REPRESENTATIVES T. Patton, Collier, C. Evans, Aslanides, Brown, Chandler, Distel, Gibbs, Gilb, Hagan, Harwood, Price, Schaffer, Schlichter, Skindell, J. Stewart, Strahorn, Sykes, Taylor, Walcher, Wolpert, Barrett, Book, Calvert, Carano, Cates, DeBose, DeWine, Domenick, Flowers, Hartnett, Hughes, Jolivette, Key, Mason, Miller, Niehaus, Oelslager, Olman, Otterman, S. Patton, Reidelbach, Schmidt, Seaver, Seitz, Setzer, G. Smith, S. Smith, D. Stewart, Trakas, White, Widener, Woodard, Yates, Martin

To amend sections 122.15, 122.151, 122.152, 122.154,

1

122.171, 166.01, 166.02, 166.08, 166.11, 166.13,

2

166.14, 166.16, 5733.98, and 5747.98 and to enact

3

sections 166.17 to 166.21, 184.04, 5733.352, and

4

5747.331 of the Revised Code and to amend Sections

5

41 and 41.15 of Am. Sub. H.B. 94 of the 124th

6

General Assembly, as subsequently amended, to

7

increase the dollar amount that may be invested in

8

technology and revise the eligibility requirements

9

for, and increase the maximum amount of,

10

technology investment tax credits that may be

11

issued; to create the Ohio Research

12

Commercialization Grant Program; to increase the

13

maximum amount of obligations that may be issued

14

to fund economic development programs; to move the

15

Innovation Ohio Loan Fund into the State Treasury;

16

to create the Research and Development Loan Fund,

17

and authorize the Director to make loans from that

18

Fund and issue obligations for research and

19

development projects; to grant tax credits for

20

qualified research and development loan payments;

21

to extend the maximum term of, and to change the

22

job retention requirements for, the job retention

23

tax credit; to grant a tax credit to corporations

24

operating call centers to offset future changes in

25

the corporation franchise tax law; and to make an

26

appropriation.

27

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

Section 1. That sections 122.15, 122.151, 122.152, 122.154,	28
122.171, 166.01, 166.02, 166.08, 166.11, 166.13, 166.14, 166.16,	29
5733.98, and 5747.98 be amended and sections 166.17, 166.18,	30
166.19, 166.20, 166.21, 184.04, 5733.352, and 5747.331 of the	31
Revised Code be enacted to read as follows:	32

Sec. 122.15.  As used in sections 122.15 to 122.154 of the	33
Revised Code:	34

(A) "Edison center" means a cooperative research and	35
development facility that receives funding through the Thomas Alva	36
Edison grant program under division (C) of section 122.33 of the	37
Revised Code.	38

(B) "Ohio entity" means any corporation, limited liability	39
company, or unincorporated business organization, including a	40
general or limited partnership, that has its principal place of	41
business located in this state and has at least fifty per cent of	42
its gross assets and fifty per cent of its employees located in	43
this state. If a corporation, limited liability company, or	44
unincorporated business organization is a member of an affiliated	45
group, the gross assets and the number of employees of all of the	46
members of that affiliated group, wherever those assets and	47
employees are located, shall be included for the purpose of	48
determining the percentage of the corporation's, company's, or	49
organization's gross assets and employees that are located in this	50
state.	51

(C) "Qualified trade or business" means any trade or business	52
that primarily involves research and development, technology	53
transfer, bio-technology, information technology, or the	54
application of new technology developed through research and	55
development or acquired through technology transfer. "Qualified	56
trade or business" does not include any of the following:	57

(1) Any trade or business involving the performance of	58
services in the field of law, engineering, architecture,	59
accounting, actuarial science, performing arts, consulting,	60
athletics, financial services, or brokerage services, or any trade	61
or business where the principal asset of the trade or business is	62
the reputation or skill of one or more of its employees;	63

(2) Any banking, insurance, financing, leasing, rental,	64
investing, or similar business;	65

(3) Any farming business, including the business of raising	66
or harvesting trees;	67

(4) Any business involving the production or extraction of	68
products of a character with respect to which a deduction is	69
allowable under section 611, 613, or 613A of the "Internal Revenue	70
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 611, 613, or 613A;	71

(5) Any business of operating a hotel, motel, restaurant, or	72
similar business;	73

(6) Any trade or business involving a hospital, a private	74
office of a licensed health care professional, a group practice of	75
licensed health care professionals, or a nursing home. As used in	76
division (C)(6) of this section:	77

(a) "Nursing home" has the same meaning as in section 3721.50	78
of the Revised Code.	79

(b) "Hospital" has the same meaning as in section 3727.01 of	80
the Revised Code.	81

(D) "Information technology" means the branch of technology	82
devoted to the study and application of data and the processing	83
thereof; the automatic acquisition, storage, manipulation or	84
transformation, management, movement, control, display, switching,	85
interchange, transmission or reception of data, and the	86
development or use of hardware, software, firmware, and procedures	87
associated with this processing. Information technology includes	88
matters concerned with the furtherance of computer science and	89
technology, design, development, installation and implementation	90
of information systems and applications that in turn will be	91
licensed or sold to a specific target market. Information	92
technology does not include the creation of a distribution method	93
for existing products and services.	94

(E) "Insider" means an individual who owns, controls, or	95
holds power to vote five per cent or more of the outstanding	96
securities of a business. For purposes of determining whether an	97
investor is an insider, the percentage of voting power in the Ohio	98
entity held by a person related to the investor shall be added to	99
the investor's percentage of voting power in the same Ohio entity,	100
if the investor claimed the person related to the investor as a	101
dependent or a spouse on the investor's federal income tax return	102
for the previous tax year.	103

(F) "Related to" means being the spouse, parent, child, or	104
sibling of an individual.	105

(G) "Research and development" means designing, creating, or	106
formulating new or enhanced products, equipment, or processes, and	107
conducting scientific or technological inquiry and experimentation	108
in the physical sciences with the goal of increasing scientific	109
knowledge that may reveal the bases for new or enhanced products,	110
equipment, or processes.	111

(H) "State tax liability" means any tax liability incurred	112
under division (D) of section 5707.03, section 5727.24, 5727.38,	113
or 5747.02, or Chapter 5733. of the Revised Code.	114

(I) "Technology transfer" means the transfer of technology	115
from one sector of the economy to another, including the transfer	116
of military technology to civilian applications, civilian	117
technology to military applications, or technology from public or	118
private research laboratories to military or civilian	119
applications.	120

(J) "Affiliated group" means two or more persons related in	121
such a way that one of the persons owns or controls the business	122
operations of another of those persons. In the case of a	123
corporation issuing capital stock, one corporation owns or	124
controls the business operations of another corporation if it owns	125
more than fifty per cent of the other corporation's capital stock	126
with voting rights. In the case of a limited liability company,	127
one person owns or controls the business operations of the company	128
if that person's membership interest, as defined in section	129
1705.01 of the Revised Code, is greater than fifty per cent of	130
combined membership interest of all persons owning such interests	131
in the company. In the case of an unincorporated business	132
organization, one person owns or controls the business operations	133
of the organization if, under the articles of organization or	134
other instrument governing the affairs of the organization, that	135
person has a beneficial interest in the organization's profits,	136
surpluses, losses, or other distributions greater than fifty per	137
cent of the combined beneficial interests of all persons having	138
such an interest in the organization.	139

(K) "Money" means United States currency, or a check, draft,	140
or cashier's check for United States currency, payable on demand	141
and drawn on a bank.	142

(L) "EDGE business enterprise" means an Ohio entity certified	143
by the director of administrative services as a participant in the	144
encouraging diversity, growth, and equity program established by	145
the governor's executive order 2002-17T.	146

(M) "Distressed area" has the same meaning as in section	147
122.23 of the Revised Code.	148

Sec. 122.151.  (A) An investor who proposes to make an	150
investment of money in an Ohio entity may apply to an Edison	151
center for a tax credit under this section. The Edison center	152
shall prescribe the form of the application and any information	153
that the investor must submit with the application. The investor	154
shall include with the application a fee of two hundred dollars.	155
The center, within three weeks after receiving the application,	156
shall review it, determine whether the investor should be	157
recommended for the tax credit, and send written notice of its	158
initial determination to the industrial technology and enterprise	159
advisory council and to the investor. If the center determines the	160
investor should not be recommended for the tax credit, it shall	161
include in the notice the reasons for the determination. Subject	162
to divisions (C) and (D) of this section, an investor is eligible	163
for a tax credit if all of the following requirements are met:	164

(1) The investor's investment of money is in an Ohio entity	165
engaged in a qualified trade or business.	166

(2) The Ohio entity had less than onetwo million five	167
hundred thousand dollars of gross revenue during its most recently	168
completed fiscal year or had a net book value of less than onetwo	169
million five hundred thousand dollars at the end of that fiscal	170
year.	171

(3) The investment takes the form of the purchase of common	172
or preferred stock, a membership interest, a partnership interest,	173
or any other ownership interest.	174

(4) The amount of the investment for which the credit is	175
being claimed does not exceed onethree hundred fifty thousand	176
dollars in the case of an investment in an EDGE business	177
enterprise or in an Ohio entity located in a distressed area, or	178
two hundred fifty thousand dollars in the case of an investment in	179
any other Ohio entity.	180

(5) The money invested is entirely at risk of loss, where	181
repayment depends upon the success of the business operations of	182
the Ohio entity.	183

(6) No repayment of principal invested will be made for at	184
least three years from the date the investment is made.	185

(7) The annual combined amount of any dividend and interest	186
payments to be made to the investor will not exceed ten per cent	187
of the amount of the investment for at least three years from the	188
date the investment is made.	189

(8) The investor is not an employee with proprietary	190
decision-making authority of the Ohio entity in which the	191
investment of money is proposed, or related to such an individual.	192
The Ohio entity is not an individual related to the investor. For	193
purposes of this division, the industrial technology and	194
enterprise advisory council shall define "an employee with	195
proprietary decision-making authority."	196

(9) The investor is not an insider.

197

For the purposes of determining the net book value of an Ohio	198
entity under division (A)(1) or (2) of this section, if the entity	199
is a member of an affiliated group, the combined net book values	200
of all of the members of that affiliated group shall be used.	201

Nothing in division (A)(6) or (7) of this section limits or	202
disallows the distribution to an investor in a pass-through entity	203
of a portion of the entity's profits equal to the investor's	204
federal, state, and local income tax obligations attributable to	205
the investor's allocable share of the entity's profits. Nothing in	206
division (A)(6) or (7) of this section limits or disallows the	207
sale by an investor of part or all of the investor's interests in	208
an Ohio entity by way of a public offering of shares in the Ohio	209
entity.	210

(B) A group of two but not more than twenty investors, each	211
of whom proposes to make an investment of money in the same Ohio	212
entity, may submit an application for tax credits under division	213
(A) of this section. The group shall include with the application	214
a fee of eight hundred dollars. The application shall identify	215
each investor in the group and the amount of money each investor	216
proposes to invest in the Ohio entity, and shall name a contact	217
person for the group. The Edison center, within three weeks after	218
receiving the application, shall review it, determine whether each	219
investor of the group should be recommended for a tax credit under	220
the conditions set forth in division (A) of this section, and send	221
written notice of its determination to the industrial technology	222
and enterprise advisory council and to the contact person. The	223
center shall not recommend that a group of investors receive a tax	224
credit unless each investor is eligible under those conditions.	225
The center may disqualify from a group any investor who is not	226
eligible under the conditions and recommend that the remaining	227
group of investors receive the tax credit. If the center	228
determines the group should not be recommended for the tax credit,	229
it shall include in the notice the reasons for the determination.	230

(C) The industrial technology and enterprise advisory council	231
shall establish from among its members a three-person committee.	232
Within four weeks after the council receives a notice of	233
recommendation from an Edison center, the committee shall review	234
the recommendation and issue a final determination of whether the	235
investor or group is eligible for a tax credit under the	236
conditions set forth in division (A) of this section. The	237
committee may require the investor or group to submit additional	238
information to support the application. The vote of at least two	239
members of the committee is necessary for the issuance of a final	240
determination or any other action of the committee. Upon making	241
the final determination, the committee shall send written notice	242
of approval or disapproval of the tax credit to the investor or	243
group contact person, the director of development, and the Edison	244
center. If the committee disapproves the tax credit, it shall	245
include in the notice the reasons for the disapproval.	246

(D)(1) The industrial technology and enterprise advisory	247
council committee shall not approve more than one million five	248
hundred thousand dollars of investments in any one Ohio entity.	249
However, if a proposed investment of money in an Ohio entity has	250
been approved but the investor does not actually make the	251
investment, the committee may reassign the amount of that	252
investment to another investor, as long as the total amount	253
invested in the entity under this section does not exceed one	254
million five hundred thousand dollars.	255

If the one-million-five-hundred-thousand-dollar limit for an	256
Ohio entity has not yet been reached and an application proposes	257
an investment of money that would exceed the limit for that	258
entity, the committee shall send written notice to the investor,	259
or for a group, the contact person, that the investment cannot be	260
approved as requested. Upon receipt of the notice, the investor or	261
group may amend the application to propose an investment of money	262
that does not exceed the limit.	263

(2) Not more than tentwenty million dollars of tax credits	264
shall be issued under sections 122.15 to 122.154 of the Revised	265
Code.	266

(E) If an investor makes an approved investment of money in	267
an Ohio entity of less than onetwo hundred fifty thousand dollars	268
in any Ohio entity other than an EDGE business enterprise or in an	269
Ohio entity located in a distressed area, the investor may apply	270
for approval of another investment of money in that entity, as	271
long as the total amount invested in that entity by the investor	272
under this section does not exceed onetwo hundred fifty thousand	273
dollars. If an investor makes an approved investment of less than	274
three hundred thousand dollars in an EDGE business enterprise or	275
in an Ohio entity located in a distressed area, the investor may	276
apply for approval of another investment of money in that entity,	277
as long as the total amount invested in that entity by the	278
investor under this section does not exceed three hundred thousand	279
dollars. An investor who receives approval of an investment of	280
money as part of a group may subsequently apply on an individual	281
basis for approval of an additional investment of money in the	282
Ohio entity.	283

(F) The industrial technology and enterprise advisory council	284
committee shall approve or disapprove tax credit applications	285
under this section in the order in which they are received by the	286
council.	287

(G) The director of development may disapprove any	288
application recommended by an Edison center and approved by the	289
industrial technology and enterprise advisory council committee,	290
or may disapprove a credit for which a tax credit certificate has	291
been issued under section 122.152 of the Revised Code, if the	292
director determines that the entity in which the applicant	293
proposes to invest or has invested is not an Ohio entity eligible	294
to receive investments that qualify for the credit. If the	295
director disapproves an application, the director shall certify	296
the action to the investor, the Edison center that recommended the	297
application, the industrial technology and enterprise advisory	298
council, and the tax commissioner, together with a written	299
explanation of the reasons for the disapproval. If the director	300
disapproves a tax credit after a tax credit certificate is issued,	301
the investor shall not claim the credit for the taxable year that	302
includes the day the director disapproves the credit, or for any	303
subsequent taxable year.	304

The director of development, in accordance with section	305
111.15 of the Revised Code and with the advice of the industrial	306
technology and enterprise advisory council, may adopt, amend, and	307
rescind rules necessary to implement sections 122.15 to 122.154 of	308
the Revised Code.	309

(H) An Edison center shall use application fees received	310
under this section only for the costs of administering sections	311
122.15 to 122.154 of the Revised Code.	312

Sec. 122.152.  (A) After receiving notice of approval for an	313
investment of money from the industrial technology and enterprise	314
advisory council committee under section 122.151 of the Revised	315
Code, an investor, within a period of time determined by the	316
committee, may make the investment and apply to the council for a	317
tax credit certificate. If the councilcommittee is satisfied the	318
investor has made the investment in the proper form, it shall	319
issue to the investor a tax credit certificate signed by the	320
chairperson of the committee and the director of development	321
indicating that the investor is allowed a tax credit in an amount	322
equal to twenty-five per cent of the investmentone of the	323
following amounts:	324

(1) Thirty per cent of the investment if the investment was	325
made in an EDGE business enterprise or in an Ohio entity located	326
in a distressed area;	327

(2) Twenty-five per cent of the investment if the investment	328
was made in an Ohio entity other than an EDGE business enterprise.	329

An investor who receives approval of a proposed investment of	330
money through a group application, after making the investment,	331
shall apply for a tax credit certificate on an individual basis.	332

(B) An investor who is issued a tax credit certificate under	333
this section may claim a nonrefundable credit equal to the amount	334
indicated on the certificate against any state tax liability. The	335
investor shall claim the credit for the taxable year in which the	336
certificate is issued.	337

(1) If the credit to which a taxpayer otherwise would be	338
entitled under this section for any taxable year is greater than	339
the tax otherwise due under division (D) of section 5707.03 or	340
section 5727.24 or 5727.38 of the Revised Code, the excess shall	341
be allowed as a credit in each of the ensuing fifteen taxable	342
years, but the amount of any excess credit allowed in an ensuing	343
taxable year shall be deducted from the balance carried forward to	344
the next taxable year.	345

(2) If the credit to which a taxpayer otherwise would be	346
entitled under this section for any taxable year is greater than	347
the tax otherwise due under section 5747.02 or Chapter 5733. of	348
the Revised Code, after allowing for any other credits that	349
precede the credit allowed under this section in the order	350
required under section 5733.98 or 5747.98 of the Revised Code, the	351
excess shall be allowed as a credit in each of the ensuing fifteen	352
taxable years, but the amount of any excess credit allowed in an	353
ensuing taxable year shall be deducted from the balance carried	354
forward to the next taxable year.	355

(C) Any portion of a credit allowed under this section that	356
is utilized by an investor to reduce the investor's state tax	357
liability shall not be utilized by any other person.	358

(D) To claim a tax credit allowed under this section, an	359
investor shall attach to the appropriate return a copy of the	360
certificate issued to the investor under this section.	361

(E) Nothing in this section shall limit or disallow	362
pass-through treatment of a pass-through entity's income,	363
deductions, or credits, or other amounts necessary to compute a	364
state tax liability.	365

(F) A tax credit certificate issued to an investor under this	366
section may not be transferred by that investor to any other	367
person.	368

(G)(1) The industrial technology and enterprise advisory	369
councildirector of development shall develop the form of the tax	370
credit certificate and the industrial technology and enterprise	371
advisory council committee shall use that form when issuing a tax	372
credit certificate under this section.	373

(2) The industrial technology and enterprise advisory council	374
director of development shall report to the tax commissioner any	375
information requested by the commissioner concerning tax credit	376
certificates issued under this section.	377

(H) An investment made by an investor or group of investors	378
who enter into a contractual agreement with an Ohio entity to	379
invest money in the Ohio entity is an acceptable investment if all	380
of the following conditions are met:	381

(1) The investment is made pursuant to a subscription	382
agreement providing that the investor or group of investors is	383
entitled to receive a refund of funds if the investment is not	384
approved by the industrial technology and enterprise advisory	385
council committee.	386

(2) The investment is placed in escrow until the investment	387
is approved by the industrial technology and enterprise advisory	388
council committee.	389

(3) The investor or group of investors shows proof of the	390
withdrawal of the funds by the Ohio entity after the investment is	391
approved by the industrial technology and enterprise advisory	392
council committee.	393

Sec. 122.154.  (A) A business may apply to an Edison center	394
for a determination as to whether the business is an Ohio entity	395
eligible to receive investments of money under section 122.151 of	396
the Revised Code that qualify the investor for a tax credit under	397
section 122.152 of the Revised Code. The business shall include	398
with the application a fee of one hundred fifty dollars and a	399
business plan. The Edison center shall prescribe any other	400
information the business must submit with the application and the	401
form of the application. The center, within three weeks after	402
receiving the application, shall review it, determine whether the	403
business is an Ohio entity eligible to receive investments of	404
money that qualify for the tax credit, and send written notice to	405
the industrial technology and enterprise advisory council and the	406
business of its initial determination. If the center determines	407
that the business is not an Ohio entity eligible to receive	408
investments of money that qualify for the tax credit, it shall	409
include in the notice the reasons for the determination.	410

Within four weeks after the council receives a notice of	411
recommendation from an Edison center, the industrial technology	412
and enterprise advisory council committee established under	413
section 122.152 of the Revised Code shall review the	414
recommendation and issue a final determination of whether the	415
business is an Ohio entity eligible to receive investments of	416
money under section 122.151 of the Revised Code that qualify an	417
investor for a tax credit under section 122.152 of the Revised	418
Code. The committee may require the business to submit additional	419
information to support the application. The vote of at least two	420
members of the committee is necessary for the issuance of a final	421
determination. On making the final determination, the committee	422
shall send written notice of approval or disapproval to the	423
business, the director of development, and the Edison center. If	424
the committee determines that the business is not an Ohio entity	425
eligible to receive investments of money that qualify for the tax	426
credit, it shall include in the notice the reasons for the	427
determination.	428

(B) The department of development shall maintain a list of	429
the businesses that have been determined to be Ohio entities	430
eligible to receive investments of money that qualify for the tax	431
credit. The department shall furnish copies of the list to the	432
public upon request.	433

(C) The department of development may prescribe a schedule	434
under which businesses periodically must submit information to	435
enable the center to maintain the accuracy of the list. At the	436
times required in the schedule, each business on the list shall	437
submit any information the center requires to determine if the	438
business continues to be an Ohio entity eligible to receive	439
investments of money that qualify for the tax credit.	440

(D) An Edison center shall use fees received under this	441
section only for the costs of administering sections 122.15 to	442
122.154 of the Revised Code.	443

(E) The Edison centers and the industrial technology and	444
enterprise advisory council and its committee do not assume any	445
responsibility for the accuracy or truthfulness of information	446
furnished by an Ohio entity or its agents.	447

An investor in an Ohio entity is solely responsible for due	448
diligence in verifying information submitted by an Ohio entity. An	449
Edison center is not liable for any action resulting from its	450
provision of such information to investors in accordance with	451
sections 122.15 to 122.154 of the Revised Code.	452

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

453

(1) "Capital investment project" means a plan of investment	454
at a project site for the acquisition, construction, renovation,	455
or repair of buildings, machinery, or equipment, or for	456
capitalized costs of basic research and new product development	457
determined in accordance with generally accepted accounting	458
principles, but does not include any of the following:	459

(a) Payments made for the acquisition of personal property	460
through operating leases;	461

(b) Project costs paid before January 1, 2002, or after	462
December 31, 2006;	463

(c) Payments made to a related member as defined in section	464
5733.042 of the Revised Code.	465

(2) "Eligible business" means a business with Ohio operations	466
satisfying all of the following:	467

(a) Employed an average of at least one thousand employees in	468
full-time employment positions at a project site during each of	469
the twelve months preceding the application for a tax credit under	470
this section; and	471

(b) On or after January 1, 2002, has made payments for the	472
capital investment project of either of the following:	473

(i) At least two hundred million dollars in the aggregate at	474
the project site during a period of three consecutive calendar	475
years including the calendar year that includes a day of the	476
taxpayer's taxable year with respect to which the credit is	477
granted;	478

(ii) If the average wage of all full-time employment	479
positions at the project site is greater than four hundred per	480
cent of the federal minimum wage, at least one hundred million	481
dollars in the aggregate at the project site during a period of	482
three consecutive calendar years including the calendar year that	483
includes a day of the taxpayer's taxable year with respect to	484
which the credit is granted.	485

(c) Is engaged at the project site primarily as a	486
manufacturer or is providing significant corporate administrative	487
functions;	488

(d) Has had a capital investment project reviewed and	489
approved by the tax credit authority as provided in divisions (C),	490
(D), and (E) of this section.	491

(3) "Full-time employment position" means a position of	492
employment for consideration for at least thirty-five hours a week	493
that has been filled for at least one hundred eighty days	494
immediately preceding the filing of an application under this	495
section and for at least one hundred eighty days during each	496
taxable year with respect to which the credit is granted.	497

(4) "Manufacturer" has the same meaning as in section	498
5739.011 of the Revised Code.	499

(5) "Project site" means an integrated complex of facilities	500
in this state, as specified by the tax credit authority under this	501
section, within a fifteen-mile radius where a taxpayer is	502
primarily operating as an eligible business.	503

(6) "Applicable corporation" means a corporation satisfying	504
all of the following:	505

(a)(i) For the entire taxable year immediately preceding the	506
tax year, the corporation develops software applications primarily	507
to provide telecommunication billing and information services	508
through outsourcing or licensing to domestic or international	509
customers.	510

(ii) Sales and licensing of software generated at least six	511
hundred million dollars in revenue during the taxable year	512
immediately preceding the tax year the corporation is first	513
entitled to claim the credit provided under division (B) of this	514
section.	515

(b) For the entire taxable year immediately preceding the tax	516
year, the corporation or one or more of its related members	517
provides customer or employee care and technical support for	518
clients through one or more contact centers within this state, and	519
the corporation and its related members together have a daily	520
average, based on a three hundred sixty-five day year, of at least	521
five hundred thousand successful customer contacts through one or	522
more of their contact centers, wherever located.	523

(c) The corporation is eligible for the credit under division	524
(B) of this section for the tax year.	525

(7) "Related member" has the same meaning as in section	526
5733.042 of the Revised Code as that section existed on the	527
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd	528
general assembly.	529

(8) "Successful customer contact" means a contact with an end	530
user via telephone, including interactive voice recognition or	531
similar means, where the contact culminates in a conversation or	532
connection other than a busy signal or equipment busy.	533

(9) "Telecommunications" means all forms of	534
telecommunications service as defined in section 5739.01 of the	535
Revised Code, and includes services in wireless, wireline, cable,	536
broadband, internet protocol, and satellite.	537

(10)(a) "Applicable difference" means the difference between	538
the tax for the tax year under Chapter 5733. of the Revised Code	539
applying the law in effect for that tax year, and the tax for that	540
tax year if section 5733.042 of the Revised Code applied as that	541
section existed on the effective date of its amendment by Am. Sub.	542
H.B. 215 of the 122nd general assembly, subject to division	543
(A)(10)(b) of this section.	544

(b) If the tax rate set forth in division (B) of section	545
5733.06 of the Revised Code for the tax year is less than eight	546
and one-half per cent, the tax calculated under division	547
(A)(10)(a) of this section shall be computed by substituting a tax	548
rate of eight and one-half per cent for the rate set forth in	549
division (B) of section 5733.06 of the Revised Code for the tax	550
year.	551

(c) If the resulting difference is negative, the applicable	552
tax difference for the tax year shall be zero.	553

(B) The tax credit authority created under section 122.17 of	554
the Revised Code may grant tax credits under this section for the	555
purpose of fostering job retention in this state. Upon application	556
by an eligible business and upon consideration of the	557
recommendation of the director of budget and management, tax	558
commissioner, and director of development under division (C) of	559
this section, the tax credit authority may grant to an eligible	560
business a nonrefundable credit against the tax imposed by section	561
5733.06 or 5747.02 of the Revised Code for a period up to ten	562
fifteen taxable years. The credit shall be in an amount not	563
exceeding seventy-five per cent of the Ohio income tax withheld	564
from the employees of the eligible business occupying full-time	565
employment positions at the project site during the calendar year	566
that includes the last day of such business' taxable year with	567
respect to which the credit is granted. The amount of the credit	568
shall not be based on the Ohio income tax withheld from full-time	569
employees for a calendar year prior to the calendar year in which	570
the minimum investment requirement referred to in division	571
(A)(2)(b) of this section is completed. The credit shall be	572
claimed only for the taxable years specified in the eligible	573
business' agreement with the tax credit authority under division	574
(E) of this section, but in no event shall the credit be claimed	575
for a taxable year terminating before the date specified in the	576
agreement.	577

The credit computed under this division is in addition to any	578
credit allowed under division (M) of this section which the tax	579
credit authority may also include in the agreement.	580

Any unused portion of a tax credit may be carried forward for	581
not more than three additional years after the year for which the	582
credit is granted.	583

(C) A taxpayer that proposes a capital investment project to	584
retain jobs in this state may apply to the tax credit authority to	585
enter into an agreement for a tax credit under this section. The	586
director of development shall prescribe the form of the	587
application. After receipt of an application, the authority shall	588
forward copies of the application to the director of budget and	589
management, the tax commissioner, and the director of development,	590
each of whom shall review the application to determine the	591
economic impact the proposed project would have on the state and	592
the affected political subdivisions and shall submit a summary of	593
their determinations and recommendations to the authority. The	594
authority shall make no agreements under this section after June	595
30, 2007.	596

(D) Upon review of the determinations and recommendations	597
described in division (C) of this section, the tax credit	598
authority may enter into an agreement with the taxpayer for a	599
credit under this section if the authority determines all of the	600
following:	601

(1) The taxpayer's capital investment project will result in	602
the retention of full-time employment positions in this state.	603

(2) The taxpayer is economically sound and has the ability to	604
complete the proposed capital investment project.	605

(3) The taxpayer intends to and has the ability to maintain	606
operations at the project site for at least twice the term of the	607
credit.	608

(4) Receiving the credit is a major factor in the taxpayer's	609
decision to begin, continue with, or complete the project.	610

(5) The political subdivisions in which the project is	611
located have agreed to provide substantial financial support to	612
the project.	613

(E) An agreement under this section shall include all of the	614
following:	615

(1) A detailed description of the project that is the subject	616
of the agreement, including the amount of the investment, the	617
period over which the investment has been or is being made, and	618
the number of full-time employment positions at the project site.	619

(2) The method of calculating the number of full-time	620
employment positions as specified in division (A)(3) of this	621
section.	622

(3) The term and percentage of the tax credit, and the first	623
year for which the credit may be claimed.	624

(4) A requirement that the taxpayer maintain operations at	625
the project site for at least twice the number of years as the	626
term of the credit.	627

(5) A requirement that the taxpayer retain a specified number	628
of full-time employment positions at the project site and within	629
this state for the term of the credit, including a requirement	630
that the taxpayer continue to employ at least one thousand	631
employees in full-time employment positions at the project site	632
during the entire term of any agreement, subject to division	633
(E)(7) of this section.	634

(6) A requirement that the taxpayer annually report to the	635
director of development the number of full-time employment	636
positions subject to the credit, the amount of tax withheld from	637
employees in those positions, the amount of the payments made for	638
the capital investment project, and any other information the	639
director needs to perform the director's duties under this	640
section.	641

(7) A requirement that the director of development annually	642
review the annual reports of the taxpayer to verify the	643
information reported under division (E)(6) of this section and	644
compliance with the agreement. Upon verification, the director	645
shall issue a certificate to the taxpayer stating that the	646
information has been verified and identifying the amount of the	647
credit for the taxable year. TheUnless otherwise specified by the	648
tax credit authority in a resolution and included as part of the	649
agreement, the director shall not issue a certificate for any year	650
in which the total number of filled full-time employment positions	651
for each day of the calendar year divided by three hundred	652
sixty-five is less than ninety per cent of the full-time	653
employment positions specified in division (E)(5) of this section.	654
In determining the number of full-time employment positions, no	655
position shall be counted that is filled by an employee who is	656
included in the calculation of a tax credit under section 122.17	657
of the Revised Code.	658

(8)(a) A provision requiring that the taxpayer, except as	659
otherwise provided in division (E)(8)(b) of this section, shall	660
not relocate employment positions from elsewhere in this state to	661
the project site that is the subject of the agreement for the	662
lesser of five years from the date the agreement is entered into	663
or the number of years the taxpayer is entitled to claim the	664
credit.	665

(b) The taxpayer may relocate employment positions from	666
elsewhere in this state to the project site that is the subject of	667
the agreement if the director of development determines both of	668
the following:	669

(i) That the site from which the employment positions would	670
be relocated is inadequate to meet market and industry conditions,	671
expansion plans, consolidation plans, or other business	672
considerations affecting the taxpayer;	673

(ii) That the legislative authority of the county, township,	674
or municipal corporation from which the employment positions would	675
be relocated has been notified of the relocation.	676

For purposes of this section, the movement of an employment	677
position from one political subdivision to another political	678
subdivision shall be considered a relocation of an employment	679
position unless the movement is confined to the project site. The	680
transfer of an individual employee from one political subdivision	681
to another political subdivision shall not be considered a	682
relocation of an employment position as long as the individual's	683
employment position in the first political subdivision is	684
refilled.	685

(9) A waiver by the taxpayer of any limitations periods	686
relating to assessments or adjustments resulting from the	687
taxpayer's failure to comply with the agreement.	688

(F) If a taxpayer fails to meet or comply with any condition	689
or requirement set forth in a tax credit agreement, the tax credit	690
authority may amend the agreement to reduce the percentage or term	691
of the credit. The reduction of the percentage or term shall take	692
effect in the taxable year immediately following the taxable year	693
in which the authority amends the agreement. If the taxpayer	694
relocates employment positions in violation of the provision	695
required under division (D)(8)(a) of this section, the taxpayer	696
shall not claim the tax credit under section 5733.0610 of the	697
Revised Code for any tax years following the calendar year in	698
which the relocation occurs, or shall not claim the tax credit	699
under section 5747.058 of the Revised Code for the taxable year in	700
which the relocation occurs and any subsequent taxable years.	701

(G) Financial statements and other information submitted to	702
the department of development or the tax credit authority by an	703
applicant for or recipient of a tax credit under this section, and	704
any information taken for any purpose from such statements or	705
information, are not public records subject to section 149.43 of	706
the Revised Code. However, the chairperson of the authority may	707
make use of the statements and other information for purposes of	708
issuing public reports or in connection with court proceedings	709
concerning tax credit agreements under this section. Upon the	710
request of the tax commissioner, the chairperson of the authority	711
shall provide to the commissioner any statement or other	712
information submitted by an applicant for or recipient of a tax	713
credit in connection with the credit. The commissioner shall	714
preserve the confidentiality of the statement or other	715
information.	716

(H) A taxpayer claiming a tax credit under this section shall	717
submit to the tax commissioner a copy of the director of	718
development's certificate of verification under division (E)(7) of	719
this section for the taxable year. However, failure to submit a	720
copy of the certificate does not invalidate a claim for a credit.	721

(I) For the purposes of this section, a taxpayer may include	722
a partnership, a corporation that has made an election under	723
subchapter S of chapter one of subtitle A of the Internal Revenue	724
Code, or any other business entity through which income flows as a	725
distributive share to its owners. A tax credit received under this	726
section by a partnership, S-corporation, or other such business	727
entity shall be apportioned among the persons to whom the income	728
or profit of the partnership, S-corporation, or other entity is	729
distributed, in the same proportions as those in which the income	730
or profit is distributed.	731

(J) If the director of development determines that a taxpayer	732
that received a tax credit under this section is not complying	733
with the requirement under division (E)(4) of this section, the	734
director shall notify the tax credit authority of the	735
noncompliance. After receiving such a notice, and after giving the	736
taxpayer an opportunity to explain the noncompliance, the	737
authority may terminate the agreement and require the taxpayer to	738
refund to the state all or a portion of the credit claimed in	739
previous years, as follows:	740

(1) If the taxpayer maintained operations at the project site	741
for less than the term of the credit, the amount required to be	742
refunded shall not exceed the amount of any tax credits previously	743
allowed and received under this section.	744

(2) If the taxpayer maintained operations at the project site	745
longer than the term of the credit but less than one and one-half	746
times the term of the credit, the amount required to be refunded	747
shall not exceed fifty per cent of the sum of any tax credits	748
previously allowed and received under this section.	749

(3) If the taxpayer maintained operations at the project site	750
for at least one and one-half times the term of the credit but	751
less than twice the term of the credit, the amount required to be	752
refunded shall not exceed twenty-five per cent of the sum of any	753
tax credits previously allowed and received under this section.	754

In determining the portion of the credit to be refunded to	755
this state, the authority shall consider the effect of market	756
conditions on the taxpayer's project and whether the taxpayer	757
continues to maintain other operations in this state. After making	758
the determination, the authority shall certify the amount to be	759
refunded to the tax commissioner. The commissioner shall make an	760
assessment for that amount against the taxpayer under Chapter	761
5733. or 5747. of the Revised Code. The time limitations on	762
assessments under Chapter 5733. or 5747. of the Revised Code do	763
not apply to an assessment under this division, but the	764
commissioner shall make the assessment within one year after the	765
date the authority certifies to the commissioner the amount to be	766
refunded.	767

If the director of development determines that a taxpayer	768
that received a tax credit under this section has reduced the	769
number of employees agreed to under division (E)(5) of this	770
section by more than ten per cent, the director shall notify the	771
tax credit authority of the noncompliance. After receiving such	772
notice, and after providing the taxpayer an opportunity to explain	773
the noncompliance, the authority may amend the agreement to reduce	774
the percentage or term of the tax credit. The reduction in the	775
percentage or term shall take effect in the taxable year in which	776
the authority amends the agreement.	777

(K) The director of development, after consultation with the	778
tax commissioner and in accordance with Chapter 119. of the	779
Revised Code, shall adopt rules necessary to implement this	780
section. The rules may provide for recipients of tax credits under	781
this section to be charged fees to cover administrative costs of	782
the tax credit program. At the time the director gives public	783
notice under division (A) of section 119.03 of the Revised Code of	784
the adoption of the rules, the director shall submit copies of the	785
proposed rules to the chairpersons of the standing committees on	786
economic development in the senate and the house of	787
representatives.	788

(L) On or before the thirty-first day of March of each year,	789
the director of development shall submit a report to the governor,	790
the president of the senate, and the speaker of the house of	791
representatives on the tax credit program under this section. The	792
report shall include information on the number of agreements that	793
were entered into under this section during the preceding calendar	794
year, a description of the project that is the subject of each	795
such agreement, and an update on the status of projects under	796
agreements entered into before the preceding calendar year.	797

(M)(1) A nonrefundable credit shall be allowed to an	798
applicable corporation and its related members in an amount equal	799
to the applicable difference. The credit is in addition to the	800
credit granted to the corporation or related members under	801
division (B) of this section. The credit is subject to divisions	802
(B) to (E) and division (J) of this section.	803

(2) A person qualifying as an applicable corporation under	804
this section for a tax year does not necessarily qualify as an	805
applicable corporation for any other tax year. No person is	806
entitled to the credit allowed under division (M) of this section	807
for the tax year immediately following the taxable year during	808
which the person fails to meet the requirements in divisions	809
(A)(6)(a)(i) and (A)(6)(b) of this section. No person is entitled	810
to the credit allowed under division (M) of this section for any	811
tax year for which the person is not eligible for the credit	812
provided under division (B) of this section.	813

Sec. 166.01.  As used in this chapter:

814

(A) "Allowable costs" means all or part of the costs of	815
project facilities or, eligible innovation projects, or eligible	816
research and development projects, including costs of acquiring,	817
constructing, reconstructing, rehabilitating, renovating,	818
enlarging, improving, equipping, or furnishing project facilities	819
or, eligible innovation projects, or eligible research and	820
development projects, site clearance and preparation,	821
supplementing and relocating public capital improvements or	822
utility facilities, designs, plans, specifications, surveys,	823
studies, and estimates of costs, expenses necessary or incident to	824
determining the feasibility or practicability of assisting an	825
eligible project or, an eligible innovation project, or an	826
eligible research and development project, or providing project	827
facilities or facilities related to an eligible innovation project	828
or an eligible research and development project, architectural,	829
engineering, and legal services fees and expenses, the costs of	830
conducting any other activities as part of a voluntary action, and	831
such other expenses as may be necessary or incidental to the	832
establishment or development of an eligible project or, an	833
eligible innovation project, or an eligible research and	834
development project, and reimbursement of moneys advanced or	835
applied by any governmental agency or other person for allowable	836
costs.	837

(B) "Allowable innovation costs" includes allowable costs of	838
eligible innovation projects and, in addition, includes the costs	839
of research and development of eligible innovation projects;	840
obtaining or creating any requisite software or computer hardware	841
related to an eligible innovation project or the products or	842
services associated therewith; testing (including, without	843
limitation, quality control activities necessary for initial	844
production), perfecting, and marketing of such products and	845
services; creating and protecting intellectual property related to	846
an eligible innovation project or any products or services related	847
thereto, including costs of securing appropriate patent,	848
trademark, trade secret, trade dress, copyright, or other form of	849
intellectual property protection for an eligible innovation	850
project or related products and services; all to the extent that	851
such expenditures could be capitalized under then-applicable	852
generally accepted accounting principles; and the reimbursement of	853
moneys advanced or applied by any governmental agency or other	854
person for allowable innovation costs.	855

(C) "Eligible innovation project" includes an eligible	856
project, including any project facilities associated with an	857
eligible innovation project and, in addition, includes all	858
tangible and intangible property related to a new product or	859
process based on new technology or the creative application of	860
existing technology, including research and development, product	861
or process testing, quality control, market research, and related	862
activities, that is to be acquired, established, expanded,	863
remodeled, rehabilitated, or modernized for industry, commerce,	864
distribution, or research, or any combination thereof, the	865
operation of which, alone or in conjunction with other eligible	866
projects, eligible innovation projects, or innovation property,	867
will create new jobs or preserve existing jobs and employment	868
opportunities and improve the economic welfare of the people of	869
the state.	870

(D) "Eligible project" means project facilities to be	871
acquired, established, expanded, remodeled, rehabilitated, or	872
modernized for industry, commerce, distribution, or research, or	873
any combination thereof, the operation of which, alone or in	874
conjunction with other facilities, will create new jobs or	875
preserve existing jobs and employment opportunities and improve	876
the economic welfare of the people of the state. "Eligible	877
project" includes, without limitation, a voluntary action. For	878
purposes of this division, "new jobs" does not include existing	879
jobs transferred from another facility within the state, and	880
"existing jobs" includes only those existing jobs with work places	881
within the municipal corporation or unincorporated area of the	882
county in which the eligible project is located.	883

"Eligible project" does not include project facilities to be	884
acquired, established, expanded, remodeled, rehabilitated, or	885
modernized for industry, commerce, distribution, or research, or	886
any combination of industry, commerce, distribution, or research,	887
if the project facilities consist solely of	888
point-of-final-purchase retail facilities. If the project	889
facilities consist of both point-of-final-purchase retail	890
facilities and nonretail facilities, only the portion of the	891
project facilities consisting of nonretail facilities is an	892
eligible project. If a warehouse facility is part of a	893
point-of-final-purchase retail facility and supplies only that	894
facility, the warehouse facility is not an eligible project.	895
Catalog distribution facilities are not considered	896
point-of-final-purchase retail facilities for purposes of this	897
paragraph, and are eligible projects.	898

(E) "Eligible research and development project" means an	899
eligible project, including project facilities, comprising,	900
within, or related to, a facility or portion of a facility at	901
which research is undertaken for the purpose of discovering	902
information that is technological in nature and the application of	903
which is intended to be useful in the development of a new or	904
improved product, process, technique, formula, or invention, a new	905
product or process based on new technology, or the creative	906
application of existing technology.	907

(F) "Financial assistance" means inducements under division	908
(B) of section 166.02 of the Revised Code, loan guarantees under	909
section 166.06 of the Revised Code, and direct loans under section	910
166.07 of the Revised Code.	911

(F)(G) "Governmental action" means any action by a	912
governmental agency relating to the establishment, development, or	913
operation of an eligible project or, eligible innovation project,	914
or eligible research and development project, and project	915
facilities that the governmental agency acting has authority to	916
take or provide for the purpose under law, including, but not	917
limited to, actions relating to contracts and agreements, zoning,	918
building, permits, acquisition and disposition of property, public	919
capital improvements, utility and transportation service,	920
taxation, employee recruitment and training, and liaison and	921
coordination with and among governmental agencies.	922

(G)(H) "Governmental agency" means the state and any state	923
department, division, commission, institution or authority; a	924
municipal corporation, county, or township, and any agency	925
thereof, and any other political subdivision or public corporation	926
or the United States or any agency thereof; any agency,	927
commission, or authority established pursuant to an interstate	928
compact or agreement; and any combination of the above.	929

(H)(I) "Innovation financial assistance" means inducements	930
under division (B) of section 166.12 of the Revised Code,	931
innovation Ohio loan guarantees under section 166.15 of the	932
Revised Code, and innovation Ohio loans under section 166.16 of	933
the Revised Code.	934

(I)(J) "Innovation Ohio loan guarantee reserve requirement"	935
means, at any time, with respect to innovation loan guarantees	936
made under section 166.15 of the Revised Code, a balance in the	937
innovation Ohio loan guarantee fund equal to the greater of twenty	938
per cent of the then-outstanding principal amount of all	939
outstanding innovation loan guarantees made pursuant to section	940
166.15 of the Revised Code or fifty per cent of the principal	941
amount of the largest outstanding guarantee made pursuant to	942
section 166.15 of the Revised Code.	943

(J)(K) "Innovation property" includes property and also	944
includes software, inventory, licenses, contract rights, goodwill,	945
intellectual property, including without limitation, patents,	946
patent applications, trademarks and service marks, and trade	947
secrets, and other tangible and intangible property, and any	948
rights and interests in or connected to the foregoing.	949

(K)(L) "Loan guarantee reserve requirement" means, at any	950
time, with respect to loan guarantees made under section 166.06 of	951
the Revised Code, a balance in the loan guarantee fund equal to	952
the greater of twenty per cent of the then-outstanding principal	953
amount of all outstanding guarantees made pursuant to section	954
166.06 of the Revised Code or fifty per cent of the principal	955
amount of the largest outstanding guarantee made pursuant to	956
section 166.06 of the Revised Code.	957

(L)(M) "Person" means any individual, firm, partnership,	958
association, corporation, or governmental agency, and any	959
combination thereof.	960

(M)(N) "Project facilities" means buildings, structures, and	961
other improvements, and equipment and other property, excluding	962
small tools, supplies, and inventory, and any one, part of, or	963
combination of the above, comprising all or part of, or serving or	964
being incidental to, an eligible project or, an eligible	965
innovation project, or an eligible research and development	966
project, including, but not limited to, public capital	967
improvements.	968

(N)(O) "Property" means real and personal property and	969
interests therein.	970

(O)(P) "Public capital improvements" means capital	971
improvements or facilities that any governmental agency has	972
authority to acquire, pay the costs of, own, maintain, or operate,	973
or to contract with other persons to have the same done,	974
including, but not limited to, highways, roads, streets, water and	975
sewer facilities, railroad and other transportation facilities,	976
and air and water pollution control and solid waste disposal	977
facilities.	978

(P)(Q) "Research and development financial assistance" means	979
inducements under section 166.17 of the Revised Code, research and	980
development loans under section 166.21 of the Revised Code, and	981
research and development tax credits under sections 5733.352 and	982
5747.331 of the Revised Code.	983

(R) "Targeted innovation industry sectors" means industry	984
sectors involving the production or use of advanced materials,	985
instruments, controls and electronics, power and propulsion,	986
biosciences, and information technology, or such other sectors as	987
may be designated by the director of development.	988

(Q)(S) "Voluntary action" means a voluntary action, as	989
defined in section 3746.01 of the Revised Code, that is conducted	990
under the voluntary action program established in Chapter 3746. of	991
the Revised Code.	992

(R)(T) "Project financing obligations" means obligations	993
issued pursuant to section 166.08 of the Revised Code other than	994
obligations for which the bond proceedings provide that bond	995
service charges shall be paid from receipts of the state	996
representing gross profit on the sale of spirituous liquor as	997
referred to in division (B)(4) of section 4310.10 of the Revised	998
Code.	999

(S)(U) "Regional economic development entity" means an entity	1000
that is under contract with the director of development to	1001
administer a loan program under this chapter in a particular area	1002
of this state.	1003

Sec. 166.02.  (A) The general assembly finds that many local	1004
areas throughout the state are experiencing economic stagnation or	1005
decline, and that the economic development program provided for in	1006
sections 166.01 to 166.11 of the Revised Code will constitute a	1007
deserved, necessary reinvestment by the state in those areas,	1008
materially contribute to their economic revitalization, and result	1009
in improving the economic welfare of all the people of the state.	1010
Accordingly, it is declared to be the public policy of the state,	1011
through the operations under sections 166.01 to 166.11 of the	1012
Revised Code and other applicable laws adopted pursuant to Section	1013
13 of Article VIII, Ohio Constitution, and other authority vested	1014
in the general assembly, to assist in and facilitate the	1015
establishment or development of eligible projects or assist and	1016
cooperate with any governmental agency in achieving such purpose.	1017

(B) In furtherance of such public policy and to implement	1018
such purpose, the director of development may:	1019

(1) After consultation with appropriate governmental	1020
agencies, enter into agreements with persons engaged in industry,	1021
commerce, distribution, or research and with governmental agencies	1022
to induce such persons to acquire, construct, reconstruct,	1023
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	1024
otherwise develop, eligible projects and make provision therein	1025
for project facilities and governmental actions, as authorized by	1026
this chapter and other applicable laws, subject to any required	1027
actions by the general assembly or the controlling board and	1028
subject to applicable local government laws and regulations;	1029

(2) Provide for the guarantees and loans as provided for in	1030
sections 166.06 and 166.07 of the Revised Code;	1031

(3) Subject to release of such moneys by the controlling	1032
board, contract for labor and materials needed for, or contract	1033
with others, including governmental agencies, to provide, project	1034
facilities the allowable costs of which are to be paid for or	1035
reimbursed from moneys in the facilities establishment fund, and	1036
contract for the operation of such project facilities;	1037

(4) Subject to release thereof by the controlling board, from	1038
moneys in the facilities establishment fund acquire or contract to	1039
acquire by gift, exchange, or purchase, including the obtaining	1040
and exercise of purchase options, property, and convey or	1041
otherwise dispose of, or provide for the conveyance or disposition	1042
of, property so acquired or contracted to be acquired by sale,	1043
exchange, lease, lease purchase, conditional or installment sale,	1044
transfer, or other disposition, including the grant of an option	1045
to purchase, to any governmental agency or to any other person	1046
without necessity for competitive bidding and upon such terms and	1047
conditions and manner of consideration pursuant to and as the	1048
director determines to be appropriate to satisfy the objectives of	1049
sections 166.01 to 166.11 of the Revised Code;	1050

(5) Retain the services of or employ financial consultants,	1051
appraisers, consulting engineers, superintendents, managers,	1052
construction and accounting experts, attorneys, and employees,	1053
agents, and independent contractors as are necessary in the	1054
director's judgment and fix the compensation for their services;	1055

(6) Receive and accept from any person grants, gifts, and	1056
contributions of money, property, labor, and other things of	1057
value, to be held, used and applied only for the purpose for which	1058
such grants, gifts, and contributions are made;	1059

(7) Enter into appropriate arrangements and agreements with	1060
any governmental agency for the taking or provision by that	1061
governmental agency of any governmental action;	1062

(8) Do all other acts and enter into contracts and execute	1063
all instruments necessary or appropriate to carry out the	1064
provisions of Chapter 166. of the Revised Code;	1065

(9) Adopt rules to implement any of the provisions of Chapter	1066
166. of the Revised Code applicable to the director.	1067

(C) The determinations by the director that facilities	1068
constitute eligible projects, that facilities are project	1069
facilities, that costs of such facilities are allowable costs, and	1070
all other determinations relevant thereto or to an action taken or	1071
agreement entered into shall be conclusive for purposes of the	1072
validity and enforceability of rights of parties arising from	1073
actions taken and agreements entered into under this chapter.	1074

(D) Except as otherwise prescribed in Chapter 166. of the	1075
Revised Code, all expenses and obligations incurred by the	1076
director in carrying out the director's powers and in exercising	1077
the director's duties under Chapter 166. of the Revised Code,	1078
shall be payable solely from, as appropriate, moneys in the	1079
facilities establishment fund, the loan guarantee fund, the	1080
innovation Ohio loan guarantee fund, the innovation Ohio loan	1081
fund, the research and development loan fund, or moneys	1082
appropriated for such purpose by the general assembly. Chapter	1083
166. of the Revised Code does not authorize the director or the	1084
issuing authority under section 166.08 of the Revised Code to	1085
incur bonded indebtedness of the state or any political	1086
subdivision thereof, or to obligate or pledge moneys raised by	1087
taxation for the payment of any bonds or notes issued or	1088
guarantees made pursuant to Chapter 166. of the Revised Code.	1089

(E) No financial assistance for project facilities shall be	1090
provided under this chapter unless the provisions of the agreement	1091
providing for such assistance specify that all wages paid to	1092
laborers and mechanics employed on such project facilities for	1093
which the assistance is granted shall be paid at the prevailing	1094
rates of wages of laborers and mechanics for the class of work	1095
called for by such project facilities, which wages shall be	1096
determined in accordance with the requirements of Chapter 4115. of	1097
the Revised Code for determination of prevailing wage rates,	1098
provided that the requirements of this division do not apply where	1099
the federal government or any of its agencies provides financing	1100
assistance as to all or any part of the funds used in connection	1101
with such project facilities and prescribes predetermined minimum	1102
wages to be paid to such laborers and mechanics; and provided	1103
further that should a nonpublic user beneficiary of the eligible	1104
project undertake, as part of the eligible project, construction	1105
to be performed by its regular bargaining unit employees who are	1106
covered under a collective bargaining agreement which was in	1107
existence prior to the date of the document authorizing such	1108
assistance then, in that event, the rate of pay provided under the	1109
collective bargaining agreement may be paid to such employees.	1110

(F) Any governmental agency may enter into an agreement with	1111
the director, any other governmental agency, or a person to be	1112
assisted under this chapter, to take or provide for the purposes	1113
of this chapter any governmental action it is authorized to take	1114
or provide, and to undertake on behalf and at the request of the	1115
director any action which the director is authorized to undertake	1116
pursuant to divisions (B)(3), (4), and (5) of this section or	1117
divisions (B)(3), (4), and (5) of section 166.12 of the Revised	1118
Code. Governmental agencies of the state shall cooperate with and	1119
provide assistance to the director of development and the	1120
controlling board in the exercise of their respective functions	1121
under this chapter.	1122

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

1123

(1) "Bond proceedings" means the resolution, order, trust	1124
agreement, indenture, lease, and other agreements, amendments and	1125
supplements to the foregoing, or any one or more or combination	1126
thereof, authorizing or providing for the terms and conditions	1127
applicable to, or providing for the security or liquidity of,	1128
obligations issued pursuant to this section, and the provisions	1129
contained in such obligations.	1130

(2) "Bond service charges" means principal, including	1131
mandatory sinking fund requirements for retirement of obligations,	1132
and interest, and redemption premium, if any, required to be paid	1133
by the state on obligations.	1134

(3) "Bond service fund" means the applicable fund and	1135
accounts therein created for and pledged to the payment of bond	1136
service charges, which may be, or may be part of, the economic	1137
development bond service fund created by division (S) of this	1138
section including all moneys and investments, and earnings from	1139
investments, credited and to be credited thereto.	1140

(4) "Issuing authority" means the treasurer of state, or the	1141
officer who by law performs the functions of such officer.	1142

(5) "Obligations" means bonds, notes, or other evidence of	1143
obligation including interest coupons pertaining thereto, issued	1144
pursuant to this section.	1145

(6) "Pledged receipts" means all receipts of the state	1146
representing the gross profit on the sale of spirituous liquor, as	1147
referred to in division (B)(4) of section 4301.10 of the Revised	1148
Code, after paying all costs and expenses of the division of	1149
liquor control and providing an adequate working capital reserve	1150
for the division of liquor control as provided in that division,	1151
but excluding the sum required by the second paragraph of section	1152
4301.12 of the Revised Code, as in effect on May 2, 1980, to be	1153
paid into the state treasury; moneys accruing to the state from	1154
the lease, sale, or other disposition, or use, of project	1155
facilities, and from the repayment, including interest, of loans	1156
made from proceeds received from the sale of obligations; accrued	1157
interest received from the sale of obligations; income from the	1158
investment of the special funds; and any gifts, grants, donations,	1159
and pledges, and receipts therefrom, available for the payment of	1160
bond service charges.	1161

(7) "Special funds" or "funds" means, except where the	1162
context does not permit, the bond service fund, and any other	1163
funds, including reserve funds, created under the bond	1164
proceedings, and the economic development bond service fund	1165
created by division (S) of this section to the extent provided in	1166
the bond proceedings, including all moneys and investments, and	1167
earnings from investment, credited and to be credited thereto.	1168

(B) Subject to the limitations provided in section 166.11 of	1169
the Revised Code, the issuing authority, upon the certification by	1170
the director of development to the issuing authority of the amount	1171
of moneys or additional moneys needed in the facilities	1172
establishment fund, the loan guarantee fund, the innovation Ohio	1173
loan fund, or the innovation Ohio loan guarantee fund, or the	1174
research and development loan fund for the purpose of paying, or	1175
making loans for, allowable costs from the facilities	1176
establishment fund or, allowable innovation costs from the	1177
innovation Ohio loan fund, or allowable costs from the research	1178
and development loan fund, or needed for capitalized interest, for	1179
funding reserves, and for paying costs and expenses incurred in	1180
connection with the issuance, carrying, securing, paying,	1181
redeeming, or retirement of the obligations or any obligations	1182
refunded thereby, including payment of costs and expenses relating	1183
to letters of credit, lines of credit, insurance, put agreements,	1184
standby purchase agreements, indexing, marketing, remarketing and	1185
administrative arrangements, interest swap or hedging agreements,	1186
and any other credit enhancement, liquidity, remarketing, renewal,	1187
or refunding arrangements, all of which are authorized by this	1188
section, or providing moneys for the loan guarantee fund or the	1189
innovation Ohio loan guarantee fund, as provided in this chapter	1190
or needed for the purposes of funds established in accordance with	1191
or pursuant to sections 122.35, 122.42, 122.54, 122.55, 122.56,	1192
122.561, 122.57, and 122.80 of the Revised Code which are within	1193
the authorization of Section 13 of Article VIII, Ohio	1194
Constitution, shall issue obligations of the state under this	1195
section in the required amount; provided that such obligations may	1196
be issued to satisfy the covenants in contracts of guarantee made	1197
under section 166.06 or 166.15 of the Revised Code,	1198
notwithstanding limitations otherwise applicable to the issuance	1199
of obligations under this section. The proceeds of such	1200
obligations, except for the portion to be deposited in special	1201
funds, including reserve funds, as may be provided in the bond	1202
proceedings, shall as provided in the bond proceedings be	1203
deposited by the director of development to the facilities	1204
establishment fund, the loan guarantee fund, the innovation Ohio	1205
loan guarantee fund, or the innovation Ohio loan fund, or the	1206
research and development loan fund. Bond proceedings for project	1207
financing obligations may provide that the proceeds derived from	1208
the issuance of such obligations shall be deposited into such fund	1209
or funds provided for in the bond proceedings and, to the extent	1210
provided for in the bond proceedings, such proceeds shall be	1211
deemed to have been deposited into the facilities establishment	1212
fund and transferred to such fund or funds. The issuing authority	1213
may appoint trustees, paying agents, and transfer agents and may	1214
retain the services of financial advisors, accounting experts, and	1215
attorneys, and retain or contract for the services of marketing,	1216
remarketing, indexing, and administrative agents, other	1217
consultants, and independent contractors, including printing	1218
services, as are necessary in the issuing authority's judgment to	1219
carry out this section. The costs of such services are allowable	1220
costs payable from the facilities establishment fund or the	1221
research and development loan fund or allowable innovation costs	1222
payable from the innovation Ohio loan fund.	1223

(C) The holders or owners of such obligations shall have no	1224
right to have moneys raised by taxation obligated or pledged, and	1225
moneys raised by taxation shall not be obligated or pledged, for	1226
the payment of bond service charges. Such holders or owners shall	1227
have no rights to payment of bond service charges from any moneys	1228
accruing to the state from the lease, sale, or other disposition,	1229
or use, of project facilities, or from payment of the principal of	1230
or interest on loans made, or fees charged for guarantees made, or	1231
from any money or property received by the director, treasurer of	1232
state, or the state under Chapter 122. of the Revised Code, or	1233
from any other use of the proceeds of the sale of the obligations,	1234
and no such moneys may be used for the payment of bond service	1235
charges, except for accrued interest, capitalized interest, and	1236
reserves funded from proceeds received upon the sale of the	1237
obligations and except as otherwise expressly provided in the	1238
applicable bond proceedings pursuant to written directions by the	1239
director. The right of such holders and owners to payment of bond	1240
service charges is limited to all or that portion of the pledged	1241
receipts and those special funds pledged thereto pursuant to the	1242
bond proceedings in accordance with this section, and each such	1243
obligation shall bear on its face a statement to that effect.	1244

(D) Obligations shall be authorized by resolution or order of	1245
the issuing authority and the bond proceedings shall provide for	1246
the purpose thereof and the principal amount or amounts, and shall	1247
provide for or authorize the manner or agency for determining the	1248
principal maturity or maturities, not exceeding twenty-five years	1249
from the date of issuance, the interest rate or rates or the	1250
maximum interest rate, the date of the obligations and the dates	1251
of payment of interest thereon, their denomination, and the	1252
establishment within or without the state of a place or places of	1253
payment of bond service charges. Sections 9.98 to 9.983 of the	1254
Revised Code are applicable to obligations issued under this	1255
section, subject to any applicable limitation under section 166.11	1256
of the Revised Code. The purpose of such obligations may be stated	1257
in the bond proceedings in terms describing the general purpose or	1258
purposes to be served. The bond proceedings also shall provide,	1259
subject to the provisions of any other applicable bond	1260
proceedings, for the pledge of all, or such part as the issuing	1261
authority may determine, of the pledged receipts and the	1262
applicable special fund or funds to the payment of bond service	1263
charges, which pledges may be made either prior or subordinate to	1264
other expenses, claims, or payments, and may be made to secure the	1265
obligations on a parity with obligations theretofore or thereafter	1266
issued, if and to the extent provided in the bond proceedings. The	1267
pledged receipts and special funds so pledged and thereafter	1268
received by the state are immediately subject to the lien of such	1269
pledge without any physical delivery thereof or further act, and	1270
the lien of any such pledges is valid and binding against all	1271
parties having claims of any kind against the state or any	1272
governmental agency of the state, irrespective of whether such	1273
parties have notice thereof, and shall create a perfected security	1274
interest for all purposes of Chapter 1309. of the Revised Code,	1275
without the necessity for separation or delivery of funds or for	1276
the filing or recording of the bond proceedings by which such	1277
pledge is created or any certificate, statement or other document	1278
with respect thereto; and the pledge of such pledged receipts and	1279
special funds is effective and the money therefrom and thereof may	1280
be applied to the purposes for which pledged without necessity for	1281
any act of appropriation. Every pledge, and every covenant and	1282
agreement made with respect thereto, made in the bond proceedings	1283
may therein be extended to the benefit of the owners and holders	1284
of obligations authorized by this section, and to any trustee	1285
therefor, for the further security of the payment of the bond	1286
service charges.	1287

(E) The bond proceedings may contain additional provisions as	1288
to:	1289

(1) The redemption of obligations prior to maturity at the	1290
option of the issuing authority at such price or prices and under	1291
such terms and conditions as are provided in the bond proceedings;	1292

(2) Other terms of the obligations;

1293

(3) Limitations on the issuance of additional obligations;

1294

(4) The terms of any trust agreement or indenture securing	1295
the obligations or under which the same may be issued;	1296

(5) The deposit, investment and application of special funds,	1297
and the safeguarding of moneys on hand or on deposit, without	1298
regard to Chapter 131. or 135. of the Revised Code, but subject to	1299
any special provisions of this chapter, with respect to particular	1300
funds or moneys, provided that any bank or trust company which	1301
acts as depository of any moneys in the special funds may furnish	1302
such indemnifying bonds or may pledge such securities as required	1303
by the issuing authority;	1304

(6) Any or every provision of the bond proceedings being	1305
binding upon such officer, board, commission, authority, agency,	1306
department, or other person or body as may from time to time have	1307
the authority under law to take such actions as may be necessary	1308
to perform all or any part of the duty required by such provision;	1309

(7) Any provision that may be made in a trust agreement or	1310
indenture;	1311

(8) Any other or additional agreements with the holders of	1312
the obligations, or the trustee therefor, relating to the	1313
obligations or the security therefor, including the assignment of	1314
mortgages or other security obtained or to be obtained for loans	1315
under section 122.43, 166.07, or 166.16 of the Revised Code.	1316

(F) The obligations may have the great seal of the state or a	1317
facsimile thereof affixed thereto or printed thereon. The	1318
obligations and any coupons pertaining to obligations shall be	1319
signed or bear the facsimile signature of the issuing authority.	1320
Any obligations or coupons may be executed by the person who, on	1321
the date of execution, is the proper issuing authority although on	1322
the date of such bonds or coupons such person was not the issuing	1323
authority. If the issuing authority whose signature or a facsimile	1324
of whose signature appears on any such obligation or coupon ceases	1325
to be the issuing authority before delivery thereof, such	1326
signature or facsimile is nevertheless valid and sufficient for	1327
all purposes as if the former issuing authority had remained the	1328
issuing authority until such delivery; and if the seal to be	1329
affixed to obligations has been changed after a facsimile of the	1330
seal has been imprinted on such obligations, such facsimile seal	1331
shall continue to be sufficient as to such obligations and	1332
obligations issued in substitution or exchange therefor.	1333

(G) All obligations are negotiable instruments and securities	1334
under Chapter 1308. of the Revised Code, subject to the provisions	1335
of the bond proceedings as to registration. The obligations may be	1336
issued in coupon or in registered form, or both, as the issuing	1337
authority determines. Provision may be made for the registration	1338
of any obligations with coupons attached thereto as to principal	1339
alone or as to both principal and interest, their exchange for	1340
obligations so registered, and for the conversion or reconversion	1341
into obligations with coupons attached thereto of any obligations	1342
registered as to both principal and interest, and for reasonable	1343
charges for such registration, exchange, conversion, and	1344
reconversion.	1345

(H) Obligations may be sold at public sale or at private	1346
sale, as determined in the bond proceedings.	1347

Obligations issued to provide moneys for the loan guarantee	1348
fund or the innovation Ohio loan guarantee fund may, as determined	1349
by the issuing authority, be sold at private sale, and without	1350
publication of a notice of sale.	1351

(I) Pending preparation of definitive obligations, the	1352
issuing authority may issue interim receipts or certificates which	1353
shall be exchanged for such definitive obligations.	1354

(J) In the discretion of the issuing authority, obligations	1355
may be secured additionally by a trust agreement or indenture	1356
between the issuing authority and a corporate trustee which may be	1357
any trust company or bank having its principal place of business	1358
within the state. Any such agreement or indenture may contain the	1359
resolution or order authorizing the issuance of the obligations,	1360
any provisions that may be contained in any bond proceedings, and	1361
other provisions which are customary or appropriate in an	1362
agreement or indenture of such type, including, but not limited	1363
to:	1364

(1) Maintenance of each pledge, trust agreement, indenture,	1365
or other instrument comprising part of the bond proceedings until	1366
the state has fully paid the bond service charges on the	1367
obligations secured thereby, or provision therefor has been made;	1368

(2) In the event of default in any payments required to be	1369
made by the bond proceedings, or any other agreement of the	1370
issuing authority made as a part of the contract under which the	1371
obligations were issued, enforcement of such payments or agreement	1372
by mandamus, the appointment of a receiver, suit in equity, action	1373
at law, or any combination of the foregoing;	1374

(3) The rights and remedies of the holders of obligations and	1375
of the trustee, and provisions for protecting and enforcing them,	1376
including limitations on rights of individual holders of	1377
obligations;	1378

(4) The replacement of any obligations that become mutilated	1379
or are destroyed, lost, or stolen;	1380

(5) Such other provisions as the trustee and the issuing	1381
authority agree upon, including limitations, conditions, or	1382
qualifications relating to any of the foregoing.	1383

(K) Any holders of obligations or trustees under the bond	1384
proceedings, except to the extent that their rights are restricted	1385
by the bond proceedings, may by any suitable form of legal	1386
proceedings, protect and enforce any rights under the laws of this	1387
state or granted by such bond proceedings. Such rights include the	1388
right to compel the performance of all duties of the issuing	1389
authority, the director of development, or the division of liquor	1390
control required by this chapter or the bond proceedings; to	1391
enjoin unlawful activities; and in the event of default with	1392
respect to the payment of any bond service charges on any	1393
obligations or in the performance of any covenant or agreement on	1394
the part of the issuing authority, the director of development, or	1395
the division of liquor control in the bond proceedings, to apply	1396
to a court having jurisdiction of the cause to appoint a receiver	1397
to receive and administer the pledged receipts and special funds,	1398
other than those in the custody of the treasurer of state, which	1399
are pledged to the payment of the bond service charges on such	1400
obligations or which are the subject of the covenant or agreement,	1401
with full power to pay, and to provide for payment of bond service	1402
charges on, such obligations, and with such powers, subject to the	1403
direction of the court, as are accorded receivers in general	1404
equity cases, excluding any power to pledge additional revenues or	1405
receipts or other income or moneys of the issuing authority or the	1406
state or governmental agencies of the state to the payment of such	1407
principal and interest and excluding the power to take possession	1408
of, mortgage, or cause the sale or otherwise dispose of any	1409
project facilities.	1410

Each duty of the issuing authority and the issuing	1411
authority's officers and employees, and of each governmental	1412
agency and its officers, members, or employees, undertaken	1413
pursuant to the bond proceedings or any agreement or lease,	1414
lease-purchase agreement, or loan made under authority of this	1415
chapter, and in every agreement by or with the issuing authority,	1416
is hereby established as a duty of the issuing authority, and of	1417
each such officer, member, or employee having authority to perform	1418
such duty, specifically enjoined by the law resulting from an	1419
office, trust, or station within the meaning of section 2731.01 of	1420
the Revised Code.	1421

The person who is at the time the issuing authority, or the	1422
issuing authority's officers or employees, are not liable in their	1423
personal capacities on any obligations issued by the issuing	1424
authority or any agreements of or with the issuing authority.	1425

(L) The issuing authority may authorize and issue obligations	1426
for the refunding, including funding and retirement, and advance	1427
refunding with or without payment or redemption prior to maturity,	1428
of any obligations previously issued by the issuing authority.	1429
Such obligations may be issued in amounts sufficient for payment	1430
of the principal amount of the prior obligations, any redemption	1431
premiums thereon, principal maturities of any such obligations	1432
maturing prior to the redemption of the remaining obligations on a	1433
parity therewith, interest accrued or to accrue to the maturity	1434
dates or dates of redemption of such obligations, and any	1435
allowable costs including expenses incurred or to be incurred in	1436
connection with such issuance and such refunding, funding, and	1437
retirement. Subject to the bond proceedings therefor, the portion	1438
of proceeds of the sale of obligations issued under this division	1439
to be applied to bond service charges on the prior obligations	1440
shall be credited to an appropriate account held by the trustee	1441
for such prior or new obligations or to the appropriate account in	1442
the bond service fund for such obligations. Obligations authorized	1443
under this division shall be deemed to be issued for those	1444
purposes for which such prior obligations were issued and are	1445
subject to the provisions of this section pertaining to other	1446
obligations, except as otherwise provided in this section;	1447
provided that, unless otherwise authorized by the general	1448
assembly, any limitations imposed by the general assembly pursuant	1449
to this section with respect to bond service charges applicable to	1450
the prior obligations shall be applicable to the obligations	1451
issued under this division to refund, fund, advance refund or	1452
retire such prior obligations.	1453

(M) The authority to issue obligations under this section	1454
includes authority to issue obligations in the form of bond	1455
anticipation notes and to renew the same from time to time by the	1456
issuance of new notes. The holders of such notes or interest	1457
coupons pertaining thereto shall have a right to be paid solely	1458
from the pledged receipts and special funds that may be pledged to	1459
the payment of the bonds anticipated, or from the proceeds of such	1460
bonds or renewal notes, or both, as the issuing authority provides	1461
in the resolution or order authorizing such notes. Such notes may	1462
be additionally secured by covenants of the issuing authority to	1463
the effect that the issuing authority and the state will do such	1464
or all things necessary for the issuance of such bonds or renewal	1465
notes in appropriate amount, and apply the proceeds thereof to the	1466
extent necessary, to make full payment of the principal of and	1467
interest on such notes at the time or times contemplated, as	1468
provided in such resolution or order. For such purpose, the	1469
issuing authority may issue bonds or renewal notes in such	1470
principal amount and upon such terms as may be necessary to	1471
provide funds to pay when required the principal of and interest	1472
on such notes, notwithstanding any limitations prescribed by or	1473
for purposes of this section. Subject to this division, all	1474
provisions for and references to obligations in this section are	1475
applicable to notes authorized under this division.	1476

The issuing authority in the bond proceedings authorizing the	1477
issuance of bond anticipation notes shall set forth for such bonds	1478
an estimated interest rate and a schedule of principal payments	1479
for such bonds and the annual maturity dates thereof, and for	1480
purposes of any limitation on bond service charges prescribed	1481
under division (A) of section 166.11 of the Revised Code, the	1482
amount of bond service charges on such bond anticipation notes is	1483
deemed to be the bond service charges for the bonds anticipated	1484
thereby as set forth in the bond proceedings applicable to such	1485
notes, but this provision does not modify any authority in this	1486
section to pledge receipts and special funds to, and covenant to	1487
issue bonds to fund, the payment of principal of and interest and	1488
any premium on such notes.	1489

(N) Obligations issued under this section are lawful	1490
investments for banks, societies for savings, savings and loan	1491
associations, deposit guarantee associations, trust companies,	1492
trustees, fiduciaries, insurance companies, including domestic for	1493
life and domestic not for life, trustees or other officers having	1494
charge of sinking and bond retirement or other special funds of	1495
political subdivisions and taxing districts of this state, the	1496
commissioners of the sinking fund of the state, the administrator	1497
of workers' compensation, the state teachers retirement system,	1498
the public employees retirement system, the school employees	1499
retirement system, and the Ohio police and fire pension fund,	1500
notwithstanding any other provisions of the Revised Code or rules	1501
adopted pursuant thereto by any governmental agency of the state	1502
with respect to investments by them, and are also acceptable as	1503
security for the deposit of public moneys.	1504

(O) Unless otherwise provided in any applicable bond	1505
proceedings, moneys to the credit of or in the special funds	1506
established by or pursuant to this section may be invested by or	1507
on behalf of the issuing authority only in notes, bonds, or other	1508
obligations of the United States, or of any agency or	1509
instrumentality of the United States, obligations guaranteed as to	1510
principal and interest by the United States, obligations of this	1511
state or any political subdivision of this state, and certificates	1512
of deposit of any national bank located in this state and any	1513
bank, as defined in section 1101.01 of the Revised Code, subject	1514
to inspection by the superintendent of banks. If the law or the	1515
instrument creating a trust pursuant to division (J) of this	1516
section expressly permits investment in direct obligations of the	1517
United States or an agency of the United States, unless expressly	1518
prohibited by the instrument, such moneys also may be invested in	1519
no-front-end-load money market mutual funds consisting exclusively	1520
of obligations of the United States or an agency of the United	1521
States and in repurchase agreements, including those issued by the	1522
fiduciary itself, secured by obligations of the United States or	1523
an agency of the United States; and in common trust funds	1524
established in accordance with section 1111.20 of the Revised Code	1525
and consisting exclusively of any such securities, notwithstanding	1526
division (A)(4) of that section. The income from such investments	1527
shall be credited to such funds as the issuing authority	1528
determines, and such investments may be sold at such times as the	1529
issuing authority determines or authorizes.	1530

(P) Provision may be made in the applicable bond proceedings	1531
for the establishment of separate accounts in the bond service	1532
fund and for the application of such accounts only to the	1533
specified bond service charges on obligations pertinent to such	1534
accounts and bond service fund and for other accounts therein	1535
within the general purposes of such fund. Unless otherwise	1536
provided in any applicable bond proceedings, moneys to the credit	1537
of or in the several special funds established pursuant to this	1538
section shall be disbursed on the order of the treasurer of state,	1539
provided that no such order is required for the payment from the	1540
bond service fund when due of bond service charges on obligations.	1541

(Q) The issuing authority may pledge all, or such portion as	1542
the issuing authority determines, of the pledged receipts to the	1543
payment of bond service charges on obligations issued under this	1544
section, and for the establishment and maintenance of any	1545
reserves, as provided in the bond proceedings, and make other	1546
provisions therein with respect to pledged receipts as authorized	1547
by this chapter, which provisions are controlling notwithstanding	1548
any other provisions of law pertaining thereto.	1549

(R) The issuing authority may covenant in the bond	1550
proceedings, and any such covenants are controlling	1551
notwithstanding any other provision of law, that the state and	1552
applicable officers and governmental agencies of the state,	1553
including the general assembly, so long as any obligations are	1554
outstanding, shall:	1555

(1) Maintain statutory authority for and cause to be charged	1556
and collected wholesale and retail prices for spirituous liquor	1557
sold by the state or its agents so that the pledged receipts are	1558
sufficient in amount to meet bond service charges, and the	1559
establishment and maintenance of any reserves and other	1560
requirements provided for in the bond proceedings, and, as	1561
necessary, to meet covenants contained in contracts of guarantee	1562
made under section 166.06 of the Revised Code;	1563

(2) Take or permit no action, by statute or otherwise, that	1564
would impair the exemption from federal income taxation of the	1565
interest on the obligations.	1566

(S) There is hereby created the economic development bond	1567
service fund, which shall be in the custody of the treasurer of	1568
state but shall be separate and apart from and not a part of the	1569
state treasury. All moneys received by or on account of the	1570
issuing authority or state agencies and required by the applicable	1571
bond proceedings, consistent with this section, to be deposited,	1572
transferred, or credited to a bond service fund or the economic	1573
development bond service fund, and all other moneys transferred or	1574
allocated to or received for the purposes of the fund, shall be	1575
deposited and credited to such fund and to any separate accounts	1576
therein, subject to applicable provisions of the bond proceedings,	1577
but without necessity for any act of appropriation. During the	1578
period beginning with the date of the first issuance of	1579
obligations and continuing during such time as any such	1580
obligations are outstanding, and so long as moneys in the	1581
pertinent bond service funds are insufficient to pay all bond	1582
services charges on such obligations becoming due in each year, a	1583
sufficient amount of the gross profit on the sale of spirituous	1584
liquor included in pledged receipts are committed and shall be	1585
paid to the bond service fund or economic development bond service	1586
fund in each year for the purpose of paying the bond service	1587
charges becoming due in that year without necessity for further	1588
act of appropriation for such purpose and notwithstanding anything	1589
to the contrary in Chapter 4301. of the Revised Code. The economic	1590
development bond service fund is a trust fund and is hereby	1591
pledged to the payment of bond service charges to the extent	1592
provided in the applicable bond proceedings, and payment thereof	1593
from such fund shall be made or provided for by the treasurer of	1594
state in accordance with such bond proceedings without necessity	1595
for any act of appropriation.	1596

(T) The obligations, the transfer thereof, and the income	1597
therefrom, including any profit made on the sale thereof, shall at	1598
all times be free from taxation within the state.	1599

Sec. 166.11.  (A) The aggregate principal amount of project	1600
financing obligations that may be issued under section 166.08 of	1601
the Revised Code is three hundred million dollars, plus the	1602
principal amount of such project financing obligations retired by	1603
payments. The aggregate principal amount of obligations, exclusive	1604
of project financing obligations, that may be issued under section	1605
166.08 of the Revised Code is threefive hundred million dollars,	1606
plus the principal amount of any such obligations retired by	1607
payment, the amounts held or obligations pledged for the payment	1608
of the principal amount of any such obligations outstanding,	1609
amounts in special funds held as reserves to meet bond service	1610
charges, and amounts of obligations issued to provide moneys	1611
required to meet payments from the loan guarantee fund created in	1612
section 166.06 of the Revised Code and the innovation Ohio loan	1613
guarantee fund created in section 166.15 of the Revised Code, and	1614
minus the amount if any by which four per cent of the unpaid	1615
principal amount of loan repayments guaranteed under section	1616
166.06 of the Revised Code exceeds the amount in the loan	1617
guarantee fund. The terms of the obligations issued under section	1618
166.08 of the Revised Code, other than obligations issued to meet	1619
guarantees that cannot be satisfied from amounts then held in the	1620
loan guarantee fund or the innovation Ohio loan guarantee fund,	1621
shall be such that the aggregate amount of moneys used from profit	1622
from the sale of spirituous liquor, and not from other sources, in	1623
any fiscal year shall not exceed twenty-fiveforty-five million	1624
dollars. For purposes of the preceding sentence, "other sources"	1625
include the annual investment income on special funds to the	1626
extent it will be available for payment of any bond service	1627
charges in lieu of use of profit from the sale of spirituous	1628
liquor, and shall be estimated on the basis of the expected	1629
funding of those special funds and assumed investment earnings	1630
thereon at a rate equal to the weighted average yield on	1631
investments of those special funds determined as of any date	1632
within sixty days immediately preceding the date of issuance of	1633
the bonds in respect of which the determination is being made. The	1634
determinations required by this division shall be made by the	1635
treasurer of state at the time of issuance of an issue of	1636
obligations and shall be conclusive for purposes of such issue of	1637
obligations from and after their issuance and delivery.	1638

(B) The aggregate amount of the guaranteed portion of the	1639
unpaid principal of loans guaranteed under sections 166.06 and	1640
166.15 of the Revised Code and the unpaid principal of loans made	1641
under sections 166.07 and, 166.16, and 166.21 of the Revised Code	1642
may not at any time exceed seveneight hundred million dollars. Of	1643
that seveneight hundred million dollars, the aggregate amount of	1644
the guaranteed portion of the unpaid principal of loans guaranteed	1645
under sections 166.06 and 166.15 of the Revised Code shall not at	1646
any time exceed two hundred million dollars. However, the	1647
limitations established under this division do not apply to loans	1648
made with proceeds from the issuance and sale of project financing	1649
obligations.	1650

Sec. 166.13. (A) Prior to entering into each agreement to	1651
provide innovation financial assistance under sections 166.12,	1652
166.15, and 166.16 of the Revised Code, the director of	1653
development shall determine whether the assistance will conform to	1654
the requirements of sections 166.12 to 166.16 of the Revised Code.	1655
Such determination, and the facts upon which it is based, shall be	1656
set forth by the director in submissions made to the controlling	1657
board for purposes of section 166.16 of the Revised Code and to	1658
the development financefinancing advisory council under section	1659
166.14 of the Revised Code. An agreement to provide assistance	1660
under sections 166.12, 166.15, and 166.16 of the Revised Code	1661
shall set forth the determination, which shall be conclusive for	1662
purposes of the validity and enforceability of the agreement and	1663
any innovation loan guarantees, innovation loans, or other	1664
agreements entered into pursuant to the agreement to provide	1665
innovation financial assistance.	1666

(B) Whenever a person applies for innovation financial	1667
assistance under sections 166.12, 166.15, and 166.16 of the	1668
Revised Code and the eligible innovation project for which	1669
innovation financial assistance is requested is to relocate an	1670
eligible innovation project that is currently being operated by	1671
the person and that is located in another county, municipal	1672
corporation, or township, the director shall provide written	1673
notification to the appropriate local governmental bodies and	1674
state officials. The notification shall contain the following	1675
information:	1676

(1) The name of the person applying for innovation financial	1677
assistance;	1678

(2) The county, and the municipal corporation or township, in	1679
which the eligible innovation project for which innovation	1680
financial assistance is requested is located; and	1681

(3) The county, and the municipal corporation or township, in	1682
which the eligible innovation project to be replaced is located.	1683

The director shall provide the written notification to the	1684
appropriate local governmental bodies and state officials so that	1685
they receive the notification at least five days before the	1686
development financefinancing advisory council meeting at which	1687
the council considers the request for innovation financial	1688
assistance pursuant to sections 166.12, 166.15, and 166.16 of the	1689
Revised Code.	1690

(C) As used in division (B) of this section:

1691

(1) "Appropriate local governmental bodies" means:

1692

(a) The boards of county commissioners or legislative	1693
authorities of the county in which the project for which	1694
innovation financial assistance is requested is located and of the	1695
county in which the eligible innovation project to be replaced is	1696
located;	1697

(b) The legislative authority of the municipal corporation or	1698
the board of township trustees of the township in which the	1699
eligible innovation project for which innovation financial	1700
assistance is requested is located; and	1701

(c) The legislative authority of the municipal corporation or	1702
the board of township trustees of the township in which the	1703
eligible innovation project to be replaced is located.	1704

(2) "State officials" means:

1705

(a) The state representative and state senator in whose	1706
districts the project for which innovation financial assistance is	1707
requested is located;	1708

(b) The state representative and state senator in whose	1709
districts the innovation project to be replaced is located.	1710

Sec. 166.14. (A) In determining the eligible innovation	1711
projects to be assisted and the nature, amount, and terms of	1712
innovation financial assistance to be provided for an eligible	1713
innovation project under sections 166.12 to 166.16 of the Revised	1714
Code:	1715

(1) The director of development shall take into consideration	1716
all of the following:	1717

(a) The number of jobs to be created or preserved by the	1718
eligible innovation project, directly or indirectly;	1719

(b) Payrolls, and the taxes generated, at both state and	1720
local levels, by or in connection with the eligible innovation	1721
project and by the employment created or preserved by or in	1722
connection with the eligible innovation project;	1723

(c) The size, nature, and cost of the eligible innovation	1724
project, including the prospect of the eligible innovation project	1725
for providing long-term jobs in enterprises consistent with the	1726
changing economics of the state and the nation;	1727

(d) The needs of any private sector enterprise to be	1728
assisted;	1729

(e) The amount and kind of assistance, if any, to be provided	1730
to the private sector enterprise by other governmental agencies	1731
through tax exemption or abatement, financing assistance with	1732
industrial development bonds, and otherwise, with respect to the	1733
eligible innovation project or with respect to any providers of	1734
innovation property to be included as part of the eligible	1735
innovation project;	1736

(f) The likelihood of the successful implementation of the	1737
proposed eligible innovation project;	1738

(g) Whether the eligible innovation project involves the use	1739
of technology in a targeted innovation industry sector.	1740

(2) The benefits to the local area, including taxes, jobs,	1741
and reduced unemployment and reduced welfare costs, among others,	1742
may be accorded value in the leasing or sales of innovation	1743
project facilities and in loan and guarantee arrangements.	1744

(3) In making determinations under division (A)(1) of this	1745
section, the director may consider the effect of an eligible	1746
innovation project upon any entity engaged to provide innovation	1747
property to be acquired, leased, or licensed in connection with	1748
such assistance.	1749

(B) The director shall submit to the development finance	1750
financing advisory council data pertinent to the considerations	1751
set forth in division (A) of this section, the terms of the	1752
proposed innovation financial assistance, and such other relevant	1753
information as the council may request.	1754

(C) The development financefinancing advisory council, on	1755
the basis of such data, shall make recommendations as to the	1756
appropriateness of the innovation financial assistance to be	1757
provided. The recommendations may be revised to reflect any	1758
changes in the proposed innovation financial assistance as the	1759
director may submit to the council. The recommendations, as	1760
amended, of the council as to the appropriateness of the proposed	1761
innovation financial assistance shall be submitted to the	1762
controlling board.	1763

(D) Financial statements and other data submitted to the	1764
director of development, the development financefinancing	1765
advisory council, or the controlling board by any private sector	1766
person in connection with innovation financial assistance under	1767
sections 166.12, 166.15, and 166.16 of the Revised Code, or any	1768
information taken from such statements or data for any purpose,	1769
shall not be open to public inspection. The development finance	1770
financing advisory council in considering confidential information	1771
in connection with innovation financial assistance under this	1772
chapter may, only for consideration of the confidential	1773
information referred to, and in the manner provided in division	1774
(E) of section 121.22 of the Revised Code, close the meeting	1775
during such consideration.	1776

Sec. 166.16. (A) The director of development, with the	1777
approval of the controlling board and subject to the other	1778
applicable provisions of this chapter, may lend moneys in the	1779
innovation Ohio loan fund to persons for the purpose of paying	1780
allowable innovation costs of an eligible innovation project if	1781
the director determines that:	1782

(1) The project is an eligible innovation project and is	1783
economically sound.	1784

(2) The borrower is unable to finance the necessary allowable	1785
costs through ordinary financial channels upon comparable terms.	1786

(3) The amount to be lent from the innovation Ohio loan fund	1787
will not exceed ninety per cent of the total costs of the eligible	1788
innovation project.	1789

(4) The repayment of the loan from the innovation Ohio loan	1790
fund will be secured by a mortgage, lien, assignment, or pledge,	1791
or other interest in property or innovation property at such level	1792
of priority and value as the director may determine necessary,	1793
provided that, in making such a determination, the director may	1794
take into account the value of any rights granted by the borrower	1795
to the director to control the use of any property or innovation	1796
property of the borrower under the circumstances described in the	1797
loan documents.	1798

(B) The determinations of the director under division (A) of	1799
this section shall be conclusive for purposes of the validity of a	1800
loan commitment evidenced by a loan agreement signed by the	1801
director.	1802

(C) Fees, charges, rates of interest, times of payment of	1803
interest and principal, and other terms, conditions, and	1804
provisions of and security for loans made from the innovation Ohio	1805
loan fund shall be such as the director determines to be	1806
appropriate and in furtherance of the purpose for which the loans	1807
are made. The moneys used in making the loans shall be disbursed	1808
from the innovation Ohio loan fund upon order of the director.	1809
Unless otherwise specified in any indenture or other instrument	1810
securing obligations under division (D) of section 166.08 of the	1811
Revised Code, any payments of principal and interest from loans	1812
made from the innovation Ohio loan fund shall be paid to the	1813
innovation Ohio loan fund and used for the purpose of making	1814
loans.	1815

(D) TheThere is hereby created in the state treasury the	1816
innovation Ohio loan fund is hereby created as a special revenue	1817
fund and a trust fund which shall be in the custody of the	1818
treasurer of state but shall be separate and apart from and not a	1819
part of the state treasury. The fund shall consist of all grants,	1820
gifts, and contributions of moneys or rights to moneys lawfully	1821
designated for or deposited in such fund, all moneys and rights to	1822
moneys lawfully appropriated and transferred to such fund,	1823
including moneys received from the issuance of obligations for	1824
purposes of allowable innovation costs under section 166.08 of the	1825
Revised Code, and moneys deposited to such fund pursuant to	1826
divisions (C) and (G) of this section. All investment earnings on	1827
the cash balance in the fund shall be credited to the fund. The	1828
innovation Ohio loan fund shall not be comprised, in any part, of	1829
moneys raised by taxation.	1830

(E) The director may take actions necessary or appropriate to	1831
collect or otherwise deal with any loan made under this section.	1832

(F) The director may fix service charges for the making of a	1833
loan. The charges shall be payable at such times and place and in	1834
such amounts and manner as may be prescribed by the director.	1835

(G) The treasurer of state shall serve as an agent for the	1836
director in the making of deposits and withdrawals and maintenance	1837
of records pertaining to the innovation Ohio loan fund.	1838

(H)(1) There shall be credited to the innovation Ohio loan	1839
fund the moneys received by this state from the repayment of	1840
innovation Ohio loans and recovery on loan guarantees, including	1841
interest thereon, made from the innovation Ohio loan fund or from	1842
the innovation Ohio loan guarantee fund and from the sale, lease,	1843
or other disposition of property acquired or constructed fromwith	1844
moneys in the innovation Ohio loan fund with moneys derived from	1845
the proceeds of the sale of obligations under section 166.08 of	1846
the Revised Code. Such moneys shall be applied as provided in this	1847
chapter pursuant to appropriations made by the general assembly.	1848

(2) Notwithstanding division (H)(G)(1) of this section, any	1849
amounts recovered on innovation Ohio loan guarantees shall be	1850
deposited to the credit of the innovation Ohio loan guarantee fund	1851
to the extent necessary to restore that fund to the innovation	1852
Ohio loan guarantee reserve requirement or any level in excess	1853
thereof required by any guarantee contract. Money in the	1854
innovation Ohio loan guarantee fund in excess of the innovation	1855
Ohio loan guarantee reserve requirement, but subject to the	1856
provisions and requirements of any guarantee contracts, may be	1857
transferred to the innovation Ohio loan fund by the treasurer of	1858
state upon the order of the director of development.	1859

(3) In addition to the requirements of division (H)(G)(1) of	1860
this section, moneys referred to in that division may be deposited	1861
to the credit of separate accounts within the innovation Ohio loan	1862
fund or in the bond service fund and pledged to the security of	1863
obligations, applied to the payment of bond service charges	1864
without need for appropriation, released from any such pledge and	1865
transferred to the innovation Ohio loan fund, all as and to the	1866
extent provided in the bond proceedings pursuant to written	1867
directions by the director of development. Accounts may be	1868
established by the director in the innovation Ohio loan fund for	1869
particular projects or otherwise. Income from the investment of	1870
moneys in the innovation Ohio loan fund shall be credited to that	1871
fund and, as may be provided in bond proceedings, to particular	1872
accounts in that fund. The treasurer of statedirector may	1873
withdraw from the innovation Ohio loan fund or, subject to	1874
provisions of the applicable bond proceedings, from any special	1875
funds established pursuant to the bond proceedings, or from any	1876
accounts in such funds, any amounts of investment income required	1877
to be rebated and paid to the federal government in order to	1878
maintain the exemption from federal income taxation of interest on	1879
obligations issued under this chapter, which withdrawal and	1880
payment may be made without necessity for appropriation.	1881

Sec. 166.17. (A) The general assembly finds that in order to	1882
enhance the economic opportunities available to and improve the	1883
economic welfare of all the people of the state, and to maintain	1884
and enhance the competitiveness of the Ohio economy, it is	1885
necessary to ensure that the people of the state will continue to	1886
have access to high-value jobs in technology, and that, to	1887
facilitate such continued access, it is necessary to provide	1888
incentives to retain and attract businesses that will develop new	1889
or improved technologies, processes, and products, or apply	1890
existing technologies in new ways. Further, the general assembly	1891
finds that the attraction of such jobs and their presence in this	1892
state will materially contribute to the economic welfare of all	1893
the people of the state. Accordingly, it is declared to be the	1894
public policy of this state, through operations under sections	1895
166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code and	1896
the provisions for financial assistance contained in those	1897
sections, other applicable laws adopted pursuant to Section 13 of	1898
Article VIII, Ohio Constitution, and other authority vested in the	1899
general assembly, to assist in and facilitate the establishment or	1900
development of eligible research and development projects or	1901
assist and cooperate with any governmental agency in achieving	1902
that purpose.	1903

(B) In furtherance of that public policy and to implement	1904
that purpose, the director of development may do any of the	1905
following:	1906

(1) After consultation with appropriate governmental	1907
agencies, enter into agreements with persons engaged in industry,	1908
commerce, distribution, or research and with governmental	1909
agencies, to induce such persons to acquire, construct,	1910
reconstruct, rehabilitate, renovate, enlarge, improve, equip,	1911
furnish, or develop eligible research and development projects, or	1912
to enable governmental agencies to acquire, construct,	1913
reconstruct, rehabilitate, renovate, enlarge, improve, equip,	1914
furnish, or develop eligible research and development projects for	1915
lease to persons engaged in industry, commerce, distribution, or	1916
research;	1917

(2) Provide for loans under section 166.21 of the Revised	1918
Code to finance eligible research and development projects;	1919

(3) Subject to the release of moneys in the research and	1920
development loan fund by the controlling board, contract for labor	1921
and materials needed for, or contract with others, including	1922
governmental agencies, to provide, eligible research and	1923
development projects, the allowable costs of which are to be paid	1924
for or reimbursed from such moneys, and contract for the operation	1925
of those projects;	1926

(4) From moneys in the research and development loan fund,	1927
subject to release thereof by the controlling board, acquire or	1928
contract to acquire property by gift, exchange, or purchase,	1929
including by obtaining and exercising purchase options, and convey	1930
or otherwise dispose of, or provide for the conveyance or	1931
disposition of, that property by sale, exchange, lease, lease	1932
purchase, conditional or installment sale, transfer, or other	1933
disposition, including the grant of an option to purchase, to any	1934
governmental agency or to any other person without necessity for	1935
competitive bidding and upon such terms and conditions and manner	1936
of consideration pursuant to, and as the director determines to be	1937
appropriate to satisfy the objectives of, Chapter 166. of the	1938
Revised Code;	1939

(5) Retain the services of or employ financial consultants,	1940
appraisers, consulting engineers, superintendents, managers,	1941
construction and accounting experts, attorneys, employees, agents,	1942
and independent contractors as are necessary in the director's	1943
judgment, and fix the compensation for their services;	1944

(6) Receive and accept from any person, grants, gifts, and	1945
contributions of money, property, labor, and other things of	1946
value, to be held, used, and applied only for the purpose for	1947
which such grants, gifts, and contributions are made;	1948

(7) Enter into arrangements and agreements with any	1949
governmental agency for the agency to take or provide any	1950
governmental action with respect to eligible research and	1951
development projects;	1952

(8) Do all other acts, enter into contracts, execute all	1953
instruments, and make all certifications necessary or appropriate	1954
to carry out sections 166.01, 166.17 to 166.21, 5733.352, and	1955
5747.331 of the Revised Code;	1956

(9) With respect to property that is the subject of or	1957
related to research and development financial assistance, take	1958
such interests, including, but not limited to, mortgages, security	1959
interests, leasehold interests, assignments, and exclusive or	1960
nonexclusive licenses, as may be necessary or appropriate under	1961
the circumstances, to ensure that the property is used within this	1962
state and that products or services associated with that property	1963
are produced or, in the case of services, delivered, by persons	1964
employed within this state;	1965

(10) Adopt rules necessary to implement any of the provisions	1966
of sections 166.17 to 166.21, 5733.352, and 5747.331 of the	1967
Revised Code that are applicable to the director.	1968

(C) The determination by the director that facilities or	1969
property constitute an eligible research and development project	1970
and that the costs of such facilities or property are allowable	1971
costs related to the project, and all other determinations	1972
relevant thereto, or to an action taken or agreement entered into,	1973
shall be conclusive for purposes of the validity and	1974
enforceability of rights of parties arising from actions taken and	1975
agreements entered into under sections 166.17 to 166.21, 5733.352,	1976
and 5747.331 of the Revised Code.	1977

Sec. 166.18. (A) Prior to entering into each agreement to	1978
provide research and development financial assistance, the	1979
director of development shall determine whether the assistance	1980
will conform to the requirements of sections 166.17 to 166.21,	1981
5733.352, and 5747.331 of the Revised Code. Such determination,	1982
and the facts upon which it is based, shall be set forth by the	1983
director in submissions made to the controlling board for purposes	1984
of section 166.17 of the Revised Code and to the development	1985
financing advisory council under section 166.19 of the Revised	1986
Code. An agreement to provide research and development financial	1987
assistance under section 166.17 or 166.21 of the Revised Code	1988
shall set forth the determination, which shall be conclusive for	1989
purposes of the validity and enforceability of the agreement, and	1990
any loans or other agreements entered into pursuant to the	1991
agreement, to provide research and development financial	1992
assistance.	1993

(B) Whenever a person applies for research and development	1994
financial assistance, and the eligible research and development	1995
project for which that assistance is requested is to relocate an	1996
eligible research and development project that is currently being	1997
operated by the person and that is located in another county,	1998
municipal corporation, or township within the state, the director	1999
shall provide written notification to the appropriate local	2000
governmental bodies and state officials. The notification shall	2001
state all of the following:	2002

(1) The name of the person applying for research and	2003
development financial assistance;	2004

(2) The county, and the municipal corporation or township, in	2005
which the project for which research and development financial	2006
assistance is requested will be located;	2007

(3) The county, and the municipal corporation or township, in	2008
which the eligible research and development project is located at	2009
the time such financial assistance is requested.	2010

The director shall provide the written notification to the	2011
appropriate local governmental bodies and state officials so that	2012
they receive the notification at least five days before the	2013
development financing advisory council meeting at which the	2014
council considers the request for research and development	2015
financial assistance.	2016

(C) As used in division (B) of this section:

2017

(1) "Appropriate local governmental bodies" means all of the	2018
following:	2019

(a) The board of county commissioners of or legislative	2020
authorities of special districts in the county in which the	2021
eligible research and development project for which research and	2022
development financial assistance is requested is located and of	2023
the county in which the project will be located;	2024

(b) The legislative authority of the municipal corporation or	2025
the board of township trustees of the township in which the	2026
eligible research and development project for which research and	2027
development financial assistance is requested is located and of	2028
the municipal corporation or township in which the project will be	2029
located.	2030

(2) "State officials" means both of the following:

2031

(a) The state representative and state senator in whose	2032
district the eligible research and development project for which	2033
research and development financial assistance is requested is	2034
located;	2035

(b) The state representative and state senator in whose	2036
district the eligible research and development project will be	2037
located.	2038

Sec. 166.19. (A)(1) In determining the eligible research and	2039
development projects to be assisted and the nature, amount, and	2040
terms of the research and development financial assistance to be	2041
provided, the director of development shall consider all of the	2042
following:	2043

(a) The number of jobs to be created or preserved, directly	2044
or indirectly, by or in connection with the eligible research and	2045
development project;	2046

(b) Payrolls, and the taxes generated at both state and local	2047
levels, by the eligible research and development project and by	2048
the employment created or preserved by or in connection with the	2049
project;	2050

(c) The size, nature, and cost of the eligible research and	2051
development project;	2052

(d) The likelihood that the eligible research and development	2053
project will create long-term jobs in enterprises consistent with	2054
the changing economy of the state and nation;	2055

(e) The needs of any private sector enterprise to be	2056
assisted, taking into consideration the amount and kind of	2057
assistance, if any, to be provided to the private sector	2058
enterprise by other governmental agencies through tax exemption or	2059
abatement, financing assistance with industrial development bonds,	2060
and otherwise, with respect to the eligible research and	2061
development project or with respect to any providers of research	2062
and development property to be included as part of the project;	2063

(f) The likelihood that the eligible research and development	2064
project will be successfully implemented.	2065

(2) The director may consider the benefits to the local area,	2066
including taxes, jobs, and reduced unemployment and reduced	2067
welfare costs, in the leasing or sale of eligible research and	2068
development project facilities and in loan arrangements.	2069

(3) The director may consider the effect of an eligible	2070
research and development project upon any entity engaged to	2071
provide research and development property to be acquired, leased,	2072
or licensed in connection with research and development financial	2073
assistance.	2074

(B) The director shall submit to the development financing	2075
advisory council data pertinent to the considerations set forth in	2076
division (A) of this section, the terms of the proposed research	2077
and development assistance, and such other relevant information as	2078
the council may request.	2079

(C) The development financing advisory council, on the basis	2080
of the data submitted under division (B) of this section, shall	2081
make recommendations as to the appropriateness of the research and	2082
development financial assistance to be provided. The	2083
recommendations may be revised to reflect any changes in the	2084
proposed research and development financial assistance that the	2085
director may submit to the council. The recommendations of the	2086
council as to the appropriateness of the proposed research and	2087
development financial assistance shall be submitted to the	2088
controlling board.	2089

(D) Financial statements and other data submitted to the	2090
director of development, the development financing advisory	2091
council, or the controlling board by any private sector person in	2092
connection with research and development financial assistance, or	2093
any information taken from such statements or data for any	2094
purpose, shall not be open to public inspection. The development	2095
financing advisory council, in considering confidential	2096
information in connection with research and development financial	2097
assistance may, only for consideration of the confidential	2098
information referred to and in the manner provided in division (E)	2099
of section 121.22 of the Revised Code, close the meeting during	2100
such consideration.	2101

Sec. 166.20. There is hereby created in the state treasury	2102
the research and development loan fund. The fund shall consist of	2103
moneys received from the issuance of obligations for research and	2104
development purposes under section 166.08 of the Revised Code;	2105
moneys deposited to the fund pursuant to divisions (C) and (G) of	2106
section 166.21 of the Revised Code; service charges imposed under	2107
section 166.21 of the Revised Code; and any grants, gifts, or	2108
contributions of money received by the director of development to	2109
be used for making loans under section 166.21 of the Revised Code.	2110
All investment earnings on the cash balance in the fund shall be	2111
credited to the fund. The fund shall not be comprised, in any	2112
part, of moneys raised by taxation.	2113

Sec. 166.21. (A) The director of development, with the	2114
approval of the controlling board and subject to other applicable	2115
provisions of this chapter, may lend moneys in the research and	2116
development loan fund to persons for the purpose of paying	2117
allowable costs of eligible research and development projects, if	2118
the director determines that all of the following conditions are	2119
met:	2120

(1) The project is an eligible research and development	2121
project and is economically sound;	2122

(2) The amount to be lent from the research and development	2123
loan fund will not exceed seventy-five per cent of the total costs	2124
of the eligible research and development project;	2125

(3) The repayment of the loan from the research and	2126
development loan fund will be secured by a mortgage, lien,	2127
assignment, pledge, or other interest in property or other assets	2128
of the borrower at such level of priority and value as the	2129
director considers necessary, provided that, in making such a	2130
determination, the director shall take into account the value of	2131
any rights granted by the borrower to the director to control the	2132
use of any assets of the borrower under the circumstances	2133
described in the loan documents.	2134

(B) The determinations of the director under division (A) of	2135
this section shall be conclusive for purposes of the validity of a	2136
loan commitment evidenced by a loan agreement signed by the	2137
director.	2138

(C) Fees, charges, rates of interest, times of payment of	2139
interest and principal, and other terms and conditions of, and	2140
security for, loans made from the research and development loan	2141
fund shall be such as the director determines to be appropriate	2142
and in furtherance of the purpose for which the loans are made.	2143
The moneys used in making loans shall be disbursed from the fund	2144
upon order of the director. Unless otherwise specified in any	2145
indenture or other instrument securing obligations under division	2146
(D) of section 166.08 of the Revised Code, any payments of	2147
principal and interest from loans made from the fund shall be paid	2148
to the fund and used for the purpose of making loans under this	2149
section.	2150

(D)(1) As used in this division, "qualified research and	2151
development loan payments" means payments of principal and	2152
interest on a loan made from the research and development loan	2153
fund.	2154

(2) Each year, the director may, upon request, issue a	2155
certificate to a borrower of moneys from the research and	2156
development loan fund indicating the amount of the qualified	2157
research and development loan payments made by or on behalf of the	2158
borrower during the calendar year immediately preceding the tax	2159
year, as defined in section 5733.04 of the Revised Code, or	2160
taxable year, as defined in section 5747.01 of the Revised Code,	2161
for which the certificate is issued. In addition to indicating the	2162
amount of qualified research and development loan payments, the	2163
certificate shall include a determination of the director that as	2164
of the thirty-first day of December of the calendar year for which	2165
the certificate is issued, the borrower is not in default under	2166
the loan agreement, lease, or other instrument governing repayment	2167
of the loan, including compliance with the job creation and	2168
retention commitments that are part of the qualified research and	2169
development project. The director shall not issue a certificate in	2170
an amount that exceeds one hundred fifty thousand dollars.	2171

(E) The director may take actions necessary or appropriate to	2172
collect or otherwise deal with any loan made under this section.	2173

(F) The director may fix service charges for the making of a	2174
loan. The charges shall be payable at such times and place and in	2175
such amounts and manner as may be prescribed by the director.	2176

(G)(1) There shall be credited to the research and	2177
development loan fund moneys received by this state from the	2178
repayment of loans, including interest thereon, made from the	2179
fund, and moneys received from the sale, lease, or other	2180
disposition of property acquired or constructed with moneys in the	2181
fund derived from the proceeds of the sale of obligations under	2182
section 166.08 of the Revised Code. Moneys in the fund shall be	2183
applied as provided in this chapter pursuant to appropriations	2184
made by the general assembly.	2185

(2) In addition to the requirements in division (G)(1) of	2186
this section, moneys referred to in that division may be deposited	2187
to the credit of separate accounts established by the director of	2188
development within the research and development loan fund or in	2189
the bond service fund and pledged to the security of obligations,	2190
applied to the payment of bond service charges without need for	2191
appropriation, released from any such pledge and transferred to	2192
the research and development loan fund, all as and to the extent	2193
provided in the bond proceedings pursuant to written directions of	2194
the director of development. Accounts may be established by the	2195
director in the research and development loan fund for particular	2196
projects or otherwise. The director may withdraw from the fund or,	2197
subject to provisions of the applicable bond proceedings, from any	2198
special funds established pursuant to the bond proceedings, or	2199
from any accounts in such funds, any amounts of investment income	2200
required to be rebated and paid to the federal government in order	2201
to maintain the exemption from federal income taxation of interest	2202
on obligations issued under this chapter, which withdrawal and	2203
payment may be made without the necessity for appropriation.	2204

Sec. 184.04. (A) The Ohio research commercialization grant	2205
program is hereby created to improve the commercial viability of	2206
research projects by improving the ability of small technology	2207
companies to assess their commercial potential and the commercial	2208
potential of research projects, and by promoting the	2209
competitiveness of these companies through the augmentation of	2210
federal research and development funding. The third frontier	2211
commission shall award grants to eligible applicants on a	2212
competitive basis for the following purposes:	2213

(1) Commercialization of a core competency technology,	2214
including, but not limited to, advanced materials; instruments,	2215
controls, and electronics; biosciences; power and propulsion; and	2216
information technology;	2217

(2) Other business activities related to the	2218
commercialization of a core competency technology.	2219

(B) In order to be eligible for an Ohio research	2220
commercialization grant, the applicant shall demonstrate both of	2221
the following to the third frontier commission:	2222

(1) It is located in Ohio;

2223

(2) It either:

2224

(a) Has received a phase I award of funds under the small	2225
business innovation research program or the small business	2226
technology transfer program established in 15 U.S.C. 638, or a	2227
similar award of federal funds under a program designated by the	2228
third frontier commission as qualifying an applicant for a grant	2229
under this section; or	2230

(b) Demonstrates eligibility for an award of funds under the	2231
federal advanced technology program established in 15 U.S.C. 278n	2232
or a similar federal program designated by the third frontier	2233
commission as qualifying an applicant for a grant under this	2234
section.	2235

(C) The third frontier commission shall review proposals from	2236
applicants that meet the requirements stated in division (B) of	2237
this section, and may issue commitments to applicants for	2238
conditional grants of funds under this section, conditioned on the	2239
applicant receiving a phase II award of funds under the federal	2240
small business innovation research program or the small business	2241
technology transfer program, an award of funds under the federal	2242
advanced technology program, or an award of federal funds under a	2243
similar federal program designated by the director.	2244

(D) No funds shall be disbursed under the Ohio research	2245
commercialization grant program until the third frontier	2246
commission has received notice from the applicant, in such form as	2247
the commission prescribes, that the applicant has received an	2248
award of federal funds under a program described in division	2249
(B)(2)(b) or (C) of this section.	2250

(E) An eligible applicant that receives a grant under the	2251
Ohio research commercialization grant program is not precluded	2252
from being considered for or participating in other financial	2253
assistance programs offered by the department of development.	2254

(F) The third frontier commission shall adopt rules under	2255
Chapter 119. of the Revised Code establishing all of the	2256
following:	2257

(1) Forms and procedures by which eligible applicants may	2258
apply for grants under this section;	2259

(2) Criteria for reviewing, evaluating, and ranking	2260
applications, and for approving applications from eligible	2261
applicants that best serve the goals of the Ohio research	2262
commercialization grant program;	2263

(3) Reporting requirements and monitoring procedures;

2264

(4) The federal awards and programs that make an applicant	2265
eligible for a grant under divisions (B) and (C) of this section;	2266

(5) Any other rules necessary to implement and administer the	2267
Ohio research commercialization grant program.	2268

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

2269

(1) "Borrower" means any person that receives a loan from the	2270
director of development under section 166.21 of the Revised Code,	2271
regardless of whether the borrower is subject to the taxes imposed	2272
by sections 5733.06, 5733.065, and 5733.066 of the Revised Code.	2273

(2) "Related member" has the same meaning as in section	2274
5733.042 of the Revised Code.	2275

(3) "Qualified research and development loan payments" has	2276
the same meaning as in division (D) of section 166.21 of the	2277
Revised Code.	2278

(B) Beginning in tax year 2004, a nonrefundable credit is	2279
allowed against the taxes imposed by sections 5733.06, 5733.065,	2280
and 5733.066 of the Revised Code equal to a borrower's qualified	2281
research and development loan payments made during the calendar	2282
year immediately preceding the tax year for which the credit is	2283
claimed. The amount of the credit for a tax year shall not exceed	2284
one hundred fifty thousand dollars. No taxpayer is entitled to	2285
claim a credit under this section unless it has obtained a	2286
certificate issued by the director of development under division	2287
(D) of section 166.21 of the Revised Code. The credit shall be	2288
claimed in the order required under section 5733.98 of the Revised	2289
Code. The credit, to the extent it exceeds the taxpayer's tax	2290
liability for the tax year after allowance for any other credits	2291
that precede the credit under this section in that order, shall be	2292
carried forward to the next succeeding tax year or years until	2293
fully used.	2294

(C) A borrower entitled to a credit under this section may	2295
assign the credit, or a portion thereof, to any of the following:	2296

(1) A related member of that borrower;

2297

(2) The owner or lessee of the eligible research and	2298
development project;	2299

(3) A related member of the owner or lessee of the eligible	2300
research and development project.	2301

A borrower making an assignment under this division shall	2302
provide written notice of the assignment to the tax commissioner	2303
and the director of development, in such form as the tax	2304
commissioner prescribes, before the credit that was assigned is	2305
used. The assignor may not claim the credit to the extent it was	2306
assigned to an assignee. The assignee may claim the credit only to	2307
the extent the assignor has not claimed it.	2308

(D) If any taxpayer is a partner in a partnership or a member	2309
in a limited liability company treated as a partnership for	2310
federal income tax purposes, the taxpayer shall be allowed the	2311
taxpayer's distributive or proportionate share of the credit	2312
available through the partnership or limited liability company.	2313

(E) The aggregate credit against the taxes imposed by	2314
sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised	2315
Code that may be claimed under this section and section 5747.331	2316
of the Revised Code by a borrower as a result of qualified	2317
research and development loan payments attributable during a	2318
calendar year to any one loan shall not exceed one hundred fifty	2319
thousand dollars.	2320

Sec. 5733.98.  (A) To provide a uniform procedure for	2321
calculating the amount of tax imposed by section 5733.06 of the	2322
Revised Code that is due under this chapter, a taxpayer shall	2323
claim any credits to which it is entitled in the following order,	2324
except as otherwise provided in section 5733.058 of the Revised	2325
Code:	2326

(1) The credit for taxes paid by a qualifying pass-through	2327
entity allowed under section 5733.0611 of the Revised Code;	2328

(2) The credit allowed for financial institutions under	2329
section 5733.45 of the Revised Code;	2330

(3) The credit for qualifying affiliated groups under section	2331
5733.068 of the Revised Code;	2332

(4) The subsidiary corporation credit under section 5733.067	2333
of the Revised Code;	2334

(5) The savings and loan assessment credit under section	2335
5733.063 of the Revised Code;	2336

(6) The credit for recycling and litter prevention donations	2337
under section 5733.064 of the Revised Code;	2338

(7) The credit for employers that enter into agreements with	2339
child day-care centers under section 5733.36 of the Revised Code;	2340

(8) The credit for employers that reimburse employee child	2341
day-care expenses under section 5733.38 of the Revised Code;	2342

(9) The credit for maintaining railroad active grade crossing	2343
warning devices under section 5733.43 of the Revised Code;	2344

(10) The credit for purchases of lights and reflectors under	2345
section 5733.44 of the Revised Code;	2346

(11) The job retention credit under division (B) of section	2347
5733.0610 of the Revised Code;	2348

(12) The credit for losses on loans made under the Ohio	2349
venture capital program under sections 150.01 to 150.10 of ththe	2350
Revised Code if the taxpayer elected a nonrefundable credit under	2351
section 150.07 of the Revised Code;	2352

(13) The credit for purchases of new manufacturing machinery	2353
and equipment under section 5733.31 or section 5733.311 of the	2354
Revised Code;	2355

(14) The second credit for purchases of new manufacturing	2356
machinery and equipment under section 5733.33 of the Revised Code;	2357

(15) The job training credit under section 5733.42 of the	2358
Revised Code;	2359

(16) The credit for qualified research expenses under section	2360
5733.351 of the Revised Code;	2361

(17) The enterprise zone credit under section 5709.66 of the	2362
Revised Code;	2363

(18) The credit for the eligible costs associated with a	2364
voluntary action under section 5733.34 of the Revised Code;	2365

(19) The credit for employers that establish on-site child	2366
day-care under section 5733.37 of the Revised Code;	2367

(20) The ethanol plant investment credit under section	2368
5733.46 of the Revised Code;	2369

(21) The credit for purchases of qualifying grape production	2370
property under section 5733.32 of the Revised Code;	2371

(22) The export sales credit under section 5733.069 of the	2372
Revised Code;	2373

(23) The credit for research and development and technology	2374
transfer investors under section 5733.35 of the Revised Code;	2375

(24) The enterprise zone credits under section 5709.65 of the	2376
Revised Code;	2377

(25) The credit for using Ohio coal under section 5733.39 of	2378
the Revised Code;	2379

(26) The research and development credit under section	2380
5733.352 of the Revised Code;	2381

(27) The refundable jobs creation credit under division (A)	2382
of section 5733.0610 of the Revised Code;	2383

(27)(28) The refundable credit for tax withheld under	2384
division (B)(2) of section 5747.062 of the Revised Code;	2385

(28)(29) The credit for losses on loans made to the Ohio	2386
venture capital program under sections 150.01 to 150.10 of the	2387
Revised Code if the taxpayer elected a refundable credit under	2388
section 150.07 of the Revised Code.	2389

(B) For any credit except the credits enumerated in divisions	2390
(A)(26), (27), and (28), and (29) of this section, the amount of	2391
the credit for a tax year shall not exceed the tax due after	2392
allowing for any other credit that precedes it in the order	2393
required under this section. Any excess amount of a particular	2394
credit may be carried forward if authorized under the section	2395
creating that credit.	2396

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

2397

(1) "Borrower" means any person that receives a loan from the	2398
director of development under section 166.21 of the Revised Code,	2399
regardless of whether the borrower is subject to the tax imposed	2400
by section 5747.02 of the Revised Code.	2401

(2) "Related member" has the same meaning as in section	2402
5733.042 of the Revised Code.	2403

(3) "Qualified research and development loan payments" has	2404
the same meaning as in division (D) of section 166.21 of the	2405
Revised Code.	2406

(B) Beginning in taxable year 2003, a nonrefundable credit is	2407
allowed against the tax imposed by section 5747.02 of the Revised	2408
Code equal to a borrower's qualified research and development loan	2409
payments made during the calendar year that includes the last day	2410
of the taxable year for which the credit is claimed. The amount of	2411
the credit for a taxable year shall not exceed one hundred fifty	2412
thousand dollars. No taxpayer is entitled to claim a credit under	2413
this section unless it has obtained a certificate issued by the	2414
director of development under division (D) of section 166.21 of	2415
the Revised Code. The credit shall be claimed in the order	2416
required under section 5747.98 of the Revised Code. The credit, to	2417
the extent it exceeds the taxpayer's tax liability for the taxable	2418
year after allowance for any other credits that precede the credit	2419
under this section in that order, shall be carried forward to the	2420
next succeeding taxable year or years until fully used.	2421

(C) A borrower entitled to a credit under this section may	2422
assign the credit, or a portion thereof, to any of the following:	2423

(1) A related member of that borrower;

2424

(2) The owner or lessee of the eligible research and	2425
development project;	2426

(3) A related member of the owner or lessee of the eligible	2427
research and development project.	2428

A borrower making an assignment under this division shall	2429
provide written notice of the assignment to the tax commissioner	2430
and the director of development, in such form as the tax	2431
commissioner prescribes, before the credit that was assigned is	2432
used. The assignor may not claim the credit to the extent it was	2433
assigned to an assignee. The assignee may claim the credit only to	2434
the extent the assignor has not claimed it.	2435

(D) If any taxpayer is a shareholder in an S corporation, a	2436
partner in a partnership, or a member in a limited liability	2437
company treated as a partnership for federal income tax purposes,	2438
the taxpayer shall be allowed the taxpayer's distributive or	2439
proportionate share of the credit available through the S	2440
corporation, partnership, or limited liability company.	2441

(E) The aggregate credit against the taxes imposed by	2442
sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised	2443
Code that may be claimed under this section and section 5733.352	2444
of the Revised Code by a borrower as a result of qualified	2445
research and development loan payments attributable during a	2446
calendar year to any one loan shall not exceed one hundred fifty	2447
thousand dollars.	2448

Sec. 5747.98.  (A) To provide a uniform procedure for	2449
calculating the amount of tax due under section 5747.02 of the	2450
Revised Code, a taxpayer shall claim any credits to which the	2451
taxpayer is entitled in the following order:	2452

(1) The retirement income credit under division (B) of	2453
section 5747.055 of the Revised Code;	2454

(2) The senior citizen credit under division (C) of section	2455
5747.05 of the Revised Code;	2456

(3) The lump sum distribution credit under division (D) of	2457
section 5747.05 of the Revised Code;	2458

(4) The dependent care credit under section 5747.054 of the	2459
Revised Code;	2460

(5) The lump sum retirement income credit under division (C)	2461
of section 5747.055 of the Revised Code;	2462

(6) The lump sum retirement income credit under division (D)	2463
of section 5747.055 of the Revised Code;	2464

(7) The lump sum retirement income credit under division (E)	2465
of section 5747.055 of the Revised Code;	2466

(8) The credit for displaced workers who pay for job training	2467
under section 5747.27 of the Revised Code;	2468

(9) The campaign contribution credit under section 5747.29 of	2469
the Revised Code;	2470

(10) The twenty-dollar personal exemption credit under	2471
section 5747.022 of the Revised Code;	2472

(11) The joint filing credit under division (G) of section	2473
5747.05 of the Revised Code;	2474

(12) The nonresident credit under division (A) of section	2475
5747.05 of the Revised Code;	2476

(13) The credit for a resident's out-of-state income under	2477
division (B) of section 5747.05 of the Revised Code;	2478

(14) The credit for employers that enter into agreements with	2479
child day-care centers under section 5747.34 of the Revised Code;	2480

(15) The credit for employers that reimburse employee child	2481
day-care expenses under section 5747.36 of the Revised Code;	2482

(16) The credit for adoption of a minor child under section	2483
5747.37 of the Revised Code;	2484

(17) The credit for purchases of lights and reflectors under	2485
section 5747.38 of the Revised Code;	2486

(18) The job retention credit under division (B) of section	2487
5747.058 of the Revised Code;	2488

(19) The credit for losses on loans made under the Ohio	2489
venture capital program under sections 150.01 to 150.10 of the	2490
Revised Code if the taxpayer elected a nonrefundable credit under	2491
section 150.07 of the Revised Code;	2492

(20) The credit for purchases of new manufacturing machinery	2493
and equipment under section 5747.26 or section 5747.261 of the	2494
Revised Code;	2495

(21) The second credit for purchases of new manufacturing	2496
machinery and equipment and the credit for using Ohio coal under	2497
section 5747.31 of the Revised Code;	2498

(22) The job training credit under section 5747.39 of the	2499
Revised Code;	2500

(23) The enterprise zone credit under section 5709.66 of the	2501
Revised Code;	2502

(24) The credit for the eligible costs associated with a	2503
voluntary action under section 5747.32 of the Revised Code;	2504

(25) The credit for employers that establish on-site child	2505
day-care centers under section 5747.35 of the Revised Code;	2506

(26) The ethanol plant investment credit under section	2507
5747.75 of the Revised Code;	2508

(27) The credit for purchases of qualifying grape production	2509
property under section 5747.28 of the Revised Code;	2510

(28) The export sales credit under section 5747.057 of the	2511
Revised Code;	2512

(29) The credit for research and development and technology	2513
transfer investors under section 5747.33 of the Revised Code;	2514

(30) The enterprise zone credits under section 5709.65 of the	2515
Revised Code;	2516

(31) The research and development credit under section	2517
5747.331 of the Revised Code;	2518

(32) The refundable jobs creation credit under division (A)	2519
of section 5747.058 of the Revised Code;	2520

(32)(33) The refundable credit for taxes paid by a qualifying	2521
entity granted under section 5747.059 of the Revised Code;	2522

(33)(34) The refundable credits for taxes paid by a	2523
qualifying pass-through entity granted under division (J) of	2524
section 5747.08 of the Revised Code;	2525

(34)(35) The refundable credit for tax withheld under	2526
division (B)(1) of section 5747.062 of the Revised Code;	2527

(35)(36) The credit for losses on loans made to the Ohio	2528
venture capital program under sections 150.01 to 150.10 of the	2529
Revised Code if the taxpayer elected a refundable credit under	2530
section 150.07 of the Revised Code.	2531

(B) For any credit, except the credits enumerated in	2532
divisions (A)(31)(32) to (35)(36) of this section and the credit	2533
granted under division (I) of section 5747.08 of the Revised Code,	2534
the amount of the credit for a taxable year shall not exceed the	2535
tax due after allowing for any other credit that precedes it in	2536
the order required under this section. Any excess amount of a	2537
particular credit may be carried forward if authorized under the	2538
section creating that credit. Nothing in this chapter shall be	2539
construed to allow a taxpayer to claim, directly or indirectly, a	2540
credit more than once for a taxable year.	2541

Section 2. That existing sections 122.15, 122.151, 122.152,	2542
122.154, 122.171, 166.01, 166.02, 166.08, 166.11, 166.13, 166.14,	2543
166.16, 5733.98, and 5747.98 of the Revised Code are hereby	2544
repealed.	2545

Section 3. All items in this section are hereby appropriated	2546
as designated out of any moneys in the state treasury to the	2547
credit of the Research and Development Fund (Fund 010). For all	2548
appropriations made in this act, those in the first column are for	2549
fiscal year 2004 and those in the second column are for fiscal	2550
year 2005. The appropriations made in this act are in addition to	2551
any other appropriations made for the 2003-2005 biennium.	2552

DEV DEPARTMENT OF DEVELOPMENT

2553

Appropriations

Research and Development Loan Fund

2554

REASERCH AND DEVELOPMENT

2558

The foregoing appropriation item 195-665, Research and	2559
Development, shall be used to provide for research and development	2560
purposes including loans pursuant to Chapter 166. and particularly	2561
sections 166.17 to 166.21 of the Revised Code. Of the foregoing	2562
appropriation item 195-665, Research and Development, the	2563
unencumbered balance of the appropriation at the end of fiscal	2564
year 2004 is transferred by the Director of Budget and Management	2565
to fiscal year 2005.	2566

Within the limits set forth in this act, the Director of	2567
Budget and Management shall establish accounts indicating source	2568
and amount of funds for each appropriation made in this act, and	2569
shall determine the form and manner in which appropriation	2570
accounts shall be maintained. Expenditures from appropriations	2571
contained in this act shall be accounted for as though made in Am.	2572
Sub. H.B. 95 of the 125th General Assembly.	2573

The appropriations made in this act are subject to all	2574
provisions of Am. Sub. H.B. 95 of the 125th General Assembly that	2575
are generally applicable to such appropriations.	2576

Section 4. That Section 41 of Am. Sub. H.B. 94 of the 124th	2577
General Assembly, as most recently amended by Am. Sub. H.B. 405 of	2578
the 124th General Assembly, be amended to read as follows:	2579

Sec. 41. DEV DEPARTMENT OF DEVELOPMENT

2580

General Revenue Fund

2581

General Services Fund Group

2612

Federal Special Revenue Fund Group

2618

State Special Revenue Fund Group

2634

Facilities Establishment Fund

2651

Innovation Ohio Loan Fund

2661

Coal Research/Development Fund

2664

Section 5. That existing Section 41 of Am. Sub. H.B. 94 of	2670
the 124th General Assembly, as most recently amended by Am. Sub.	2671
H.B. 405 of the 124th General Assembly, is hereby repealed.	2672

Section 6. That Section 41.15 of Am. Sub. H.B. 94 of the	2673
124th General Assembly, as amended by Am. Sub. H.B. 405 of the	2674
124th General Assembly, be amended to read as follows:	2675

Sec. 41.15.  FACILITIES ESTABLISHMENT FUND

2676

The foregoing appropriation item 195-615, Facilities	2677
Establishment (Fund 037), shall be used for the purposes of the	2678
Facilities Establishment Fund under Chapter 166. of the Revised	2679
Code.	2680

Notwithstanding Chapter 166. of the Revised Code, up to	2681
$1,600,000 may be transferred each fiscal year from the Facilities	2682
Establishment Fund (Fund 037) to the Economic Development	2683
Financing Operating Fund (Fund 451). The transfer is subject to	2684
Controlling Board approval pursuant to division (B) of section	2685
166.03 of the Revised Code.	2686

Notwithstanding Chapter 166. of the Revised Code, up to	2687
$3,800,000 may be transferred in each fiscal year of the biennium	2688
from the Facilities Establishment Fund (Fund 037) to the Minority	2689
Business Enterprise Loan Fund (Fund 4W1). The transfer is subject	2690
to Controlling Board approval pursuant to division (B) of section	2691
166.03 of the Revised Code.	2692

Notwithstanding Chapter 166. of the Revised Code, up to	2693
$5,000,000 cash may be transferred during the biennium from the	2694
Facilities Establishment Fund (Fund 037) to the Port Authority	2695
Bond Reserves Fund (Fund 5D1) for use by any port authority in	2696
establishing or supplementing bond reserve funds for any bond	2697
issuance permitted under Chapter 4582. of the Revised Code. The	2698
Director of Development shall develop program guidelines for the	2699
transfer and release of funds, including, but not limited to, a	2700
provision that a port authority shall receive not more than	2701
$2,000,000 total from the fund. The transfer and release of funds	2702
are subject to Controlling Board approval.	2703

Notwithstanding Chapter 166. of the Revised Code, up to	2704
$20,475,000 cash may be transferred during the biennium from the	2705
Facilities Establishment Fund (Fund 037) to the Urban	2706
Redevelopment Loans Fund (Fund 5D2) for the purpose of removing	2707
barriers to urban core redevelopment. The Director of Development	2708
shall develop program guidelines for the transfer and release of	2709
funds, including, but not limited to, the completion of all	2710
appropriate environmental assessments before state assistance is	2711
committed to a project.	2712

Notwithstanding Chapter 166. of the Revised Code, up to	2713
$5,000,000 per fiscal year in cash may be transferred from the	2714
Facilities Establishment Fund (Fund 037) to the Rural Industrial	2715
Park Loan Fund (Fund 4Z6). The transfer is subject to Controlling	2716
Board approval pursuant to section 166.03 of the Revised Code.	2717

FAMILY FARM LOAN PROGRAM

2718

Notwithstanding Chapter 166. of the Revised Code, up to	2719
$2,246,375 in each fiscal year shall be transferred from moneys in	2720
the Facilities Establishment Fund (Fund 037) to the Family Farm	2721
Loan Fund (Fund 5H1) in the Department of Development. These	2722
moneys shall be used for loan guarantees. The transfer is subject	2723
to Controlling Board approval.	2724

Financial assistance from the Family Farm Loan Fund (Fund	2725
5H1) shall be repaid to Fund 5H1. This fund is established in	2726
accordance with sections 166.031, 901.80, 901.81, 901.82, and	2727
901.83 of the Revised Code.	2728

When the Family Farm Loan Fund (Fund 5H1) ceases to exist,	2729
all outstanding balances, all loan repayments, and any other	2730
outstanding obligations shall revert to the Facilities	2731
Establishment Fund (Fund 037).	2732

RURAL DEVELOPMENT INITIATIVE FUND

2733

(A)(1) There is hereby created in the state treasury the	2734
Rural Development Initiative Fund (Fund 5S8). The fund shall	2735
receive moneys from the Facilities Establishment Fund. The	2736
Director of Development may make grants from the fund as specified	2737
in division (A)(2) of this section to eligible applicants in	2738
Appalachian counties and in rural counties in the state that are	2739
designated as distressed pursuant to section 122.25 of the Revised	2740
Code. Preference shall be given to eligible applicants located in	2741
Appalachian counties designated as distressed by the federal	2742
Appalachian Regional Commission. The fund shall cease to exist	2743
after June 30, 2007. All moneys remaining in the fund after that	2744
date shall revert to the Facilities Establishment Fund.	2745

(2) The Director of Development shall make grants from the	2746
Rural Development Initiative Fund only to eligible applicants who	2747
also qualify for and receive funding under the Rural Industrial	2748
Park Loan Program as specified in sections 122.23 to 122.27 of the	2749
Revised Code. Eligible applicants shall use the grants for the	2750
purposes specified in section 122.24 of the Revised Code. All	2751
projects supported by grants from the fund are subject to Chapter	2752
4115. of the Revised Code as specified in division (E) of section	2753
166.02 of the Revised Code. The Director shall develop program	2754
guidelines for the transfer and release of funds. The release of	2755
grant moneys to an eligible applicant is subject to Controlling	2756
Board approval.	2757

(B) Notwithstanding Chapter 166. of the Revised Code, the	2758
Director of Budget and Management may transfer up to $5,000,000	2759
per fiscal year in cash on an as needed basis at the request of	2760
the Director of Development from the Facilities Establishment Fund	2761
(Fund 037) to the Rural Development Initiative Fund (Fund 5S8).	2762
The transfer is subject to Controlling Board approval pursuant to	2763
section 166.03 of the Revised Code.	2764

CAPITAL ACCESS LOAN PROGRAM

2765

The foregoing appropriation item 195-628, Capital Access Loan	2766
Program, shall be used for operating, program, and administrative	2767
expenses of the program. Funds for the Capital Access Loan Program	2768
shall be used to assist participating financial institutions in	2769
making program loans to eligible businesses that face barriers in	2770
accessing working capital and obtaining fixed asset financing.	2771

Notwithstanding Chapter 166. of the Revised Code, the	2772
Director of Budget and Management may transfer up to $3,000,000	2773
per fiscal year in cash on an as needed basis at the request of	2774
the Director of Development from the Facilities Establishment Fund	2775
(Fund 037) to the Capital Access Loan Program Fund (Fund 5S9). The	2776
transfer is subject to Controlling Board approval pursuant to	2777
section 166.03 of the Revised Code.	2778

INNOVATION OHIO LOAN PROGRAM

2779

The foregoing appropriation item 195-664, Innovation Ohio,	2780
shall be used to provide for Innovation Ohio loans and loan	2781
guarantees pursuant the Chapter 166. and particularly sections	2782
166.12 to 166.16 of the Revised Code.	2783

Section 7. That existing Section 41.15 of Am. Sub. H.B. 94 of	2784
the 124th General Assembly, as amended by Am. Sub. H.B. 405 of the	2785
124th General Assembly, is hereby repealed.	2786

Section 8. The codified and uncodified sections of law	2787
contained in this act are not subject to the referendum.	2788
Therefore, under Section 1d of Article II, Ohio Constitution and	2789
section 1.471 of the Revised Code, the codified and uncodified	2790
sections of law contained in this act go into immediate effect	2791
when this act becomes law.	2792

Section 9.  Section 122.171 of the Revised Code is presented	2793
in this act as a composite of the section as amended by both H.B.	2794
675 and Am. Sub. S.B. 180 of the 124th General Assembly. The	2795
General Assembly, applying the principle stated in division (B) of	2796
section 1.52 of the Revised Code that amendments are to be	2797
harmonized if reasonably capable of simultaneous operation, finds	2798
that the composite is the resulting version of the section in	2799
effect prior to the effective date of the section as presented in	2800
this act.	2801