As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 554

Representative Hottinger 

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A BILL

To amend sections 149.311, 166.01, 166.02, 166.08,

1

166.11, 184.02, 1555.03, 3333.38, 3333.68,

2

3333.69, 3333.70, 3345.32, 5725.151, 5733.47,

3

5747.76, and 5747.98 and to enact sections 164.28,

4

166.25, 166.26, 166.30, 184.23 to 184.26, 3333.71

5

to 3333.80, 3706.25 to 3706.29, and 5537.141 of

6

the Revised Code to establish the Ohio Bioproducts

7

Development Program and Ohio Biomedical

8

Development Program to be administered by the

9

Third Frontier Commission, to establish the Third

10

Frontier Economic Stimulus Advisory Board, to

11

expand the economic development programs

12

administered by the Department of Development to

13

include transportation logistics and distribution

14

infrastructure projects, to provide additional

15

money for capital improvement projects of local

16

subdivisions and for highway capital improvement

17

projects, to modify the authority of the Ohio Coal

18

Development Office, to administer coal research

19

and development projects, to provide for advanced

20

energy projects administered by the Ohio Air

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Quality Development Authority, to establish the

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Ohio Innovation Partnership Co-op/Internship

23

Program, to extend the historical building

24

rehabilitation tax credit, limit credit amounts,

25

require regional distributive balance and economic

26

effects to be considered, and to make an

27

appropriation.

28

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

Section 1. That sections 149.311, 166.01, 166.02, 166.08,	29
166.11, 184.02, 1555.03, 3333.38, 3333.68, 3333.69, 3333.70,	30
3345.32, 5725.151, 5733.47, 5747.76, and 5747.98 be amended and	31
that sections 164.28, 166.25, 166.26, 166.30, 184.23, 184.24,	32
184.25, 184.26, 3333.71, 3333.72, 3333.73, 3333.74, 3333.75,	33
3333.76, 3333.77, 3333.78, 3333.79, 3333.80, 3706.25, 3706.26,	34
3706.27, 3706.28, 3706.29, and 5537.141 of the Revised Code be	35
enacted to read as follows:	36

Sec. 149.311.  (A) As used in this section:

37

(1) "Historic building" means a building, including its	38
structural components, that is located in this state and that is	39
either individually listed on the national register of historic	40
places under 16 U.S.C. 470a, located in a registered historic	41
district, and certified by the state historic preservation officer	42
as being of historic significance to the district, or is	43
individually listed as a historic landmark designated by a local	44
government certified under 16 U.S.C. 470a(c).	45

(2) "Qualified rehabilitation expenditures" means	46
expenditures paid or incurred during the rehabilitation period,	47
and before and after that period as determined under 26 U.S.C. 47,	48
by an owner of a historic building to rehabilitate the building.	49
"Qualified rehabilitation expenditures" includes architectural or	50
engineering fees paid or incurred in connection with the	51
rehabilitation, and expenses incurred in the preparation of	52
nomination forms for listing on the national register of historic	53
places. "Qualified rehabilitation expenditures" does not include	54
any of the following:	55

(a) The cost of acquiring, expanding, or enlarging a historic	56
building;	57

(b) Expenditures attributable to work done to facilities	58
related to the building, such as parking lots, sidewalks, and	59
landscaping;	60

(c) New building construction costs.

61

(3) "Owner" of a historic building means a person holding the	62
fee simple interest in the building. "Owner" does not include the	63
state or a state agency, any political subdivision as defined in	64
section 9.23 of the Revised Code, or a nonprofit corporation.	65

(4) "Certificate owner" means the owner of a historic	66
building to which a rehabilitation tax credit certificate was	67
issued under this section.	68

(5) "Registered historic district" means a historic district	69
listed in the national register of historic places under 16 U.S.C.	70
470a, a historic district designated by a local government	71
certified under 16 U.S.C. 470a(c), or a local historic district	72
certified under 36 C.F.R. 67.8 and 67.9.	73

(6) "Rehabilitation" means the process of repairing or	74
altering a historic building or buildings, making possible an	75
efficient use while preserving those portions and features of the	76
building and its site and environment that are significant to its	77
historic, architectural, and cultural values.	78

(7) "Rehabilitation period" means one of the following:

79

(a) If the rehabilitation initially was not planned to be	80
completed in stages, a period chosen by the owner not to exceed	81
twenty-four months during which rehabilitation occurs;	82

(b) If the rehabilitation initially was planned to be	83
completed in stages, a period chosen by the owner not to exceed	84
sixty months during which rehabilitation occurs.	85

(8) "State historic preservation officer" or "officer" means	86
the state historic preservation officer appointed by the governor	87
under 16 U.S.C. 470a.	88

(9) "Application period" means eitherany of the following	89
time periods duringfor which an application for a rehabilitation	90
tax credit certificate may be filed under this section:	91

(a) July 1, 2007, through June 30, 2008;

92

(b) July 1, 2008, through June 30, 2009July 1, 2009, through	93
June 30, 2010;	94

(c) July 1, 2010, through June 30, 2011.

95

(B) On or after July 1, 2007, but before July 1, 2009For any	96
application period, the owner of a historic building may apply	97
to the state historic preservation officer for a rehabilitation	98
tax credit certificate for qualified rehabilitation expenditures	99
paid or incurred after April 4, 2007, for rehabilitation of a	100
historic building. The form and manner of filing such	101
applications shall be prescribed by rule of the director of	102
development, and applications expire at the end of each	103
application period. Before July 1, 2007, theEach application	104
shall state the amount of qualified rehabilitation expenditures	105
the applicant estimates will be paid or incurred. The director	106
may require applicants to furnish documentation of such	107
estimates.	108

The director, after consultation with the tax commissioner	109
and in accordance with Chapter 119. of the Revised Code, shall	110
adopt rules that establish all of the following:	111

(1) Forms and procedures by which applicants may apply for	112
rehabilitation tax credit certificates;	113

(2) Criteria for reviewing, evaluating, and approving	114
applications for certificates within the limitation on the number	115
of applications that may be approved in an application period	116
limitations under division (D) of this section, criteria for	117
assuring that the certificates issued encompass a mixture of high	118
and low qualified rehabilitation expenditures, and criteria for	119
issuing certificates under division (C)(3)(b) of this section;	120

(3) Eligibility requirements for obtaining a certificate	121
under this section;	122

(4) The form of rehabilitation tax credit certificates;

123

(5) Reporting requirements and monitoring procedures;

124

(6) Any other rules necessary to implement and administer	125
this section.	126

(C) The state historic preservation officer shall accept	127
applications in the order in which they are filed. Within seven	128
days after an application is filed, the officer shalland forward	129
itthem to the director of development, who shall review the	130
applicationapplications and determine whether all of the	131
following criteria are met:	132

(1) That the building that is the subject of the application	133
is a historic building and the applicant is the owner of the	134
building;	135

(2) That the rehabilitation will satisfy standards prescribed	136
by the United States secretary of the interior under 16 U.S.C.	137
470, et seq., as amended, and 36 C.F.R. 67.7 or a successor to	138
that section;	139

(3) That receiving a rehabilitation tax credit certificate	140
under this section is a major factor in:	141

(a) The applicant's decision to rehabilitate the historic	142
building; or	143

(b) To increase the level of investment in such	144
rehabilitation.	145

An applicant shall demonstrate to the satisfaction of the	146
state historic preservation officer and director of development	147
that the rehabilitation will satisfy the standards described in	148
division (C)(2) of this section before the applicant begins the	149
physical rehabilitation of the historic building.	150

(D) If theThe director of development may approve an	151
application and issue a rehabilitation tax credit certificate to	152
an applicant only if the director determines that the criteria in	153
divisions (C)(1), (2), and (3) of this section are met, the	154
director, in conjunction with the tax commissioner, shall conduct	155
a cost and benefit analysis for the historic building that is the	156
subject of an application filed under this section to determine	157
whether rehabilitation of the historic building, including	158
activities during the construction phase of the rehabilitation,	159
will result in a net revenue gain in state and local taxes. The	160
director shall not approve an application and issue a	161
rehabilitation tax credit certificate to an applicant unless the	162
cost and benefit analysis of the historic building determines	163
that there will be a net revenue gain in state and local taxes	164
once the building is used. A. The director shall consider the	165
potential economic impact and the regional distributive balance of	166
the credits throughout the state.	167

A rehabilitation tax credit certificate shall not be issued	168
before rehabilitation of a historic building is completed or for	169
an amount greater than the estimated amount furnished by the	170
applicant on the application for such certificate and approved by	171
the director. The director shall not approve more than one	172
hundred applications ina total of sixty million dollars of	173
rehabilitation tax credits for an application period.	174

(E) Issuance of a certificate represents a finding by the	175
director of development of the matters described in divisions	176
(C)(1), (2), and (3) of this section only; issuance of a	177
certificate does not represent a verification or certification by	178
the director of the amount of qualified rehabilitation	179
expenditures for which a tax credit may be claimed under section	180
5725.151, 5733.47, or 5747.76 of the Revised Code. The amount of	181
qualified rehabilitation expenditures for which a tax credit may	182
be claimed is subject to inspection and examination by the tax	183
commissioner or employees of the commissioner under section	184
5703.19 of the Revised Code and any other applicable law. Upon the	185
issuance of a certificate, the director shall certify to the tax	186
commissioner, in the form and manner requested by the tax	187
commissioner, the name of the applicant, the amount of qualified	188
rehabilitation expenditures shown on the certificate, and any	189
other information required by the rules adopted under this	190
section.	191

(F)(1) On or before the first day of December in 2007, 2008,	192
and 2009, 2010, and 2011, the director of development and tax	193
commissioner jointly shall submit to the president of the senate	194
and the speaker of the house of representatives a report on the	195
tax credit program established under this section and sections	196
5725.151, 5733.47, and 5747.76 of the Revised Code. The report	197
shall present an overview of the program and shall include	198
information on the number of rehabilitation tax credit	199
certificates issued under this section during an application	200
period, an update on the status of each historic building for	201
which an application was approved under this section, the dollar	202
amount of the tax credits granted under sections 5725.151,	203
5733.47, and 5747.76 of the Revised Code, and any other	204
information the director and commissioner consider relevant to	205
the topics addressed in the report.	206

(2) On or before December 1, 20102012, the director of	207
development and tax commissioner jointly shall submit to the	208
president of the senate and the speaker of the house of	209
representatives a comprehensive report that includes the	210
information required by division (F)(1) of this section and a	211
detailed analysis of the effectiveness of issuing tax credits for	212
rehabilitating historic buildings. The report shall be prepared	213
with the assistance of an economic research organization jointly	214
chosen by the director and commissioner.	215

Sec. 164.28. The local infrastructure development fund is	216
hereby created in the state treasury. The fund shall consist of	217
cash transferred from the jobs fund created in the state treasury.	218
Money in the fund shall be used to provide grants for local	219
infrastructure development and for capital improvement projects.	220
All investment earnings of the fund shall be credited to the fund.	221

Sec. 166.01.  As used in this chapter:

222

(A) "Allowable costs" means all or part of the costs of	223
project facilities, eligible projects, eligible innovation	224
projects, or eligible research and development projects, eligible	225
advanced energy projects, or eligible logistics and distribution	226
projects, including costs of acquiring, constructing,	227
reconstructing, rehabilitating, renovating, enlarging, improving,	228
equipping, or furnishing project facilities, eligible projects,	229
eligible innovation projects, or eligible research and development	230
projects, eligible advanced energy projects, or eligible logistics	231
and distribution projects, site clearance and preparation,	232
supplementing and relocating public capital improvements or	233
utility facilities, designs, plans, specifications, surveys,	234
studies, and estimates of costs, expenses necessary or incident	235
to determining the feasibility or practicability of assisting an	236
eligible project, an eligible innovation project, or an eligible	237
research and development project, an eligible advanced energy	238
project, or an eligible logistics and distribution project, or	239
providing project facilities or facilities related to an eligible	240
project, an eligible innovation project or, an eligible research	241
and development project, an eligible advanced energy project, or	242
an eligible logistics and distribution project, architectural,	243
engineering, and legal services fees and expenses, the costs of	244
conducting any other activities as part of a voluntary action, and	245
such other expenses as may be necessary or incidental to the	246
establishment or development of an eligible project, an eligible	247
innovation project, or an eligible research and development	248
project, an eligible advanced energy project, or an eligible	249
logistics and distribution project, and reimbursement of moneys	250
advanced or applied by any governmental agency or other person	251
for allowable costs.	252

(B) "Allowable innovation costs" includes allowable costs of	253
eligible innovation projects and, in addition, includes the costs	254
of research and development of eligible innovation projects;	255
obtaining or creating any requisite software or computer hardware	256
related to an eligible innovation project or the products or	257
services associated therewith; testing (including, without	258
limitation, quality control activities necessary for initial	259
production), perfecting, and marketing of such products and	260
services; creating and protecting intellectual property related to	261
an eligible innovation project or any products or services related	262
thereto, including costs of securing appropriate patent,	263
trademark, trade secret, trade dress, copyright, or other form of	264
intellectual property protection for an eligible innovation	265
project or related products and services; all to the extent that	266
such expenditures could be capitalized under then-applicable	267
generally accepted accounting principles; and the reimbursement of	268
moneys advanced or applied by any governmental agency or other	269
person for allowable innovation costs.	270

(C) "Eligible innovation project" includes an eligible	271
project, including any project facilities associated with an	272
eligible innovation project and, in addition, includes all	273
tangible and intangible property related to a new product or	274
process based on new technology or the creative application of	275
existing technology, including research and development, product	276
or process testing, quality control, market research, and related	277
activities, that is to be acquired, established, expanded,	278
remodeled, rehabilitated, or modernized for industry, commerce,	279
distribution, or research, or any combination thereof, the	280
operation of which, alone or in conjunction with other eligible	281
projects, eligible innovation projects, or innovation property,	282
will create new jobs or preserve existing jobs and employment	283
opportunities and improve the economic welfare of the people of	284
the state.	285

(D) "Eligible project" means project facilities to be	286
acquired, established, expanded, remodeled, rehabilitated, or	287
modernized for industry, commerce, distribution, or research, or	288
any combination thereof, the operation of which, alone or in	289
conjunction with other facilities, will create new jobs or	290
preserve existing jobs and employment opportunities and improve	291
the economic welfare of the people of the state. "Eligible	292
project" includes, without limitation, a voluntary action. For	293
purposes of this division, "new jobs" does not include existing	294
jobs transferred from another facility within the state, and	295
"existing jobs" includes only those existing jobs with work places	296
within the municipal corporation or unincorporated area of the	297
county in which the eligible project is located.	298

"Eligible project" does not include project facilities to be	299
acquired, established, expanded, remodeled, rehabilitated, or	300
modernized for industry, commerce, distribution, or research, or	301
any combination of industry, commerce, distribution, or research,	302
if the project facilities consist solely of	303
point-of-final-purchase retail facilities. If the project	304
facilities consist of both point-of-final-purchase retail	305
facilities and nonretail facilities, only the portion of the	306
project facilities consisting of nonretail facilities is an	307
eligible project. If a warehouse facility is part of a	308
point-of-final-purchase retail facility and supplies only that	309
facility, the warehouse facility is not an eligible project.	310
Catalog distribution facilities are not considered	311
point-of-final-purchase retail facilities for purposes of this	312
paragraph, and are eligible projects.	313

(E) "Eligible research and development project" means an	314
eligible project, including project facilities, comprising,	315
within, or related to, a facility or portion of a facility at	316
which research is undertaken for the purpose of discovering	317
information that is technological in nature and the application of	318
which is intended to be useful in the development of a new or	319
improved product, process, technique, formula, or invention, a new	320
product or process based on new technology, or the creative	321
application of existing technology.	322

(F) "Financial assistance" means inducements under division	323
(B) of section 166.02 of the Revised Code, loan guarantees under	324
section 166.06 of the Revised Code, and direct loans under section	325
166.07 of the Revised Code.	326

(G) "Governmental action" means any action by a governmental	327
agency relating to the establishment, development, or operation of	328
an eligible project, eligible innovation project, or eligible	329
research and development project, eligible advanced energy	330
project, or eligible logistics and distribution project, and	331
project facilities that the governmental agency acting has	332
authority to take or provide for the purpose under law,	333
including, but not limited to, actions relating to contracts and	334
agreements, zoning, building, permits, acquisition and disposition	335
of property, public capital improvements, utility and	336
transportation service, taxation, employee recruitment and	337
training, and liaison and coordination with and among governmental	338
agencies.	339

(H) "Governmental agency" means the state and any state	340
department, division, commission, institution or authority; a	341
municipal corporation, county, or township, and any agency	342
thereof, and any other political subdivision or public corporation	343
or the United States or any agency thereof; any agency,	344
commission, or authority established pursuant to an interstate	345
compact or agreement; and any combination of the above.	346

(I) "Innovation financial assistance" means inducements under	347
division (B) of section 166.12 of the Revised Code, innovation	348
Ohio loan guarantees under section 166.15 of the Revised Code, and	349
innovation Ohio loans under section 166.16 of the Revised Code.	350

(J) "Innovation Ohio loan guarantee reserve requirement"	351
means, at any time, with respect to innovation loan guarantees	352
made under section 166.15 of the Revised Code, a balance in the	353
innovation Ohio loan guarantee fund equal to the greater of twenty	354
per cent of the then-outstanding principal amount of all	355
outstanding innovation loan guarantees made pursuant to section	356
166.15 of the Revised Code or fifty per cent of the principal	357
amount of the largest outstanding guarantee made pursuant to	358
section 166.15 of the Revised Code.	359

(K) "Innovation property" includes property and also includes	360
software, inventory, licenses, contract rights, goodwill,	361
intellectual property, including without limitation, patents,	362
patent applications, trademarks and service marks, and trade	363
secrets, and other tangible and intangible property, and any	364
rights and interests in or connected to the foregoing.	365

(L) "Loan guarantee reserve requirement" means, at any time,	366
with respect to loan guarantees made under section 166.06 of the	367
Revised Code, a balance in the loan guarantee fund equal to the	368
greater of twenty per cent of the then-outstanding principal	369
amount of all outstanding guarantees made pursuant to section	370
166.06 of the Revised Code or fifty per cent of the principal	371
amount of the largest outstanding guarantee made pursuant to	372
section 166.06 of the Revised Code.	373

(M) "Person" means any individual, firm, partnership,	374
association, corporation, or governmental agency, and any	375
combination thereof.	376

(N) "Project facilities" means buildings, structures, and	377
other improvements, and equipment and other property, excluding	378
small tools, supplies, and inventory, and any one, part of, or	379
combination of the above, comprising all or part of, or serving or	380
being incidental to, an eligible project, an eligible innovation	381
project, or an eligible research and development project, an	382
eligible advanced energy project, or an eligible logistics and	383
distribution project, including, but not limited to, public	384
capital improvements.	385

(O) "Property" means real and personal property and interests	386
therein.	387

(P) "Public capital improvements" means capital improvements	388
or facilities that any governmental agency has authority to	389
acquire, pay the costs of, own, maintain, or operate, or to	390
contract with other persons to have the same done, including, but	391
not limited to, highways, roads, streets, water and sewer	392
facilities, railroad and other transportation facilities, and air	393
and water pollution control and solid waste disposal facilities.	394
For purposes of this division, "air pollution control facilities"	395
includes, without limitation, solar, geothermal, biofuel, biomass,	396
wind, hydro, wave, and other advanced energy projects as defined	397
in section 3706.25 of the Revised Code.	398

(Q) "Research and development financial assistance" means	399
inducements under section 166.17 of the Revised Code, research and	400
development loans under section 166.21 of the Revised Code, and	401
research and development tax credits under sections 5733.352 and	402
5747.331 of the Revised Code.	403

(R) "Targeted innovation industry sectors" means industry	404
sectors involving the production or use of advanced materials,	405
instruments, controls and electronics, power and propulsion,	406
biosciences, and information technology, or such other sectors as	407
may be designated by the director of development.	408

(S) "Voluntary action" means a voluntary action, as defined	409
in section 3746.01 of the Revised Code, that is conducted under	410
the voluntary action program established in Chapter 3746. of the	411
Revised Code.	412

(T) "Project financing obligations" means obligations issued	413
pursuant to section 166.08 of the Revised Code other than	414
obligations for which the bond proceedings provide that bond	415
service charges shall be paid from receipts of the state	416
representing gross profit on the sale of spirituous liquor as	417
referred to in division (B)(4) of section 4310.10 of the Revised	418
Code.	419

(U) "Regional economic development entity" means an entity	420
that is under contract with the director of development to	421
administer a loan program under this chapter in a particular area	422
of this state.	423

(V) "Advanced energy research and development fund" means the	424
advanced energy research and development fund created in section	425
3706.27 of the Revised Code.	426

(W) "Advanced energy research and development taxable fund"	427
means the advanced energy research and development taxable fund	428
created in section 3706.27 of the Revised Code.	429

(X) "Eligible advanced energy project" means an eligible	430
project that is an "advanced energy project" as defined in section	431
3706.25 of the Revised Code.	432

(Y) "Eligible logistics and distribution project" means an	433
eligible project, including project facilities, to be acquired,	434
established, expanded, remodeled, rehabilitated, or modernized for	435
transportation logistics and distribution infrastructure purposes.	436
As used in this division, "transportation logistics and	437
distribution infrastructure purposes" means promoting, providing	438
for, and enabling improvements to the ground, air, and water	439
transportation infrastructure comprising the transportation system	440
in this state, including, without limitation, highways, streets,	441
roads, bridges, railroads carrying freight, and air and water	442
ports and port facilities, and all related supporting facilities.	443

Sec. 166.02.  (A) The general assembly finds that many local	444
areas throughout the state are experiencing economic stagnation or	445
decline, and that the economic development programprograms	446
provided for in sections 166.01 to 166.11 of the Revised Code	447
this chapter will constitute a deserved, necessary reinvestment	448
by the state in those areas, materially contribute to their	449
economic revitalization, and result in improving the economic	450
welfare of all the people of the state. Accordingly, it is	451
declared to be the public policy of the state, through the	452
operations under sections 166.01 to 166.11 of the Revised Code	453
this chapter and other applicable laws adopted pursuant to Section	454
2p or 13 of Article VIII, Ohio Constitution, and other authority	455
vested in the general assembly, to assist in and facilitate the	456
establishment or development of eligible projects or assist and	457
cooperate with any governmental agency in achieving such purpose.	458

(B) In furtherance of such public policy and to implement	459
such purpose, the director of development may:	460

(1) After consultation with appropriate governmental	461
agencies, enter into agreements with persons engaged in industry,	462
commerce, distribution, or research and with governmental agencies	463
to induce such persons to acquire, construct, reconstruct,	464
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	465
otherwise develop, eligible projects and make provision therein	466
for project facilities and governmental actions, as authorized by	467
this chapter and other applicable laws, subject to any required	468
actions by the general assembly or the controlling board and	469
subject to applicable local government laws and regulations;	470

(2) Provide for the guarantees and loans as provided for in	471
sections 166.06 and 166.07 of the Revised Code;	472

(3) Subject to release of such moneys by the controlling	473
board, contract for labor and materials needed for, or contract	474
with others, including governmental agencies, to provide, project	475
facilities the allowable costs of which are to be paid for or	476
reimbursed from moneys in the facilities establishment fund, and	477
contract for the operation of such project facilities;	478

(4) Subject to release thereof by the controlling board, from	479
moneys in the facilities establishment fund acquire or contract to	480
acquire by gift, exchange, or purchase, including the obtaining	481
and exercise of purchase options, property, and convey or	482
otherwise dispose of, or provide for the conveyance or disposition	483
of, property so acquired or contracted to be acquired by sale,	484
exchange, lease, lease purchase, conditional or installment sale,	485
transfer, or other disposition, including the grant of an option	486
to purchase, to any governmental agency or to any other person	487
without necessity for competitive bidding and upon such terms and	488
conditions and manner of consideration pursuant to and as the	489
director determines to be appropriate to satisfy the objectives of	490
sections 166.01 to 166.11 of the Revised Code;	491

(5) Retain the services of or employ financial consultants,	492
appraisers, consulting engineers, superintendents, managers,	493
construction and accounting experts, attorneys, and employees,	494
agents, and independent contractors as are necessary in the	495
director's judgment and fix the compensation for their services;	496

(6) Receive and accept from any person grants, gifts, and	497
contributions of money, property, labor, and other things of	498
value, to be held, used and applied only for the purpose for which	499
such grants, gifts, and contributions are made;	500

(7) Enter into appropriate arrangements and agreements with	501
any governmental agency for the taking or provision by that	502
governmental agency of any governmental action;	503

(8) Do all other acts and enter into contracts and execute	504
all instruments necessary or appropriate to carry out the	505
provisions of Chapter 166. of the Revised Codethis chapter;	506

(9) Adopt rules to implement any of the provisions of Chapter	507
166. of the Revised Codethis chapter applicable to the director.	508

(C) The determinations by the director that facilities	509
constitute eligible projects, that facilities are project	510
facilities, that costs of such facilities are allowable costs, and	511
all other determinations relevant thereto or to an action taken or	512
agreement entered into shall be conclusive for purposes of the	513
validity and enforceability of rights of parties arising from	514
actions taken and agreements entered into under this chapter.	515

(D) Except as otherwise prescribed in Chapter 166. of the	516
Revised Codethis chapter, all expenses and obligations incurred	517
by the director in carrying out the director's powers and in	518
exercising the director's duties under Chapter 166. of the Revised	519
Codethis chapter, shall be payable solely from, as appropriate,	520
moneys in the facilities establishment fund, the loan guarantee	521
fund, the innovation Ohio loan guarantee fund, the innovation Ohio	522
loan fund, the research and development loan fund, the logistics	523
and distribution infrastructure fund, or moneys appropriated for	524
such purpose by the general assembly. Chapter 166. of the Revised	525
CodeThis chapter does not authorize the director or the issuing	526
authority under section 166.08 of the Revised Code to incur bonded	527
indebtedness of the state or any political subdivision thereof, or	528
to obligate or pledge moneys raised by taxation for the payment of	529
any bonds or notes issued or guarantees made pursuant to Chapter	530
166. of the Revised Codethis chapter.	531

(E) No financial assistance for project facilities shall be	532
provided under this chapter unless the provisions of the agreement	533
providing for such assistance specify that all wages paid to	534
laborers and mechanics employed on such project facilities for	535
which the assistance is granted shall be paid at the prevailing	536
rates of wages of laborers and mechanics for the class of work	537
called for by such project facilities, which wages shall be	538
determined in accordance with the requirements of Chapter 4115. of	539
the Revised Code for determination of prevailing wage rates,	540
provided that the requirements of this division do not apply where	541
the federal government or any of its agencies provides financing	542
assistance as to all or any part of the funds used in connection	543
with such project facilities and prescribes predetermined minimum	544
wages to be paid to such laborers and mechanics; and provided	545
further that should a nonpublic user beneficiary of the eligible	546
project undertake, as part of the eligible project, construction	547
to be performed by its regular bargaining unit employees who are	548
covered under a collective bargaining agreement which was in	549
existence prior to the date of the document authorizing such	550
assistance then, in that event, the rate of pay provided under the	551
collective bargaining agreement may be paid to such employees.	552

(F) Any governmental agency may enter into an agreement with	553
the director, any other governmental agency, or a person to be	554
assisted under this chapter, to take or provide for the purposes	555
of this chapter any governmental action it is authorized to take	556
or provide, and to undertake on behalf and at the request of the	557
director any action which the director is authorized to undertake	558
pursuant to divisions (B)(3), (4), and (5) of this section or	559
divisions (B)(3), (4), and (5) of section 166.12 of the Revised	560
Code. Governmental agencies of the state shall cooperate with and	561
provide assistance to the director of development and the	562
controlling board in the exercise of their respective functions	563
under this chapter.	564

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

565

(1) "Bond proceedings" means the resolution, order, trust	566
agreement, indenture, lease, and other agreements, amendments and	567
supplements to the foregoing, or any one or more or combination	568
thereof, authorizing or providing for the terms and conditions	569
applicable to, or providing for the security or liquidity of,	570
obligations issued pursuant to this section, and the provisions	571
contained in such obligations.	572

(2) "Bond service charges" means principal, including	573
mandatory sinking fund requirements for retirement of obligations,	574
and interest, and redemption premium, if any, required to be paid	575
by the state on obligations.	576

(3) "Bond service fund" means the applicable fund and	577
accounts therein created for and pledged to the payment of bond	578
service charges, which may be, or may be part of, the economic	579
development bond service fund created by division (S) of this	580
section including all moneys and investments, and earnings from	581
investments, credited and to be credited thereto.	582

(4) "Issuing authority" means the treasurer of state, or the	583
officer who by law performs the functions of such officer.	584

(5) "Obligations" means bonds, notes, or other evidence of	585
obligation including interest coupons pertaining thereto, issued	586
pursuant to this section.	587

(6) "Pledged receipts" means all receipts of the state	588
representing the gross profit on the sale of spirituous liquor, as	589
referred to in division (B)(4) of section 4301.10 of the Revised	590
Code, after paying all costs and expenses of the division of	591
liquor control and providing an adequate working capital reserve	592
for the division of liquor control as provided in that division,	593
but excluding the sum required by the second paragraph of section	594
4301.12 of the Revised Code, as in effect on May 2, 1980, to be	595
paid into the state treasury; moneys accruing to the state from	596
the lease, sale, or other disposition, or use, of project	597
facilities, and from the repayment, including interest, of loans	598
made from proceeds received from the sale of obligations; accrued	599
interest received from the sale of obligations; income from the	600
investment of the special funds; and any gifts, grants, donations,	601
and pledges, and receipts therefrom, available for the payment of	602
bond service charges.	603

(7) "Special funds" or "funds" means, except where the	604
context does not permit, the bond service fund, and any other	605
funds, including reserve funds, created under the bond	606
proceedings, and the economic development bond service fund	607
created by division (S) of this section to the extent provided in	608
the bond proceedings, including all moneys and investments, and	609
earnings from investment, credited and to be credited thereto.	610

(B) Subject to the limitations provided in section 166.11 of	611
the Revised Code, the issuing authority, upon the certification by	612
the director of development or, with respect to eligible advanced	613
energy projects, the Ohio air quality development authority to the	614
issuing authority of the amount of moneys or additional moneys	615
needed in the facilities establishment fund, the loan guarantee	616
fund, the innovation Ohio loan fund, the innovation Ohio loan	617
guarantee fund, or the research and development loan fund, the	618
logistics and distribution infrastructure fund, the advanced	619
energy research and development fund, or the advanced energy	620
research and development taxable fund, as applicable, for the	621
purpose of paying, or making loans for, allowable costs from the	622
facilities establishment fund, allowable innovation costs from	623
the innovation Ohio loan fund, or allowable costs from the	624
research and development loan fund, allowable costs from the	625
logistics and distribution infrastructure fund, allowable costs	626
from the advanced energy research and development fund, or	627
allowable costs from the advanced energy research and development	628
taxable fund, as applicable, or needed for capitalized interest,	629
for funding reserves, and for paying costs and expenses incurred	630
in connection with the issuance, carrying, securing, paying,	631
redeeming, or retirement of the obligations or any obligations	632
refunded thereby, including payment of costs and expenses relating	633
to letters of credit, lines of credit, insurance, put agreements,	634
standby purchase agreements, indexing, marketing, remarketing and	635
administrative arrangements, interest swap or hedging agreements,	636
and any other credit enhancement, liquidity, remarketing, renewal,	637
or refunding arrangements, all of which are authorized by this	638
section, or providing moneys for the loan guarantee fund or the	639
innovation Ohio loan guarantee fund, as provided in this chapter	640
or needed for the purposes of funds established in accordance with	641
or pursuant to sections 122.35, 122.42, 122.54, 122.55, 122.56,	642
122.561, 122.57, and 122.80 of the Revised Code which are within	643
the authorization of Section 13 of Article VIII, Ohio	644
Constitution, or, with respect to certain eligible advanced energy	645
projects, Section 2p of Article VIII, Ohio Constitution, shall	646
issue obligations of the state under this section in the required	647
amount; provided that such obligations may be issued to satisfy	648
the covenants in contracts of guarantee made under section 166.06	649
or 166.15 of the Revised Code, notwithstanding limitations	650
otherwise applicable to the issuance of obligations under this	651
section. The proceeds of such obligations, except for the portion	652
to be deposited in special funds, including reserve funds, as may	653
be provided in the bond proceedings, shall as provided in the bond	654
proceedings be deposited by the director of development to the	655
facilities establishment fund, the loan guarantee fund, the	656
innovation Ohio loan guarantee fund, the innovation Ohio loan	657
fund, or the research and development loan fund, or the logistics	658
and distribution infrastructure fund, or be deposited by the Ohio	659
air quality development authority to the advanced energy research	660
and development fund or the advanced energy research and	661
development taxable fund. Bond proceedings for project financing	662
obligations may provide that the proceeds derived from the	663
issuance of such obligations shall be deposited into such fund or	664
funds provided for in the bond proceedings and, to the extent	665
provided for in the bond proceedings, such proceeds shall be	666
deemed to have been deposited into the facilities establishment	667
fund and transferred to such fund or funds. The issuing authority	668
may appoint trustees, paying agents, and transfer agents and may	669
retain the services of financial advisors, accounting experts, and	670
attorneys, and retain or contract for the services of marketing,	671
remarketing, indexing, and administrative agents, other	672
consultants, and independent contractors, including printing	673
services, as are necessary in the issuing authority's judgment to	674
carry out this section. The costs of such services are allowable	675
costs payable from the facilities establishment fund or the	676
research and development loan fund or, allowable innovation costs	677
payable from the innovation Ohio loan fund, or allowable costs	678
payable from the logistics and distribution infrastructure fund,	679
the advanced energy research and development fund, or the advanced	680
energy research and development taxable fund, as applicable.	681

(C) The holders or owners of such obligations shall have no	682
right to have moneys raised by taxation obligated or pledged, and	683
moneys raised by taxation shall not be obligated or pledged, for	684
the payment of bond service charges. Such holders or owners shall	685
have no rights to payment of bond service charges from any moneys	686
accruing to the state from the lease, sale, or other disposition,	687
or use, of project facilities, or from payment of the principal of	688
or interest on loans made, or fees charged for guarantees made, or	689
from any money or property received by the director, treasurer of	690
state, or the state under Chapter 122. of the Revised Code, or	691
from any other use of the proceeds of the sale of the obligations,	692
and no such moneys may be used for the payment of bond service	693
charges, except for accrued interest, capitalized interest, and	694
reserves funded from proceeds received upon the sale of the	695
obligations and except as otherwise expressly provided in the	696
applicable bond proceedings pursuant to written directions by the	697
director. The right of such holders and owners to payment of bond	698
service charges is limited to all or that portion of the pledged	699
receipts and those special funds pledged thereto pursuant to the	700
bond proceedings in accordance with this section, and each such	701
obligation shall bear on its face a statement to that effect.	702

(D) Obligations shall be authorized by resolution or order of	703
the issuing authority and the bond proceedings shall provide for	704
the purpose thereof and the principal amount or amounts, and shall	705
provide for or authorize the manner or agency for determining the	706
principal maturity or maturities, not exceeding twenty-five years	707
from the date of issuance, the interest rate or rates or the	708
maximum interest rate, the date of the obligations and the dates	709
of payment of interest thereon, their denomination, and the	710
establishment within or without the state of a place or places of	711
payment of bond service charges. Sections 9.98 to 9.983 of the	712
Revised Code are applicable to obligations issued under this	713
section, subject to any applicable limitation under section 166.11	714
of the Revised Code. The purpose of such obligations may be stated	715
in the bond proceedings in terms describing the general purpose or	716
purposes to be served. The bond proceedings also shall provide,	717
subject to the provisions of any other applicable bond	718
proceedings, for the pledge of all, or such part as the issuing	719
authority may determine, of the pledged receipts and the	720
applicable special fund or funds to the payment of bond service	721
charges, which pledges may be made either prior or subordinate to	722
other expenses, claims, or payments, and may be made to secure the	723
obligations on a parity with obligations theretofore or thereafter	724
issued, if and to the extent provided in the bond proceedings. The	725
pledged receipts and special funds so pledged and thereafter	726
received by the state are immediately subject to the lien of such	727
pledge without any physical delivery thereof or further act, and	728
the lien of any such pledges is valid and binding against all	729
parties having claims of any kind against the state or any	730
governmental agency of the state, irrespective of whether such	731
parties have notice thereof, and shall create a perfected security	732
interest for all purposes of Chapter 1309. of the Revised Code,	733
without the necessity for separation or delivery of funds or for	734
the filing or recording of the bond proceedings by which such	735
pledge is created or any certificate, statement or other document	736
with respect thereto; and the pledge of such pledged receipts and	737
special funds is effective and the money therefrom and thereof may	738
be applied to the purposes for which pledged without necessity for	739
any act of appropriation. Every pledge, and every covenant and	740
agreement made with respect thereto, made in the bond proceedings	741
may therein be extended to the benefit of the owners and holders	742
of obligations authorized by this section, and to any trustee	743
therefor, for the further security of the payment of the bond	744
service charges.	745

(E) The bond proceedings may contain additional provisions as	746
to:	747

(1) The redemption of obligations prior to maturity at the	748
option of the issuing authority at such price or prices and under	749
such terms and conditions as are provided in the bond proceedings;	750

(2) Other terms of the obligations;

751

(3) Limitations on the issuance of additional obligations;

752

(4) The terms of any trust agreement or indenture securing	753
the obligations or under which the same may be issued;	754

(5) The deposit, investment and application of special funds,	755
and the safeguarding of moneys on hand or on deposit, without	756
regard to Chapter 131. or 135. of the Revised Code, but subject to	757
any special provisions of this chapter, with respect to particular	758
funds or moneys, provided that any bank or trust company which	759
acts as depository of any moneys in the special funds may furnish	760
such indemnifying bonds or may pledge such securities as required	761
by the issuing authority;	762

(6) Any or every provision of the bond proceedings being	763
binding upon such officer, board, commission, authority, agency,	764
department, or other person or body as may from time to time have	765
the authority under law to take such actions as may be necessary	766
to perform all or any part of the duty required by such provision;	767

(7) Any provision that may be made in a trust agreement or	768
indenture;	769

(8) Any other or additional agreements with the holders of	770
the obligations, or the trustee therefor, relating to the	771
obligations or the security therefor, including the assignment of	772
mortgages or other security obtained or to be obtained for loans	773
under section 122.43, 166.07, or 166.16 of the Revised Code.	774

(F) The obligations may have the great seal of the state or a	775
facsimile thereof affixed thereto or printed thereon. The	776
obligations and any coupons pertaining to obligations shall be	777
signed or bear the facsimile signature of the issuing authority.	778
Any obligations or coupons may be executed by the person who, on	779
the date of execution, is the proper issuing authority although on	780
the date of such bonds or coupons such person was not the issuing	781
authority. If the issuing authority whose signature or a facsimile	782
of whose signature appears on any such obligation or coupon ceases	783
to be the issuing authority before delivery thereof, such	784
signature or facsimile is nevertheless valid and sufficient for	785
all purposes as if the former issuing authority had remained the	786
issuing authority until such delivery; and if the seal to be	787
affixed to obligations has been changed after a facsimile of the	788
seal has been imprinted on such obligations, such facsimile seal	789
shall continue to be sufficient as to such obligations and	790
obligations issued in substitution or exchange therefor.	791

(G) All obligations are negotiable instruments and securities	792
under Chapter 1308. of the Revised Code, subject to the provisions	793
of the bond proceedings as to registration. The obligations may be	794
issued in coupon or in registered form, or both, as the issuing	795
authority determines. Provision may be made for the registration	796
of any obligations with coupons attached thereto as to principal	797
alone or as to both principal and interest, their exchange for	798
obligations so registered, and for the conversion or reconversion	799
into obligations with coupons attached thereto of any obligations	800
registered as to both principal and interest, and for reasonable	801
charges for such registration, exchange, conversion, and	802
reconversion.	803

(H) Obligations may be sold at public sale or at private	804
sale, as determined in the bond proceedings.	805

Obligations issued to provide moneys for the loan guarantee	806
fund or the innovation Ohio loan guarantee fund may, as determined	807
by the issuing authority, be sold at private sale, and without	808
publication of a notice of sale.	809

(I) Pending preparation of definitive obligations, the	810
issuing authority may issue interim receipts or certificates which	811
shall be exchanged for such definitive obligations.	812

(J) In the discretion of the issuing authority, obligations	813
may be secured additionally by a trust agreement or indenture	814
between the issuing authority and a corporate trustee which may be	815
any trust company or bank having a place of business within the	816
state. Any such agreement or indenture may contain the resolution	817
or order authorizing the issuance of the obligations, any	818
provisions that may be contained in any bond proceedings, and	819
other provisions which are customary or appropriate in an	820
agreement or indenture of such type, including, but not limited	821
to:	822

(1) Maintenance of each pledge, trust agreement, indenture,	823
or other instrument comprising part of the bond proceedings until	824
the state has fully paid the bond service charges on the	825
obligations secured thereby, or provision therefor has been made;	826

(2) In the event of default in any payments required to be	827
made by the bond proceedings, or any other agreement of the	828
issuing authority made as a part of the contract under which the	829
obligations were issued, enforcement of such payments or agreement	830
by mandamus, the appointment of a receiver, suit in equity, action	831
at law, or any combination of the foregoing;	832

(3) The rights and remedies of the holders of obligations and	833
of the trustee, and provisions for protecting and enforcing them,	834
including limitations on rights of individual holders of	835
obligations;	836

(4) The replacement of any obligations that become mutilated	837
or are destroyed, lost, or stolen;	838

(5) Such other provisions as the trustee and the issuing	839
authority agree upon, including limitations, conditions, or	840
qualifications relating to any of the foregoing.	841

(K) Any holders of obligations or trustees under the bond	842
proceedings, except to the extent that their rights are restricted	843
by the bond proceedings, may by any suitable form of legal	844
proceedings, protect and enforce any rights under the laws of this	845
state or granted by such bond proceedings. Such rights include the	846
right to compel the performance of all duties of the issuing	847
authority, the director of development, the Ohio air quality	848
development authority, or the division of liquor control required	849
by this chapter or the bond proceedings; to enjoin unlawful	850
activities; and in the event of default with respect to the	851
payment of any bond service charges on any obligations or in the	852
performance of any covenant or agreement on the part of the	853
issuing authority, the director of development, the Ohio air	854
quality development authority, or the division of liquor control	855
in the bond proceedings, to apply to a court having jurisdiction	856
of the cause to appoint a receiver to receive and administer the	857
pledged receipts and special funds, other than those in the	858
custody of the treasurer of state, which are pledged to the	859
payment of the bond service charges on such obligations or which	860
are the subject of the covenant or agreement, with full power to	861
pay, and to provide for payment of bond service charges on, such	862
obligations, and with such powers, subject to the direction of the	863
court, as are accorded receivers in general equity cases,	864
excluding any power to pledge additional revenues or receipts or	865
other income or moneys of the issuing authority or the state or	866
governmental agencies of the state to the payment of such	867
principal and interest and excluding the power to take possession	868
of, mortgage, or cause the sale or otherwise dispose of any	869
project facilities.	870

Each duty of the issuing authority and the issuing	871
authority's officers and employees, and of each governmental	872
agency and its officers, members, or employees, undertaken	873
pursuant to the bond proceedings or any agreement or lease,	874
lease-purchase agreement, or loan made under authority of this	875
chapter, and in every agreement by or with the issuing authority,	876
is hereby established as a duty of the issuing authority, and of	877
each such officer, member, or employee having authority to perform	878
such duty, specifically enjoined by the law resulting from an	879
office, trust, or station within the meaning of section 2731.01 of	880
the Revised Code.	881

The person who is at the time the issuing authority, or the	882
issuing authority's officers or employees, are not liable in their	883
personal capacities on any obligations issued by the issuing	884
authority or any agreements of or with the issuing authority.	885

(L) The issuing authority may authorize and issue obligations	886
for the refunding, including funding and retirement, and advance	887
refunding with or without payment or redemption prior to maturity,	888
of any obligations previously issued by the issuing authority.	889
Such obligations may be issued in amounts sufficient for payment	890
of the principal amount of the prior obligations, any redemption	891
premiums thereon, principal maturities of any such obligations	892
maturing prior to the redemption of the remaining obligations on a	893
parity therewith, interest accrued or to accrue to the maturity	894
dates or dates of redemption of such obligations, and any	895
allowable costs including expenses incurred or to be incurred in	896
connection with such issuance and such refunding, funding, and	897
retirement. Subject to the bond proceedings therefor, the portion	898
of proceeds of the sale of obligations issued under this division	899
to be applied to bond service charges on the prior obligations	900
shall be credited to an appropriate account held by the trustee	901
for such prior or new obligations or to the appropriate account in	902
the bond service fund for such obligations. Obligations authorized	903
under this division shall be deemed to be issued for those	904
purposes for which such prior obligations were issued and are	905
subject to the provisions of this section pertaining to other	906
obligations, except as otherwise provided in this section;	907
provided that, unless otherwise authorized by the general	908
assembly, any limitations imposed by the general assembly pursuant	909
to this section with respect to bond service charges applicable to	910
the prior obligations shall be applicable to the obligations	911
issued under this division to refund, fund, advance refund or	912
retire such prior obligations.	913

(M) The authority to issue obligations under this section	914
includes authority to issue obligations in the form of bond	915
anticipation notes and to renew the same from time to time by the	916
issuance of new notes. The holders of such notes or interest	917
coupons pertaining thereto shall have a right to be paid solely	918
from the pledged receipts and special funds that may be pledged to	919
the payment of the bonds anticipated, or from the proceeds of such	920
bonds or renewal notes, or both, as the issuing authority provides	921
in the resolution or order authorizing such notes. Such notes may	922
be additionally secured by covenants of the issuing authority to	923
the effect that the issuing authority and the state will do such	924
or all things necessary for the issuance of such bonds or renewal	925
notes in appropriate amount, and apply the proceeds thereof to the	926
extent necessary, to make full payment of the principal of and	927
interest on such notes at the time or times contemplated, as	928
provided in such resolution or order. For such purpose, the	929
issuing authority may issue bonds or renewal notes in such	930
principal amount and upon such terms as may be necessary to	931
provide funds to pay when required the principal of and interest	932
on such notes, notwithstanding any limitations prescribed by or	933
for purposes of this section. Subject to this division, all	934
provisions for and references to obligations in this section are	935
applicable to notes authorized under this division.	936

The issuing authority in the bond proceedings authorizing the	937
issuance of bond anticipation notes shall set forth for such bonds	938
an estimated interest rate and a schedule of principal payments	939
for such bonds and the annual maturity dates thereof, and for	940
purposes of any limitation on bond service charges prescribed	941
under division (A) of section 166.11 of the Revised Code, the	942
amount of bond service charges on such bond anticipation notes is	943
deemed to be the bond service charges for the bonds anticipated	944
thereby as set forth in the bond proceedings applicable to such	945
notes, but this provision does not modify any authority in this	946
section to pledge receipts and special funds to, and covenant to	947
issue bonds to fund, the payment of principal of and interest and	948
any premium on such notes.	949

(N) Obligations issued under this section are lawful	950
investments for banks, societies for savings, savings and loan	951
associations, deposit guarantee associations, trust companies,	952
trustees, fiduciaries, insurance companies, including domestic for	953
life and domestic not for life, trustees or other officers having	954
charge of sinking and bond retirement or other special funds of	955
political subdivisions and taxing districts of this state, the	956
commissioners of the sinking fund of the state, the administrator	957
of workers' compensation, the state teachers retirement system,	958
the public employees retirement system, the school employees	959
retirement system, and the Ohio police and fire pension fund,	960
notwithstanding any other provisions of the Revised Code or rules	961
adopted pursuant thereto by any governmental agency of the state	962
with respect to investments by them, and are also acceptable as	963
security for the deposit of public moneys.	964

(O) Unless otherwise provided in any applicable bond	965
proceedings, moneys to the credit of or in the special funds	966
established by or pursuant to this section may be invested by or	967
on behalf of the issuing authority only in notes, bonds, or other	968
obligations of the United States, or of any agency or	969
instrumentality of the United States, obligations guaranteed as to	970
principal and interest by the United States, obligations of this	971
state or any political subdivision of this state, and certificates	972
of deposit of any national bank located in this state and any	973
bank, as defined in section 1101.01 of the Revised Code, subject	974
to inspection by the superintendent of banks. If the law or the	975
instrument creating a trust pursuant to division (J) of this	976
section expressly permits investment in direct obligations of the	977
United States or an agency of the United States, unless expressly	978
prohibited by the instrument, such moneys also may be invested in	979
no-front-end-load money market mutual funds consisting exclusively	980
of obligations of the United States or an agency of the United	981
States and in repurchase agreements, including those issued by the	982
fiduciary itself, secured by obligations of the United States or	983
an agency of the United States; and in common trust funds	984
established in accordance with section 1111.20 of the Revised Code	985
and consisting exclusively of any such securities, notwithstanding	986
division (A)(4) of that section. The income from such investments	987
shall be credited to such funds as the issuing authority	988
determines, and such investments may be sold at such times as the	989
issuing authority determines or authorizes.	990

(P) Provision may be made in the applicable bond proceedings	991
for the establishment of separate accounts in the bond service	992
fund and for the application of such accounts only to the	993
specified bond service charges on obligations pertinent to such	994
accounts and bond service fund and for other accounts therein	995
within the general purposes of such fund. Unless otherwise	996
provided in any applicable bond proceedings, moneys to the credit	997
of or in the several special funds established pursuant to this	998
section shall be disbursed on the order of the treasurer of state,	999
provided that no such order is required for the payment from the	1000
bond service fund when due of bond service charges on obligations.	1001

(Q) The issuing authority may pledge all, or such portion as	1002
the issuing authority determines, of the pledged receipts to the	1003
payment of bond service charges on obligations issued under this	1004
section, and for the establishment and maintenance of any	1005
reserves, as provided in the bond proceedings, and make other	1006
provisions therein with respect to pledged receipts as authorized	1007
by this chapter, which provisions are controlling notwithstanding	1008
any other provisions of law pertaining thereto.	1009

(R) The issuing authority may covenant in the bond	1010
proceedings, and any such covenants are controlling	1011
notwithstanding any other provision of law, that the state and	1012
applicable officers and governmental agencies of the state,	1013
including the general assembly, so long as any obligations are	1014
outstanding, shall:	1015

(1) Maintain statutory authority for and cause to be charged	1016
and collected wholesale and retail prices for spirituous liquor	1017
sold by the state or its agents so that the pledged receipts are	1018
sufficient in amount to meet bond service charges, and the	1019
establishment and maintenance of any reserves and other	1020
requirements provided for in the bond proceedings, and, as	1021
necessary, to meet covenants contained in contracts of guarantee	1022
made under section 166.06 of the Revised Code;	1023

(2) Take or permit no action, by statute or otherwise, that	1024
would impair the exemption from federal income taxation of the	1025
interest on the obligations.	1026

(S) There is hereby created the economic development bond	1027
service fund, which shall be in the custody of the treasurer of	1028
state but shall be separate and apart from and not a part of the	1029
state treasury. All moneys received by or on account of the	1030
issuing authority or state agencies and required by the applicable	1031
bond proceedings, consistent with this section, to be deposited,	1032
transferred, or credited to a bond service fund or the economic	1033
development bond service fund, and all other moneys transferred or	1034
allocated to or received for the purposes of the fund, shall be	1035
deposited and credited to such fund and to any separate accounts	1036
therein, subject to applicable provisions of the bond proceedings,	1037
but without necessity for any act of appropriation. During the	1038
period beginning with the date of the first issuance of	1039
obligations and continuing during such time as any such	1040
obligations are outstanding, and so long as moneys in the	1041
pertinent bond service funds are insufficient to pay all bond	1042
services charges on such obligations becoming due in each year, a	1043
sufficient amount of the gross profit on the sale of spirituous	1044
liquor included in pledged receipts are committed and shall be	1045
paid to the bond service fund or economic development bond service	1046
fund in each year for the purpose of paying the bond service	1047
charges becoming due in that year without necessity for further	1048
act of appropriation for such purpose and notwithstanding anything	1049
to the contrary in Chapter 4301. of the Revised Code. The	1050
economic development bond service fund is a trust fund and is	1051
hereby pledged to the payment of bond service charges to the	1052
extent provided in the applicable bond proceedings, and payment	1053
thereof from such fund shall be made or provided for by the	1054
treasurer of state in accordance with such bond proceedings	1055
without necessity for any act of appropriation.	1056

(T) The obligations, the transfer thereof, and the income	1057
therefrom, including any profit made on the sale thereof, shall at	1058
all times be free from taxation within the state.	1059

Sec. 166.11.  (A) The aggregate principal amount of project	1060
financing obligations that may be issued under section 166.08 of	1061
the Revised Code is three hundred million dollars, plus the	1062
principal amount of such project financing obligations retired by	1063
payments. The aggregate principal amount of obligations, exclusive	1064
of project financing obligations, that may be issued under section	1065
166.08 of the Revised Code is fivesix hundred thirty million	1066
dollars, plus the principal amount of any such obligations	1067
retired by payment, the amounts held or obligations pledged for	1068
the payment of the principal amount of any such obligations	1069
outstanding, amounts in special funds held as reserves to meet	1070
bond service charges, and amounts of obligations issued to	1071
provide moneys required to meet payments from the loan guarantee	1072
fund created in section 166.06 of the Revised Code and the	1073
innovation Ohio loan guarantee fund created in section 166.15 of	1074
the Revised Code. Of that six hundred thirty million dollars, not	1075
more than eighty-four million principal amount of obligations may	1076
be issued for eligible advanced energy projects and not more than	1077
one hundred million principal amount of obligations may be issued	1078
for eligible logistics and distribution projects. The terms of the	1079
obligations issued under section 166.08 of the Revised Code, other	1080
than obligations issued to meet guarantees that cannot be	1081
satisfied from amounts then held in the loan guarantee fund or	1082
the innovation Ohio loan guarantee fund, shall be such that the	1083
aggregate amount of moneys used from profit from the sale of	1084
spirituous liquor, and not from other sources, in any fiscal	1085
year shall not exceed forty-fivesixty-three million dollars.	1086
For purposes of the preceding sentence, "other sources" include	1087
the annual investment income on special funds to the extent it	1088
will be available for payment of any bond service charges in lieu	1089
of use of profit from the sale of spirituous liquor, and shall be	1090
estimated on the basis of the expected funding of those special	1091
funds and assumed investment earnings thereon at a rate equal to	1092
the weighted average yield on investments of those special funds	1093
determined as of any date within sixty days immediately preceding	1094
the date of issuance of the bonds in respect of which the	1095
determination is being made. The determinations required by this	1096
division shall be made by the treasurer of state at the time of	1097
issuance of an issue of obligations and shall be conclusive for	1098
purposes of such issue of obligations from and after their	1099
issuance and delivery.	1100

(B) The aggregate amount of the guaranteed portion of the	1101
unpaid principal of loans guaranteed under sections 166.06 and	1102
166.15 of the Revised Code and the unpaid principal of loans made	1103
under sections 166.07 , 166.16, and 166.21 of the Revised Code may	1104
not at any time exceed eight hundred million dollars. Of that	1105
eight hundred million dollars, the aggregate amount of the	1106
guaranteed portion of the unpaid principal of loans guaranteed	1107
under sections 166.06 and 166.15 of the Revised Code shall not at	1108
any time exceed two hundred million dollars. However, the	1109
limitations established under this division do not apply to loans	1110
made with proceeds from the issuance and sale of project financing	1111
obligations.	1112

Sec. 166.25. (A) The director of development, with the	1113
approval of the controlling board and subject to the other	1114
applicable provisions of this chapter, may lend money in the	1115
logistics and distribution infrastructure fund to persons for the	1116
purpose of paying allowable costs of eligible logistics and	1117
distribution projects.	1118

(B) In determining the eligible logistics and distribution	1119
projects to be assisted and the nature, amount, and terms of	1120
assistance to be provided for an eligible logistics and	1121
distribution project, the director shall consult with appropriate	1122
governmental agencies, including the department of transportation	1123
and the Ohio rail development commission.	1124

(C)(1) The director shall submit to the development financing	1125
advisory council the terms of the proposed assistance to be	1126
provided for an eligible logistics and distribution project and	1127
such other relevant information as the council may request.	1128

(2) The council, on the basis of such information, shall make	1129
recommendations as to the appropriateness of the assistance to be	1130
provided. The recommendations may be revised to reflect any	1131
changes in the proposed assistance the director may submit to the	1132
council.	1133

(3) The director shall submit the terms of the proposed	1134
assistance to be provided, along with the recommendations, as	1135
amended, of the council as to the appropriateness of the proposed	1136
assistance, to the controlling board.	1137

Sec. 166.26. (A) There is hereby created in the state	1138
treasury the logistics and distribution infrastructure fund. The	1139
fund shall consist of grants, gifts, and contributions of money or	1140
rights to money lawfully designated for or deposited into the	1141
fund, all money and rights to money lawfully appropriated and	1142
transferred to the fund, including money received from the	1143
issuance of obligations under section 166.08 of the Revised Code	1144
and subject to section 166.11 of the Revised Code for purposes of	1145
allowable costs of eligible logistics and distribution projects,	1146
and money credited to the fund pursuant to division (B) of this	1147
section. All investment earnings on the cash balance in the fund	1148
shall be credited to the fund. The fund shall not be comprised,	1149
in any part, of money raised by taxation.	1150

(B) There shall be credited to the logistics and distribution	1151
infrastructure fund the money received by the state from the	1152
repayment of loans and recovery on loan guarantees, including	1153
interest thereon, made from the fund.	1154

Sec. 166.30. (A) The Ohio air quality development authority,	1155
with the approval of the controlling board and subject to sections	1156
3706.25 to 3706.29 of the Revised Code, may provide grants from	1157
money in the advanced energy research and development fund and may	1158
lend money in the advanced energy research and development taxable	1159
fund to persons for the purposes of paying allowable costs of	1160
eligible advanced energy projects.	1161

(B) In determining the eligible advanced energy projects to	1162
be assisted and the nature, amount, and terms of assistance to be	1163
provided for an eligible advanced energy project, the authority	1164
shall consult with appropriate governmental agencies.	1165

(C)(1) The authority shall submit to the development	1166
financing advisory council the terms of the proposed assistance to	1167
be provided for an eligible advanced energy project and such other	1168
relevant information as the council may request.	1169

(2) The council, on the basis of such information, shall make	1170
recommendations as to the appropriateness of the assistance to be	1171
provided. The recommendations may be revised to reflect any	1172
changes in the proposed assistance the authority may submit to the	1173
council.	1174

(3) The authority shall submit the terms of the proposed	1175
assistance to be provided, along with the recommendations, as	1176
amended, of the council as to the appropriateness of the proposed	1177
assistance, to the controlling board.	1178

Sec. 184.02.  (A) In addition to the powers and duties under	1179
sections 184.10 to 184.20 and 184.25 and 184.26 of the Revised	1180
Code, the third frontier commission may perform any act to ensure	1181
the performance of any function necessary or appropriate to carry	1182
out the purposes of, and exercise the powers granted under,	1183
sections 184.01 and 184.02 of the Revised Code. In addition, the	1184
commission may do any of the following:	1185

(1) Adopt, amend, and rescind rules under section 111.15 of	1186
the Revised Code for the administration of any aspect of its	1187
operations;	1188

(2) Adopt bylaws governing its operations, including bylaws	1189
that establish procedures and set policies as may be necessary to	1190
assist with the furtherance of its purposes;	1191

(3) Appoint and set the compensation of employees needed to	1192
carry out its duties;	1193

(4) Contract with, retain the services of, or designate, and	1194
fix the compensation of, such financial consultants, accountants,	1195
other consultants and advisors, and other independent contractors	1196
as may be necessary or desirable to carry out its duties;	1197

(5) Solicit input and comments from the third frontier	1198
advisory board, and specialized industry, professional, and other	1199
relevant interest groups concerning its purposes;	1200

(6) Facilitate alignment of the state's science and	1201
technology programs and activities;	1202

(7) Make grants and loans to individuals, public agencies,	1203
private companies or organizations, or joint ventures for any of	1204
the broad range of activities related to its purposes.	1205

(B) In addition to the powers and duties under sections	1206
184.10 to 184.20 and 184.25 and 184.26 of the Revised Code, the	1207
commission shall do all of the following:	1208

(1) Establish a competitive process for the award of grants	1209
and loans that is designed to fund the most meritorious proposals	1210
and, when appropriate, provide for peer review of proposals;	1211

(2) Within ninety days after the end of each fiscal year,	1212
submit to the governor and the general assembly a report of the	1213
activities of the commission during the preceding fiscal year;	1214

(3) With specific application to the biomedical research and	1215
technology transfer trust fund, periodically make strategic	1216
assessments of the types of state investments in biomedical	1217
research and biotechnology in the state that would likely create	1218
jobs and business opportunities in the state and produce the most	1219
beneficial long-term improvements to the public health of Ohioans,	1220
including, but not limited to, biomedical research and	1221
biotechnology initiatives that address tobacco-related illnesses	1222
as may be outlined in any master agreement. The commission shall	1223
award grants and loans from the fund pursuant to a process	1224
established under division (B)(1) of this section.	1225

Sec. 184.23. (A) There is hereby created the third frontier	1226
economic stimulus advisory board. The advisory board shall	1227
provide general advice to the commission regarding bioproduct	1228
and biomedical issues.	1229

(B) The board shall consist of seven members selected for	1230
their bioproducts and biomedical knowledge and experience. The	1231
governor shall appoint two members. The speaker of the house of	1232
representatives shall appoint two members, one of whom may be	1233
recommended by the minority leader of the house of	1234
representatives. The president of the senate shall appoint two	1235
members, one of whom may be recommended by the minority leader of	1236
the senate. The director of development shall appoint one member.	1237
Membership on the advisory board created under section 184.03 of	1238
the Revised Code does not prohibit membership on the advisory	1239
board created under this section. All members of the board shall	1240
serve at the pleasure of their appointing authorities.	1241

(C) The board shall select from among its members a	1242
chairperson. A majority of board members constitutes a quorum, and	1243
no action shall be taken without the affirmative vote of a	1244
majority of the members.	1245

(D) A vacancy shall be filled in the same manner as the	1246
original appointment. The governor may remove any member of the	1247
board for malfeasance, misfeasance, or nonfeasance after a	1248
hearing in accordance with Chapter 119. of the Revised Code.	1249

(E) Members of the board shall not act as representatives of	1250
any specific disciplinary, regional, or organizational interest.	1251
Members shall represent a wide variety of experience valuable in	1252
technology research and development, product process innovation	1253
and commercialization, and creating and managing high-growth	1254
technology-based companies.	1255

(F) Members of the board shall file financial disclosure	1256
statements described in division (B) of section 102.02 of the	1257
Revised Code.	1258

(G) Members of the board shall serve without compensation,	1259
but shall receive their reasonable and necessary expenses	1260
incurred in the conduct of board business.	1261

(H) The department of development shall provide office space	1262
and facilities for the board.	1263

Sec. 184.24. Money in the jobs fund created in the state	1264
treasury shall be used in accordance with sections 184.25 and	1265
184.26 of the Revised Code and may be used to provide cash	1266
transfers to the local infrastructure development fund created in	1267
section 164.28 of the Revised Code.	1268

Sec. 184.25. There is hereby created the Ohio bioproducts	1269
development program to be administered by the third frontier	1270
commission. The commission shall provide loans, loan guarantees,	1271
or grants to for-profit or not-for-profit entities to promote,	1272
provide for and enable innovation, development and	1273
commercialization of bioproducts, including biopolymers,	1274
chemicals, and advanced materials that use biomaterials and	1275
renewable agriculture resources, through efforts including, but	1276
not limited to, agribusiness and the agricultural industry in	1277
Ohio, state and local government entities and agencies,	1278
educational institutions, or research organizations and	1279
institutions. The program shall be funded from the jobs fund	1280
created in section 184.24 of the Revised Code.	1281

Sec. 184.26. There is hereby created the Ohio biomedical	1282
development program to be administered by the third frontier	1283
commission. The commission shall provide loans, loan guarantees,	1284
or grants to for-profit or not-for-profit entities to promote,	1285
provide for and enable innovation, development and	1286
commercialization of biomedical and biotechnological products,	1287
processes and applications, including medical devices,	1288
diagnostics, informatics, therapies, and drugs, through efforts by	1289
and collaboration among and including business and industry in	1290
Ohio, state and local governmental entities and agencies,	1291
educational institutions, or research organizations and	1292
institutions. The program shall be funded from the jobs fund	1293
created in section 184.24 of the Revised Code.	1294

Sec. 1555.03.  For the purposes of this chapter, the director	1295
of the Ohio coal development office may:	1296

(A) With the advice of the technical advisory committee	1297
created in section 1551.35 of the Revised Code and the affirmative	1298
vote of a majority of the members of the Ohio air quality	1299
development authority, make loans, guarantee loans, and make	1300
grants to persons doing business in this state or to educational	1301
or scientific institutions located in this state for coal research	1302
and development projects by any such person or educational or	1303
scientific institution and adopt rules under Chapter 119. of the	1304
Revised Code for making such loans, guarantees, and grants.	1305

(B) In making loans, loan guarantees, and grants under	1306
division (A) of this section and section 1555.04 of the Revised	1307
Code, the director of the office shall ensure that an adequate	1308
portion of the total amount of those loans, loan guarantees, and	1309
grants, as determined by the director with the advice of the	1310
technical advisory committee, is used for conducting research on	1311
fundamental scientific problems related to the utilization of Ohio	1312
coal and shall ensure, to the maximum feasible extent, joint	1313
financial participation by the federal government or other	1314
investors or interested parties in conjunction with any such loan,	1315
loan guarantee, or grant. The director, in each grant agreement or	1316
contract under division (A) of this section, loan contract or	1317
agreement under this division or section 1555.04 of the Revised	1318
Code, and contract of guarantee under section 1555.05 of the	1319
Revised Code, shall require that the facility or project be	1320
maintained and kept in good condition and repair by the person or	1321
educational or scientific institution to whom the grant or loan	1322
was made or for whom the guarantee was made.	1323

(C) From time to time, with the advice of the technical	1324
advisory committee and the affirmative vote of a majority of the	1325
members of the Ohio air quality development authority, request the	1326
issuance of coal research and development general obligations	1327
under section 151.07 of the Revised Code, for any of the purposes	1328
set forth in Section 15 of Article VIII, Ohio Constitution, and	1329
subject to the limitations therein upon the aggregate total amount	1330
of obligations that may be outstanding at any time.	1331

(D) Include as a condition of any loan, loan guarantee, or	1332
grant contract or agreement with any such person or educational or	1333
scientific institution that the director of the office receive, in	1334
addition to payments of principal and interest on any such loan or	1335
service charges for any such guarantee, as appropriate, as	1336
authorized by Section 15, Article VIII, Ohio Constitution, a	1337
reasonable royalty or portion of the income or profits arising out	1338
of the developments, discoveries, or inventions, including patents	1339
or copyrights, that result in whole or in part from coal research	1340
and development projects conducted under any such contract or	1341
agreement, in such amounts and for such period of years as may be	1342
negotiated and provided by the contract or agreement in advance of	1343
the making of the grant, loan, or loan guarantee. Moneys so	1344
received by the director of the office shallunder this section	1345
may be credited to the coal research and development bond service	1346
fund or used to make additional loans, loan guarantees, grants,	1347
or agreements under this section.	1348

(E) Employ managers, superintendents, and other employees and	1349
retain or contract with consulting engineers, financial	1350
consultants, accounting experts, architects, and such other	1351
consultants and independent contractors as are necessary in the	1352
judgment of the director of the office to carry out this chapter,	1353
and fix the compensation thereof.	1354

(F) Receive and accept from any federal agency, subject to	1355
the approval of the governor, grants for or in aid of the	1356
construction or operation of any coal research and development	1357
project or for coal research and development, and receive and	1358
accept aid or contributions from any source of money, property,	1359
labor, or other things of value, to be held, used, and applied	1360
only for the purposes for which such grants and contributions are	1361
made.	1362

(G) Purchase fire and extended coverage and liability	1363
insurance for any coal research and development project, insurance	1364
protecting the office and its officers and employees against	1365
liability for damage to property or injury to or death of persons	1366
arising from its operations, and any other insurance the director	1367
of the office determines necessary or proper under this chapter.	1368
Any moneys received by the director from the proceeds of any such	1369
insurance with respect to a coal research and development project	1370
and any moneys received by the director from the proceeds of any	1371
settlement, judgment, foreclosure, or other insurance with respect	1372
to a coal research and development project or facility shall be	1373
credited to the coal research and development bond service fund.	1374

(H) In the exercise of the powers of the director of the	1375
office under this chapter, call to the director's assistance,	1376
temporarily, from time to time, any engineers, technical experts,	1377
financial experts, and other employees in any state department,	1378
agency, or commission, or in the Ohio state university, or other	1379
educational institutions financed wholly or partially by this	1380
state for purposes of assisting the director of the office with	1381
reviewing and evaluating applications for financial assistance	1382
under this chapter, monitoring performance of coal research and	1383
development projects receiving financial assistance under this	1384
chapter, and reviewing and evaluating the progress and findings of	1385
those projects. Such engineers, experts, and employees shall not	1386
receive any additional compensation over that which they receive	1387
from the department, agency, commission, or educational	1388
institution by which they are employed, but they shall be	1389
reimbursed for their actual and necessary expenses incurred while	1390
working under the direction of the director.	1391

(I) Do all acts necessary or proper to carry out the powers	1392
expressly granted in this chapter.	1393

Sec. 3333.38.  (A) As used in this section:

1394

(1) "Institution of higher education" includes all of the	1395
following:	1396

(a) A state institution of higher education, as defined in	1397
section 3345.011 of the Revised Code;	1398

(b) A nonprofit institution issued a certificate of	1399
authorization under Chapter 1713. of the Revised Code;	1400

(c) A private institution exempt from regulation under	1401
Chapter 3332. of the Revised Code, as prescribed in section	1402
3333.046 of the Revised Code;	1403

(d) An institution of higher education with a certificate of	1404
registration from the state board of career colleges and schools	1405
under Chapter 3332. of the Revised Code.	1406

(2) "Student financial assistance supported by state funds"	1407
includes assistance granted under sections 3315.33, 3333.12,	1408
3333.122, 3333.21, 3333.26, 3333.27, 3333.28, 3333.372, 5910.03,	1409
5910.032, and 5919.34 of the Revised Code or, financed by an	1410
award under the choose Ohio first scholarship program	1411
established under section 3333.61 of the Revised Code, or	1412
financed by an award under the Ohio innovation partnership	1413
co-op/internship program established under section 3333.72 of the	1414
Revised Code, and any other post-secondary student financial	1415
assistance supported by state funds.	1416

(B) An individual who is convicted of, pleads guilty to, or	1417
is adjudicated a delinquent child for one of the following	1418
violations shall be ineligible to receive any student financial	1419
assistance supported by state funds at an institution of higher	1420
education for two calendar years from the time the individual	1421
applies for assistance of that nature:	1422

(1) A violation of section 2917.02 or 2917.03 of the Revised	1423
Code;	1424

(2) A violation of section 2917.04 of the Revised Code that	1425
is a misdemeanor of the fourth degree;	1426

(3) A violation of section 2917.13 of the Revised Code that	1427
is a misdemeanor of the fourth or first degree and occurs within	1428
the proximate area where four or more others are acting in a	1429
course of conduct in violation of section 2917.11 of the Revised	1430
Code.	1431

(C) If an individual is convicted of, pleads guilty to, or is	1432
adjudicated a delinquent child for committing a violation of	1433
section 2917.02 or 2917.03 of the Revised Code, and if the	1434
individual is enrolled in a state-supported institution of higher	1435
education, the institution in which the individual is enrolled	1436
shall immediately dismiss the individual. No state-supported	1437
institution of higher education shall admit an individual of that	1438
nature for one academic year after the individual applies for	1439
admission to a state-supported institution of higher education.	1440
This division does not limit or affect the ability of a	1441
state-supported institution of higher education to suspend or	1442
otherwise discipline its students.	1443

Sec. 3333.68.  When making an award under the choose Ohio	1444
innovation partnershipfirst scholarship program or the Ohio	1445
research scholars program, the chancellor of the Ohio board of	1446
regents, subject to approval by the controlling board, may commit	1447
to giving a state university's or college's proposal preference	1448
for future awards after the current fiscal year or fiscal	1449
biennium. A proposal's eligibility for future awards remains	1450
conditional on all of the following:	1451

(A) Future appropriations of the general assembly;

1452

(B) The university's or college's adherence to the agreement	1453
entered into under section 3333.65 of the Revised Code, including	1454
its fulfillment of pledges of other institutional, public, or	1455
nonpublic resources;	1456

(C) With respect to the choose Ohio first scholarship	1457
program, a demonstration that the students receiving the	1458
scholarship are satisfied with the state universities or colleges	1459
selected by the chancellor to offer the scholarships.	1460

The chancellor and the controlling board shall not commit to	1461
awarding any proposal for more than five fiscal years at a time.	1462
However, when a commitment for future awards expires, a state	1463
university or college may reapply.	1464

Sec. 3333.69.  The chancellor of the Ohio board of regents	1465
shall monitor each initiative for which an award is granted under	1466
the choose Ohio innovation partnershipfirst scholarship program	1467
or the Ohio research scholars program to ensure the following:	1468

(A) Fiscal accountability, so that the award is used in	1469
accordance with the agreement entered into under section 3333.65	1470
of the Revised Code;	1471

(B) Operating progress, so that the initiative is managed to	1472
achieve the goals stated in the proposal and in the agreement, and	1473
so that problems may be promptly identified and remedied;	1474

(C) Desired outcomes, so that the initiative contributes to	1475
the programs' goals of enhancing regional educational and economic	1476
strengths and meeting regional economic needs.	1477

Sec. 3333.70.  Not later than December 31, 2008, and the	1478
thirty-first day of December of each year thereafter, the	1479
chancellor of the Ohio board of regents shall submit to the	1480
general assembly in accordance with section 101.68 of the Revised	1481
Code a report on the academic and economic impact of the choose	1482
Ohio innovation partnershipfirst scholarship program and the	1483
Ohio research scholars program. At a minimum, the report shall	1484
include the following:	1485

(A) Progress and performance metrics for each initiative that	1486
received an award in the previous fiscal year;	1487

(B) Economic indicators of the impact of each initiative, and	1488
all initiatives as a whole, on the regional economies and the	1489
statewide economy;	1490

(C) The chancellor's strategy in assigning choose Ohio first	1491
scholarships among state universities and colleges and how the	1492
actual awards fit that strategy.	1493

Sec. 3333.71.  As used in sections 3333.71 to 3333.80 of the	1494
Revised Code:	1495

(A) "Cooperative education program" means a partnership	1496
between students, institutions of higher education, and employers	1497
that formally integrates students' academic study with work	1498
experience in cooperating employer organizations and that meets	1499
all of the following conditions:	1500

(1) Alternates or combines periods of academic study and work	1501
experience in appropriate fields as an integral part of student	1502
education;	1503

(2) Provides students with compensation from the cooperative	1504
employer in the form of wages or salaries for work performed;	1505

(3) Evaluates each participating student's performance in the	1506
cooperative position, both from the perspective of the student's	1507
institution of higher education and the student's cooperative	1508
employer;	1509

(4) Provides participating students with academic credit from	1510
the institution of higher education upon successful completion of	1511
their cooperative education;	1512

(5) Is part of an overall degree program for which a	1513
percentage of the total program acceptable to the chancellor of	1514
the Ohio board of regents involves cooperative education.	1515

(B) "Internship program" means a partnership between	1516
students, institutions of higher education, and employers that	1517
formally integrates students' academic study with work or	1518
community service experience and that does both of the following:	1519

(1) Offers internships of specified and definite duration;

1520

(2) Evaluates each participating student's performance in the	1521
internship position, both from the perspective of the student's	1522
institution of higher education and the student's internship	1523
employer.	1524

An internship program may provide participating students with	1525
academic credit upon successful completion of the internship, and	1526
may provide students with compensation in the form of wages or	1527
salaries, stipends, or scholarships.	1528

(C) "Nonpublic university or college" means a nonprofit	1529
institution holding a certificate of authorization issued under	1530
Chapter 1713. of the Revised Code.	1531

(D) "State institution of higher education" has the same	1532
meaning as in section 3345.011 of the Revised Code.	1533

Sec. 3333.72.  The chancellor of the Ohio board of regents	1534
shall establish and administer, as part of the Ohio innovation	1535
partnership, the co-op/internship program to promote and encourage	1536
cooperative education programs or internship programs at Ohio	1537
institutions of higher education for the purpose of recruiting	1538
Ohio students to stay in the state, and recruiting Ohio residents	1539
who left Ohio to attend out-of-state institutions of higher	1540
education back to Ohio institutions of higher education, to	1541
participate in high quality academic programs that use	1542
cooperative education programs or significant internship	1543
programs, in order to support the growth of Ohio's businesses by	1544
providing businesses with Ohio's most talented students and	1545
providing Ohio graduates with job opportunities with Ohio's	1546
growing companies.	1547

The chancellor, subject to approval by the controlling board,	1548
shall make awards to state institutions of higher education for	1549
new or existing programs and initiatives meeting the goals of the	1550
Ohio innovation partnership co-op/internship program. Awards may	1551
be granted for programs and initiatives to be implemented by a	1552
state institution of higher education alone or in collaboration	1553
with other state institutions of higher education or nonpublic	1554
Ohio universities and colleges. If the chancellor makes an award	1555
to a program or initiative that is intended to be implemented by	1556
a state institution of higher education in collaboration with	1557
other state institutions of higher education or nonpublic Ohio	1558
universities or colleges, the chancellor may provide that some	1559
portion of the award be received directly by the collaborating	1560
universities or colleges consistent with all terms of the Ohio	1561
innovation partnership co-op/internship program.	1562

The Ohio innovation partnership co-op/internship program	1563
shall support the creation and maintenance of high quality	1564
academic programs that utilize an intensive cooperative education	1565
or internship program for students at state institutions of	1566
higher education, or assign a number of scholarships to	1567
institutions to recruit Ohio residents as students in a high	1568
quality academic program, or both. If scholarships are included	1569
in an award to an institution of higher education, the	1570
scholarships shall be awarded to each participating eligible	1571
student as a grant to the state institution of higher education	1572
the student is attending and shall be reflected on the student's	1573
tuition bill.	1574

Notwithstanding any other provision of this section or	1575
sections 3333.73 to 3333.80 of the Revised Code, an Ohio four-year	1576
nonpublic university or college may submit a proposal as lead	1577
applicant or co-lead applicant for an award under the Ohio	1578
innovation partnership co-op/internship program if the proposal	1579
is to be implemented in collaboration with a state institution of	1580
higher education. If the chancellor grants a nonpublic university	1581
or college an award, the nonpublic university or college shall	1582
comply with all requirements of this section, sections 3333.73 to	1583
3333.80 of the Revised Code, and the rules adopted under this	1584
section that apply to state institutions of higher education that	1585
receive awards under the program.	1586

The chancellor shall adopt rules in accordance with Chapter	1587
119. of the Revised Code to administer the Ohio innovation	1588
partnership co-op/internship program.	1589

Sec. 3333.73.  The chancellor of the Ohio board of regents	1590
shall establish a competitive process for making awards under the	1591
Ohio innovation partnership co-op/internship program. The	1592
chancellor, on completion of that process, shall make a	1593
recommendation to the controlling board asking for approval of	1594
each award selected by the chancellor.	1595

The state institution of higher education shall submit a	1596
proposal and other documentation required by the chancellor, in	1597
the form and manner prescribed by the chancellor, for each award	1598
it seeks. A proposal may propose an initiative to be implemented	1599
solely by the state institution of higher education or in	1600
collaboration with other state institutions of higher education or	1601
nonpublic Ohio universities or colleges.	1602

The chancellor shall determine which proposals will receive	1603
awards each fiscal year, and the amount of each award, on the	1604
basis of the merit of each proposal, which the chancellor, subject	1605
to approval by the controlling board, shall determine based on one	1606
or more of the following criteria:	1607

(A) The extent to which the proposal will keep Ohio students	1608
in Ohio institutions of higher education;	1609

(B) The extent to which the proposal will attract Ohio	1610
residents who left Ohio to attend out-of-state institutions of	1611
higher education to return to Ohio institutions of higher	1612
education;	1613

(C) The extent to which the proposal will increase the number	1614
of Ohio graduates who remain in Ohio and enter Ohio's workforce;	1615

(D) The quality of the program that is the subject of the	1616
proposal and the extent to which additional resources will enhance	1617
its quality;	1618

(E) The extent to which the proposal is integrated with the	1619
strengths of the regional economy;	1620

(F) The extent to which the proposal is aligned with the	1621
report submitted by the chancellor pursuant to Section 4 of Sub.	1622
H.B. 2 of the 127th general assembly, as amended;	1623

(G) The extent to which the proposal facilitates the	1624
development of high quality academic programs with a cooperative	1625
education program or a significant internship program at state	1626
institutions of higher education;	1627

(H) The extent to which the proposal is integrated with	1628
supporting private companies to fill potential job growth;	1629

(I) The amount of other institutional, public, or private	1630
resources, whether monetary or nonmonetary, the proposal pledges	1631
to leverage that are in addition to the monetary cost-sharing	1632
requirement prescribed in section 3333.74 of the Revised Code;	1633

(J) The extent to which the proposal is collaborative with	1634
other Ohio institutions of higher education;	1635

(K) The extent to which the proposal is integrated with the	1636
institution's mission;	1637

(L) The extent to which the proposal meets a statewide	1638
educational need at the undergraduate or graduate level;	1639

(M) The demonstrated productivity or future capacity of the	1640
students to be recruited;	1641

(N) The extent to which the proposal will create additional	1642
capacity in a high quality academic program with a cooperative	1643
education program or significant internship program;	1644

(O) The extent to which the proposal will encourage students	1645
who received degrees from two-year institutions to pursue	1646
baccalaureate degrees;	1647

(P) The extent to which the proposal facilitates the	1648
completion of a baccalaureate degree in a cost-effective manner;	1649

(Q) The extent to which other institutional, public, or	1650
private resources that are pledged to the proposal, in addition to	1651
the monetary cost-sharing requirement prescribed in section	1652
3333.74 of the Revised Code, will be deployed to assist in	1653
sustaining the academic program of excellence;	1654

(R) The extent to which the proposal increases the likelihood	1655
that students will successfully complete their degree programs;	1656

(S) The extent to which the proposal ensures that a student	1657
participating in the high quality academic program funded by the	1658
Ohio innovation partnership co-op/internship program is	1659
appropriately qualified and prepared to successfully transition	1660
into professions in Ohio's growing companies and industries.	1661

Sec. 3333.74. (A) Except as provided in division (B) of this	1662
section, each award under the Ohio innovation partnership	1663
co-op/internship program shall require a pledge of private funds	1664
equal to the following:	1665

(1) In the case of a program, initiative, or scholarships for	1666
undergraduate students, at least one hundred per cent of the	1667
money awarded;	1668

(2) In the case of a program, initiative, or scholarships for	1669
graduate students, at least one hundred fifty per cent of the	1670
money awarded.	1671

(B) The chancellor of the Ohio board of regents may waive	1672
the requirement of division (A) of this section if the chancellor	1673
finds that exceptional circumstances exist to do so, provided	1674
that the chancellor reviews the proposal with the advisory	1675
committee established under section 3333.80 of the Revised Code	1676
and provides an explanation for the waiver to the controlling	1677
board.	1678

(C) The chancellor shall endeavor to distribute awards in	1679
such a way that a wide range of disciplines is supported and that	1680
all regions of the state benefit from the economic development	1681
impact of the program.	1682

Sec. 3333.75.  The chancellor of the Ohio board of regents	1683
shall require each state institution of higher education that the	1684
controlling board approves to receive an award under the Ohio	1685
innovation partnership co-op/internship program to enter into an	1686
agreement governing the use of the award. The agreement shall	1687
contain terms the chancellor determines to be necessary, which	1688
shall include performance measures, reporting requirements, and	1689
an obligation to fulfill pledges of other institutional, public,	1690
or nonpublic resources for the proposal.	1691

The chancellor may require a state institution of higher	1692
education that violates the terms of its agreement to repay the	1693
award plus interest at the rate required by section 5703.47 of the	1694
Revised Code to the chancellor.	1695

If the chancellor makes an award to a program or initiative	1696
that is intended to be implemented by a state institution of	1697
higher education in collaboration with other state institutions of	1698
higher education or nonpublic Ohio universities or colleges, the	1699
chancellor may enter into an agreement with the collaborating	1700
universities or colleges that permits awards to be received	1701
directly by the collaborating universities or colleges consistent	1702
with the terms of the program or initiative. In that case, the	1703
chancellor shall incorporate into the agreement terms consistent	1704
with the requirements of this section.	1705

Sec. 3333.76.  The chancellor of the Ohio board of regents	1706
shall encourage state institutions of higher education, alone or	1707
in collaboration with other state institutions of higher education	1708
or nonpublic Ohio universities and colleges, to submit proposals	1709
under the Ohio innovation partnership co-op/internship program for	1710
initiatives that recruit Ohio residents enrolled in colleges and	1711
universities in other states or other countries to return to Ohio	1712
and enroll in state institutions of higher education or nonpublic	1713
Ohio universities and colleges as graduate students in a high	1714
quality academic program that uses a cooperative education	1715
program, a significant internship program in a private industry	1716
or institutional laboratory, or a similar model involving a	1717
variation of cooperative education or internship programs common	1718
to graduate education, and is in an educational area, industry,	1719
or industry sector of need.	1720

The chancellor may encourage state institutions of higher	1721
education, alone or in collaboration with other state institutions	1722
of higher education or nonpublic Ohio universities and colleges,	1723
to submit proposals for initiatives that recruit Ohio residents	1724
who have received baccalaureate degrees to remain in Ohio and	1725
enroll in state institutions of higher education or nonpublic Ohio	1726
universities and colleges as graduate students in a high quality	1727
academic program of the type described in the preceding paragraph.	1728

Sec. 3333.77.  When making an award under the Ohio innovation	1729
partnership co-op/internship program, the chancellor of the Ohio	1730
board of regents, subject to approval by the controlling board,	1731
may commit to giving a state institution of higher education's	1732
proposal preference for future awards after the current fiscal	1733
year or fiscal biennium. A proposal's eligibility for future	1734
awards remains conditional on all of the following:	1735

(A) Future appropriations of the general assembly;

1736

(B) The institution's adherence to the agreement entered into	1737
under section 3333.75 of the Revised Code, including its	1738
fulfillment of pledges of other institutional, public, or	1739
nonpublic resources;	1740

(C) A demonstration that the students participating in the	1741
programs and initiatives or receiving scholarships financed by the	1742
awards are satisfied with the institutions selected by the	1743
chancellor to offer the programs, initiatives, or scholarships	1744
financed by the awards.	1745

The chancellor and the controlling board shall not commit to	1746
awarding any proposal after June 30, 2014.	1747

Sec. 3333.78.  The chancellor of the Ohio board of regents	1748
shall monitor each initiative for which an award is granted under	1749
the Ohio innovation partnership co-op/internship program to ensure	1750
the following:	1751

(A) Fiscal accountability, so that the award is used in	1752
accordance with the agreement entered into under section 3333.75	1753
of the Revised Code;	1754

(B) Operating progress, so that the initiative is managed to	1755
achieve the goals stated in the proposal and in the agreement, and	1756
so that problems may be promptly identified and remedied;	1757

(C) Desired outcomes, so that the initiative contributes to	1758
the program's goal of retaining Ohio's students after graduation.	1759

Sec. 3333.79.  Not later than December 31, 2010, and the	1760
thirty-first day of December of each year thereafter, the	1761
chancellor of the Ohio board of regents shall submit to the	1762
general assembly in accordance with section 101.68 of the Revised	1763
Code a report on the academic and economic impact of the Ohio	1764
innovation partnership co-op/internship program. At a minimum,	1765
the report shall include the following:	1766

(A) Progress and performance metrics for each initiative that	1767
received an award in the previous fiscal year;	1768

(B) Economic indicators of the impact of each initiative, and	1769
all initiatives as a whole, on the regional economies and the	1770
statewide economy;	1771

(C) The chancellor's strategy in allocating awards among	1772
state institutions of higher education and how the actual awards	1773
fit that strategy.	1774

Sec. 3333.80.  (A) The co-op/internship program advisory	1775
committee is hereby created. The committee shall consist of the	1776
following members:	1777

(1) Five members appointed by the governor, two of whom shall	1778
represent academia, two of whom shall be representatives of	1779
private industry, and one of whom shall be a member of the public;	1780

(2) The director of development, or the director's designee;

1781

(3) Five members appointed by the president of the senate,	1782
three of whom shall be members of the senate, one of whom shall	1783
represent academia, and one of whom shall be a member of the	1784
public;	1785

(4) Five members appointed by the speaker of the house of	1786
representatives, three of whom shall be members of the house of	1787
representatives, one of whom shall represent private industry, and	1788
one of whom shall be a member of the public.	1789

(B) Members of the committee who are members of the general	1790
assembly shall serve for terms of four years or until their	1791
legislative terms end, whichever is sooner. The director of	1792
development or the director's designee shall serve as an	1793
ex-officio, voting member. Otherwise, initial members shall serve	1794
the following terms:	1795

(1) Of the initial members appointed by the governor, the	1796
member representing the public and one member representing	1797
academia shall serve for terms of one year; one member	1798
representing private industry shall serve for a term of twoyears;	1799
and one member representing private industry and one member	1800
representing academia shall serve for terms of three years.	1801

(2) The member representing academia and the representative	1802
of the public initially appointed by the president of the senate	1803
shall serve for terms of two years.	1804

(3) The member representing private industry initially	1805
appointed by the speaker of the house of representatives shall	1806
serve for a term of one year.	1807

(4) The representative of the public initially appointed by	1808
the speaker of the house of representatives shall serve for a term	1809
of three years.	1810

Thereafter, terms shall be for three years, with each term	1811
ending on the same day of the same month as did the term that it	1812
succeeds. Each member shall serve from the date of appointment	1813
until the end of the term for which the member was appointed.	1814
Members may be reappointed. Vacancies shall be filled in the same	1815
manner as provided for original appointments. Any member appointed	1816
to fill a vacancy occurring prior to the expiration date of the	1817
term for which the member was appointed shall hold office for the	1818
remainder of that term. A member shall continue to serve after the	1819
expiration date of the member's term until the member's successor	1820
is appointed or until a period of sixty days has elapsed,	1821
whichever occurs first. The appointing authority may remove a	1822
member from the committee for failure to attend two consecutive	1823
meetings without showing good cause for the absences.	1824

(C) The committee annually shall select a chairperson and a	1825
vice-chairperson. Only the members who represent academia and	1826
private industry may serve as chairperson and vice-chairperson.	1827
For this purpose, any committee member appointed as a member of	1828
the public who is a trustee, officer, employee, or student of an	1829
institution of higher education shall be included among the	1830
representatives of academia who may serve as chairperson or	1831
vice-chairperson, and any committee member appointed as a member	1832
of the public who is a director, officer, or employee of a private	1833
business shall be included among the representatives of private	1834
industry who may serve as chairperson or vice-chairperson. The	1835
committee annually shall rotate the selection of the chairperson	1836
between these two groups and shall select a member of the other	1837
group to serve as vice-chairperson.	1838

The committee annually shall select one of its members to	1839
serve as secretary to keep a record of the committee's	1840
proceedings.	1841

(D) A majority vote of the members of the full committee is	1842
necessary to take action on any matter. The committee may adopt	1843
bylaws governing its operation, including bylaws that establish	1844
the frequency of meetings.	1845

(E) Members of the committee shall serve without	1846
compensation.	1847

(F) A member of the committee shall not participate in	1848
discussions or votes concerning a proposed initiative or an actual	1849
award under the Ohio innovation partnership co-op/internship	1850
program that involves an institution of higher education of which	1851
the member is a trustee, officer, employee, or student; an	1852
organization of which the member is a trustee, director, officer,	1853
or employee; or a business of which the member is a director,	1854
officer, or employee or a shareholder of more than five per cent	1855
of the business' stock.	1856

(G) The committee shall advise the chancellor of the Ohio	1857
board of regents on growing industries well-suited for awards	1858
under the Ohio innovation partnership co-op/internship program.	1859
The chancellor shall consult with the committee and request the	1860
committee's advice at each of the following times:	1861

(1) Prior to issuing each request for applications under the	1862
program;	1863

(2) While the chancellor is reviewing applications and before	1864
deciding on awards to submit for the controlling board's approval;	1865

(3) After deciding on awards to submit for the controlling	1866
board's approval and prior to submitting them.	1867

The committee shall advise the chancellor on other matters	1868
the chancellor considers appropriate.	1869

(H) The chancellor shall provide meeting space for the	1870
committee. The committee shall be assisted in its duties by the	1871
chancellor's staff.	1872

(I) Sections 101.82 to 101.87 of the Revised Code do not	1873
apply to the committee.	1874

Sec. 3345.32.  (A) As used in this section:

1875

(1) "State university or college" means the institutions	1876
described in section 3345.27 of the Revised Code and the	1877
northeastern Ohio universities college of medicine.	1878

(2) "Resident" has the meaning specified by rule of the	1879
chancellor of the Ohio board of regents.	1880

(3) "Statement of selective service status" means a statement	1881
certifying one of the following:	1882

(a) That the individual filing the statement has registered	1883
with the selective service system in accordance with the "Military	1884
Selective Service Act," 62 Stat. 604, 50 U.S.C. App. 453, as	1885
amended;	1886

(b) That the individual filing the statement is not required	1887
to register with the selective service for one of the following	1888
reasons:	1889

(i) The individual is under eighteen or over twenty-six years	1890
of age.	1891

(ii) The individual is on active duty with the armed forces	1892
of the United States other than for training in a reserve or	1893
national guard unit.	1894

(iii) The individual is a nonimmigrant alien lawfully in the	1895
United States in accordance with section 101 (a)(15) of the	1896
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended.	1897

(iv) The individual is not a citizen of the United States and	1898
is a permanent resident of the Trust Territory of the Pacific	1899
Islands or the Northern Mariana Islands.	1900

(4) "Institution of higher education" means any eligible	1901
institution approved by the United States department of education	1902
pursuant to the "Higher Education Act of 1965," 79 Stat. 1219, as	1903
amended, or any institution whose students are eligible for	1904
financial assistance under any of the programs described by	1905
division (E) of this section.	1906

(B) The chancellor shall, by rule, specify the form of	1907
statements of selective service status to be filed in compliance	1908
with divisions (C) to (F) of this section. Each statement of	1909
selective service status shall contain a section wherein a male	1910
student born after December 31, 1959, certifies that the student	1911
has registered with the selective service system in accordance	1912
with the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.	1913
App. 453, as amended. For those students not required to register	1914
with the selective service, as specified in divisions	1915
(A)(2)(b)(i) to (iv) of this section, a section shall be provided	1916
on the statement of selective service status for the	1917
certification of nonregistration and for an explanation of the	1918
reason for the exemption. The chancellor may require that such	1919
statements be accompanied by documentation specified by rule of	1920
the chancellor.	1921

(C) A state university or college that enrolls in any course,	1922
class, or program a male student born after December 31, 1959, who	1923
has not filed a statement of selective service status with the	1924
university or college shall, regardless of the student's	1925
residency, charge the student any tuition surcharge charged	1926
students who are not residents of this state.	1927

(D) No male born after December 31, 1959, shall be eligible	1928
to receive any loan, grant, scholarship, or other financial	1929
assistance for educational expenses granted under section 3315.33,	1930
3333.12, 3333.122, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,	1931
5910.032, or 5919.34 of the Revised Code, or financed by an award	1932
under the choose Ohio first scholarship program established under	1933
section 3333.61 of the Revised Code, or financed by an award	1934
under the Ohio innovation partnership co-op/internship program	1935
established under section 3333.72 of the Revised Code, unless that	1936
person has filed a statement of selective service status with	1937
that person's institution of higher education.	1938

(E) If an institution of higher education receives a	1939
statement from an individual certifying that the individual has	1940
registered with the selective service system in accordance with	1941
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. App.	1942
453, as amended or that the individual is exempt from registration	1943
for a reason other than that the individual is under eighteen	1944
years of age, the institution shall not require the individual to	1945
file any further statements. If it receives a statement certifying	1946
that the individual is not required to register because the	1947
individual is under eighteen years of age, the institution shall	1948
require the individual to file a new statement of selective	1949
service status each time the individual seeks to enroll for a new	1950
academic term or makes application for a new loan or loan	1951
guarantee or for any form of financial assistance for educational	1952
expenses, until it receives a statement certifying that the	1953
individual has registered with the selective service system or is	1954
exempt from registration for a reason other than that the	1955
individual is under eighteen years of age.	1956

Sec. 3706.25. As used in sections 3706.25 to 3706.29 of the	1957
Revised Code:	1958

(A) "Advanced energy project" means any technologies,	1959
products, activities, or management practices or strategies that	1960
facilitate the generation or use of electricity and that reduce or	1961
support the reduction of energy consumption or support the	1962
production of clean, renewable energy for industrial,	1963
distribution, commercial, institutional, governmental, research,	1964
not-for-profit, or residential energy users including, but not	1965
limited to, advanced energy resources and renewable energy	1966
resources. "Advanced energy project" includes any project	1967
described in division (A), (B), or (C) of section 4928.621 of the	1968
Revised Code. "Advanced energy project" does not include any	1969
project that uses coal.	1970

(B) "Advanced energy resource" means any of the following:

1971

(1) Any method or any modification or replacement of any	1972
property, process, device, structure, or equipment that increases	1973
the generation output of an electric generating facility to the	1974
extent such efficiency is achieved without additional carbon	1975
dioxide emissions by that facility;	1976

(2) Any distributed generation system consisting of customer	1977
cogeneration of electricity and thermal output simultaneously,	1978
primarily to meet the energy needs of the customer's facilities;	1979

(3) Advanced nuclear energy technology consisting of	1980
generation III technology as defined by the nuclear regulatory	1981
commission; other, later technology; or significant improvements	1982
to existing facilities;	1983

(4) Any fuel cell used in the generation of electricity,	1984
including, but not limited to, a proton exchange membrane fuel	1985
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	1986
solid oxide fuel cell;	1987

(5) Advanced solid waste or construction and demolition	1988
debris conversion technology, including, but not limited to,	1989
advanced stoker technology, and advanced fluidized bed	1990
gasification technology, that results in measurable greenhouse	1991
gas emissions reductions as calculated pursuant to the United	1992
States environmental protection agency's waste reduction model	1993
(WARM).	1994

(C) "Renewable energy resource" means solar photovoltaic or	1995
solar thermal energy, wind energy, power produced by a	1996
hydroelectric facility, geothermal energy, fuel derived from	1997
solid wastes, as defined in section 3734.01 of the Revised Code,	1998
through fractionation, biological decomposition, or other	1999
process that does not principally involve combustion, biomass	2000
energy, biologically derived methane gas, or energy derived	2001
from nontreated by-products of the pulping process or wood	2002
manufacturing process, including bark, wood chips, sawdust, and	2003
lignin in spent pulping liquors. "Renewable energy resource"	2004
includes, but is not limited to, any fuel cell used in the	2005
generation of electricity, including, but not limited to, a	2006
proton exchange membrane fuel cell, phosphoric acid fuel cell,	2007
molten carbonate fuel cell, or solid oxide fuel cell; wind turbine	2008
located in the state's territorial waters of Lake Erie; storage	2009
facility that will promote the better utilization of a renewable	2010
energy resource that primarily generates off peak; or distributed	2011
generation system used by a customer to generate electricity	2012
from any such energy. As used in this division, "hydroelectric	2013
facility" means a hydroelectric generating facility that is	2014
located at a dam on a river, or on any water discharged to a	2015
river, that is within or bordering this state or within or	2016
bordering an adjoining state and meets all of the following	2017
standards:	2018

(1) The facility provides for river flows that are not	2019
detrimental for fish, wildlife, and water quality, including	2020
seasonal flow fluctuations as defined by the applicable licensing	2021
agency for the facility.	2022

(2) The facility demonstrates that it complies with the	2023
water quality standards of this state, which compliance may	2024
consist of certification under Section 401 of the "Clean Water	2025
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and	2026
demonstrates that it has not contributed to a finding by this	2027
state that the river has impaired water quality under Section	2028
303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33	2029
U.S.C. 1313.	2030

(3) The facility complies with mandatory prescriptions	2031
regarding fish passage as required by the federal energy	2032
regulatory commission license issued for the project, regarding	2033
fish protection for riverine, anadromous, and catadromus fish.	2034

(4) The facility complies with the recommendations of the	2035
Ohio environmental protection agency and with the terms of its	2036
federal energy regulatory commission license regarding watershed	2037
protection, mitigation, or enhancement, to the extent of each	2038
agency's respective jurisdiction over the facility.	2039

(5) The facility complies with provisions of the "Endangered	2040
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	2041
amended.	2042

(6) The facility does not harm cultural resources of the	2043
area. This can be shown through compliance with the terms of its	2044
federal energy regulatory commission license or, if the facility	2045
is not regulated by that commission, through development of a plan	2046
approved by the Ohio historic preservation office, to the extent	2047
it has jurisdiction over the facility.	2048

(7) The facility complies with the terms of its federal	2049
energy regulatory commission license or exemption that are related	2050
to recreational access, accommodation, and facilities or, if the	2051
facility is not regulated by that commission, the facility	2052
complies with similar requirements as are recommended by resource	2053
agencies, to the extent they have jurisdiction over the facility;	2054
and the facility provides access to water to the public without	2055
fee or charge.	2056

(8) The facility is not recommended for removal by any	2057
federal agency or agency of any state, to the extent the	2058
particular agency has jurisdiction over the facility.	2059

Sec. 3706.26.  (A) The Ohio air quality development authority	2060
may, with the approval of its executive director and the	2061
affirmative vote of a majority of its members, request the	2062
issuance of bonds under section 166.08 of the Revised Code for the	2063
purpose of providing loans and grants for acquiring,	2064
manufacturing, constructing, reconstructing, expanding, improving,	2065
or equipping facilities or facility components by business and	2066
industry in this state, entities and agencies of state and local	2067
government, educational institutions, research organizations and	2068
institutions, or any combination thereof, for energy production,	2069
delivery, storage, conservation, and efficiency through advanced	2070
energy projects. The authority may, with the approval of its	2071
executive director and the affirmative vote of a majority of its	2072
members, make such loans and provide such grants in the manner	2073
provided for in section 166.30 of the Revised Code.	2074

(B) The issuance of bonds for the purpose described in this	2075
section is subject to the limitation established in division (A)	2076
of section 166.11 of the Revised Code.	2077

Sec. 3706.27. (A) There is hereby created in the state	2078
treasury the advanced energy research and development fund to	2079
provide grants for advanced energy projects. There is hereby	2080
created in the state treasury the advanced energy research and	2081
development taxable fund to provide loans for advanced energy	2082
projects.	2083

(B)(1) The advanced energy research and development fund and	2084
the advanced energy research and development taxable fund shall	2085
consist of the proceeds of obligations issued under section 166.08	2086
of the Revised Code. Money shall be credited to the respective	2087
funds in the proportion that the executive director of the Ohio	2088
air quality development authority, with the affirmative vote of a	2089
majority of the members of the authority, determines appropriate.	2090

(2) Any investment earnings from the money in the advanced	2091
energy research and development fund and in the advanced energy	2092
research and development taxable fund shall be credited to those	2093
funds, respectively. Any repayment of loans made from money in the	2094
advanced energy research and development taxable fund shall be	2095
credited to the facilities establishment fund created in section	2096
166.03 of the Revised Code.	2097

(C) The director of budget and management shall establish and	2098
maintain records or accounts for or within these funds in such a	2099
manner as to show the amount credited to the funds pursuant to	2100
section 166.08 of the Revised Code and that the amounts so	2101
credited have been expended for the purposes set forth in Section	2102
2p or 13 of Article VIII, Ohio Constitution, and sections 166.08,	2103
166.30, and 3706.26 of the Revised Code.	2104

Sec. 3706.28. (A) Determinations made by the executive	2105
director of the Ohio air quality development authority, with the	2106
affirmative vote of a majority of the members of the authority,	2107
that a particular project is an advanced energy project and is	2108
consistent with Chapter 166. of the Revised Code and Section 2p	2109
or 13 of Article VIII, Ohio Constitution, shall be conclusive as	2110
to the validity and enforceability of the obligations issued to	2111
finance such a project and of the authorizations, trust agreements	2112
or indentures, loan agreements, or grant agreements, and other	2113
agreements made in connection therewith, all in accordance with	2114
their terms.	2115

(B) Advanced energy facilities for industry, commerce,	2116
distribution, or research are hereby deemed to qualify as	2117
facilities for the control of air pollution and thermal pollution	2118
related to air under Section 2p or 13 of Article VIII, Ohio	2119
Constitution.	2120

Sec. 3706.29.  The Ohio air quality development authority	2121
shall, in accordance with Chapter 119. of the Revised Code, adopt	2122
any rules necessary to implement section 166.30 and sections	2123
3706.25 to 3706.28 of the Revised Code.	2124

Sec. 5537.141. Notwithstanding sections 5537.14 and 5537.28	2125
of the Revised Code, the Ohio turnpike commission shall pay to the	2126
state, for deposit into the state treasury to the credit of the	2127
highway operating fund created in section 5735.291 of the Revised	2128
Code, an annual amount determined by the director of budget and	2129
management to be used for the purposes of that fund. The	2130
obligation to make those payments shall be evidenced by an	2131
agreement between the commission, the office of budget and	2132
management, and the department of transportation. The agreement	2133
shall be entered into not later than September 30, 2008, and	2134
shall, at a minimum, set forth all of the following:	2135

(A) The obligation of the commission to make those payments	2136
from revenues available after satisfying its debt obligations and	2137
covenants under any outstanding bond proceedings;	2138

(B) The amount due and payable in each calendar year, which	2139
amount shall not exceed twenty million dollars;	2140

(C) A schedule for making periodic payments during the year	2141
and the manner in which those payments are to be made;	2142

(D) A termination date for the agreement, which date shall	2143
not be later than December 31, 2030.	2144

Sec. 5725.151.  (A) As used in this section, "certificate	2145
owner" has the same meaning as in section 149.311 of the Revised	2146
Code.	2147

(B) There is allowed a refundablenonrefundable credit	2148
against the tax imposed by section 5707.03 and assessed under	2149
section 5725.15 of the Revised Code for a dealer in intangibles	2150
subject to that tax that is a certificate owner of a	2151
rehabilitation tax credit certificate issued under section 149.311	2152
of the Revised Code. The credit shall equal twenty-five per cent	2153
of the dollar amount indicated on the certificate, but the amount	2154
of the credit allowed for any dealer for any year shall not exceed	2155
five million dollars. The credit shall be claimed in the calendar	2156
year specified in the certificate but a dealer may carry forward	2157
any credit amount in excess of the tax assessed for that year, and	2158
shall deduct the amount of the excess credit allowed for that year	2159
from the balance carried forward to the next year. The credit may	2160
be carried forward for not more than five years following the year	2161
for which the credit is first claimed.	2162

(C) A dealer in intangibles claiming a credit under this	2163
section shall retain the rehabilitation tax credit certificate for	2164
four years following the end of the year in which the credit was	2165
claimed, and shall make the certificate available for inspection	2166
by the tax commissioner upon the request of the tax commissioner	2167
during that period.	2168

(D) For the purpose of division (C) of section 5725.24 of the	2169
Revised Code, reductions in the amount of taxes collected on	2170
account of credits allowed under this section shall be applied to	2171
reduce the amount credited to the general revenue fund and shall	2172
not be applied to reduce the amount to be credited to the	2173
undivided local government funds of the counties in which such	2174
taxes originate.	2175

Sec. 5733.47. (A) As used in this section, "certificate	2176
owner" has the same meaning as in section 149.311 of the Revised	2177
Code.	2178

(B) There is allowed a refundable credit against the tax	2179
imposed under section 5733.06 of the Revised Code for a taxpayer	2180
that is a certificate owner of a rehabilitation tax credit	2181
certificate issued under section 149.311 of the Revised Code. The	2182
credit shall equal twenty-five per cent of the dollar amount	2183
indicated on the certificate, but shall not exceed five million	2184
dollars. The credit shall be claimed for the tax year specified	2185
in the certificate and in the order required under section	2186
5733.98 of the Revised Code. For purposes of making tax payments	2187
under this chapter, taxes equal to the amount of the refundable	2188
credit shall be considered to be paid to the state on the first	2189
day of the tax year.	2190

(C) A taxpayer claiming a credit under this section shall	2191
retain the rehabilitation tax credit certificate for four years	2192
following the end of the tax year to which the credit was applied,	2193
and shall make the certificate available for inspection by the tax	2194
commissioner upon the request of the tax commissioner during that	2195
period.	2196

(D) If, pursuant to division (G) of section 5733.01 of the	2197
Revised Code, a taxpayer no longer pays a tax under this chapter,	2198
the taxpayer may nonetheless file an annual report under section	2199
5733.02 of the Revised Code and claim the refundable credit	2200
authorized by this section. Nothing in this division allows a	2201
taxpayer to claim the credit under this section more than once.	2202

Sec. 5747.76. (A) As used in this section, "certificate	2203
owner" has the same meaning as in section 149.311 of the Revised	2204
Code.	2205

(B) There is allowed a refundablenonrefundable credit	2206
against the tax imposed under section 5747.02 of the Revised Code	2207
for a taxpayer that is the certificate owner of a rehabilitation	2208
tax credit certificate issued under section 149.311 of the	2209
Revised Code. The credit shall equal twenty-five per cent of the	2210
dollar amount indicated on the certificate, but the amount of	2211
credit allowed for any taxpayer shall not exceed five million	2212
dollars. The credit shall be claimed for the taxable year	2213
specified in the certificate and in the order required under	2214
section 5747.98 of the Revised Code. For purposes of making tax	2215
payments under this chapter, taxes equal to the amount of the	2216
refundable credit shall be considered to be paid to the state on	2217
the first day of the taxable year.	2218

(C) Nothing in this section limits or disallows pass-through	2219
treatment of the credit if the certificate owner is a pass-through	2220
entity. If the certificate owner is a pass-through entity, the	2221
amount of the credit allowed for the pass-through entity shall not	2222
exceed five million dollars.	2223

(D) If the credit allowed for any taxable year exceeds the	2224
tax otherwise due under section 5747.02 of the Revised Code, after	2225
allowing for any other credits preceding the credit in the order	2226
prescribed by section 5747.98 of the Revised Code, the taxpayer	2227
may carry forward the excess for not more than five taxable years	2228
following the taxable year for which the credit is claimed, and	2229
shall deduct the excess credit allowed in any such year from the	2230
balance carried forward to the next taxable year.	2231

(E) A taxpayer claiming a credit under this section shall	2232
retain the rehabilitation tax credit certificate for four years	2233
following the end of the taxable year to which the credit was	2234
applied, and shall make the certificate available for inspection	2235
by the tax commissioner upon the request of the tax commissioner	2236
during that period.	2237

Sec. 5747.98.  (A) To provide a uniform procedure for	2238
calculating the amount of tax due under section 5747.02 of the	2239
Revised Code, a taxpayer shall claim any credits to which the	2240
taxpayer is entitled in the following order:	2241

(1) The retirement income credit under division (B) of	2242
section 5747.055 of the Revised Code;	2243

(2) The senior citizen credit under division (C) of section	2244
5747.05 of the Revised Code;	2245

(3) The lump sum distribution credit under division (D) of	2246
section 5747.05 of the Revised Code;	2247

(4) The dependent care credit under section 5747.054 of the	2248
Revised Code;	2249

(5) The lump sum retirement income credit under division (C)	2250
of section 5747.055 of the Revised Code;	2251

(6) The lump sum retirement income credit under division (D)	2252
of section 5747.055 of the Revised Code;	2253

(7) The lump sum retirement income credit under division (E)	2254
of section 5747.055 of the Revised Code;	2255

(8) The low-income credit under section 5747.056 of the	2256
Revised Code;	2257

(9) The credit for displaced workers who pay for job training	2258
under section 5747.27 of the Revised Code;	2259

(10) The campaign contribution credit under section 5747.29	2260
of the Revised Code;	2261

(11) The twenty-dollar personal exemption credit under	2262
section 5747.022 of the Revised Code;	2263

(12) The joint filing credit under division (G) of section	2264
5747.05 of the Revised Code;	2265

(13) The nonresident credit under division (A) of section	2266
5747.05 of the Revised Code;	2267

(14) The credit for a resident's out-of-state income under	2268
division (B) of section 5747.05 of the Revised Code;	2269

(15) The credit for employers that enter into agreements with	2270
child day-care centers under section 5747.34 of the Revised Code;	2271

(16) The credit for employers that reimburse employee child	2272
care expenses under section 5747.36 of the Revised Code;	2273

(17) The credit for adoption of a minor child under section	2274
5747.37 of the Revised Code;	2275

(18) The credit for purchases of lights and reflectors under	2276
section 5747.38 of the Revised Code;	2277

(19) The job retention credit under division (B) of section	2278
5747.058 of the Revised Code;	2279

(20) The credit for selling alternative fuel under section	2280
5747.77 of the Revised Code;	2281

(21) The second credit for purchases of new manufacturing	2282
machinery and equipment and the credit for using Ohio coal under	2283
section 5747.31 of the Revised Code;	2284

(22) The job training credit under section 5747.39 of the	2285
Revised Code;	2286

(23) The enterprise zone credit under section 5709.66 of the	2287
Revised Code;	2288

(24) The credit for the eligible costs associated with a	2289
voluntary action under section 5747.32 of the Revised Code;	2290

(25) The credit for employers that establish on-site child	2291
day-care centers under section 5747.35 of the Revised Code;	2292

(26) The ethanol plant investment credit under section	2293
5747.75 of the Revised Code;	2294

(27) The nonrefundable credit for rehabilitating a historic	2295
building under section 5747.76 of the Revised Code;	2296

(28) The credit for purchases of qualifying grape production	2297
property under section 5747.28 of the Revised Code;	2298

(28)(29) The export sales credit under section 5747.057 of	2299
the Revised Code;	2300

(29)(30) The credit for research and development and	2301
technology transfer investors under section 5747.33 of the Revised	2302
Code;	2303

(30)(31) The enterprise zone credits under section 5709.65 of	2304
the Revised Code;	2305

(31)(32) The research and development credit under section	2306
5747.331 of the Revised Code;	2307

(32)(33) The refundable credit for rehabilitating a historic	2308
building under section 5747.76 of the Revised Code;	2309

(33)(34) The refundable jobs creation credit under division	2310
(A) of section 5747.058 of the Revised Code;	2311

(34)(35) The refundable credit for taxes paid by a qualifying	2312
entity granted under section 5747.059 of the Revised Code;	2313

(35)(36) The refundable credits for taxes paid by a	2314
qualifying pass-through entity granted under division (J) of	2315
section 5747.08 of the Revised Code;	2316

(36)(37) The refundable credit for tax withheld under	2317
division (B)(1) of section 5747.062 of the Revised Code;	2318

(37)(38) The refundable credit under section 5747.80 of the	2319
Revised Code for losses on loans made to the Ohio venture capital	2320
program under sections 150.01 to 150.10 of the Revised Code.	2321

(B) For any credit, except the credits enumerated in	2322
divisions (A)(32)(33) to (37)(38) of this section and the credit	2323
granted under division (I) of section 5747.08 of the Revised	2324
Code, the amount of the credit for a taxable year shall not	2325
exceed the tax due after allowing for any other credit that	2326
precedes it in the order required under this section. Any excess	2327
amount of a particular credit may be carried forward if	2328
authorized under the section creating that credit. Nothing in	2329
this chapter shall be construed to allow a taxpayer to claim,	2330
directly or indirectly, a credit more than once for a taxable	2331
year.	2332

Section 2. That existing sections 149.311, 166.01, 166.02,	2333
166.08, 166.11, 184.02, 1555.03, 3333.38, 3333.68, 3333.69,	2334
3333.70, 3345.32, 5725.151, 5733.47, 5747.76, and 5747.98 of the	2335
Revised Code are hereby repealed.	2336

Section 3. (A) Except as provided in division (B) of this	2337
section, the amendment by this act of sections 149.311, 5725.151,	2338
5733.47, 5747.76, and 5747.98 of the Revised Code applies only to	2339
the application periods beginning July 1, 2009, and July 1, 2010,	2340
and to tax credits allowed under rehabilitation tax credit	2341
certificates issued for applications filed for those application	2342
periods. Those sections as they existed before their amendment by	2343
this act apply to the application period beginning July 1, 2007,	2344
and ending June 30, 2008, and to tax credits allowed under	2345
rehabilitation tax credit certificates issued for applications	2346
filed for that application period.	2347

(B) The amendment by this act of division (A)(9) of section	2348
149.311 of the Revised Code, eliminating the application period	2349
beginning July 1, 2008, and ending June 30, 2009, takes effect	2350
when this act becomes law. The State Historic Preservation Officer	2351
shall not accept applications for that period, and the Director	2352
of Development shall not issue any rehabilitation tax credit	2353
certificates for that period.	2354

Section 4. The amendment by this act of sections 149.311,	2355
5725.151, 5733.47, 5747.76, and 5747.98 of the Revised Code and	2356
the enactment of Section 3 of this act provide for or are	2357
essential to the implementation of a tax levy. Therefore, under	2358
Ohio Constitution, Article II, Section 1d, the amendment and	2359
enactment are not subject to the referendum and go into immediate	2360
effect when this act becomes law.	2361

Section 5. All items in this section are hereby appropriated	2362
as designated out of any moneys in the state treasury to the	2363
credit of the designated fund that are not otherwise appropriated.	2364
For all appropriations made in this section, those in the first	2365
column are for fiscal year 2008 and those in the second column are	2366
for fiscal year 2009. The appropriations made in this section are	2367
in addition to any other appropriations made for the FY 2008-FY	2368
2009 biennium.	2369

AIR AIR QUALITY DEVELOPMENT AUTHORITY	2370

Appropriations

Coal Research/ Development Fund Group	2371

7046	898604		Coal Research and Development Fund		$	0		$	66,000,000		2372
TOTAL 7046 Coal Research/Development Fund Group					$	0		$	66,000,000		2373
TOTAL ALL BUDGET FUND GROUPS					$	0		$	66,000,000		2374

DEV DEPARTMENT OF DEVELOPMENT	2375

Appropriations

State Special Revenue Fund Group	2376

5Z30	195694		JF Bioproducts		$	0		$	20,000,000		2377
5Z30	195695		JF Biomedical		$	0		$	40,000,000		2378
TOTAL SSR State Special Revenue Fund Group					$	0		$	60,000,000		2379

Logistics and Distribution Infrastructure Fund Group	2380

7008	195698		Logistics and Distribution Infrastructure		$	0		$	50,000,000		2381
TOTAL 7008 Logistics and Distribution Infrastructure Fund Group					$	0		$	50,000,000		2382
TOTAL ALL BUDGET FUND GROUPS					$	0		$	110,000,000		2383

JF BIOPRODUCTS

2384

The foregoing appropriation item 195694, JF Bioproducts,	2385
shall be used for the Ohio Bioproducts Development Program	2386
established in section 184.25 of the Revised Code.	2387

JF BIOMEDICAL

2388

The foregoing appropriation item 195695, JF Biomedical,	2389
shall be used for the Ohio Biomedical Development Program	2390
established in section 184.26 of the Revised Code.	2391

LOGISTICS AND DISTRIBUTION INFRASTRUCTURE

2392

The foregoing appropriation item 195698, Logistics and	2393
Distribution Infrastructure, shall be used for eligible logistics	2394
and distribution projects as defined in section 166.01 of the	2395
Revised Code.	2396

Within the limits set forth in this section, the Director of	2397
Budget and Management shall establish accounts indicating the	2398
source and amount of funds for each appropriation made in this	2399
section, and shall determine the form and manner in which	2400
appropriation accounts shall be maintained. Expenditures from	2401
appropriations contained in this section shall be accounted for as	2402
though made in Am. Sub. H.B. 119 of the 127th General Assembly.	2403

The appropriations made in this section are subject to all	2404
provisions of Am. Sub. H.B. 119 of the 127th General Assembly that	2405
are generally applicable to such appropriations.	2406

Section 6. The Governor has informed the General Assembly of	2407
the Governor's intent to propose appropriations, and it is the	2408
intent of the General Assembly to appropriate $20,000,000 in	2409
fiscal year 2010 and $10,000,000 in fiscal year 2011 for the	2410
purposes of the Ohio Bioproducts Development Program established	2411
in section 184.25 of the Revised Code.	2412

Section 7. The Governor has informed the General Assembly of	2413
the Governor's intent to propose appropriations, and it is the	2414
intent of the General Assembly to appropriate $40,000,000 in	2415
fiscal year 2010 and $20,000,000 in fiscal year 2011 for the	2416
purposes of the Ohio Biomedical Development Program established	2417
in section 184.26 of the Revised Code.	2418

Section 8. The Governor has informed the General Assembly of	2419
the Governor's intent to propose appropriations, and it is the	2420
intent of the General Assembly to appropriate $80 million in	2421
fiscal year 2012 out of moneys transferred from the Jobs Fund	2422
(Fund 5Z30), created by Section 4 of Sub. H.B. 544 of the 127th	2423
General Assembly, to the Local Infrastructure Development Fund	2424
(Fund 7039) created by section 164.28 of the Revised Code for use	2425
by the Public Works Commission for capital improvement projects	2426
under Chapter 164. of the Revised Code.	2427

Section 9. On June 30, 2011, or as soon as possible	2428
thereafter, the Director of Budget and Management shall transfer	2429
the cash balance in the Jobs Fund (Fund 5Z30) to the General	2430
Revenue Fund. Upon completion of the transfer, the Jobs Fund (Fund	2431
5Z30) is abolished.	2432

Section 10. On or before June 30, 2013, or as soon as	2433
possible thereafter, the Director of the Public Works Commission	2434
shall notify the Director of Budget and Management that all	2435
projects funded by the Local Infrastructure Development Fund (Fund	2436
7039) have been completed and the Director of Budget and	2437
Management shall transfer the cash balance remaining in the Local	2438
Infrastructure Development Fund (Fund 7039) to the General	2439
Revenue Fund. Upon completion of the transfer, the Local	2440
Infrastructure Development Fund (Fund 7039) is abolished.	2441

Section 11. The Governor has informed the General Assembly of	2442
the Governor's intent to propose appropriations, and it is the	2443
intent of the General Assembly to appropriate $25,000,000 for	2444
fiscal year 2010 and $25,000,000 for fiscal year 2011 for	2445
eligible logistics and distribution infrastructure projects as	2446
defined in section 166.01 of the Revised Code.	2447

Section 12. The Ohio Public Facilities Commission, upon the	2448
request of the Director of the Ohio Coal Development Office of	2449
the Ohio Air Quality Development Authority with the advice of the	2450
Technical Advisory Committee created in section 1551.35 of the	2451
Revised Code and the affirmative vote of a majority of the	2452
members of the Ohio Air Quality Development Authority, is hereby	2453
authorized to issue and sell, in accordance with Section 15 of	2454
Article VIII, Ohio Constitution, and Chapter 151. and	2455
particularly sections 151.01 and 151.07 of the Revised Code,	2456
bonds and other obligations of the State of Ohio in an aggregate	2457
principal amount not to exceed $66,000,000 in addition to the	2458
issuance of obligations heretofore authorized by prior acts of	2459
the General Assembly. The obligations shall be dated, issued,	2460
and sold from time to time in such amounts as may be necessary	2461
to provide sufficient moneys to the credit of the Coal Research	2462
and Development Fund created in section 1555.15 of the Revised	2463
Code to pay costs charged to the fund when due.	2464

Section 13. The Governor has informed the General Assembly of	2465
the Governor's intent to propose appropriations, and it is the	2466
intent of the General Assembly to appropriate $100,000,000 in	2467
fiscal year 2010 and $100,000,000 in fiscal year 2011 for use by	2468
the Public Works Commission for the Local Transportation	2469
Improvement Program established in section 164.14 of the Revised	2470
Code. The appropriations will be supported by periodic transfers	2471
of cash made by the Director of Budget and Management from the	2472
Highway Operating Fund created in section 5735.291 of the Revised	2473
Code to the Local Transportation Improvement Program Fund created	2474
in section 164.14 of the Revised Code. These appropriations are	2475
in addition to any other appropriations that may be made for	2476
this purpose.	2477

Section 14. The Governor has informed the General Assembly of	2478
the Governor's intent to propose appropriations, and it is the	2479
intent of the General Assembly to appropriate from the Highway	2480
Capital Improvement Fund created in section 5528.53 of the	2481
Revised Code $100,000,000 in fiscal year 2010 and $100,000,000 in	2482
fiscal year 2011 for highway capital facilities and projects.	2483
Those appropriations will be supported by the issuance of general	2484
obligations authorized for that purpose under Article VIII,	2485
Section 2m of the Ohio Constitution. These appropriations are in	2486
addition to any other appropriations that may be made for this	2487
purpose.	2488

Section 15. All items set forth in this section are hereby	2489
appropriated out of any moneys in the state treasury, for the	2490
biennium ending on June 30, 2010, to the credit of the Advanced	2491
Energy Research and Development Taxable Fund (Fund 7004) that are	2492
not otherwise appropriated:	2493

AIR AIR QUALITY DEVELOPMENT AUTHORITY	2494

C89800		Advanced Energy R&D Taxable		$	9,000,000		2495
Total Air Quality Development Authority				$	9,000,000		2496
TOTAL Advanced Energy Research and Development							2497
Taxable Fund				$	9,000,000		2498

The foregoing appropriation item C89800, Advanced Energy R&D	2499
Taxable, shall be used for advanced energy projects in the manner	2500
provided in sections 3706.25 to 3706.29 of the Revised Code. The	2501
Executive Director of the Air Quality Development Authority may	2502
certify to the Director of Budget and Management that a need	2503
exists to appropriate investment earnings of Fund 7004 to be so	2504
used. If the Director of Budget and Management, pursuant to	2505
sections 3706.25 to 3706.29 of the Revised Code, determines that	2506
investment earnings are available to support additional	2507
appropriations, such amounts are hereby appropriated.	2508

Expenditures from appropriations contained in this section	2509
may be accounted as though made in the main capital appropriations	2510
act of the FY 2009-FY 2010 biennium of the 127th General Assembly.	2511
The appropriations made in this section are subject to all	2512
provisions of the FY 2009-FY 2010 biennial capital appropriations	2513
act of the 127th General Assembly that are generally applicable to	2514
such appropriations.	2515

Section 16. All items set forth in this section are hereby	2516
appropriated out of any moneys in the state treasury, for the	2517
biennium ending on June 30, 2010, to the credit of the Advanced	2518
Energy Research and Development Fund (Fund 7005) that are not	2519
otherwise appropriated:	2520

AIR AIR QUALITY DEVELOPMENT AUTHORITY	2521

C89801		Advanced Energy R&D		$	19,000,000		2522
Total Air Quality Development Authority				$	19,000,000		2523
TOTAL Advanced Energy Research and Development							2524
Fund				$	19,000,000		2525

The foregoing appropriation item C89801, Advanced Energy R&D,	2526
shall be used for advanced energy projects in the manner provided	2527
in sections 3706.25 to 3706.29 of the Revised Code. The Executive	2528
Director of the Air Quality Development Authority may certify to	2529
the Director of Budget and Management that a need exists to	2530
appropriate investment earnings of Fund 7005 to be so used. If	2531
the Director of Budget and Management, pursuant to sections	2532
3706.25 to 3706.29 of the Revised Code, determines that	2533
investment earnings are available to support additional	2534
appropriations, such amounts are hereby appropriated.	2535

Expenditures from appropriations contained in this section	2536
may be accounted as though made in the main capital appropriations	2537
act of the FY 2009-FY 2010 biennium of the 127th General Assembly.	2538
The appropriations made in this section are subject to all	2539
provisions of the FY 2009-FY 2010 biennial capital appropriations	2540
act of the 127th General Assembly that are generally applicable to	2541
such appropriations.	2542

Section 17. The Governor has informed the General Assembly of	2543
the Governor's intent to propose appropriations, and it is the	2544
intent of the General Assembly to appropriate amounts not to	2545
exceed $56 million for the biennium ending on June 30, 2012, from	2546
bond proceeds deposited in the state treasury to the credit of	2547
the Advanced Energy Research and Development Taxable Fund (Fund	2548
7004) and the Advanced Energy Research and Development Fund (Fund	2549
7005) for advanced energy projects and projects that use	2550
sustainable resources as provided in sections 3706.25 to 3706.29	2551
of the Revised Code.	2552

Section 18. All items set forth in this section are hereby	2553
appropriated out of any moneys in the state treasury, for the	2554
biennium ending on June 30, 2010, to the credit of the State	2555
Capital Improvements Fund (Fund 7038) that are not otherwise	2556
appropriated.	2557

Appropriations

PWC PUBLIC WORKS COMMISSION	2558

C15000		Local Public Infrastructure		$	120,000,000		2559
Total Public Works Commission				$	120,000,000		2560
TOTAL State Capital Improvements Fund				$	120,000,000		2561

The foregoing appropriation item C15000, Local Public	2562
Infrastructure, shall be used in accordance with sections 164.01	2563
to 164.12 of the Revised Code. The Director of the Public Works	2564
Commission may certify to the Director of Budget and Management	2565
that a need exists to appropriate investment earnings of Fund 7038	2566
to be used in accordance with sections 164.01 to 164.12 of the	2567
Revised Code. If the Director of Budget and Management, pursuant	2568
to division (D) of section 164.08 and section 164.12 of the	2569
Revised Code, determines that investment earnings are available to	2570
support additional appropriations, such amounts are hereby	2571
appropriated.	2572

Expenditures from appropriations contained in this section	2573
may be accounted as though made in the main capital appropriations	2574
act of the FY 2009-FY 2010 biennium of the 127th General Assembly.	2575
The appropriations made in this section are subject to all	2576
provisions of the FY 2009-FY 2010 biennial capital appropriations	2577
act of the 127th General Assembly that are generally applicable to	2578
such appropriations.	2579

Section 19. The Ohio Public Facilities Commission is hereby	2580
authorized to issue and sell, in accordance with Section 2p of	2581
Article VIII, Ohio Constitution, and pursuant to sections 151.01	2582
and 151.08 of the Revised Code, original obligations of the state,	2583
in an aggregate principal amount not to exceed $120,000,000, in	2584
addition to the original obligations heretofore authorized by	2585
prior acts of the General Assembly. These authorized obligations	2586
shall be issued and sold from time to time, subject to applicable	2587
constitutional and statutory limitations, as needed to ensure	2588
sufficient moneys to the credit of the State Capital Improvements	2589
Fund (Fund 7038) to pay costs of the state in financing or	2590
assisting in the financing of local subdivision capital	2591
improvement projects.	2592

Section 20. CAPITAL RELEASE BY THE DIRECTOR OF BUDGET AND	2593
MANAGEMENT	2594

Notwithstanding section 126.14 of the Revised Code,	2595
appropriations from the State Capital Improvement Fund (Fund 7038)	2596
shall be released upon presentation of a request to release the	2597
funds by the Director of the Public Works Commission to the	2598
Director of Budget and Management.	2599

Section 21. The Governor has informed the General Assembly of	2600
the Governor's intent to propose appropriations, and it is the	2601
intent of the General Assembly to appropriate, for the Ohio	2602
Innovation Partnership Co-op/Internship Program established	2603
under section 3333.72 of the Revised Code a minimum of	2604
$50,000,000 each fiscal year from fiscal year 2010 through	2605
fiscal year 2014.	2606

Section 22. The amendments to section 184.02 and enactments	2607
of sections 184.23, 184.24, 184.25, and 184.26 of the Revised Code	2608
are hereby repealed, effective June 30, 2011.	2609

Section 23.  The enactment of section 164.28 of the Revised	2610
Code is hereby repealed, effective June 30, 2013.	2611

Section 24. The amendment or enactment by this act of a	2612
codified or uncodified section listed below is exempt from the	2613
referendum under Ohio Constitution, Article II, Section 1d and	2614
section 1.471 of the Revised Code and takes effect immediately	2615
when this act becomes law:	2616

Sec. 164.28, 166.01, 166.02, 166.08, 166.11, 166.25, 166.26,	2617
166.30, 184.02, 184.23, 184.24, 184.25, 184.26, 1555.03	2618

Section 5.

2619