As Reported by the Senate Finance and Financial Institutions Committee

125th General Assembly
Regular Session
2003-2004
Sub. H. B. No. 393


REPRESENTATIVES Harwood, Perry, Williams, Hartnett, Carano, Schmidt, Seitz, Seaver, Sferra, Book, Kearns, Otterman, DeGeeter, Ujvagi, Barrett, Core, Hughes, Miller, Webster, Wilson, Allen, Aslanides, Beatty, Blasdel, Brown, Cirelli, Clancy, DeBose, Distel, Domenick, C. Evans, Faber, Flowers, Grendell, Key, Mason, S. Patton, Peterson, Price, Redfern, Schneider, D. Stewart, Strahorn, Sykes, Walcher

SENATOR Harris



A BILL
To amend sections 3383.01 and 3383.07 of the Revised 1
Code to provide that the Ohio Arts and Sports 2
Facilities Commission may participate in the 3
financing of motorsports complexes.4


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

       Section 1. That sections 3383.01 and 3383.07 of the Revised 5
Code be amended to read as follows:6

       Sec. 3383.01.  As used in this chapter:7

       (A) "Arts" means any of the following:8

       (1) Visual, musical, dramatic, graphic, design, and other9
arts, including, but not limited to, architecture, dance,10
literature, motion pictures, music, painting, photography,11
sculpture, and theater, and the provision of training or education12
in these arts;13

       (2) The presentation or making available, in museums or other 14
indoor or outdoor facilities, of principles of science and their 15
development, use, or application in business, industry, or16
commerce or of the history, heritage, development, presentation,17
and uses of the arts described in division (A)(1) of this section18
and of transportation;19

       (3) The preservation, presentation, or making available of20
features of archaeological, architectural, environmental, or21
historical interest or significance in a state historical facility22
or a local historical facility.23

       (B) "Arts organization" means either of the following:24

       (1) A governmental agency or Ohio nonprofit corporation that25
provides programs or activities in areas directly concerned with26
the arts;27

       (2) A regional arts and cultural district as defined in28
section 3381.01 of the Revised Code.29

       (C) "Arts project" means all or any portion of an Ohio arts30
facility for which the general assembly has specifically31
authorized the spending of money, or made an appropriation,32
pursuant to division (D)(3) or (E) of section 3383.07 of the33
Revised Code.34

       (D) "Cooperative contract" means a contract between the Ohio35
arts and sports facilities commission and an arts organization36
providing the terms and conditions of the cooperative use of an37
Ohio arts facility.38

       (E) "Costs of operation" means amounts required to manage an39
Ohio arts facility that are incurred following the completion of40
construction of its arts project, provided that both of the41
following apply:42

       (1) Those amounts either:43

       (a) Have been committed to a fund dedicated to that purpose;44

       (b) Equal the principal of any endowment fund, the income45
from which is dedicated to that purpose.46

       (2) The commission and the arts organization have executed an47
agreement with respect to either of those funds.48

       (F) "General building services" means general building49
services for an Ohio arts facility or an Ohio sports facility,50
including, but not limited to, general custodial care, security,51
maintenance, repair, painting, decoration, cleaning, utilities,52
fire safety, grounds and site maintenance and upkeep, and53
plumbing.54

       (G) "Governmental agency" means a state agency, a55
state-supported or state-assisted institution of higher education,56
a municipal corporation, county, township, or school district, a57
port authority created under Chapter 4582. of the Revised Code,58
any other political subdivision or special district in this state59
established by or pursuant to law, or any combination of these60
entities; except where otherwise indicated, the United States or61
any department, division, or agency of the United States, or any62
agency, commission, or authority established pursuant to an63
interstate compact or agreement.64

       (H) "Local contributions" means the value of an asset65
provided by or on behalf of an arts organization from sources66
other than the state, the value and nature of which shall be67
approved by the Ohio arts and sports facilities commission, in its68
sole discretion. "Local contributions" may include the value of69
the site where an arts project is to be constructed. All "local70
contributions," except a contribution attributable to such a site,71
shall be for the costs of construction of an arts project or the72
costs of operation of an arts facility.73

       (I) "Local historical facility" means a site or facility,74
other than a state historical facility, of archaeological,75
architectural, environmental, or historical interest or76
significance, or a facility, including a storage facility,77
appurtenant to the operations of such a site or facility, that is78
owned by an arts organization, provided the facility meets the79
requirements of division (K)(2)(b) of this section, is managed by80
or pursuant to a contract with the Ohio arts and sports facilities81
commission, and is used for or in connection with the activities82
of the commission, including the presentation or making available83
of arts to the public.84

       (J) "Manage," "operate," or "management" means the provision85
of, or the exercise of control over the provision of, activities:86

       (1) Relating to the arts for an Ohio arts facility, including 87
as applicable, but not limited to, providing for displays,88
exhibitions, specimens, and models; booking of artists,89
performances, or presentations; scheduling; and hiring or90
contracting for directors, curators, technical and scientific91
staff, ushers, stage managers, and others directly related to the92
arts activities in the facility; but not including general93
building services;94

       (2) Relating to sports and athletic events for an Ohio sports95
facility, including as applicable, but not limited to, providing 96
for booking of athletes, teams, and events; scheduling; and hiring 97
or contracting for staff, ushers, managers, and others directly 98
related to the sports and athletic events in the facility; but not 99
including general building services.100

       (K) "Ohio arts facility" means any of the following:101

       (1) The three theaters located in the state office tower at102
77 South High street in Columbus;103

       (2) Any capital facility in this state to which both of the104
following apply:105

       (a) The construction of an arts project related to the106
facility was authorized or funded by the general assembly pursuant107
to division (D)(3) of section 3383.07 of the Revised Code and108
proceeds of state bonds are used for costs of the arts project.109

       (b) The facility is managed directly by, or is subject to a110
cooperative or management contract with, the Ohio arts and sports111
facilities commission, and is used for or in connection with the112
activities of the commission, including the presentation or making113
available of arts to the public and the provision of training or114
education in the arts.115

       (3) A state historical facility or a local historical116
facility.117

       (L) "State agency" means the state or any of its branches,118
officers, boards, commissions, authorities, departments,119
divisions, or other units or agencies.120

       (M) "Construction" includes acquisition, including121
acquisition by lease-purchase, demolition, reconstruction,122
alteration, renovation, remodeling, enlargement, improvement, site123
improvements, and related equipping and furnishing.124

       (N) "State historical facility" means a site or facility of125
archaeological, architectural, environmental, or historical126
interest or significance, or a facility, including a storage127
facility, appurtenant to the operations of such a site or128
facility, that is owned by or is located on real property owned by129
the state or by an arts organization, so long as the real property130
of the arts organization is contiguous to state-owned real131
property that is in the care, custody, and control of an arts132
organization, and that is managed directly by or is subject to a133
cooperative or management contract with the Ohio arts and sports134
facilities commission and is used for or in connection with the135
activities of the commission, including the presentation or making136
available of arts to the public.137

       (O) "Ohio sports facility" means all or a portion of a138
stadium, arena, motorsports complex, or other capital facility in 139
this state, a primary purpose of which is to provide a site or 140
venue for the presentation to the public of either motorsports 141
events or events of one or more major or minor league professional 142
athletic or sports teams that are associated with the state or 143
with a city or region of the state, which facility is, in the case 144
of a motorsports complex, owned by the state or governmental 145
agency, or in all other instances, is owned by or is located on 146
real property owned by the state or a governmental agency, and 147
including all parking facilities, walkways, and other auxiliary 148
facilities, equipment, furnishings, and real and personal property149
and interests and rights therein, that may be appropriate for or 150
used for or in connection with the facility or its operation, for 151
capital costs of which state funds are spent pursuant to this 152
chapter. A facility constructed as an Ohio sports facility may be 153
both an Ohio arts facility and an Ohio sports facility.154

       (P) "Motorsports" means sporting events in which motor 155
vehicles are driven on a clearly demarcated tracked surface.156

       Sec. 3383.07.  (A) The department of administrative services157
shall provide for the construction of an arts project in158
conformity with Chapter 153. of the Revised Code, except as159
follows:160

       (1) For an arts project that has an estimated construction161
cost, excluding the cost of acquisition, of twenty-five million162
dollars or more, and that is financed by the Ohio building163
authority, construction services may be provided by the authority164
if the authority determines it should provide those services.165

       (2) For an arts project other than a state historical166
facility, construction services may be provided on behalf of the167
state by the Ohio arts and sports facilities commission, or by a168
governmental agency or an arts organization that occupies, will169
occupy, or is responsible for the Ohio arts facility, as170
determined by the commission. Construction services to be provided 171
by a governmental agency or an arts organization shall be172
specified in an agreement between the commission and the173
governmental agency or arts organization. The agreement, or any174
actions taken under it, are not subject to Chapter 123. or 153. of175
the Revised Code, except for sections 123.151 and 153.011 of the176
Revised Code, and shall be subject to Chapter 4115. of the Revised177
Code.178

       (3) For an arts project that is a state historical facility,179
construction services may be provided by the Ohio arts and sports180
facilities commission or by an arts organization that occupies,181
will occupy, or is responsible for the facility, as determined by182
the commission. The construction services to be provided by the183
arts organization shall be specified in an agreement between the184
commission and the arts organization. That agreement, and any185
actions taken under it, are not subject to Chapter 123., 153., or186
4115. of the Revised Code.187

       (B) For an Ohio sports facility that is financed in part by188
the Ohio building authority, construction services shall be189
provided on behalf of the state by or at the direction of the190
governmental agency or nonprofit corporation that will own or be191
responsible for the management of the facility, all as determined192
by the Ohio arts and sports facilities commission. Any193
construction services to be provided by a governmental agency or194
nonprofit corporation shall be specified in an agreement between195
the commission and the governmental agency or nonprofit196
corporation. That agreement, and any actions taken under it, are197
not subject to Chapter 123. or 153. of the Revised Code, except198
for sections 123.151 and 153.011 of the Revised Code, and shall be199
subject to Chapter 4115. of the Revised Code.200

       (C) General building services for an Ohio arts facility shall 201
be provided by the Ohio arts and sports facilities commission or 202
by an arts organization that occupies, will occupy, or is 203
responsible for the facility, as determined by the commission, 204
except that the Ohio building authority may elect to provide those 205
services for Ohio arts facilities financed with proceeds of state 206
bonds issued by the authority. The costs of management and general 207
building services shall be paid by the arts organization that 208
occupies, will occupy, or is responsible for the facility as 209
provided in an agreement between the commission and the arts 210
organization, except that the state may pay for general building 211
services for state-owned arts facilities constructed on212
state-owned land.213

       General building services for an Ohio sports facility shall214
be provided by or at the direction of the governmental agency or215
nonprofit corporation that will be responsible for the management216
of the facility, all as determined by the commission. Any general217
building services to be provided by a governmental agency or218
nonprofit corporation for an Ohio sports facility shall be219
specified in an agreement between the commission and the220
governmental agency or nonprofit corporation. That agreement, and221
any actions taken under it, are not subject to Chapter 123. or222
153. of the Revised Code, except for sections 123.151 and 153.011223
of the Revised Code, and shall be subject to Chapter 4115. of the224
Revised Code.225

       (D) This division does not apply to a state historical226
facility. No state funds, including any state bond proceeds, shall 227
be spent on the construction of any arts project under this228
chapter unless, with respect to the arts project and to the Ohio229
arts facility related to the project, all of the following apply:230

       (1) The Ohio arts and sports facilities commission has231
determined that there is a need for the arts project and the Ohio232
arts facility related to the project in the region of the state in 233
which the Ohio arts facility is located or for which the facility 234
is proposed.235

       (2) The commission has determined that, as an indication of236
substantial regional support for the arts project, the arts237
organization has made provision satisfactory to the commission, in238
its sole discretion, for local contributions amounting to not less239
than fifty per cent of the total state funding for the arts240
project.241

       (3) The general assembly has specifically authorized the242
spending of money on, or made an appropriation for, the243
construction of the arts project, or for rental payments relating244
to the financing of the construction of the arts project. 245
Authorization to spend money, or an appropriation, for planning246
the arts project does not constitute authorization to spend money247
on, or an appropriation for, construction of the arts project.248

       (E) No state funds, including any state bond proceeds, shall249
be spent on the construction of any state historical facility250
under this chapter unless the general assembly has specifically251
authorized the spending of money on, or made an appropriation for,252
the construction of the arts project related to the facility, or253
for rental payments relating to the financing of the construction254
of the arts project. Authorization to spend money, or an255
appropriation, for planning the arts project does not constitute256
authorization to spend money on, or an appropriation for, the257
construction of the arts project.258

       (F) State funds shall not be used to pay or reimburse more259
than fifteen per cent of the initial estimated construction cost260
of an Ohio sports facility, excluding any site acquisition cost,261
and no state funds, including any state bond proceeds, shall be262
spent on any Ohio sports facility under this chapter unless, with263
respect to that facility, all of the following apply:264

       (1) The Ohio arts and sports facilities commission has265
determined that there is a need for the facility in the region of266
the state for which the facility is proposed to provide the267
function of an Ohio sports facility as provided for in this268
chapter.269

       (2) As an indication of substantial local support for the270
facility, the commission has received a financial and development271
plan satisfactory to it, and provision has been made, by agreement272
or otherwise, satisfactory to the commission, for a contribution273
amounting to not less than eighty-five per cent of the total274
estimated construction cost of the facility, excluding any site275
acquisition cost, from sources other than the state.276

       (3) The general assembly has specifically authorized the277
spending of money on, or made an appropriation for, the278
construction of the facility, or for rental payments relating to279
state financing of all or a portion of the costs of constructing280
the facility. Authorization to spend money, or an appropriation,281
for planning or determining the feasibility of or need for the282
facility does not constitute authorization to spend money on, or283
an appropriation for, costs of constructing the facility.284

       (4) If state bond proceeds are being used for the Ohio sports285
facility, the state or a governmental agency owns or has286
sufficient property interests in the facility or in the site of287
the facility or in the portion or portions of the facility288
financed from proceeds of state bonds, which may include, but is289
not limited to, the right to use or to require the use of the290
facility for the presentation of sport and athletic events to the291
public at the facility.292

       (G) In addition to the requirements of division (F) of this 293
section, no state funds, including any state bond proceeds, shall 294
be spent on any Ohio sports facility that is a motorsports 295
complex, unless, with respect to that facility, both of the 296
following apply:297

       (1) Motorsports events shall be presented at the facility 298
pursuant to a lease entered into with the owner of the facility. 299
The term of the lease shall be for a period of not less than the 300
greater of the useful life of the portion of the facility financed 301
from proceeds of state bonds as determined using the guidelines 302
for maximum maturities as provided under divisions (B) and (C) of 303
section 133.20 of the Revised Code, or the period of time 304
remaining to the date of payment or provision for payment of 305
outstanding state bonds allocable to costs of the facility, all as 306
determined by the director of budget and management and certified 307
by the director to the Ohio arts and sports facilities commission 308
and to the Ohio building authority. 309

       (2) Any motorsports organization that commits to using the 310
facility for an established period of time shall give the 311
political subdivision in which the facility is located not less 312
than six months' advance notice if the organization intends to 313
cease utilizing the facility prior to the expiration of that 314
established period. Such a motorsports organization shall be 315
liable to the state for any state funds used on the construction 316
costs of the facility.317

       Section 2. That existing sections 3383.01 and 3383.07 of the 318
Revised Code are hereby repealed.319