As Introduced

129th General Assembly
Regular Session
2011-2012
S. B. No. 257


Senators Daniels, Kearney 

Cosponsors: Senators Obhof, Seitz, Balderson, Burke, Tavares, Beagle 



A BILL
To amend sections 189.01, 189.03, 189.05, 189.06, 1
189.07, 189.08, and 189.10 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, 189.05, 189.06, 7
189.07, 189.08, and 189.10 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
operatedany body corporate and politic that is responsible for 48
governmental activities only in a geographic area smaller than the 49
state. 50

       Sec. 189.03.  (A) There is hereby created the local 51
government innovation council to establish criteria for and make 52
loans and awards to political subdivisions for local government 53
innovation projects and take such other actions, in consultation 54
with the department of development, as necessary to implement the 55
local government innovation program established in section 189.02 56
of the Revised Code.57

       (B) The council shall consist of the following members:58

       (1) The director of development, or the director's designee;59

       (2) The director of budget and management, or the director's 60
designee;61

       (3) The auditor of state, or the auditor's designee;62

       (4) Two members of the senate, one member appointed by the 63
president of the senate and one member appointed by the minority 64
leader of the senate;65

       (5) Two members of the house of representatives, one member 66
appointed by the speaker of the house of representatives and one 67
member appointed by the minority leader of the house of 68
representatives;69

       (6) One member recommended by the Ohio municipal league, 70
appointed by the governor;71

       (7) One member recommended by the county commissioners 72
association of Ohio, appointed by the governor;73

       (8) One member recommended by the Ohio township association, 74
appointed by the governor;75

       (9) One member recommended by the Ohio chamber of commerce, 76
appointed by the governor;77

       (10) One member recommended by the Ohio school boards 78
association, appointed by the governor;79

       (11) One member, appointed by the governor, who is 80
recommended by an Ohio-based advocacy group selected by the 81
governor;82

       (12) One member, appointed by the governor, who is 83
recommended by an Ohio-based foundation selected by the governor;84

       (13) One member with expertise in local government issues,85
appointed by the governor, who is recommended by the chancellor of 86
the board of regents.87

       (C) Initial appointments to the council shall be made not 88
later than September 30, 2011. Of the governor's initial 89
appointees, three shall serve an initial term of one year, two 90
shall serve an initial term of two years, and two shall serve an 91
initial term of three years. Thereafter, each member appointed by 92
the governor shall serve a four-year term, or a term ending when 93
the council ceases to exist, whichever occurs first. The remaining 94
members of the council shall be appointed for four-year terms, or 95
terms ending when the council ceases to exist, whichever occurs 96
first. Members may be reappointed to the council.97

       Vacancies on the council shall be filled in the same manner 98
as the original appointments. 99

       (D) At its first meeting, the council shall select a 100
chairperson from among its members. After the first meeting, the 101
council shall meet at the call of the chairperson or upon the 102
request of a majority of the council's members. A majority of the 103
council constitutes a quorum. 104

       (E) The department of development shall provide 105
administrative assistance to the council.106

       (F) Council members shall receive no compensation but shall 107
be reimbursed for actual and necessary expenses incurred in the 108
performance of council duties.109

       Sec. 189.05.  Funds for awards made by the local government 110
innovation council shall be made from the local government 111
innovation fund, which is hereby created in the state treasury. 112
The fund shall consist of moneys appropriated to it, repayments of 113
principal and interest on loans made from the fund, and any grants 114
or donations received from nonpublic entities. Interest earned on 115
the money in the fund shall be credited to the fund. 116

       Sec. 189.06.  (A) All political subdivisions of the state are 117
eligible to apply for awards under the local government innovation 118
program. TheApplications shall be submitted to the department of 119
development on a form specified by the director of development. 120
The department shall provide the application to the local 121
government innovation council for evaluation and selection.122

       The local government innovation council shall award loans and 123
grants under the program in accordance with a competitive process 124
to be developed by the council. 125

       (B) Not later than December 31, 2011, the council shall 126
establish criteria for evaluating proposals and making awards to 127
political subdivisions. The criteria shall be developed in 128
consultation with nonpublic entities involved in local government 129
issues, state institutions of higher education, and the department 130
of development, as determined by the council. The criteria shall 131
include a requirement that at least one of the political 132
subdivisions that is a party to the proposal provide matching 133
funds. The matching funds may be provided by a nonpublic entity. 134
The criteria for evaluating proposals may include the following 135
provisions:136

       (1) The expected return on investment, based on the ratio of 137
expected savings;138

       (2) The number of participating entities in the proposal;139

       (3) The probability of the proposal's success;140

       (4) The percentage of local matching funds available;141

       (5) The ability to replicate the proposal in other political 142
subdivisions;143

       (6) Whether the proposal is part of a larger consolidation 144
effort by the applicant or applicants;145

       (7) Whether the proposal is to implement performance audit 146
or other audit recommendations under section 117.462 of the 147
Revised Code;148

       (8) Whether the applicant has successfully completed an 149
innovation project in the past.150

       Sec. 189.07. A political subdivision seeking an award under 151
the local government innovation program shall submit a proposal to 152
the subdivision's district public works integrating committee. The 153
committee shall submit the proposal to the department of 154
development, with advisory comments. The department shall provide 155
the proposal to the local government innovation council for 156
evaluation and selectionThe local government innovation council 157
shall develop and implement a means of ensuring local support for 158
each grant or loan application submitted to the department of 159
development under section 189.06 of the Revised Code.160

       Sec. 189.08.  (A) Starting not later than March 1, 2012, the 161
local government innovation council shall begin evaluating 162
proposals received from the department of development for awards 163
to political subdivisions. Not later than July 1, 2012, the 164
council shall make its first round of awards to the political 165
subdivisions.166

       (B) After making the first round of awards, the council shall 167
evaluate proposals and make awards on a quarterly basis, or on 168
another schedule determined by the council, with the council 169
determining the funding levels for each round of awards. 170

       (C) When making awards from the local government innovation 171
fund created in section 189.05 of the Revised Code, the funds 172
available for each round of awards shall be divided into the 173
following tiers:174

       (1) At least thirty per cent to political subdivisions that 175
are not counties and have a population of less than 50,00020,000176
residents as determined in the decennial census conducted in 2010 177
or counties with a population of less than 130,000235,000178
residents as determined in the decennial census conducted in 2010;179

       (2) At least thirty per cent to political subdivisions that 180
are not counties and have a population of 50,00020,000 residents 181
or more as determined in the decennial census conducted in 2010 or 182
counties with a population of 130,000235,000 residents or more as 183
determined in the decennial census conducted in 2010.184

       If a proposal includes participants from both division185
divisions (C)(1) and (2) of this section, the award may be drawn 186
from either or both tiers in the local government innovation fund.187

       Sec. 189.10.  The local government innovation council shall 188
cease to exist on December 31, 2015June 30, 2018.189

       Section 2.  That existing sections 189.01, 189.03, 189.05, 190
189.06, 189.07, 189.08, and 189.10 of the Revised Code are hereby 191
repealed.192

       Section 3.  That Sections 261.10 and 261.20.93 of Am. Sub. 193
H.B. 153 of the 129th General Assembly be amended to read as 194
follows:195

       Sec. 261.10. DEV DEPARTMENT OF DEVELOPMENT196

General Revenue Fund197

GRF 195401 Thomas Edison Program $ 14,820,354 $ 0 198
GRF 195402 Coal Development Office $ 260,983 $ 261,205 199
GRF 195404 Small Business Development $ 1,565,770 $ 0 200
GRF 195405 Minority Business Enterprise Division $ 1,118,528 $ 0 201
GRF 195407 Travel and Tourism $ 5,000,000 $ 0 202
GRF 195412 Rapid Outreach Grants $ 9,000,000 $ 0 203
GRF 195415 Strategic Business Investment Division and Regional Offices $ 4,500,000 $ 0 204
GRF 195416 Governor's Office of Appalachia $ 3,700,000 $ 3,700,000 205
GRF 195422 Technology Action $ 547,341 $ 0 206
GRF 195426 Clean Ohio Implementation $ 468,365 $ 0 207
GRF 195432 Global Markets $ 3,500,000 $ 0 208
GRF 195434 Industrial Training Grants $ 10,000,000 $ 0 209
GRF 195497 CDBG Operating Match $ 1,015,000 $ 0 210
GRF 195501 Appalachian Local Development Districts $ 391,482 $ 391,482 211
GRF 195502 Appalachian Regional Commission Dues $ 195,000 $ 195,000 212
GRF 195528 Economic Development Projects $ 0 $ 26,943,518 213
GRF 195901 Coal Research & Development General Obligation Debt Service $ 7,861,100 $ 5,577,700 214
GRF 195905 Third Frontier Research & Development General Obligation Debt Service $ 29,323,300 $ 63,640,300 215
GRF 195912 Job Ready Site Development General Obligation Debt Service $ 9,859,200 $ 15,680,500 216
TOTAL GRF General Revenue Fund $ 103,126,423 $ 116,389,705 217

General Services Fund Group218

1350 195684 Supportive Services $ 11,700,000 $ 11,700,000 219
4W10 195646 Minority Business Enterprise Loan $ 2,500,000 $ 2,500,000 220
5AD0 195633 Legacy Projects $ 15,000,000 $ 15,000,000 221
5AD0 195677 Economic Development Contingency $ 10,000,000 $ 0 222
5W50 195690 Travel and Tourism Cooperative Projects $ 50,000 $ 50,000 223
6850 195636 Direct Cost Recovery Expenditures $ 750,000 $ 750,000 224
TOTAL GSF General Services Fund 225
Group $ 40,000,000 $ 30,000,000 226

Federal Special Revenue Fund Group227

3080 195602 Appalachian Regional Commission $ 475,000 $ 475,000 228
3080 195603 Housing and Urban Development $ 6,000,000 $ 6,000,000 229
3080 195605 Federal Projects $ 85,028,606 $ 85,470,106 230
3080 195609 Small Business Administration $ 6,438,143 $ 5,511,381 231
3080 195618 Energy Federal Grants $ 38,000,000 $ 3,400,000 232
3350 195610 Energy Conservation and Emerging Technology $ 1,100,000 $ 1,100,000 233
3AE0 195643 Workforce Development Initiatives $ 16,300,000 $ 16,300,000 234
3DB0 195642 Federal Stimulus - Energy Efficiency & Conservation Block Grants $ 3,000,000 $ 42,485 235
3EG0 195608 Federal Energy Training $ 5,000,000 $ 1,344,056 236
3K80 195613 Community Development Block Grant $ 76,795,818 $ 65,210,000 237
3K90 195611 Home Energy Assistance Block Grant $ 115,743,608 $ 115,743,608 238
3K90 195614 HEAP Weatherization $ 22,000,000 $ 22,000,000 239
3L00 195612 Community Services Block Grant $ 27,240,217 $ 27,240,217 240
3V10 195601 HOME Program $ 40,000,000 $ 40,000,000 241
TOTAL FED Federal Special Revenue 242
Fund Group $ 443,121,392 $ 389,836,853 243

State Special Revenue Fund Group244

4500 195624 Minority Business Bonding Program Administration $ 160,110 $ 159,069 245
4510 195625 Economic Development Financing Operating $ 3,000,000 $ 3,000,000 246
4F20 195639 State Special Projects $ 180,437 $ 180,436 247
4F20 195676 Marketing Initiatives $ 5,000,000 $ 0 248
4F20 195699 Utility Provided Funds $ 500,000 $ 500,000 249
4S00 195630 Tax Incentive Programs $ 650,800 $ 650,800 250
5CG0 195679 Alterative Alternative Fuel Transportation $ 750,000 $ 750,000 251
5HJ0 195604 Motion Picture Tax Credit Program $ 50,000 $ 50,000 252
5HR0 195526 Ohio Workforce Job Training $ 20,000,000 $ 30,000,000 253
5HR0 195622 Defense Development Assistance $ 5,000,000 $ 5,000,000 254
5JR0 195656 New Market Tax Credit Program $ 50,000 $ 50,000 255
5KD0 195621 Brownfield Stormwater Loan $ 50,000 $ 50,000 256
5KN0 195640 Local Government Innovation $ 0 175,000 $ 45,000,000 44,825,000 257
5M40 195659 Low Income Energy Assistance $ 245,000,000 $ 245,000,000 258
5M50 195660 Advanced Energy Programs $ 8,000,000 $ 0 259
5W60 195691 International Trade Cooperative Projects $ 160,000 $ 160,000 260
6170 195654 Volume Cap Administration $ 94,397 $ 92,768 261
6460 195638 Low- and Moderate- Income Housing Trust Fund $ 53,000,000 $ 53,000,000 262
TOTAL SSR State Special Revenue 263
Fund Group $ 341,645,744 341,820,744 $ 383,643,073 383,468,073 264

Facilities Establishment Fund Group265

5S90 195628 Capital Access Loan Program $ 1,500,000 $ 1,500,000 266
7009 195664 Innovation Ohio $ 15,000,000 $ 15,000,000 267
7010 195665 Research and Development $ 22,000,000 $ 22,000,000 268
7037 195615 Facilities Establishment $ 50,000,000 $ 50,000,000 269
TOTAL 037 Facilities 270
Establishment Fund Group $ 88,500,000 $ 88,500,000 271

Clean Ohio Revitalization Fund272

7003 195663 Clean Ohio Operating $ 950,000 $ 950,000 273
TOTAL 7003 Clean Ohio Revitalization Fund $ 950,000 $ 950,000 274

Third Frontier Research & Development Fund Group275

7011 195686 Third Frontier Operating $ 1,149,750 $ 1,149,750 276
7011 195687 Third Frontier Research & Development Projects $ 183,850,250 $ 133,850,250 277
7014 195620 Third Frontier Operating - Tax $ 1,700,000 $ 1,700,000 278
7014 195692 Research & Development Taxable Bond Projects $ 38,300,000 $ 38,300,000 279
TOTAL 011 Third Frontier Research & Development Fund Group $ 225,000,000 $ 175,000,000 280

Job Ready Site Development Fund Group281

7012 195688 Job Ready Site Operating $ 800,000 $ 800,000 282
TOTAL 012 Job Ready Site Development Fund Group $ 800,000 $ 800,000 283

Tobacco Master Settlement Agreement Fund Group284

M087 195435 Biomedical Research and Technology Transfer $ 1,999,224 $ 1,999,224 285
TOTAL TSF Tobacco Master Settlement Agreement Fund Group $ 1,999,224 $ 1,999,224 286
TOTAL ALL BUDGET FUND GROUPS $ 1,245,142,783 1,245,317,783 $ 1,187,118,855 1,186,943,855 287


       Sec. 261.20.93. LOCAL GOVERNMENT INNOVATION FUND289

       The foregoing appropriation item 195640, Local Government 290
Innovation, shall be used for the purposes of making loans and 291
grants to political subdivisions under the Local Government 292
Innovation Program in accordance with sections 189.01 to 189.10 of 293
the Revised Code. Of the foregoing appropriation item 195640, 294
Local Government Innovation, up to $100,000175,000 in fiscal year 295
2012 and $175,000 in fiscal year 2013 shall be used for 296
administrative costs incurred by the Department of Development.297

       On the effective date of this amendment, or as soon as 298
possible thereafter, the Director of Budget and Management shall 299
transfer $175,000 in cash from the General Revenue Fund to the 300
Local Government Innovation Fund (Fund 5KN0). On July 1, 2012, or 301
as soon as possible thereafter, the Director of Budget and 302
Management shall transfer $44,825,000 in cash from the General 303
Revenue Fund to the Local Government Innovation Fund (Fund 5KN0). 304

       Section 4.  That existing Sections 261.10 and 261.20.93 of 305
Am. Sub. H.B. 153 of the 129th General Assembly are hereby 306
repealed.307