 of the Revised Code, and	1113
minus the amount if any by which four per cent of the unpaid	1114
principal amount of loan repayments guaranteed under section	1115
166.06 of the Revised Code exceeds the amount in the loan	1116
guarantee fund. The terms of the obligations issued under section	1117
166.08 of the Revised Code, other than obligations issued to meet	1118
guarantees that cannot be satisfied from amounts then held in the	1119
loan guarantee fund, shall be such that the aggregate amount of	1120
moneys used from profit from the sale of spirituous liquor, and	1121
not from other sources, in any fiscal year shall not exceed	1122
~~twenty-five~~forty-five million dollars. For purposes of the	1123
preceding sentence, "other sources" include the annual investment	1124
income on special funds to the extent it will be available for	1125
payment of any bond service charges in lieu of use of profit from	1126
the sale of spirituous liquor, and shall be estimated on the basis	1127
of the expected funding of those special funds and assumed	1128
investment earnings thereon at a rate equal to the weighted	1129
average yield on investments of those special funds determined as	1130
of any date within sixty days immediately preceding the date of	1131
issuance of the bonds in respect of which the determination is	1132
being made. The determinations required by this division shall be	1133
made by the treasurer of state at the time of issuance of an issue	1134
of obligations and shall be conclusive for purposes of such issue	1135
of obligations from and after their issuance and delivery.	1136

(B) The aggregate amount of the guaranteed portion of the	1137
unpaid principal of loans guaranteed under sections 166.06 and	1138
166.15 of the Revised Code and the unpaid principal of loans made	1139
under sections 166.07 ~~and~~, 166.16, and 166.21 of the Revised Code	1140
may not at any time exceed ~~seven~~eight hundred million dollars. Of	1141
that ~~seven~~eight hundred million dollars, the aggregate amount of	1142
the guaranteed portion of the unpaid principal of loans guaranteed	1143
under sections 166.06 and 166.15 of the Revised Code shall not at	1144
any time exceed two hundred million dollars. However, the	1145
limitations established under this division do not apply to loans	1146
made with proceeds from the issuance and sale of project financing	1147
obligations.	1148

Sec. 166.13. (A) Prior to entering into each agreement to	1149
provide innovation financial assistance under sections 166.12,	1150
166.15, and 166.16 of the Revised Code, the director of	1151
development shall determine whether the assistance will conform to	1152
the requirements of sections 166.12 to 166.16 of the Revised Code.	1153
Such determination, and the facts upon which it is based, shall be	1154
set forth by the director in submissions made to the controlling	1155
board for purposes of section 166.16 of the Revised Code and to	1156
the development ~~finance~~financing advisory council under section	1157
166.14 of the Revised Code. An agreement to provide assistance	1158
under sections 166.12, 166.15, and 166.16 of the Revised Code	1159
shall set forth the determination, which shall be conclusive for	1160
purposes of the validity and enforceability of the agreement and	1161
any innovation loan guarantees, innovation loans, or other	1162
agreements entered into pursuant to the agreement to provide	1163
innovation financial assistance.	1164

(B) Whenever a person applies for innovation financial	1165
assistance under sections 166.12, 166.15, and 166.16 of the	1166
Revised Code and the eligible innovation project for which	1167
innovation financial assistance is requested is to relocate an	1168
eligible innovation project that is currently being operated by	1169
the person and that is located in another county, municipal	1170
corporation, or township, the director shall provide written	1171
notification to the appropriate local governmental bodies and	1172
state officials. The notification shall contain the following	1173
information:	1174

(1) The name of the person applying for innovation financial	1175
assistance;	1176

(2) The county, and the municipal corporation or township, in	1177
which the eligible innovation project for which innovation	1178
financial assistance is requested is located; and	1179

(3) The county, and the municipal corporation or township, in	1180
which the eligible innovation project to be replaced is located.	1181

The director shall provide the written notification to the	1182
appropriate local governmental bodies and state officials so that	1183
they receive the notification at least five days before the	1184
development ~~finance~~financing advisory council meeting at which	1185
the council considers the request for innovation financial	1186
assistance pursuant to sections 166.12, 166.15, and 166.16 of the	1187
Revised Code.	1188

1189

(1) "Appropriate local governmental bodies" means:

1190

(a) The boards of county commissioners or legislative	1191
authorities of the county in which the project for which	1192
innovation financial assistance is requested is located and of the	1193
county in which the eligible innovation project to be replaced is	1194
located;	1195

(b) The legislative authority of the municipal corporation or	1196
the board of township trustees of the township in which the	1197
eligible innovation project for which innovation financial	1198
assistance is requested is located; and	1199

(c) The legislative authority of the municipal corporation or	1200
the board of township trustees of the township in which the	1201
eligible innovation project to be replaced is located.	1202

(2) "State officials" means:

1203

(a) The state representative and state senator in whose	1204
districts the project for which innovation financial assistance is	1205
requested is located;	1206

(b) The state representative and state senator in whose	1207
districts the innovation project to be replaced is located.	1208

Sec. 166.14. (A) In determining the eligible innovation	1209
projects to be assisted and the nature, amount, and terms of	1210
innovation financial assistance to be provided for an eligible	1211
innovation project under sections 166.12 to 166.16 of the Revised	1212
Code:	1213

(1) The director of development shall take into consideration	1214
all of the following:	1215

(a) The number of jobs to be created or preserved by the	1216
eligible innovation project, directly or indirectly;	1217

(b) Payrolls, and the taxes generated, at both state and	1218
local levels, by or in connection with the eligible innovation	1219
project and by the employment created or preserved by or in	1220
connection with the eligible innovation project;	1221

(c) The size, nature, and cost of the eligible innovation	1222
project, including the prospect of the eligible innovation project	1223
for providing long-term jobs in enterprises consistent with the	1224
changing economics of the state and the nation;	1225

(d) The needs of any private sector enterprise to be	1226
assisted;	1227

(e) The amount and kind of assistance, if any, to be provided	1228
to the private sector enterprise by other governmental agencies	1229
through tax exemption or abatement, financing assistance with	1230
industrial development bonds, and otherwise, with respect to the	1231
eligible innovation project or with respect to any providers of	1232
innovation property to be included as part of the eligible	1233
innovation project;	1234

(f) The likelihood of the successful implementation of the	1235
proposed eligible innovation project;	1236

(g) Whether the eligible innovation project involves the use	1237
of technology in a targeted innovation industry sector.	1238

(2) The benefits to the local area, including taxes, jobs,	1239
and reduced unemployment and reduced welfare costs, among others,	1240
may be accorded value in the leasing or sales of innovation	1241
project facilities and in loan and guarantee arrangements.	1242

(3) In making determinations under division (A)(1) of this	1243
section, the director may consider the effect of an eligible	1244
innovation project upon any entity engaged to provide innovation	1245
property to be acquired, leased, or licensed in connection with	1246
such assistance.	1247

(B) The director shall submit to the development ~~finance~~	1248
financing advisory council data pertinent to the considerations	1249
set forth in division (A) of this section, the terms of the	1250
proposed innovation financial assistance, and such other relevant	1251
information as the council may request.	1252

(C) The development ~~finance~~financing advisory council, on	1253
the basis of such data, shall make recommendations as to the	1254
appropriateness of the innovation financial assistance to be	1255
provided. The recommendations may be revised to reflect any	1256
changes in the proposed innovation financial assistance as the	1257
director may submit to the council. The recommendations, as	1258
amended, of the council as to the appropriateness of the proposed	1259
innovation financial assistance shall be submitted to the	1260
controlling board.	1261

(D) Financial statements and other data submitted to the	1262
director of development, the development ~~finance~~financing	1263
advisory council, or the controlling board by any private sector	1264
person in connection with innovation financial assistance under	1265
sections 166.12, 166.15, and 166.16 of the Revised Code, or any	1266
information taken from such statements or data for any purpose,	1267
shall not be open to public inspection. The development ~~finance~~	1268
financing advisory council in considering confidential information	1269
in connection with innovation financial assistance under this	1270
chapter may, only for consideration of the confidential	1271
information referred to, and in the manner provided in division	1272
(E) of section 121.22 of the Revised Code, close the meeting	1273
during such consideration.	1274

Sec. 166.16. (A) The director of development, with the	1275
approval of the controlling board and subject to the other	1276
applicable provisions of this chapter, may lend moneys in the	1277
innovation Ohio loan fund to persons for the purpose of paying	1278
allowable innovation costs of an eligible innovation project if	1279
the director determines that:	1280

(1) The project is an eligible innovation project and is	1281
economically sound.	1282

(2) The borrower is unable to finance the necessary allowable	1283
costs through ordinary financial channels upon comparable terms.	1284

(3) The amount to be lent from the innovation Ohio loan fund	1285
will not exceed ninety per cent of the total costs of the eligible	1286
innovation project.	1287

(4) The repayment of the loan from the innovation Ohio loan	1288
fund will be secured by a mortgage, lien, assignment, or pledge,	1289
or other interest in property or innovation property at such level	1290
of priority and value as the director may determine necessary,	1291
provided that, in making such a determination, the director may	1292
take into account the value of any rights granted by the borrower	1293
to the director to control the use of any property or innovation	1294
property of the borrower under the circumstances described in the	1295
loan documents.	1296

(B) The determinations of the director under division (A) of	1297
this section shall be conclusive for purposes of the validity of a	1298
loan commitment evidenced by a loan agreement signed by the	1299
director.	1300

(C) Fees, charges, rates of interest, times of payment of	1301
interest and principal, and other terms, conditions, and	1302
provisions of and security for loans made from the innovation Ohio	1303
loan fund shall be such as the director determines to be	1304
appropriate and in furtherance of the purpose for which the loans	1305
are made. The moneys used in making the loans shall be disbursed	1306
from the innovation Ohio loan fund upon order of the director.	1307
Unless otherwise specified in any indenture or other instrument	1308
securing obligations under division (D) of section 166.08 of the	1309
Revised Code, any payments of principal and interest from loans	1310
made from the innovation Ohio loan fund shall be paid to the	1311
innovation Ohio loan fund and used for the purpose of making	1312
loans.	1313

(D) The innovation Ohio loan fund is hereby created as a	1314
special revenue fund and a trust fund which shall be in the	1315
custody of the treasurer of state but shall be separate and apart	1316
from and not a part of the state treasury. The fund shall consist	1317
of all grants, gifts, and contributions of moneys or rights to	1318
moneys lawfully designated for or deposited in such fund, all	1319
moneys and rights to moneys lawfully appropriated and transferred	1320
to such fund, including moneys received from the issuance of	1321
obligations under section 166.08 of the Revised Code, and moneys	1322
deposited to such fund pursuant to divisions (C) and ~~(G)~~(H) of	1323
this section. The innovation Ohio loan fund shall not be	1324
comprised, in any part, of moneys raised by taxation.	1325

(E) The director may take actions necessary or appropriate to	1326
collect or otherwise deal with any loan made under this section.	1327

(F) The director may fix service charges for the making of a	1328
loan. The charges shall be payable at such times and place and in	1329
such amounts and manner as may be prescribed by the director.	1330

(G) The treasurer of state shall serve as an agent for the	1331
director in the making of deposits and withdrawals and maintenance	1332
of records pertaining to the innovation Ohio loan fund.	1333

(H)(1) There shall be credited to the innovation Ohio loan	1334
fund the moneys received by this state from the repayment of	1335
innovation Ohio loans and recovery on loan guarantees, including	1336
interest thereon, made from the innovation Ohio loan fund or from	1337
the innovation Ohio loan guarantee fund and from the sale, lease,	1338
or other disposition of property acquired or constructed ~~from~~with	1339
moneys in the innovation Ohio loan fund with moneys derived from	1340
the proceeds of the sale of obligations under section 166.08 of	1341
the Revised Code. Such moneys shall be applied as provided in this	1342
chapter pursuant to appropriations made by the general assembly.	1343

(2) Notwithstanding division (H)(1) of this section, any	1344
amounts recovered on innovation Ohio loan guarantees shall be	1345
deposited to the credit of the innovation Ohio loan guarantee fund	1346
to the extent necessary to restore that fund to the innovation	1347
Ohio loan guarantee reserve requirement or any level in excess	1348
thereof required by any guarantee contract. Money in the	1349
innovation Ohio loan guarantee fund in excess of the innovation	1350
Ohio loan guarantee reserve requirement, but subject to the	1351
provisions and requirements of any guarantee contracts, may be	1352
transferred to the innovation Ohio loan fund by the treasurer of	1353
state upon the order of the director of development.	1354

(3) In addition to the requirements of division (H)(1) of	1355
this section, moneys referred to in that division may be deposited	1356
to the credit of separate accounts within the innovation Ohio loan	1357
fund or in the bond service fund and pledged to the security of	1358
obligations, applied to the payment of bond service charges	1359
without need for appropriation, released from any such pledge and	1360
transferred to the innovation Ohio loan fund, all as and to the	1361
extent provided in the bond proceedings pursuant to written	1362
directions by the director of development. Accounts may be	1363
established by the director in the innovation Ohio loan fund for	1364
particular projects or otherwise. Income from the investment of	1365
moneys in the innovation Ohio loan fund shall be credited to that	1366
fund and, as may be provided in bond proceedings, to particular	1367
accounts in that fund. The treasurer of state may withdraw from	1368
the innovation Ohio loan fund or, subject to provisions of the	1369
applicable bond proceedings, from any special funds established	1370
pursuant to the bond proceedings, or from any accounts in such	1371
funds, any amounts of investment income required to be rebated and	1372
paid to the federal government in order to maintain the exemption	1373
from federal income taxation of interest on obligations issued	1374
under this chapter, which withdrawal and payment may be made	1375
without necessity for appropriation.	1376

Sec. 166.17. (A) The general assembly finds that in order to	1377
enhance the economic opportunities available to all the people of	1378
the state and to maintain and enhance the competitiveness of the	1379
Ohio economy and to improve the economic welfare of the people of	1380
the state, it is necessary to ensure that the people of the state	1381
will continue to have access to high-value jobs in technology, and	1382
that in order to facilitate such continued access, it is necessary	1383
to provide incentives to ensure the retention and attraction of	1384
businesses that will develop new or improved technologies,	1385
processes, and products, or apply existing technologies in new	1386
ways. Further, the general assembly finds that the attraction of	1387
such jobs and their presence in this state will materially	1388
contribute to the economic welfare of all the people of the state.	1389
Accordingly, it is declared to be the public policy of this state,	1390
through the operations under sections 166.17 to 166.21, 5733.352,	1391
and 5747.331 of the Revised Code, and the provisions for financial	1392
assistance contained in those sections, applicable laws adopted	1393
pursuant to Ohio Constitution, Article VIII, Section 13, and other	1394
authority vested in the general assembly, to assist in and	1395
facilitate the establishment or development of eligible research	1396
and development projects or assist and cooperate with any	1397
governmental agency in achieving that purpose.	1398

(B) In furtherance of that public policy and to implement	1399
that purpose, the director of development may do any of the	1400
following:	1401

(1) After consultation with appropriate governmental	1402
agencies, enter into agreements with persons engaged in industry,	1403
commerce, distribution, or research and with governmental agencies	1404
to induce such persons to acquire, construct, reconstruct,	1405
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	1406
otherwise develop, eligible research and development projects, or	1407
to enable governmental agencies to acquire, construct,	1408
reconstruct, rehabilitate, renovate, enlarge, improve, equip, or	1409
furnish, or otherwise develop, eligible research and development	1410
projects for lease to persons engaged in industry, commerce,	1411
distribution, or research;	1412

(2) Provide for loans under section 166.21 of the Revised	1413
Code to finance eligible research and development projects;	1414

(3) Subject to the release of such moneys by the controlling	1415
board, contract for labor and materials needed for, or contract	1416
with others, including governmental agencies, to provide eligible	1417
research and development projects, the allowable costs of which	1418
are to be paid for or reimbursed from moneys in the research and	1419
development loan fund, and contract for the operation of such	1420
eligible research and development projects;	1421

(4) Subject to release thereof by the controlling board, from	1422
moneys in the research and development loan fund, acquire or	1423
contract to acquire by gift, exchange, or purchase, including the	1424
obtaining and exercise of purchase options, property, and convey	1425
or otherwise dispose of, or provide for the conveyance or	1426
disposition of, property so acquired or contracted to be acquired	1427
by sale, exchange, lease, lease purchase, conditional or	1428
installment sale, transfer, or other disposition, including the	1429
grant of an option to purchase, to any governmental agency or to	1430
any other person without necessity for competitive bidding and	1431
upon such terms and conditions and manner of consideration	1432
pursuant to, and as the director determines to be appropriate to	1433
satisfy the objectives of, Chapter 166. of the Revised Code;	1434

(5) Retain the services of or employ financial consultants,	1435
appraisers, consulting engineers, superintendents, managers,	1436
construction and accounting experts, attorneys, and employees,	1437
agents, and independent contractors as are necessary in the	1438
director's judgment and fix the compensation for their services;	1439

(6) Receive and accept from any person, grants, gifts, and	1440
contributions of money, property, labor, and other things of	1441
value, to be held, used, and applied only for the purpose for	1442
which such grants, gifts, and contributions are made;	1443

(7) Enter into appropriate arrangements and agreements with	1444
any governmental agency for the taking or provision by that	1445
governmental agency of any governmental action with respect to	1446
eligible research and development projects;	1447

(8) Do all other acts and enter into contracts, execute all	1448
instruments, and make all certifications necessary or appropriate	1449
to carry out sections 166.01, 166.17 to 166.20, 5733.352, and	1450
5747.331 of the Revised Code;	1451

(9) With respect to property that is the subject of or	1452
related to research and development financial assistance, take	1453
such interests, including, but not limited to, mortgages, security	1454
interests, leasehold interests, assignments, and exclusive or	1455
non-exclusive licenses, as may be necessary or appropriate under	1456
the circumstances, to ensure that such property is used within	1457
this state and that products or services associated with that	1458
property are produced or, in the case of services, delivered, by	1459
persons employed within this state;	1460

(10) Adopt rules necessary to implement any of the provisions	1461
of sections 166.17 to 166.21, 5733.352, and 5747.331 of the	1462
Revised Code applicable to the director.	1463

(C) The determination by the director that facilities or	1464
property constitute eligible research and development projects and	1465
that the costs of such facilities or property are allowable costs	1466
related to an eligible research and development project, and all	1467
other determinations relevant thereto or to an action taken or	1468
agreement entered into, shall be conclusive for purposes of the	1469
validity and enforceability of rights of parties arising from	1470
actions taken and agreements entered into under sections 166.17 to	1471
166.21, 5733.352, and 5747.331 of the Revised Code.	1472

Sec. 166.18. (A) Prior to entering into each agreement to	1473
provide research and development financial assistance, the	1474
director of development shall determine whether the assistance	1475
will conform to the requirements of sections 166.17 to 166.21,	1476
5733.352, and 5747.331 of the Revised Code. Such determination,	1477
and the facts upon which it is based, shall be set forth by the	1478
director in submissions made to the controlling board for purposes	1479
of section 166.17 of the Revised Code and to the development	1480
financing advisory council under section 166.19 of the Revised	1481
Code. An agreement to provide research and development financial	1482
assistance under section 166.17 or 166.21 of the Revised Code	1483
shall set forth the determination, which shall be conclusive for	1484
purposes of the validity and enforceability of the agreement and	1485
any loans or other agreements entered into pursuant to the	1486
agreement to provide research and development financial	1487
assistance.	1488

(B) Whenever a person applies for research and development	1489
financial assistance and the eligible research and development	1490
project for which the research and development financial	1491
assistance is requested is to relocate an eligible research and	1492
development project that is currently being operated by the person	1493
and that is located in another county, municipal corporation, or	1494
township within the state, the director shall provide written	1495
notification to the appropriate local governmental bodies and	1496
state officials. The notification shall state:	1497

(1) The name of the person applying for research and	1498
development financial assistance;	1499

(2) The county, and the municipal corporation or township, in	1500
which the project for which research and development financial	1501
assistance is requested is located; and	1502

(3) The county, and the municipal corporation or township, in	1503
which the eligible research and development project to be replaced	1504
is located.	1505

The director shall provide the written notification to the	1506
appropriate local governmental bodies and state officials so that	1507
they receive the notification at least five days before the	1508
development financing advisory council meeting at which the	1509
council considers the request for research and development	1510
financial assistance.	1511

1512

(1) "Appropriate local governmental bodies" means:

1513

(a) The board of county commissioners of or legislative	1514
authorities of special districts in the county in which the	1515
project for which research and development financial assistance is	1516
requested is located and of the county in which the eligible	1517
research and development project to be replaced is located;	1518

(b) The legislative authority of the municipal corporation or	1519
the board of township trustees of the township in which the	1520
eligible research and development project for which research and	1521
development financial assistance is requested is located; and	1522

(c) The legislative authority of the municipal corporation or	1523
the board of township trustees of the township in which the	1524
eligible research and development project to be replaced is	1525
located.	1526

(2) "State officials" means:

1527

(a) The state representative and state senator in whose	1528
district the eligible research and development project for which	1529
research and development financial assistance is requested is	1530
located; and	1531

(b) The state representative and state senator in whose	1532
district the eligible research and development project to be	1533
replaced is located.	1534

Sec. 166.19. (A) In determining the eligible research and	1535
development projects to be assisted and the nature, amount, and	1536
terms of the research and development financial assistance to be	1537
provided:	1538

(1) The director of development shall consider:

1539

(a) The number of jobs to be created or preserved, directly	1540
or indirectly, by or in connection with the eligible research and	1541
development project;	1542

(b) Payrolls, and the taxes generated at both state and local	1543
levels, by the eligible research and development project and by	1544
the employment created or preserved by or in connection with the	1545
eligible research and development project;	1546

(c) The size, nature, and cost of the eligible research and	1547
development project;	1548

(d) The likelihood that the eligible research and development	1549
project will create long-term jobs in enterprises consistent with	1550
the changing economics of the state and nation;	1551

(e) The needs of any private sector enterprise to be	1552
assisted, taking into consideration the amount and kind of	1553
assistance, if any, to be provided to the private sector	1554
enterprise by other governmental agencies through tax exemption or	1555
abatement, financing assistance with industrial development bonds,	1556
and otherwise, with respect to the eligible research and	1557
development project or with respect to any providers of research	1558
and development property to be included as part of the eligible	1559
research and development project; and	1560

(f) The likelihood that the eligible research and development	1561
project will be successfully implemented.	1562

(2) The director may consider the benefits to the local area,	1563
including taxes, jobs, and reduced unemployment and reduced	1564
welfare costs, in the leasing or sale of eligible research and	1565
development project facilities and in loan arrangements.	1566

(3) The director may consider the effect of an eligible	1567
research and development project upon any entity engaged to	1568
provide research and development property to be acquired, leased,	1569
or licensed in connection with research and development financial	1570
assistance.	1571

(B) The director shall submit to the development financing	1572
advisory council data pertinent to the considerations set forth in	1573
division (A) of this section, the terms of the proposed research	1574
and development assistance, and such other relevant information as	1575
the council may request.	1576

(C) The development financing advisory council, on the basis	1577
of the data submitted under division (B) of this section, shall	1578
make recommendations as to the appropriateness of the research and	1579
development financial assistance to be provided. The	1580
recommendations may be revised to reflect any changes in the	1581
proposed research and development financial assistance as the	1582
director may submit to the council. The recommendations, as	1583
amended, of the council as to the appropriateness of the proposed	1584
research and development financial assistance shall be submitted	1585
to the controlling board.	1586

(D) Financial statements and other data submitted to the	1587
director of development, the development financing advisory	1588
council, or the controlling board by any private sector person in	1589
connection with research and development financial assistance, or	1590
any information taken from such statements or data for any	1591
purpose, shall not be open to public inspection. The development	1592
financing advisory council in considering confidential information	1593
in connection with research and development financial assistance	1594
may, only for consideration of the confidential information	1595
referred to, and in the manner provided in division (E) of section	1596
121.22 of the Revised Code, close the meeting during such	1597
consideration.	1598

Sec. 166.20. The research and development loan fund is hereby	1599
created as a special revenue fund and a trust fund which shall be	1600
in the custody of the treasurer of state but shall be separate and	1601
apart from and not a part of the state treasury. The fund shall	1602
consist of moneys derived from the sale of obligations under	1603
section 166.08 of the Revised Code; moneys deposited to the	1604
research and development fund under section 166.21 of the Revised	1605
Code; and any grants, gifts, or contributions of money received by	1606
the director of development to be used for making loans under	1607
section 166.21 of the Revised Code. The fund shall not be	1608
comprised, in any part, of moneys raised by taxation. The	1609
treasurer of state shall serve as an agent for the director in the	1610
making of deposits and withdrawals and maintenance of records	1611
pertaining to the fund.	1612

Sec. 166.21. (A) The director of development, with the	1613
approval of the controlling board and subject to other applicable	1614
provisions of this chapter, may lend moneys in the research and	1615
development loan fund to persons for the purpose of paying	1616
allowable costs of eligible research and development projects if	1617
the director determines that:	1618

(1) The project is an eligible research and development	1619
project and is economically sound;	1620

(2) The amount to be lent from the research and development	1621
loan fund will not exceed seventy-five per cent of the total costs	1622
of the eligible research and development project; and	1623

(3) The repayment of the loan from the research and	1624
development fund will be secured by a mortgage, lien, assignment,	1625
pledge, or other interest in property or other assets of the	1626
borrower at such level of priority and value as the director	1627
considers necessary, provided that, in making such a	1628
determination, the director shall take into account the value of	1629
any rights granted by the borrower to the director to control the	1630
use of any assets of the borrower under the circumstances	1631
described in the loan documents.	1632

(B) The determinations of the director under division (A) of	1633
this section shall be conclusive for purposes of the validity of a	1634
loan commitment evidenced by a loan agreement signed by the	1635
director.	1636

(C) Fees, charges, rates of interest, times of payment of	1637
interest and principal, and other terms, conditions, and	1638
provisions of and security for loans made from the research and	1639
development loan fund shall be such as the director determines to	1640
be appropriate and in furtherance of the purpose for which the	1641
loans are made. The moneys used in making loans shall be disbursed	1642
from the research and development loan fund upon order of the	1643
director. Unless otherwise specified in any indenture or other	1644
instrument securing obligations under division (D) of section	1645
166.08 of the Revised Code, any payments of principal and interest	1646
from loans made from the research and development loan fund shall	1647
be paid to the research and development loan fund and used for the	1648
purpose of making loans under this section.	1649

(D)(1) As used in this division, "qualified research and	1650
development loan payments" means payments of principal due on a	1651
loan made from the research and development loan fund.	1652

(2) Each year, the director shall issue a certificate to each	1653
borrower from the research and development loan fund indicating	1654
the amount of the qualified research and development loan payments	1655
made by the borrower during the tax year. The certificate shall	1656
state that the borrower's qualified research and development	1657
project alone, or in conjunction with other projects, creates new	1658
jobs and that as of the thirty-first day of December of the tax	1659
year for which the certificate is issued, the borrower is not in	1660
default under the loan agreement, lease, or other instrument	1661
governing repayment of the loan.	1662

(E) The director may take actions necessary or appropriate to	1663
collect or otherwise deal with any loan made under this section.	1664

(F) The director may fix service charges for the making of a	1665
loan. The charges shall be payable at such times and place and in	1666
such amounts and manner as may be prescribed by the director.	1667

(G)(1) There shall be credited to the research and	1668
development loan fund moneys received by this state from the	1669
repayment of loans, including interest thereon, made from the	1670
research and development loan fund and moneys received from the	1671
sale, lease, or other disposition of property acquired or	1672
constructed with moneys in the research and development loan fund	1673
derived from the proceeds of the sale of obligations under section	1674
166.08 of the Revised Code. Such moneys shall be applied as	1675
provided in this chapter pursuant to appropriations made by the	1676
general assembly.	1677

(2) In addition to the requirements of division (G)(1) of	1678
this section, moneys referred to in that division may be deposited	1679
to the credit of separate accounts within the research and	1680
development loan fund or in the bond service fund and pledged to	1681
the security of obligations, applied to the payment of bond	1682
service charges without need for appropriation, released from any	1683
such pledge and transferred to the research and development loan	1684
fund, all as and to the extent provided in the bond proceedings	1685
pursuant to written directions by the director of development.	1686
Accounts may be established by the director in the research and	1687
development loan fund for particular projects or otherwise. Income	1688
from the investment of moneys in the research and development loan	1689
fund shall be credited to that fund and, as may be provided in	1690
bond proceedings, to particular accounts in that fund. The	1691
treasurer of state may withdraw from the research and development	1692
loan fund or, subject to provisions of the applicable bond	1693
proceedings, from any special funds established pursuant to the	1694
bond proceedings, or from any accounts in such funds, any amounts	1695
of investment income required to be rebated and paid to the	1696
federal government in order to maintain the exemption from federal	1697
income taxation of interest on obligations issued under this	1698
chapter, which withdrawal and payment may be made without the	1699
necessity for appropriation.	1700

Sec. 184.04. (A) The Ohio research commercialization grant	1701
program is hereby created to improve the commercial viability of	1702
research projects by improving the ability of small technology	1703
companies to assess commercial potential and by promoting the	1704
competitiveness of these companies through the augmentation of	1705
federal research and development funding. The department of	1706
development shall award grants to eligible applicants on a	1707
competitive basis for the following purposes:	1708

(1) Commercialization of a core competency technology,	1709
including, but not limited to, advanced materials, instruments,	1710
controls, electronics, biosciences, power and propulsion, and	1711
information technology; and	1712

(2) Other related business activities related to the	1713
commercialization of core competency technology.	1714

(B) In order to be eligible for an Ohio research	1715
commercialization grant, the applicant shall demonstrate both of	1716
the following to the director of development:	1717

(1) It is located in Ohio.

1718

(2) It has received an award of funds under (a) the small	1719
business innovation research program or small business technology	1720
transfer program established in 15 U.S.C. 638 or other similar	1721
federal award of funds designated by the director of development	1722
as qualifying an applicant for a grant under this section, or (b)	1723
if the applicant has not received a federal award of funds, the	1724
applicant demonstrates eligibility for an award of funds under the	1725
federal advanced technology program established in 15 U.S.C. 278n	1726
or other similar federal program designated by the director of	1727
development as qualifying an applicant for a grant under this	1728
section.	1729

(C) If an applicant demonstrates eligibility for an award of	1730
funds under the federal advanced technology program or other	1731
similar federal program designated by the director of development	1732
under division (B)(2)(b) of this section, the director of	1733
development shall not make a grant to the applicant until the	1734
director has received notification from the applicant, in such	1735
form as the director prescribes, that the applicant has received	1736
an award of federal funds under the federal advanced technology	1737
program or other similar federal program designated by the	1738
director.	1739

(D) An eligible applicant that receives a grant under the	1740
Ohio research commercialization grant program is not precluded	1741
from being considered for or participating in other financial	1742
assistance programs offered by the department of development.	1743

(E) The director of development shall adopt rules in	1744
accordance with Chapter 119. of the Revised Code establishing all	1745
of the following:	1746

(a) Forms and procedures by which eligible applicants may	1747
apply for grants under this section;	1748

(b) Criteria for reviewing, evaluating, and ranking	1749
applications, and for approving applications from eligible	1750
applicants that best serve the goals of the Ohio research	1751
commercialization grant program;	1752

1753

(d) The federal awards and programs that make an applicant	1754
eligible for a grant under division (B) of this section;	1755

(e) Any other rules necessary to implement and administer the	1756
Ohio research commercialization grant program.	1757

Sec. 5733.352. (A) As used in this section:

1758

(1) "Related member" has the same meaning as in section	1759
5733.042 of the Revised Code.	1760

(2) "Qualified research and development loan payments" has	1761
the same meaning as in division (D)(1) of section 166.21 of the	1762
Revised Code.	1763

(B) A nonrefundable credit is allowed against the tax imposed	1764
by section 5733.06 of the Revised Code for a taxpayer's qualified	1765
research and development loan payments during the tax year for	1766
which the credit is claimed. The amount of the credit for a tax	1767
year shall not exceed one hundred fifty thousand dollars. The	1768
credit shall be claimed in the order required under section	1769
5733.98 of the Revised Code. The credit, to the extent it exceeds	1770
the taxpayer's tax liability for the tax year after allowance for	1771
any other credits that precede the credit under this section in	1772
that order, shall be carried forward to the next succeeding tax	1773
year or years until fully utilized. The credit is disallowed if	1774
the taxpayer fails to file with the taxpayer's franchise tax	1775
report a copy of the certificate issued under section 166.21 of	1776
the Revised Code.	1777

(C) A taxpayer entitled to the credit allowed under this	1778
section may assign the credit, or a portion thereof, to:	1779

(1) A related member of the taxpayer;

1780

(2) The owner or lessee of the eligible research and	1781
development project; or	1782

(3) A related member of the owner or lessee of the eligible	1783
research and development project.	1784

A taxpayer making an assignment under this division shall	1785
provide written notice of the assignment to the tax commissioner	1786
and the director of development, in such form as the tax	1787
commissioner prescribes. The assignee may apply the credit against	1788
the tax imposed under section 5733.06 of the Revised Code to the	1789
same extent as if that taxpayer were the taxpayer originally	1790
earning the credit. The credit is disallowed if the assignee fails	1791
to file with the assignee's franchise tax report a copy of the	1792
certificate issued under section 166.21 of the Revised Code.	1793

Sec. 5733.98. (A) To provide a uniform procedure for	1794
calculating the amount of tax imposed by section 5733.06 of the	1795
Revised Code that is due under this chapter, a taxpayer shall	1796
claim any credits to which it is entitled in the following order,	1797
except as otherwise provided in section 5733.058 of the Revised	1798
Code:	1799

(1) The credit for taxes paid by a qualifying pass-through	1800
entity allowed under section 5733.0611 of the Revised Code;	1801

(2) The credit allowed for financial institutions under	1802
section 5733.45 of the Revised Code;	1803

(3) The credit for qualifying affiliated groups under section	1804
5733.068 of the Revised Code;	1805

(4) The subsidiary corporation credit under section 5733.067	1806
of the Revised Code;	1807

(5) The savings and loan assessment credit under section	1808
5733.063 of the Revised Code;	1809

(6) The credit for recycling and litter prevention donations	1810
under section 5733.064 of the Revised Code;	1811

(7) The credit for employers that enter into agreements with	1812
child day-care centers under section 5733.36 of the Revised Code;	1813

(8) The credit for employers that reimburse employee child	1814
day-care expenses under section 5733.38 of the Revised Code;	1815

(9) The credit for maintaining railroad active grade crossing	1816
warning devices under section 5733.43 of the Revised Code;	1817

(10) The credit for purchases of lights and reflectors under	1818
section 5733.44 of the Revised Code;	1819

(11) The job retention credit under division (B) of section	1820
5733.0610 of the Revised Code;	1821

(12) The credit for manufacturing investments under section	1822
5733.061 of the Revised Code;	1823

(13) The credit for purchases of new manufacturing machinery	1824
and equipment under section 5733.31 or section 5733.311 of the	1825
Revised Code;	1826

(14) The second credit for purchases of new manufacturing	1827
machinery and equipment under section 5733.33 of the Revised Code;	1828

(15) The job training credit under section 5733.42 of the	1829
Revised Code;	1830

(16) The credit for qualified research expenses under section	1831
5733.351 of the Revised Code;	1832

(17) The research and development credit under section	1833
5733.352 of the Revised Code;	1834

(18) The enterprise zone credit under section 5709.66 of the	1835
Revised Code;	1836

~~(18)~~(19) The credit for the eligible costs associated with a	1837
voluntary action under section 5733.34 of the Revised Code;	1838

~~(19)~~(20) The credit for employers that establish on-site	1839
child day-care under section 5733.37 of the Revised Code;	1840

~~(20)~~(21) The ethanol plant investment credit under section	1841
5733.46 of the Revised Code;	1842

~~(21)~~(22) The credit for purchases of qualifying grape	1843
production property under section 5733.32 of the Revised Code;	1844

~~(22)~~(23) The export sales credit under section 5733.069 of	1845
the Revised Code;	1846

~~(23)~~(24) The credit for research and development and	1847
technology transfer investors under section 5733.35 of the Revised	1848
Code;	1849

~~(24)~~(25) The enterprise zone credits under section 5709.65 of	1850
the Revised Code;	1851

~~(25)~~(26) The credit for using Ohio coal under section 5733.39	1852
of the Revised Code;	1853

~~(26)~~(27) The refundable jobs creation credit under division	1854
(A) of section 5733.0610 of the Revised Code;	1855

~~(27)~~(28) The refundable credit for tax withheld under	1856
division (B)(2) of section 5747.062 of the Revised Code.	1857

(B) For any credit except the refundable credits enumerated	1858
in this section, the amount of the credit for a tax year shall not	1859
exceed the tax due after allowing for any other credit that	1860
precedes it in the order required under this section. Any excess	1861
amount of a particular credit may be carried forward if authorized	1862
under the section creating that credit.	1863

Sec. 5747.331. (A) As used in this section:

1864

(1) "Related member" has the same meaning as in section	1865
5733.042 of the Revised Code.	1866

(2) "Qualified research and development loan payments" has	1867
the same meaning as in division (D)(1) of section 166.21 of the	1868
Revised Code.	1869

(B) A nonrefundable credit is allowed against the tax imposed	1870
by section 5747.02 of the Revised Code for a taxpayer's qualified	1871
research and development loan payments during the tax year for	1872
which the credit is claimed. The amount of the credit for a tax	1873
year shall not exceed one hundred fifty thousand dollars. The	1874
credit shall be claimed in the order required under section	1875
5747.98 of the Revised Code. The credit, to the extent it exceeds	1876
the taxpayer's tax liability for the tax year after allowance for	1877
any other credits that precede the credit under this section in	1878
that order, shall be carried forward to the next succeeding tax	1879
year or years until fully utilized. The credit is disallowed if	1880
the taxpayer fails to file with the taxpayer's income tax return a	1881
copy of the certificate issued under section 166.21 of the Revised	1882
Code.	1883

(C) A taxpayer entitled to the credit allowed under this	1884
section may assign the credit, or a portion thereof, to:	1885

(1) A related member of the taxpayer;

1886

(2) The owner or lessee of the eligible research and	1887
development project; or	1888

(3) A related member of the owner or lessee of the eligible	1889
research and development project.	1890

A taxpayer making an assignment under this division shall	1891
provide written notice of the assignment to the tax commissioner	1892
and the director of development, in such form as the tax	1893
commissioner prescribes. The assignee may apply the credit against	1894
the tax imposed under section 5747.02 of the Revised Code to the	1895
same extent as if that taxpayer were the taxpayer originally	1896
earning the credit. The credit is disallowed if the assignee fails	1897
to file with the assignee's income tax return a copy of the	1898
certificate issued under section 166.21 of the Revised Code.	1899

Sec. 5747.98. (A) To provide a uniform procedure for	1900
calculating the amount of tax due under section 5747.02 of the	1901
Revised Code, a taxpayer shall claim any credits to which the	1902
taxpayer is entitled in the following order:	1903

(1) The retirement income credit under division (B) of	1904
section 5747.055 of the Revised Code;	1905

(2) The senior citizen credit under division (C) of section	1906
5747.05 of the Revised Code;	1907

(3) The lump sum distribution credit under division (D) of	1908
section 5747.05 of the Revised Code;	1909

(4) The dependent care credit under section 5747.054 of the	1910
Revised Code;	1911

(5) The lump sum retirement income credit under division (C)	1912
of section 5747.055 of the Revised Code;	1913

(6) The lump sum retirement income credit under division (D)	1914
of section 5747.055 of the Revised Code;	1915

(7) The lump sum retirement income credit under division (E)	1916
of section 5747.055 of the Revised Code;	1917

(8) The credit for displaced workers who pay for job training	1918
under section 5747.27 of the Revised Code;	1919

(9) The campaign contribution credit under section 5747.29 of	1920
the Revised Code;	1921

(10) The twenty-dollar personal exemption credit under	1922
section 5747.022 of the Revised Code;	1923

(11) The joint filing credit under division (G) of section	1924
5747.05 of the Revised Code;	1925

(12) The nonresident credit under division (A) of section	1926
5747.05 of the Revised Code;	1927

(13) The credit for a resident's out-of-state income under	1928
division (B) of section 5747.05 of the Revised Code;	1929

(14) The credit for employers that enter into agreements with	1930
child day-care centers under section 5747.34 of the Revised Code;	1931

(15) The credit for employers that reimburse employee child	1932
day-care expenses under section 5747.36 of the Revised Code;	1933

(16) The credit for adoption of a minor child under section	1934
5747.37 of the Revised Code;	1935

(17) The credit for purchases of lights and reflectors under	1936
section 5747.38 of the Revised Code;	1937

(18) The job retention credit under division (B) of section	1938
5747.058 of the Revised Code;	1939

(19) The credit for manufacturing investments under section	1940
5747.051 of the Revised Code;	1941

(20) The credit for purchases of new manufacturing machinery	1942
and equipment under section 5747.26 or section 5747.261 of the	1943
Revised Code;	1944

(21) The second credit for purchases of new manufacturing	1945
machinery and equipment and the credit for using Ohio coal under	1946
section 5747.31 of the Revised Code;	1947

(22) The job training credit under section 5747.39 of the	1948
Revised Code;	1949

(23) The enterprise zone credit under section 5709.66 of the	1950
Revised Code;	1951

(24) The credit for the eligible costs associated with a	1952
voluntary action under section 5747.32 of the Revised Code;	1953

(25) The credit for employers that establish on-site child	1954
day-care centers under section 5747.35 of the Revised Code;	1955

(26) The ethanol plant investment credit under section	1956
5747.75 of the Revised Code;	1957

(27) The credit for purchases of qualifying grape production	1958
property under section 5747.28 of the Revised Code;	1959

(28) The export sales credit under section 5747.057 of the	1960
Revised Code;	1961

(29) The credit for research and development and technology	1962
transfer investors under section 5747.33 of the Revised Code;	1963

(30) The research and development credit under section	1964
5747.331 of the Revised Code;	1965

(31) The enterprise zone credits under section 5709.65 of the	1966
Revised Code;	1967

~~(31)~~(32) The refundable jobs creation credit under division	1968
(A) of section 5747.058 of the Revised Code;	1969

~~(32)~~(33) The refundable credit for taxes paid by a qualifying	1970
entity granted under section 5747.059 of the Revised Code;	1971

~~(33)~~(34) The refundable credits for taxes paid by a	1972
qualifying pass-through entity granted under division (J) of	1973
section 5747.08 of the Revised Code;	1974

~~(34)~~(35) The refundable credit for tax withheld under	1975
division (B)(1) of section 5747.062 of the Revised Code.	1976

(B) For any credit, except the refundable credits enumerated	1977
in this section and the credit granted under division (I) of	1978
section 5747.08 of the Revised Code, the amount of the credit for	1979
a taxable year shall not exceed the tax due after allowing for any	1980
other credit that precedes it in the order required under this	1981
section. Any excess amount of a particular credit may be carried	1982
forward if authorized under the section creating that credit.	1983
Nothing in this chapter shall be construed to allow a taxpayer to	1984
claim, directly or indirectly, a credit more than once for a	1985
taxable year.	1986

Section 2. That existing sections 122.151, 122.152, 122.154,	1987
166.01, 166.02, 166.08, 166.11, 166.13, 166.14, 166.16, 5733.98,	1988
and 5747.98 of the Revised Code are hereby repealed.	1989

Section 3. Sections 5733.352 and 5747.331 of the Revised	1990
Code, as enacted by this act, apply to tax years beginning on and	1991
after January 1, 2003.	1992