REPRESENTATIVES T. Patton, Collier, C. Evans, Aslanides, Brown, Chandler, Distel, Gibbs, Gilb, Hagan, Harwood, Price, Schaffer, Schlichter, Skindell, J. Stewart, Strahorn, Sykes, Taylor, Walcher, Wolpert

To amend sections 122.15, 122.151, 122.152, 122.154,

1

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

2

166.14, 166.16, 5733.98, and 5747.98 and to enact

3

sections 166.17 to 166.21, 184.04, 5733.352, and

4

5747.331 of the Revised Code and to amend Sections

5

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

6

General Assembly, as subsequently amended, to

7

increase the dollar amount that may be invested in

8

technology and revise the eligibility requirements

9

for, and increase the maximum amount of,

10

technology investment tax credits that may be

11

issued; to create the Ohio Research

12

Commercialization Grant Program; to increase the

13

maximum amount of obligations that may be issued

14

to fund economic development programs; to move the

15

Innovation Ohio Loan Fund into the State Treasury;

16

to create the Research and Development Loan Fund,

17

and authorize the Director to make loans from that

18

Fund and issue obligations for research and

19

development projects; to grant tax credits for

20

qualified research and development loan payments;

21

to extend the maximum term of, and to change the

22

job retention requirements for, the job retention

23

tax credit; to grant a tax credit to corporations

24

operating call centers to offset future changes in

25

the corporation franchise tax law; and to make an

26

appropriation.

27

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 122.151.  (A) An investor who proposes to make an	147
investment of money in an Ohio entity may apply to an Edison	148
center for a tax credit under this section. The Edison center	149
shall prescribe the form of the application and any information	150
that the investor must submit with the application. The investor	151
shall include with the application a fee of two hundred dollars.	152
The center, within three weeks after receiving the application,	153
shall review it, determine whether the investor should be	154
recommended for the tax credit, and send written notice of its	155
initial determination to the industrial technology and enterprise	156
advisory council and to the investor. If the center determines the	157
investor should not be recommended for the tax credit, it shall	158
include in the notice the reasons for the determination. Subject	159
to divisions (C) and (D) of this section, an investor is eligible	160
for a tax credit if all of the following requirements are met:	161

(1) The investor's investment of money is in an Ohio entity	162
engaged in a qualified trade or business.	163

(2) The Ohio entity had less than onetwo million five	164
hundred thousand dollars of gross revenue during its most recently	165
completed fiscal year or had a net book value of less than onetwo	166
million five hundred thousand dollars at the end of that fiscal	167
year.	168

(3) The investment takes the form of the purchase of common	169
or preferred stock, a membership interest, a partnership interest,	170
or any other ownership interest.	171

(4) The amount of the investment for which the credit is	172
being claimed does not exceed onethree hundred fifty thousand	173
dollars in the case of an investment in an EDGE business	174
enterprise or two hundred fifty thousand dollars in the case of an	175
investment in any Ohio entity other than an EDGE business	176
enterprise.	177

(5) The money invested is entirely at risk of loss, where	178
repayment depends upon the success of the business operations of	179
the Ohio entity.	180

(6) No repayment of principal invested will be made for at	181
least three years from the date the investment is made.	182

(7) The annual combined amount of any dividend and interest	183
payments to be made to the investor will not exceed ten per cent	184
of the amount of the investment for at least three years from the	185
date the investment is made.	186

(8) The investor is not an employee with proprietary	187
decision-making authority of the Ohio entity in which the	188
investment of money is proposed, or related to such an individual.	189
The Ohio entity is not an individual related to the investor. For	190
purposes of this division, the industrial technology and	191
enterprise advisory council shall define "an employee with	192
proprietary decision-making authority."	193

(9) The investor is not an insider.

194

For the purposes of determining the net book value of an Ohio	195
entity under division (A)(1) or (2) of this section, if the entity	196
is a member of an affiliated group, the combined net book values	197
of all of the members of that affiliated group shall be used.	198

Nothing in division (A)(6) or (7) of this section limits or	199
disallows the distribution to an investor in a pass-through entity	200
of a portion of the entity's profits equal to the investor's	201
federal, state, and local income tax obligations attributable to	202
the investor's allocable share of the entity's profits. Nothing in	203
division (A)(6) or (7) of this section limits or disallows the	204
sale by an investor of part or all of the investor's interests in	205
an Ohio entity by way of a public offering of shares in the Ohio	206
entity.	207

(B) A group of two but not more than twenty investors, each	208
of whom proposes to make an investment of money in the same Ohio	209
entity, may submit an application for tax credits under division	210
(A) of this section. The group shall include with the application	211
a fee of eight hundred dollars. The application shall identify	212
each investor in the group and the amount of money each investor	213
proposes to invest in the Ohio entity, and shall name a contact	214
person for the group. The Edison center, within three weeks after	215
receiving the application, shall review it, determine whether each	216
investor of the group should be recommended for a tax credit under	217
the conditions set forth in division (A) of this section, and send	218
written notice of its determination to the industrial technology	219
and enterprise advisory council and to the contact person. The	220
center shall not recommend that a group of investors receive a tax	221
credit unless each investor is eligible under those conditions.	222
The center may disqualify from a group any investor who is not	223
eligible under the conditions and recommend that the remaining	224
group of investors receive the tax credit. If the center	225
determines the group should not be recommended for the tax credit,	226
it shall include in the notice the reasons for the determination.	227

(C) The industrial technology and enterprise advisory council	228
shall establish from among its members a three-person committee.	229
Within four weeks after the council receives a notice of	230
recommendation from an Edison center, the committee shall review	231
the recommendation and issue a final determination of whether the	232
investor or group is eligible for a tax credit under the	233
conditions set forth in division (A) of this section. The	234
committee may require the investor or group to submit additional	235
information to support the application. The vote of at least two	236
members of the committee is necessary for the issuance of a final	237
determination or any other action of the committee. Upon making	238
the final determination, the committee shall send written notice	239
of approval or disapproval of the tax credit to the investor or	240
group contact person, the director of development, and the Edison	241
center. If the committee disapproves the tax credit, it shall	242
include in the notice the reasons for the disapproval.	243

(D)(1) The industrial technology and enterprise advisory	244
council committee shall not approve more than one million five	245
hundred thousand dollars of investments in any one Ohio entity.	246
However, if a proposed investment of money in an Ohio entity has	247
been approved but the investor does not actually make the	248
investment, the committee may reassign the amount of that	249
investment to another investor, as long as the total amount	250
invested in the entity under this section does not exceed one	251
million five hundred thousand dollars.	252

If the one-million-five-hundred-thousand-dollar limit for an	253
Ohio entity has not yet been reached and an application proposes	254
an investment of money that would exceed the limit for that	255
entity, the committee shall send written notice to the investor,	256
or for a group, the contact person, that the investment cannot be	257
approved as requested. Upon receipt of the notice, the investor or	258
group may amend the application to propose an investment of money	259
that does not exceed the limit.	260

(2) Not more than tentwenty million dollars of tax credits	261
shall be issued under sections 122.15 to 122.154 of the Revised	262
Code.	263

(E) If an investor makes an approved investment of money in	264
an Ohio entity of less than onetwo hundred fifty thousand dollars	265
in any Ohio entity other than an EDGE business enterprise, the	266
investor may apply for approval of another investment of money in	267
that entity, as long as the total amount invested in that entity	268
by the investor under this section does not exceed onetwo hundred	269
fifty thousand dollars. If an investor makes an approved	270
investment of less than three hundred thousand dollars in an EDGE	271
business enterprise, the investor may apply for approval of	272
another investment of money in that entity, as long as the total	273
amount invested in that entity by the investor under this section	274
does not exceed three hundred thousand dollars. An investor who	275
receives approval of an investment of money as part of a group may	276
subsequently apply on an individual basis for approval of an	277
additional investment of money in the Ohio entity.	278

(F) The industrial technology and enterprise advisory council	279
committee shall approve or disapprove tax credit applications	280
under this section in the order in which they are received by the	281
council.	282

(G) The director of development may disapprove any	283
application recommended by an Edison center and approved by the	284
industrial technology and enterprise advisory council committee,	285
or may disapprove a credit for which a tax credit certificate has	286
been issued under section 122.152 of the Revised Code, if the	287
director determines that the entity in which the applicant	288
proposes to invest or has invested is not an Ohio entity eligible	289
to receive investments that qualify for the credit. If the	290
director disapproves an application, the director shall certify	291
the action to the investor, the Edison center that recommended the	292
application, the industrial technology and enterprise advisory	293
council, and the tax commissioner, together with a written	294
explanation of the reasons for the disapproval. If the director	295
disapproves a tax credit after a tax credit certificate is issued,	296
the investor shall not claim the credit for the taxable year that	297
includes the day the director disapproves the credit, or for any	298
subsequent taxable year.	299

The director of development, in accordance with section	300
111.15 of the Revised Code and with the advice of the industrial	301
technology and enterprise advisory council, may adopt, amend, and	302
rescind rules necessary to implement sections 122.15 to 122.154 of	303
the Revised Code.	304

(H) An Edison center shall use application fees received	305
under this section only for the costs of administering sections	306
122.15 to 122.154 of the Revised Code.	307

Sec. 122.152.  (A) After receiving notice of approval for an	308
investment of money from the industrial technology and enterprise	309
advisory council committee under section 122.151 of the Revised	310
Code, an investor, within a period of time determined by the	311
committee, may make the investment and apply to the council for a	312
tax credit certificate. If the councilcommittee is satisfied the	313
investor has made the investment in the proper form, it shall	314
issue to the investor a tax credit certificate signed by the	315
chairperson of the committee and the director of development	316
indicating that the investor is allowed a tax credit in an amount	317
equal to twenty-five per cent of the investmentone of the	318
following amounts:	319

(1) Thirty per cent of the investment if the investment was	320
made in an EDGE business enterprise;	321

(2) Twenty-five per cent of the investment if the investment	322
was made in an Ohio entity other than an EDGE business enterprise.	323

An investor who receives approval of a proposed investment of	324
money through a group application, after making the investment,	325
shall apply for a tax credit certificate on an individual basis.	326

(B) An investor who is issued a tax credit certificate under	327
this section may claim a nonrefundable credit equal to the amount	328
indicated on the certificate against any state tax liability. The	329
investor shall claim the credit for the taxable year in which the	330
certificate is issued.	331

(1) If the credit to which a taxpayer otherwise would be	332
entitled under this section for any taxable year is greater than	333
the tax otherwise due under division (D) of section 5707.03 or	334
section 5727.24 or 5727.38 of the Revised Code, the excess shall	335
be allowed as a credit in each of the ensuing fifteen taxable	336
years, but the amount of any excess credit allowed in an ensuing	337
taxable year shall be deducted from the balance carried forward to	338
the next taxable year.	339

(2) If the credit to which a taxpayer otherwise would be	340
entitled under this section for any taxable year is greater than	341
the tax otherwise due under section 5747.02 or Chapter 5733. of	342
the Revised Code, after allowing for any other credits that	343
precede the credit allowed under this section in the order	344
required under section 5733.98 or 5747.98 of the Revised Code, the	345
excess shall be allowed as a credit in each of the ensuing fifteen	346
taxable years, but the amount of any excess credit allowed in an	347
ensuing taxable year shall be deducted from the balance carried	348
forward to the next taxable year.	349

(C) Any portion of a credit allowed under this section that	350
is utilized by an investor to reduce the investor's state tax	351
liability shall not be utilized by any other person.	352

(D) To claim a tax credit allowed under this section, an	353
investor shall attach to the appropriate return a copy of the	354
certificate issued to the investor under this section.	355

(E) Nothing in this section shall limit or disallow	356
pass-through treatment of a pass-through entity's income,	357
deductions, or credits, or other amounts necessary to compute a	358
state tax liability.	359

(F) A tax credit certificate issued to an investor under this	360
section may not be transferred by that investor to any other	361
person.	362

(G)(1) The industrial technology and enterprise advisory	363
councildirector of development shall develop the form of the tax	364
credit certificate and the industrial technology and enterprise	365
advisory council committee shall use that form when issuing a tax	366
credit certificate under this section.	367

(2) The industrial technology and enterprise advisory council	368
director of development shall report to the tax commissioner any	369
information requested by the commissioner concerning tax credit	370
certificates issued under this section.	371

(H) An investment made by an investor or group of investors	372
who enter into a contractual agreement with an Ohio entity to	373
invest money in the Ohio entity is an acceptable investment if all	374
of the following conditions are met:	375

(1) The investment is made pursuant to a subscription	376
agreement providing that the investor or group of investors is	377
entitled to receive a refund of funds if the investment is not	378
approved by the industrial technology and enterprise advisory	379
council committee.	380

(2) The investment is placed in escrow until the investment	381
is approved by the industrial technology and enterprise advisory	382
council committee.	383

(3) The investor or group of investors shows proof of the	384
withdrawal of the funds by the Ohio entity after the investment is	385
approved by the industrial technology and enterprise advisory	386
council committee.	387

Sec. 122.154.  (A) A business may apply to an Edison center	388
for a determination as to whether the business is an Ohio entity	389
eligible to receive investments of money under section 122.151 of	390
the Revised Code that qualify the investor for a tax credit under	391
section 122.152 of the Revised Code. The business shall include	392
with the application a fee of one hundred fifty dollars and a	393
business plan. The Edison center shall prescribe any other	394
information the business must submit with the application and the	395
form of the application. The center, within three weeks after	396
receiving the application, shall review it, determine whether the	397
business is an Ohio entity eligible to receive investments of	398
money that qualify for the tax credit, and send written notice to	399
the industrial technology and enterprise advisory council and the	400
business of its initial determination. If the center determines	401
that the business is not an Ohio entity eligible to receive	402
investments of money that qualify for the tax credit, it shall	403
include in the notice the reasons for the determination.	404

Within four weeks after the council receives a notice of	405
recommendation from an Edison center, the industrial technology	406
and enterprise advisory council committee established under	407
section 122.152 of the Revised Code shall review the	408
recommendation and issue a final determination of whether the	409
business is an Ohio entity eligible to receive investments of	410
money under section 122.151 of the Revised Code that qualify an	411
investor for a tax credit under section 122.152 of the Revised	412
Code. The committee may require the business to submit additional	413
information to support the application. The vote of at least two	414
members of the committee is necessary for the issuance of a final	415
determination. On making the final determination, the committee	416
shall send written notice of approval or disapproval to the	417
business, the director of development, and the Edison center. If	418
the committee determines that the business is not an Ohio entity	419
eligible to receive investments of money that qualify for the tax	420
credit, it shall include in the notice the reasons for the	421
determination.	422

(B) The department of development shall maintain a list of	423
the businesses that have been determined to be Ohio entities	424
eligible to receive investments of money that qualify for the tax	425
credit. The department shall furnish copies of the list to the	426
public upon request.	427

(C) The department of development may prescribe a schedule	428
under which businesses periodically must submit information to	429
enable the center to maintain the accuracy of the list. At the	430
times required in the schedule, each business on the list shall	431
submit any information the center requires to determine if the	432
business continues to be an Ohio entity eligible to receive	433
investments of money that qualify for the tax credit.	434

(D) An Edison center shall use fees received under this	435
section only for the costs of administering sections 122.15 to	436
122.154 of the Revised Code.	437

(E) The Edison centers and the industrial technology and	438
enterprise advisory council and its committee do not assume any	439
responsibility for the accuracy or truthfulness of information	440
furnished by an Ohio entity or its agents.	441

An investor in an Ohio entity is solely responsible for due	442
diligence in verifying information submitted by an Ohio entity. An	443
Edison center is not liable for any action resulting from its	444
provision of such information to investors in accordance with	445
sections 122.15 to 122.154 of the Revised Code.	446

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

447

(1) "Capital investment project" means a plan of investment	448
at a project site for the acquisition, construction, renovation,	449
or repair of buildings, machinery, or equipment, or for	450
capitalized costs of basic research and new product development	451
determined in accordance with generally accepted accounting	452
principles, but does not include any of the following:	453

(a) Payments made for the acquisition of personal property	454
through operating leases;	455

(b) Project costs paid before January 1, 2002, or after	456
December 31, 2006;	457

(c) Payments made to a related member as defined in section	458
5733.042 of the Revised Code.	459

(2) "Eligible business" means a business with Ohio operations	460
satisfying all of the following:	461

(a) Employed an average of at least one thousand employees in	462
full-time employment positions at a project site during each of	463
the twelve months preceding the application for a tax credit under	464
this section; and	465

(b) On or after January 1, 2002, has made payments for the	466
capital investment project of either of the following:	467

(i) At least two hundred million dollars in the aggregate at	468
the project site during a period of three consecutive calendar	469
years including the calendar year that includes a day of the	470
taxpayer's taxable year with respect to which the credit is	471
granted;	472

(ii) If the average wage of all full-time employment	473
positions at the project site is greater than four hundred per	474
cent of the federal minimum wage, at least one hundred million	475
dollars in the aggregate at the project site during a period of	476
three consecutive calendar years including the calendar year that	477
includes a day of the taxpayer's taxable year with respect to	478
which the credit is granted.	479

(c) Is engaged at the project site primarily as a	480
manufacturer or is providing significant corporate administrative	481
functions;	482

(d) Has had a capital investment project reviewed and	483
approved by the tax credit authority as provided in divisions (C),	484
(D), and (E) of this section.	485

(3) "Full-time employment position" means a position of	486
employment for consideration for at least thirty-five hours a week	487
that has been filled for at least one hundred eighty days	488
immediately preceding the filing of an application under this	489
section and for at least one hundred eighty days during each	490
taxable year with respect to which the credit is granted.	491

(4) "Manufacturer" has the same meaning as in section	492
5739.011 of the Revised Code.	493

(5) "Project site" means an integrated complex of facilities	494
in this state, as specified by the tax credit authority under this	495
section, within a fifteen-mile radius where a taxpayer is	496
primarily operating as an eligible business.	497

(6) "Applicable corporation" means a corporation satisfying	498
all of the following:	499

(a)(i) For the entire taxable year immediately preceding the	500
tax year, the corporation develops software applications primarily	501
to provide telecommunication billing and information services	502
through outsourcing or licensing to domestic or international	503
customers.	504

(ii) Sales and licensing of software generated at least six	505
hundred million dollars in revenue during the taxable year	506
immediately preceding the tax year the corporation is first	507
entitled to claim the credit provided under division (B) of this	508
section.	509

(b) For the entire taxable year immediately preceding the tax	510
year, the corporation or one or more of its related members	511
provides customer or employee care and technical support for	512
clients through one or more contact centers within this state, and	513
the corporation and its related members together have a daily	514
average, based on a three hundred sixty-five day year, of at least	515
five hundred thousand successful customer contacts through one or	516
more of their contact centers, wherever located.	517

(c) The corporation is eligible for the credit under division	518
(B) of this section for the tax year.	519

(7) "Related member" has the same meaning as in section	520
5733.042 of the Revised Code as that section existed on the	521
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd	522
general assembly.	523

(8) "Successful customer contact" means a contact with an end	524
user via telephone, including interactive voice recognition or	525
similar means, where the contact culminates in a conversation or	526
connection other than a busy signal or equipment busy.	527

(9) "Telecommunications" means all forms of	528
telecommunications service as defined in section 5739.01 of the	529
Revised Code, and includes services in wireless, wireline, cable,	530
broadband, internet protocol, and satellite.	531

(10)(a) "Applicable difference" means the difference between	532
the tax for the tax year under Chapter 5733. of the Revised Code	533
applying the law in effect for that tax year, and the tax for that	534
tax year if section 5733.042 of the Revised Code applied as that	535
section existed on the effective date of its amendment by Am. Sub.	536
H.B. 215 of the 122nd general assembly, subject to division	537
(A)(10)(b) of this section.	538

(b) If the tax rate set forth in division (B) of section	539
5733.06 of the Revised Code for the tax year is less than eight	540
and one-half per cent, the tax calculated under division	541
(A)(10)(a) of this section shall be computed by substituting a tax	542
rate of eight and one-half per cent for the rate set forth in	543
division (B) of section 5733.06 of the Revised Code for the tax	544
year.	545

(c) If the resulting difference is negative, the applicable	546
tax difference for the tax year shall be zero.	547

(B) The tax credit authority created under section 122.17 of	548
the Revised Code may grant tax credits under this section for the	549
purpose of fostering job retention in this state. Upon application	550
by an eligible business and upon consideration of the	551
recommendation of the director of budget and management, tax	552
commissioner, and director of development under division (C) of	553
this section, the tax credit authority may grant to an eligible	554
business a nonrefundable credit against the tax imposed by section	555
5733.06 or 5747.02 of the Revised Code for a period up to ten	556
fifteen taxable years. The credit shall be in an amount not	557
exceeding seventy-five per cent of the Ohio income tax withheld	558
from the employees of the eligible business occupying full-time	559
employment positions at the project site during the calendar year	560
that includes the last day of such business' taxable year with	561
respect to which the credit is granted. The amount of the credit	562
shall not be based on the Ohio income tax withheld from full-time	563
employees for a calendar year prior to the calendar year in which	564
the minimum investment requirement referred to in division	565
(A)(2)(b) of this section is completed. The credit shall be	566
claimed only for the taxable years specified in the eligible	567
business' agreement with the tax credit authority under division	568
(E) of this section, but in no event shall the credit be claimed	569
for a taxable year terminating before the date specified in the	570
agreement.	571

The credit computed under this division is in addition to any	572
credit allowed under division (M) of this section which the tax	573
credit authority may also include in the agreement.	574

Any unused portion of a tax credit may be carried forward for	575
not more than three additional years after the year for which the	576
credit is granted.	577

(C) A taxpayer that proposes a capital investment project to	578
retain jobs in this state may apply to the tax credit authority to	579
enter into an agreement for a tax credit under this section. The	580
director of development shall prescribe the form of the	581
application. After receipt of an application, the authority shall	582
forward copies of the application to the director of budget and	583
management, the tax commissioner, and the director of development,	584
each of whom shall review the application to determine the	585
economic impact the proposed project would have on the state and	586
the affected political subdivisions and shall submit a summary of	587
their determinations and recommendations to the authority. The	588
authority shall make no agreements under this section after June	589
30, 2007.	590

(D) Upon review of the determinations and recommendations	591
described in division (C) of this section, the tax credit	592
authority may enter into an agreement with the taxpayer for a	593
credit under this section if the authority determines all of the	594
following:	595

(1) The taxpayer's capital investment project will result in	596
the retention of full-time employment positions in this state.	597

(2) The taxpayer is economically sound and has the ability to	598
complete the proposed capital investment project.	599

(3) The taxpayer intends to and has the ability to maintain	600
operations at the project site for at least twice the term of the	601
credit.	602

(4) Receiving the credit is a major factor in the taxpayer's	603
decision to begin, continue with, or complete the project.	604

(5) The political subdivisions in which the project is	605
located have agreed to provide substantial financial support to	606
the project.	607

(E) An agreement under this section shall include all of the	608
following:	609

(1) A detailed description of the project that is the subject	610
of the agreement, including the amount of the investment, the	611
period over which the investment has been or is being made, and	612
the number of full-time employment positions at the project site.	613

(2) The method of calculating the number of full-time	614
employment positions as specified in division (A)(3) of this	615
section.	616

(3) The term and percentage of the tax credit, and the first	617
year for which the credit may be claimed.	618

(4) A requirement that the taxpayer maintain operations at	619
the project site for at least twice the number of years as the	620
term of the credit.	621

(5) A requirement that the taxpayer retain a specified number	622
of full-time employment positions at the project site and within	623
this state for the term of the credit, including a requirement	624
that the taxpayer continue to employ at least one thousand	625
employees in full-time employment positions at the project site	626
during the entire term of any agreement, subject to division	627
(E)(7) of this section.	628

(6) A requirement that the taxpayer annually report to the	629
director of development the number of full-time employment	630
positions subject to the credit, the amount of tax withheld from	631
employees in those positions, the amount of the payments made for	632
the capital investment project, and any other information the	633
director needs to perform the director's duties under this	634
section.	635

(7) A requirement that the director of development annually	636
review the annual reports of the taxpayer to verify the	637
information reported under division (E)(6) of this section and	638
compliance with the agreement. Upon verification, the director	639
shall issue a certificate to the taxpayer stating that the	640
information has been verified and identifying the amount of the	641
credit for the taxable year. TheUnless otherwise specified by the	642
tax credit authority in a resolution and included as part of the	643
agreement, the director shall not issue a certificate for any year	644
in which the total number of filled full-time employment positions	645
for each day of the calendar year divided by three hundred	646
sixty-five is less than ninety per cent of the full-time	647
employment positions specified in division (E)(5) of this section.	648
In determining the number of full-time employment positions, no	649
position shall be counted that is filled by an employee who is	650
included in the calculation of a tax credit under section 122.17	651
of the Revised Code.	652

(8)(a) A provision requiring that the taxpayer, except as	653
otherwise provided in division (E)(8)(b) of this section, shall	654
not relocate employment positions from elsewhere in this state to	655
the project site that is the subject of the agreement for the	656
lesser of five years from the date the agreement is entered into	657
or the number of years the taxpayer is entitled to claim the	658
credit.	659

(b) The taxpayer may relocate employment positions from	660
elsewhere in this state to the project site that is the subject of	661
the agreement if the director of development determines both of	662
the following:	663

(i) That the site from which the employment positions would	664
be relocated is inadequate to meet market and industry conditions,	665
expansion plans, consolidation plans, or other business	666
considerations affecting the taxpayer;	667

(ii) That the legislative authority of the county, township,	668
or municipal corporation from which the employment positions would	669
be relocated has been notified of the relocation.	670

For purposes of this section, the movement of an employment	671
position from one political subdivision to another political	672
subdivision shall be considered a relocation of an employment	673
position unless the movement is confined to the project site. The	674
transfer of an individual employee from one political subdivision	675
to another political subdivision shall not be considered a	676
relocation of an employment position as long as the individual's	677
employment position in the first political subdivision is	678
refilled.	679

(9) A waiver by the taxpayer of any limitations periods	680
relating to assessments or adjustments resulting from the	681
taxpayer's failure to comply with the agreement.	682

(F) If a taxpayer fails to meet or comply with any condition	683
or requirement set forth in a tax credit agreement, the tax credit	684
authority may amend the agreement to reduce the percentage or term	685
of the credit. The reduction of the percentage or term shall take	686
effect in the taxable year immediately following the taxable year	687
in which the authority amends the agreement. If the taxpayer	688
relocates employment positions in violation of the provision	689
required under division (D)(8)(a) of this section, the taxpayer	690
shall not claim the tax credit under section 5733.0610 of the	691
Revised Code for any tax years following the calendar year in	692
which the relocation occurs, or shall not claim the tax credit	693
under section 5747.058 of the Revised Code for the taxable year in	694
which the relocation occurs and any subsequent taxable years.	695

(G) Financial statements and other information submitted to	696
the department of development or the tax credit authority by an	697
applicant for or recipient of a tax credit under this section, and	698
any information taken for any purpose from such statements or	699
information, are not public records subject to section 149.43 of	700
the Revised Code. However, the chairperson of the authority may	701
make use of the statements and other information for purposes of	702
issuing public reports or in connection with court proceedings	703
concerning tax credit agreements under this section. Upon the	704
request of the tax commissioner, the chairperson of the authority	705
shall provide to the commissioner any statement or other	706
information submitted by an applicant for or recipient of a tax	707
credit in connection with the credit. The commissioner shall	708
preserve the confidentiality of the statement or other	709
information.	710

(H) A taxpayer claiming a tax credit under this section shall	711
submit to the tax commissioner a copy of the director of	712
development's certificate of verification under division (E)(7) of	713
this section for the taxable year. However, failure to submit a	714
copy of the certificate does not invalidate a claim for a credit.	715

(I) For the purposes of this section, a taxpayer may include	716
a partnership, a corporation that has made an election under	717
subchapter S of chapter one of subtitle A of the Internal Revenue	718
Code, or any other business entity through which income flows as a	719
distributive share to its owners. A tax credit received under this	720
section by a partnership, S-corporation, or other such business	721
entity shall be apportioned among the persons to whom the income	722
or profit of the partnership, S-corporation, or other entity is	723
distributed, in the same proportions as those in which the income	724
or profit is distributed.	725

(J) If the director of development determines that a taxpayer	726
that received a tax credit under this section is not complying	727
with the requirement under division (E)(4) of this section, the	728
director shall notify the tax credit authority of the	729
noncompliance. After receiving such a notice, and after giving the	730
taxpayer an opportunity to explain the noncompliance, the	731
authority may terminate the agreement and require the taxpayer to	732
refund to the state all or a portion of the credit claimed in	733
previous years, as follows:	734

(1) If the taxpayer maintained operations at the project site	735
for less than the term of the credit, the amount required to be	736
refunded shall not exceed the amount of any tax credits previously	737
allowed and received under this section.	738

(2) If the taxpayer maintained operations at the project site	739
longer than the term of the credit but less than one and one-half	740
times the term of the credit, the amount required to be refunded	741
shall not exceed fifty per cent of the sum of any tax credits	742
previously allowed and received under this section.	743

(3) If the taxpayer maintained operations at the project site	744
for at least one and one-half times the term of the credit but	745
less than twice the term of the credit, the amount required to be	746
refunded shall not exceed twenty-five per cent of the sum of any	747
tax credits previously allowed and received under this section.	748

In determining the portion of the credit to be refunded to	749
this state, the authority shall consider the effect of market	750
conditions on the taxpayer's project and whether the taxpayer	751
continues to maintain other operations in this state. After making	752
the determination, the authority shall certify the amount to be	753
refunded to the tax commissioner. The commissioner shall make an	754
assessment for that amount against the taxpayer under Chapter	755
5733. or 5747. of the Revised Code. The time limitations on	756
assessments under Chapter 5733. or 5747. of the Revised Code do	757
not apply to an assessment under this division, but the	758
commissioner shall make the assessment within one year after the	759
date the authority certifies to the commissioner the amount to be	760
refunded.	761

If the director of development determines that a taxpayer	762
that received a tax credit under this section has reduced the	763
number of employees agreed to under division (E)(5) of this	764
section by more than ten per cent, the director shall notify the	765
tax credit authority of the noncompliance. After receiving such	766
notice, and after providing the taxpayer an opportunity to explain	767
the noncompliance, the authority may amend the agreement to reduce	768
the percentage or term of the tax credit. The reduction in the	769
percentage or term shall take effect in the taxable year in which	770
the authority amends the agreement.	771

(K) The director of development, after consultation with the	772
tax commissioner and in accordance with Chapter 119. of the	773
Revised Code, shall adopt rules necessary to implement this	774
section. The rules may provide for recipients of tax credits under	775
this section to be charged fees to cover administrative costs of	776
the tax credit program. At the time the director gives public	777
notice under division (A) of section 119.03 of the Revised Code of	778
the adoption of the rules, the director shall submit copies of the	779
proposed rules to the chairpersons of the standing committees on	780
economic development in the senate and the house of	781
representatives.	782

(L) On or before the thirty-first day of March of each year,	783
the director of development shall submit a report to the governor,	784
the president of the senate, and the speaker of the house of	785
representatives on the tax credit program under this section. The	786
report shall include information on the number of agreements that	787
were entered into under this section during the preceding calendar	788
year, a description of the project that is the subject of each	789
such agreement, and an update on the status of projects under	790
agreements entered into before the preceding calendar year.	791

(M)(1) A nonrefundable credit shall be allowed to an	792
applicable corporation and its related members in an amount equal	793
to the applicable difference. The credit is in addition to the	794
credit granted to the corporation or related members under	795
division (B) of this section. The credit is subject to divisions	796
(B) to (E) and division (J) of this section.	797

(2) A person qualifying as an applicable corporation under	798
this section for a tax year does not necessarily qualify as an	799
applicable corporation for any other tax year. No person is	800
entitled to the credit allowed under division (M) of this section	801
for the tax year immediately following the taxable year during	802
which the person fails to meet the requirements in divisions	803
(A)(6)(a)(i) and (A)(6)(b) of this section. No person is entitled	804
to the credit allowed under division (M) of this section for any	805
tax year for which the person is not eligible for the credit	806
provided under division (B) of this section.	807

Sec. 166.01.  As used in this chapter:

808

(A) "Allowable costs" means all or part of the costs of	809
project facilities or, eligible innovation projects, or eligible	810
research and development projects, including costs of acquiring,	811
constructing, reconstructing, rehabilitating, renovating,	812
enlarging, improving, equipping, or furnishing project facilities	813
or, eligible innovation projects, or eligible research and	814
development projects, site clearance and preparation,	815
supplementing and relocating public capital improvements or	816
utility facilities, designs, plans, specifications, surveys,	817
studies, and estimates of costs, expenses necessary or incident to	818
determining the feasibility or practicability of assisting an	819
eligible project or, an eligible innovation project, or an	820
eligible research and development project, or providing project	821
facilities or facilities related to an eligible innovation project	822
or an eligible research and development project, architectural,	823
engineering, and legal services fees and expenses, the costs of	824
conducting any other activities as part of a voluntary action, and	825
such other expenses as may be necessary or incidental to the	826
establishment or development of an eligible project or, an	827
eligible innovation project, or an eligible research and	828
development project, and reimbursement of moneys advanced or	829
applied by any governmental agency or other person for allowable	830
costs.	831

(B) "Allowable innovation costs" includes allowable costs of	832
eligible innovation projects and, in addition, includes the costs	833
of research and development of eligible innovation projects;	834
obtaining or creating any requisite software or computer hardware	835
related to an eligible innovation project or the products or	836
services associated therewith; testing (including, without	837
limitation, quality control activities necessary for initial	838
production), perfecting, and marketing of such products and	839
services; creating and protecting intellectual property related to	840
an eligible innovation project or any products or services related	841
thereto, including costs of securing appropriate patent,	842
trademark, trade secret, trade dress, copyright, or other form of	843
intellectual property protection for an eligible innovation	844
project or related products and services; all to the extent that	845
such expenditures could be capitalized under then-applicable	846
generally accepted accounting principles; and the reimbursement of	847
moneys advanced or applied by any governmental agency or other	848
person for allowable innovation costs.	849

(C) "Eligible innovation project" includes an eligible	850
project, including any project facilities associated with an	851
eligible innovation project and, in addition, includes all	852
tangible and intangible property related to a new product or	853
process based on new technology or the creative application of	854
existing technology, including research and development, product	855
or process testing, quality control, market research, and related	856
activities, that is to be acquired, established, expanded,	857
remodeled, rehabilitated, or modernized for industry, commerce,	858
distribution, or research, or any combination thereof, the	859
operation of which, alone or in conjunction with other eligible	860
projects, eligible innovation projects, or innovation property,	861
will create new jobs or preserve existing jobs and employment	862
opportunities and improve the economic welfare of the people of	863
the state.	864

(D) "Eligible project" means project facilities to be	865
acquired, established, expanded, remodeled, rehabilitated, or	866
modernized for industry, commerce, distribution, or research, or	867
any combination thereof, the operation of which, alone or in	868
conjunction with other facilities, will create new jobs or	869
preserve existing jobs and employment opportunities and improve	870
the economic welfare of the people of the state. "Eligible	871
project" includes, without limitation, a voluntary action. For	872
purposes of this division, "new jobs" does not include existing	873
jobs transferred from another facility within the state, and	874
"existing jobs" includes only those existing jobs with work places	875
within the municipal corporation or unincorporated area of the	876
county in which the eligible project is located.	877

"Eligible project" does not include project facilities to be	878
acquired, established, expanded, remodeled, rehabilitated, or	879
modernized for industry, commerce, distribution, or research, or	880
any combination of industry, commerce, distribution, or research,	881
if the project facilities consist solely of	882
point-of-final-purchase retail facilities. If the project	883
facilities consist of both point-of-final-purchase retail	884
facilities and nonretail facilities, only the portion of the	885
project facilities consisting of nonretail facilities is an	886
eligible project. If a warehouse facility is part of a	887
point-of-final-purchase retail facility and supplies only that	888
facility, the warehouse facility is not an eligible project.	889
Catalog distribution facilities are not considered	890
point-of-final-purchase retail facilities for purposes of this	891
paragraph, and are eligible projects.	892

(E) "Eligible research and development project" means an	893
eligible project, including project facilities, comprising,	894
within, or related to, a facility or portion of a facility at	895
which research is undertaken for the purpose of discovering	896
information that is technological in nature and the application of	897
which is intended to be useful in the development of a new or	898
improved product, process, technique, formula, or invention, a new	899
product or process based on new technology, or the creative	900
application of existing technology.	901

(F) "Financial assistance" means inducements under division	902
(B) of section 166.02 of the Revised Code, loan guarantees under	903
section 166.06 of the Revised Code, and direct loans under section	904
166.07 of the Revised Code.	905

(F)(G) "Governmental action" means any action by a	906
governmental agency relating to the establishment, development, or	907
operation of an eligible project or, eligible innovation project,	908
or eligible research and development project, and project	909
facilities that the governmental agency acting has authority to	910
take or provide for the purpose under law, including, but not	911
limited to, actions relating to contracts and agreements, zoning,	912
building, permits, acquisition and disposition of property, public	913
capital improvements, utility and transportation service,	914
taxation, employee recruitment and training, and liaison and	915
coordination with and among governmental agencies.	916

(G)(H) "Governmental agency" means the state and any state	917
department, division, commission, institution or authority; a	918
municipal corporation, county, or township, and any agency	919
thereof, and any other political subdivision or public corporation	920
or the United States or any agency thereof; any agency,	921
commission, or authority established pursuant to an interstate	922
compact or agreement; and any combination of the above.	923

(H)(I) "Innovation financial assistance" means inducements	924
under division (B) of section 166.12 of the Revised Code,	925
innovation Ohio loan guarantees under section 166.15 of the	926
Revised Code, and innovation Ohio loans under section 166.16 of	927
the Revised Code.	928

(I)(J) "Innovation Ohio loan guarantee reserve requirement"	929
means, at any time, with respect to innovation loan guarantees	930
made under section 166.15 of the Revised Code, a balance in the	931
innovation Ohio loan guarantee fund equal to the greater of twenty	932
per cent of the then-outstanding principal amount of all	933
outstanding innovation loan guarantees made pursuant to section	934
166.15 of the Revised Code or fifty per cent of the principal	935
amount of the largest outstanding guarantee made pursuant to	936
section 166.15 of the Revised Code.	937

(J)(K) "Innovation property" includes property and also	938
includes software, inventory, licenses, contract rights, goodwill,	939
intellectual property, including without limitation, patents,	940
patent applications, trademarks and service marks, and trade	941
secrets, and other tangible and intangible property, and any	942
rights and interests in or connected to the foregoing.	943

(K)(L) "Loan guarantee reserve requirement" means, at any	944
time, with respect to loan guarantees made under section 166.06 of	945
the Revised Code, a balance in the loan guarantee fund equal to	946
the greater of twenty per cent of the then-outstanding principal	947
amount of all outstanding guarantees made pursuant to section	948
166.06 of the Revised Code or fifty per cent of the principal	949
amount of the largest outstanding guarantee made pursuant to	950
section 166.06 of the Revised Code.	951

(L)(M) "Person" means any individual, firm, partnership,	952
association, corporation, or governmental agency, and any	953
combination thereof.	954

(M)(N) "Project facilities" means buildings, structures, and	955
other improvements, and equipment and other property, excluding	956
small tools, supplies, and inventory, and any one, part of, or	957
combination of the above, comprising all or part of, or serving or	958
being incidental to, an eligible project or, an eligible	959
innovation project, or an eligible research and development	960
project, including, but not limited to, public capital	961
improvements.	962

(N)(O) "Property" means real and personal property and	963
interests therein.	964

(O)(P) "Public capital improvements" means capital	965
improvements or facilities that any governmental agency has	966
authority to acquire, pay the costs of, own, maintain, or operate,	967
or to contract with other persons to have the same done,	968
including, but not limited to, highways, roads, streets, water and	969
sewer facilities, railroad and other transportation facilities,	970
and air and water pollution control and solid waste disposal	971
facilities.	972

(P)(Q) "Research and development financial assistance" means	973
inducements under section 166.17 of the Revised Code, research and	974
development loans under section 166.21 of the Revised Code, and	975
research and development tax credits under sections 5733.352 and	976
5747.331 of the Revised Code.	977

(R) "Targeted innovation industry sectors" means industry	978
sectors involving the production or use of advanced materials,	979
instruments, controls and electronics, power and propulsion,	980
biosciences, and information technology, or such other sectors as	981
may be designated by the director of development.	982

(Q)(S) "Voluntary action" means a voluntary action, as	983
defined in section 3746.01 of the Revised Code, that is conducted	984
under the voluntary action program established in Chapter 3746. of	985
the Revised Code.	986

(R)(T) "Project financing obligations" means obligations	987
issued pursuant to section 166.08 of the Revised Code other than	988
obligations for which the bond proceedings provide that bond	989
service charges shall be paid from receipts of the state	990
representing gross profit on the sale of spirituous liquor as	991
referred to in division (B)(4) of section 4310.10 of the Revised	992
Code.	993

(S)(U) "Regional economic development entity" means an entity	994
that is under contract with the director of development to	995
administer a loan program under this chapter in a particular area	996
of this state.	997

Sec. 166.02.  (A) The general assembly finds that many local	998
areas throughout the state are experiencing economic stagnation or	999
decline, and that the economic development program provided for in	1000
sections 166.01 to 166.11 of the Revised Code will constitute a	1001
deserved, necessary reinvestment by the state in those areas,	1002
materially contribute to their economic revitalization, and result	1003
in improving the economic welfare of all the people of the state.	1004
Accordingly, it is declared to be the public policy of the state,	1005
through the operations under sections 166.01 to 166.11 of the	1006
Revised Code and other applicable laws adopted pursuant to Section	1007
13 of Article VIII, Ohio Constitution, and other authority vested	1008
in the general assembly, to assist in and facilitate the	1009
establishment or development of eligible projects or assist and	1010
cooperate with any governmental agency in achieving such purpose.	1011

(B) In furtherance of such public policy and to implement	1012
such purpose, the director of development may:	1013

(1) After consultation with appropriate governmental	1014
agencies, enter into agreements with persons engaged in industry,	1015
commerce, distribution, or research and with governmental agencies	1016
to induce such persons to acquire, construct, reconstruct,	1017
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	1018
otherwise develop, eligible projects and make provision therein	1019
for project facilities and governmental actions, as authorized by	1020
this chapter and other applicable laws, subject to any required	1021
actions by the general assembly or the controlling board and	1022
subject to applicable local government laws and regulations;	1023

(2) Provide for the guarantees and loans as provided for in	1024
sections 166.06 and 166.07 of the Revised Code;	1025

(3) Subject to release of such moneys by the controlling	1026
board, contract for labor and materials needed for, or contract	1027
with others, including governmental agencies, to provide, project	1028
facilities the allowable costs of which are to be paid for or	1029
reimbursed from moneys in the facilities establishment fund, and	1030
contract for the operation of such project facilities;	1031

(4) Subject to release thereof by the controlling board, from	1032
moneys in the facilities establishment fund acquire or contract to	1033
acquire by gift, exchange, or purchase, including the obtaining	1034
and exercise of purchase options, property, and convey or	1035
otherwise dispose of, or provide for the conveyance or disposition	1036
of, property so acquired or contracted to be acquired by sale,	1037
exchange, lease, lease purchase, conditional or installment sale,	1038
transfer, or other disposition, including the grant of an option	1039
to purchase, to any governmental agency or to any other person	1040
without necessity for competitive bidding and upon such terms and	1041
conditions and manner of consideration pursuant to and as the	1042
director determines to be appropriate to satisfy the objectives of	1043
sections 166.01 to 166.11 of the Revised Code;	1044

(5) Retain the services of or employ financial consultants,	1045
appraisers, consulting engineers, superintendents, managers,	1046
construction and accounting experts, attorneys, and employees,	1047
agents, and independent contractors as are necessary in the	1048
director's judgment and fix the compensation for their services;	1049

(6) Receive and accept from any person grants, gifts, and	1050
contributions of money, property, labor, and other things of	1051
value, to be held, used and applied only for the purpose for which	1052
such grants, gifts, and contributions are made;	1053

(7) Enter into appropriate arrangements and agreements with	1054
any governmental agency for the taking or provision by that	1055
governmental agency of any governmental action;	1056

(8) Do all other acts and enter into contracts and execute	1057
all instruments necessary or appropriate to carry out the	1058
provisions of Chapter 166. of the Revised Code;	1059

(9) Adopt rules to implement any of the provisions of Chapter	1060
166. of the Revised Code applicable to the director.	1061

(C) The determinations by the director that facilities	1062
constitute eligible projects, that facilities are project	1063
facilities, that costs of such facilities are allowable costs, and	1064
all other determinations relevant thereto or to an action taken or	1065
agreement entered into shall be conclusive for purposes of the	1066
validity and enforceability of rights of parties arising from	1067
actions taken and agreements entered into under this chapter.	1068

(D) Except as otherwise prescribed in Chapter 166. of the	1069
Revised Code, all expenses and obligations incurred by the	1070
director in carrying out the director's powers and in exercising	1071
the director's duties under Chapter 166. of the Revised Code,	1072
shall be payable solely from, as appropriate, moneys in the	1073
facilities establishment fund, the loan guarantee fund, the	1074
innovation Ohio loan guarantee fund, the innovation Ohio loan	1075
fund, the research and development loan fund, or moneys	1076
appropriated for such purpose by the general assembly. Chapter	1077
166. of the Revised Code does not authorize the director or the	1078
issuing authority under section 166.08 of the Revised Code to	1079
incur bonded indebtedness of the state or any political	1080
subdivision thereof, or to obligate or pledge moneys raised by	1081
taxation for the payment of any bonds or notes issued or	1082
guarantees made pursuant to Chapter 166. of the Revised Code.	1083

(E) No financial assistance for project facilities shall be	1084
provided under this chapter unless the provisions of the agreement	1085
providing for such assistance specify that all wages paid to	1086
laborers and mechanics employed on such project facilities for	1087
which the assistance is granted shall be paid at the prevailing	1088
rates of wages of laborers and mechanics for the class of work	1089
called for by such project facilities, which wages shall be	1090
determined in accordance with the requirements of Chapter 4115. of	1091
the Revised Code for determination of prevailing wage rates,	1092
provided that the requirements of this division do not apply where	1093
the federal government or any of its agencies provides financing	1094
assistance as to all or any part of the funds used in connection	1095
with such project facilities and prescribes predetermined minimum	1096
wages to be paid to such laborers and mechanics; and provided	1097
further that should a nonpublic user beneficiary of the eligible	1098
project undertake, as part of the eligible project, construction	1099
to be performed by its regular bargaining unit employees who are	1100
covered under a collective bargaining agreement which was in	1101
existence prior to the date of the document authorizing such	1102
assistance then, in that event, the rate of pay provided under the	1103
collective bargaining agreement may be paid to such employees.	1104

(F) Any governmental agency may enter into an agreement with	1105
the director, any other governmental agency, or a person to be	1106
assisted under this chapter, to take or provide for the purposes	1107
of this chapter any governmental action it is authorized to take	1108
or provide, and to undertake on behalf and at the request of the	1109
director any action which the director is authorized to undertake	1110
pursuant to divisions (B)(3), (4), and (5) of this section or	1111
divisions (B)(3), (4), and (5) of section 166.12 of the Revised	1112
Code. Governmental agencies of the state shall cooperate with and	1113
provide assistance to the director of development and the	1114
controlling board in the exercise of their respective functions	1115
under this chapter.	1116

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

1117

(1) "Bond proceedings" means the resolution, order, trust	1118
agreement, indenture, lease, and other agreements, amendments and	1119
supplements to the foregoing, or any one or more or combination	1120
thereof, authorizing or providing for the terms and conditions	1121
applicable to, or providing for the security or liquidity of,	1122
obligations issued pursuant to this section, and the provisions	1123
contained in such obligations.	1124

(2) "Bond service charges" means principal, including	1125
mandatory sinking fund requirements for retirement of obligations,	1126
and interest, and redemption premium, if any, required to be paid	1127
by the state on obligations.	1128

(3) "Bond service fund" means the applicable fund and	1129
accounts therein created for and pledged to the payment of bond	1130
service charges, which may be, or may be part of, the economic	1131
development bond service fund created by division (S) of this	1132
section including all moneys and investments, and earnings from	1133
investments, credited and to be credited thereto.	1134

(4) "Issuing authority" means the treasurer of state, or the	1135
officer who by law performs the functions of such officer.	1136

(5) "Obligations" means bonds, notes, or other evidence of	1137
obligation including interest coupons pertaining thereto, issued	1138
pursuant to this section.	1139

(6) "Pledged receipts" means all receipts of the state	1140
representing the gross profit on the sale of spirituous liquor, as	1141
referred to in division (B)(4) of section 4301.10 of the Revised	1142
Code, after paying all costs and expenses of the division of	1143
liquor control and providing an adequate working capital reserve	1144
for the division of liquor control as provided in that division,	1145
but excluding the sum required by the second paragraph of section	1146
4301.12 of the Revised Code, as in effect on May 2, 1980, to be	1147
paid into the state treasury; moneys accruing to the state from	1148
the lease, sale, or other disposition, or use, of project	1149
facilities, and from the repayment, including interest, of loans	1150
made from proceeds received from the sale of obligations; accrued	1151
interest received from the sale of obligations; income from the	1152
investment of the special funds; and any gifts, grants, donations,	1153
and pledges, and receipts therefrom, available for the payment of	1154
bond service charges.	1155

(7) "Special funds" or "funds" means, except where the	1156
context does not permit, the bond service fund, and any other	1157
funds, including reserve funds, created under the bond	1158
proceedings, and the economic development bond service fund	1159
created by division (S) of this section to the extent provided in	1160
the bond proceedings, including all moneys and investments, and	1161
earnings from investment, credited and to be credited thereto.	1162

(B) Subject to the limitations provided in section 166.11 of	1163
the Revised Code, the issuing authority, upon the certification by	1164
the director of development to the issuing authority of the amount	1165
of moneys or additional moneys needed in the facilities	1166
establishment fund, the loan guarantee fund, the innovation Ohio	1167
loan fund, or the innovation Ohio loan guarantee fund, or the	1168
research and development loan fund for the purpose of paying, or	1169
making loans for, allowable costs from the facilities	1170
establishment fund or, allowable innovation costs from the	1171
innovation Ohio loan fund, or allowable costs from the research	1172
and development loan fund, or needed for capitalized interest, for	1173
funding reserves, and for paying costs and expenses incurred in	1174
connection with the issuance, carrying, securing, paying,	1175
redeeming, or retirement of the obligations or any obligations	1176
refunded thereby, including payment of costs and expenses relating	1177
to letters of credit, lines of credit, insurance, put agreements,	1178
standby purchase agreements, indexing, marketing, remarketing and	1179
administrative arrangements, interest swap or hedging agreements,	1180
and any other credit enhancement, liquidity, remarketing, renewal,	1181
or refunding arrangements, all of which are authorized by this	1182
section, or providing moneys for the loan guarantee fund or the	1183
innovation Ohio loan guarantee fund, as provided in this chapter	1184
or needed for the purposes of funds established in accordance with	1185
or pursuant to sections 122.35, 122.42, 122.54, 122.55, 122.56,	1186
122.561, 122.57, and 122.80 of the Revised Code which are within	1187
the authorization of Section 13 of Article VIII, Ohio	1188
Constitution, shall issue obligations of the state under this	1189
section in the required amount; provided that such obligations may	1190
be issued to satisfy the covenants in contracts of guarantee made	1191
under section 166.06 or 166.15 of the Revised Code,	1192
notwithstanding limitations otherwise applicable to the issuance	1193
of obligations under this section. The proceeds of such	1194
obligations, except for the portion to be deposited in special	1195
funds, including reserve funds, as may be provided in the bond	1196
proceedings, shall as provided in the bond proceedings be	1197
deposited by the director of development to the facilities	1198
establishment fund, the loan guarantee fund, the innovation Ohio	1199
loan guarantee fund, or the innovation Ohio loan fund, or the	1200
research and development loan fund. Bond proceedings for project	1201
financing obligations may provide that the proceeds derived from	1202
the issuance of such obligations shall be deposited into such fund	1203
or funds provided for in the bond proceedings and, to the extent	1204
provided for in the bond proceedings, such proceeds shall be	1205
deemed to have been deposited into the facilities establishment	1206
fund and transferred to such fund or funds. The issuing authority	1207
may appoint trustees, paying agents, and transfer agents and may	1208
retain the services of financial advisors, accounting experts, and	1209
attorneys, and retain or contract for the services of marketing,	1210
remarketing, indexing, and administrative agents, other	1211
consultants, and independent contractors, including printing	1212
services, as are necessary in the issuing authority's judgment to	1213
carry out this section. The costs of such services are allowable	1214
costs payable from the facilities establishment fund or the	1215
research and development loan fund or allowable innovation costs	1216
payable from the innovation Ohio loan fund.	1217

(C) The holders or owners of such obligations shall have no	1218
right to have moneys raised by taxation obligated or pledged, and	1219
moneys raised by taxation shall not be obligated or pledged, for	1220
the payment of bond service charges. Such holders or owners shall	1221
have no rights to payment of bond service charges from any moneys	1222
accruing to the state from the lease, sale, or other disposition,	1223
or use, of project facilities, or from payment of the principal of	1224
or interest on loans made, or fees charged for guarantees made, or	1225
from any money or property received by the director, treasurer of	1226
state, or the state under Chapter 122. of the Revised Code, or	1227
from any other use of the proceeds of the sale of the obligations,	1228
and no such moneys may be used for the payment of bond service	1229
charges, except for accrued interest, capitalized interest, and	1230
reserves funded from proceeds received upon the sale of the	1231
obligations and except as otherwise expressly provided in the	1232
applicable bond proceedings pursuant to written directions by the	1233
director. The right of such holders and owners to payment of bond	1234
service charges is limited to all or that portion of the pledged	1235
receipts and those special funds pledged thereto pursuant to the	1236
bond proceedings in accordance with this section, and each such	1237
obligation shall bear on its face a statement to that effect.	1238

(D) Obligations shall be authorized by resolution or order of	1239
the issuing authority and the bond proceedings shall provide for	1240
the purpose thereof and the principal amount or amounts, and shall	1241
provide for or authorize the manner or agency for determining the	1242
principal maturity or maturities, not exceeding twenty-five years	1243
from the date of issuance, the interest rate or rates or the	1244
maximum interest rate, the date of the obligations and the dates	1245
of payment of interest thereon, their denomination, and the	1246
establishment within or without the state of a place or places of	1247
payment of bond service charges. Sections 9.98 to 9.983 of the	1248
Revised Code are applicable to obligations issued under this	1249
section, subject to any applicable limitation under section 166.11	1250
of the Revised Code. The purpose of such obligations may be stated	1251
in the bond proceedings in terms describing the general purpose or	1252
purposes to be served. The bond proceedings also shall provide,	1253
subject to the provisions of any other applicable bond	1254
proceedings, for the pledge of all, or such part as the issuing	1255
authority may determine, of the pledged receipts and the	1256
applicable special fund or funds to the payment of bond service	1257
charges, which pledges may be made either prior or subordinate to	1258
other expenses, claims, or payments, and may be made to secure the	1259
obligations on a parity with obligations theretofore or thereafter	1260
issued, if and to the extent provided in the bond proceedings. The	1261
pledged receipts and special funds so pledged and thereafter	1262
received by the state are immediately subject to the lien of such	1263
pledge without any physical delivery thereof or further act, and	1264
the lien of any such pledges is valid and binding against all	1265
parties having claims of any kind against the state or any	1266
governmental agency of the state, irrespective of whether such	1267
parties have notice thereof, and shall create a perfected security	1268
interest for all purposes of Chapter 1309. of the Revised Code,	1269
without the necessity for separation or delivery of funds or for	1270
the filing or recording of the bond proceedings by which such	1271
pledge is created or any certificate, statement or other document	1272
with respect thereto; and the pledge of such pledged receipts and	1273
special funds is effective and the money therefrom and thereof may	1274
be applied to the purposes for which pledged without necessity for	1275
any act of appropriation. Every pledge, and every covenant and	1276
agreement made with respect thereto, made in the bond proceedings	1277
may therein be extended to the benefit of the owners and holders	1278
of obligations authorized by this section, and to any trustee	1279
therefor, for the further security of the payment of the bond	1280
service charges.	1281

(E) The bond proceedings may contain additional provisions as	1282
to:	1283

(1) The redemption of obligations prior to maturity at the	1284
option of the issuing authority at such price or prices and under	1285
such terms and conditions as are provided in the bond proceedings;	1286

(2) Other terms of the obligations;

1287

(3) Limitations on the issuance of additional obligations;

1288

(4) The terms of any trust agreement or indenture securing	1289
the obligations or under which the same may be issued;	1290

(5) The deposit, investment and application of special funds,	1291
and the safeguarding of moneys on hand or on deposit, without	1292
regard to Chapter 131. or 135. of the Revised Code, but subject to	1293
any special provisions of this chapter, with respect to particular	1294
funds or moneys, provided that any bank or trust company which	1295
acts as depository of any moneys in the special funds may furnish	1296
such indemnifying bonds or may pledge such securities as required	1297
by the issuing authority;	1298

(6) Any or every provision of the bond proceedings being	1299
binding upon such officer, board, commission, authority, agency,	1300
department, or other person or body as may from time to time have	1301
the authority under law to take such actions as may be necessary	1302
to perform all or any part of the duty required by such provision;	1303

(7) Any provision that may be made in a trust agreement or	1304
indenture;	1305

(8) Any other or additional agreements with the holders of	1306
the obligations, or the trustee therefor, relating to the	1307
obligations or the security therefor, including the assignment of	1308
mortgages or other security obtained or to be obtained for loans	1309
under section 122.43, 166.07, or 166.16 of the Revised Code.	1310

(F) The obligations may have the great seal of the state or a	1311
facsimile thereof affixed thereto or printed thereon. The	1312
obligations and any coupons pertaining to obligations shall be	1313
signed or bear the facsimile signature of the issuing authority.	1314
Any obligations or coupons may be executed by the person who, on	1315
the date of execution, is the proper issuing authority although on	1316
the date of such bonds or coupons such person was not the issuing	1317
authority. If the issuing authority whose signature or a facsimile	1318
of whose signature appears on any such obligation or coupon ceases	1319
to be the issuing authority before delivery thereof, such	1320
signature or facsimile is nevertheless valid and sufficient for	1321
all purposes as if the former issuing authority had remained the	1322
issuing authority until such delivery; and if the seal to be	1323
affixed to obligations has been changed after a facsimile of the	1324
seal has been imprinted on such obligations, such facsimile seal	1325
shall continue to be sufficient as to such obligations and	1326
obligations issued in substitution or exchange therefor.	1327

(G) All obligations are negotiable instruments and securities	1328
under Chapter 1308. of the Revised Code, subject to the provisions	1329
of the bond proceedings as to registration. The obligations may be	1330
issued in coupon or in registered form, or both, as the issuing	1331
authority determines. Provision may be made for the registration	1332
of any obligations with coupons attached thereto as to principal	1333
alone or as to both principal and interest, their exchange for	1334
obligations so registered, and for the conversion or reconversion	1335
into obligations with coupons attached thereto of any obligations	1336
registered as to both principal and interest, and for reasonable	1337
charges for such registration, exchange, conversion, and	1338
reconversion.	1339

(H) Obligations may be sold at public sale or at private	1340
sale, as determined in the bond proceedings.	1341

Obligations issued to provide moneys for the loan guarantee	1342
fund or the innovation Ohio loan guarantee fund may, as determined	1343
by the issuing authority, be sold at private sale, and without	1344
publication of a notice of sale.	1345

(I) Pending preparation of definitive obligations, the	1346
issuing authority may issue interim receipts or certificates which	1347
shall be exchanged for such definitive obligations.	1348

(J) In the discretion of the issuing authority, obligations	1349
may be secured additionally by a trust agreement or indenture	1350
between the issuing authority and a corporate trustee which may be	1351
any trust company or bank having its principal place of business	1352
within the state. Any such agreement or indenture may contain the	1353
resolution or order authorizing the issuance of the obligations,	1354
any provisions that may be contained in any bond proceedings, and	1355
other provisions which are customary or appropriate in an	1356
agreement or indenture of such type, including, but not limited	1357
to:	1358

(1) Maintenance of each pledge, trust agreement, indenture,	1359
or other instrument comprising part of the bond proceedings until	1360
the state has fully paid the bond service charges on the	1361
obligations secured thereby, or provision therefor has been made;	1362

(2) In the event of default in any payments required to be	1363
made by the bond proceedings, or any other agreement of the	1364
issuing authority made as a part of the contract under which the	1365
obligations were issued, enforcement of such payments or agreement	1366
by mandamus, the appointment of a receiver, suit in equity, action	1367
at law, or any combination of the foregoing;	1368

(3) The rights and remedies of the holders of obligations and	1369
of the trustee, and provisions for protecting and enforcing them,	1370
including limitations on rights of individual holders of	1371
obligations;	1372

(4) The replacement of any obligations that become mutilated	1373
or are destroyed, lost, or stolen;	1374

(5) Such other provisions as the trustee and the issuing	1375
authority agree upon, including limitations, conditions, or	1376
qualifications relating to any of the foregoing.	1377

(K) Any holders of obligations or trustees under the bond	1378
proceedings, except to the extent that their rights are restricted	1379
by the bond proceedings, may by any suitable form of legal	1380
proceedings, protect and enforce any rights under the laws of this	1381
state or granted by such bond proceedings. Such rights include the	1382
right to compel the performance of all duties of the issuing	1383
authority, the director of development, or the division of liquor	1384
control required by this chapter or the bond proceedings; to	1385
enjoin unlawful activities; and in the event of default with	1386
respect to the payment of any bond service charges on any	1387
obligations or in the performance of any covenant or agreement on	1388
the part of the issuing authority, the director of development, or	1389
the division of liquor control in the bond proceedings, to apply	1390
to a court having jurisdiction of the cause to appoint a receiver	1391
to receive and administer the pledged receipts and special funds,	1392
other than those in the custody of the treasurer of state, which	1393
are pledged to the payment of the bond service charges on such	1394
obligations or which are the subject of the covenant or agreement,	1395
with full power to pay, and to provide for payment of bond service	1396
charges on, such obligations, and with such powers, subject to the	1397
direction of the court, as are accorded receivers in general	1398
equity cases, excluding any power to pledge additional revenues or	1399
receipts or other income or moneys of the issuing authority or the	1400
state or governmental agencies of the state to the payment of such	1401
principal and interest and excluding the power to take possession	1402
of, mortgage, or cause the sale or otherwise dispose of any	1403
project facilities.	1404

Each duty of the issuing authority and the issuing	1405
authority's officers and employees, and of each governmental	1406
agency and its officers, members, or employees, undertaken	1407
pursuant to the bond proceedings or any agreement or lease,	1408
lease-purchase agreement, or loan made under authority of this	1409
chapter, and in every agreement by or with the issuing authority,	1410
is hereby established as a duty of the issuing authority, and of	1411
each such officer, member, or employee having authority to perform	1412
such duty, specifically enjoined by the law resulting from an	1413
office, trust, or station within the meaning of section 2731.01 of	1414
the Revised Code.	1415

The person who is at the time the issuing authority, or the	1416
issuing authority's officers or employees, are not liable in their	1417
personal capacities on any obligations issued by the issuing	1418
authority or any agreements of or with the issuing authority.	1419

(L) The issuing authority may authorize and issue obligations	1420
for the refunding, including funding and retirement, and advance	1421
refunding with or without payment or redemption prior to maturity,	1422
of any obligations previously issued by the issuing authority.	1423
Such obligations may be issued in amounts sufficient for payment	1424
of the principal amount of the prior obligations, any redemption	1425
premiums thereon, principal maturities of any such obligations	1426
maturing prior to the redemption of the remaining obligations on a	1427
parity therewith, interest accrued or to accrue to the maturity	1428
dates or dates of redemption of such obligations, and any	1429
allowable costs including expenses incurred or to be incurred in	1430
connection with such issuance and such refunding, funding, and	1431
retirement. Subject to the bond proceedings therefor, the portion	1432
of proceeds of the sale of obligations issued under this division	1433
to be applied to bond service charges on the prior obligations	1434
shall be credited to an appropriate account held by the trustee	1435
for such prior or new obligations or to the appropriate account in	1436
the bond service fund for such obligations. Obligations authorized	1437
under this division shall be deemed to be issued for those	1438
purposes for which such prior obligations were issued and are	1439
subject to the provisions of this section pertaining to other	1440
obligations, except as otherwise provided in this section;	1441
provided that, unless otherwise authorized by the general	1442
assembly, any limitations imposed by the general assembly pursuant	1443
to this section with respect to bond service charges applicable to	1444
the prior obligations shall be applicable to the obligations	1445
issued under this division to refund, fund, advance refund or	1446
retire such prior obligations.	1447

(M) The authority to issue obligations under this section	1448
includes authority to issue obligations in the form of bond	1449
anticipation notes and to renew the same from time to time by the	1450
issuance of new notes. The holders of such notes or interest	1451
coupons pertaining thereto shall have a right to be paid solely	1452
from the pledged receipts and special funds that may be pledged to	1453
the payment of the bonds anticipated, or from the proceeds of such	1454
bonds or renewal notes, or both, as the issuing authority provides	1455
in the resolution or order authorizing such notes. Such notes may	1456
be additionally secured by covenants of the issuing authority to	1457
the effect that the issuing authority and the state will do such	1458
or all things necessary for the issuance of such bonds or renewal	1459
notes in appropriate amount, and apply the proceeds thereof to the	1460
extent necessary, to make full payment of the principal of and	1461
interest on such notes at the time or times contemplated, as	1462
provided in such resolution or order. For such purpose, the	1463
issuing authority may issue bonds or renewal notes in such	1464
principal amount and upon such terms as may be necessary to	1465
provide funds to pay when required the principal of and interest	1466
on such notes, notwithstanding any limitations prescribed by or	1467
for purposes of this section. Subject to this division, all	1468
provisions for and references to obligations in this section are	1469
applicable to notes authorized under this division.	1470

The issuing authority in the bond proceedings authorizing the	1471
issuance of bond anticipation notes shall set forth for such bonds	1472
an estimated interest rate and a schedule of principal payments	1473
for such bonds and the annual maturity dates thereof, and for	1474
purposes of any limitation on bond service charges prescribed	1475
under division (A) of section 166.11 of the Revised Code, the	1476
amount of bond service charges on such bond anticipation notes is	1477
deemed to be the bond service charges for the bonds anticipated	1478
thereby as set forth in the bond proceedings applicable to such	1479
notes, but this provision does not modify any authority in this	1480
section to pledge receipts and special funds to, and covenant to	1481
issue bonds to fund, the payment of principal of and interest and	1482
any premium on such notes.	1483

(N) Obligations issued under this section are lawful	1484
investments for banks, societies for savings, savings and loan	1485
associations, deposit guarantee associations, trust companies,	1486
trustees, fiduciaries, insurance companies, including domestic for	1487
life and domestic not for life, trustees or other officers having	1488
charge of sinking and bond retirement or other special funds of	1489
political subdivisions and taxing districts of this state, the	1490
commissioners of the sinking fund of the state, the administrator	1491
of workers' compensation, the state teachers retirement system,	1492
the public employees retirement system, the school employees	1493
retirement system, and the Ohio police and fire pension fund,	1494
notwithstanding any other provisions of the Revised Code or rules	1495
adopted pursuant thereto by any governmental agency of the state	1496
with respect to investments by them, and are also acceptable as	1497
security for the deposit of public moneys.	1498

(O) Unless otherwise provided in any applicable bond	1499
proceedings, moneys to the credit of or in the special funds	1500
established by or pursuant to this section may be invested by or	1501
on behalf of the issuing authority only in notes, bonds, or other	1502
obligations of the United States, or of any agency or	1503
instrumentality of the United States, obligations guaranteed as to	1504
principal and interest by the United States, obligations of this	1505
state or any political subdivision of this state, and certificates	1506
of deposit of any national bank located in this state and any	1507
bank, as defined in section 1101.01 of the Revised Code, subject	1508
to inspection by the superintendent of banks. If the law or the	1509
instrument creating a trust pursuant to division (J) of this	1510
section expressly permits investment in direct obligations of the	1511
United States or an agency of the United States, unless expressly	1512
prohibited by the instrument, such moneys also may be invested in	1513
no-front-end-load money market mutual funds consisting exclusively	1514
of obligations of the United States or an agency of the United	1515
States and in repurchase agreements, including those issued by the	1516
fiduciary itself, secured by obligations of the United States or	1517
an agency of the United States; and in common trust funds	1518
established in accordance with section 1111.20 of the Revised Code	1519
and consisting exclusively of any such securities, notwithstanding	1520
division (A)(4) of that section. The income from such investments	1521
shall be credited to such funds as the issuing authority	1522
determines, and such investments may be sold at such times as the	1523
issuing authority determines or authorizes.	1524

(P) Provision may be made in the applicable bond proceedings	1525
for the establishment of separate accounts in the bond service	1526
fund and for the application of such accounts only to the	1527
specified bond service charges on obligations pertinent to such	1528
accounts and bond service fund and for other accounts therein	1529
within the general purposes of such fund. Unless otherwise	1530
provided in any applicable bond proceedings, moneys to the credit	1531
of or in the several special funds established pursuant to this	1532
section shall be disbursed on the order of the treasurer of state,	1533
provided that no such order is required for the payment from the	1534
bond service fund when due of bond service charges on obligations.	1535

(Q) The issuing authority may pledge all, or such portion as	1536
the issuing authority determines, of the pledged receipts to the	1537
payment of bond service charges on obligations issued under this	1538
section, and for the establishment and maintenance of any	1539
reserves, as provided in the bond proceedings, and make other	1540
provisions therein with respect to pledged receipts as authorized	1541
by this chapter, which provisions are controlling notwithstanding	1542
any other provisions of law pertaining thereto.	1543

(R) The issuing authority may covenant in the bond	1544
proceedings, and any such covenants are controlling	1545
notwithstanding any other provision of law, that the state and	1546
applicable officers and governmental agencies of the state,	1547
including the general assembly, so long as any obligations are	1548
outstanding, shall:	1549

(1) Maintain statutory authority for and cause to be charged	1550
and collected wholesale and retail prices for spirituous liquor	1551
sold by the state or its agents so that the pledged receipts are	1552
sufficient in amount to meet bond service charges, and the	1553
establishment and maintenance of any reserves and other	1554
requirements provided for in the bond proceedings, and, as	1555
necessary, to meet covenants contained in contracts of guarantee	1556
made under section 166.06 of the Revised Code;	1557

(2) Take or permit no action, by statute or otherwise, that	1558
would impair the exemption from federal income taxation of the	1559
interest on the obligations.	1560

(S) There is hereby created the economic development bond	1561
service fund, which shall be in the custody of the treasurer of	1562
state but shall be separate and apart from and not a part of the	1563
state treasury. All moneys received by or on account of the	1564
issuing authority or state agencies and required by the applicable	1565
bond proceedings, consistent with this section, to be deposited,	1566
transferred, or credited to a bond service fund or the economic	1567
development bond service fund, and all other moneys transferred or	1568
allocated to or received for the purposes of the fund, shall be	1569
deposited and credited to such fund and to any separate accounts	1570
therein, subject to applicable provisions of the bond proceedings,	1571
but without necessity for any act of appropriation. During the	1572
period beginning with the date of the first issuance of	1573
obligations and continuing during such time as any such	1574
obligations are outstanding, and so long as moneys in the	1575
pertinent bond service funds are insufficient to pay all bond	1576
services charges on such obligations becoming due in each year, a	1577
sufficient amount of the gross profit on the sale of spirituous	1578
liquor included in pledged receipts are committed and shall be	1579
paid to the bond service fund or economic development bond service	1580
fund in each year for the purpose of paying the bond service	1581
charges becoming due in that year without necessity for further	1582
act of appropriation for such purpose and notwithstanding anything	1583
to the contrary in Chapter 4301. of the Revised Code. The economic	1584
development bond service fund is a trust fund and is hereby	1585
pledged to the payment of bond service charges to the extent	1586
provided in the applicable bond proceedings, and payment thereof	1587
from such fund shall be made or provided for by the treasurer of	1588
state in accordance with such bond proceedings without necessity	1589
for any act of appropriation.	1590

(T) The obligations, the transfer thereof, and the income	1591
therefrom, including any profit made on the sale thereof, shall at	1592
all times be free from taxation within the state.	1593

Sec. 166.11.  (A) The aggregate principal amount of project	1594
financing obligations that may be issued under section 166.08 of	1595
the Revised Code is three hundred million dollars, plus the	1596
principal amount of such project financing obligations retired by	1597
payments. The aggregate principal amount of obligations, exclusive	1598
of project financing obligations, that may be issued under section	1599
166.08 of the Revised Code is threefive hundred million dollars,	1600
plus the principal amount of any such obligations retired by	1601
payment, the amounts held or obligations pledged for the payment	1602
of the principal amount of any such obligations outstanding,	1603
amounts in special funds held as reserves to meet bond service	1604
charges, and amounts of obligations issued to provide moneys	1605
required to meet payments from the loan guarantee fund created in	1606
section 166.06 of the Revised Code and the innovation Ohio loan	1607
guarantee fund created in section 166.15 of the Revised Code, and	1608
minus the amount if any by which four per cent of the unpaid	1609
principal amount of loan repayments guaranteed under section	1610
166.06 of the Revised Code exceeds the amount in the loan	1611
guarantee fund. The terms of the obligations issued under section	1612
166.08 of the Revised Code, other than obligations issued to meet	1613
guarantees that cannot be satisfied from amounts then held in the	1614
loan guarantee fund or the innovation Ohio loan guarantee fund,	1615
shall be such that the aggregate amount of moneys used from profit	1616
from the sale of spirituous liquor, and not from other sources, in	1617
any fiscal year shall not exceed twenty-fiveforty-five million	1618
dollars. For purposes of the preceding sentence, "other sources"	1619
include the annual investment income on special funds to the	1620
extent it will be available for payment of any bond service	1621
charges in lieu of use of profit from the sale of spirituous	1622
liquor, and shall be estimated on the basis of the expected	1623
funding of those special funds and assumed investment earnings	1624
thereon at a rate equal to the weighted average yield on	1625
investments of those special funds determined as of any date	1626
within sixty days immediately preceding the date of issuance of	1627
the bonds in respect of which the determination is being made. The	1628
determinations required by this division shall be made by the	1629
treasurer of state at the time of issuance of an issue of	1630
obligations and shall be conclusive for purposes of such issue of	1631
obligations from and after their issuance and delivery.	1632

(B) The aggregate amount of the guaranteed portion of the	1633
unpaid principal of loans guaranteed under sections 166.06 and	1634
166.15 of the Revised Code and the unpaid principal of loans made	1635
under sections 166.07 and, 166.16, and 166.21 of the Revised Code	1636
may not at any time exceed seveneight hundred million dollars. Of	1637
that seveneight hundred million dollars, the aggregate amount of	1638
the guaranteed portion of the unpaid principal of loans guaranteed	1639
under sections 166.06 and 166.15 of the Revised Code shall not at	1640
any time exceed two hundred million dollars. However, the	1641
limitations established under this division do not apply to loans	1642
made with proceeds from the issuance and sale of project financing	1643
obligations.	1644

Sec. 166.13. (A) Prior to entering into each agreement to	1645
provide innovation financial assistance under sections 166.12,	1646
166.15, and 166.16 of the Revised Code, the director of	1647
development shall determine whether the assistance will conform to	1648
the requirements of sections 166.12 to 166.16 of the Revised Code.	1649
Such determination, and the facts upon which it is based, shall be	1650
set forth by the director in submissions made to the controlling	1651
board for purposes of section 166.16 of the Revised Code and to	1652
the development financefinancing advisory council under section	1653
166.14 of the Revised Code. An agreement to provide assistance	1654
under sections 166.12, 166.15, and 166.16 of the Revised Code	1655
shall set forth the determination, which shall be conclusive for	1656
purposes of the validity and enforceability of the agreement and	1657
any innovation loan guarantees, innovation loans, or other	1658
agreements entered into pursuant to the agreement to provide	1659
innovation financial assistance.	1660

(B) Whenever a person applies for innovation financial	1661
assistance under sections 166.12, 166.15, and 166.16 of the	1662
Revised Code and the eligible innovation project for which	1663
innovation financial assistance is requested is to relocate an	1664
eligible innovation project that is currently being operated by	1665
the person and that is located in another county, municipal	1666
corporation, or township, the director shall provide written	1667
notification to the appropriate local governmental bodies and	1668
state officials. The notification shall contain the following	1669
information:	1670

(1) The name of the person applying for innovation financial	1671
assistance;	1672

(2) The county, and the municipal corporation or township, in	1673
which the eligible innovation project for which innovation	1674
financial assistance is requested is located; and	1675

(3) The county, and the municipal corporation or township, in	1676
which the eligible innovation project to be replaced is located.	1677

The director shall provide the written notification to the	1678
appropriate local governmental bodies and state officials so that	1679
they receive the notification at least five days before the	1680
development financefinancing advisory council meeting at which	1681
the council considers the request for innovation financial	1682
assistance pursuant to sections 166.12, 166.15, and 166.16 of the	1683
Revised Code.	1684

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

1685

(1) "Appropriate local governmental bodies" means:

1686

(a) The boards of county commissioners or legislative	1687
authorities of the county in which the project for which	1688
innovation financial assistance is requested is located and of the	1689
county in which the eligible innovation project to be replaced is	1690
located;	1691

(b) The legislative authority of the municipal corporation or	1692
the board of township trustees of the township in which the	1693
eligible innovation project for which innovation financial	1694
assistance is requested is located; and	1695

(c) The legislative authority of the municipal corporation or	1696
the board of township trustees of the township in which the	1697
eligible innovation project to be replaced is located.	1698

(2) "State officials" means:

1699

(a) The state representative and state senator in whose	1700
districts the project for which innovation financial assistance is	1701
requested is located;	1702

(b) The state representative and state senator in whose	1703
districts the innovation project to be replaced is located.	1704

Sec. 166.14. (A) In determining the eligible innovation	1705
projects to be assisted and the nature, amount, and terms of	1706
innovation financial assistance to be provided for an eligible	1707
innovation project under sections 166.12 to 166.16 of the Revised	1708
Code:	1709

(1) The director of development shall take into consideration	1710
all of the following:	1711

(a) The number of jobs to be created or preserved by the	1712
eligible innovation project, directly or indirectly;	1713

(b) Payrolls, and the taxes generated, at both state and	1714
local levels, by or in connection with the eligible innovation	1715
project and by the employment created or preserved by or in	1716
connection with the eligible innovation project;	1717

(c) The size, nature, and cost of the eligible innovation	1718
project, including the prospect of the eligible innovation project	1719
for providing long-term jobs in enterprises consistent with the	1720
changing economics of the state and the nation;	1721

(d) The needs of any private sector enterprise to be	1722
assisted;	1723

(e) The amount and kind of assistance, if any, to be provided	1724
to the private sector enterprise by other governmental agencies	1725
through tax exemption or abatement, financing assistance with	1726
industrial development bonds, and otherwise, with respect to the	1727
eligible innovation project or with respect to any providers of	1728
innovation property to be included as part of the eligible	1729
innovation project;	1730

(f) The likelihood of the successful implementation of the	1731
proposed eligible innovation project;	1732

(g) Whether the eligible innovation project involves the use	1733
of technology in a targeted innovation industry sector.	1734

(2) The benefits to the local area, including taxes, jobs,	1735
and reduced unemployment and reduced welfare costs, among others,	1736
may be accorded value in the leasing or sales of innovation	1737
project facilities and in loan and guarantee arrangements.	1738

(3) In making determinations under division (A)(1) of this	1739
section, the director may consider the effect of an eligible	1740
innovation project upon any entity engaged to provide innovation	1741
property to be acquired, leased, or licensed in connection with	1742
such assistance.	1743

(B) The director shall submit to the development finance	1744
financing advisory council data pertinent to the considerations	1745
set forth in division (A) of this section, the terms of the	1746
proposed innovation financial assistance, and such other relevant	1747
information as the council may request.	1748

(C) The development financefinancing advisory council, on	1749
the basis of such data, shall make recommendations as to the	1750
appropriateness of the innovation financial assistance to be	1751
provided. The recommendations may be revised to reflect any	1752
changes in the proposed innovation financial assistance as the	1753
director may submit to the council. The recommendations, as	1754
amended, of the council as to the appropriateness of the proposed	1755
innovation financial assistance shall be submitted to the	1756
controlling board.	1757

(D) Financial statements and other data submitted to the	1758
director of development, the development financefinancing	1759
advisory council, or the controlling board by any private sector	1760
person in connection with innovation financial assistance under	1761
sections 166.12, 166.15, and 166.16 of the Revised Code, or any	1762
information taken from such statements or data for any purpose,	1763
shall not be open to public inspection. The development finance	1764
financing advisory council in considering confidential information	1765
in connection with innovation financial assistance under this	1766
chapter may, only for consideration of the confidential	1767
information referred to, and in the manner provided in division	1768
(E) of section 121.22 of the Revised Code, close the meeting	1769
during such consideration.	1770

Sec. 166.16. (A) The director of development, with the	1771
approval of the controlling board and subject to the other	1772
applicable provisions of this chapter, may lend moneys in the	1773
innovation Ohio loan fund to persons for the purpose of paying	1774
allowable innovation costs of an eligible innovation project if	1775
the director determines that:	1776

(1) The project is an eligible innovation project and is	1777
economically sound.	1778

(2) The borrower is unable to finance the necessary allowable	1779
costs through ordinary financial channels upon comparable terms.	1780

(3) The amount to be lent from the innovation Ohio loan fund	1781
will not exceed ninety per cent of the total costs of the eligible	1782
innovation project.	1783

(4) The repayment of the loan from the innovation Ohio loan	1784
fund will be secured by a mortgage, lien, assignment, or pledge,	1785
or other interest in property or innovation property at such level	1786
of priority and value as the director may determine necessary,	1787
provided that, in making such a determination, the director may	1788
take into account the value of any rights granted by the borrower	1789
to the director to control the use of any property or innovation	1790
property of the borrower under the circumstances described in the	1791
loan documents.	1792

(B) The determinations of the director under division (A) of	1793
this section shall be conclusive for purposes of the validity of a	1794
loan commitment evidenced by a loan agreement signed by the	1795
director.	1796

(C) Fees, charges, rates of interest, times of payment of	1797
interest and principal, and other terms, conditions, and	1798
provisions of and security for loans made from the innovation Ohio	1799
loan fund shall be such as the director determines to be	1800
appropriate and in furtherance of the purpose for which the loans	1801
are made. The moneys used in making the loans shall be disbursed	1802
from the innovation Ohio loan fund upon order of the director.	1803
Unless otherwise specified in any indenture or other instrument	1804
securing obligations under division (D) of section 166.08 of the	1805
Revised Code, any payments of principal and interest from loans	1806
made from the innovation Ohio loan fund shall be paid to the	1807
innovation Ohio loan fund and used for the purpose of making	1808
loans.	1809

(D) TheThere is hereby created in the state treasury the	1810
innovation Ohio loan fund is hereby created as a special revenue	1811
fund and a trust fund which shall be in the custody of the	1812
treasurer of state but shall be separate and apart from and not a	1813
part of the state treasury. The fund shall consist of all grants,	1814
gifts, and contributions of moneys or rights to moneys lawfully	1815
designated for or deposited in such fund, all moneys and rights to	1816
moneys lawfully appropriated and transferred to such fund,	1817
including moneys received from the issuance of obligations for	1818
purposes of allowable innovation costs under section 166.08 of the	1819
Revised Code, and moneys deposited to such fund pursuant to	1820
divisions (C) and (G) of this section. All investment earnings on	1821
the cash balance in the fund shall be credited to the fund. The	1822
innovation Ohio loan fund shall not be comprised, in any part, of	1823
moneys raised by taxation.	1824

(E) The director may take actions necessary or appropriate to	1825
collect or otherwise deal with any loan made under this section.	1826

(F) The director may fix service charges for the making of a	1827
loan. The charges shall be payable at such times and place and in	1828
such amounts and manner as may be prescribed by the director.	1829

(G) The treasurer of state shall serve as an agent for the	1830
director in the making of deposits and withdrawals and maintenance	1831
of records pertaining to the innovation Ohio loan fund.	1832

(H)(1) There shall be credited to the innovation Ohio loan	1833
fund the moneys received by this state from the repayment of	1834
innovation Ohio loans and recovery on loan guarantees, including	1835
interest thereon, made from the innovation Ohio loan fund or from	1836
the innovation Ohio loan guarantee fund and from the sale, lease,	1837
or other disposition of property acquired or constructed fromwith	1838
moneys in the innovation Ohio loan fund with moneys derived from	1839
the proceeds of the sale of obligations under section 166.08 of	1840
the Revised Code. Such moneys shall be applied as provided in this	1841
chapter pursuant to appropriations made by the general assembly.	1842

(2) Notwithstanding division (H)(G)(1) of this section, any	1843
amounts recovered on innovation Ohio loan guarantees shall be	1844
deposited to the credit of the innovation Ohio loan guarantee fund	1845
to the extent necessary to restore that fund to the innovation	1846
Ohio loan guarantee reserve requirement or any level in excess	1847
thereof required by any guarantee contract. Money in the	1848
innovation Ohio loan guarantee fund in excess of the innovation	1849
Ohio loan guarantee reserve requirement, but subject to the	1850
provisions and requirements of any guarantee contracts, may be	1851
transferred to the innovation Ohio loan fund by the treasurer of	1852
state upon the order of the director of development.	1853

(3) In addition to the requirements of division (H)(G)(1) of	1854
this section, moneys referred to in that division may be deposited	1855
to the credit of separate accounts within the innovation Ohio loan	1856
fund or in the bond service fund and pledged to the security of	1857
obligations, applied to the payment of bond service charges	1858
without need for appropriation, released from any such pledge and	1859
transferred to the innovation Ohio loan fund, all as and to the	1860
extent provided in the bond proceedings pursuant to written	1861
directions by the director of development. Accounts may be	1862
established by the director in the innovation Ohio loan fund for	1863
particular projects or otherwise. Income from the investment of	1864
moneys in the innovation Ohio loan fund shall be credited to that	1865
fund and, as may be provided in bond proceedings, to particular	1866
accounts in that fund. The treasurer of statedirector may	1867
withdraw from the innovation Ohio loan fund or, subject to	1868
provisions of the applicable bond proceedings, from any special	1869
funds established pursuant to the bond proceedings, or from any	1870
accounts in such funds, any amounts of investment income required	1871
to be rebated and paid to the federal government in order to	1872
maintain the exemption from federal income taxation of interest on	1873
obligations issued under this chapter, which withdrawal and	1874
payment may be made without necessity for appropriation.	1875

Sec. 166.17. (A) The general assembly finds that in order to	1876
enhance the economic opportunities available to and improve the	1877
economic welfare of all the people of the state, and to maintain	1878
and enhance the competitiveness of the Ohio economy, it is	1879
necessary to ensure that the people of the state will continue to	1880
have access to high-value jobs in technology, and that, to	1881
facilitate such continued access, it is necessary to provide	1882
incentives to retain and attract businesses that will develop new	1883
or improved technologies, processes, and products, or apply	1884
existing technologies in new ways. Further, the general assembly	1885
finds that the attraction of such jobs and their presence in this	1886
state will materially contribute to the economic welfare of all	1887
the people of the state. Accordingly, it is declared to be the	1888
public policy of this state, through operations under sections	1889
166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code and	1890
the provisions for financial assistance contained in those	1891
sections, other applicable laws adopted pursuant to Section 13 of	1892
Article VIII, Ohio Constitution, and other authority vested in the	1893
general assembly, to assist in and facilitate the establishment or	1894
development of eligible research and development projects or	1895
assist and cooperate with any governmental agency in achieving	1896
that purpose.	1897

(B) In furtherance of that public policy and to implement	1898
that purpose, the director of development may do any of the	1899
following:	1900

(1) After consultation with appropriate governmental	1901
agencies, enter into agreements with persons engaged in industry,	1902
commerce, distribution, or research and with governmental	1903
agencies, to induce such persons to acquire, construct,	1904
reconstruct, rehabilitate, renovate, enlarge, improve, equip,	1905
furnish, or develop eligible research and development projects, or	1906
to enable governmental agencies to acquire, construct,	1907
reconstruct, rehabilitate, renovate, enlarge, improve, equip,	1908
furnish, or develop eligible research and development projects for	1909
lease to persons engaged in industry, commerce, distribution, or	1910
research;	1911

(2) Provide for loans under section 166.21 of the Revised	1912
Code to finance eligible research and development projects;	1913

(3) Subject to the release of moneys in the research and	1914
development loan fund by the controlling board, contract for labor	1915
and materials needed for, or contract with others, including	1916
governmental agencies, to provide, eligible research and	1917
development projects, the allowable costs of which are to be paid	1918
for or reimbursed from such moneys, and contract for the operation	1919
of those projects;	1920

(4) From moneys in the research and development loan fund,	1921
subject to release thereof by the controlling board, acquire or	1922
contract to acquire property by gift, exchange, or purchase,	1923
including by obtaining and exercising purchase options, and convey	1924
or otherwise dispose of, or provide for the conveyance or	1925
disposition of, that property by sale, exchange, lease, lease	1926
purchase, conditional or installment sale, transfer, or other	1927
disposition, including the grant of an option to purchase, to any	1928
governmental agency or to any other person without necessity for	1929
competitive bidding and upon such terms and conditions and manner	1930
of consideration pursuant to, and as the director determines to be	1931
appropriate to satisfy the objectives of, Chapter 166. of the	1932
Revised Code;	1933

(5) Retain the services of or employ financial consultants,	1934
appraisers, consulting engineers, superintendents, managers,	1935
construction and accounting experts, attorneys, employees, agents,	1936
and independent contractors as are necessary in the director's	1937
judgment, and fix the compensation for their services;	1938

(6) Receive and accept from any person, grants, gifts, and	1939
contributions of money, property, labor, and other things of	1940
value, to be held, used, and applied only for the purpose for	1941
which such grants, gifts, and contributions are made;	1942

(7) Enter into arrangements and agreements with any	1943
governmental agency for the agency to take or provide any	1944
governmental action with respect to eligible research and	1945
development projects;	1946

(8) Do all other acts, enter into contracts, execute all	1947
instruments, and make all certifications necessary or appropriate	1948
to carry out sections 166.01, 166.17 to 166.21, 5733.352, and	1949
5747.331 of the Revised Code;	1950

(9) With respect to property that is the subject of or	1951
related to research and development financial assistance, take	1952
such interests, including, but not limited to, mortgages, security	1953
interests, leasehold interests, assignments, and exclusive or	1954
nonexclusive licenses, as may be necessary or appropriate under	1955
the circumstances, to ensure that the property is used within this	1956
state and that products or services associated with that property	1957
are produced or, in the case of services, delivered, by persons	1958
employed within this state;	1959

(10) Adopt rules necessary to implement any of the provisions	1960
of sections 166.17 to 166.21, 5733.352, and 5747.331 of the	1961
Revised Code that are applicable to the director.	1962

(C) The determination by the director that facilities or	1963
property constitute an eligible research and development project	1964
and that the costs of such facilities or property are allowable	1965
costs related to the project, and all other determinations	1966
relevant thereto, or to an action taken or agreement entered into,	1967
shall be conclusive for purposes of the validity and	1968
enforceability of rights of parties arising from actions taken and	1969
agreements entered into under sections 166.17 to 166.21, 5733.352,	1970
and 5747.331 of the Revised Code.	1971

Sec. 166.18. (A) Prior to entering into each agreement to	1972
provide research and development financial assistance, the	1973
director of development shall determine whether the assistance	1974
will conform to the requirements of sections 166.17 to 166.21,	1975
5733.352, and 5747.331 of the Revised Code. Such determination,	1976
and the facts upon which it is based, shall be set forth by the	1977
director in submissions made to the controlling board for purposes	1978
of section 166.17 of the Revised Code and to the development	1979
financing advisory council under section 166.19 of the Revised	1980
Code. An agreement to provide research and development financial	1981
assistance under section 166.17 or 166.21 of the Revised Code	1982
shall set forth the determination, which shall be conclusive for	1983
purposes of the validity and enforceability of the agreement, and	1984
any loans or other agreements entered into pursuant to the	1985
agreement, to provide research and development financial	1986
assistance.	1987

(B) Whenever a person applies for research and development	1988
financial assistance, and the eligible research and development	1989
project for which that assistance is requested is to relocate an	1990
eligible research and development project that is currently being	1991
operated by the person and that is located in another county,	1992
municipal corporation, or township within the state, the director	1993
shall provide written notification to the appropriate local	1994
governmental bodies and state officials. The notification shall	1995
state all of the following:	1996

(1) The name of the person applying for research and	1997
development financial assistance;	1998

(2) The county, and the municipal corporation or township, in	1999
which the project for which research and development financial	2000
assistance is requested will be located;	2001

(3) The county, and the municipal corporation or township, in	2002
which the eligible research and development project is located at	2003
the time such financial assistance is requested.	2004

The director shall provide the written notification to the	2005
appropriate local governmental bodies and state officials so that	2006
they receive the notification at least five days before the	2007
development financing advisory council meeting at which the	2008
council considers the request for research and development	2009
financial assistance.	2010

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

2011

(1) "Appropriate local governmental bodies" means all of the	2012
following:	2013

(a) The board of county commissioners of the county in which	2014
the eligible research and development project for which research	2015
and development financial assistance is requested is located and	2016
of the county in which the project will be located;	2017

(b) The legislative authority of the municipal corporation or	2018
the board of township trustees of the township in which the	2019
eligible research and development project for which research and	2020
development financial assistance is requested is located and of	2021
the municipal corporation or township in which the project will be	2022
located.	2023

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

2024

(a) The state representative and state senator in whose	2025
district the eligible research and development project for which	2026
research and development financial assistance is requested is	2027
located;	2028

(b) The state representative and state senator in whose	2029
district the eligible research and development project will be	2030
located.	2031

Sec. 166.19. (A)(1) In determining the eligible research and	2032
development projects to be assisted and the nature, amount, and	2033
terms of the research and development financial assistance to be	2034
provided, the director of development shall consider all of the	2035
following:	2036

(a) The number of jobs to be created or preserved, directly	2037
or indirectly, by or in connection with the eligible research and	2038
development project;	2039

(b) Payrolls, and the taxes generated at both state and local	2040
levels, by the eligible research and development project and by	2041
the employment created or preserved by or in connection with the	2042
project;	2043

(c) The size, nature, and cost of the eligible research and	2044
development project;	2045

(d) The likelihood that the eligible research and development	2046
project will create long-term jobs in enterprises consistent with	2047
the changing economy of the state and nation;	2048

(e) The needs of any private sector enterprise to be	2049
assisted, taking into consideration the amount and kind of	2050
assistance, if any, to be provided to the private sector	2051
enterprise by other governmental agencies through tax exemption or	2052
abatement, financing assistance with industrial development bonds,	2053
and otherwise, with respect to the eligible research and	2054
development project or with respect to any providers of research	2055
and development property to be included as part of the project;	2056

(f) The likelihood that the eligible research and development	2057
project will be successfully implemented.	2058

(2) The director may consider the benefits to the local area,	2059
including taxes, jobs, and reduced unemployment and reduced	2060
welfare costs, in the leasing or sale of eligible research and	2061
development project facilities and in loan arrangements.	2062

(3) The director may consider the effect of an eligible	2063
research and development project upon any entity engaged to	2064
provide research and development property to be acquired, leased,	2065
or licensed in connection with research and development financial	2066
assistance.	2067

(B) The director shall submit to the development financing	2068
advisory council data pertinent to the considerations set forth in	2069
division (A) of this section, the terms of the proposed research	2070
and development assistance, and such other relevant information as	2071
the council may request.	2072

(C) The development financing advisory council, on the basis	2073
of the data submitted under division (B) of this section, shall	2074
make recommendations as to the appropriateness of the research and	2075
development financial assistance to be provided. The	2076
recommendations may be revised to reflect any changes in the	2077
proposed research and development financial assistance that the	2078
director may submit to the council. The recommendations of the	2079
council as to the appropriateness of the proposed research and	2080
development financial assistance shall be submitted to the	2081
controlling board.	2082

(D) Financial statements and other data submitted to the	2083
director of development, the development financing advisory	2084
council, or the controlling board by any private sector person in	2085
connection with research and development financial assistance, or	2086
any information taken from such statements or data for any	2087
purpose, shall not be open to public inspection. The development	2088
financing advisory council, in considering confidential	2089
information in connection with research and development financial	2090
assistance may, only for consideration of the confidential	2091
information referred to and in the manner provided in division (E)	2092
of section 121.22 of the Revised Code, close the meeting during	2093
such consideration.	2094

Sec. 166.20. There is hereby created in the state treasury	2095
the research and development loan fund. The fund shall consist of	2096
moneys received from the issuance of obligations for research and	2097
development purposes under section 166.08 of the Revised Code;	2098
moneys deposited to the fund pursuant to divisions (C) and (G) of	2099
section 166.21 of the Revised Code; service charges imposed under	2100
section 166.21 of the Revised Code; and any grants, gifts, or	2101
contributions of money received by the director of development to	2102
be used for making loans under section 166.21 of the Revised Code.	2103
All investment earnings on the cash balance in the fund shall be	2104
credited to the fund. The fund shall not be comprised, in any	2105
part, of moneys raised by taxation.	2106

Sec. 166.21. (A) The director of development, with the	2107
approval of the controlling board and subject to other applicable	2108
provisions of this chapter, may lend moneys in the research and	2109
development loan fund to persons for the purpose of paying	2110
allowable costs of eligible research and development projects, if	2111
the director determines that all of the following conditions are	2112
met:	2113

(1) The project is an eligible research and development	2114
project and is economically sound;	2115

(2) The amount to be lent from the research and development	2116
loan fund will not exceed seventy-five per cent of the total costs	2117
of the eligible research and development project;	2118

(3) The repayment of the loan from the research and	2119
development loan fund will be secured by a mortgage, lien,	2120
assignment, pledge, or other interest in property or other assets	2121
of the borrower at such level of priority and value as the	2122
director considers necessary, provided that, in making such a	2123
determination, the director shall take into account the value of	2124
any rights granted by the borrower to the director to control the	2125
use of any assets of the borrower under the circumstances	2126
described in the loan documents.	2127

(B) The determinations of the director under division (A) of	2128
this section shall be conclusive for purposes of the validity of a	2129
loan commitment evidenced by a loan agreement signed by the	2130
director.	2131

(C) Fees, charges, rates of interest, times of payment of	2132
interest and principal, and other terms and conditions of, and	2133
security for, loans made from the research and development loan	2134
fund shall be such as the director determines to be appropriate	2135
and in furtherance of the purpose for which the loans are made.	2136
The moneys used in making loans shall be disbursed from the fund	2137
upon order of the director. Unless otherwise specified in any	2138
indenture or other instrument securing obligations under division	2139
(D) of section 166.08 of the Revised Code, any payments of	2140
principal and interest from loans made from the fund shall be paid	2141
to the fund and used for the purpose of making loans under this	2142
section.	2143

(D)(1) As used in this division, "qualified research and	2144
development loan payments" means payments of principal and	2145
interest on a loan made from the research and development loan	2146
fund.	2147

(2) Each year, the director may, upon request, issue a	2148
certificate to a borrower of moneys from the research and	2149
development loan fund indicating the amount of the qualified	2150
research and development loan payments made by or on behalf of the	2151
borrower during the calendar year immediately preceding the tax	2152
year, as defined in section 5733.04 of the Revised Code, or	2153
taxable year, as defined in section 5747.01 of the Revised Code,	2154
for which the certificate is issued. In addition to indicating the	2155
amount of qualified research and development loan payments, the	2156
certificate shall include a determination of the director that as	2157
of the thirty-first day of December of the calendar year for which	2158
the certificate is issued, the borrower is not in default under	2159
the loan agreement, lease, or other instrument governing repayment	2160
of the loan, including compliance with the job creation and	2161
retention commitments that are part of the qualified research and	2162
development project. The director shall not issue a certificate in	2163
an amount that exceeds one hundred fifty thousand dollars.	2164

(E) The director may take actions necessary or appropriate to	2165
collect or otherwise deal with any loan made under this section.	2166

(F) The director may fix service charges for the making of a	2167
loan. The charges shall be payable at such times and place and in	2168
such amounts and manner as may be prescribed by the director.	2169

(G)(1) There shall be credited to the research and	2170
development loan fund moneys received by this state from the	2171
repayment of loans, including interest thereon, made from the	2172
fund, and moneys received from the sale, lease, or other	2173
disposition of property acquired or constructed with moneys in the	2174
fund derived from the proceeds of the sale of obligations under	2175
section 166.08 of the Revised Code. Moneys in the fund shall be	2176
applied as provided in this chapter pursuant to appropriations	2177
made by the general assembly.	2178

(2) In addition to the requirements in division (G)(1) of	2179
this section, moneys referred to in that division may be deposited	2180
to the credit of separate accounts established by the director of	2181
development within the research and development loan fund or in	2182
the bond service fund and pledged to the security of obligations,	2183
applied to the payment of bond service charges without need for	2184
appropriation, released from any such pledge and transferred to	2185
the research and development loan fund, all as and to the extent	2186
provided in the bond proceedings pursuant to written directions of	2187
the director of development. Accounts may be established by the	2188
director in the research and development loan fund for particular	2189
projects or otherwise. The director may withdraw from the fund or,	2190
subject to provisions of the applicable bond proceedings, from any	2191
special funds established pursuant to the bond proceedings, or	2192
from any accounts in such funds, any amounts of investment income	2193
required to be rebated and paid to the federal government in order	2194
to maintain the exemption from federal income taxation of interest	2195
on obligations issued under this chapter, which withdrawal and	2196
payment may be made without the necessity for appropriation.	2197

Sec. 184.04. (A) The Ohio research commercialization grant	2198
program is hereby created to improve the commercial viability of	2199
research projects by improving the ability of small technology	2200
companies to assess their commercial potential and the commercial	2201
potential of research projects, and by promoting the	2202
competitiveness of these companies through the augmentation of	2203
federal research and development funding. The third frontier	2204
commission shall award grants to eligible applicants on a	2205
competitive basis for the following purposes:	2206

(1) Commercialization of a core competency technology,	2207
including, but not limited to, advanced materials; instruments,	2208
controls, and electronics; biosciences; power and propulsion; and	2209
information technology;	2210

(2) Other business activities related to the	2211
commercialization of a core competency technology.	2212

(B) In order to be eligible for an Ohio research	2213
commercialization grant, the applicant shall demonstrate both of	2214
the following to the third frontier commission:	2215

(1) It is located in Ohio;

2216

(2) It either:

2217

(a) Has received a phase I award of funds under the small	2218
business innovation research program or the small business	2219
technology transfer program established in 15 U.S.C. 638, or a	2220
similar award of federal funds under a program designated by the	2221
third frontier commission as qualifying an applicant for a grant	2222
under this section; or	2223

(b) Demonstrates eligibility for an award of funds under the	2224
federal advanced technology program established in 15 U.S.C. 278n	2225
or a similar federal program designated by the third frontier	2226
commission as qualifying an applicant for a grant under this	2227
section.	2228

(C) The third frontier commission shall review proposals from	2229
applicants that meet the requirements stated in division (B) of	2230
this section, and may issue commitments to applicants for	2231
conditional grants of funds under this section, conditioned on the	2232
applicant receiving a phase II award of funds under the federal	2233
small business innovation research program or the small business	2234
technology transfer program, an award of funds under the federal	2235
advanced technology program, or an award of federal funds under a	2236
similar federal program designated by the director.	2237

(D) No funds shall be disbursed under the Ohio research	2238
commercialization grant program until the third frontier	2239
commission has received notice from the applicant, in such form as	2240
the commission prescribes, that the applicant has received an	2241
award of federal funds under a program described in division	2242
(B)(2)(b) or (C) of this section.	2243

(E) An eligible applicant that receives a grant under the	2244
Ohio research commercialization grant program is not precluded	2245
from being considered for or participating in other financial	2246
assistance programs offered by the department of development.	2247

(F) The third frontier commission shall adopt rules under	2248
Chapter 119. of the Revised Code establishing all of the	2249
following:	2250

(1) Forms and procedures by which eligible applicants may	2251
apply for grants under this section;	2252

(2) Criteria for reviewing, evaluating, and ranking	2253
applications, and for approving applications from eligible	2254
applicants that best serve the goals of the Ohio research	2255
commercialization grant program;	2256

(3) Reporting requirements and monitoring procedures;

2257

(4) The federal awards and programs that make an applicant	2258
eligible for a grant under divisions (B) and (C) of this section;	2259

(5) Any other rules necessary to implement and administer the	2260
Ohio research commercialization grant program.	2261

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

2262

(1) "Borrower" means any person that receives a loan from the	2263
director of development under section 166.21 of the Revised Code,	2264
regardless of whether the borrower is subject to the taxes imposed	2265
by sections 5733.06, 5733.065, and 5733.066 of the Revised Code.	2266

(2) "Related member" has the same meaning as in section	2267
5733.042 of the Revised Code.	2268

(3) "Qualified research and development loan payments" has	2269
the same meaning as in division (D) of section 166.21 of the	2270
Revised Code.	2271

(B) Beginning in tax year 2004, a nonrefundable credit is	2272
allowed against the taxes imposed by sections 5733.06, 5733.065,	2273
and 5733.066 of the Revised Code equal to a borrower's qualified	2274
research and development loan payments made during the calendar	2275
year immediately preceding the tax year for which the credit is	2276
claimed. The amount of the credit for a tax year shall not exceed	2277
one hundred fifty thousand dollars. No taxpayer is entitled to	2278
claim a credit under this section unless it has obtained a	2279
certificate issued by the director of development under division	2280
(D) of section 166.21 of the Revised Code. The credit shall be	2281
claimed in the order required under section 5733.98 of the Revised	2282
Code. The credit, to the extent it exceeds the taxpayer's tax	2283
liability for the tax year after allowance for any other credits	2284
that precede the credit under this section in that order, shall be	2285
carried forward to the next succeeding tax year or years until	2286
fully used.	2287

(C) A borrower entitled to a credit under this section may	2288
assign the credit, or a portion thereof, to any of the following:	2289

(1) A related member of that borrower;

2290

(2) The owner or lessee of the eligible research and	2291
development project;	2292

(3) A related member of the owner or lessee of the eligible	2293
research and development project.	2294

A borrower making an assignment under this division shall	2295
provide written notice of the assignment to the tax commissioner	2296
and the director of development, in such form as the tax	2297
commissioner prescribes, before the credit that was assigned is	2298
used. The assignor may not claim the credit to the extent it was	2299
assigned to an assignee. The assignee may claim the credit only to	2300
the extent the assignor has not claimed it.	2301

(D) If any taxpayer is a partner in a partnership or a member	2302
in a limited liability company treated as a partnership for	2303
federal income tax purposes, the taxpayer shall be allowed the	2304
taxpayer's distributive or proportionate share of the credit	2305
available through the partnership or limited liability company.	2306

(E) The aggregate credit against the taxes imposed by	2307
sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised	2308
Code that may be claimed under this section and section 5747.331	2309
of the Revised Code by a borrower as a result of qualified	2310
research and development loan payments attributable during a	2311
calendar year to any one loan shall not exceed one hundred fifty	2312
thousand dollars.	2313

Sec. 5733.98.  (A) To provide a uniform procedure for	2314
calculating the amount of tax imposed by section 5733.06 of the	2315
Revised Code that is due under this chapter, a taxpayer shall	2316
claim any credits to which it is entitled in the following order,	2317
except as otherwise provided in section 5733.058 of the Revised	2318
Code:	2319

(1) The credit for taxes paid by a qualifying pass-through	2320
entity allowed under section 5733.0611 of the Revised Code;	2321

(2) The credit allowed for financial institutions under	2322
section 5733.45 of the Revised Code;	2323

(3) The credit for qualifying affiliated groups under section	2324
5733.068 of the Revised Code;	2325

(4) The subsidiary corporation credit under section 5733.067	2326
of the Revised Code;	2327

(5) The savings and loan assessment credit under section	2328
5733.063 of the Revised Code;	2329

(6) The credit for recycling and litter prevention donations	2330
under section 5733.064 of the Revised Code;	2331

(7) The credit for employers that enter into agreements with	2332
child day-care centers under section 5733.36 of the Revised Code;	2333

(8) The credit for employers that reimburse employee child	2334
day-care expenses under section 5733.38 of the Revised Code;	2335

(9) The credit for maintaining railroad active grade crossing	2336
warning devices under section 5733.43 of the Revised Code;	2337

(10) The credit for purchases of lights and reflectors under	2338
section 5733.44 of the Revised Code;	2339

(11) The job retention credit under division (B) of section	2340
5733.0610 of the Revised Code;	2341

(12) The credit for losses on loans made under the Ohio	2342
venture capital program under sections 150.01 to 150.10 of ththe	2343
Revised Code if the taxpayer elected a nonrefundable credit under	2344
section 150.07 of the Revised Code;	2345

(13) The credit for purchases of new manufacturing machinery	2346
and equipment under section 5733.31 or section 5733.311 of the	2347
Revised Code;	2348

(14) The second credit for purchases of new manufacturing	2349
machinery and equipment under section 5733.33 of the Revised Code;	2350

(15) The job training credit under section 5733.42 of the	2351
Revised Code;	2352

(16) The credit for qualified research expenses under section	2353
5733.351 of the Revised Code;	2354

(17) The enterprise zone credit under section 5709.66 of the	2355
Revised Code;	2356

(18) The credit for the eligible costs associated with a	2357
voluntary action under section 5733.34 of the Revised Code;	2358

(19) The credit for employers that establish on-site child	2359
day-care under section 5733.37 of the Revised Code;	2360

(20) The ethanol plant investment credit under section	2361
5733.46 of the Revised Code;	2362

(21) The credit for purchases of qualifying grape production	2363
property under section 5733.32 of the Revised Code;	2364

(22) The export sales credit under section 5733.069 of the	2365
Revised Code;	2366

(23) The credit for research and development and technology	2367
transfer investors under section 5733.35 of the Revised Code;	2368

(24) The enterprise zone credits under section 5709.65 of the	2369
Revised Code;	2370

(25) The credit for using Ohio coal under section 5733.39 of	2371
the Revised Code;	2372

(26) The research and development credit under section	2373
5733.352 of the Revised Code;	2374

(27) The refundable jobs creation credit under division (A)	2375
of section 5733.0610 of the Revised Code;	2376

(27)(28) The refundable credit for tax withheld under	2377
division (B)(2) of section 5747.062 of the Revised Code;	2378

(28)(29) The credit for losses on loans made to the Ohio	2379
venture capital program under sections 150.01 to 150.10 of the	2380
Revised Code if the taxpayer elected a refundable credit under	2381
section 150.07 of the Revised Code.	2382

(B) For any credit except the credits enumerated in divisions	2383
(A)(26), (27), and (28), and (29) of this section, the amount of	2384
the credit for a tax year shall not exceed the tax due after	2385
allowing for any other credit that precedes it in the order	2386
required under this section. Any excess amount of a particular	2387
credit may be carried forward if authorized under the section	2388
creating that credit.	2389

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

2390

(1) "Borrower" means any person that receives a loan from the	2391
director of development under section 166.21 of the Revised Code,	2392
regardless of whether the borrower is subject to the tax imposed	2393
by section 5747.02 of the Revised Code.	2394

(2) "Related member" has the same meaning as in section	2395
5733.042 of the Revised Code.	2396

(3) "Qualified research and development loan payments" has	2397
the same meaning as in division (D) of section 166.21 of the	2398
Revised Code.	2399

(B) Beginning in taxable year 2003, a nonrefundable credit is	2400
allowed against the tax imposed by section 5747.02 of the Revised	2401
Code equal to a borrower's qualified research and development loan	2402
payments made during the calendar year that includes the last day	2403
of the taxable year for which the credit is claimed. The amount of	2404
the credit for a taxable year shall not exceed one hundred fifty	2405
thousand dollars. No taxpayer is entitled to claim a credit under	2406
this section unless it has obtained a certificate issued by the	2407
director of development under division (D) of section 166.21 of	2408
the Revised Code. The credit shall be claimed in the order	2409
required under section 5747.98 of the Revised Code. The credit, to	2410
the extent it exceeds the taxpayer's tax liability for the taxable	2411
year after allowance for any other credits that precede the credit	2412
under this section in that order, shall be carried forward to the	2413
next succeeding taxable year or years until fully used.	2414

(C) A borrower entitled to a credit under this section may	2415
assign the credit, or a portion thereof, to any of the following:	2416

(1) A related member of that borrower;

2417

(2) The owner or lessee of the eligible research and	2418
development project;	2419

(3) A related member of the owner or lessee of the eligible	2420
research and development project.	2421

A borrower making an assignment under this division shall	2422
provide written notice of the assignment to the tax commissioner	2423
and the director of development, in such form as the tax	2424
commissioner prescribes, before the credit that was assigned is	2425
used. The assignor may not claim the credit to the extent it was	2426
assigned to an assignee. The assignee may claim the credit only to	2427
the extent the assignor has not claimed it.	2428

(D) If any taxpayer is a shareholder in an S corporation, a	2429
partner in a partnership, or a member in a limited liability	2430
company treated as a partnership for federal income tax purposes,	2431
the taxpayer shall be allowed the taxpayer's distributive or	2432
proportionate share of the credit available through the S	2433
corporation, partnership, or limited liability company.	2434

(E) The aggregate credit against the taxes imposed by	2435
sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised	2436
Code that may be claimed under this section and section 5733.352	2437
of the Revised Code by a borrower as a result of qualified	2438
research and development loan payments attributable during a	2439
calendar year to any one loan shall not exceed one hundred fifty	2440
thousand dollars.	2441

Sec. 5747.98.  (A) To provide a uniform procedure for	2442
calculating the amount of tax due under section 5747.02 of the	2443
Revised Code, a taxpayer shall claim any credits to which the	2444
taxpayer is entitled in the following order:	2445

(1) The retirement income credit under division (B) of	2446
section 5747.055 of the Revised Code;	2447

(2) The senior citizen credit under division (C) of section	2448
5747.05 of the Revised Code;	2449

(3) The lump sum distribution credit under division (D) of	2450
section 5747.05 of the Revised Code;	2451

(4) The dependent care credit under section 5747.054 of the	2452
Revised Code;	2453

(5) The lump sum retirement income credit under division (C)	2454
of section 5747.055 of the Revised Code;	2455

(6) The lump sum retirement income credit under division (D)	2456
of section 5747.055 of the Revised Code;	2457

(7) The lump sum retirement income credit under division (E)	2458
of section 5747.055 of the Revised Code;	2459

(8) The credit for displaced workers who pay for job training	2460
under section 5747.27 of the Revised Code;	2461

(9) The campaign contribution credit under section 5747.29 of	2462
the Revised Code;	2463

(10) The twenty-dollar personal exemption credit under	2464
section 5747.022 of the Revised Code;	2465

(11) The joint filing credit under division (G) of section	2466
5747.05 of the Revised Code;	2467

(12) The nonresident credit under division (A) of section	2468
5747.05 of the Revised Code;	2469

(13) The credit for a resident's out-of-state income under	2470
division (B) of section 5747.05 of the Revised Code;	2471

(14) The credit for employers that enter into agreements with	2472
child day-care centers under section 5747.34 of the Revised Code;	2473

(15) The credit for employers that reimburse employee child	2474
day-care expenses under section 5747.36 of the Revised Code;	2475

(16) The credit for adoption of a minor child under section	2476
5747.37 of the Revised Code;	2477

(17) The credit for purchases of lights and reflectors under	2478
section 5747.38 of the Revised Code;	2479

(18) The job retention credit under division (B) of section	2480
5747.058 of the Revised Code;	2481

(19) The credit for losses on loans made under the Ohio	2482
venture capital program under sections 150.01 to 150.10 of the	2483
Revised Code if the taxpayer elected a nonrefundable credit under	2484
section 150.07 of the Revised Code;	2485

(20) The credit for purchases of new manufacturing machinery	2486
and equipment under section 5747.26 or section 5747.261 of the	2487
Revised Code;	2488

(21) The second credit for purchases of new manufacturing	2489
machinery and equipment and the credit for using Ohio coal under	2490
section 5747.31 of the Revised Code;	2491

(22) The job training credit under section 5747.39 of the	2492
Revised Code;	2493

(23) The enterprise zone credit under section 5709.66 of the	2494
Revised Code;	2495

(24) The credit for the eligible costs associated with a	2496
voluntary action under section 5747.32 of the Revised Code;	2497

(25) The credit for employers that establish on-site child	2498
day-care centers under section 5747.35 of the Revised Code;	2499

(26) The ethanol plant investment credit under section	2500
5747.75 of the Revised Code;	2501

(27) The credit for purchases of qualifying grape production	2502
property under section 5747.28 of the Revised Code;	2503

(28) The export sales credit under section 5747.057 of the	2504
Revised Code;	2505

(29) The credit for research and development and technology	2506
transfer investors under section 5747.33 of the Revised Code;	2507

(30) The enterprise zone credits under section 5709.65 of the	2508
Revised Code;	2509

(31) The research and development credit under section	2510
5747.331 of the Revised Code;	2511

(32) The refundable jobs creation credit under division (A)	2512
of section 5747.058 of the Revised Code;	2513

(32)(33) The refundable credit for taxes paid by a qualifying	2514
entity granted under section 5747.059 of the Revised Code;	2515

(33)(34) The refundable credits for taxes paid by a	2516
qualifying pass-through entity granted under division (J) of	2517
section 5747.08 of the Revised Code;	2518

(34)(35) The refundable credit for tax withheld under	2519
division (B)(1) of section 5747.062 of the Revised Code;	2520

(35)(36) The credit for losses on loans made to the Ohio	2521
venture capital program under sections 150.01 to 150.10 of the	2522
Revised Code if the taxpayer elected a refundable credit under	2523
section 150.07 of the Revised Code.	2524

(B) For any credit, except the credits enumerated in	2525
divisions (A)(31)(32) to (35)(36) of this section and the credit	2526
granted under division (I) of section 5747.08 of the Revised Code,	2527
the amount of the credit for a taxable year shall not exceed the	2528
tax due after allowing for any other credit that precedes it in	2529
the order required under this section. Any excess amount of a	2530
particular credit may be carried forward if authorized under the	2531
section creating that credit. Nothing in this chapter shall be	2532
construed to allow a taxpayer to claim, directly or indirectly, a	2533
credit more than once for a taxable year.	2534

Section 2. That existing sections 122.15, 122.151, 122.152,	2535
122.154, 122.171, 166.01, 166.02, 166.08, 166.11, 166.13, 166.14,	2536
166.16, 5733.98, and 5747.98 of the Revised Code are hereby	2537
repealed.	2538

Section 3. All items in this section are hereby appropriated	2539
as designated out of any moneys in the state treasury to the	2540
credit of the Research and Development Fund (Fund 010). For all	2541
appropriations made in this act, those in the first column are for	2542
fiscal year 2004 and those in the second column are for fiscal	2543
year 2005. The appropriations made in this act are in addition to	2544
any other appropriations made for the 2003-2005 biennium.	2545

DEV DEPARTMENT OF DEVELOPMENT

2546

Appropriations

Research and Development Loan Fund

2547

REASERCH AND DEVELOPMENT

2551

The foregoing appropriation item 195-665, Research and	2552
Development, shall be used to provide for research and development	2553
purposes including loans pursuant to Chapter 166. and particularly	2554
sections 166.17 to 166.21 of the Revised Code. Of the foregoing	2555
appropriation item 195-665, Research and Development, the	2556
unencumbered balance of the appropriation at the end of fiscal	2557
year 2004 is transferred by the Director of Budget and Management	2558
to fiscal year 2005.	2559

Within the limits set forth in this act, the Director of	2560
Budget and Management shall establish accounts indicating source	2561
and amount of funds for each appropriation made in this act, and	2562
shall determine the form and manner in which appropriation	2563
accounts shall be maintained. Expenditures from appropriations	2564
contained in this act shall be accounted for as though made in Am.	2565
Sub. H.B. 95 of the 125th General Assembly.	2566

The appropriations made in this act are subject to all	2567
provisions of Am. Sub. H.B. 95 of the 125th General Assembly that	2568
are generally applicable to such appropriations.	2569

Section 4. That Section 41 of Am. Sub. H.B. 94 of the 124th	2570
General Assembly, as most recently amended by Am. Sub. H.B. 405 of	2571
the 124th General Assembly, be amended to read as follows:	2572

Sec. 41. DEV DEPARTMENT OF DEVELOPMENT

2573

General Revenue Fund

2574

General Services Fund Group

2605

Federal Special Revenue Fund Group

2611

State Special Revenue Fund Group

2627

Facilities Establishment Fund

2644

Innovation Ohio Loan Fund

2654

Coal Research/Development Fund

2657

Section 5. That existing Section 41 of Am. Sub. H.B. 94 of	2663
the 124th General Assembly, as most recently amended by Am. Sub.	2664
H.B. 405 of the 124th General Assembly, is hereby repealed.	2665

Section 6. That Section 41.15 of Am. Sub. H.B. 94 of the	2666
124th General Assembly, as amended by Am. Sub. H.B. 405 of the	2667
124th General Assembly, be amended to read as follows:	2668

Sec. 41.15.  FACILITIES ESTABLISHMENT FUND

2669

The foregoing appropriation item 195-615, Facilities	2670
Establishment (Fund 037), shall be used for the purposes of the	2671
Facilities Establishment Fund under Chapter 166. of the Revised	2672
Code.	2673

Notwithstanding Chapter 166. of the Revised Code, up to	2674
$1,600,000 may be transferred each fiscal year from the Facilities	2675
Establishment Fund (Fund 037) to the Economic Development	2676
Financing Operating Fund (Fund 451). The transfer is subject to	2677
Controlling Board approval pursuant to division (B) of section	2678
166.03 of the Revised Code.	2679

Notwithstanding Chapter 166. of the Revised Code, up to	2680
$3,800,000 may be transferred in each fiscal year of the biennium	2681
from the Facilities Establishment Fund (Fund 037) to the Minority	2682
Business Enterprise Loan Fund (Fund 4W1). The transfer is subject	2683
to Controlling Board approval pursuant to division (B) of section	2684
166.03 of the Revised Code.	2685

Notwithstanding Chapter 166. of the Revised Code, up to	2686
$5,000,000 cash may be transferred during the biennium from the	2687
Facilities Establishment Fund (Fund 037) to the Port Authority	2688
Bond Reserves Fund (Fund 5D1) for use by any port authority in	2689
establishing or supplementing bond reserve funds for any bond	2690
issuance permitted under Chapter 4582. of the Revised Code. The	2691
Director of Development shall develop program guidelines for the	2692
transfer and release of funds, including, but not limited to, a	2693
provision that a port authority shall receive not more than	2694
$2,000,000 total from the fund. The transfer and release of funds	2695
are subject to Controlling Board approval.	2696

Notwithstanding Chapter 166. of the Revised Code, up to	2697
$20,475,000 cash may be transferred during the biennium from the	2698
Facilities Establishment Fund (Fund 037) to the Urban	2699
Redevelopment Loans Fund (Fund 5D2) for the purpose of removing	2700
barriers to urban core redevelopment. The Director of Development	2701
shall develop program guidelines for the transfer and release of	2702
funds, including, but not limited to, the completion of all	2703
appropriate environmental assessments before state assistance is	2704
committed to a project.	2705

Notwithstanding Chapter 166. of the Revised Code, up to	2706
$5,000,000 per fiscal year in cash may be transferred from the	2707
Facilities Establishment Fund (Fund 037) to the Rural Industrial	2708
Park Loan Fund (Fund 4Z6). The transfer is subject to Controlling	2709
Board approval pursuant to section 166.03 of the Revised Code.	2710

FAMILY FARM LOAN PROGRAM

2711

Notwithstanding Chapter 166. of the Revised Code, up to	2712
$2,246,375 in each fiscal year shall be transferred from moneys in	2713
the Facilities Establishment Fund (Fund 037) to the Family Farm	2714
Loan Fund (Fund 5H1) in the Department of Development. These	2715
moneys shall be used for loan guarantees. The transfer is subject	2716
to Controlling Board approval.	2717

Financial assistance from the Family Farm Loan Fund (Fund	2718
5H1) shall be repaid to Fund 5H1. This fund is established in	2719
accordance with sections 166.031, 901.80, 901.81, 901.82, and	2720
901.83 of the Revised Code.	2721

When the Family Farm Loan Fund (Fund 5H1) ceases to exist,	2722
all outstanding balances, all loan repayments, and any other	2723
outstanding obligations shall revert to the Facilities	2724
Establishment Fund (Fund 037).	2725

RURAL DEVELOPMENT INITIATIVE FUND

2726

(A)(1) There is hereby created in the state treasury the	2727
Rural Development Initiative Fund (Fund 5S8). The fund shall	2728
receive moneys from the Facilities Establishment Fund. The	2729
Director of Development may make grants from the fund as specified	2730
in division (A)(2) of this section to eligible applicants in	2731
Appalachian counties and in rural counties in the state that are	2732
designated as distressed pursuant to section 122.25 of the Revised	2733
Code. Preference shall be given to eligible applicants located in	2734
Appalachian counties designated as distressed by the federal	2735
Appalachian Regional Commission. The fund shall cease to exist	2736
after June 30, 2007. All moneys remaining in the fund after that	2737
date shall revert to the Facilities Establishment Fund.	2738

(2) The Director of Development shall make grants from the	2739
Rural Development Initiative Fund only to eligible applicants who	2740
also qualify for and receive funding under the Rural Industrial	2741
Park Loan Program as specified in sections 122.23 to 122.27 of the	2742
Revised Code. Eligible applicants shall use the grants for the	2743
purposes specified in section 122.24 of the Revised Code. All	2744
projects supported by grants from the fund are subject to Chapter	2745
4115. of the Revised Code as specified in division (E) of section	2746
166.02 of the Revised Code. The Director shall develop program	2747
guidelines for the transfer and release of funds. The release of	2748
grant moneys to an eligible applicant is subject to Controlling	2749
Board approval.	2750

(B) Notwithstanding Chapter 166. of the Revised Code, the	2751
Director of Budget and Management may transfer up to $5,000,000	2752
per fiscal year in cash on an as needed basis at the request of	2753
the Director of Development from the Facilities Establishment Fund	2754
(Fund 037) to the Rural Development Initiative Fund (Fund 5S8).	2755
The transfer is subject to Controlling Board approval pursuant to	2756
section 166.03 of the Revised Code.	2757

CAPITAL ACCESS LOAN PROGRAM

2758

The foregoing appropriation item 195-628, Capital Access Loan	2759
Program, shall be used for operating, program, and administrative	2760
expenses of the program. Funds for the Capital Access Loan Program	2761
shall be used to assist participating financial institutions in	2762
making program loans to eligible businesses that face barriers in	2763
accessing working capital and obtaining fixed asset financing.	2764

Notwithstanding Chapter 166. of the Revised Code, the	2765
Director of Budget and Management may transfer up to $3,000,000	2766
per fiscal year in cash on an as needed basis at the request of	2767
the Director of Development from the Facilities Establishment Fund	2768
(Fund 037) to the Capital Access Loan Program Fund (Fund 5S9). The	2769
transfer is subject to Controlling Board approval pursuant to	2770
section 166.03 of the Revised Code.	2771

INNOVATION OHIO LOAN PROGRAM

2772

The foregoing appropriation item 195-664, Innovation Ohio,	2773
shall be used to provide for Innovation Ohio loans and loan	2774
guarantees pursuant the Chapter 166. and particularly sections	2775
166.12 to 166.16 of the Revised Code.	2776

Section 7. That existing Section 41.15 of Am. Sub. H.B. 94 of	2777
the 124th General Assembly, as amended by Am. Sub. H.B. 405 of the	2778
124th General Assembly, is hereby repealed.	2779

Section 8. The codified and uncodified sections of law	2780
contained in this act are not subject to the referendum.	2781
Therefore, under Section 1d of Article II, Ohio Constitution and	2782
section 1.471 of the Revised Code, the codified and uncodified	2783
sections of law contained in this act go into immediate effect	2784
when this act becomes law.	2785

Section 9.  Section 122.171 of the Revised Code is presented	2786
in this act as a composite of the section as amended by both H.B.	2787
675 and Am. Sub. S.B. 180 of the 124th General Assembly. The	2788
General Assembly, applying the principle stated in division (B) of	2789
section 1.52 of the Revised Code that amendments are to be	2790
harmonized if reasonably capable of simultaneous operation, finds	2791
that the composite is the resulting version of the section in	2792
effect prior to the effective date of the section as presented in	2793
this act.	2794