Sub. H. B. No. 554 LSC 127 2030-6

LSC 127 2030-6

127th General Assembly

Regular Session

2007-2008

Sub. H. B. No. 554

A BILL

To amend sections 149.311, 166.01, 166.02, 166.08,

166.11, 184.02, 1555.03, 3333.38, 3345.32,

3706.01, 5725.151, 5733.47, 5747.76, and

5747.98; to enact sections 164.28, 166.25,

166.26, 166.27, 166.30, 184.174, 184.23, 184.231,

184.24 to 184.26, 184.37, 3333.71 to 3333.81,

and 3706.25 to 3706.30 of the Revised Code; and

to amend Section 229.10 of Am. Sub. H.B. 67 of

the 127th General Assembly, to establish the Ohio

Bioproducts Development Program and Ohio

Biomedical Development Program to be administered

by the Third Frontier Commission, to establish

advisory boards to the Third Frontier Commission,

to expand the economic development programs

administered by the Department of Development to

include transportation logistics and distribution

infrastructure projects, to provide additional

money for capital improvement projects of local

subdivisions, to modify the authority of the Ohio

Coal Development Office, to provide for advanced

energy projects administered by the Ohio Air

Quality Development Authority, to establish the

Choose Ohio First Co-op/Internship Program, to

extend the historical building rehabilitation

tax credit, limit credit amounts, and require

regional distributive balance and economic

effects to be considered, to modify the

definition of an air quality facility, to create

minority outreach requirements for loan and grant

programs established under this bill, and to make

an appropriation.

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

Section 1. That sections 149.311, 166.01, 166.02, 166.08,	32
166.11, 184.02, 1555.03, 3333.38, 3345.32, 3706.01, 5725.151,	33
5733.47, 5747.76, and 5747.98 be amended and that sections	34
164.28, 166.25, 166.26, 166.27, 166.30, 184.174, 184.23, 184.231,	35
184.24, 184.25, 184.26, 184.37, 3333.71, 3333.72, 3333.73,	36
3333.74, 3333.75, 3333.76, 3333.77, 3333.78, 3333.79, 3333.80,	37
3333.81, 3706.25, 3706.26, 3706.27, 3706.28, 3706.29, and 3706.30	38
of the Revised Code be enacted to read as follows:	39

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

(1) "Historic building" means a building, including its	41
structural components, that is located in this state and that is	42
either individually listed on the national register of historic	43
places under 16 U.S.C. 470a, located in a registered historic	44
district, and certified by the state historic preservation officer	45
as being of historic significance to the district, or is	46
individually listed as a historic landmark designated by a local	47
government certified under 16 U.S.C. 470a(c).	48

(2) "Qualified rehabilitation expenditures" means	49
expenditures paid or incurred during the rehabilitation period,	50
and before and after that period as determined under 26 U.S.C. 47,	51
by an owner of a historic building to rehabilitate the building.	52
"Qualified rehabilitation expenditures" includes architectural or	53
engineering fees paid or incurred in connection with the	54
rehabilitation, and expenses incurred in the preparation of	55
nomination forms for listing on the national register of historic	56
places. "Qualified rehabilitation expenditures" does not include	57
any of the following:	58

(a) The cost of acquiring, expanding, or enlarging a historic	59
building;	60

(b) Expenditures attributable to work done to facilities	61
related to the building, such as parking lots, sidewalks, and	62
landscaping;	63

(3) "Owner" of a historic building means a person holding the	65
fee simple interest in the building. "Owner" does not include the	66
state or a state agency, or any political subdivision as defined	67
in section 9.23 of the Revised Code.	68

(4) "Certificate owner" means the owner of a historic	69
building to which a rehabilitation tax credit certificate was	70
issued under this section.	71

(5) "Registered historic district" means a historic district	72
listed in the national register of historic places under 16 U.S.C.	73
470a, a historic district designated by a local government	74
certified under 16 U.S.C. 470a(c), or a local historic district	75
certified under 36 C.F.R. 67.8 and 67.9.	76

(6) "Rehabilitation" means the process of repairing or	77
altering a historic building or buildings, making possible an	78
efficient use while preserving those portions and features of the	79
building and its site and environment that are significant to its	80
historic, architectural, and cultural values.	81

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

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

(b) If the rehabilitation initially was planned to be	86
completed in stages, a period chosen by the owner not to exceed	87
sixty months during which rehabilitation occurs.	88

(8) "State historic preservation officer" or "officer" means	89
the state historic preservation officer appointed by the governor	90
under 16 U.S.C. 470a.	91

(9) "Application period" means ~~either~~any of the following	92
time periods ~~during~~for which an application for a rehabilitation	93
tax credit certificate may be filed under this section:	94

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

(b) ~~July 1, 2008, through June 30, 2009~~July 1, 2009, through	96
June 30, 2010;	97

(B) ~~On or after July 1, 2007, but before July 1, 2009~~For any	99
application period, the owner of a historic building may apply	100
to the state historic preservation officer for a rehabilitation	101
tax credit certificate for qualified rehabilitation expenditures	102
paid or incurred after April 4, 2007, for rehabilitation of a	103
historic building. The form and manner of filing such	104
applications shall be prescribed by rule of the director of	105
development, and, except as otherwise provided in division (D) of	106
this section, applications expire at the end of each	107
application period. ~~Before July 1, 2007, the~~Each application	108
shall state the amount of qualified rehabilitation expenditures	109
the applicant estimates will be paid or incurred. The director	110
may require applicants to furnish documentation of such	111
estimates.	112

The director, after consultation with the tax commissioner	113
and in accordance with Chapter 119. of the Revised Code, shall	114
adopt rules that establish all of the following:	115

(1) Forms and procedures by which applicants may apply for	116
rehabilitation tax credit certificates;	117

(2) Criteria for reviewing, evaluating, and approving	118
applications for certificates within the ~~limitation on the number~~	119
~~of applications that may be approved in an application period~~	120
limitations under division (D) of this section, criteria for	121
assuring that the certificates issued encompass a mixture of high	122
and low qualified rehabilitation expenditures, and criteria for	123
issuing certificates under division (C)(3)(b) of this section;	124

(3) Eligibility requirements for obtaining a certificate	125
under this section;	126

(4) The form of rehabilitation tax credit certificates;

127

(5) Reporting requirements and monitoring procedures;

128

(6) Any other rules necessary to implement and administer	129
this section.	130

(C) The state historic preservation officer shall accept	131
applications ~~in the order in which they are filed. Within seven~~	132
~~days after an application is filed, the officer shall~~and forward	133
itthem to the director of development, who shall review the	134
~~application~~applications and determine whether all of the	135
following criteria are met:	136

(1) That the building that is the subject of the application	137
is a historic building and the applicant is the owner of the	138
building;	139

(2) That the rehabilitation will satisfy standards prescribed	140
by the United States secretary of the interior under 16 U.S.C.	141
470, et seq., as amended, and 36 C.F.R. 67.7 or a successor to	142
that section;	143

(3) That receiving a rehabilitation tax credit certificate	144
under this section is a major factor in:	145

(a) The applicant's decision to rehabilitate the historic	146
building; or	147

(b) To increase the level of investment in such	148
rehabilitation.	149

An applicant shall demonstrate to the satisfaction of the	150
state historic preservation officer and director of development	151
that the rehabilitation will satisfy the standards described in	152
division (C)(2) of this section before the applicant begins the	153
physical rehabilitation of the historic building.	154

(D) ~~If the~~(1) The director of development may approve an	155
application and issue a rehabilitation tax credit certificate to	156
an applicant only if the director determines that the criteria in	157
divisions (C)(1), (2), and (3) of this section are met~~, the~~	158
~~director, in conjunction with the tax commissioner, shall conduct~~	159
~~a cost and benefit analysis for the historic building that is the~~	160
~~subject of an application filed under this section to determine~~	161
~~whether rehabilitation of the historic building, including~~	162
~~activities during the construction phase of the rehabilitation,~~	163
~~will result in a net revenue gain in state and local taxes. The~~	164
~~director shall not approve an application and issue a~~	165
~~rehabilitation tax credit certificate to an applicant unless the~~	166
~~cost and benefit analysis of the historic building determines~~	167
~~that there will be a net revenue gain in state and local taxes~~	168
~~once the building is used. A~~. The director shall consider the	169
potential economic impact and the regional distributive balance of	170
the credits throughout the state.	171

(2) A rehabilitation tax credit certificate shall not be	172
issued before rehabilitation of a historic building is	173
completed or for an amount greater than the estimated amount	174
furnished by the applicant on the application for such	175
certificate and approved by the director. The director shall not	176
approve more than ~~one hundred applications in~~a total of sixty	177
million dollars of rehabilitation tax credits for an application	178
period.	179

(3) Of the sixty million dollars approved for application	180
periods July 1, 2009, through June 30, 2010, and July 1, 2010,	181
through June 30, 2011, forty-five million dollars shall be	182
reserved in each application period for the award of	183
rehabilitation tax credit certificates to applicants who filed	184
completed applications before March 21, 2008, who have not	185
withdrawn the application, and who have not yet been approved to	186
receive a certificate, and for whose rehabilitation the director	187
determines meets the criteria in divisions (C)(1), (2), and (3)	188
of this section. If the total amount of credits awarded for such	189
applications is less than forty-five million dollars in an	190
application period, the remainder shall be made available for	191
other qualifying applications for that application period.	192

(4) If an applicant whose application is approved for receipt	193
of a rehabilitation tax credit certificate fails to provide to	194
the director of development sufficient evidence of reviewable	195
progress, including a viable financial plan, copies of final	196
construction drawings, and evidence that the applicant has	197
obtained all historic approvals within twelve months after the	198
date the applicant received notification of approval, or if the	199
applicant fails to provide evidence to the director of development	200
that the applicant has secured and closed on financing for the	201
rehabilitation within eighteen months after receiving notification	202
of approval, the director shall notify the applicant that the	203
approval has been rescinded. Credits that would have been	204
available to an applicant whose approval was rescinded shall be	205
available for other qualified applicants. Nothing in this division	206
prohibits an applicant whose approval has been rescinded from	207
submitting a new application for a rehabilitation tax credit	208
certificate.	209

(E) Issuance of a certificate represents a finding by the	210
director of development of the matters described in divisions	211
(C)(1), (2), and (3) of this section only; issuance of a	212
certificate does not represent a verification or certification by	213
the director of the amount of qualified rehabilitation	214
expenditures for which a tax credit may be claimed under section	215
5725.151, 5733.47, or 5747.76 of the Revised Code. The amount of	216
qualified rehabilitation expenditures for which a tax credit may	217
be claimed is subject to inspection and examination by the tax	218
commissioner or employees of the commissioner under section	219
5703.19 of the Revised Code and any other applicable law. Upon the	220
issuance of a certificate, the director shall certify to the tax	221
commissioner, in the form and manner requested by the tax	222
commissioner, the name of the applicant, the amount of qualified	223
rehabilitation expenditures shown on the certificate, and any	224
other information required by the rules adopted under this	225
section.	226

(F)(1) On or before the first day of December in 2007, 2008,	227
~~and~~ 2009, 2010, and 2011, the director of development and tax	228
commissioner jointly shall submit to the president of the senate	229
and the speaker of the house of representatives a report on the	230
tax credit program established under this section and sections	231
5725.151, 5733.47, and 5747.76 of the Revised Code. The report	232
shall present an overview of the program and shall include	233
information on the number of rehabilitation tax credit	234
certificates issued under this section during an application	235
period, an update on the status of each historic building for	236
which an application was approved under this section, the dollar	237
amount of the tax credits granted under sections 5725.151,	238
5733.47, and 5747.76 of the Revised Code, and any other	239
information the director and commissioner consider relevant to	240
the topics addressed in the report.	241

(2) On or before December 1, ~~2010~~2012, the director of	242
development and tax commissioner jointly shall submit to the	243
president of the senate and the speaker of the house of	244
representatives a comprehensive report that includes the	245
information required by division (F)(1) of this section and a	246
detailed analysis of the effectiveness of issuing tax credits for	247
rehabilitating historic buildings. The report shall be prepared	248
with the assistance of an economic research organization jointly	249
chosen by the director and commissioner.	250

Sec. 164.28. The local infrastructure development fund is	251
hereby created in the state treasury. The fund shall consist of	252
cash transferred from the jobs fund created in the state treasury	253
by Section 4 of Sub. H.B. 544 of the 127th general assembly.	254
Money in the fund shall be used to provide grants for local	255
infrastructure development and for capital improvement projects.	256
All investment earnings of the fund shall be credited to the fund.	257

Sec. 166.01. As used in this chapter:

258

(A) "Allowable costs" means all or part of the costs of	259
project facilities, eligible projects, eligible innovation	260
projects, or eligible research and development projects, eligible	261
advanced energy projects, or eligible logistics and distribution	262
projects, including costs of acquiring, constructing,	263
reconstructing, rehabilitating, renovating, enlarging, improving,	264
equipping, or furnishing project facilities, eligible projects,	265
eligible innovation projects, or eligible research and development	266
projects, eligible advanced energy projects, or eligible logistics	267
and distribution projects, site clearance and preparation,	268
supplementing and relocating public capital improvements or	269
utility facilities, designs, plans, specifications, surveys,	270
studies, and estimates of costs, expenses necessary or incident	271
to determining the feasibility or practicability of assisting an	272
eligible project, an eligible innovation project, or an eligible	273
research and development project, an eligible advanced energy	274
project, or an eligible logistics and distribution project, or	275
providing project facilities or facilities related to an eligible	276
project, an eligible innovation project or, an eligible research	277
and development project, an eligible advanced energy project, or	278
an eligible logistics and distribution project, architectural,	279
engineering, and legal services fees and expenses, the costs of	280
conducting any other activities as part of a voluntary action, and	281
such other expenses as may be necessary or incidental to the	282
establishment or development of an eligible project, an eligible	283
innovation project, or an eligible research and development	284
project, an eligible advanced energy project, or an eligible	285
logistics and distribution project, and reimbursement of moneys	286
advanced or applied by any governmental agency or other person	287
for allowable costs.	288

(B) "Allowable innovation costs" includes allowable costs of	289
eligible innovation projects and, in addition, includes the costs	290
of research and development of eligible innovation projects;	291
obtaining or creating any requisite software or computer hardware	292
related to an eligible innovation project or the products or	293
services associated therewith; testing (including, without	294
limitation, quality control activities necessary for initial	295
production), perfecting, and marketing of such products and	296
services; creating and protecting intellectual property related to	297
an eligible innovation project or any products or services related	298
thereto, including costs of securing appropriate patent,	299
trademark, trade secret, trade dress, copyright, or other form of	300
intellectual property protection for an eligible innovation	301
project or related products and services; all to the extent that	302
such expenditures could be capitalized under then-applicable	303
generally accepted accounting principles; and the reimbursement of	304
moneys advanced or applied by any governmental agency or other	305
person for allowable innovation costs.	306

(C) "Eligible innovation project" includes an eligible	307
project, including any project facilities associated with an	308
eligible innovation project and, in addition, includes all	309
tangible and intangible property related to a new product or	310
process based on new technology or the creative application of	311
existing technology, including research and development, product	312
or process testing, quality control, market research, and related	313
activities, that is to be acquired, established, expanded,	314
remodeled, rehabilitated, or modernized for industry, commerce,	315
distribution, or research, or any combination thereof, the	316
operation of which, alone or in conjunction with other eligible	317
projects, eligible innovation projects, or innovation property,	318
will create new jobs or preserve existing jobs and employment	319
opportunities and improve the economic welfare of the people of	320
the state.	321

(D) "Eligible project" means project facilities to be	322
acquired, established, expanded, remodeled, rehabilitated, or	323
modernized for industry, commerce, distribution, or research, or	324
any combination thereof, the operation of which, alone or in	325
conjunction with other facilities, will create new jobs or	326
preserve existing jobs and employment opportunities and improve	327
the economic welfare of the people of the state. "Eligible	328
project" includes, without limitation, a voluntary action. For	329
purposes of this division, "new jobs" does not include existing	330
jobs transferred from another facility within the state, and	331
"existing jobs" includes only those existing jobs with work places	332
within the municipal corporation or unincorporated area of the	333
county in which the eligible project is located.	334

"Eligible project" does not include project facilities to be	335
acquired, established, expanded, remodeled, rehabilitated, or	336
modernized for industry, commerce, distribution, or research, or	337
any combination of industry, commerce, distribution, or research,	338
if the project facilities consist solely of	339
point-of-final-purchase retail facilities. If the project	340
facilities consist of both point-of-final-purchase retail	341
facilities and nonretail facilities, only the portion of the	342
project facilities consisting of nonretail facilities is an	343
eligible project. If a warehouse facility is part of a	344
point-of-final-purchase retail facility and supplies only that	345
facility, the warehouse facility is not an eligible project.	346
Catalog distribution facilities are not considered	347
point-of-final-purchase retail facilities for purposes of this	348
paragraph, and are eligible projects.	349

(E) "Eligible research and development project" means an	350
eligible project, including project facilities, comprising,	351
within, or related to, a facility or portion of a facility at	352
which research is undertaken for the purpose of discovering	353
information that is technological in nature and the application of	354
which is intended to be useful in the development of a new or	355
improved product, process, technique, formula, or invention, a new	356
product or process based on new technology, or the creative	357
application of existing technology.	358

(F) "Financial assistance" means inducements under division	359
(B) of section 166.02 of the Revised Code, loan guarantees under	360
section 166.06 of the Revised Code, and direct loans under section	361
166.07 of the Revised Code.	362

(G) "Governmental action" means any action by a governmental	363
agency relating to the establishment, development, or operation of	364
an eligible project, eligible innovation project, or eligible	365
research and development project, eligible advanced energy	366
project, or eligible logistics and distribution project, and	367
project facilities that the governmental agency acting has	368
authority to take or provide for the purpose under law,	369
including, but not limited to, actions relating to contracts and	370
agreements, zoning, building, permits, acquisition and disposition	371
of property, public capital improvements, utility and	372
transportation service, taxation, employee recruitment and	373
training, and liaison and coordination with and among governmental	374
agencies.	375

(H) "Governmental agency" means the state and any state	376
department, division, commission, institution or authority; a	377
municipal corporation, county, or township, and any agency	378
thereof, and any other political subdivision or public corporation	379
or the United States or any agency thereof; any agency,	380
commission, or authority established pursuant to an interstate	381
compact or agreement; and any combination of the above.	382

(I) "Innovation financial assistance" means inducements under	383
division (B) of section 166.12 of the Revised Code, innovation	384
Ohio loan guarantees under section 166.15 of the Revised Code, and	385
innovation Ohio loans under section 166.16 of the Revised Code.	386

(J) "Innovation Ohio loan guarantee reserve requirement"	387
means, at any time, with respect to innovation loan guarantees	388
made under section 166.15 of the Revised Code, a balance in the	389
innovation Ohio loan guarantee fund equal to the greater of twenty	390
per cent of the then-outstanding principal amount of all	391
outstanding innovation loan guarantees made pursuant to section	392
166.15 of the Revised Code or fifty per cent of the principal	393
amount of the largest outstanding guarantee made pursuant to	394
section 166.15 of the Revised Code.	395

(K) "Innovation property" includes property and also includes	396
software, inventory, licenses, contract rights, goodwill,	397
intellectual property, including without limitation, patents,	398
patent applications, trademarks and service marks, and trade	399
secrets, and other tangible and intangible property, and any	400
rights and interests in or connected to the foregoing.	401

(L) "Loan guarantee reserve requirement" means, at any time,	402
with respect to loan guarantees made under section 166.06 of the	403
Revised Code, a balance in the loan guarantee fund equal to the	404
greater of twenty per cent of the then-outstanding principal	405
amount of all outstanding guarantees made pursuant to section	406
166.06 of the Revised Code or fifty per cent of the principal	407
amount of the largest outstanding guarantee made pursuant to	408
section 166.06 of the Revised Code.	409

(M) "Person" means any individual, firm, partnership,	410
association, corporation, or governmental agency, and any	411
combination thereof.	412

(N) "Project facilities" means buildings, structures, and	413
other improvements, and equipment and other property, excluding	414
small tools, supplies, and inventory, and any one, part of, or	415
combination of the above, comprising all or part of, or serving or	416
being incidental to, an eligible project, an eligible innovation	417
project, or an eligible research and development project, an	418
eligible advanced energy project, or an eligible logistics and	419
distribution project, including, but not limited to, public	420
capital improvements.	421

(O) "Property" means real and personal property and interests	422
therein.	423

(P) "Public capital improvements" means capital improvements	424
or facilities that any governmental agency has authority to	425
acquire, pay the costs of, own, maintain, or operate, or to	426
contract with other persons to have the same done, including, but	427
not limited to, highways, roads, streets, water and sewer	428
facilities, railroad and other transportation facilities, and air	429
and water pollution control and solid waste disposal facilities.	430
For purposes of this division, "air pollution control facilities"	431
includes, without limitation, solar, geothermal, biofuel, biomass,	432
wind, hydro, wave, and other advanced energy projects as defined	433
in section 3706.25 of the Revised Code.	434

(Q) "Research and development financial assistance" means	435
inducements under section 166.17 of the Revised Code, research and	436
development loans under section 166.21 of the Revised Code, and	437
research and development tax credits under sections 5733.352 and	438
5747.331 of the Revised Code.	439

(R) "Targeted innovation industry sectors" means industry	440
sectors involving the production or use of advanced materials,	441
instruments, controls and electronics, power and propulsion,	442
biosciences, and information technology, or such other sectors as	443
may be designated by the director of development.	444

(S) "Voluntary action" means a voluntary action, as defined	445
in section 3746.01 of the Revised Code, that is conducted under	446
the voluntary action program established in Chapter 3746. of the	447
Revised Code.	448

(T) "Project financing obligations" means obligations issued	449
pursuant to section 166.08 of the Revised Code other than	450
obligations for which the bond proceedings provide that bond	451
service charges shall be paid from receipts of the state	452
representing gross profit on the sale of spirituous liquor as	453
referred to in division (B)(4) of section 4310.10 of the Revised	454
Code.	455

(U) "Regional economic development entity" means an entity	456
that is under contract with the director of development to	457
administer a loan program under this chapter in a particular area	458
of this state.	459

(V) "Advanced energy research and development fund" means the	460
advanced energy research and development fund created in section	461
3706.27 of the Revised Code.	462

(W) "Advanced energy research and development taxable fund"	463
means the advanced energy research and development taxable fund	464
created in section 3706.27 of the Revised Code.	465

(X) "Eligible advanced energy project" means an eligible	466
project that is an "advanced energy project" as defined in section	467
3706.25 of the Revised Code.	468

(Y) "Eligible logistics and distribution project" means an	469
eligible project, including project facilities, to be acquired,	470
established, expanded, remodeled, rehabilitated, or modernized for	471
transportation logistics and distribution infrastructure purposes.	472
As used in this division, "transportation logistics and	473
distribution infrastructure purposes" means promoting, providing	474
for, and enabling improvements to the ground, air, and water	475
transportation infrastructure comprising the transportation system	476
in this state, including, without limitation, highways, streets,	477
roads, bridges, railroads carrying freight, and air and water	478
ports and port facilities, and all related supporting facilities.	479

Sec. 166.02. (A) The general assembly finds that many local	480
areas throughout the state are experiencing economic stagnation or	481
decline, and that the economic development ~~program~~programs	482
provided for in ~~sections 166.01 to 166.11 of the Revised Code~~	483
this chapter will constitute a deserved, necessary reinvestment	484
by the state in those areas, materially contribute to their	485
economic revitalization, and result in improving the economic	486
welfare of all the people of the state. Accordingly, it is	487
declared to be the public policy of the state, through the	488
operations ~~under sections 166.01 to 166.11~~ of ~~the Revised Code~~	489
this chapter and other applicable laws adopted pursuant to Section	490
2p or 13 of Article VIII, Ohio Constitution, and other authority	491
vested in the general assembly, to assist in and facilitate the	492
establishment or development of eligible projects or assist and	493
cooperate with any governmental agency in achieving such purpose.	494

(B) In furtherance of such public policy and to implement	495
such purpose, the director of development may:	496

(1) After consultation with appropriate governmental	497
agencies, enter into agreements with persons engaged in industry,	498
commerce, distribution, or research and with governmental agencies	499
to induce such persons to acquire, construct, reconstruct,	500
rehabilitate, renovate, enlarge, improve, equip, or furnish, or	501
otherwise develop, eligible projects and make provision therein	502
for project facilities and governmental actions, as authorized by	503
this chapter and other applicable laws, subject to any required	504
actions by the general assembly or the controlling board and	505
subject to applicable local government laws and regulations;	506

(2) Provide for the guarantees and loans as provided for in	507
sections 166.06 and 166.07 of the Revised Code;	508

(3) Subject to release of such moneys by the controlling	509
board, contract for labor and materials needed for, or contract	510
with others, including governmental agencies, to provide, project	511
facilities the allowable costs of which are to be paid for or	512
reimbursed from moneys in the facilities establishment fund, and	513
contract for the operation of such project facilities;	514

(4) Subject to release thereof by the controlling board, from	515
moneys in the facilities establishment fund acquire or contract to	516
acquire by gift, exchange, or purchase, including the obtaining	517
and exercise of purchase options, property, and convey or	518
otherwise dispose of, or provide for the conveyance or disposition	519
of, property so acquired or contracted to be acquired by sale,	520
exchange, lease, lease purchase, conditional or installment sale,	521
transfer, or other disposition, including the grant of an option	522
to purchase, to any governmental agency or to any other person	523
without necessity for competitive bidding and upon such terms and	524
conditions and manner of consideration pursuant to and as the	525
director determines to be appropriate to satisfy the objectives of	526
sections 166.01 to 166.11 of the Revised Code;	527

(5) Retain the services of or employ financial consultants,	528
appraisers, consulting engineers, superintendents, managers,	529
construction and accounting experts, attorneys, and employees,	530
agents, and independent contractors as are necessary in the	531
director's judgment and fix the compensation for their services;	532

(6) Receive and accept from any person grants, gifts, and	533
contributions of money, property, labor, and other things of	534
value, to be held, used and applied only for the purpose for which	535
such grants, gifts, and contributions are made;	536

(7) Enter into appropriate arrangements and agreements with	537
any governmental agency for the taking or provision by that	538
governmental agency of any governmental action;	539

(8) Do all other acts and enter into contracts and execute	540
all instruments necessary or appropriate to carry out the	541
provisions of ~~Chapter 166. of the Revised Code~~this chapter;	542

(9) Adopt rules to implement any of the provisions of ~~Chapter~~	543
~~166. of the Revised Code~~this chapter applicable to the director.	544

(C) The determinations by the director that facilities	545
constitute eligible projects, that facilities are project	546
facilities, that costs of such facilities are allowable costs, and	547
all other determinations relevant thereto or to an action taken or	548
agreement entered into shall be conclusive for purposes of the	549
validity and enforceability of rights of parties arising from	550
actions taken and agreements entered into under this chapter.	551

(D) Except as otherwise prescribed in ~~Chapter 166. of the~~	552
~~Revised Code~~this chapter, all expenses and obligations incurred	553
by the director in carrying out the director's powers and in	554
exercising the director's duties under ~~Chapter 166. of the Revised~~	555
~~Code~~this chapter, shall be payable solely from, as appropriate,	556
moneys in the facilities establishment fund, the loan guarantee	557
fund, the innovation Ohio loan guarantee fund, the innovation Ohio	558
loan fund, the research and development loan fund, the logistics	559
and distribution infrastructure fund, or moneys appropriated for	560
such purpose by the general assembly. ~~Chapter 166. of the Revised~~	561
~~Code~~This chapter does not authorize the director or the issuing	562
authority under section 166.08 of the Revised Code to incur bonded	563
indebtedness of the state or any political subdivision thereof, or	564
to obligate or pledge moneys raised by taxation for the payment of	565
any bonds or notes issued or guarantees made pursuant to ~~Chapter~~	566
~~166. of the Revised Code~~this chapter.	567

(E) No financial assistance for project facilities shall be	568
provided under this chapter unless the provisions of the agreement	569
providing for such assistance specify that all wages paid to	570
laborers and mechanics employed on such project facilities for	571
which the assistance is granted shall be paid at the prevailing	572
rates of wages of laborers and mechanics for the class of work	573
called for by such project facilities, which wages shall be	574
determined in accordance with the requirements of Chapter 4115. of	575
the Revised Code for determination of prevailing wage rates,	576
provided that the requirements of this division do not apply where	577
the federal government or any of its agencies provides financing	578
assistance as to all or any part of the funds used in connection	579
with such project facilities and prescribes predetermined minimum	580
wages to be paid to such laborers and mechanics; and provided	581
further that should a nonpublic user beneficiary of the eligible	582
project undertake, as part of the eligible project, construction	583
to be performed by its regular bargaining unit employees who are	584
covered under a collective bargaining agreement which was in	585
existence prior to the date of the document authorizing such	586
assistance then, in that event, the rate of pay provided under the	587
collective bargaining agreement may be paid to such employees.	588

(F) Any governmental agency may enter into an agreement with	589
the director, any other governmental agency, or a person to be	590
assisted under this chapter, to take or provide for the purposes	591
of this chapter any governmental action it is authorized to take	592
or provide, and to undertake on behalf and at the request of the	593
director any action which the director is authorized to undertake	594
pursuant to divisions (B)(3), (4), and (5) of this section or	595
divisions (B)(3), (4), and (5) of section 166.12 of the Revised	596
Code. Governmental agencies of the state shall cooperate with and	597
provide assistance to the director of development and the	598
controlling board in the exercise of their respective functions	599
under this chapter.	600

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

601

(1) "Bond proceedings" means the resolution, order, trust	602
agreement, indenture, lease, and other agreements, amendments and	603
supplements to the foregoing, or any one or more or combination	604
thereof, authorizing or providing for the terms and conditions	605
applicable to, or providing for the security or liquidity of,	606
obligations issued pursuant to this section, and the provisions	607
contained in such obligations.	608

(2) "Bond service charges" means principal, including	609
mandatory sinking fund requirements for retirement of obligations,	610
and interest, and redemption premium, if any, required to be paid	611
by the state on obligations.	612

(3) "Bond service fund" means the applicable fund and	613
accounts therein created for and pledged to the payment of bond	614
service charges, which may be, or may be part of, the economic	615
development bond service fund created by division (S) of this	616
section including all moneys and investments, and earnings from	617
investments, credited and to be credited thereto.	618

(4) "Issuing authority" means the treasurer of state, or the	619
officer who by law performs the functions of such officer.	620

(5) "Obligations" means bonds, notes, or other evidence of	621
obligation including interest coupons pertaining thereto, issued	622
pursuant to this section.	623

(6) "Pledged receipts" means all receipts of the state	624
representing the gross profit on the sale of spirituous liquor, as	625
referred to in division (B)(4) of section 4301.10 of the Revised	626
Code, after paying all costs and expenses of the division of	627
liquor control and providing an adequate working capital reserve	628
for the division of liquor control as provided in that division,	629
but excluding the sum required by the second paragraph of section	630
4301.12 of the Revised Code, as in effect on May 2, 1980, to be	631
paid into the state treasury; moneys accruing to the state from	632
the lease, sale, or other disposition, or use, of project	633
facilities, and from the repayment, including interest, of loans	634
made from proceeds received from the sale of obligations; accrued	635
interest received from the sale of obligations; income from the	636
investment of the special funds; and any gifts, grants, donations,	637
and pledges, and receipts therefrom, available for the payment of	638
bond service charges.	639

(7) "Special funds" or "funds" means, except where the	640
context does not permit, the bond service fund, and any other	641
funds, including reserve funds, created under the bond	642
proceedings, and the economic development bond service fund	643
created by division (S) of this section to the extent provided in	644
the bond proceedings, including all moneys and investments, and	645
earnings from investment, credited and to be credited thereto.	646

(B) Subject to the limitations provided in section 166.11 of	647
the Revised Code, the issuing authority, upon the certification by	648
the director of development or, with respect to eligible advanced	649
energy projects, the Ohio air quality development authority to the	650
issuing authority of the amount of moneys or additional moneys	651
needed in the facilities establishment fund, the loan guarantee	652
fund, the innovation Ohio loan fund, the innovation Ohio loan	653
guarantee fund, or the research and development loan fund, the	654
logistics and distribution infrastructure fund, the advanced	655
energy research and development fund, or the advanced energy	656
research and development taxable fund, as applicable, for the	657
purpose of paying, or making loans for, allowable costs from the	658
facilities establishment fund, allowable innovation costs from	659
the innovation Ohio loan fund, or allowable costs from the	660
research and development loan fund, allowable costs from the	661
logistics and distribution infrastructure fund, allowable costs	662
from the advanced energy research and development fund, or	663
allowable costs from the advanced energy research and development	664
taxable fund, as applicable, or needed for capitalized interest,	665
for funding reserves, and for paying costs and expenses incurred	666
in connection with the issuance, carrying, securing, paying,	667
redeeming, or retirement of the obligations or any obligations	668
refunded thereby, including payment of costs and expenses relating	669
to letters of credit, lines of credit, insurance, put agreements,	670
standby purchase agreements, indexing, marketing, remarketing and	671
administrative arrangements, interest swap or hedging agreements,	672
and any other credit enhancement, liquidity, remarketing, renewal,	673
or refunding arrangements, all of which are authorized by this	674
section, or providing moneys for the loan guarantee fund or the	675
innovation Ohio loan guarantee fund, as provided in this chapter	676
or needed for the purposes of funds established in accordance with	677
or pursuant to sections 122.35, 122.42, 122.54, 122.55, 122.56,	678
122.561, 122.57, and 122.80 of the Revised Code which are within	679
the authorization of Section 13 of Article VIII, Ohio	680
Constitution, or, with respect to certain eligible advanced energy	681
projects, Section 2p of Article VIII, Ohio Constitution, shall	682
issue obligations of the state under this section in the required	683
amount; provided that such obligations may be issued to satisfy	684
the covenants in contracts of guarantee made under section 166.06	685
or 166.15 of the Revised Code, notwithstanding limitations	686
otherwise applicable to the issuance of obligations under this	687
section. The proceeds of such obligations, except for the portion	688
to be deposited in special funds, including reserve funds, as may	689
be provided in the bond proceedings, shall as provided in the bond	690
proceedings be deposited by the director of development to the	691
facilities establishment fund, the loan guarantee fund, the	692
innovation Ohio loan guarantee fund, the innovation Ohio loan	693
fund, or the research and development loan fund, or the logistics	694
and distribution infrastructure fund, or be deposited by the Ohio	695
air quality development authority to the advanced energy research	696
and development fund or the advanced energy research and	697
development taxable fund. Bond proceedings for project	698
financing obligations may provide that the proceeds derived from	699
the issuance of such obligations shall be deposited into such	700
fund or funds provided for in the bond proceedings and, to the	701
extent provided for in the bond proceedings, such proceeds shall	702
be deemed to have been deposited into the facilities	703
establishment fund and transferred to such fund or funds. The	704
issuing authority may appoint trustees, paying agents, and	705
transfer agents and may retain the services of financial	706
advisors, accounting experts, and attorneys, and retain or	707
contract for the services of marketing, remarketing, indexing,	708
and administrative agents, other consultants, and independent	709
contractors, including printing services, as are necessary in the	710
issuing authority's judgment to carry out this section. The costs	711
of such services are allowable costs payable from the facilities	712
establishment fund or the research and development loan fund or,	713
allowable innovation costs payable from the innovation Ohio loan	714
fund, or allowable costs payable from the logistics and	715
distribution infrastructure fund, the advanced energy research	716
and development fund, or the advanced energy research and	717
development taxable fund, as applicable.	718

(C) The holders or owners of such obligations shall have no	719
right to have moneys raised by taxation obligated or pledged, and	720
moneys raised by taxation shall not be obligated or pledged, for	721
the payment of bond service charges. Such holders or owners shall	722
have no rights to payment of bond service charges from any moneys	723
accruing to the state from the lease, sale, or other disposition,	724
or use, of project facilities, or from payment of the principal of	725
or interest on loans made, or fees charged for guarantees made, or	726
from any money or property received by the director, treasurer of	727
state, or the state under Chapter 122. of the Revised Code, or	728
from any other use of the proceeds of the sale of the obligations,	729
and no such moneys may be used for the payment of bond service	730
charges, except for accrued interest, capitalized interest, and	731
reserves funded from proceeds received upon the sale of the	732
obligations and except as otherwise expressly provided in the	733
applicable bond proceedings pursuant to written directions by the	734
director. The right of such holders and owners to payment of bond	735
service charges is limited to all or that portion of the pledged	736
receipts and those special funds pledged thereto pursuant to the	737
bond proceedings in accordance with this section, and each such	738
obligation shall bear on its face a statement to that effect.	739

(D) Obligations shall be authorized by resolution or order of	740
the issuing authority and the bond proceedings shall provide for	741
the purpose thereof and the principal amount or amounts, and shall	742
provide for or authorize the manner or agency for determining the	743
principal maturity or maturities, not exceeding twenty-five years	744
from the date of issuance, the interest rate or rates or the	745
maximum interest rate, the date of the obligations and the dates	746
of payment of interest thereon, their denomination, and the	747
establishment within or without the state of a place or places of	748
payment of bond service charges. Sections 9.98 to 9.983 of the	749
Revised Code are applicable to obligations issued under this	750
section, subject to any applicable limitation under section 166.11	751
of the Revised Code. The purpose of such obligations may be stated	752
in the bond proceedings in terms describing the general purpose or	753
purposes to be served. The bond proceedings also shall provide,	754
subject to the provisions of any other applicable bond	755
proceedings, for the pledge of all, or such part as the issuing	756
authority may determine, of the pledged receipts and the	757
applicable special fund or funds to the payment of bond service	758
charges, which pledges may be made either prior or subordinate to	759
other expenses, claims, or payments, and may be made to secure the	760
obligations on a parity with obligations theretofore or thereafter	761
issued, if and to the extent provided in the bond proceedings. The	762
pledged receipts and special funds so pledged and thereafter	763
received by the state are immediately subject to the lien of such	764
pledge without any physical delivery thereof or further act, and	765
the lien of any such pledges is valid and binding against all	766
parties having claims of any kind against the state or any	767
governmental agency of the state, irrespective of whether such	768
parties have notice thereof, and shall create a perfected security	769
interest for all purposes of Chapter 1309. of the Revised Code,	770
without the necessity for separation or delivery of funds or for	771
the filing or recording of the bond proceedings by which such	772
pledge is created or any certificate, statement or other document	773
with respect thereto; and the pledge of such pledged receipts and	774
special funds is effective and the money therefrom and thereof may	775
be applied to the purposes for which pledged without necessity for	776
any act of appropriation. Every pledge, and every covenant and	777
agreement made with respect thereto, made in the bond proceedings	778
may therein be extended to the benefit of the owners and holders	779
of obligations authorized by this section, and to any trustee	780
therefor, for the further security of the payment of the bond	781
service charges.	782

(E) The bond proceedings may contain additional provisions as	783
to:	784

(1) The redemption of obligations prior to maturity at the	785
option of the issuing authority at such price or prices and under	786
such terms and conditions as are provided in the bond proceedings;	787

(2) Other terms of the obligations;

788

(3) Limitations on the issuance of additional obligations;

789

(4) The terms of any trust agreement or indenture securing	790
the obligations or under which the same may be issued;	791

(5) The deposit, investment and application of special funds,	792
and the safeguarding of moneys on hand or on deposit, without	793
regard to Chapter 131. or 135. of the Revised Code, but subject to	794
any special provisions of this chapter, with respect to particular	795
funds or moneys, provided that any bank or trust company which	796
acts as depository of any moneys in the special funds may furnish	797
such indemnifying bonds or may pledge such securities as required	798
by the issuing authority;	799

(6) Any or every provision of the bond proceedings being	800
binding upon such officer, board, commission, authority, agency,	801
department, or other person or body as may from time to time have	802
the authority under law to take such actions as may be necessary	803
to perform all or any part of the duty required by such provision;	804

(7) Any provision that may be made in a trust agreement or	805
indenture;	806

(8) Any other or additional agreements with the holders of	807
the obligations, or the trustee therefor, relating to the	808
obligations or the security therefor, including the assignment of	809
mortgages or other security obtained or to be obtained for loans	810
under section 122.43, 166.07, or 166.16 of the Revised Code.	811

(F) The obligations may have the great seal of the state or a	812
facsimile thereof affixed thereto or printed thereon. The	813
obligations and any coupons pertaining to obligations shall be	814
signed or bear the facsimile signature of the issuing authority.	815
Any obligations or coupons may be executed by the person who, on	816
the date of execution, is the proper issuing authority although on	817
the date of such bonds or coupons such person was not the issuing	818
authority. If the issuing authority whose signature or a facsimile	819
of whose signature appears on any such obligation or coupon ceases	820
to be the issuing authority before delivery thereof, such	821
signature or facsimile is nevertheless valid and sufficient for	822
all purposes as if the former issuing authority had remained the	823
issuing authority until such delivery; and if the seal to be	824
affixed to obligations has been changed after a facsimile of the	825
seal has been imprinted on such obligations, such facsimile seal	826
shall continue to be sufficient as to such obligations and	827
obligations issued in substitution or exchange therefor.	828

(G) All obligations are negotiable instruments and securities	829
under Chapter 1308. of the Revised Code, subject to the provisions	830
of the bond proceedings as to registration. The obligations may be	831
issued in coupon or in registered form, or both, as the issuing	832
authority determines. Provision may be made for the registration	833
of any obligations with coupons attached thereto as to principal	834
alone or as to both principal and interest, their exchange for	835
obligations so registered, and for the conversion or reconversion	836
into obligations with coupons attached thereto of any obligations	837
registered as to both principal and interest, and for reasonable	838
charges for such registration, exchange, conversion, and	839
reconversion.	840

(H) Obligations may be sold at public sale or at private	841
sale, as determined in the bond proceedings.	842

Obligations issued to provide moneys for the loan guarantee	843
fund or the innovation Ohio loan guarantee fund may, as determined	844
by the issuing authority, be sold at private sale, and without	845
publication of a notice of sale.	846

(I) Pending preparation of definitive obligations, the	847
issuing authority may issue interim receipts or certificates which	848
shall be exchanged for such definitive obligations.	849

(J) In the discretion of the issuing authority, obligations	850
may be secured additionally by a trust agreement or indenture	851
between the issuing authority and a corporate trustee which may be	852
any trust company or bank having a place of business within the	853
state. Any such agreement or indenture may contain the resolution	854
or order authorizing the issuance of the obligations, any	855
provisions that may be contained in any bond proceedings, and	856
other provisions which are customary or appropriate in an	857
agreement or indenture of such type, including, but not limited	858
to:	859

(1) Maintenance of each pledge, trust agreement, indenture,	860
or other instrument comprising part of the bond proceedings until	861
the state has fully paid the bond service charges on the	862
obligations secured thereby, or provision therefor has been made;	863

(2) In the event of default in any payments required to be	864
made by the bond proceedings, or any other agreement of the	865
issuing authority made as a part of the contract under which the	866
obligations were issued, enforcement of such payments or agreement	867
by mandamus, the appointment of a receiver, suit in equity, action	868
at law, or any combination of the foregoing;	869

(3) The rights and remedies of the holders of obligations and	870
of the trustee, and provisions for protecting and enforcing them,	871
including limitations on rights of individual holders of	872
obligations;	873

(4) The replacement of any obligations that become mutilated	874
or are destroyed, lost, or stolen;	875

(5) Such other provisions as the trustee and the issuing	876
authority agree upon, including limitations, conditions, or	877
qualifications relating to any of the foregoing.	878

(K) Any holders of obligations or trustees under the bond	879
proceedings, except to the extent that their rights are restricted	880
by the bond proceedings, may by any suitable form of legal	881
proceedings, protect and enforce any rights under the laws of this	882
state or granted by such bond proceedings. Such rights include the	883
right to compel the performance of all duties of the issuing	884
authority, the director of development, the Ohio air quality	885
development authority, or the division of liquor control required	886
by this chapter or the bond proceedings; to enjoin unlawful	887
activities; and in the event of default with respect to the	888
payment of any bond service charges on any obligations or in the	889
performance of any covenant or agreement on the part of the	890
issuing authority, the director of development, the Ohio air	891
quality development authority, or the division of liquor control	892
in the bond proceedings, to apply to a court having jurisdiction	893
of the cause to appoint a receiver to receive and administer the	894
pledged receipts and special funds, other than those in the	895
custody of the treasurer of state, which are pledged to the	896
payment of the bond service charges on such obligations or which	897
are the subject of the covenant or agreement, with full power to	898
pay, and to provide for payment of bond service charges on, such	899
obligations, and with such powers, subject to the direction of	900
the court, as are accorded receivers in general equity cases,	901
excluding any power to pledge additional revenues or receipts or	902
other income or moneys of the issuing authority or the state or	903
governmental agencies of the state to the payment of such	904
principal and interest and excluding the power to take possession	905
of, mortgage, or cause the sale or otherwise dispose of any	906
project facilities.	907

Each duty of the issuing authority and the issuing	908
authority's officers and employees, and of each governmental	909
agency and its officers, members, or employees, undertaken	910
pursuant to the bond proceedings or any agreement or lease,	911
lease-purchase agreement, or loan made under authority of this	912
chapter, and in every agreement by or with the issuing authority,	913
is hereby established as a duty of the issuing authority, and of	914
each such officer, member, or employee having authority to perform	915
such duty, specifically enjoined by the law resulting from an	916
office, trust, or station within the meaning of section 2731.01 of	917
the Revised Code.	918

The person who is at the time the issuing authority, or the	919
issuing authority's officers or employees, are not liable in their	920
personal capacities on any obligations issued by the issuing	921
authority or any agreements of or with the issuing authority.	922

(L) The issuing authority may authorize and issue obligations	923
for the refunding, including funding and retirement, and advance	924
refunding with or without payment or redemption prior to maturity,	925
of any obligations previously issued by the issuing authority.	926
Such obligations may be issued in amounts sufficient for payment	927
of the principal amount of the prior obligations, any redemption	928
premiums thereon, principal maturities of any such obligations	929
maturing prior to the redemption of the remaining obligations on a	930
parity therewith, interest accrued or to accrue to the maturity	931
dates or dates of redemption of such obligations, and any	932
allowable costs including expenses incurred or to be incurred in	933
connection with such issuance and such refunding, funding, and	934
retirement. Subject to the bond proceedings therefor, the portion	935
of proceeds of the sale of obligations issued under this division	936
to be applied to bond service charges on the prior obligations	937
shall be credited to an appropriate account held by the trustee	938
for such prior or new obligations or to the appropriate account in	939
the bond service fund for such obligations. Obligations authorized	940
under this division shall be deemed to be issued for those	941
purposes for which such prior obligations were issued and are	942
subject to the provisions of this section pertaining to other	943
obligations, except as otherwise provided in this section;	944
provided that, unless otherwise authorized by the general	945
assembly, any limitations imposed by the general assembly pursuant	946
to this section with respect to bond service charges applicable to	947
the prior obligations shall be applicable to the obligations	948
issued under this division to refund, fund, advance refund or	949
retire such prior obligations.	950

(M) The authority to issue obligations under this section	951
includes authority to issue obligations in the form of bond	952
anticipation notes and to renew the same from time to time by the	953
issuance of new notes. The holders of such notes or interest	954
coupons pertaining thereto shall have a right to be paid solely	955
from the pledged receipts and special funds that may be pledged to	956
the payment of the bonds anticipated, or from the proceeds of such	957
bonds or renewal notes, or both, as the issuing authority provides	958
in the resolution or order authorizing such notes. Such notes may	959
be additionally secured by covenants of the issuing authority to	960
the effect that the issuing authority and the state will do such	961
or all things necessary for the issuance of such bonds or renewal	962
notes in appropriate amount, and apply the proceeds thereof to the	963
extent necessary, to make full payment of the principal of and	964
interest on such notes at the time or times contemplated, as	965
provided in such resolution or order. For such purpose, the	966
issuing authority may issue bonds or renewal notes in such	967
principal amount and upon such terms as may be necessary to	968
provide funds to pay when required the principal of and interest	969
on such notes, notwithstanding any limitations prescribed by or	970
for purposes of this section. Subject to this division, all	971
provisions for and references to obligations in this section are	972
applicable to notes authorized under this division.	973

The issuing authority in the bond proceedings authorizing the	974
issuance of bond anticipation notes shall set forth for such bonds	975
an estimated interest rate and a schedule of principal payments	976
for such bonds and the annual maturity dates thereof, and for	977
purposes of any limitation on bond service charges prescribed	978
under division (A) of section 166.11 of the Revised Code, the	979
amount of bond service charges on such bond anticipation notes is	980
deemed to be the bond service charges for the bonds anticipated	981
thereby as set forth in the bond proceedings applicable to such	982
notes, but this provision does not modify any authority in this	983
section to pledge receipts and special funds to, and covenant to	984
issue bonds to fund, the payment of principal of and interest and	985
any premium on such notes.	986

(N) Obligations issued under this section are lawful	987
investments for banks, societies for savings, savings and loan	988
associations, deposit guarantee associations, trust companies,	989
trustees, fiduciaries, insurance companies, including domestic for	990
life and domestic not for life, trustees or other officers having	991
charge of sinking and bond retirement or other special funds of	992
political subdivisions and taxing districts of this state, the	993
commissioners of the sinking fund of the state, the administrator	994
of workers' compensation, the state teachers retirement system,	995
the public employees retirement system, the school employees	996
retirement system, and the Ohio police and fire pension fund,	997
notwithstanding any other provisions of the Revised Code or rules	998
adopted pursuant thereto by any governmental agency of the state	999
with respect to investments by them, and are also acceptable as	1000
security for the deposit of public moneys.	1001

(O) Unless otherwise provided in any applicable bond	1002
proceedings, moneys to the credit of or in the special funds	1003
established by or pursuant to this section may be invested by or	1004
on behalf of the issuing authority only in notes, bonds, or other	1005
obligations of the United States, or of any agency or	1006
instrumentality of the United States, obligations guaranteed as to	1007
principal and interest by the United States, obligations of this	1008
state or any political subdivision of this state, and certificates	1009
of deposit of any national bank located in this state and any	1010
bank, as defined in section 1101.01 of the Revised Code, subject	1011
to inspection by the superintendent of banks. If the law or the	1012
instrument creating a trust pursuant to division (J) of this	1013
section expressly permits investment in direct obligations of the	1014
United States or an agency of the United States, unless expressly	1015
prohibited by the instrument, such moneys also may be invested in	1016
no-front-end-load money market mutual funds consisting exclusively	1017
of obligations of the United States or an agency of the United	1018
States and in repurchase agreements, including those issued by the	1019
fiduciary itself, secured by obligations of the United States or	1020
an agency of the United States; and in common trust funds	1021
established in accordance with section 1111.20 of the Revised Code	1022
and consisting exclusively of any such securities, notwithstanding	1023
division (A)(4) of that section. The income from such investments	1024
shall be credited to such funds as the issuing authority	1025
determines, and such investments may be sold at such times as the	1026
issuing authority determines or authorizes.	1027

(P) Provision may be made in the applicable bond proceedings	1028
for the establishment of separate accounts in the bond service	1029
fund and for the application of such accounts only to the	1030
specified bond service charges on obligations pertinent to such	1031
accounts and bond service fund and for other accounts therein	1032
within the general purposes of such fund. Unless otherwise	1033
provided in any applicable bond proceedings, moneys to the credit	1034
of or in the several special funds established pursuant to this	1035
section shall be disbursed on the order of the treasurer of state,	1036
provided that no such order is required for the payment from the	1037
bond service fund when due of bond service charges on obligations.	1038

(Q) The issuing authority may pledge all, or such portion as	1039
the issuing authority determines, of the pledged receipts to the	1040
payment of bond service charges on obligations issued under this	1041
section, and for the establishment and maintenance of any	1042
reserves, as provided in the bond proceedings, and make other	1043
provisions therein with respect to pledged receipts as authorized	1044
by this chapter, which provisions are controlling notwithstanding	1045
any other provisions of law pertaining thereto.	1046

(R) The issuing authority may covenant in the bond	1047
proceedings, and any such covenants are controlling	1048
notwithstanding any other provision of law, that the state and	1049
applicable officers and governmental agencies of the state,	1050
including the general assembly, so long as any obligations are	1051
outstanding, shall:	1052

(1) Maintain statutory authority for and cause to be charged	1053
and collected wholesale and retail prices for spirituous liquor	1054
sold by the state or its agents so that the pledged receipts are	1055
sufficient in amount to meet bond service charges, and the	1056
establishment and maintenance of any reserves and other	1057
requirements provided for in the bond proceedings, and, as	1058
necessary, to meet covenants contained in contracts of guarantee	1059
made under section 166.06 of the Revised Code;	1060

(2) Take or permit no action, by statute or otherwise, that	1061
would impair the exemption from federal income taxation of the	1062
interest on the obligations.	1063

(S) There is hereby created the economic development bond	1064
service fund, which shall be in the custody of the treasurer of	1065
state but shall be separate and apart from and not a part of the	1066
state treasury. All moneys received by or on account of the	1067
issuing authority or state agencies and required by the applicable	1068
bond proceedings, consistent with this section, to be deposited,	1069
transferred, or credited to a bond service fund or the economic	1070
development bond service fund, and all other moneys transferred or	1071
allocated to or received for the purposes of the fund, shall be	1072
deposited and credited to such fund and to any separate accounts	1073
therein, subject to applicable provisions of the bond proceedings,	1074
but without necessity for any act of appropriation. During the	1075
period beginning with the date of the first issuance of	1076
obligations and continuing during such time as any such	1077
obligations are outstanding, and so long as moneys in the	1078
pertinent bond service funds are insufficient to pay all bond	1079
services charges on such obligations becoming due in each year, a	1080
sufficient amount of the gross profit on the sale of spirituous	1081
liquor included in pledged receipts are committed and shall be	1082
paid to the bond service fund or economic development bond service	1083
fund in each year for the purpose of paying the bond service	1084
charges becoming due in that year without necessity for further	1085
act of appropriation for such purpose and notwithstanding anything	1086
to the contrary in Chapter 4301. of the Revised Code. The	1087
economic development bond service fund is a trust fund and is	1088
hereby pledged to the payment of bond service charges to the	1089
extent provided in the applicable bond proceedings, and payment	1090
thereof from such fund shall be made or provided for by the	1091
treasurer of state in accordance with such bond proceedings	1092
without necessity for any act of appropriation.	1093

(T) The obligations, the transfer thereof, and the income	1094
therefrom, including any profit made on the sale thereof, shall at	1095
all times be free from taxation within the state.	1096

Sec. 166.11. (A) The aggregate principal amount of project	1097
financing obligations that may be issued under section 166.08 of	1098
the Revised Code is three hundred million dollars, plus the	1099
principal amount of such project financing obligations retired by	1100
payments. The aggregate principal amount of obligations, exclusive	1101
of project financing obligations, that may be issued under section	1102
166.08 of the Revised Code is ~~five~~six hundred thirty million	1103
dollars, plus the principal amount of any such obligations	1104
retired by payment, the amounts held or obligations pledged for	1105
the payment of the principal amount of any such obligations	1106
outstanding, amounts in special funds held as reserves to meet	1107
bond service charges, and amounts of obligations issued to	1108
provide moneys required to meet payments from the loan guarantee	1109
fund created in section 166.06 of the Revised Code and the	1110
innovation Ohio loan guarantee fund created in section 166.15 of	1111
the Revised Code. Of that six hundred thirty million dollars, not	1112
more than eighty-four million principal amount of obligations may	1113
be issued for eligible advanced energy projects and not more than	1114
one hundred million principal amount of obligations may be issued	1115
for eligible logistics and distribution projects. The terms of the	1116
obligations issued under section 166.08 of the Revised Code, other	1117
than obligations issued to meet guarantees that cannot be	1118
satisfied from amounts then held in the loan guarantee fund or	1119
the innovation Ohio loan guarantee fund, shall be such that the	1120
aggregate amount of moneys used from profit from the sale of	1121
spirituous liquor, and not from other sources, in any fiscal	1122
year shall not exceed ~~forty-five~~sixty-three million dollars.	1123
For purposes of the preceding sentence, "other sources" include	1124
the annual investment income on special funds to the extent it	1125
will be available for payment of any bond service charges in lieu	1126
of use of profit from the sale of spirituous liquor, and shall be	1127
estimated on the basis of the expected funding of those special	1128
funds and assumed investment earnings thereon at a rate equal to	1129
the weighted average yield on investments of those special funds	1130
determined as of any date within sixty days immediately preceding	1131
the date of issuance of the bonds in respect of which the	1132
determination is being made. The determinations required by this	1133
division shall be made by the treasurer of state at the time of	1134
issuance of an issue of obligations and shall be conclusive for	1135
purposes of such issue of obligations from and after their	1136
issuance and delivery.	1137

(B) The aggregate amount of the guaranteed portion of the	1138
unpaid principal of loans guaranteed under sections 166.06 and	1139
166.15 of the Revised Code and the unpaid principal of loans made	1140
under sections 166.07 , 166.16, and 166.21 of the Revised Code may	1141
not at any time exceed eight hundred million dollars. Of that	1142
eight hundred million dollars, the aggregate amount of the	1143
guaranteed portion of the unpaid principal of loans guaranteed	1144
under sections 166.06 and 166.15 of the Revised Code shall not at	1145
any time exceed two hundred million dollars. However, the	1146
limitations established under this division do not apply to loans	1147
made with proceeds from the issuance and sale of project financing	1148
obligations.	1149

Sec. 166.25. (A) The director of development, with the	1150
approval of the controlling board and subject to the other	1151
applicable provisions of this chapter, may lend money in the	1152
logistics and distribution infrastructure fund to persons for the	1153
purpose of paying allowable costs of eligible logistics and	1154
distribution projects.	1155

(B) In determining the eligible logistics and distribution	1156
projects to be assisted and the nature, amount, and terms of	1157
assistance to be provided for an eligible logistics and	1158
distribution project, the director shall consult with appropriate	1159
governmental agencies, including the department of transportation	1160
and the Ohio rail development commission.	1161

(C)(1) The director shall submit to the development financing	1162
advisory council the terms of the proposed assistance to be	1163
provided for an eligible logistics and distribution project and	1164
such other relevant information as the council may request.	1165

(2) The council, on the basis of such information, shall make	1166
recommendations as to the appropriateness of the assistance to be	1167
provided. The recommendations may be revised to reflect any	1168
changes in the proposed assistance the director may submit to the	1169
council.	1170

(3) The director shall submit the terms of the proposed	1171
assistance to be provided, along with the recommendations, as	1172
amended, of the council as to the appropriateness of the proposed	1173
assistance, to the controlling board.	1174

(D) Any loan made pursuant to this section shall be evidenced	1175
by a loan agreement, which shall contain such terms as the	1176
director determines necessary or appropriate, including	1177
performance measures and reporting requirements. The director may	1178
take actions necessary or appropriate to collect or otherwise deal	1179
with any loan made under this section, including requiring a loan	1180
recipient to repay the amount of the loan plus interest at a rate	1181
of three per cent above the federal short term interest rate or	1182
any other rate determined by the director.	1183

Sec. 166.26. (A) There is hereby created in the state	1184
treasury the logistics and distribution infrastructure fund. The	1185
fund shall consist of grants, gifts, and contributions of money or	1186
rights to money lawfully designated for or deposited into the	1187
fund, all money and rights to money lawfully appropriated and	1188
transferred to the fund, including money received from the	1189
issuance of obligations under section 166.08 of the Revised Code	1190
and subject to section 166.11 of the Revised Code for purposes of	1191
allowable costs of eligible logistics and distribution projects,	1192
and money credited to the fund pursuant to division (B) of this	1193
section. All investment earnings on the cash balance in the fund	1194
shall be credited to the fund. The fund shall not be comprised,	1195
in any part, of money raised by taxation.	1196

(B) There shall be credited to the logistics and distribution	1197
infrastructure fund the money received by the state from the	1198
repayment of loans and recovery on loan guarantees, including	1199
interest thereon, made from the fund.	1200

Sec. 166.27. (A) As used in this section, "minority" has the	1201
same meaning as in section 184.17 of the Revised Code, except that	1202
the individual must be a resident of this state. The term also	1203
includes an economically disadvantaged individual who is a	1204
resident of this state.	1205

(B) The director of development shall conduct outreach	1206
activities in Ohio that seek to include minorities in the loan	1207
program for logistics and distribution projects established under	1208
section 166.25 of the Revised Code. The outreach activities shall	1209
include the following, when appropriate:	1210

(1) Identifying and partnering with historically black	1211
colleges and universities;	1212

(2) Working with all institutions of higher education in the	1213
state to support minority faculty and students involved in	1214
logistics and distribution fields;	1215

(3) Developing a plan to contact by telephone minority-owned	1216
businesses and entrepreneurs and other economically disadvantaged	1217
businesses to notify them of opportunities to participate in the	1218
loan program for logistics and distribution projects;	1219

(4) Identifying minority professional and technical trade	1220
associations and economic development assistance organizations and	1221
notifying them of the loan program for logistics and distribution	1222
projects;	1223

(5) Partnering with regional councils to foster local efforts	1224
to support minority-owned businesses or otherwise identify	1225
networks of minority-owned businesses, entrepreneurs, and	1226
individuals operating locally;	1227

(6) Identifying minority firms and notifying them of the	1228
opportunities that exist within the investment community,	1229
including the Ohio venture capital authority created under section	1230
150.02 of the Revised Code.	1231

(C) The director shall publish an annual report that includes	1232
all of the following:	1233

(1) Details of loans awarded for logistics and distribution	1234
projects;	1235

(2) The status of loan recipients' projects funded in	1236
previous years;	1237

(3) The amount of loans awarded for projects in economically	1238
distressed areas, and if possible to ascertain, the impact of the	1239
loans to those areas.	1240

(D) To the extent possible, outreach activities described in	1241
this section shall be conducted in conjunction with the EDGE	1242
program created in section 123.152 of the Revised Code.	1243

Sec. 166.30. (A) The Ohio air quality development authority,	1244
with the approval of the controlling board and subject to	1245
sections 3706.25 to 3706.30 of the Revised Code, may provide	1246
grants from money in the advanced energy research and	1247
development fund and may lend money in the advanced energy	1248
research and development taxable fund to persons for the purposes	1249
of paying allowable costs of eligible advanced energy projects.	1250

(B) In determining the eligible advanced energy projects to	1251
be assisted and the nature, amount, and terms of assistance to be	1252
provided for an eligible advanced energy project, the authority	1253
shall consult with appropriate governmental agencies.	1254

(C)(1) The authority shall submit to the development	1255
financing advisory council the terms of the proposed assistance to	1256
be provided for an eligible advanced energy project and such other	1257
relevant information as the council may request.	1258

(2) The council, on the basis of such information, shall make	1259
recommendations as to the appropriateness of the assistance to be	1260
provided. The recommendations may be revised to reflect any	1261
changes in the proposed assistance the authority may submit to	1262
the council.	1263

(3) The authority shall submit the terms of the proposed	1264
assistance to be provided, along with the recommendations, as	1265
amended, of the council as to the appropriateness of the proposed	1266
assistance, to the controlling board.	1267

(D) Any grant or loan made pursuant to this section shall be	1268
evidenced by an agreement, which shall contain such terms as the	1269
authority determines necessary or appropriate, including	1270
performance measures and reporting requirements. The authority may	1271
take actions necessary or appropriate to collect or otherwise deal	1272
with any assistance provided under this section, including	1273
requiring a loan or grant recipient to repay the amount of the	1274
loan or grant plus interest at a rate of three per cent above the	1275
federal short term interest rate or any other rate determined by	1276
the authority.	1277

Sec. 184.02. (A) In addition to the powers and duties under	1278
sections 184.10 to 184.20, 184.25, 184.26, and 184.37 of the	1279
Revised Code, the third frontier commission may perform any act	1280
to ensure the performance of any function necessary or	1281
appropriate to carry out the purposes of, and exercise the powers	1282
granted under, sections 184.01 and 184.02 of the Revised Code. In	1283
addition, the commission may do any of the following:	1284

(1) Adopt, amend, and rescind rules under section 111.15 of	1285
the Revised Code for the administration of any aspect of its	1286
operations;	1287

(2) Adopt bylaws governing its operations, including bylaws	1288
that establish procedures and set policies as may be necessary to	1289
assist with the furtherance of its purposes;	1290

(3) Appoint and set the compensation of employees needed to	1291
carry out its duties;	1292

(4) Contract with, retain the services of, or designate, and	1293
fix the compensation of, such financial consultants, accountants,	1294
other consultants and advisors, and other independent contractors	1295
as may be necessary or desirable to carry out its duties;	1296

(5) Solicit input and comments from the third frontier	1297
advisory board, and specialized industry, professional, and other	1298
relevant interest groups concerning its purposes;	1299

(6) Facilitate alignment of the state's science and	1300
technology programs and activities;	1301

(7) Make grants and loans to individuals, public agencies,	1302
private companies or organizations, or joint ventures for any of	1303
the broad range of activities related to its purposes.	1304

(B) In addition to the powers and duties under sections	1305
184.10 to 184.20, 184.25, 184.26, and 184.37 of the Revised Code,	1306
the commission shall do all of the following:	1307

(1) Establish a competitive process for the award of grants	1308
and loans that is designed to fund the most meritorious proposals	1309
and, when appropriate, provide for peer review of proposals;	1310

(2) Within ninety days after the end of each fiscal year,	1311
submit to the governor and the general assembly a report of the	1312
activities of the commission during the preceding fiscal year;	1313

(3) With specific application to the biomedical research and	1314
technology transfer trust fund, periodically make strategic	1315
assessments of the types of state investments in biomedical	1316
research and biotechnology in the state that would likely create	1317
jobs and business opportunities in the state and produce the most	1318
beneficial long-term improvements to the public health of Ohioans,	1319
including, but not limited to, biomedical research and	1320
biotechnology initiatives that address tobacco-related illnesses	1321
as may be outlined in any master agreement. The commission shall	1322
award grants and loans from the fund pursuant to a process	1323
established under division (B)(1) of this section.	1324

Sec. 184.174. The third frontier commission shall publish an	1325
annual report that includes all of the following:	1326

(A) Details of grants, loans, and loan guarantees awarded or	1327
provided under the bioproduct development program established in	1328
section 184.25 of the Revised Code and the biomedical development	1329
program established in section 184.26 of the Revised Code.	1330

(B) The status of the recipients' projects funded in previous	1331
years.	1332

(C) The amount of grants or loans awarded and loan guarantees	1333
provided for projects in economically distressed areas, and if	1334
possible to ascertain, the impact of the grants, loans, and loan	1335
guarantees to those areas.	1336

Sec. 184.23. (A) There is hereby created the third frontier	1337
biomedical advisory board. The advisory board shall provide	1338
general advice to the commission regarding biomedical issues.	1339

(B) The board shall consist of seven members selected for	1340
their biomedical knowledge and experience. The governor shall	1341
appoint two members. The speaker of the house of representatives	1342
shall appoint two members, one of whom may be recommended by the	1343
minority leader of the house of representatives. The president of	1344
the senate shall appoint two members, one of whom may be	1345
recommended by the minority leader of the senate. The director of	1346
development or the director's designee shall serve as a member.	1347
Membership on the advisory board created under section 184.03 of	1348
the Revised Code does not prohibit membership on the advisory	1349
board created under this section. The designee of the director	1350
of development may also serve on the advisory board created in	1351
section 184.231 of the Revised Code. The remaining members of the	1352
board created under this section may not serve on that other	1353
board. All members of the board shall serve at the pleasure of	1354
their appointing authorities.	1355

(C) The board shall select from among its members a	1356
chairperson. A majority of board members constitutes a quorum, and	1357
no action shall be taken without the affirmative vote of a	1358
majority of the members.	1359

(D) A vacancy shall be filled in the same manner as the	1360
original appointment. The governor may remove any member of the	1361
board for malfeasance, misfeasance, or nonfeasance after a	1362
hearing in accordance with Chapter 119. of the Revised Code.	1363

(E) Members of the board shall not act as representatives of	1364
any specific disciplinary, regional, or organizational interest.	1365
Members shall represent a wide variety of experience valuable in	1366
technology research and development, product process innovation	1367
and commercialization, and creating and managing high-growth	1368
technology-based companies.	1369

(F) Members of the board shall file financial disclosure	1370
statements described in division (B) of section 102.02 of the	1371
Revised Code.	1372

(G) Members of the board shall serve without compensation,	1373
but shall receive their reasonable and necessary expenses	1374
incurred in the conduct of board business.	1375

(H) The department of development shall provide office space	1376
and facilities for the board.	1377

Sec. 184.231. (A) There is hereby created the third frontier	1378
bioproducts advisory board. The advisory board shall, in	1379
consideration of the recommendations of the Ohio agriculture to	1380
chemicals, polymers, and advanced materials taskforce, provide	1381
general advice to the commission regarding bioproduct issues.	1382

(B) The board shall consist of seven members selected for	1383
their bioproducts knowledge and experience. The governor shall	1384
appoint one member. The speaker of the house of representatives	1385
shall appoint two members, one of whom may be recommended by the	1386
minority leader of the house of representatives. The president of	1387
the senate shall appoint two members, one of whom may be	1388
recommended by the minority leader of the senate. The director of	1389
development or the director's designee shall serve as a member.	1390
The director of agriculture or the director's designee shall	1391
serve as a member. Membership on the advisory board created	1392
under section 184.03 of the Revised Code does not prohibit	1393
membership on the advisory board created under this section.	1394
All members of the board shall serve at the pleasure of their	1395
appointing authorities.	1396

(C) The board shall select from among its members a	1397
chairperson. A majority of board members constitutes a quorum, and	1398
no action shall be taken without the affirmative vote of a	1399
majority of the members.	1400

(D) A vacancy shall be filled in the same manner as the	1401
original appointment. The governor may remove any member of the	1402
board for malfeasance, misfeasance, or nonfeasance after a	1403
hearing in accordance with Chapter 119. of the Revised Code.	1404

(E) Members of the board shall not act as representatives of	1405
any specific disciplinary, regional, or organizational interest.	1406
Members shall represent a wide variety of experience valuable in	1407
technology research and development, product process innovation	1408
and commercialization, and creating and managing high-growth	1409
technology-based companies.	1410

(F) Members of the board shall file financial disclosure	1411
statements described in division (B) of section 102.02 of the	1412
Revised Code.	1413

(G) Members of the board shall serve without compensation,	1414
but shall receive their reasonable and necessary expenses	1415
incurred in the conduct of board business.	1416

(H) The department of development shall provide office space	1417
and facilities for the board.	1418

Sec. 184.24. Money in the jobs fund created in the state	1419
treasury by Section 4 of Sub. H.B. 544 of the 127th general	1420
assembly shall be used in accordance with sections 184.25 and	1421
184.26 of the Revised Code and may be used to provide cash	1422
transfers to the local infrastructure development fund created in	1423
section 164.28 of the Revised Code.	1424

Sec. 184.25. There is hereby created the Ohio bioproducts	1425
development program to be administered by the third frontier	1426
commission. The commission shall provide loans, loan guarantees,	1427
or grants to for-profit or not-for-profit entities to promote,	1428
provide for and enable innovation, development and	1429
commercialization of bioproducts, including biopolymers,	1430
chemicals, and advanced materials that use biomaterials and	1431
renewable agriculture resources, through efforts including, but	1432
not limited to, agribusiness and the agricultural industry in	1433
Ohio, state and local government entities and agencies,	1434
educational institutions, or research organizations and	1435
institutions.	1436

Any assistance made pursuant to this section shall be	1437
evidenced by an agreement, which shall contain such terms as the	1438
commission determines necessary or appropriate, including	1439
performance measures and reporting requirements. The commission	1440
may take actions necessary or appropriate to collect or otherwise	1441
deal with any assistance made under this section, including	1442
requiring a recipient of assistance to repay the amount of the	1443
assistance plus interest at a rate of three per cent above the	1444
federal short term interest rate or any other rate determined by	1445
the commission.	1446

Sec. 184.26. There is hereby created the Ohio biomedical	1447
development program to be administered by the third frontier	1448
commission. The commission shall provide loans, loan guarantees,	1449
or grants to for-profit or not-for-profit entities to promote,	1450
provide for and enable innovation, development and	1451
commercialization of biomedical and biotechnological products,	1452
processes and applications, including medical devices,	1453
diagnostics, informatics, therapies, and drugs, through efforts by	1454
and collaboration among and including business and industry in	1455
Ohio, state and local governmental entities and agencies,	1456
educational institutions, or research organizations and	1457
institutions.	1458

Any assistance made pursuant to this section shall be	1459
evidenced by an agreement, which shall contain such terms as the	1460
commission determines necessary or appropriate, including	1461
performance measures and reporting requirements. The commission	1462
may take actions necessary or appropriate to collect or otherwise	1463
deal with any assistance made under this section, including	1464
requiring a recipient of assistance to repay the amount of the	1465
assistance plus interest at a rate of three per cent above the	1466
federal short term interest rate or any other rate determined by	1467
the commission.	1468

Sec. 184.37. The third frontier commission, in consultation	1469
with the third frontier economic stimulus advisory board, shall	1470
establish competitive processes for the purpose of awarding all of	1471
the following:	1472

(A) Loans, loan guarantees, and grants under the Ohio	1473
bioproducts development program pursuant to section 184.25 of the	1474
Revised Code;	1475

(B) Loans, loan guarantees, and grants under the Ohio	1476
biomedical development program pursuant to section 184.26 of the	1477
Revised Code.	1478

Sec. 1555.03. For the purposes of this chapter, the director	1479
of the Ohio coal development office may:	1480

(A) With the advice of the technical advisory committee	1481
created in section 1551.35 of the Revised Code and the affirmative	1482
vote of a majority of the members of the Ohio air quality	1483
development authority, make loans, guarantee loans, and make	1484
grants to persons doing business in this state or to educational	1485
or scientific institutions located in this state for coal research	1486
and development projects by any such person or educational or	1487
scientific institution and adopt rules under Chapter 119. of the	1488
Revised Code for making such loans, guarantees, and grants.	1489

(B) In making loans, loan guarantees, and grants under	1490
division (A) of this section and section 1555.04 of the Revised	1491
Code, the director of the office shall ensure that an adequate	1492
portion of the total amount of those loans, loan guarantees, and	1493
grants, as determined by the director with the advice of the	1494
technical advisory committee, is used for conducting research on	1495
fundamental scientific problems related to the utilization of Ohio	1496
coal and shall ensure, to the maximum feasible extent, joint	1497
financial participation by the federal government or other	1498
investors or interested parties in conjunction with any such loan,	1499
loan guarantee, or grant. The director, in each grant agreement or	1500
contract under division (A) of this section, loan contract or	1501
agreement under this division or section 1555.04 of the Revised	1502
Code, and contract of guarantee under section 1555.05 of the	1503
Revised Code, shall require that the facility or project be	1504
maintained and kept in good condition and repair by the person or	1505
educational or scientific institution to whom the grant or loan	1506
was made or for whom the guarantee was made.	1507

(C) From time to time, with the advice of the technical	1508
advisory committee and the affirmative vote of a majority of the	1509
members of the Ohio air quality development authority, request the	1510
issuance of coal research and development general obligations	1511
under section 151.07 of the Revised Code, for any of the purposes	1512
set forth in Section 15 of Article VIII, Ohio Constitution, and	1513
subject to the limitations therein upon the aggregate total amount	1514
of obligations that may be outstanding at any time.	1515

(D) Include as a condition of any loan, loan guarantee, or	1516
grant contract or agreement with any such person or educational or	1517
scientific institution that the director of the office receive, in	1518
addition to payments of principal and interest on any such loan or	1519
service charges for any such guarantee, as appropriate, as	1520
authorized by Section 15, Article VIII, Ohio Constitution, a	1521
reasonable royalty or portion of the income or profits arising out	1522
of the developments, discoveries, or inventions, including patents	1523
or copyrights, that result in whole or in part from coal research	1524
and development projects conducted under any such contract or	1525
agreement, in such amounts and for such period of years as may be	1526
negotiated and provided by the contract or agreement in advance of	1527
the making of the grant, loan, or loan guarantee. Moneys so	1528
received by the director of the office ~~shall~~under this section	1529
may be credited to the coal research and development bond service	1530
fund or used to make additional loans, loan guarantees, grants,	1531
or agreements under this section.	1532

(E) Employ managers, superintendents, and other employees and	1533
retain or contract with consulting engineers, financial	1534
consultants, accounting experts, architects, and such other	1535
consultants and independent contractors as are necessary in the	1536
judgment of the director of the office to carry out this chapter,	1537
and fix the compensation thereof.	1538

(F) Receive and accept from any federal agency, subject to	1539
the approval of the governor, grants for or in aid of the	1540
construction or operation of any coal research and development	1541
project or for coal research and development, and receive and	1542
accept aid or contributions from any source of money, property,	1543
labor, or other things of value, to be held, used, and applied	1544
only for the purposes for which such grants and contributions are	1545
made.	1546

(G) Purchase fire and extended coverage and liability	1547
insurance for any coal research and development project, insurance	1548
protecting the office and its officers and employees against	1549
liability for damage to property or injury to or death of persons	1550
arising from its operations, and any other insurance the director	1551
of the office determines necessary or proper under this chapter.	1552
Any moneys received by the director from the proceeds of any such	1553
insurance with respect to a coal research and development project	1554
and any moneys received by the director from the proceeds of any	1555
settlement, judgment, foreclosure, or other insurance with respect	1556
to a coal research and development project or facility shall be	1557
credited to the coal research and development bond service fund.	1558

(H) In the exercise of the powers of the director of the	1559
office under this chapter, call to the director's assistance,	1560
temporarily, from time to time, any engineers, technical experts,	1561
financial experts, and other employees in any state department,	1562
agency, or commission, or in the Ohio state university, or other	1563
educational institutions financed wholly or partially by this	1564
state for purposes of assisting the director of the office with	1565
reviewing and evaluating applications for financial assistance	1566
under this chapter, monitoring performance of coal research and	1567
development projects receiving financial assistance under this	1568
chapter, and reviewing and evaluating the progress and findings of	1569
those projects. Such engineers, experts, and employees shall not	1570
receive any additional compensation over that which they receive	1571
from the department, agency, commission, or educational	1572
institution by which they are employed, but they shall be	1573
reimbursed for their actual and necessary expenses incurred while	1574
working under the direction of the director.	1575

(I) Do all acts necessary or proper to carry out the powers	1576
expressly granted in this chapter.	1577

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

1578

(1) "Institution of higher education" includes all of the	1579
following:	1580

(a) A state institution of higher education, as defined in	1581
section 3345.011 of the Revised Code;	1582

(b) A nonprofit institution issued a certificate of	1583
authorization under Chapter 1713. of the Revised Code;	1584

(c) A private institution exempt from regulation under	1585
Chapter 3332. of the Revised Code, as prescribed in section	1586
3333.046 of the Revised Code;	1587

(d) An institution of higher education with a certificate of	1588
registration from the state board of career colleges and schools	1589
under Chapter 3332. of the Revised Code.	1590

(2) "Student financial assistance supported by state funds"	1591
includes assistance granted under sections 3315.33, 3333.12,	1592
3333.122, 3333.21, 3333.26, 3333.27, 3333.28, 3333.372, 5910.03,	1593
5910.032, and 5919.34 of the Revised Code or, financed by an	1594
award under the choose Ohio first scholarship program	1595
established under section 3333.61 of the Revised Code, or	1596
financed by an award under the choose Ohio first co-op/internship	1597
program established under section 3333.72 of the Revised Code,	1598
and any other post-secondary student financial assistance	1599
supported by state funds.	1600

(B) An individual who is convicted of, pleads guilty to, or	1601
is adjudicated a delinquent child for one of the following	1602
violations shall be ineligible to receive any student financial	1603
assistance supported by state funds at an institution of higher	1604
education for two calendar years from the time the individual	1605
applies for assistance of that nature:	1606

(1) A violation of section 2917.02 or 2917.03 of the Revised	1607
Code;	1608

(2) A violation of section 2917.04 of the Revised Code that	1609
is a misdemeanor of the fourth degree;	1610

(3) A violation of section 2917.13 of the Revised Code that	1611
is a misdemeanor of the fourth or first degree and occurs within	1612
the proximate area where four or more others are acting in a	1613
course of conduct in violation of section 2917.11 of the Revised	1614
Code.	1615

(C) If an individual is convicted of, pleads guilty to, or is	1616
adjudicated a delinquent child for committing a violation of	1617
section 2917.02 or 2917.03 of the Revised Code, and if the	1618
individual is enrolled in a state-supported institution of higher	1619
education, the institution in which the individual is enrolled	1620
shall immediately dismiss the individual. No state-supported	1621
institution of higher education shall admit an individual of that	1622
nature for one academic year after the individual applies for	1623
admission to a state-supported institution of higher education.	1624
This division does not limit or affect the ability of a	1625
state-supported institution of higher education to suspend or	1626
otherwise discipline its students.	1627

Sec. 3333.71. As used in sections 3333.71 to 3333.81 of the	1628
Revised Code:	1629

(A) "Cooperative education program" means a partnership	1630
between students, institutions of higher education, and employers	1631
that formally integrates students' academic study with work	1632
experience in cooperating employer organizations and that meets	1633
all of the following conditions:	1634

(1) Alternates or combines periods of academic study and work	1635
experience in appropriate fields as an integral part of student	1636
education;	1637

(2) Provides students with compensation from the cooperative	1638
employer in the form of wages or salaries for work performed;	1639

(3) Evaluates each participating student's performance in the	1640
cooperative position, both from the perspective of the student's	1641
institution of higher education and the student's cooperative	1642
employer;	1643

(4) Provides participating students with academic credit from	1644
the institution of higher education upon successful completion of	1645
their cooperative education;	1646

(5) Is part of an overall degree or certificate program for	1647
which a percentage of the total program acceptable to the	1648
chancellor of the Ohio board of regents involves cooperative	1649
education.	1650

(B) "Internship program" means a partnership between	1651
students, institutions of higher education, and employers that	1652
formally integrates students' academic study with work or	1653
community service experience and that does both of the following:	1654

(1) Offers internships of specified and definite duration;

1655

(2) Evaluates each participating student's performance in the	1656
internship position, both from the perspective of the student's	1657
institution of higher education and the student's internship	1658
employer.	1659

An internship program may provide participating students with	1660
academic credit upon successful completion of the internship, and	1661
may provide students with compensation in the form of wages or	1662
salaries, stipends, or scholarships.	1663

(C) "Nonpublic university or college" means a nonprofit	1664
institution holding a certificate of authorization issued under	1665
Chapter 1713. of the Revised Code.	1666

(D) "State institution of higher education" has the same	1667
meaning as in section 3345.011 of the Revised Code.	1668

Sec. 3333.72. The chancellor of the Ohio board of regents	1669
shall establish and administer the choose Ohio first	1670
co-op/internship program to promote and encourage cooperative	1671
education programs or internship programs at Ohio institutions of	1672
higher education for the purpose of recruiting Ohio students to	1673
stay in the state, and recruiting Ohio residents who left Ohio to	1674
attend out-of-state institutions of higher education back to Ohio	1675
institutions of higher education, to participate in high quality	1676
academic programs that use cooperative education programs or	1677
significant internship programs, in order to support the growth	1678
of Ohio's businesses by providing businesses with Ohio's most	1679
talented students and providing Ohio graduates with job	1680
opportunities with Ohio's growing companies.	1681

The chancellor, subject to approval by the controlling board,	1682
shall make awards to state institutions of higher education for	1683
new or existing programs and initiatives meeting the goals of the	1684
choose Ohio first co-op/internship program. Awards may be	1685
granted for programs and initiatives to be implemented by a	1686
state institution of higher education alone or in collaboration	1687
with other state institutions of higher education or nonpublic	1688
Ohio universities and colleges. If the chancellor makes an award	1689
to a program or initiative that is intended to be implemented by	1690
a state institution of higher education in collaboration with	1691
other state institutions of higher education or nonpublic Ohio	1692
universities or colleges, the chancellor may provide that some	1693
portion of the award be received directly by the collaborating	1694
universities or colleges consistent with all terms of the choose	1695
Ohio first co-op/internship program.	1696

The choose Ohio first co-op/internship program shall support	1697
the creation and maintenance of high quality academic programs	1698
that utilize an intensive cooperative education or internship	1699
program for students at state institutions of higher education,	1700
or assign a number of scholarships to institutions to recruit	1701
Ohio residents as students in a high quality academic program,	1702
or both. If scholarships are included in an award to an	1703
institution of higher education, the scholarships shall be	1704
awarded to each participating eligible student as a grant to the	1705
state institution of higher education the student is attending	1706
and shall be reflected on the student's tuition bill.	1707

Notwithstanding any other provision of this section or	1708
sections 3333.73 to 3333.81 of the Revised Code, an Ohio four-year	1709
nonpublic university or college may submit a proposal as lead	1710
applicant or co-lead applicant for an award under the choose Ohio	1711
first co-op/internship program if the proposal is to be	1712
implemented in collaboration with a state institution of higher	1713
education. If the chancellor grants a nonpublic university or	1714
college an award, the nonpublic university or college shall	1715
comply with all requirements of this section, sections 3333.73 to	1716
3333.81 of the Revised Code, and the rules adopted under this	1717
section that apply to state institutions of higher education that	1718
receive awards under the program.	1719

The chancellor shall adopt rules in accordance with Chapter	1720
119. of the Revised Code to administer the choose Ohio first	1721
co-op/internship program.	1722

Sec. 3333.73. The chancellor of the Ohio board of regents	1723
shall establish a competitive process for making awards under the	1724
choose Ohio first co-op/internship program. The chancellor, on	1725
completion of that process, shall make a recommendation to the	1726
controlling board asking for approval of each award selected by	1727
the chancellor.	1728

The state institution of higher education shall submit a	1729
proposal and other documentation required by the chancellor, in	1730
the form and manner prescribed by the chancellor, for each award	1731
it seeks. A proposal may propose an initiative to be implemented	1732
solely by the state institution of higher education or in	1733
collaboration with other state institutions of higher education or	1734
nonpublic Ohio universities or colleges.	1735

The chancellor shall determine which proposals will receive	1736
awards each fiscal year, and the amount of each award, on the	1737
basis of the merit of each proposal, which the chancellor, subject	1738
to approval by the controlling board, shall determine based on one	1739
or more of the following criteria:	1740

(A) The extent to which the proposal will keep Ohio students	1741
in Ohio institutions of higher education;	1742

(B) The extent to which the proposal will attract Ohio	1743
residents who left Ohio to attend out-of-state institutions of	1744
higher education to return to Ohio institutions of higher	1745
education;	1746

(C) The extent to which the proposal will increase the number	1747
of Ohio graduates who remain in Ohio and enter Ohio's workforce;	1748

(D) The quality of the program that is the subject of the	1749
proposal and the extent to which additional resources will enhance	1750
its quality;	1751

(E) The extent to which the proposal is integrated with the	1752
strengths of the regional economy;	1753

(F) The extent to which the proposal is aligned with the	1754
report submitted by the chancellor pursuant to Section 4 of Sub.	1755
H.B. 2 of the 127th general assembly, as amended;	1756

(G) The extent to which the proposal facilitates the	1757
development of high quality academic programs with a cooperative	1758
education program or a significant internship program at state	1759
institutions of higher education;	1760

(H) The extent to which the proposal is integrated with	1761
supporting private companies to fill potential job growth;	1762

(I) The amount of other institutional, public, or private	1763
resources, whether monetary or nonmonetary, the proposal pledges	1764
to leverage that are in addition to the monetary cost-sharing	1765
requirement prescribed in section 3333.74 of the Revised Code;	1766

(J) The extent to which the proposal is collaborative with	1767
other Ohio institutions of higher education;	1768

(K) The extent to which the proposal is integrated with the	1769
institution's mission;	1770

(L) The extent to which the proposal meets a statewide	1771
educational need at the undergraduate or graduate level;	1772

(M) The demonstrated productivity or future capacity of the	1773
students to be recruited;	1774

(N) The extent to which the proposal will create additional	1775
capacity in a high quality academic program with a cooperative	1776
education program or significant internship program;	1777

(O) The extent to which the proposal will encourage students	1778
who received degrees from two-year institutions to pursue	1779
baccalaureate degrees;	1780

(P) The extent to which the proposal facilitates the	1781
completion of a baccalaureate degree in a cost-effective manner;	1782

(Q) The extent to which other institutional, public, or	1783
private resources that are pledged to the proposal, in addition to	1784
the monetary cost-sharing requirement prescribed in section	1785
3333.74 of the Revised Code, will be deployed to assist in	1786
sustaining the academic program of excellence;	1787

(R) The extent to which the proposal increases the likelihood	1788
that students will successfully complete their degree programs or	1789
certificate programs;	1790

(S) The extent to which the proposal ensures that a student	1791
participating in the high quality academic program funded by the	1792
choose Ohio first co-op/internship program is appropriately	1793
qualified and prepared to successfully transition into	1794
professions in Ohio's growing companies and industries.	1795

Sec. 3333.74. (A) Except as provided in division (B) of this	1796
section, each award under the choose Ohio first co-op/internship	1797
program shall require a pledge of private funds equal to the	1798
following:	1799

(1) In the case of a program, initiative, or scholarships	1800
for undergraduate students, at least one hundred per cent of the	1801
money awarded;	1802

(2) In the case of a program, initiative, or scholarships for	1803
graduate students, at least one hundred fifty per cent of the	1804
money awarded.	1805

(B) The chancellor of the Ohio board of regents may waive	1806
the requirement of division (A) of this section if the chancellor	1807
finds that exceptional circumstances exist to do so, provided	1808
that the chancellor reviews the proposal with the advisory	1809
committee established under section 3333.81 of the Revised Code	1810
and provides an explanation for the waiver to the controlling	1811
board.	1812

(C) The chancellor shall endeavor to distribute awards in	1813
such a way that a wide range of disciplines is supported and that	1814
all regions of the state benefit from the economic development	1815
impact of the program.	1816

Sec. 3333.75. The chancellor of the Ohio board of regents	1817
shall require each state institution of higher education that the	1818
controlling board approves to receive an award under the choose	1819
Ohio first co-op/internship program to enter into an agreement	1820
governing the use of the award. The agreement shall contain	1821
terms the chancellor determines to be necessary, which shall	1822
include performance measures, reporting requirements, and an	1823
obligation to fulfill pledges of other institutional, public, or	1824
nonpublic resources for the proposal.	1825

The chancellor may require a state institution of higher	1826
education that violates the terms of its agreement to repay the	1827
award plus interest at the rate required by section 5703.47 of the	1828
Revised Code to the chancellor.	1829

If the chancellor makes an award to a program or initiative	1830
that is intended to be implemented by a state institution of	1831
higher education in collaboration with other state institutions of	1832
higher education or nonpublic Ohio universities or colleges, the	1833
chancellor may enter into an agreement with the collaborating	1834
universities or colleges that permits awards to be received	1835
directly by the collaborating universities or colleges consistent	1836
with the terms of the program or initiative. In that case, the	1837
chancellor shall incorporate into the agreement terms consistent	1838
with the requirements of this section.	1839

Sec. 3333.76. The chancellor of the Ohio board of regents	1840
shall encourage state institutions of higher education, alone or	1841
in collaboration with other state institutions of higher education	1842
or nonpublic Ohio universities and colleges, to submit proposals	1843
under the choose Ohio first co-op/internship program for	1844
initiatives that recruit Ohio residents enrolled in colleges and	1845
universities in other states or other countries to return to Ohio	1846
and enroll in state institutions of higher education or nonpublic	1847
Ohio universities and colleges as graduate students in a high	1848
quality academic program that uses a cooperative education	1849
program, a significant internship program in a private industry	1850
or institutional laboratory, or a similar model involving a	1851
variation of cooperative education or internship programs common	1852
to graduate education, and is in an educational area, industry,	1853
or industry sector of need.	1854

The chancellor may encourage state institutions of higher	1855
education, alone or in collaboration with other state institutions	1856
of higher education or nonpublic Ohio universities and colleges,	1857
to submit proposals for initiatives that recruit Ohio residents	1858
who have received baccalaureate degrees to remain in Ohio and	1859
enroll in state institutions of higher education or nonpublic Ohio	1860
universities and colleges as graduate students in a high quality	1861
academic program of the type described in the preceding paragraph.	1862

Sec. 3333.77. When making an award under the choose Ohio	1863
first co-op/internship program, the chancellor of the Ohio board	1864
of regents, subject to approval by the controlling board, may	1865
commit to giving a state institution of higher education's	1866
proposal preference for future awards after the current fiscal	1867
year or fiscal biennium. A proposal's eligibility for future	1868
awards remains conditional on all of the following:	1869

(A) Future appropriations of the general assembly;

1870

(B) The institution's adherence to the agreement entered into	1871
under section 3333.75 of the Revised Code, including its	1872
fulfillment of pledges of other institutional, public, or	1873
nonpublic resources;	1874

(C) A demonstration that the students participating in the	1875
programs and initiatives or receiving scholarships financed by the	1876
awards are satisfied with the institutions selected by the	1877
chancellor to offer the programs, initiatives, or scholarships	1878
financed by the awards.	1879

The chancellor and the controlling board shall not commit to	1880
awarding any proposal after June 30, 2014.	1881

Sec. 3333.78. The chancellor of the Ohio board of regents	1882
shall monitor each initiative for which an award is granted under	1883
the choose Ohio first co-op/internship program to ensure the	1884
following:	1885

(A) Fiscal accountability, so that the award is used in	1886
accordance with the agreement entered into under section 3333.75	1887
of the Revised Code;	1888

(B) Operating progress, so that the initiative is managed to	1889
achieve the goals stated in the proposal and in the agreement, and	1890
so that problems may be promptly identified and remedied;	1891

(C) Desired outcomes, so that the initiative contributes to	1892
the program's goal of retaining Ohio's students after graduation.	1893

Sec. 3333.79. (A) As used in this section, "minority" has	1894
the same meaning as in section 184.17 of the Revised Code. The	1895
term also includes an individual who is economically	1896
disadvantaged.	1897

(B) The chancellor of the board of regents shall conduct	1898
outreach activities in Ohio that seek to include minorities in the	1899
co-op/internship program established under section 3333.72 of the	1900
Revised Code. The outreach activities shall include the following,	1901
when appropriate:	1902

(1) Identifying and partnering with historically black	1903
colleges and universities;	1904

(2) Working with all institutions of higher education in the	1905
state to support minority faculty and students involved in	1906
cooperative and intern programs;	1907

(3) Developing a plan to contact by telephone minorities and	1908
other economically disadvantaged individuals to notify them of	1909
opportunities to participate in the co-op/internship program;	1910

(4) Identifying minority professional and trade associations	1911
and economic development assistance organizations and notifying	1912
them of the co-op/internship program;	1913

(5) Partnering with regional technology councils to foster	1914
local efforts to support minority participation in the	1915
co-op/internship program.	1916

(C) To the extent possible, outreach activities described in	1917
this section shall be conducted in conjunction with the EDGE	1918
program created in section 123.152 of the Revised Code.	1919

Sec. 3333.80. Not later than December 31, 2010, and the	1920
thirty-first day of December of each year thereafter, the	1921
chancellor of the Ohio board of regents shall submit to the	1922
general assembly in accordance with section 101.68 of the Revised	1923
Code a report on the academic and economic impact of the choose	1924
Ohio first co-op/internship program. At a minimum, the report	1925
shall include the following:	1926

(A) Progress and performance metrics for each initiative that	1927
received an award in the previous fiscal year;	1928

(B) Economic indicators of the impact of each initiative, and	1929
all initiatives as a whole, on the regional economies and the	1930
statewide economy;	1931

(C) The chancellor's strategy in allocating awards among	1932
state institutions of higher education and how the actual awards	1933
fit that strategy.	1934

Sec. 3333.81. (A) The co-op/internship program advisory	1935
committee is hereby created. The committee shall consist of the	1936
following members:	1937

(1) Five members appointed by the governor, two of whom shall	1938
represent academia, two of whom shall be representatives of	1939
private industry, and one of whom shall be a member of the public;	1940

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

1941

(3) Five members appointed by the president of the senate,	1942
three of whom shall be members of the senate, but not more than	1943
two from the same political party, one of whom shall represent	1944
academia, and one of whom shall be a member of the public;	1945

(4) Five members appointed by the speaker of the house of	1946
representatives, three of whom shall be members of the house of	1947
representatives, but not more than two from the same political	1948
party, one of whom shall represent private industry, and one of	1949
whom shall be a member of the public.	1950

(B) Members of the committee who are members of the general	1951
assembly shall serve for terms of four years or until their	1952
legislative terms end, whichever is sooner. The director of	1953
development or the director's designee shall serve as an	1954
ex-officio, voting member. Otherwise, initial members shall serve	1955
the following terms:	1956

(1) Of the initial members appointed by the governor, the	1957
member representing the public and one member representing	1958
academia shall serve for terms of one year; one member	1959
representing private industry shall serve for a term of two years;	1960
and one member representing private industry and one member	1961
representing academia shall serve for terms of three years.	1962

(2) The member representing academia and the representative	1963
of the public initially appointed by the president of the senate	1964
shall serve for terms of two years.	1965

(3) The member representing private industry initially	1966
appointed by the speaker of the house of representatives shall	1967
serve for a term of one year.	1968

(4) The representative of the public initially appointed by	1969
the speaker of the house of representatives shall serve for a term	1970
of three years.	1971

Thereafter, terms shall be for three years, with each term	1972
ending on the same day of the same month as did the term that it	1973
succeeds. Each member shall serve from the date of appointment	1974
until the end of the term for which the member was appointed.	1975
Members may be reappointed. Vacancies shall be filled in the same	1976
manner as provided for original appointments. Any member appointed	1977
to fill a vacancy occurring prior to the expiration date of the	1978
term for which the member was appointed shall hold office for the	1979
remainder of that term. A member shall continue to serve after the	1980
expiration date of the member's term until the member's successor	1981
is appointed or until a period of sixty days has elapsed,	1982
whichever occurs first. The appointing authority may remove a	1983
member from the committee for failure to attend two consecutive	1984
meetings without showing good cause for the absences.	1985

(C) The committee annually shall select a chairperson and a	1986
vice-chairperson. Only the members who represent academia and	1987
private industry may serve as chairperson and vice-chairperson.	1988
For this purpose, any committee member appointed as a member of	1989
the public who is a trustee, officer, employee, or student of an	1990
institution of higher education shall be included among the	1991
representatives of academia who may serve as chairperson or	1992
vice-chairperson, and any committee member appointed as a member	1993
of the public who is a director, officer, or employee of a private	1994
business shall be included among the representatives of private	1995
industry who may serve as chairperson or vice-chairperson. The	1996
committee annually shall rotate the selection of the chairperson	1997
between these two groups and shall select a member of the other	1998
group to serve as vice-chairperson.	1999

The committee annually shall select one of its members to	2000
serve as secretary to keep a record of the committee's	2001
proceedings.	2002

(D) A majority vote of the members of the full committee is	2003
necessary to take action on any matter. The committee may adopt	2004
bylaws governing its operation, including bylaws that establish	2005
the frequency of meetings.	2006

(E) Members of the committee shall serve without	2007
compensation.	2008

(F) A member of the committee shall not participate in	2009
discussions or votes concerning a proposed initiative or an actual	2010
award under the choose Ohio first co-op/internship program that	2011
involves an institution of higher education of which the member	2012
is a trustee, officer, employee, or student; an organization of	2013
which the member is a trustee, director, officer, or employee; or	2014
a business of which the member is a director, officer, or	2015
employee or a shareholder of more than five per cent of the	2016
business' stock.	2017

(G) The committee shall advise the chancellor of the Ohio	2018
board of regents on growing industries well-suited for awards	2019
under the choose Ohio first co-op/internship program. The	2020
chancellor shall consult with the committee and request the	2021
committee's advice at each of the following times:	2022

(1) Prior to issuing each request for applications under the	2023
program;	2024

(2) While the chancellor is reviewing applications and before	2025
deciding on awards to submit for the controlling board's approval;	2026

(3) After deciding on awards to submit for the controlling	2027
board's approval and prior to submitting them.	2028

The committee shall advise the chancellor on other matters	2029
the chancellor considers appropriate.	2030

(H) The chancellor shall provide meeting space for the	2031
committee. The committee shall be assisted in its duties by the	2032
chancellor's staff.	2033

(I) Sections 101.82 to 101.87 of the Revised Code do not	2034
apply to the committee.	2035

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

2036

(1) "State university or college" means the institutions	2037
described in section 3345.27 of the Revised Code and the	2038
northeastern Ohio universities college of medicine.	2039

(2) "Resident" has the meaning specified by rule of the	2040
chancellor of the Ohio board of regents.	2041

(3) "Statement of selective service status" means a statement	2042
certifying one of the following:	2043

(a) That the individual filing the statement has registered	2044
with the selective service system in accordance with the "Military	2045
Selective Service Act," 62 Stat. 604, 50 U.S.C. App. 453, as	2046
amended;	2047

(b) That the individual filing the statement is not required	2048
to register with the selective service for one of the following	2049
reasons:	2050

(i) The individual is under eighteen or over twenty-six years	2051
of age.	2052

(ii) The individual is on active duty with the armed forces	2053
of the United States other than for training in a reserve or	2054
national guard unit.	2055

(iii) The individual is a nonimmigrant alien lawfully in the	2056
United States in accordance with section 101 (a)(15) of the	2057
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended.	2058

(iv) The individual is not a citizen of the United States and	2059
is a permanent resident of the Trust Territory of the Pacific	2060
Islands or the Northern Mariana Islands.	2061

(4) "Institution of higher education" means any eligible	2062
institution approved by the United States department of education	2063
pursuant to the "Higher Education Act of 1965," 79 Stat. 1219, as	2064
amended, or any institution whose students are eligible for	2065
financial assistance under any of the programs described by	2066
division (E) of this section.	2067

(B) The chancellor shall, by rule, specify the form of	2068
statements of selective service status to be filed in compliance	2069
with divisions (C) to (F) of this section. Each statement of	2070
selective service status shall contain a section wherein a male	2071
student born after December 31, 1959, certifies that the student	2072
has registered with the selective service system in accordance	2073
with the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.	2074
App. 453, as amended. For those students not required to register	2075
with the selective service, as specified in divisions	2076
(A)(2)(b)(i) to (iv) of this section, a section shall be provided	2077
on the statement of selective service status for the	2078
certification of nonregistration and for an explanation of the	2079
reason for the exemption. The chancellor may require that such	2080
statements be accompanied by documentation specified by rule of	2081
the chancellor.	2082

(C) A state university or college that enrolls in any course,	2083
class, or program a male student born after December 31, 1959, who	2084
has not filed a statement of selective service status with the	2085
university or college shall, regardless of the student's	2086
residency, charge the student any tuition surcharge charged	2087
students who are not residents of this state.	2088

(D) No male born after December 31, 1959, shall be eligible	2089
to receive any loan, grant, scholarship, or other financial	2090
assistance for educational expenses granted under section 3315.33,	2091
3333.12, 3333.122, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,	2092
5910.032, or 5919.34 of the Revised Code, or financed by an award	2093
under the choose Ohio first scholarship program established under	2094
section 3333.61 of the Revised Code, or financed by an award	2095
under the choose Ohio first co-op/internship program established	2096
under section 3333.72 of the Revised Code, unless that person has	2097
filed a statement of selective service status with that person's	2098
institution of higher education.	2099

(E) If an institution of higher education receives a	2100
statement from an individual certifying that the individual has	2101
registered with the selective service system in accordance with	2102
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. App.	2103
453, as amended or that the individual is exempt from registration	2104
for a reason other than that the individual is under eighteen	2105
years of age, the institution shall not require the individual to	2106
file any further statements. If it receives a statement certifying	2107
that the individual is not required to register because the	2108
individual is under eighteen years of age, the institution shall	2109
require the individual to file a new statement of selective	2110
service status each time the individual seeks to enroll for a new	2111
academic term or makes application for a new loan or loan	2112
guarantee or for any form of financial assistance for educational	2113
expenses, until it receives a statement certifying that the	2114
individual has registered with the selective service system or is	2115
exempt from registration for a reason other than that the	2116
individual is under eighteen years of age.	2117

Sec. 3706.01. As used in this chapter:

2118

(A) "Governmental agency" means a department, division, or	2119
other unit of state government, a municipal corporation, county,	2120
township, and other political subdivision, or any other public	2121
corporation or agency having the power to acquire, construct, or	2122
operate air quality facilities, the United States or any agency	2123
thereof, and any agency, commission, or authority established	2124
pursuant to an interstate compact or agreement.	2125

(B) "Person" means any individual, firm, partnership,	2126
association, or corporation, or any combination thereof.	2127

(C) "Air contaminant" means particulate matter, dust, fumes,	2128
gas, mist, smoke, noise, vapor, heat, radioactivity, radiation, or	2129
odorous substance, or any combination thereof.	2130

(D) "Air pollution" means the presence in the ambient air of	2131
one or more air contaminants in sufficient quantity and of such	2132
characteristics and duration as to injure human health or welfare,	2133
plant or animal life, or property, or that unreasonably interferes	2134
with the comfortable enjoyment of life or property.	2135

(E) "Ambient air" means that portion of the atmosphere	2136
outside of buildings and other enclosures, stacks, or ducts that	2137
surrounds human, plant, or animal life, or property.	2138

(F) "Emission" means the release into the outdoor atmosphere	2139
of an air contaminant.	2140

(G) "Air quality facility" means any of the following:

2141

(1) Any method, modification or replacement of property,	2142
process, device, structure, or equipment that removes, reduces,	2143
prevents, contains, alters, conveys, stores, disperses, or	2144
disposes of air contaminants or substances containing air	2145
contaminants, or that renders less noxious or reduces the	2146
concentration of air contaminants in the ambient air, including,	2147
without limitation, facilities and expenditures that qualify as	2148
air pollution control facilities under section 103 (C)(4)(F) of	2149
the Internal Revenue Code of 1954, as amended, and regulations	2150
adopted thereunder;	2151

(2) Motor vehicle inspection stations operated in accordance	2152
with, and any equipment used for motor vehicle inspections	2153
conducted under, section 3704.14 of the Revised Code and rules	2154
adopted under it;	2155

(3) Ethanol or other biofuel facilities, including any	2156
equipment used at the ethanol or other biofuel facility for the	2157
production of ethanol or other biofuels;	2158

(4) Any property or portion thereof used for the collection,	2159
storage, treatment, utilization, processing, or final disposal of	2160
a by-product or solid waste resulting from any method, process,	2161
device, structure, or equipment that removes, reduces, prevents,	2162
contains, alters, conveys, stores, disperses, or disposes of air	2163
contaminants, or that renders less noxious or reduces the	2164
concentration of air contaminants in the ambient air;	2165

(5) Any property, device, or equipment that promotes the	2166
reduction of emissions of air contaminants into the ambient air	2167
through improvements in the efficiency of energy utilization or	2168
energy conservation;	2169

(6) Any coal research and development project conducted under	2170
Chapter 1555. of the Revised Code;	2171

(7) As determined by the director of the Ohio coal	2172
development office, any property or portion thereof that is used	2173
for the collection, storage, treatment, utilization, processing,	2174
or final disposal of a by-product resulting from a coal research	2175
and development project as defined in section 1555.01 of the	2176
Revised Code or from the use of clean coal technology, excluding	2177
any property or portion thereof that is used primarily for other	2178
subsequent commercial purposes;	2179

(8) Any property or portion thereof that is part of the	2180
FutureGen project of the United States department of energy or	2181
related to the siting of the FutureGen project.	2182

(9) Any property, device, or equipment that promotes the	2183
reduction of emissions of air contaminants into the ambient air	2184
through the generation of clean, renewable energy with renewable	2185
energy resources or advanced energy resources as defined in	2186
section 184.30 of the Revised Code.	2187

(10) Any property, device, structure or equipment necessary	2188
for the manufacture and production of equipment described as an	2189
air quality facility under this chapter.	2190

"Air quality facility" further includes any property or	2191
system to be used in whole or in part for any of the purposes in	2192
divisions (G)(1) to ~~(8)~~(10) of this section, whether another	2193
purpose is also served, and any property or system incidental to	2194
or that has to do with, or the end purpose of which is, any of the	2195
foregoing. Air quality facilities that are defined in this	2196
division for industry, commerce, distribution, or research,	2197
including public utility companies, are hereby determined to be	2198
those that qualify as facilities for the control of air pollution	2199
and thermal pollution related to air under Section 13 of Article	2200
VIII, Ohio Constitution.	2201

(H) "Project" or "air quality project" means any air quality	2202
facility, including undivided or other interests therein, acquired	2203
or to be acquired or constructed or to be constructed by the Ohio	2204
air quality development authority under this chapter, or acquired	2205
or to be acquired or constructed or to be constructed by a	2206
governmental agency or person with all or a part of the cost	2207
thereof being paid from a loan or grant from the authority under	2208
this chapter or otherwise paid from the proceeds of air quality	2209
revenue bonds, including all buildings and facilities that the	2210
authority determines necessary for the operation of the project,	2211
together with all property, rights, easements, and interests that	2212
may be required for the operation of the project.	2213

(I) "Cost" as applied to an air quality project means the	2214
cost of acquisition and construction, the cost of acquisition of	2215
all land, rights-of-way, property rights, easements, franchise	2216
rights, and interests required for such acquisition and	2217
construction, the cost of demolishing or removing any buildings or	2218
structures on land so acquired, including the cost of acquiring	2219
any lands to which such buildings or structures may be moved, the	2220
cost of acquiring or constructing and equipping a principal office	2221
and sub-offices of the authority, the cost of diverting highways,	2222
interchange of highways, and access roads to private property,	2223
including the cost of land or easements for such access roads, the	2224
cost of public utility and common carrier relocation or	2225
duplication, the cost of all machinery, furnishings, and	2226
equipment, financing charges, interest prior to and during	2227
construction and for no more than eighteen months after completion	2228
of construction, engineering, expenses of research and development	2229
with respect to air quality facilities, the cost of any commodity	2230
contract, including fees and expenses related thereto, legal	2231
expenses, plans, specifications, surveys, studies, estimates of	2232
cost and revenues, working capital, other expenses necessary or	2233
incident to determining the feasibility or practicability of	2234
acquiring or constructing such project, administrative expense,	2235
and such other expense as may be necessary or incident to the	2236
acquisition or construction of the project, the financing of such	2237
acquisition or construction, including the amount authorized in	2238
the resolution of the authority providing for the issuance of air	2239
quality revenue bonds to be paid into any special funds from the	2240
proceeds of such bonds, and the financing of the placing of such	2241
project in operation. Any obligation, cost, or expense incurred by	2242
any governmental agency or person for surveys, borings,	2243
preparation of plans and specifications, and other engineering	2244
services, or any other cost described above, in connection with	2245
the acquisition or construction of a project may be regarded as a	2246
part of the cost of that project and may be reimbursed out of the	2247
proceeds of air quality revenue bonds as authorized by this	2248
chapter.	2249

(J) "Owner" includes an individual, copartnership,	2250
association, or corporation having any title or interest in any	2251
property, rights, easements, or interests authorized to be	2252
acquired by this chapter.	2253

(K) "Revenues" means all rentals and other charges received	2254
by the authority for the use or services of any air quality	2255
project, any gift or grant received with respect to any air	2256
quality project, any moneys received with respect to the lease,	2257
sublease, sale, including installment sale or conditional sale, or	2258
other disposition of an air quality project, moneys received in	2259
repayment of and for interest on any loans made by the authority	2260
to a person or governmental agency, whether from the United States	2261
or any department, administration, or agency thereof, or	2262
otherwise, proceeds of such bonds to the extent that use thereof	2263
for payment of principal of, premium, if any, or interest on the	2264
bonds is authorized by the authority, amounts received or	2265
otherwise derived from a commodity contract or from the sale of	2266
the related commodity under such a contract, proceeds from any	2267
insurance, condemnation, or guaranty pertaining to a project or	2268
property mortgaged to secure bonds or pertaining to the financing	2269
of the project, and income and profit from the investment of the	2270
proceeds of air quality revenue bonds or of any revenues.	2271

(L) "Public roads" includes all public highways, roads, and	2272
streets in the state, whether maintained by the state, county,	2273
city, township, or other political subdivision.	2274

(M) "Public utility facilities" includes tracks, pipes,	2275
mains, conduits, cables, wires, towers, poles, and other equipment	2276
and appliances of any public utility.	2277

(N) "Construction," unless the context indicates a different	2278
meaning or intent, includes reconstruction, enlargement,	2279
improvement, or providing furnishings or equipment.	2280

(O) "Air quality revenue bonds," unless the context indicates	2281
a different meaning or intent, includes air quality revenue notes,	2282
air quality revenue renewal notes, and air quality revenue	2283
refunding bonds, except that notes issued in anticipation of the	2284
issuance of bonds shall have a maximum maturity of five years as	2285
provided in section 3706.05 of the Revised Code and notes or	2286
renewal notes issued as the definitive obligation may be issued	2287
maturing at such time or times with a maximum maturity of forty	2288
years from the date of issuance of the original note.	2289

(P) "Solid waste" means any garbage; refuse; sludge from a	2290
waste water treatment plant, water supply treatment plant, or air	2291
pollution control facility; and other discarded material,	2292
including solid, liquid, semisolid, or contained gaseous material	2293
resulting from industrial, commercial, mining, and agricultural	2294
operations, and from community activities, but not including solid	2295
or dissolved material in domestic sewage, or solid or dissolved	2296
material in irrigation return flows or industrial discharges that	2297
are point sources subject to permits under section 402 of the	2298
"Federal Water Pollution Control Act Amendments of 1972," 86 Stat.	2299
880, 33 U.S.C.A. 1342, as amended, or source, special nuclear, or	2300
byproduct material as defined by the "Atomic Energy Act of 1954,"	2301
68 Stat. 921, 42 U.S.C.A. 2011, as amended.	2302

(Q) "Sludge" means any solid, semisolid, or liquid waste,	2303
other than a recyclable by-product, generated from a municipal,	2304
commercial, or industrial waste water treatment plant, water	2305
supply plant, or air pollution control facility or any other such	2306
wastes having similar characteristics and effects.	2307

(R) "Ethanol or other biofuel facility" means a plant at	2308
which ethanol or other biofuel is produced.	2309

(S) "Ethanol" means fermentation ethyl alcohol derived from	2310
agricultural products, including potatoes, cereal, grains, cheese	2311
whey, and sugar beets; forest products; or other renewable or	2312
biomass resources, including residue and waste generated from the	2313
production, processing, and marketing of agricultural products,	2314
forest products, and other renewable or biomass resources, that	2315
meets all of the specifications in the American society for	2316
testing and materials (ASTM) specification D 4806-88 and is	2317
denatured as specified in Parts 20 and 21 of Title 27 of the Code	2318
of Federal Regulations.	2319

(T) "Biofuel" means any fuel that is made from cellulosic	2320
biomass resources, including renewable organic matter, crop waste	2321
residue, wood, aquatic plants and other crops, animal waste, solid	2322
waste, or sludge, and that is used for the production of energy	2323
for transportation or other purposes.	2324

(U) "FutureGen project" means the buildings, equipment, and	2325
real property and functionally related buildings, equipment, and	2326
real property, including related research projects that support	2327
the development and operation of the buildings, equipment, and	2328
real property, designated by the United States department of	2329
energy and the FutureGen industrial alliance, inc., as the	2330
coal-fueled, zero-emissions power plant designed to prove the	2331
technical and economic feasibility of producing electricity and	2332
hydrogen from coal and nearly eliminating carbon dioxide emissions	2333
through capture and permanent storage.	2334

(V) "Commodity contract" means a contract or series of	2335
contracts entered into in connection with the acquisition or	2336
construction of air quality facilities for the purchase or sale of	2337
a commodity that is eligible for prepayment with the proceeds of	2338
federally tax exempt bonds under sections 103, 141, and 148 of the	2339
Internal Revenue Code of 1986, as amended, and regulations adopted	2340
under it.	2341

Sec. 3706.25. As used in sections 3706.25 to 3706.30 of the	2342
Revised Code:	2343

(A) "Advanced energy project" means any technologies,	2344
products, activities, or management practices or strategies that	2345
facilitate the generation or use of electricity and that reduce or	2346
support the reduction of energy consumption or support the	2347
production of clean, renewable energy for industrial,	2348
distribution, commercial, institutional, governmental, research,	2349
not-for-profit, or residential energy users including, but not	2350
limited to, advanced energy resources and renewable energy	2351
resources. "Advanced energy project" includes any project	2352
described in division (A), (B), or (C) of section 4928.621 of the	2353
Revised Code.	2354

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

2355

(1) Any method or any modification or replacement of any	2356
property, process, device, structure, or equipment that increases	2357
the generation output of an electric generating facility to the	2358
extent such efficiency is achieved without additional carbon	2359
dioxide emissions by that facility;	2360

(2) Any distributed generation system consisting of customer	2361
cogeneration of electricity and thermal output simultaneously,	2362
primarily to meet the energy needs of the customer's facilities;	2363

(3) Advanced nuclear energy technology consisting of	2364
generation III technology as defined by the nuclear regulatory	2365
commission; other, later technology; or significant improvements	2366
to existing facilities;	2367

(4) Any fuel cell used in the generation of electricity,	2368
including, but not limited to, a proton exchange membrane fuel	2369
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	2370
solid oxide fuel cell;	2371

(5) Advanced solid waste or construction and demolition	2372
debris conversion technology, including, but not limited to,	2373
advanced stoker technology, and advanced fluidized bed	2374
gasification technology, that results in measurable greenhouse	2375
gas emissions reductions as calculated pursuant to the United	2376
States environmental protection agency's waste reduction model	2377
(WARM).	2378

(C) "Renewable energy resource" means solar photovoltaic or	2379
solar thermal energy, wind energy, power produced by a	2380
hydroelectric facility, geothermal energy, fuel derived from	2381
solid wastes, as defined in section 3734.01 of the Revised Code,	2382
through fractionation, biological decomposition, or other	2383
process that does not principally involve combustion, biomass	2384
energy, biologically derived methane gas, or energy derived	2385
from nontreated by-products of the pulping process or wood	2386
manufacturing process, including bark, wood chips, sawdust, and	2387
lignin in spent pulping liquors. "Renewable energy resource"	2388
includes, but is not limited to, any fuel cell used in the	2389
generation of electricity, including, but not limited to, a	2390
proton exchange membrane fuel cell, phosphoric acid fuel cell,	2391
molten carbonate fuel cell, or solid oxide fuel cell; wind turbine	2392
located in the state's territorial waters of Lake Erie; storage	2393
facility that will promote the better utilization of a renewable	2394
energy resource that primarily generates off peak; or distributed	2395
generation system used by a customer to generate electricity	2396
from any such energy. As used in this division, "hydroelectric	2397
facility" means a hydroelectric generating facility that is	2398
located at a dam on a river, or on any water discharged to a	2399
river, that is within or bordering this state or within or	2400
bordering an adjoining state and meets all of the following	2401
standards:	2402

(1) The facility provides for river flows that are not	2403
detrimental for fish, wildlife, and water quality, including	2404
seasonal flow fluctuations as defined by the applicable licensing	2405
agency for the facility.	2406

(2) The facility demonstrates that it complies with the	2407
water quality standards of this state, which compliance may	2408
consist of certification under Section 401 of the "Clean Water	2409
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and	2410
demonstrates that it has not contributed to a finding by this	2411
state that the river has impaired water quality under Section	2412
303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33	2413
U.S.C. 1313.	2414

(3) The facility complies with mandatory prescriptions	2415
regarding fish passage as required by the federal energy	2416
regulatory commission license issued for the project, regarding	2417
fish protection for riverine, anadromous, and catadromus fish.	2418

(4) The facility complies with the recommendations of the	2419
Ohio environmental protection agency and with the terms of its	2420
federal energy regulatory commission license regarding watershed	2421
protection, mitigation, or enhancement, to the extent of each	2422
agency's respective jurisdiction over the facility.	2423

(5) The facility complies with provisions of the "Endangered	2424
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	2425
amended.	2426

(6) The facility does not harm cultural resources of the	2427
area. This can be shown through compliance with the terms of its	2428
federal energy regulatory commission license or, if the facility	2429
is not regulated by that commission, through development of a plan	2430
approved by the Ohio historic preservation office, to the extent	2431
it has jurisdiction over the facility.	2432

(7) The facility complies with the terms of its federal	2433
energy regulatory commission license or exemption that are related	2434
to recreational access, accommodation, and facilities or, if the	2435
facility is not regulated by that commission, the facility	2436
complies with similar requirements as are recommended by	2437
resource agencies, to the extent they have jurisdiction over the	2438
facility; and the facility provides access to water to the	2439
public without fee or charge.	2440

(8) The facility is not recommended for removal by any	2441
federal agency or agency of any state, to the extent the	2442
particular agency has jurisdiction over the facility.	2443

Sec. 3706.26. (A) The Ohio air quality development authority	2444
may, with the approval of its executive director and the	2445
affirmative vote of a majority of its members, request the	2446
issuance of bonds under section 166.08 of the Revised Code for the	2447
purpose of providing loans and grants for acquiring,	2448
manufacturing, constructing, reconstructing, expanding, improving,	2449
or equipping facilities or facility components by business and	2450
industry in this state, entities and agencies of state and local	2451
government, educational institutions, research organizations and	2452
institutions, or any combination thereof, for energy production,	2453
delivery, storage, conservation, and efficiency through advanced	2454
energy projects. The authority may, with the approval of its	2455
executive director and the affirmative vote of a majority of its	2456
members, make such loans and provide such grants in the manner	2457
provided for in section 166.30 of the Revised Code.	2458

(B) The issuance of bonds for the purpose described in this	2459
section is subject to the limitation established in division (A)	2460
of section 166.11 of the Revised Code.	2461

Sec. 3706.27. (A) There is hereby created in the state	2462
treasury the advanced energy research and development fund to	2463
provide grants for advanced energy projects. There is hereby	2464
created in the state treasury the advanced energy research and	2465
development taxable fund to provide loans for advanced energy	2466
projects.	2467

(B)(1) The advanced energy research and development fund and	2468
the advanced energy research and development taxable fund shall	2469
consist of the proceeds of obligations issued under section 166.08	2470
of the Revised Code. Money shall be credited to the respective	2471
funds in the proportion that the executive director of the Ohio	2472
air quality development authority, with the affirmative vote of a	2473
majority of the members of the authority, determines appropriate.	2474

(2) Any investment earnings from the money in the advanced	2475
energy research and development fund and in the advanced energy	2476
research and development taxable fund shall be credited to those	2477
funds, respectively. Any repayment of loans made from money in the	2478
advanced energy research and development taxable fund shall be	2479
credited to the facilities establishment fund created in section	2480
166.03 of the Revised Code.	2481

(C) The director of budget and management shall establish and	2482
maintain records or accounts for or within these funds in such a	2483
manner as to show the amount credited to the funds pursuant to	2484
section 166.08 of the Revised Code and that the amounts so	2485
credited have been expended for the purposes set forth in Section	2486
2p or 13 of Article VIII, Ohio Constitution, and sections 166.08,	2487
166.30, and 3706.26 of the Revised Code.	2488

Sec. 3706.28. (A) Determinations made by the executive	2489
director of the Ohio air quality development authority, with the	2490
affirmative vote of a majority of the members of the authority,	2491
that a particular project is an advanced energy project and is	2492
consistent with Chapter 166. of the Revised Code and Section 2p	2493
or 13 of Article VIII, Ohio Constitution, shall be conclusive as	2494
to the validity and enforceability of the obligations issued to	2495
finance such a project and of the authorizations, trust agreements	2496
or indentures, loan agreements, or grant agreements, and other	2497
agreements made in connection therewith, all in accordance with	2498
their terms.	2499

(B) Advanced energy facilities for industry, commerce,	2500
distribution, or research are hereby deemed to qualify as	2501
facilities for the control of air pollution and thermal pollution	2502
related to air under Section 2p or 13 of Article VIII, Ohio	2503
Constitution.	2504

Sec. 3706.29. The Ohio air quality development authority	2505
shall, in accordance with Chapter 119. of the Revised Code, adopt	2506
any rules necessary to implement section 166.30 and sections	2507
3706.25 to 3706.28 of the Revised Code.	2508

Sec. 3706.30. (A) As used in this section, "minority" has	2509
the same meaning as in section 184.17 of the Revised Code, except	2510
that the individual must be a resident of this state. The term	2511
also includes an economically disadvantaged individual who is a	2512
resident of this state.	2513

(B) The Ohio air quality development authority shall conduct	2514
outreach activities in Ohio that seek to include minorities in	2515
the grant and loan program for advanced energy projects	2516
established under section 166.30 of the Revised Code. The	2517
outreach activities shall include the following, when	2518
appropriate:	2519

(1) Identifying and partnering with historically black	2520
colleges and universities;	2521

(2) Working with all institutions of higher education in the	2522
state to support minority faculty and students involved in science	2523
and engineering fields that address advanced energy projects;	2524

(3) Developing a plan to contact by telephone minority-owned	2525
businesses and entrepreneurs and other economically disadvantaged	2526
businesses to notify them of opportunities to participate in the	2527
grant and loan program for advanced energy projects;	2528

(4) Identifying minority professional and technical trade	2529
associations and economic development assistance organizations and	2530
notifying them of the grant and loan program for advanced energy	2531
projects;	2532

(5) Partnering with regional technology councils to foster	2533
local efforts to support minority-owned technology businesses or	2534
otherwise identify networks of minority-owned technology	2535
businesses, entrepreneurs, and individuals operating locally;	2536

(6) Identifying minority technology firms and notifying them	2537
of the opportunities that exist within the investment community,	2538
including the Ohio venture capital authority created under section	2539
150.02 of the Revised Code.	2540

(C) The authority shall publish an annual report that	2541
includes all of the following:	2542

(1) Details of grants and loans awarded for advanced energy	2543
projects;	2544

(2) The status of grant or loan recipients' projects funded	2545
in previous years;	2546

(3) The amount of grants and loans awarded for projects in	2547
economically distressed areas, and if possible to ascertain, the	2548
impact of the grants or loans to those areas.	2549

(D) To the extent possible, outreach activities described in	2550
this section shall be conducted in conjunction with the EDGE	2551
program created in section 123.152 of the Revised Code.	2552

Sec. 5725.151. (A) As used in this section, "certificate	2553
owner" has the same meaning as in section 149.311 of the Revised	2554
Code.	2555

(B) There is allowed a ~~refundable~~ credit against the tax	2556
imposed by section 5707.03 and assessed under section 5725.15 of	2557
the Revised Code for a dealer in intangibles subject to that tax	2558
that is a certificate owner of a rehabilitation tax credit	2559
certificate issued under section 149.311 of the Revised Code. The	2560
credit shall equal twenty-five per cent of the dollar amount	2561
indicated on the certificate, but the amount of the credit	2562
allowed for any dealer for any year shall not exceed five million	2563
dollars. The credit shall be claimed in the calendar year	2564
specified in the certificate. If the credit exceeds the amount of	2565
tax otherwise due in that year, the excess shall be refunded to	2566
the dealer but, if any amount of the credit is refunded, the sum	2567
of the amount refunded and the amount applied to reduce the tax	2568
otherwise due in that year shall not exceed three million	2569
dollars. The dealer may carry forward any balance of the credit	2570
in excess of the amount claimed in that year for not more than	2571
five ensuing years, and shall deduct any amount claimed in any	2572
such year from the amount claimed in an ensuing year.	2573

(C) A dealer in intangibles claiming a credit under this	2574
section shall retain the rehabilitation tax credit certificate for	2575
four years following the end of the year in which the credit was	2576
claimed, and shall make the certificate available for inspection	2577
by the tax commissioner upon the request of the tax commissioner	2578
during that period.	2579

(D) For the purpose of division (C) of section 5725.24 of the	2580
Revised Code, reductions in the amount of taxes collected on	2581
account of credits allowed under this section shall be applied to	2582
reduce the amount credited to the general revenue fund and shall	2583
not be applied to reduce the amount to be credited to the	2584
undivided local government funds of the counties in which such	2585
taxes originate.	2586

Sec. 5733.47. (A) As used in this section, "certificate	2587
owner" has the same meaning as in section 149.311 of the Revised	2588
Code.	2589

(B) There is allowed a refundable credit against the tax	2590
imposed under section 5733.06 of the Revised Code for a taxpayer	2591
that is a certificate owner of a rehabilitation tax credit	2592
certificate issued under section 149.311 of the Revised Code. The	2593
credit shall equal twenty-five per cent of the dollar amount	2594
indicated on the certificate, but shall not exceed five million	2595
dollars. The credit shall be claimed for the tax year specified	2596
in the certificate and in the order required under section	2597
5733.98 of the Revised Code. For purposes of making tax payments	2598
under this chapter, taxes equal to the amount of the refundable	2599
credit shall be considered to be paid to the state on the first	2600
day of the tax year.	2601

(C) A taxpayer claiming a credit under this section shall	2602
retain the rehabilitation tax credit certificate for four years	2603
following the end of the tax year to which the credit was applied,	2604
and shall make the certificate available for inspection by the tax	2605
commissioner upon the request of the tax commissioner during that	2606
period.	2607

(D) If, pursuant to division (G) of section 5733.01 of the	2608
Revised Code, a taxpayer no longer pays a tax under this chapter,	2609
the taxpayer may nonetheless file an annual report under section	2610
5733.02 of the Revised Code and claim the refundable credit	2611
authorized by this section. Nothing in this division allows a	2612
taxpayer to claim the credit under this section more than once.	2613

Sec. 5747.76. (A) As used in this section, "certificate	2614
owner" has the same meaning as in section 149.311 of the Revised	2615
Code.	2616

(B) There is allowed a ~~refundable~~ credit against the tax	2617
imposed under section 5747.02 of the Revised Code for a taxpayer	2618
that is the certificate owner of a rehabilitation tax credit	2619
certificate issued under section 149.311 of the Revised Code. The	2620
credit shall equal twenty-five per cent of the dollar amount	2621
indicated on the certificate, but the amount of credit allowed	2622
for any taxpayer shall not exceed five million dollars. The	2623
credit shall be claimed for the taxable year specified in the	2624
certificate and in the order required under section 5747.98 of	2625
the Revised Code. ~~For purposes of making tax payments under this~~	2626
~~chapter, taxes equal to the amount of the refundable credit~~	2627
~~shall be considered to be paid to the state on the first day of~~	2628
~~the taxable year.~~	2629

(C) Nothing in this section limits or disallows pass-through	2630
treatment of the credit if the certificate owner is a pass-through	2631
entity. If the certificate owner is a pass-through entity, the	2632
amount of the credit allowed for the pass-through entity shall not	2633
exceed five million dollars.	2634

(D) If the credit allowed for any taxable year exceeds the	2635
tax otherwise due under section 5747.02 of the Revised Code, after	2636
allowing for any other credits preceding the credit in the order	2637
prescribed by section 5747.98 of the Revised Code, the excess	2638
shall be refunded to the taxpayer but, if any amount of the	2639
credit is refunded, the sum of the amount refunded and the amount	2640
applied to reduce the tax otherwise due for that year shall not	2641
exceed three million dollars or, if the certificate owner is a	2642
pass-through entity, shall not exceed the taxpayer's distributive	2643
or proportionate share of three million dollars. The taxpayer may	2644
carry forward any balance of the credit in excess of the amount	2645
claimed for that year for not more than five ensuing taxable	2646
years, and shall deduct any amount claimed for any such year from	2647
the amount claimed in an ensuing year.	2648

(E) A taxpayer claiming a credit under this section shall	2649
retain the rehabilitation tax credit certificate for four years	2650
following the end of the taxable year to which the credit was	2651
applied, and shall make the certificate available for inspection	2652
by the tax commissioner upon the request of the tax commissioner	2653
during that period.	2654

Sec. 5747.98. (A) To provide a uniform procedure for	2655
calculating the amount of tax due under section 5747.02 of the	2656
Revised Code, a taxpayer shall claim any credits to which the	2657
taxpayer is entitled in the following order:	2658

(1) The retirement income credit under division (B) of	2659
section 5747.055 of the Revised Code;	2660

(2) The senior citizen credit under division (C) of section	2661
5747.05 of the Revised Code;	2662

(3) The lump sum distribution credit under division (D) of	2663
section 5747.05 of the Revised Code;	2664

(4) The dependent care credit under section 5747.054 of the	2665
Revised Code;	2666

(5) The lump sum retirement income credit under division (C)	2667
of section 5747.055 of the Revised Code;	2668

(6) The lump sum retirement income credit under division (D)	2669
of section 5747.055 of the Revised Code;	2670

(7) The lump sum retirement income credit under division (E)	2671
of section 5747.055 of the Revised Code;	2672

(8) The low-income credit under section 5747.056 of the	2673
Revised Code;	2674

(9) The credit for displaced workers who pay for job training	2675
under section 5747.27 of the Revised Code;	2676

(10) The campaign contribution credit under section 5747.29	2677
of the Revised Code;	2678

(11) The twenty-dollar personal exemption credit under	2679
section 5747.022 of the Revised Code;	2680

(12) The joint filing credit under division (G) of section	2681
5747.05 of the Revised Code;	2682

(13) The nonresident credit under division (A) of section	2683
5747.05 of the Revised Code;	2684

(14) The credit for a resident's out-of-state income under	2685
division (B) of section 5747.05 of the Revised Code;	2686

(15) The credit for employers that enter into agreements with	2687
child day-care centers under section 5747.34 of the Revised Code;	2688

(16) The credit for employers that reimburse employee child	2689
care expenses under section 5747.36 of the Revised Code;	2690

(17) The credit for adoption of a minor child under section	2691
5747.37 of the Revised Code;	2692

(18) The credit for purchases of lights and reflectors under	2693
section 5747.38 of the Revised Code;	2694

(19) The job retention credit under division (B) of section	2695
5747.058 of the Revised Code;	2696

(20) The credit for selling alternative fuel under section	2697
5747.77 of the Revised Code;	2698

(21) The second credit for purchases of new manufacturing	2699
machinery and equipment and the credit for using Ohio coal under	2700
section 5747.31 of the Revised Code;	2701

(22) The job training credit under section 5747.39 of the	2702
Revised Code;	2703

(23) The enterprise zone credit under section 5709.66 of the	2704
Revised Code;	2705

(24) The credit for the eligible costs associated with a	2706
voluntary action under section 5747.32 of the Revised Code;	2707

(25) The credit for employers that establish on-site child	2708
day-care centers under section 5747.35 of the Revised Code;	2709

(26) The ethanol plant investment credit under section	2710
5747.75 of the Revised Code;	2711

(27) The credit for purchases of qualifying grape production	2712
property under section 5747.28 of the Revised Code;	2713

(28) The export sales credit under section 5747.057 of the	2714
Revised Code;	2715

(29) The credit for research and development and technology	2716
transfer investors under section 5747.33 of the Revised Code;	2717

(30) The enterprise zone credits under section 5709.65 of the	2718
Revised Code;	2719

(31) The research and development credit under section	2720
5747.331 of the Revised Code;	2721

(32) The credit for rehabilitating a historic building under	2722
section 5747.76 of the Revised Code;	2723

(33) The refundable credit for rehabilitating a historic	2724
building under section 5747.76 of the Revised Code;	2725

~~(33)~~(34) The refundable jobs creation credit under division	2726
(A) of section 5747.058 of the Revised Code;	2727

~~(34)~~(35) The refundable credit for taxes paid by a qualifying	2728
entity granted under section 5747.059 of the Revised Code;	2729

~~(35)~~(36) The refundable credits for taxes paid by a	2730
qualifying pass-through entity granted under division (J) of	2731
section 5747.08 of the Revised Code;	2732

~~(36)~~(37) The refundable credit for tax withheld under	2733
division (B)(1) of section 5747.062 of the Revised Code;	2734

~~(37)~~(38) The refundable credit under section 5747.80 of the	2735
Revised Code for losses on loans made to the Ohio venture capital	2736
program under sections 150.01 to 150.10 of the Revised Code.	2737

(B) For any credit, except the credits enumerated in	2738
divisions (A)~~(32)~~(33) to ~~(37)~~(38) of this section and the credit	2739
granted under division (I) of section 5747.08 of the Revised	2740
Code, the amount of the credit for a taxable year shall not	2741
exceed the tax due after allowing for any other credit that	2742
precedes it in the order required under this section. Any excess	2743
amount of a particular credit may be carried forward if	2744
authorized under the section creating that credit. Nothing in	2745
this chapter shall be construed to allow a taxpayer to claim,	2746
directly or indirectly, a credit more than once for a taxable	2747
year.	2748

Section 2. That existing sections 149.311, 166.01, 166.02,	2749
166.08, 166.11, 184.02, 1555.03, 3333.38, 3345.32, 3706.01,	2750
5725.151, 5733.47, 5747.76, and 5747.98 of the Revised Code are	2751
hereby repealed.	2752

Section 3. (A) Except as provided in division (B) of this	2753
section, the amendment by this act of sections 149.311, 5725.151,	2754
5733.47, 5747.76, and 5747.98 of the Revised Code applies only to	2755
the application periods beginning July 1, 2009, and July 1, 2010,	2756
and to tax credits allowed under rehabilitation tax credit	2757
certificates issued for applications filed for those application	2758
periods. Those sections as they existed before their amendment by	2759
this act apply to the application period beginning July 1, 2007,	2760
and ending June 30, 2008, and to tax credits allowed under	2761
rehabilitation tax credit certificates issued for applications	2762
filed for that application period.	2763

(B) The amendment by this act of division (A)(9) of section	2764
149.311 of the Revised Code, eliminating the application period	2765
beginning July 1, 2008, and ending June 30, 2009, takes effect	2766
when this act becomes law. The State Historic Preservation Officer	2767
shall not accept applications for that period, and the Director	2768
of Development shall not issue any rehabilitation tax credit	2769
certificates for that period.	2770

(C) Nothing in this section precludes the approval of	2771
applications for tax credit certificates as prescribed in division	2772
(D)(3) of section 149.311 of the Revised Code, as amended by this	2773
act, from among the $45 million reserved for that purpose from the	2774
$60 million in credits allowed for each of the application periods	2775
July 1, 2009, through June 30, 2010, and July 1, 2010, through	2776
June 30, 2011. The Director of Development shall approve such	2777
applications and issue tax credit certificates as prescribed in	2778
that section as amended by this act, may accept from such	2779
applicants the amount of qualified rehabilitation expenditures	2780
the applicant estimates will be paid or incurred if such	2781
estimates have not yet been provided to the Director, may notify	2782
such applicants whether the application was approved or denied on	2783
or after the effective date of this section, and may adopt any	2784
rules necessary to administer such applications.	2785

Section 4. The amendment by this act of sections 149.311,	2786
5725.151, 5733.47, 5747.76, and 5747.98 of the Revised Code and	2787
the enactment of Section 3 of this act provide for or are	2788
essential to the implementation of a tax levy. Therefore, under	2789
Ohio Constitution, Article II, Section 1d, the amendment and	2790
enactment are not subject to the referendum and go into immediate	2791
effect when this act becomes law.	2792

Section 5. All items in this section are hereby appropriated	2793
as designated out of any moneys in the state treasury to the	2794
credit of the designated fund that are not otherwise appropriated.	2795
For all appropriations made in this section, those in the first	2796
column are for fiscal year 2008 and those in the second column are	2797
for fiscal year 2009. The appropriations made in this section are	2798
in addition to any other appropriations made for the FY 2008-FY	2799
2009 biennium.	2800

AIR AIR QUALITY DEVELOPMENT AUTHORITY	2801

Appropriations

Coal Research/Development Fund Group	2802

7046	898604	Coal Research/Development Fund	$	$	66,000,000	2803
TOTAL 7046 Coal Research/Development Fund Group			$	$	66,000,000	2804
TOTAL ALL BUDGET FUND GROUPS			$	$	66,000,000	2805

DEV DEPARTMENT OF DEVELOPMENT	2806

Appropriations

State Special Revenue Fund Group	2807

5Z30	195694	JF Bioproducts	$	$	20,000,000	2808
5Z30	195695	JF Biomedical	$	$	40,000,000	2809
TOTAL SSR State Special Revenue Fund Group			$	$	60,000,000	2810

Logistics and Distribution Infrastructure Fund Group	2811

7008	195698	Logistics and Distribution Infrastructure	$	$	50,000,000	2812
TOTAL 7008 Logistics and Distribution Infrastructure Fund Group			$	$	50,000,000	2813
TOTAL ALL BUDGET FUND GROUPS			$	$	110,000,000	2814

JF BIOPRODUCTS

2815

The foregoing appropriation item 195694, JF Bioproducts,	2816
shall be used for the Ohio Bioproducts Development Program	2817
established in section 184.25 of the Revised Code.	2818

JF BIOMEDICAL

2819

The foregoing appropriation item 195695, JF Biomedical,	2820
shall be used for the Ohio Biomedical Development Program	2821
established in section 184.26 of the Revised Code.	2822

LOGISTICS AND DISTRIBUTION INFRASTRUCTURE

2823

The foregoing appropriation item 195698, Logistics and	2824
Distribution Infrastructure, shall be used for eligible logistics	2825
and distribution projects as defined in section 166.01 of the	2826
Revised Code.	2827

Within the limits set forth in this section, the Director of	2828
Budget and Management shall establish accounts indicating the	2829
source and amount of funds for each appropriation made in this	2830
section, and shall determine the form and manner in which	2831
appropriation accounts shall be maintained. Expenditures from	2832
appropriations contained in this section shall be accounted for as	2833
though made in Am. Sub. H.B. 119 of the 127th General Assembly.	2834

The appropriations made in this section are subject to all	2835
provisions of Am. Sub. H.B. 119 of the 127th General Assembly that	2836
are generally applicable to such appropriations.	2837

Section 6. The Governor has informed the General Assembly of	2838
the Governor's intent to propose appropriations, and it is the	2839
intent of the General Assembly to appropriate $20,000,000 in	2840
fiscal year 2010 and $10,000,000 in fiscal year 2011 for the	2841
purposes of the Ohio Bioproducts Development Program established	2842
in section 184.25 of the Revised Code.	2843

Section 7. The Governor has informed the General Assembly of	2844
the Governor's intent to propose appropriations, and it is the	2845
intent of the General Assembly to appropriate $40,000,000 in	2846
fiscal year 2010 and $20,000,000 in fiscal year 2011 for the	2847
purposes of the Ohio Biomedical Development Program established	2848
in section 184.26 of the Revised Code.	2849

Section 8. On June 30, 2011, or as soon as possible	2850
thereafter, the Director of Budget and Management shall transfer	2851
the cash balance in the Jobs Fund (Fund 5Z30) to the General	2852
Revenue Fund. Upon completion of the transfer, the Jobs Fund (Fund	2853
5Z30) is abolished.	2854

Section 9. The Governor has informed the General Assembly of	2855
the Governor's intent to propose appropriations, and it is the	2856
intent of the General Assembly to appropriate $25,000,000 for	2857
fiscal year 2010 and $25,000,000 for fiscal year 2011 for	2858
eligible logistics and distribution infrastructure projects as	2859
defined in section 166.01 of the Revised Code.	2860

Section 10. The Ohio Public Facilities Commission, upon the	2861
request of the Director of the Ohio Coal Development Office of	2862
the Ohio Air Quality Development Authority with the advice of the	2863
Technical Advisory Committee created in section 1551.35 of the	2864
Revised Code and the affirmative vote of a majority of the	2865
members of the Ohio Air Quality Development Authority is hereby	2866
authorized to issue and sell, in accordance with Section 15 of	2867
Article VIII, Ohio Constitution, and Chapter 151. and	2868
particularly sections 151.01 and 151.07 of the Revised Code,	2869
bonds and other obligations of the State of Ohio in an	2870
aggregate principal amount not to exceed $66,000,000 in	2871
addition to the issuance of obligations heretofore authorized	2872
by prior acts of the General Assembly. The obligations shall	2873
be dated, issued, and sold from time to time in such amounts	2874
as may be necessary to provide sufficient moneys to the credit	2875
of the Coal Research and Development Fund created in section	2876
1555.15 of the Revised Code to pay costs charged to the fund	2877
when due.	2878

Section 11. (A) All items set forth in this division are	2879
hereby appropriated out of any moneys in the state treasury, for	2880
the biennium ending on June 30, 2010, to the credit of the	2881
Advanced Energy Research and Development Taxable Fund (Fund 7004)	2882
that are not otherwise appropriated:	2883

AIR AIR QUALITY DEVELOPMENT AUTHORITY	2884

C89800	Advanced Energy R&D Taxable	$	9,000,000	2885
Total Air Quality Development Authority		$	9,000,000	2886
TOTAL Advanced Energy Research and Development				2887
Taxable Fund		$	9,000,000	2888

(B) All items set forth in this division are hereby	2889
appropriated out of any moneys in the state treasury, for the	2890
biennium ending on June 30, 2010, to the credit of the Advanced	2891
Energy Research and Development Fund (Fund 7005) that are not	2892
otherwise appropriated:	2893

AIR AIR QUALITY DEVELOPMENT AUTHORITY	2894

C89801	Advanced Energy R&D	$	19,000,000	2895
Total Air Quality Development Authority		$	19,000,000	2896
TOTAL Advanced Energy Research and Development				2897
Fund		$	19,000,000	2898

(C) The foregoing appropriation items C89800, Advanced Energy	2899
R&D Taxable, and C89801, Advanced Energy R&D, shall be used for	2900
advanced energy projects in the manner provided in sections	2901
3706.25 to 3706.30 of the Revised Code. The Executive Director of	2902
the Air Quality Development Authority may certify to the Director	2903
of Budget and Management that a need exists to appropriate	2904
investment earnings of funds 7004 and 7005 to be so used. If	2905
the Director of Budget and Management, pursuant to sections	2906
3706.25 to 3706.30 of the Revised Code, determines that	2907
investment earnings are available to support additional	2908
appropriations, such amounts are hereby appropriated.	2909

(D) Upon the request of the Executive Director of the Air	2910
Quality Development Authority, the Director of Budget and	2911
Management may transfer cash between funds 7004 and 7005. Amounts	2912
transferred are hereby appropriated.	2913

(E) Expenditures from appropriations contained in this	2914
section may be accounted as though made in the main capital	2915
appropriations act of the FY 2009-FY 2010 biennium of the 127th	2916
General Assembly. The appropriations made in this section are	2917
subject to all provisions of the FY 2009-FY 2010 biennial capital	2918
appropriations act of the 127th General Assembly that are	2919
generally applicable to such appropriations.	2920

Section 12. The Governor has informed the General Assembly of	2921
the Governor's intent to propose appropriations, and it is the	2922
intent of the General Assembly to appropriate amounts not to	2923
exceed $56 million for the biennium ending on June 30, 2012, from	2924
bond proceeds deposited in the state treasury to the credit of	2925
the Advanced Energy Research and Development Taxable Fund (Fund	2926
7004) and the Advanced Energy Research and Development Fund (Fund	2927
7005) for advanced energy projects as provided in sections	2928
3706.25 to 3706.30 of the Revised Code.	2929

Section 13. All items set forth in this section are hereby	2930
appropriated out of any moneys in the state treasury, for the	2931
biennium ending on June 30, 2010, to the credit of the Local	2932
Infrastructure Development Fund (Fund 7039) that are not otherwise	2933
appropriated:	2934

Appropriations

PWC PUBLIC WORKS COMMISSION	2935

C15061	Local Infrastructure Development	$	80,000,000	2936
Total Public Works Commission		$	80,000,000	2937
TOTAL Local Infrastructure Development Fund		$	80,000,000	2938

(A) On July 1, 2009, or as soon as possible thereafter, the	2939
Director of Budget and Management shall transfer $80,000,000 in	2940
cash from the Jobs Fund created in the state treasury by Section 4	2941
of Sub. H.B. 544 of the 127th General Assembly to the Local	2942
Infrastructure Development Fund (Fund 7039) created in section	2943
164.28 of the Revised Code.	2944

(B) The foregoing appropriation item C15061, Local	2945
Infrastructure Development, shall be used by the Public Works	2946
Commission for capital improvement projects under Chapter 164. of	2947
the Revised Code. The Director of the Public Works Commission may	2948
certify to the Director of Budget and Management that a need	2949
exists to appropriate investment earnings of the Local	2950
Infrastructure Development Fund (Fund 7039) to be so used. If the	2951
Director of Budget and Management determines pursuant to division	2952
(D) of section 164.08 and section 164.12 of the Revised Code that	2953
investment earnings are available to support additional	2954
appropriations, such amounts are hereby appropriated.	2955

Expenditures from appropriations contained in this section	2956
may be accounted as though made in the main capital appropriations	2957
act of the FY 2009-FY 2010 biennium of the 127th General Assembly.	2958
Subject to division (C) of this section, the appropriations made	2959
in this section are subject to all provisions of the FY 2009-FY	2960
2010 biennial capital appropriations act of the 127th General	2961
Assembly that are generally applicable to such appropriations.	2962

(C) Notwithstanding any applicable limitations in the main	2963
capital appropriations act of the 127th General Assembly on the	2964
use of capital appropriations, the foregoing appropriation item	2965
C15061, Local Infrastructure Development, may also be used for	2966
broadband initiatives.	2967

(D) It is the intent of the General Assembly not to compete	2968
with the private sector in providing broadband access in this	2969
state. Notwithstanding any other law to the contrary, the Public	2970
Works Commission, in conjunction with the public-private	2971
partnership known as Connect Ohio, shall adopt rules that	2972
prescribe the manner in which the moneys specified in division (C)	2973
of this section shall be distributed to the district public works	2974
integrating committees as those districts are defined in section	2975
164.03 of the Revised Code.	2976

(E) On or before June 30, 2011, or as soon as possible	2977
thereafter, the Director of the Public Works Commission shall	2978
notify the Director of Budget and Management that all projects	2979
funded by the Local Infrastructure Development Fund (Fund 7039)	2980
created in section 164.28 of the Revised Code have been completed	2981
and the Director of Budget and Management shall transfer the cash	2982
balance remaining in the Local Infrastructure Development Fund	2983
(Fund 7039) to the General Revenue Fund. Upon completion of the	2984
transfer, the Local Infrastructure Development Fund (Fund 7039) is	2985
abolished.	2986

Section 14. All items set forth in this section are hereby	2987
appropriated out of any moneys in the state treasury, for the	2988
biennium ending on June 30, 2010, to the credit of the State	2989
Capital Improvements Fund (Fund 7038) that are not otherwise	2990
appropriated.	2991

Appropriations

PWC PUBLIC WORKS COMMISSION	2992

C15000	Local Public Infrastructure	$	120,000,000	2993
Total Public Works Commission		$	120,000,000	2994
TOTAL State Capital Improvements Fund		$	120,000,000	2995

The foregoing appropriation item C15000, Local Public	2996
Infrastructure, shall be used in accordance with sections 164.01	2997
to 164.12 of the Revised Code. The Director of the Public Works	2998
Commission may certify to the Director of Budget and Management	2999
that a need exists to appropriate investment earnings of Fund 7038	3000
to be used in accordance with sections 164.01 to 164.12 of the	3001
Revised Code. If the Director of Budget and Management, pursuant	3002
to division (D) of section 164.08 and section 164.12 of the	3003
Revised Code, determines that investment earnings are available to	3004
support additional appropriations, such amounts are hereby	3005
appropriated.	3006

Expenditures from appropriations contained in this section	3007
may be accounted as though made in the main capital appropriations	3008
act of the FY 2009-FY 2010 biennium of the 127th General Assembly.	3009
The appropriations made in this section are subject to all	3010
provisions of the FY 2009-FY 2010 biennial capital appropriations	3011
act of the 127th General Assembly that are generally applicable to	3012
such appropriations.	3013

Section 15. The Ohio Public Facilities Commission is hereby	3014
authorized to issue and sell, in accordance with Section 2p of	3015
Article VIII, Ohio Constitution, and pursuant to sections 151.01	3016
and 151.08 of the Revised Code, original obligations of the state,	3017
in an aggregate principal amount not to exceed $120,000,000, in	3018
addition to the original obligations heretofore authorized by	3019
prior acts of the General Assembly. These authorized obligations	3020
shall be issued and sold from time to time, subject to applicable	3021
constitutional and statutory limitations, as needed to ensure	3022
sufficient moneys to the credit of the State Capital Improvements	3023
Fund (Fund 7038) to pay costs of the state in financing or	3024
assisting in the financing of local subdivision capital	3025
improvement projects.	3026

Section 16. Notwithstanding section 126.14 of the Revised	3027
Code, appropriations from the State Capital Improvement Fund	3028
(Fund 7038) shall be released upon presentation of a request to	3029
release the funds by the Director of the Public Works Commission	3030
to the Director of Budget and Management.	3031

Section 17. The Governor has informed the General Assembly of	3032
the Governor's intent to propose appropriations, and it is the	3033
intent of the General Assembly to appropriate, for the Choose	3034
Ohio First Co-op/Internship Program established under section	3035
3333.72 of the Revised Code a minimum of $50,000,000 each	3036
fiscal year from fiscal year 2010 through fiscal year 2014.	3037

Section 18. That Section 229.10 of Am. Sub. H.B. 67 of the	3038
127th General Assembly be amended to read as follows:	3039

Sec. 229.10. PWC PUBLIC WORKS COMMISSION

3040

Local Transportation Improvements Fund Group	3041

052	150-402	Local Transportation Improvement Program - Operating	$	291,537	$	306,178	3042
052	150-701	Local Transportation Improvement Program	$	67,500,000	$	~~67,500,000~~ 267,500,000	3043
TOTAL 052 Local Transportation							3044
Improvements Fund Group			$	67,791,537	$	~~67,806,178~~ 267,806,178	3045

Local Infrastructure Improvements Fund Group	3046

038	150-321	State Capital Improvements Program - Operating Expenses	$	879,237	$	918,912	3047
TOTAL LIF Local Infrastructure							3048
Improvements Fund Group			$	879,237	$	918,912	3049
TOTAL ALL BUDGET FUND GROUPS			$	68,670,774	$	~~68,725,090~~ 268,725,090	3050

CASH TRANSFER FROM THE BUDGET STABILIZATION FUND

3051

Notwithstanding any other law to the contrary, on July 1,	3052
2008, or as soon as possible thereafter, the Director of Budget	3053
and Management shall transfer $200,000,000 in cash from the Budget	3054
Stabilization Fund to the Local Transportation Improvement Program	3055
Fund created in section 164.14 of the Revised Code.	3056

DISTRICT ADMINISTRATION COSTS

3057

The Director of the Public Works Commission is authorized to	3058
create a District Administration Costs Program from interest	3059
earnings of the Capital Improvements Fund and Local Transportation	3060
Improvement Program Fund proceeds. The program shall be used to	3061
provide for the direct costs of district administration of the	3062
nineteen public works districts. Districts choosing to participate	3063
in the program shall only expend Capital Improvements Fund moneys	3064
for Capital Improvements Fund costs and Local Transportation	3065
Improvement Program Fund moneys for Local Transportation	3066
Improvement Program Fund costs. The account shall not exceed	3067
$1,235,000 per fiscal year. Each public works district may be	3068
eligible for up to $65,000 per fiscal year from its district	3069
allocation as provided in sections 164.08 and 164.14 of the	3070
Revised Code.	3071

The Director, by rule, shall define allowable and	3072
nonallowable costs for the purpose of the District Administration	3073
Costs Program. Nonallowable costs include indirect costs, elected	3074
official salaries and benefits, and project-specific costs. No	3075
district public works committee may participate in the District	3076
Administration Costs Program without the approval of those costs	3077
by the district public works committee under section 164.04 of the	3078
Revised Code.	3079

REAPPROPRIATIONS

3080

All capital appropriations from the Local Transportation	3081
Improvement Program Fund (Fund 052) in Am. Sub. H.B. 68 of the	3082
126th General Assembly remaining unencumbered as of June 30, 2007,	3083
are reappropriated for use during the period July 1, 2007, through	3084
June 30, 2008, for the same purpose.	3085

Notwithstanding division (B) of section 127.14 of the Revised	3086
Code, all capital appropriations and reappropriations from the	3087
Local Transportation Improvement Program Fund (Fund 052) in this	3088
act remaining unencumbered as of June 30, 2008, are reappropriated	3089
for use during the period July 1, 2008, through June 30, 2009, for	3090
the same purposes, subject to the availability of revenue as	3091
determined by the Director of the Public Works Commission.	3092

Section 19. That existing Section 229.10 of Am. Sub. H.B. 67	3093
of the 127th General Assembly is hereby repealed.	3094

Section 20. The amendments to section 184.02 that add the	3095
cross references to sections 184.25 and 184.26 and enactments of	3096
sections 184.23, 184.231, 184.24, 184.25, and 184.26 of the	3097
Revised Code are hereby repealed, effective June 30, 2011.	3098

Section 21. The enactment of section 164.28 of the Revised	3099
Code is hereby repealed, effective June 30, 2013.	3100

Section 22. The amendment or enactment by this act of a	3101
codified or uncodified section listed below is exempt from the	3102
referendum under Ohio Constitution, Article II, Section 1d and	3103
section 1.471 of the Revised Code and takes effect immediately	3104
when this act becomes law:	3105

Sec. 164.28, 166.01, 166.02, 166.08, 166.11, 166.25, 166.26,	3106
166.27, 166.30, 184.02, 184.174, 184.23, 184.231, 184.24, 184.25,	3107
184.26, 184.37, 1555.03, 3706.01	3108

Sections 5, 18, and 19.

3109