As Reported by the House Finance and Appropriations Committee

129th General Assembly
Regular Session
2011-2012
Sub. H. B. No. 371


Representatives Amstutz, Weddington 

Cosponsors: Representatives Blair, McClain, Duffey 

A BILL
To amend sections 189.01, 189.03, 189.04, 189.05, 1
189.06, 189.07, and 189.08 of the Revised Code and 2
to amend Sections 261.10 and 261.20.93 of Am. Sub. 3
H.B. 153 of the 129th General Assembly regarding 4
the Local Government Innovation Program and to 5
make an appropriation.6


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

       Section 1.  That sections 189.01, 189.03, 189.04, 189.05, 7
189.06, 189.07, and 189.08 of the Revised Code be amended to read 8
as follows:9

       Sec. 189.01.  As used in sections 189.01 to 189.09 of the 10
Revised Code, "political subdivision" means a municipal 11
corporation, township, county, school district, or other body 12
corporate and politic responsible for governmental activities in a 13
geographic area smaller than that of the state. "Political 14
subdivision" includes a county hospital commission appointed under 15
section 339.14 of the Revised Code, board of hospital 16
commissioners appointed for a municipal hospital under section 17
749.04 of the Revised Code, board of hospital trustees appointed 18
for a municipal hospital under section 749.22 of the Revised Code, 19
regional planning commission created pursuant to section 713.21 of 20
the Revised Code, county planning commission created pursuant to 21
section 713.22 of the Revised Code, joint planning council created 22
pursuant to section 713.231 of the Revised Code, interstate 23
regional planning commission created pursuant to section 713.30 of 24
the Revised Code, port authority created pursuant to section 25
4582.02 or 4582.26 of the Revised Code or in existence on December 26
16, 1964, regional council established by political subdivisions 27
pursuant to Chapter 167. of the Revised Code, emergency planning 28
district and joint emergency planning district designated under 29
section 3750.03 of the Revised Code, joint emergency medical 30
services district created pursuant to section 307.052 of the 31
Revised Code, fire and ambulance district created pursuant to 32
section 505.375 of the Revised Code, joint interstate emergency 33
planning district established by an agreement entered into under 34
section 3750.03 of the Revised Code, county solid waste management 35
district and joint solid waste management district established 36
under section 343.01 or 343.012 of the Revised Code, community 37
school established under Chapter 3314. of the Revised Code, the 38
county or counties served by a community-based correctional 39
facility and program or district community-based correctional 40
facility and program established and operated under sections 41
2301.51 to 2301.58 of the Revised Code, a community-based 42
correctional facility and program or district community-based 43
correctional facility and program that is so established and 44
operated, and the facility governing board of a community-based 45
correctional facility and program or district community-based 46
correctional facility and program that is so established and 47
operatedhas the same meaning as in section 2744.01 of the Revised 48
Code. 49

       Sec. 189.03.  (A) There is hereby created the local 50
government innovation council to establish criteria for and make 51
loans and awards to political subdivisions for local government 52
innovation projects and take such other actions, in consultation 53
with the department of development, as necessary to implement the 54
local government innovation program established in section 189.02 55
of the Revised Code.56

       (B) The council shall consist of the following members:57

       (1) The director of development, or the director's designee;58

       (2) The director of budget and management, or the director's 59
designee;60

       (3) The auditor of state, or the auditor's designee;61

       (4) Two members of the senate, one member appointed by the 62
president of the senate and one member appointed by the minority 63
leader of the senate;64

       (5) Two members of the house of representatives, one member 65
appointed by the speaker of the house of representatives and one 66
member appointed by the minority leader of the house of 67
representatives;68

       (6) One member recommended by the Ohio municipal league, 69
appointed by the governor;70

       (7) One member recommended by the county commissioners 71
association of Ohio, appointed by the governor;72

       (8) One member recommended by the Ohio township association, 73
appointed by the governor;74

       (9) One member recommended by the Ohio chamber of commerce, 75
appointed by the governor;76

       (10) One member recommended by the Ohio school boards 77
association, appointed by the governor;78

       (11) One member, appointed by the governor, who is 79
recommended by an Ohio-based advocacy group selected by the 80
governor;81

       (12) One member, appointed by the governor, who is 82
recommended by an Ohio-based foundation selected by the governor;83

       (13) One member with expertise in local government issues,84
appointed by the governor, who is recommended by the chancellor of 85
the board of regents.86

       (C) Initial appointments to the council shall be made not 87
later than September 30, 2011. Of the governor's initial 88
appointees, three shall serve an initial term of one year, two89
three shall serve an initial term of two years, and two shall 90
serve an initial term of three years. Thereafter, each member 91
appointed by the governor shall serve a four-year term, or a term 92
ending when the council ceases to exist, whichever occurs first. 93
The remaining members of the council shall be appointed for 94
four-year terms, or terms ending when the council ceases to exist, 95
whichever occurs first. Members may be reappointed to the council.96

       Vacancies on the council shall be filled in the same manner 97
as the original appointments. 98

       (D) At its first meeting, the council shall select a 99
chairperson from among its members. After the first meeting, the 100
council shall meet at the call of the chairperson or upon the 101
request of a majority of the council's members. A majority of the 102
council constitutes a quorum. 103

       (E) The department of development shall provide 104
administrative assistance to the council.105

       (F) Council members shall receive no compensation but shall 106
be reimbursed for actual and necessary expenses incurred in the 107
performance of council duties.108

       Sec. 189.04.  (A) The local government innovation council 109
shall award loans to a qualified political subdivision or a 110
qualified group of political subdivisions to be used for the 111
purchase of equipment, facilities, or systems or for 112
implementation costs.113

       Loans made under division (A) of this section shall be repaid 114
by recipients using savings achieved from the innovation project. 115

       (B) Up to twenty per cent of the funds in the local 116
government innovation fund, established in section 189.05 of the 117
Revised Code, may be awarded by the council as grants to political 118
subdivisions for use in process improvement or implementation of 119
innovation project awards. 120

       (C) The council shall award, in total grants and loans, not 121
more than one hundred thousand dollars in total grants and not 122
more than one hundred thousand dollars in total loans to an 123
individual political subdivision and not more than five hundred 124
thousand dollars per innovation project under this section. For an 125
innovation project involving a qualified group of political 126
subdivisions, the council shall award, in total grants and loans, 127
not more than five hundred thousand dollars, and the average 128
amount per political subdivision shall not exceed one hundred 129
thousand dollars.130

       Sec. 189.05.  Funds for awards made by the local government 131
innovation council shall be made from the local government 132
innovation fund, which is hereby created in the state treasury. 133
The fund shall consist of moneys appropriated to it, repayments of 134
principal and interest on loans made from the fund, and any grants 135
or donations received from nonpublic entities. Interest earned on 136
the money in the fund shall be credited to the fund. 137

       Sec. 189.06.  (A) All political subdivisions of the state are 138
eligible to apply for awards under the local government innovation 139
program. TheApplications shall be submitted to the department of 140
development on a form specified by the director of development. 141
The department shall provide the application to the local 142
government innovation council for evaluation and selection.143

       The local government innovation council shall award loans and 144
grants under the program in accordance with a competitive process 145
to be developed by the council. 146

       (B) Not later than December 31, 2011, the council shall 147
establish criteria for evaluating proposals and making awards to 148
political subdivisions. The criteria shall be developed in 149
consultation with nonpublic entities involved in local government 150
issues, state institutions of higher education, and the department 151
of development, as determined by the council. The criteria shall 152
include a requirement that at least one of the political 153
subdivisions that is a party to the proposal provide matching 154
funds. The matching funds may be provided by a nonpublic entity. 155
The criteria for evaluating proposals may include the following 156
provisions:157

       (1) The expected return on investment, based on the ratio of 158
expected savings;159

       (2) The number of participating entities in the proposal;160

       (3) The probability of the proposal's success;161

       (4) The percentage of local matching funds available;162

       (5) The ability to replicate the proposal in other political 163
subdivisions;164

       (6) Whether the proposal is part of a larger consolidation 165
effort by the applicant or applicants;166

       (7) Whether the proposal is to implement performance audit 167
or other audit recommendations under section 117.462Chapter 117.168
of the Revised Code;169

       (8) Whether the applicant has successfully completed an 170
innovation project in the past.171

       Sec. 189.07. A political subdivision seeking an award under 172
the local government innovation program shall submit a proposal to 173
the subdivision's district public works integrating committee. The 174
committee shall submit the proposal to the department of 175
development, with advisory comments. The department shall provide 176
the proposal to the local government innovation council for 177
evaluation and selectionThe local government innovation council 178
shall develop and implement a means of ensuring local support for 179
each grant or loan application submitted to the department of 180
development under section 189.06 of the Revised Code.181

       Sec. 189.08.  (A) Starting not later than March 1, 2012, the 182
local government innovation council shall begin evaluating 183
proposals received from the department of development for awards 184
to political subdivisions. Not later than July 1, 2012, the 185
council shall make its first round of awards to the political 186
subdivisions.187

       (B) After making the first round of awards, the council shall 188
evaluate proposals and make awards on a quarterly basis, or on 189
another schedule determined by the council, with the council 190
determining the funding levels for each round of awards. 191

       (C) When making awards from the local government innovation 192
fund created in section 189.05 of the Revised Code, the funds 193
available for each round of awardsawarded across all rounds shall 194
be divided into the following tiersallocated as follows:195

       (1) At least thirty per cent to political subdivisions that 196
are not counties and have a population of less than 50,00020,000197
residents as determined in the decennial census conducted in 2010 198
or counties with a population of less than 130,000235,000199
residents as determined in the decennial census conducted in 2010;200

       (2) At least thirty per cent to political subdivisions that 201
are not counties and have a population of 50,00020,000 residents 202
or more as determined in the decennial census conducted in 2010 or 203
counties with a population of 130,000235,000 residents or more as 204
determined in the decennial census conducted in 2010.205

       If a proposal includes participants from both division206
divisions (C)(1) and (2) of this section, the award may be drawn 207
from either or both tiers in the local government innovation fund.208

       Section 2.  That existing sections 189.01, 189.03, 189.04, 209
189.05, 189.06, 189.07, and 189.08 of the Revised Code are hereby 210
repealed.211

       Section 3.  The member appointed to the Local Government 212
Innovation Council under division (B)(13) of section 189.03 of the 213
Revised Code, as that section existed prior to the act's effective 214
date, shall be replaced on the Council by the member appointed by 215
the Governor in accordance with the act's amendments to that 216
section.217

       Section 4.  That Sections 261.10 and 261.20.93 of Am. Sub. 218
H.B. 153 of the 129th General Assembly be amended to read as 219
follows:220

       Sec. 261.10. DEV DEPARTMENT OF DEVELOPMENT221

General Revenue Fund222

GRF 195401 Thomas Edison Program $ 14,820,354 $ 0 223
GRF 195402 Coal Development Office $ 260,983 $ 261,205 224
GRF 195404 Small Business Development $ 1,565,770 $ 0 225
GRF 195405 Minority Business Enterprise Division $ 1,118,528 $ 0 226
GRF 195407 Travel and Tourism $ 5,000,000 $ 0 227
GRF 195412 Rapid Outreach Grants $ 9,000,000 $ 0 228
GRF 195415 Strategic Business Investment Division and Regional Offices $ 4,500,000 $ 0 229
GRF 195416 Governor's Office of Appalachia $ 3,700,000 $ 3,700,000 230
GRF 195422 Technology Action $ 547,341 $ 0 231
GRF 195426 Clean Ohio Implementation $ 468,365 $ 0 232
GRF 195432 Global Markets $ 3,500,000 $ 0 233
GRF 195434 Industrial Training Grants $ 10,000,000 $ 0 234
GRF 195497 CDBG Operating Match $ 1,015,000 $ 0 235
GRF 195501 Appalachian Local Development Districts $ 391,482 $ 391,482 236
GRF 195502 Appalachian Regional Commission Dues $ 195,000 $ 195,000 237
GRF 195528 Economic Development Projects $ 0 $ 26,943,518 238
GRF 195901 Coal Research & Development General Obligation Debt Service $ 7,861,100 $ 5,577,700 239
GRF 195905 Third Frontier Research & Development General Obligation Debt Service $ 29,323,300 $ 63,640,300 240
GRF 195912 Job Ready Site Development General Obligation Debt Service $ 9,859,200 $ 15,680,500 241
TOTAL GRF General Revenue Fund $ 103,126,423 $ 116,389,705 242

General Services Fund Group243

1350 195684 Supportive Services $ 11,700,000 $ 11,700,000 244
4W10 195646 Minority Business Enterprise Loan $ 2,500,000 $ 2,500,000 245
5AD0 195633 Legacy Projects $ 15,000,000 $ 15,000,000 246
5AD0 195677 Economic Development Contingency $ 10,000,000 $ 0 247
5W50 195690 Travel and Tourism Cooperative Projects $ 50,000 $ 50,000 248
6850 195636 Direct Cost Recovery Expenditures $ 750,000 $ 750,000 249
TOTAL GSF General Services Fund 250
Group $ 40,000,000 $ 30,000,000 251

Federal Special Revenue Fund Group252

3080 195602 Appalachian Regional Commission $ 475,000 $ 475,000 253
3080 195603 Housing and Urban Development $ 6,000,000 $ 6,000,000 254
3080 195605 Federal Projects $ 85,028,606 $ 85,470,106 255
3080 195609 Small Business Administration $ 6,438,143 $ 5,511,381 256
3080 195618 Energy Federal Grants $ 38,000,000 $ 3,400,000 257
3350 195610 Energy Conservation and Emerging Technology $ 1,100,000 $ 1,100,000 258
3AE0 195643 Workforce Development Initiatives $ 16,300,000 $ 16,300,000 259
3DB0 195642 Federal Stimulus - Energy Efficiency & Conservation Block Grants $ 3,000,000 $ 42,485 260
3EG0 195608 Federal Energy Training $ 5,000,000 $ 1,344,056 261
3K80 195613 Community Development Block Grant $ 76,795,818 $ 65,210,000 262
3K90 195611 Home Energy Assistance Block Grant $ 115,743,608 $ 115,743,608 263
3K90 195614 HEAP Weatherization $ 22,000,000 $ 22,000,000 264
3L00 195612 Community Services Block Grant $ 27,240,217 $ 27,240,217 265
3V10 195601 HOME Program $ 40,000,000 $ 40,000,000 266
TOTAL FED Federal Special Revenue 267
Fund Group $ 443,121,392 $ 389,836,853 268

State Special Revenue Fund Group269

4500 195624 Minority Business Bonding Program Administration $ 160,110 $ 159,069 270
4510 195625 Economic Development Financing Operating $ 3,000,000 $ 3,000,000 271
4F20 195639 State Special Projects $ 180,437 $ 180,436 272
4F20 195676 Marketing Initiatives $ 5,000,000 $ 0 273
4F20 195699 Utility Provided Funds $ 500,000 $ 500,000 274
4S00 195630 Tax Incentive Programs $ 650,800 $ 650,800 275
5CG0 195679 Alterative Alternative Fuel Transportation $ 750,000 $ 750,000 276
5HJ0 195604 Motion Picture Tax Credit Program $ 50,000 $ 50,000 277
5HR0 195526 Ohio Workforce Job Training $ 20,000,000 $ 30,000,000 278
5HR0 195622 Defense Development Assistance $ 5,000,000 $ 5,000,000 279
5JR0 195656 New Market Tax Credit Program $ 50,000 $ 50,000 280
5KD0 195621 Brownfield Stormwater Loan $ 50,000 $ 50,000 281
5KN0 195640 Local Government Innovation $ 0 175,000 $ 45,000,000 44,825,000 282
5M40 195659 Low Income Energy Assistance $ 245,000,000 $ 245,000,000 283
5M50 195660 Advanced Energy Programs $ 8,000,000 $ 0 284
5W60 195691 International Trade Cooperative Projects $ 160,000 $ 160,000 285
6170 195654 Volume Cap Administration $ 94,397 $ 92,768 286
6460 195638 Low- and Moderate- Income Housing Trust Fund $ 53,000,000 $ 53,000,000 287
TOTAL SSR State Special Revenue 288
Fund Group $ 341,645,744 341,820,744 $ 383,643,073 383,468,073 289

Facilities Establishment Fund Group290

5S90 195628 Capital Access Loan Program $ 1,500,000 $ 1,500,000 291
7009 195664 Innovation Ohio $ 15,000,000 $ 15,000,000 292
7010 195665 Research and Development $ 22,000,000 $ 22,000,000 293
7037 195615 Facilities Establishment $ 50,000,000 $ 50,000,000 294
TOTAL 037 Facilities 295
Establishment Fund Group $ 88,500,000 $ 88,500,000 296

Clean Ohio Revitalization Fund297

7003 195663 Clean Ohio Operating $ 950,000 $ 950,000 298
TOTAL 7003 Clean Ohio Revitalization Fund $ 950,000 $ 950,000 299

Third Frontier Research & Development Fund Group300

7011 195686 Third Frontier Operating $ 1,149,750 $ 1,149,750 301
7011 195687 Third Frontier Research & Development Projects $ 183,850,250 $ 133,850,250 302
7014 195620 Third Frontier Operating - Tax $ 1,700,000 $ 1,700,000 303
7014 195692 Research & Development Taxable Bond Projects $ 38,300,000 $ 38,300,000 304
TOTAL 011 Third Frontier Research & Development Fund Group $ 225,000,000 $ 175,000,000 305

Job Ready Site Development Fund Group306

7012 195688 Job Ready Site Operating $ 800,000 $ 800,000 307
TOTAL 012 Job Ready Site Development Fund Group $ 800,000 $ 800,000 308

Tobacco Master Settlement Agreement Fund Group309

M087 195435 Biomedical Research and Technology Transfer $ 1,999,224 $ 1,999,224 310
TOTAL TSF Tobacco Master Settlement Agreement Fund Group $ 1,999,224 $ 1,999,224 311
TOTAL ALL BUDGET FUND GROUPS $ 1,245,142,783 1,245,317,783 $ 1,187,118,855 1,186,943,855 312


       Sec. 261.20.93. LOCAL GOVERNMENT INNOVATION FUND314

       The foregoing appropriation item 195640, Local Government 315
Innovation, shall be used for the purposes of making loans and 316
grants to political subdivisions under the Local Government 317
Innovation Program in accordance with sections 189.01 to 189.10 of 318
the Revised Code. Of the foregoing appropriation item 195640, 319
Local Government Innovation, up to $100,000175,000 in fiscal year 320
2012 and $175,000 in fiscal year 2013 shall be used for 321
administrative costs incurred by the Department of Development.322

       On the effective date of this amendment, or as soon as 323
possible thereafter, the Director of Budget and Management shall 324
transfer $175,000 in cash from the General Revenue Fund to the 325
Local Government Innovation Fund (Fund 5KN0). On July 1, 2012, or 326
as soon as possible thereafter, the Director of Budget and 327
Management shall transfer $44,825,000 in cash from the General 328
Revenue Fund to the Local Government Innovation Fund (Fund 5KN0). 329

       Section 5.  That existing Sections 261.10 and 261.20.93 of 330
Am. Sub. H.B. 153 of the 129th General Assembly are hereby 331
repealed.332