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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 |
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 | 167 |
hundred thousand dollars of gross revenue during its most recently | 168 |
completed fiscal year or had a net book value
of less than | 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 | 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 | 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 | 267 |
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 | 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 | 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 | 322 |
equal to | 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 | 369 |
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
| 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 | 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. | 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
| 816 |
research and development projects, including costs of acquiring, | 817 |
constructing, reconstructing, rehabilitating, renovating, | 818 |
enlarging, improving, equipping, or furnishing project facilities | 819 |
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
| 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
| 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 |
| 912 |
governmental agency relating to the establishment, development, or | 913 |
operation of an eligible 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 958 |
association, corporation, or governmental agency, and any | 959 |
combination thereof. | 960 |
| 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
| 965 |
innovation project, or an eligible research and development | 966 |
project, including, but not limited to, public capital | 967 |
improvements. | 968 |
| 969 |
interests therein. | 970 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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, | 1174 |
research and development loan fund for the purpose of paying, or | 1175 |
making loans for, allowable costs from the facilities | 1176 |
establishment fund
| 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, | 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 | 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 | 1614 |
1615 | |
1616 | |
1617 | |
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
| 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
| 1642 |
may not at any time exceed
| 1643 |
that
| 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 | 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 | 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 | 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 | 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 | 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 | 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) | 1816 |
innovation Ohio loan fund | 1817 |
1818 | |
1819 | |
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 |
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) | 1836 |
1837 | |
1838 |
| 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 | 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 | 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 | 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. | 1870 |
1871 | |
1872 | |
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 | 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 |
| 2384 |
division (B)(2) of section 5747.062 of the Revised Code; | 2385 |
| 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) | 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 |
| 2521 |
entity granted under section 5747.059 of the Revised Code; | 2522 |
| 2523 |
qualifying pass-through entity granted under division (J) of | 2524 |
section 5747.08 of the Revised Code; | 2525 |
| 2526 |
division (B)(1) of section 5747.062 of the Revised Code; | 2527 |
| 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) | 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 |
2553 |
Appropriations |
Research and Development Loan Fund | 2554 |
010 | 195-665 | Research and Development | $ | 50,000,000 | $ | 55,000,000 | 2555 | ||||
TOTAL 010 Research and Development Loan Fund | $ | 50,000,000 | $ | 55,000,000 | 2556 | ||||||
TOTAL ALL BUDGET FUND GROUPS | $ | 50,000,000 | $ | 55,000,000 | 2557 |
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 |
GRF | 195-100 | Personal Services | $ | 2,651,334 | $ | 2,920,941 | 2582 | ||||
GRF | 195-200 | Maintenance | $ | 589,524 | $ | 601,314 | 2583 | ||||
GRF | 195-300 | Equipment | $ | 108,161 | $ | 110,324 | 2584 | ||||
GRF | 195-401 | Thomas Edison Program | $ | 20,000,000 | $ | 20,000,000 | 2585 | ||||
GRF | 195-404 | Small Business Development | $ | 2,452,342 | $ | 2,529,843 | 2586 | ||||
GRF | 195-405 | Minority Business Development Division | $ | 2,278,888 | $ | 2,297,314 | 2587 | ||||
GRF | 195-406 | Transitional and Permanent Housing | $ | 2,770,145 | $ | 2,770,155 | 2588 | ||||
GRF | 195-407 | Travel and Tourism | $ | 6,345,500 | $ | 6,448,399 | 2589 | ||||
GRF | 195-408 | Coal Research Development | $ | 562,551 | $ | 585,290 | 2590 | ||||
GRF | 195-412 | Business Development Grants | $ | 8,033,935 | $ | 9,092,851 | 2591 | ||||
GRF | 195-414 | First Frontier Match | $ | 490,000 | $ | 490,000 | 2592 | ||||
GRF | 195-415 | Regional Offices and Economic Development | $ | 6,420,675 | $ | 6,735,253 | 2593 | ||||
GRF | 195-416 | Governor's Office of Appalachia | $ | 5,466,954 | $ | 5,475,126 | 2594 | ||||
GRF | 195-417 | Urban/Rural Initiative | $ | 980,000 | $ | 980,000 | 2595 | ||||
GRF | 195-422 | Technology Action | $ | 14,000,000 | $ | 14,000,000 | 2596 | ||||
GRF | 195-426 | Clean Ohio Implementation | $ | 448,000 | $ | 641,000 | 2597 | ||||
GRF | 195-431 | Community Development Corporation Grants | $ | 2,530,860 | $ | 2,530,860 | 2598 | ||||
GRF | 195-432 | International Trade | $ | 5,390,000 | $ | 5,551,700 | 2599 | ||||
GRF | 195-434 | Investment in Training Grants | $ | 12,500,000 | $ | 12,500,000 | 2600 | ||||
GRF | 195-436 | Labor/Management Cooperation | $ | 1,146,805 | $ | 1,152,752 | 2601 | ||||
GRF | 195-440 | Emergency Shelter Housing Grants | $ | 2,768,313 | $ | 2,841,441 | 2602 | ||||
GRF | 195-441 | Low and Moderate Income Housing | $ | 19,000,000 | $ | 19,000,000 | 2603 | ||||
GRF | 195-497 | CDBG Operating Match | $ | 1,208,576 | $ | 1,215,295 | 2604 | ||||
GRF | 195-498 | State Energy Match | $ | 153,558 | $ | 158,548 | 2605 | ||||
GRF | 195-501 | Appalachian Local Development Districts | $ | 453,962 | $ | 453,962 | 2606 | ||||
GRF | 195-502 | Appalachian Regional Commission Dues | $ | 219,912 | $ | 219,912 | 2607 | ||||
GRF | 195-505 | Utility Bill Credits | $ | 7,350,000 | $ | 7,350,000 | 2608 | ||||
GRF | 195-507 | Travel and Tourism Grants | $ | 1,250,000 | $ | 1,250,000 | 2609 | ||||
GRF | 195-906 | Coal Research and Development General Obligation Debt Service | $ | 8,971,700 | $ | 9,420,300 | 2610 | ||||
TOTAL GRF General Revenue Fund | $ | 136,541,695 | $ | 139,322,580 | 2611 |
General Services Fund Group | 2612 |
135 | 195-605 | Supportive Services | $ | 9,038,988 | $ | 9,531,707 | 2613 | ||||
136 | 195-621 | International Trade | $ | 100,000 | $ | 24,915 | 2614 | ||||
685 | 195-636 | General Reimbursements | $ | 1,275,234 | $ | 1,323,021 | 2615 | ||||
TOTAL GSF General Services Fund | 2616 | ||||||||||
Group | $ | 10,414,222 | $ | 10,879,643 | 2617 |
Federal Special Revenue Fund Group | 2618 |
3K8 | 195-613 | Community Development Block Grant | $ | 65,149,441 | $ | 65,088,961 | 2619 | ||||
3K9 | 195-611 | Home Energy Assistance Block Grant | $ | 62,000,000 | $ | 62,000,000 | 2620 | ||||
3K9 | 195-614 | HEAP Weatherization | $ | 10,412,041 | $ | 10,412,041 | 2621 | ||||
3L0 | 195-612 | Community Services Block Grant | $ | 22,135,000 | $ | 22,135,000 | 2622 | ||||
3V1 | 195-601 | HOME Program | $ | 40,000,000 | $ | 40,000,000 | 2623 | ||||
3X3 | 195-619 | TANF Housing Program | $ | 5,200,000 | $ | 0 | 2624 | ||||
308 | 195-602 | Appalachian Regional Commission | $ | 350,000 | $ | 350,200 | 2625 | ||||
308 | 195-603 | Housing and Urban Development | $ | 5,000,000 | $ | 5,000,000 | 2626 | ||||
308 | 195-605 | Federal Projects | $ | 7,855,501 | $ | 7,855,501 | 2627 | ||||
308 | 195-609 | Small Business Administration | $ | 3,799,626 | $ | 3,799,626 | 2628 | ||||
308 | 195-618 | Energy Federal Grants | $ | 2,803,560 | $ | 2,803,560 | 2629 | ||||
335 | 195-610 | Oil Overcharge | $ | 8,500,000 | $ | 8,500,000 | 2630 | ||||
380 | 195-622 | Housing Development Operating | $ | 4,507,212 | $ | 4,696,198 | 2631 | ||||
TOTAL FED Federal Special Revenue | 2632 | ||||||||||
Fund Group | $ | 237,712,381 | $ | 232,641,087 | 2633 |
State Special Revenue Fund Group | 2634 |
4F2 | 195-639 | State Special Projects | $ | 1,052,762 | $ | 1,079,082 | 2635 | ||||
4H4 | 195-641 | First Frontier | $ | 600,000 | $ | 650,000 | 2636 | ||||
4S0 | 195-630 | Enterprise Zone Operating | $ | 211,900 | $ | 211,900 | 2637 | ||||
4S1 | 195-634 | Job Creation Tax Credit Operating | $ | 372,700 | $ | 375,800 | 2638 | ||||
4W1 | 195-646 | Minority Business Enterprise Loan | $ | 2,572,960 | $ | 2,580,597 | 2639 | ||||
444 | 195-607 | Water and Sewer Commission Loans | $ | 511,000 | $ | 523,775 | 2640 | ||||
445 | 195-617 | Housing Finance Operating | $ | 3,782,808 | $ | 3,968,184 | 2641 | ||||
450 | 195-624 | Minority Business Bonding Program Administration | $ | 13,232 | $ | 13,563 | 2642 | ||||
451 | 195-625 | Economic Development Financing Operating | $ | 2,062,451 | $ | 2,143,918 | 2643 | ||||
5M4 | 195-659 | Universal Service | $ | 160,000,000 | $ | 160,000,000 | 2644 | ||||
5M5 | 195-660 | Energy Efficiency Revolving Loan | $ | 12,000,000 | $ | 12,000,000 | 2645 | ||||
611 | 195-631 | Water and Sewer Administration | $ | 15,330 | $ | 15,713 | 2646 | ||||
617 | 195-654 | Volume Cap Administration | $ | 200,000 | $ | 200,000 | 2647 | ||||
646 | 195-638 | Low and Moderate Income Housing Trust Fund | $ | 21,539,552 | $ | 22,103,807 | 2648 | ||||
TOTAL SSR State Special Revenue | 2649 | ||||||||||
Fund Group | $ | 204,934,695 | $ | 205,866,339 | 2650 |
Facilities Establishment Fund | 2651 |
037 | 195-615 | Facilities Establishment | $ | 56,701,684 | $ | 58,119,226 | 2652 | ||||
4Z6 | 195-647 | Rural Industrial Park Loan | $ | 5,000,000 | $ | 5,000,000 | 2653 | ||||
5D1 | 195-649 | Port Authority Bond Reserves | $ | 2,500,000 | $ | 2,500,000 | 2654 | ||||
5D2 | 195-650 | Urban Redevelopment Loans | $ | 10,000,000 | $ | 10,475,000 | 2655 | ||||
5H1 | 195-652 | Family Farm Loan Guarantee | $ | 2,246,375 | $ | 2,246,375 | 2656 | ||||
5S8 | 195-627 | Rural Development Initiative | $ | 5,000,000 | $ | 5,000,000 | 2657 | ||||
5S9 | 195-628 | Capital Access Loan Program | $ | 3,000,000 | $ | 3,000,000 | 2658 | ||||
TOTAL 037 Facilities | 2659 | ||||||||||
Establishment Fund | $ | 84,448,059 | $ | 86,340,601 | 2660 |
Innovation Ohio Loan Fund | 2661 |
009 | 195-664 | Innovation Ohio | $ | 0 | $ | 50,000,000 | 2662 | ||||
TOTAL 009 Innovation Ohio Loan Fund | $ | 0 | $ | 50,000,000 | 2663 |
Coal Research/Development Fund | 2664 |
046 | 195-632 | Coal Research and Development Fund | $ | 12,847,178 | $ | 13,168,357 | 2665 | ||||
TOTAL 046 Coal Research/ | 2666 | ||||||||||
Development Fund | $ | 12,847,178 | $ | 13,168,357 | 2667 | ||||||
TOTAL ALL BUDGET FUND GROUPS | $ | 686,898,230 | $ | 2668 |
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 |