As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 149

Representative Miller 

Cosponsors: Representatives Letson, Weddington, Williams, S., Yates, Luckie, Domenick, Chandler, Foley, Murray 

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A BILL

To amend section 166.01 of the Revised Code to allow

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Chapter 166. loans and loan guarantees to be made

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to establish supermarkets and grocery stores in

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underserved communities, and to make an

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appropriation.

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

Section 1. That section 166.01 of the Revised Code be amended	6
to read as follows:	7

Sec. 166.01.  As used in this chapter:

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(A) "Allowable costs" means all or part of the costs of	9
project facilities, eligible projects, eligible innovation	10
projects, eligible research and development projects, eligible	11
advanced energy projects, or eligible logistics and distribution	12
projects, including costs of acquiring, constructing,	13
reconstructing, rehabilitating, renovating, enlarging, improving,	14
equipping, or furnishing project facilities, eligible projects,	15
eligible innovation projects, eligible research and development	16
projects, eligible advanced energy projects, or eligible logistics	17
and distribution projects, site clearance and preparation,	18
supplementing and relocating public capital improvements or	19
utility facilities, designs, plans, specifications, surveys,	20
studies, and estimates of costs, expenses necessary or incident	21
to determining the feasibility or practicability of assisting an	22
eligible project, an eligible innovation project, an eligible	23
research and development project, an eligible advanced energy	24
project, or an eligible logistics and distribution project, or	25
providing project facilities or facilities related to an eligible	26
project, an eligible innovation project, an eligible research and	27
development project, an eligible advanced energy project, or an	28
eligible logistics and distribution project, architectural,	29
engineering, and legal services fees and expenses, the costs of	30
conducting any other activities as part of a voluntary action, and	31
such other expenses as may be necessary or incidental to the	32
establishment or development of an eligible project, an eligible	33
innovation project, an eligible research and development	34
project, an eligible advanced energy project, or an eligible	35
logistics and distribution project, and reimbursement of moneys	36
advanced or applied by any governmental agency or other person	37
for allowable costs.	38

(B) "Allowable innovation costs" includes allowable costs of	39
eligible innovation projects and, in addition, includes the costs	40
of research and development of eligible innovation projects;	41
obtaining or creating any requisite software or computer hardware	42
related to an eligible innovation project or the products or	43
services associated therewith; testing (including, without	44
limitation, quality control activities necessary for initial	45
production), perfecting, and marketing of such products and	46
services; creating and protecting intellectual property related to	47
an eligible innovation project or any products or services related	48
thereto, including costs of securing appropriate patent,	49
trademark, trade secret, trade dress, copyright, or other form of	50
intellectual property protection for an eligible innovation	51
project or related products and services; all to the extent that	52
such expenditures could be capitalized under then-applicable	53
generally accepted accounting principles; and the reimbursement of	54
moneys advanced or applied by any governmental agency or other	55
person for allowable innovation costs.	56

(C) "Eligible innovation project" includes an eligible	57
project, including any project facilities associated with an	58
eligible innovation project and, in addition, includes all	59
tangible and intangible property related to a new product or	60
process based on new technology or the creative application of	61
existing technology, including research and development, product	62
or process testing, quality control, market research, and related	63
activities, that is to be acquired, established, expanded,	64
remodeled, rehabilitated, or modernized for industry, commerce,	65
distribution, or research, or any combination thereof, the	66
operation of which, alone or in conjunction with other eligible	67
projects, eligible innovation projects, or innovation property,	68
will create new jobs or preserve existing jobs and employment	69
opportunities and improve the economic welfare of the people of	70
the state.	71

(D) "Eligible project" means project facilities to be	72
acquired, established, expanded, remodeled, rehabilitated, or	73
modernized for industry, commerce, distribution, or research, or	74
any combination thereof, the operation of which, alone or in	75
conjunction with other facilities, will create new jobs or	76
preserve existing jobs and employment opportunities and improve	77
the economic welfare of the people of the state. "Eligible	78
project" includes, without limitation, a voluntary action. For	79
purposes of this division, "new jobs" does not include existing	80
jobs transferred from another facility within the state, and	81
"existing jobs" includes only those existing jobs with work places	82
within the municipal corporation or unincorporated area of the	83
county in which the eligible project is located.	84

"Eligible project" does not include project facilities to be	85
acquired, established, expanded, remodeled, rehabilitated, or	86
modernized for industry, commerce, distribution, or research, or	87
any combination of industry, commerce, distribution, or research,	88
if the project facilities consist solely of	89
point-of-final-purchase retail facilities, except underserved	90
community groceries. If the project facilities consist of both	91
point-of-final-purchase retail facilities and nonretail	92
facilities, only the portion of the project facilities consisting	93
of nonretail facilities or an underserved community grocery is an	94
eligible project. If a warehouse facility is part of a	95
point-of-final-purchase retail facility that is not an underserved	96
community grocery and supplies only that facility, the warehouse	97
facility is not an eligible project. Catalog distribution	98
facilities are not considered point-of-final-purchase retail	99
facilities for purposes of this paragraph, and are eligible	100
projects.	101

(E) "Eligible research and development project" means an	102
eligible project, including project facilities, comprising,	103
within, or related to, a facility or portion of a facility at	104
which research is undertaken for the purpose of discovering	105
information that is technological in nature and the application of	106
which is intended to be useful in the development of a new or	107
improved product, process, technique, formula, or invention, a new	108
product or process based on new technology, or the creative	109
application of existing technology.	110

(F) "Financial assistance" means inducements under division	111
(B) of section 166.02 of the Revised Code, loan guarantees under	112
section 166.06 of the Revised Code, and direct loans under section	113
166.07 of the Revised Code.	114

(G) "Governmental action" means any action by a governmental	115
agency relating to the establishment, development, or operation of	116
an eligible project, eligible innovation project, eligible	117
research and development project, eligible advanced energy	118
project, or eligible logistics and distribution project, and	119
project facilities that the governmental agency acting has	120
authority to take or provide for the purpose under law,	121
including, but not limited to, actions relating to contracts and	122
agreements, zoning, building, permits, acquisition and disposition	123
of property, public capital improvements, utility and	124
transportation service, taxation, employee recruitment and	125
training, and liaison and coordination with and among governmental	126
agencies.	127

(H) "Governmental agency" means the state and any state	128
department, division, commission, institution or authority; a	129
municipal corporation, county, or township, and any agency	130
thereof, and any other political subdivision or public corporation	131
or the United States or any agency thereof; any agency,	132
commission, or authority established pursuant to an interstate	133
compact or agreement; and any combination of the above.	134

(I) "Innovation financial assistance" means inducements under	135
division (B) of section 166.12 of the Revised Code, innovation	136
Ohio loan guarantees under section 166.15 of the Revised Code, and	137
innovation Ohio loans under section 166.16 of the Revised Code.	138

(J) "Innovation Ohio loan guarantee reserve requirement"	139
means, at any time, with respect to innovation loan guarantees	140
made under section 166.15 of the Revised Code, a balance in the	141
innovation Ohio loan guarantee fund equal to the greater of twenty	142
per cent of the then-outstanding principal amount of all	143
outstanding innovation loan guarantees made pursuant to section	144
166.15 of the Revised Code or fifty per cent of the principal	145
amount of the largest outstanding guarantee made pursuant to	146
section 166.15 of the Revised Code.	147

(K) "Innovation property" includes property and also includes	148
software, inventory, licenses, contract rights, goodwill,	149
intellectual property, including without limitation, patents,	150
patent applications, trademarks and service marks, and trade	151
secrets, and other tangible and intangible property, and any	152
rights and interests in or connected to the foregoing.	153

(L) "Loan guarantee reserve requirement" means, at any time,	154
with respect to loan guarantees made under section 166.06 of the	155
Revised Code, a balance in the loan guarantee fund equal to the	156
greater of twenty per cent of the then-outstanding principal	157
amount of all outstanding guarantees made pursuant to section	158
166.06 of the Revised Code or fifty per cent of the principal	159
amount of the largest outstanding guarantee made pursuant to	160
section 166.06 of the Revised Code.	161

(M) "Person" means any individual, firm, partnership,	162
association, corporation, or governmental agency, and any	163
combination thereof.	164

(N) "Project facilities" means buildings, structures, and	165
other improvements, and equipment and other property, excluding	166
small tools, supplies, and inventory, and any one, part of, or	167
combination of the above, comprising all or part of, or serving or	168
being incidental to, an eligible project, an eligible innovation	169
project, an eligible research and development project, an	170
eligible advanced energy project, or an eligible logistics and	171
distribution project, including, but not limited to, public	172
capital improvements.	173

(O) "Property" means real and personal property and interests	174
therein.	175

(P) "Public capital improvements" means capital improvements	176
or facilities that any governmental agency has authority to	177
acquire, pay the costs of, own, maintain, or operate, or to	178
contract with other persons to have the same done, including, but	179
not limited to, highways, roads, streets, water and sewer	180
facilities, railroad and other transportation facilities, and air	181
and water pollution control and solid waste disposal facilities.	182
For purposes of this division, "air pollution control facilities"	183
includes, without limitation, solar, geothermal, biofuel, biomass,	184
wind, hydro, wave, and other advanced energy projects as defined	185
in section 3706.25 of the Revised Code.	186

(Q) "Research and development financial assistance" means	187
inducements under section 166.17 of the Revised Code, research and	188
development loans under section 166.21 of the Revised Code, and	189
research and development tax credits under sections 5733.352 and	190
5747.331 of the Revised Code.	191

(R) "Targeted innovation industry sectors" means industry	192
sectors involving the production or use of advanced materials,	193
instruments, controls and electronics, power and propulsion,	194
biosciences, and information technology, or such other sectors as	195
may be designated by the director of development.	196

(S) "Voluntary action" means a voluntary action, as defined	197
in section 3746.01 of the Revised Code, that is conducted under	198
the voluntary action program established in Chapter 3746. of the	199
Revised Code.	200

(T) "Project financing obligations" means obligations issued	201
pursuant to section 166.08 of the Revised Code other than	202
obligations for which the bond proceedings provide that bond	203
service charges shall be paid from receipts of the state	204
representing gross profit on the sale of spirituous liquor as	205
referred to in division (B)(4) of section 4310.10 of the Revised	206
Code.	207

(U) "Regional economic development entity" means an entity	208
that is under contract with the director of development to	209
administer a loan program under this chapter in a particular area	210
of this state.	211

(V) "Advanced energy research and development fund" means the	212
advanced energy research and development fund created in section	213
3706.27 of the Revised Code.	214

(W) "Advanced energy research and development taxable fund"	215
means the advanced energy research and development taxable fund	216
created in section 3706.27 of the Revised Code.	217

(X) "Eligible advanced energy project" means an eligible	218
project that is an "advanced energy project" as defined in section	219
3706.25 of the Revised Code.	220

(Y) "Eligible logistics and distribution project" means an	221
eligible project, including project facilities, to be acquired,	222
established, expanded, remodeled, rehabilitated, or modernized for	223
transportation logistics and distribution infrastructure purposes.	224
As used in this division, "transportation logistics and	225
distribution infrastructure purposes" means promoting, providing	226
for, and enabling improvements to the ground, air, and water	227
transportation infrastructure comprising the transportation system	228
in this state, including, without limitation, highways, streets,	229
roads, bridges, railroads carrying freight, and air and water	230
ports and port facilities, and all related supporting facilities.	231

(Z) "Underserved community grocery" means a retail facility	232
that operates on a self-service basis, primarily selling fresh	233
groceries, produce, poultry, meat, baked goods, and dairy	234
products; classified as a "supermarket and other grocery (except	235
convenience) store" under the North American industry	236
classification system; and located in a census tract with	237
below-average density of supermarkets and groceries or containing	238
households a majority of which are low-income households.	239

Section 2.  That existing section 166.01 of the Revised Code	240
is hereby repealed.	241

Section 3. There is hereby created the Ohio Fresh Food	242
Initiative, to be administered by the Director of Development for	243
the purpose of providing grants, loans, and loan guarantees to	244
underserved community groceries as defined in division (Z) of	245
section 166.01 of the Revised Code. The Director shall develop	246
guidelines for the administration of the program and may	247
collaborate with and provide funding to nonprofit organizations	248
that provide financial assistance to businesses in underserved	249
areas.	250

Pursuant to Chapter 166. of the Revised Code, up to	251
$10,000,000 in fiscal year 2010 shall be expended from the	252
Facilities Establishment Fund to establish and provide financial	253
assistance under the Initiative. Such moneys are appropriated, and	254
shall be accounted for as though appropriated in appropriation	255
item 195615, Facilities Establishment, in the main operating	256
budget act for fiscal years 2010 and 2011.	257

Section 4. The codified and uncodified sections in this act	258
are not subject to the referendum. Therefore, under Ohio	259
Constitution, Article II, section 1d and section 1.471 of the	260
Revised Code, the codified and uncodified sections of law	261
contained in this act go into immediate effect when this act	262
becomes law.	263