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H. B. No. 1As IntroducedAs Introduced
125th General Assembly | Regular Session | 2003-2004 |
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REPRESENTATIVE T. Patton
A BILL
To amend sections 122.151, 122.152, 122.154, 166.01, 166.02, 166.08, 166.11, 166.13, 166.14, 166.16, 5733.98, and 5747.98 and to enact sections 166.17 to 166.21, 184.04, 5733.352, and 5747.331 to increase the maximum amount of technology investments eligible for a tax credit, to require signatures on technology investment tax credit certificates, to require the Director of Development to develop the form of the tax credit certificate, to require the Director to report information regarding tax credit certificates to the Tax Commissioner, to increase Edison Center application fees, to create the Ohio Research Commercialization Grant Program, to increase the maximum amount of obligations that may be issued to fund economic development programs, to create the Research and Development Loan Fund, to authorize the Director to make loans from the Research and Development Loan Fund, and to grant tax credits for qualified research and development loan payments.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.151, 122.152, 122.154, 166.01, 166.02, 166.08, 166.11, 166.13, 166.14, 166.16, 5733.98, and 5747.98 be amended and sections 166.17, 166.18, 166.19, 166.20, 166.21, 184.04, 5733.352, and 5747.331 of the Revised Code be enacted to read as follows:
Sec. 122.151. (A) An investor who proposes to make an investment of
money in an
Ohio entity may apply to an Edison center
for a tax credit under this section. The Edison center shall
prescribe the form of the application and any information that the investor
must submit with the application. The
investor shall include with the application a fee of two hundred
dollars. The center, within three weeks after receiving the
application, shall review it, determine whether the
investor should be recommended
for the tax credit, and send written notice of its initial
determination to the industrial technology and enterprise advisory
council and
to the investor. If the center determines the investor should not be
recommended for the tax credit, it
shall include in the notice the reasons for the
determination. Subject to divisions
(C) and
(D) of this section, an
investor is eligible for a tax credit if all of the following
requirements are met: (1) The investor's investment of money is in an Ohio entity engaged in
a
qualified trade or business. (2) The Ohio entity had
less than one million dollars of gross revenue during
its most recently completed fiscal year or had a net book value
of less than one million dollars at the end of that
fiscal year. (3) The investment takes the form of the purchase of
common or preferred stock, a membership interest, a partnership
interest, or any other ownership interest. (4) The amount of the investment for which the credit is being claimed
does not exceed one
two hundred fifty thousand dollars. (5) The money invested is entirely at risk of loss, where
repayment depends upon the success of the business operations of
the Ohio entity. (6) No repayment of
principal invested will be
made for
at least three years from the date the investment is made. (7) The annual combined amount of any dividend and interest payments
to be made to
the investor will not exceed ten per cent of the amount of the
investment
for at least three years from the date the investment is made. (8) The investor is not an
employee with proprietary decision-making authority of the
Ohio entity in which the
investment of money is proposed, or related to such an
individual. The Ohio entity is
not an individual related to
the investor. For purposes of this
division, the industrial technology and enterprise advisory
council shall define "an employee with proprietary
decision-making authority." (9) The investor is not an insider. For the purposes of determining the net book value of an
Ohio entity under division
(A)(1) or (2) of this section, if the entity
is a member of an affiliated group, the combined net book values of all of the
members of that affiliated group shall be used. Nothing in division
(A)(6) or (7) of this section
limits or disallows the distribution to an investor in a
pass-through entity of a portion of the entity's profits
equal to the investor's federal, state, and local income tax
obligations attributable to the investor's allocable share of
the entity's profits. Nothing in division (A)(6) or (7) of this
section limits or disallows the sale by an investor of part or all of the
investor's interests in an Ohio
entity by way of a public offering of shares in the
Ohio entity. (B) A group of two but not
more than twenty investors, each of whom proposes to make an investment
of money in
the same Ohio entity, may submit an
application for tax credits under division
(A) of this section. The group
shall include with the application a fee of eight hundred dollars. The
application shall identify
each investor in the group and the amount of money each investor
proposes
to invest in the Ohio entity,
and shall name a contact person for the group. The Edison center,
within three weeks after receiving the application,
shall review it, determine whether each investor of the
group should be recommended
for a tax credit under the conditions set forth in
division (A) of this section,
and send written notice of its
determination to the industrial technology and enterprise advisory
council and
to the contact person. The center shall not recommend that a group of
investors receive a tax credit unless each investor is eligible under those
conditions. The center may disqualify from a group
any investor who is not eligible under the conditions and recommend that the
remaining group of investors receive the tax credit. If the center
determines the group
should not be recommended for the tax credit, it shall include in the notice
the reasons for the determination. (C) The industrial technology and enterprise advisory
council shall
establish from among its members a three-person
committee. Within four
weeks after the council receives a notice of
recommendation from an
Edison center, the committee shall review the
recommendation and issue a final determination of whether the investor or
group
is eligible for a tax credit under the conditions set forth in division
(A) of this section. The committee may require the
investor or
group to submit additional information to support the application. The vote
of
at least two members of the committee is necessary
for the
issuance of a
final determination or any other action of the
committee. Upon making the
final determination, the committee shall send
written notice of approval or
disapproval of the tax credit to the investor or group contact
person,
the
director of development, and
the Edison center. If the committee disapproves
the tax credit,
it shall include in the notice the reasons for the disapproval. (D)(1) The industrial technology and enterprise advisory
council
committee shall not approve more than one million
five hundred thousand dollars of investments in any one
Ohio entity. However, if a
proposed investment of money in an Ohio
entity has been approved but the investor does not actually make
the investment, the committee may reassign the
amount of that
investment to another investor, as long as the total amount
invested in the entity under this section does not exceed one
million five hundred thousand dollars. If the one-million-five-hundred-thousand-dollar limit for an
Ohio entity has not yet been
reached and an application proposes an investment of money that would
exceed the limit for that entity, the committee
shall
send written notice to the investor, or for a group, the
contact
person, that the investment cannot be approved as requested.
Upon receipt of the notice, the investor or group may amend the
application to propose an investment of money that does not exceed the
limit. (2) Not more than ten twenty million dollars of tax credits
shall be issued under sections 122.15 to 122.154 of the
Revised
Code. (E) If an investor makes an approved investment of money in an
Ohio entity of less than one
two hundred fifty thousand dollars, the investor may apply for
approval of another investment of money in that entity, as long as the
total amount invested in that entity by the investor under this section does
not exceed one two hundred fifty thousand dollars. An investor who
receives approval of an investment of money as part of a group may
subsequently apply on an individual basis for approval of an
additional investment of money in the Ohio entity. (F) The industrial technology and enterprise advisory council
committee shall approve or disapprove tax credit
applications
under this section in the order in which they are received by the
council. (G) The director of development may disapprove any application recommended by
an
Edison center and approved by the industrial technology and enterprise advisory
council committee, or may disapprove a
credit for which a tax credit certificate has been issued under section
122.152
of the Revised
Code, if the director determines that the
entity in which the applicant proposes to invest or has invested is not an
Ohio entity eligible to receive investments
that qualify for the credit. If the director disapproves an application, the
director shall certify the action to the investor, the
Edison center that recommended the
application, the industrial technology and enterprise advisory
council, and the
tax commissioner, together with a written explanation of the reasons for the
disapproval. If the director disapproves a tax credit after a tax credit
certificate is issued, the investor shall not claim the credit for the taxable
year that includes the day the director disapproves the credit, or for any
subsequent taxable year. The director of development, in accordance with section 111.15 of the Revised Code and
with the advice of the industrial technology and enterprise advisory council,
may adopt, amend, and rescind rules necessary to implement sections 122.15
to 122.154 of the Revised Code. (H) An Edison center shall use application
fees received under this section only for the costs of administering sections
122.15 to 122.154 of the Revised Code.
Sec. 122.152. (A) After receiving
notice of approval for an
investment of money from the industrial technology and enterprise
advisory council committee under section 122.151 of the
Revised Code, an investor, within a period of time
determined by the council committee, may make the investment and apply
to the council committee for a tax credit certificate. If
the council committee is satisfied the investor has made the
investment in the proper form,
it shall issue to the investor a tax credit certificate
signed by the chairperson of the council committee and the director of development indicating that the investor is allowed a tax credit in an
amount equal to twenty-five per cent of the investment. An investor who receives approval of a proposed investment of money
through a group application, after making the investment,
shall
apply for a tax credit certificate on an individual basis. (B) An investor who is
issued a tax credit certificate under this section may claim a
nonrefundable credit equal to the amount indicated on the
certificate against any state tax liability. The investor shall
claim the credit for the taxable year in which the certificate
is issued. (1) If the credit to which a taxpayer
otherwise would be entitled under this section for any taxable
year is greater than the tax otherwise due under division
(D) of section 5707.03 or section 5727.24 or 5727.38
of the Revised Code, the excess shall
be
allowed as a credit in each of the ensuing fifteen taxable years,
but the amount of any excess credit
allowed in an ensuing taxable year shall be deducted from the
balance carried forward to the next taxable year. (2) If the credit to which a taxpayer otherwise would
be entitled under this section for any taxable year is greater
than the tax otherwise due under section 5747.02 or
Chapter 5733. of the Revised Code, after
allowing for any other credits that precede the credit allowed
under this section in the order required under section 5733.98 or
5747.98 of the Revised Code, the excess shall be
allowed as a credit in each of the ensuing fifteen taxable years,
but the amount of any excess credit
allowed in an ensuing taxable year shall be deducted from the
balance carried forward to the next taxable year. (C) Any portion of a credit allowed under this
section that is utilized by an investor to reduce the investor's
state tax liability shall not be utilized by any other person. (D) To claim
a tax credit allowed under this section, an investor shall
attach to the appropriate return a copy of the certificate issued
to the investor under this section. (E) Nothing in this section shall limit or
disallow pass-through treatment of a pass-through entity's
income,
deductions, or credits, or other amounts necessary to compute a
state tax liability. (F) A tax credit
certificate issued to an investor under this section may not be
transferred by that investor to any other person. (G)(1) The industrial technology and enterprise advisory
council director of development shall develop the form of
the tax credit certificate and the industrial technology and enterprise advisory council committee shall use that form when issuing a
tax credit certificate under this section. (2) The
industrial technology and enterprise advisory council
director of development shall report to the tax commissioner any information
requested by the commissioner concerning tax credit certificates
issued under this section. (H) An investment made by an investor or group of investors who
enter into a
contractual agreement with an
Ohio entity to invest money in
the Ohio entity is an acceptable
investment if all of the following conditions are met: (1) The investment is made pursuant to a subscription
agreement providing that the investor or group of investors is
entitled to receive a refund of funds if the investment is not
approved by the industrial technology and enterprise advisory
council committee. (2) The investment is placed in escrow until the
investment is approved by the industrial technology and
enterprise advisory council committee. (3) The investor or group of investors shows proof of the
withdrawal of the funds by the Ohio entity
after the investment is approved by the industrial technology
and enterprise advisory council committee.
Sec. 122.154. (A) A business may apply to
an Edison center for a determination as to whether the
business is an Ohio entity
eligible to receive investments of money under section 122.151 of the
Revised
Code that qualify the investor
for a tax credit under section 122.152 of the
Revised
Code. The business shall
include with the application a fee of one two hundred fifty dollars and a business
plan. The Edison center shall prescribe any other
information the business must submit with the application and
the form of the application. The center, within three weeks
after receiving the application, shall review it, determine
whether the business is an Ohio
entity eligible to receive investments of money that qualify for the
tax credit, and send written notice to the industrial technology and
enterprise advisory council and the business of its initial
determination. If the center determines
that the business is not an Ohio entity
eligible to receive investments of money that qualify for the tax credit, it
shall include in the notice the reasons for the determination. Within four weeks after the council receives a notice of recommendation
from an Edison center, the industrial technology and enterprise
advisory council committee established under section 122.152 of the Revised
Code shall
review the recommendation and issue a final determination of whether the
business is an Ohio entity eligible to receive investments of money
under section 122.151 of the Revised Code that qualify an investor for a tax credit under
section 122.152 of the Revised Code. The council committee may require the business to submit
additional information to support the application. The vote of at least two
members of the council committee is necessary for the issuance of a final
determination. On making the final determination, the council committee shall send
written notice of approval or disapproval to the business, the director of
development, and the Edison center. If the council committee determines
that the business is not an Ohio entity eligible to receive
investments of money that qualify for the tax credit, it shall include in the
notice the reasons for the determination. (B) The department of development
shall maintain a list of the businesses that have been
determined to be Ohio entities eligible to
receive investments of money that qualify for the tax credit. The
department shall furnish copies of the list to the public
upon request. (C) The department of development may prescribe a
schedule under which
businesses periodically must submit information to enable the
center to maintain the accuracy of the list. At the times
required in the schedule, each business on the list shall submit
any information the center requires to determine if the
business continues to be an Ohio entity eligible to receive
investments of money that qualify for the tax credit. (D) An Edison
center shall use fees received under this section only for the costs
of administering sections 122.15 to 122.154 of the Revised Code. (E) The Edison centers and the industrial
technology and enterprise advisory council and its committees do not assume
any responsibility for the accuracy or truthfulness of information furnished
by an Ohio entity or its agents. An investor in an Ohio entity is solely
responsible for due diligence in verifying information submitted by an
Ohio entity. An Edison center is not liable for any
action resulting from its provision of such information to investors in
accordance
with sections 122.15 to 122.154 of the Revised Code.
Sec. 166.01. As used in this chapter: (A) "Allowable costs" means all or part of the costs of
project facilities
or, eligible innovation projects, or eligible research and development projects, including
costs of acquiring, constructing,
reconstructing, rehabilitating,
renovating, enlarging, improving,
equipping, or furnishing project
facilities
or, eligible innovation projects, or eligible research and development projects, site clearance and
preparation, supplementing and relocating public capital
improvements or utility facilities, designs, plans,
specifications, surveys, studies, and estimates of costs,
expenses
necessary or incident to determining the feasibility or
practicability of assisting an eligible project
or, an eligible
innovation project, or an eligible research and development project, or providing
project facilities
or facilities
related to an eligible innovation project or an eligible research and development project, architectural,
engineering, and legal
services fees and expenses, the costs of
conducting any other
activities as part of a voluntary action, and
such other expenses
as may be necessary or incidental to the
establishment or
development of an eligible project
or, an eligible
innovation project, or an eligible research and development project, and reimbursement of moneys
advanced or
applied by any governmental agency or other person
for allowable
costs. (B)
"Allowable innovation costs" includes allowable costs of
eligible innovation projects and, in addition, includes the costs
of research and
development of eligible innovation projects;
obtaining or creating
any requisite software or computer hardware
related to an eligible
innovation project or the products or
services associated
therewith; testing (including, without
limitation, quality control activities necessary
for initial
production), perfecting, and marketing of such products
and
services; creating and protecting intellectual property
related to
an eligible innovation project or any products or
services related
thereto, including costs of securing appropriate
patent,
trademark, trade secret, trade dress, copyright, or other
form of
intellectual property protection for an eligible
innovation
project or related products and services; all to the
extent that
such expenditures could be capitalized under
then-applicable
generally accepted accounting principles; and the
reimbursement of
moneys advanced or applied by any governmental
agency or other
person for allowable innovation costs. (C) "Eligible innovation project" includes an eligible
project, including any project facilities associated with an
eligible innovation project
and, in addition, includes all
tangible and intangible property related to a new product
or
process based on new technology or the creative application of
existing technology, including research and development, product
or process testing, quality control, market research, and related
activities, that is to be acquired, established, expanded,
remodeled, rehabilitated, or modernized for industry, commerce,
distribution, or research, or any combination thereof, the
operation of which, alone or in conjunction with other eligible
projects, eligible innovation projects, or innovation property,
will create new jobs or preserve existing jobs and employment
opportunities and improve the economic welfare of the people of
the state. (D) "Eligible project" means project facilities to be
acquired, established, expanded, remodeled, rehabilitated, or
modernized for industry, commerce, distribution, or research, or
any combination thereof, the operation of which, alone or in
conjunction with other facilities, will create new jobs or
preserve existing jobs and employment opportunities and improve
the economic welfare of the people of the state. "Eligible
project" includes, without limitation, a voluntary action. For
purposes of this division, "new jobs" does not include existing
jobs transferred from another facility within the state, and
"existing jobs" includes only those existing jobs with work
places
within the municipal corporation or unincorporated area of
the
county in which the eligible project is located. "Eligible project" does not include project facilities to
be
acquired, established, expanded, remodeled, rehabilitated, or
modernized for industry, commerce, distribution, or research, or
any combination of industry, commerce, distribution, or
research,
if the project facilities consist solely of
point-of-final-purchase retail facilities. If the project
facilities consist of both point-of-final-purchase retail
facilities and nonretail facilities, only the portion of the
project facilities consisting of nonretail facilities is an
eligible project. If a warehouse facility is part of a
point-of-final-purchase retail facility and supplies only that
facility, the warehouse facility is not an eligible project.
Catalog distribution facilities are not considered
point-of-final-purchase retail facilities for purposes of this
paragraph, and are eligible projects. (E) "Eligible research and development project" means an eligible project, including project facilities, comprising, within, or related to, a facility or portion of a facility at which research is undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of a new or improved product, process, technique, formula, invention, or a new product or process based on new technology, or the creative application of existing technology. (F) "Financial assistance" means inducements under
division (B) of section 166.02 of the Revised Code, loan
guarantees under section 166.06 of the Revised Code, and direct
loans under section 166.07 of the Revised Code. (F)(G) "Governmental action" means any action by a
governmental agency relating to the establishment, development,
or
operation of an eligible project
or, eligible innovation project, or eligible research and development project,
and project facilities that
the governmental agency acting has
authority to take or provide
for the purpose under law, including,
but not limited to, actions
relating to contracts and agreements,
zoning, building, permits,
acquisition and disposition of
property, public capital
improvements, utility and transportation
service, taxation,
employee recruitment and training, and liaison
and coordination
with and among governmental agencies.
(G)(H) "Governmental agency" means the state and any state
department, division, commission, institution or authority; a
municipal corporation, county, or township, and any agency
thereof, and any other political subdivision or public
corporation
or the United States or any agency thereof; any
agency,
commission, or authority established pursuant to an
interstate
compact or agreement; and any combination of the
above.
(H)(I) "Innovation financial assistance" means inducements
under division (B) of section 166.12 of the Revised Code,
innovation Ohio loan guarantees under section 166.15 of the
Revised Code, and innovation Ohio loans under section 166.16 of
the Revised Code.
(I)(J) "Innovation Ohio loan guarantee reserve requirement"
means, at any time, with respect to innovation loan guarantees
made under section 166.15 of the Revised Code, a balance in the
innovation Ohio loan guarantee fund equal to the greater of twenty
per cent of the then-outstanding principal amount of all
outstanding innovation loan guarantees made pursuant to section
166.15 of the Revised Code or fifty per cent of the principal
amount of the largest outstanding guarantee made pursuant to
section 166.15 of the Revised Code. (J)(K) "Innovation property" includes property and also
includes software,
inventory, licenses, contract rights, goodwill,
intellectual
property, including without limitation, patents,
patent
applications, trademarks and service marks, and trade
secrets, and
other tangible and intangible property, and any
rights and
interests in or
connected to the foregoing.
(K)(L) "Loan guarantee reserve requirement" means, at any
time, with respect to loan guarantees made under section 166.06 of
the Revised Code, a balance in the loan guarantee fund equal to
the greater of twenty per cent of the then-outstanding principal
amount of all outstanding guarantees made pursuant to section
166.06 of the Revised Code or fifty per cent of the principal
amount of the largest outstanding guarantee made pursuant to
section 166.06 of the Revised Code.
(L)(M) "Person" means any individual, firm, partnership,
association, corporation, or governmental agency, and any
combination thereof.
(M)(N) "Project facilities" means buildings, structures, and
other improvements, and equipment and other property, excluding
small tools, supplies, and inventory, and any one, part of, or
combination of the above, comprising all or part of, or serving
or
being incidental to, an eligible project
or, an eligible innovation
project, or an eligible research and development project, including, but not
limited to, public capital
improvements.
(N)(O) "Property" means real and personal property and
interests therein.
(O)(P) "Public capital improvements" means capital
improvements or facilities that any governmental agency has
authority to acquire, pay the costs of, own, maintain, or
operate,
or to contract with other persons to have the same done,
including, but not limited to, highways, roads, streets, water
and
sewer facilities, railroad and other transportation
facilities,
and air and water pollution control and solid waste
disposal
facilities.
(P)(Q) "Research and development financial assistance" means inducements under section 166.17 of the Revised Code, research and development loans under section 166.21 of the Revised Code, and research and development tax credits under sections 5733.352 and 5747.331 of the Revised Code.
(R) "Targeted innovation industry sectors" means industry
sectors involving the production or use of advanced materials,
instruments, controls and electronics, power and propulsion,
biosciences, and information technology, or such other sectors as
may be designated by the director of development. (Q)(S) "Voluntary action" means a voluntary action, as
defined in section 3746.01 of the Revised Code, that is conducted
under the voluntary action program established in Chapter 3746.
of
the Revised Code.
(R)(T) "Project financing obligations" means obligations
issued
pursuant to section 166.08 of the Revised Code other than
obligations for which the bond
proceedings provide that bond
service charges shall be paid from receipts of
the state
representing gross profit on the sale of spirituous liquor as
referred to in division (B)(4) of section 4310.10 of the Revised
Code.
(S)(U) "Regional economic development entity" means an
entity that
is under contract with the director of development to
administer a loan
program under this chapter in a particular area
of this state.
Sec. 166.02. (A) The general assembly finds that many
local
areas throughout the state are experiencing economic
stagnation or
decline, and that the economic development program
provided for
in sections 166.01 to 166.11 of the Revised Code will
constitute
a deserved,
necessary reinvestment by the state in
those areas,
materially
contribute to their economic
revitalization, and
result in
improving the economic welfare of
all the people of the
state.
Accordingly, it is declared to be the
public policy of
the state,
through the operations under
sections 166.01 to 166.11 of the
Revised Code and
other
applicable laws adopted pursuant to
Section 13 of Article
VIII,
Ohio Constitution, and other
authority vested in the general
assembly, to assist in and
facilitate the establishment or
development of eligible projects
or assist and cooperate with any
governmental agency in achieving
such purpose. (B) In furtherance of such public policy and to implement
such purpose, the director of development may: (1) After
consultation with appropriate governmental
agencies, enter into
agreements with persons engaged in industry,
commerce,
distribution, or research and with governmental agencies
to
induce such persons to acquire, construct, reconstruct,
rehabilitate, renovate, enlarge, improve, equip, or furnish, or
otherwise develop, eligible projects and make provision therein
for project facilities and governmental actions, as authorized by
this chapter and other applicable laws, subject to any required
actions by the general assembly or the controlling board and
subject to applicable local government laws and regulations; (2) Provide for the guarantees and loans as provided for
in
sections 166.06 and 166.07 of the Revised Code; (3) Subject to release of such moneys by the controlling
board, contract for labor and materials needed for, or contract
with others, including governmental agencies, to provide, project
facilities the allowable costs of which are to be paid for or
reimbursed from moneys in the facilities establishment fund, and
contract for the operation of such project facilities; (4) Subject to release thereof by the controlling board,
from moneys in the facilities establishment fund acquire or
contract to acquire by gift, exchange, or purchase, including the
obtaining and exercise of purchase options, property, and convey
or otherwise dispose of, or provide for the conveyance or
disposition of, property so acquired or contracted to be acquired
by sale, exchange, lease, lease purchase, conditional or
installment sale, transfer, or other disposition, including the
grant of an option to purchase, to any governmental agency or to
any other person without necessity for competitive bidding and
upon such terms and conditions and manner of consideration
pursuant to and as the director determines to be appropriate to
satisfy the objectives of
sections 166.01 to 166.11
of the Revised Code; (5) Retain the services of or employ financial
consultants,
appraisers, consulting engineers, superintendents,
managers,
construction and accounting experts, attorneys, and
employees,
agents, and independent contractors as are necessary
in
the
director's judgment and fix the compensation for
their services; (6) Receive and accept from any person grants, gifts, and
contributions of money, property, labor, and other things of
value, to be held, used and applied only for the purpose for
which
such grants, gifts, and contributions are made; (7) Enter into appropriate arrangements and agreements
with
any governmental agency for the taking or provision by that
governmental agency of any governmental action; (8) Do all other acts and enter into contracts and execute
all instruments necessary or appropriate to carry out the
provisions of Chapter 166. of the Revised Code; (9) Adopt rules to implement any of the provisions of
Chapter 166. of the Revised Code applicable to the director. (C) The determinations by the director that facilities
constitute eligible projects, that facilities are project
facilities, that costs of such facilities are allowable costs,
and
all other determinations relevant thereto or to an action
taken or
agreement entered into shall be conclusive for purposes
of the
validity and enforceability of rights of parties arising
from
actions taken and agreements entered into under this
chapter. (D) Except as otherwise prescribed in Chapter 166. of the
Revised Code, all expenses and obligations incurred by the
director in carrying out
the director's powers and in
exercising
the director's duties
under Chapter 166. of
the Revised Code, shall be payable solely
from, as appropriate,
moneys in the facilities establishment
fund, the loan guarantee
fund,
the innovation Ohio loan guarantee fund, the innovation Ohio
loan fund, the research and development loan fund, or moneys appropriated for such
purpose by the general
assembly. Chapter 166. of the Revised
Code does not authorize the
director or the issuing authority
under section 166.08 of the
Revised Code to incur bonded
indebtedness of the state or any
political subdivision thereof,
or to obligate or pledge moneys
raised by taxation for the
payment of any bonds or notes issued or
guarantees made pursuant
to Chapter 166. of the Revised Code. (E)
No financial
assistance for
project facilities shall
be provided under this
chapter unless the
provisions of the
agreement providing for such
assistance specify
that all wages
paid to laborers and mechanics
employed on such
project
facilities for which the assistance is
granted shall be
paid at
the prevailing rates of wages of laborers
and mechanics
for the
class of work called for by such project
facilities, which
wages
shall be determined in accordance with the
requirements of
Chapter 4115. of the Revised Code for
determination of prevailing
wage rates, provided that the
requirements of this division do
not
apply where the federal
government or any of its agencies
provides
financing assistance as
to all or any part of the funds
used in
connection with such
project facilities and prescribes
predetermined minimum wages to
be paid to such laborers and
mechanics; and provided further that
should a nonpublic user
beneficiary of the eligible project
undertake, as part of the
eligible project, construction to be
performed by its regular
bargaining unit employees who are covered
under a collective
bargaining agreement which was in existence
prior to the date of
the document authorizing such assistance
then, in that event, the
rate of pay provided under the collective
bargaining agreement
may
be paid to such employees. (F) Any governmental agency may enter into an agreement
with
the director, any other governmental agency, or a person to
be
assisted under this chapter, to take or provide for the
purposes
of this chapter any governmental action it is authorized
to take
or provide, and to undertake on behalf and at the request
of the
director any action which the director is authorized to
undertake
pursuant to divisions (B)(3), (4), and (5) of this
section
or
divisions (B)(3), (4), and (5) of section 166.12 of the Revised
Code. Governmental agencies of the state shall cooperate with
and
provide assistance to the director of development and the
controlling board in the exercise of their respective functions
under this chapter.
Sec. 166.08. (A) As used in this chapter: (1) "Bond proceedings" means the resolution, order, trust
agreement, indenture, lease, and other agreements, amendments and
supplements to the foregoing, or any one or more or combination
thereof, authorizing or providing for the terms and conditions
applicable to, or providing for the security or liquidity of,
obligations issued pursuant to this section, and the provisions
contained in such obligations. (2) "Bond service charges" means principal, including
mandatory sinking fund requirements for retirement of
obligations,
and interest, and redemption premium, if any,
required to be paid
by the state on obligations. (3) "Bond service fund" means the applicable fund and
accounts therein created for and pledged to the payment of bond
service charges, which may be, or may be part of, the economic
development bond service fund created by division (S) of this
section including all moneys and investments, and earnings from
investments, credited and to be credited thereto. (4) "Issuing authority" means the treasurer of state, or
the
officer who by law performs the functions of such officer. (5) "Obligations" means bonds, notes, or other evidence of
obligation including interest coupons pertaining thereto, issued
pursuant to this section. (6) "Pledged receipts" means all receipts of the state
representing the gross profit on the sale of spirituous liquor,
as
referred to in division (B)(4) of section 4301.10 of the
Revised
Code, after paying all costs and expenses of the
division of
liquor control and providing an adequate working
capital reserve
for the division of liquor control as provided
in that division,
but excluding the sum required by the second
paragraph of section
4301.12 of the Revised Code, as in effect on
May 2, 1980, to be
paid into the state treasury; moneys accruing
to the state from
the lease, sale, or other disposition, or use,
of project
facilities, and from the repayment, including
interest, of loans
made from proceeds received from the sale of
obligations; accrued
interest received from the sale of
obligations; income from the
investment of the special funds; and
any gifts, grants, donations,
and pledges, and receipts
therefrom, available for the payment of
bond service charges. (7) "Special funds" or "funds" means, except where the
context does not permit, the bond service fund, and any other
funds, including reserve funds, created under the bond
proceedings, and the economic development bond service fund
created by division (S) of this section to the extent provided in
the bond proceedings, including all moneys and investments, and
earnings from investment, credited and to be credited thereto. (B) Subject to the limitations provided in section 166.11
of
the Revised Code, the issuing authority, upon the
certification by
the director of development to the issuing
authority of the amount
of moneys or additional moneys needed in
the facilities
establishment fund, the loan guarantee fund, the innovation
Ohio loan fund, or the innovation Ohio loan guarantee fund, or the research and development loan fund for
the
purpose of paying, or making loans for, allowable costs from
the
facilities establishment fund
or, allowable innovation costs
from
the innovation Ohio loan fund, or allowable costs from the research and development loan fund, or needed for capitalized
interest,
for funding reserves, and for paying costs and expenses
incurred
in connection with the issuance, carrying, securing,
paying,
redeeming, or retirement of the obligations or any
obligations
refunded thereby, including payment of costs and
expenses relating
to letters of credit, lines of credit,
insurance, put agreements,
standby purchase agreements, indexing,
marketing, remarketing and
administrative arrangements, interest
swap or hedging agreements,
and any other credit enhancement,
liquidity, remarketing, renewal,
or refunding arrangements, all
of
which are authorized by this
section, or providing moneys for
the
loan guarantee fund
or the
innovation Ohio loan guarantee fund, as
provided in this chapter
or needed
for the purposes of funds
established in accordance with
or
pursuant to sections 122.35,
122.42, 122.54, 122.55, 122.56,
122.561, 122.57, and 122.80 of the
Revised Code which are within
the
authorization of Section 13 of
Article VIII, Ohio
Constitution,
shall issue obligations of the
state under this
section in the
required amount; provided that
such obligations may
be issued
to satisfy
the covenants in
contracts of
guarantee made under section 166.06
or 166.15 of the
Revised Code,
notwithstanding limitations
otherwise applicable to
the issuance
of obligations under this
section. The proceeds of
such
obligations, except for the
portion to be deposited in
special
funds, including reserve
funds, as may be provided in the
bond
proceedings, shall as
provided in the bond proceedings be
deposited by the director of
development to the facilities
establishment fund, the loan
guarantee fund, the innovation Ohio loan
guarantee fund, or the innovation Ohio loan fund, or the research and development loan fund.
Bond
proceedings for project financing obligations may provide that the
proceeds derived from the issuance of such obligations shall be
deposited into
such fund or funds provided for in the bond
proceedings and, to the extent
provided for in the bond
proceedings, such proceeds shall be deemed to have
been deposited
into the facilities establishment fund and transferred to such
fund or funds. The issuing authority may appoint trustees, paying
agents, and
transfer agents and may retain the services of
financial
advisors, accounting experts, and attorneys, and retain
or
contract for the services of marketing, remarketing, indexing,
and administrative agents, other consultants, and independent
contractors, including printing services, as are necessary in the
issuing authority's judgment to carry out this section. The
costs
of such services are allowable costs payable from the
facilities
establishment fund or the research and development loan fund
or allowable innovation costs payable from the
innovation Ohio loan fund. (C) The holders or owners of such obligations shall have
no
right to have moneys raised by taxation obligated or pledged,
and
moneys raised by taxation shall not be obligated or pledged,
for
the payment of bond service charges. Such holders or owners
shall
have no rights to payment of bond service charges from any
moneys
accruing to the state from the lease, sale, or other
disposition,
or use, of project facilities, or from payment of
the principal of
or interest on loans made, or fees charged for
guarantees made, or
from any money or property received by the
director, treasurer of
state, or the state under Chapter 122. of
the Revised Code, or
from any other use of the proceeds of the
sale of the obligations,
and no such moneys may be used for the
payment of bond service
charges, except for accrued interest,
capitalized interest, and
reserves funded from proceeds received
upon the sale of the
obligations and except as otherwise
expressly provided in the
applicable bond proceedings pursuant to
written directions by the
director. The right of such holders
and owners to payment of bond
service charges is limited to all
or that portion of the pledged
receipts and those special funds
pledged thereto pursuant to the
bond proceedings in accordance
with this section, and each such
obligation shall bear on its
face a statement to that effect. (D) Obligations shall be authorized by resolution or order
of the issuing authority and the bond proceedings shall provide
for the purpose thereof and the principal amount or amounts, and
shall provide for or authorize the manner or agency for
determining the principal maturity or maturities, not exceeding
twenty-five years from the date of issuance, the interest rate or
rates or the maximum interest rate, the date of the obligations
and the dates of payment of interest thereon, their denomination,
and the establishment within or without the state of a place or
places of payment of bond service charges. Sections 9.98 to
9.983
of the Revised Code are applicable to obligations issued
under
this section, subject to any applicable limitation under
section
166.11 of the Revised Code. The purpose of such
obligations may
be stated in the bond proceedings in terms
describing the general
purpose or purposes to be served. The
bond proceedings also shall
provide, subject to the provisions of
any other applicable bond
proceedings, for the pledge of all, or
such part as the issuing
authority may determine, of the pledged
receipts and the
applicable special fund or funds to the payment
of bond service
charges, which pledges may be made either prior
or subordinate to
other expenses, claims, or payments, and may be
made to secure the
obligations on a parity with obligations
theretofore or thereafter
issued, if and to the extent provided
in the bond proceedings.
The
pledged receipts and special funds
so pledged and thereafter
received by the state are immediately
subject to the lien of such
pledge without any physical delivery
thereof or further act, and
the lien of any such pledges is valid
and binding against all
parties having claims of any kind against
the state or any
governmental agency of the state, irrespective
of whether such
parties have notice thereof, and shall create a
perfected security
interest for all purposes of Chapter 1309. of
the Revised Code,
without the necessity for separation or
delivery of funds or for
the filing or recording of the bond
proceedings by which such
pledge is created or any certificate,
statement or other document
with respect thereto; and the pledge
of such pledged receipts and
special funds is effective and the
money therefrom and thereof may
be applied to the purposes for
which pledged without necessity for
any act of appropriation.
Every pledge, and every covenant and
agreement made with respect
thereto, made in the bond proceedings
may therein be extended to
the benefit of the owners and holders
of obligations authorized
by this section, and to any trustee
therefor, for the further
security of the payment of the bond
service charges. (E) The bond proceedings may contain additional provisions
as to: (1) The redemption of obligations prior to maturity at the
option of the issuing authority at such price or prices and under
such terms and conditions as are provided in the bond
proceedings; (2) Other terms of the obligations; (3) Limitations on the issuance of additional obligations; (4) The terms of any trust agreement or indenture securing
the obligations or under which the same may be issued; (5) The deposit, investment and application of special
funds, and the safeguarding of moneys on hand or on deposit,
without regard to Chapter 131. or 135. of the Revised Code, but
subject to any special provisions of this chapter, with respect
to
particular funds or moneys, provided that any bank or trust
company which acts as depository of any moneys in the special
funds may furnish such indemnifying bonds or may pledge such
securities as required by the issuing authority; (6) Any or every provision of the bond proceedings being
binding upon such officer, board, commission, authority, agency,
department, or other person or body as may from time to time have
the authority under law to take such actions as may be necessary
to perform all or any part of the duty required by such
provision; (7) Any provision that may be made in a trust agreement or
indenture; (8) Any other or additional agreements with the holders of
the obligations, or the trustee therefor, relating to the
obligations or the security therefor, including the assignment of
mortgages or other security obtained or to be obtained for loans
under section 122.43, 166.07, or 166.16 of the Revised Code. (F) The obligations may have the great seal of the state
or
a facsimile thereof affixed thereto or printed thereon. The
obligations and any coupons pertaining to obligations shall be
signed or bear the facsimile signature of the issuing authority.
Any obligations or coupons may be executed by the person who, on
the date of execution, is the proper issuing authority although
on
the date of such bonds or coupons such person was not the
issuing
authority. If the issuing authority whose signature
or a
facsimile of whose signature appears on any such obligation
or
coupon ceases to be the issuing authority before delivery
thereof,
such signature or facsimile is nevertheless valid and
sufficient
for all purposes as if the former issuing
authority had remained
the issuing
authority until such delivery; and if the seal to be
affixed
to obligations has been changed after a facsimile of the
seal has
been imprinted on such obligations, such facsimile seal
shall
continue to be sufficient as to such obligations and
obligations
issued in substitution or exchange therefor. (G) All obligations are negotiable instruments and
securities under Chapter 1308. of the Revised Code, subject to
the
provisions of the bond proceedings as to registration. The
obligations may be issued in coupon or in registered form, or
both, as the issuing authority determines. Provision may be made
for the registration of any obligations with coupons attached
thereto as to principal alone or as to both principal and
interest, their exchange for obligations so registered, and for
the conversion or reconversion into obligations with coupons
attached thereto of any obligations registered as to both
principal and interest, and for reasonable charges for such
registration, exchange, conversion, and reconversion. (H) Obligations may be sold at public sale or at private
sale, as determined in the bond proceedings. Obligations issued to provide moneys for the loan guarantee
fund
or the innovation Ohio loan guarantee fund may, as determined
by the issuing authority, be sold at
private sale, and without
publication of a notice of sale. (I) Pending preparation of definitive obligations, the
issuing authority may issue interim receipts or certificates
which
shall be exchanged for such definitive obligations. (J) In the discretion of the issuing authority,
obligations
may be secured additionally by a trust agreement or
indenture
between the issuing authority and a corporate trustee
which may be
any trust company or bank having its principal place
of business
within the state. Any such agreement or indenture
may contain the
resolution or order authorizing the issuance of
the obligations,
any provisions that may be contained in any bond
proceedings, and
other provisions which are customary or
appropriate in an
agreement or indenture of such type, including,
but not limited
to: (1) Maintenance of each pledge, trust agreement,
indenture,
or other instrument comprising part of the bond
proceedings until
the state has fully paid the bond service
charges on the
obligations secured thereby, or provision therefor
has been made; (2) In the event of default in any payments required to be
made by the bond proceedings, or any other agreement of the
issuing authority made as a part of the contract under which the
obligations were issued, enforcement of such payments or
agreement
by mandamus, the appointment of a receiver, suit in
equity, action
at law, or any combination of the foregoing; (3) The rights and remedies of the holders of obligations
and of the trustee, and provisions for protecting and enforcing
them, including limitations on rights of individual holders of
obligations; (4) The replacement of any obligations that become
mutilated
or are destroyed, lost, or stolen; (5) Such other provisions as the trustee and the issuing
authority agree upon, including limitations, conditions, or
qualifications relating to any of the foregoing. (K) Any holders of obligations or trustees under the bond
proceedings, except to the extent that their rights are restricted
by the bond proceedings, may by any suitable form of legal
proceedings, protect and enforce any rights under the laws of
this
state or granted by such bond proceedings. Such rights
include
the right to compel the performance of all duties of the
issuing
authority, the director of development, or the division of liquor
control required by this chapter or the bond
proceedings; to
enjoin unlawful activities; and in the event of
default with
respect to the payment of any bond service charges
on any
obligations or in the performance of any covenant or
agreement on
the part of the issuing authority, the director of
development, or
the division of liquor control in the bond
proceedings, to apply
to a court having jurisdiction of the cause
to appoint a receiver
to receive and administer the pledged
receipts and special funds,
other than those in the custody of
the treasurer of state, which
are pledged to the payment of the
bond service charges on such
obligations or which are the subject
of the covenant or agreement,
with full power to pay, and to
provide for payment of bond service
charges on, such obligations,
and with such powers, subject to the
direction of the court, as
are accorded receivers in general
equity cases, excluding any
power to pledge additional revenues or
receipts or other income
or moneys of the issuing authority or the
state or governmental
agencies of the state to the payment of such
principal and
interest and excluding the power to take possession
of, mortgage,
or cause the sale or otherwise dispose of any
project facilities. Each duty of the issuing authority and the issuing
authority's officers and employees, and of each governmental
agency and its officers, members, or employees, undertaken
pursuant to the bond proceedings or any agreement or lease,
lease-purchase agreement, or loan made under authority of this
chapter, and in every agreement by or with the issuing authority,
is hereby established as a duty of the issuing authority, and of
each such officer, member, or employee having authority to
perform
such duty, specifically enjoined by the law resulting
from an
office, trust, or station within the meaning of section
2731.01 of
the Revised Code. The person who is at the time the issuing authority, or the
issuing authority's officers or employees, are not liable in
their
personal capacities on any obligations issued by the
issuing
authority or any agreements of or with the issuing
authority. (L) The issuing authority may authorize and issue
obligations for the refunding, including funding and retirement,
and advance refunding with or without payment or redemption prior
to maturity, of any obligations previously issued by the issuing
authority. Such obligations may be issued in amounts sufficient
for payment of the principal amount of the prior obligations, any
redemption premiums thereon, principal maturities of any such
obligations maturing prior to the redemption of the remaining
obligations on a parity therewith, interest accrued or to accrue
to the maturity dates or dates of redemption of such obligations,
and any allowable costs including expenses incurred or to be
incurred in connection with such issuance and such refunding,
funding, and retirement. Subject to the bond proceedings
therefor, the portion of proceeds of the sale of obligations
issued under this division to be applied to bond service charges
on the prior obligations shall be credited to an appropriate
account held by the trustee for such prior or new obligations or
to the appropriate account in the bond service fund for such
obligations. Obligations authorized under this division shall be
deemed to be issued for those purposes for which such prior
obligations were issued and are subject to the provisions of this
section pertaining to other obligations, except as otherwise
provided in this section; provided that, unless otherwise
authorized by the general assembly, any limitations imposed by
the
general assembly pursuant to this section with respect to
bond
service charges applicable to the prior obligations shall be
applicable to the obligations issued under this division to
refund, fund, advance refund or retire such prior obligations. (M) The authority to issue obligations under this section
includes authority to issue obligations in the form of bond
anticipation notes and to renew the same from time to time by the
issuance of new notes. The holders of such notes or interest
coupons pertaining thereto shall have a right to be paid solely
from the pledged receipts and special funds that may be pledged
to
the payment of the bonds anticipated, or from the proceeds of
such
bonds or renewal notes, or both, as the issuing authority
provides
in the resolution or order authorizing such notes. Such
notes may
be additionally secured by covenants of the issuing
authority to
the effect that the issuing authority and the state
will do such
or all things necessary for the issuance of such
bonds or renewal
notes in appropriate amount, and apply the
proceeds thereof to the
extent necessary, to make full payment of
the principal of and
interest on such notes at the time or times
contemplated, as
provided in such resolution or order. For such
purpose, the
issuing authority may issue bonds or renewal notes
in such
principal amount and upon such terms as may be necessary
to
provide funds to pay when required the principal of and
interest
on such notes, notwithstanding any limitations
prescribed by or
for purposes of this section. Subject to this
division, all
provisions for and references to obligations in
this section are
applicable to notes authorized under this
division. The issuing authority in the bond proceedings authorizing
the
issuance of bond anticipation notes shall set forth for such
bonds
an estimated interest rate and a schedule of principal
payments
for such bonds and the annual maturity dates thereof,
and for
purposes of any limitation on bond service charges
prescribed
under division (A) of section 166.11 of the Revised
Code, the
amount of bond service charges on such bond
anticipation notes is
deemed to be the bond service charges for
the bonds anticipated
thereby as set forth in the bond
proceedings applicable to such
notes, but this provision does not
modify any authority in this
section to pledge receipts and
special funds to, and covenant to
issue bonds to fund, the
payment of principal of and interest and
any premium on such
notes. (N) Obligations issued under this section are lawful
investments for banks, societies for savings, savings and loan
associations, deposit guarantee associations, trust companies,
trustees, fiduciaries, insurance companies, including domestic
for
life and domestic not for life, trustees or other officers
having
charge of sinking and bond retirement or other special
funds of
political subdivisions and taxing districts of this
state, the
commissioners of the sinking fund of the state, the
administrator
of workers' compensation, the state teachers retirement
system,
the public employees retirement system, the school
employees
retirement system, and the Ohio police and
fire pension fund,
notwithstanding any other
provisions of the Revised Code or rules
adopted pursuant thereto by any
governmental agency of the state
with respect to investments by
them, and are also acceptable as
security for the deposit of
public moneys. (O) Unless otherwise provided in any applicable bond
proceedings, moneys to the credit of or in the special funds
established by or pursuant to this section may be invested by or
on behalf of the issuing authority only in notes, bonds, or other
obligations of the United States, or of any agency or
instrumentality of the United States, obligations guaranteed as to
principal
and interest by the United States, obligations of this
state or
any political subdivision of this state, and certificates
of deposit of
any national bank located in this state and any
bank, as defined
in section 1101.01 of the Revised Code, subject
to inspection by
the superintendent of banks. If the law or the
instrument
creating a trust pursuant to division (J) of this
section
expressly permits investment in direct obligations of the
United
States or an agency of the United States, unless expressly
prohibited by the
instrument, such moneys also may be invested in
no-front-end-load
money market mutual funds consisting exclusively
of obligations
of the United States or an agency of the United
States and in repurchase
agreements, including those issued by the
fiduciary itself,
secured by obligations of the United States or
an agency of the United States;
and in common trust funds
established in accordance with section
1111.20 of the Revised Code
and consisting exclusively of any
such securities, notwithstanding
division (A)(4) of that section.
The income from such investments
shall be credited to such funds
as the issuing authority
determines, and such investments may be
sold at such times as the
issuing authority determines or
authorizes. (P) Provision may be made in the applicable bond
proceedings
for the establishment of separate accounts in the
bond service
fund and for the application of such accounts only
to the
specified bond service charges on obligations pertinent to
such
accounts and bond service fund and for other accounts
therein
within the general purposes of such fund. Unless
otherwise
provided in any applicable bond proceedings, moneys to
the credit
of or in the several special funds established
pursuant to this
section shall be disbursed on the order of the
treasurer of state,
provided that no such order is required for
the payment from the
bond service fund when due of bond service
charges on obligations. (Q) The issuing authority may pledge all, or such portion
as
the issuing authority determines, of the pledged receipts to
the
payment of bond service charges on obligations issued under
this
section, and for the establishment and maintenance of any
reserves, as provided in the bond proceedings, and make other
provisions therein with respect to pledged receipts as authorized
by this chapter, which provisions are controlling notwithstanding
any other provisions of law pertaining thereto. (R) The issuing authority may covenant in the bond
proceedings, and any such covenants are controlling
notwithstanding any other provision of law, that the state and
applicable officers and governmental agencies of the state,
including the general assembly, so long as any obligations
are
outstanding, shall: (1) Maintain statutory authority for and cause to be
charged
and collected wholesale and retail prices for spirituous
liquor
sold by the state or its agents so that the pledged
receipts are
sufficient in amount to meet bond service charges,
and the
establishment and maintenance of any reserves and other
requirements provided for in the bond proceedings, and, as
necessary, to meet covenants contained in contracts of guarantee
made under section 166.06
of the Revised Code; (2) Take or permit no action, by statute or otherwise,
that
would impair the exemption from federal income taxation of
the
interest on the obligations. (S) There is hereby created the economic development bond
service fund, which shall be in the custody of the treasurer of
state but shall be separate and apart from and not a part of the
state treasury. All moneys received by or on account of the
issuing authority or state agencies and required by the
applicable
bond proceedings, consistent with this section, to be
deposited,
transferred, or credited to a bond service fund or the
economic
development bond service fund, and all other moneys
transferred or
allocated to or received for the purposes of the
fund, shall be
deposited and credited to such fund and to any
separate accounts
therein, subject to applicable provisions of
the bond proceedings,
but without necessity for any act of
appropriation. During the
period beginning with the date of the
first issuance of
obligations and continuing during such time as
any such
obligations are outstanding, and so long as moneys in
the
pertinent bond service funds are insufficient to pay all bond
services charges on such obligations becoming due in each year, a
sufficient amount of the gross profit on the sale of spirituous
liquor included in pledged receipts are committed and shall be
paid to the bond service fund or economic development bond
service
fund in each year for the purpose of paying the bond
service
charges becoming due in that year without necessity for
further
act of appropriation for such purpose and notwithstanding
anything
to the contrary in Chapter 4301. of the Revised Code.
The
economic development bond service fund is a trust fund and is
hereby pledged to the payment of bond service charges to the
extent provided in the applicable bond proceedings, and payment
thereof from such fund shall be made or provided for by the
treasurer of state in accordance with such bond proceedings
without necessity for any act of appropriation. (T) The obligations, the transfer thereof, and the income
therefrom, including any profit made on the sale thereof, shall
at
all times be free from taxation within the state.
Sec. 166.11. (A) The aggregate principal amount of project
financing
obligations that may be issued under
section 166.08 of
the Revised Code is three hundred
million dollars, plus the
principal amount of such project financing
obligations retired by
payments. The aggregate principal amount of
obligations,
exclusive of project financing obligations,
that may be issued
under section 166.08 of the
Revised Code is three five hundred million
dollars, plus the principal
amount of any such obligations retired
by payment, the amounts
held
or obligations pledged for the
payment of the principal
amount of any such
obligations
outstanding, amounts in special
funds held as
reserves to meet
bond service charges, and amounts
of obligations
issued to provide
moneys required to meet payments
from the loan
guarantee fund
created in section 166.06 of the
Revised Code
and the innovation
Ohio loan guarantee fund created
in section 166.15 of the Revised
Code, and
minus the amount if any
by which four per cent
of the
unpaid
principal amount of loan
repayments guaranteed under
section
166.06 of the Revised Code
exceeds the amount in the loan
guarantee fund. The terms of the obligations issued under
section
166.08 of
the Revised Code, other than obligations issued
to meet
guarantees
that cannot be satisfied from amounts then
held in the
loan
guarantee fund, shall be such that the aggregate
amount of
moneys
used from profit from the sale of
spirituous liquor, and
not from
other sources, in any fiscal year
shall not exceed
twenty-five forty-five
million dollars. For purposes of
the preceding
sentence, "other
sources" include the annual
investment income on
special funds to
the extent it will be
available for payment of
any bond service
charges in lieu of use
of profit from the sale of
spirituous
liquor, and shall be
estimated on the basis of the
expected
funding of those special
funds and assumed investment
earnings
thereon at a rate equal to
the weighted average yield on
investments of those special funds
determined as of any date
within sixty days immediately preceding
the date of issuance of
the bonds in respect of which the
determination is being made.
The
determinations required by this
division shall be made by the
treasurer of state at the time of
issuance of an issue of
obligations and shall be conclusive for
purposes of such issue of
obligations from and after their
issuance and delivery. (B) The aggregate amount of the guaranteed portion of the
unpaid principal of loans guaranteed under
sections 166.06
and 166.15 of the
Revised Code and the unpaid principal of loans
made under
sections
166.07
and, 166.16, and 166.21 of the Revised Code
may not at any time exceed
seven eight
hundred million dollars.
Of
that
seven eight hundred million dollars, the aggregate amount of the
guaranteed portion of the unpaid principal of loans guaranteed
under sections 166.06 and 166.15 of the Revised Code shall not at
any time exceed two hundred million dollars. However,
the limitations established under this division do
not apply to loans
made with proceeds from the issuance and sale
of project financing
obligations.
Sec. 166.13. (A) Prior to entering into each agreement to
provide innovation financial assistance under sections 166.12,
166.15, and 166.16 of the Revised Code, the director of
development shall determine whether the assistance will conform to
the requirements of sections 166.12 to 166.16 of the Revised Code.
Such determination, and the facts upon which it is based, shall be
set forth by the director in submissions made to the controlling
board for purposes of section 166.16 of the Revised Code and to
the development finance financing advisory council under section 166.14 of
the Revised Code. An agreement to provide assistance under
sections 166.12, 166.15, and 166.16 of the Revised Code shall set
forth the determination, which shall be conclusive for purposes of
the validity and enforceability of the agreement and any
innovation loan guarantees, innovation loans, or other agreements
entered into pursuant to the agreement to provide innovation
financial assistance.
(B) Whenever a person applies for innovation financial
assistance under sections 166.12, 166.15, and 166.16 of the
Revised Code and the eligible innovation project for which
innovation financial assistance is requested is to relocate an
eligible innovation project that is currently being operated by
the person and that is located in another county, municipal
corporation, or township, the director shall provide written
notification to the appropriate local governmental bodies and
state officials. The notification shall contain the following
information:
(1) The name of the person applying for innovation
financial assistance;
(2) The county, and the municipal corporation or township,
in which the eligible innovation project for which innovation
financial assistance is requested is located; and
(3) The county, and the municipal corporation or township,
in which the eligible innovation project to be replaced is
located.
The director shall provide the written notification to the
appropriate local governmental bodies and state officials so that
they receive the notification at least five days before the
development finance financing advisory council meeting at which the council
considers the request for innovation financial assistance pursuant
to sections 166.12, 166.15, and 166.16 of the Revised Code.
(C) As used in division (B) of this section:
(1) "Appropriate local governmental bodies" means:
(a) The boards of county commissioners or legislative
authorities of the county in which the project for which
innovation financial assistance is requested is located and of the
county in which the eligible innovation project to be replaced is
located;
(b) The legislative authority of the municipal corporation
or the board of township trustees of the township in which the
eligible innovation project for which innovation financial
assistance is requested is located; and
(c) The legislative authority of the municipal corporation
or the board of township trustees of the township in which the
eligible innovation project to be replaced is located.
(2) "State officials" means:
(a) The state representative and state senator in whose
districts the project for which innovation financial assistance is
requested is located;
(b) The state representative and state senator in whose
districts the innovation project to be replaced is located.
Sec. 166.14. (A) In determining the eligible innovation
projects to be assisted and the nature, amount, and terms of
innovation financial assistance to be provided for an eligible
innovation project under sections 166.12 to 166.16 of the Revised
Code:
(1) The director of development shall take into
consideration all of the following:
(a) The number of jobs to be created or preserved by the
eligible innovation project, directly or indirectly;
(b) Payrolls, and the taxes generated, at both state and
local levels, by or in connection with the eligible innovation
project and by the employment created or preserved by or in
connection with the eligible innovation project;
(c) The size, nature, and cost of the eligible innovation
project, including the prospect of the eligible innovation project
for providing long-term jobs in enterprises consistent with the
changing economics of the state and the nation;
(d) The needs of any private sector enterprise to be
assisted;
(e) The amount and kind of assistance, if any, to be
provided to the private sector enterprise by other governmental
agencies through tax exemption or abatement, financing assistance
with industrial development bonds, and otherwise, with respect to
the eligible innovation project or with respect to any providers
of innovation property to be included as part of the eligible
innovation project;
(f) The likelihood of the successful implementation of the
proposed eligible innovation project;
(g) Whether the eligible innovation project involves the
use of technology in a targeted innovation industry sector.
(2) The benefits to the local area, including taxes, jobs,
and reduced unemployment and reduced welfare costs, among others,
may be accorded value in the leasing or sales of innovation
project
facilities and in loan and guarantee arrangements.
(3) In making determinations under division (A)(1) of this
section, the director may consider the effect of an eligible
innovation project upon any entity engaged to provide innovation
property to be acquired, leased, or licensed in connection with
such assistance.
(B) The director shall submit to the development finance financing
advisory council data pertinent to the considerations set forth in
division (A) of this section, the terms of the proposed innovation
financial assistance, and such other relevant information as the
council may request.
(C) The development finance financing advisory council, on the basis
of such data, shall make recommendations as to the appropriateness
of the innovation financial assistance to be provided. The
recommendations may be revised to reflect any changes in the
proposed innovation financial assistance as the director may
submit to the council. The recommendations, as amended, of the
council as to the appropriateness of the proposed innovation
financial assistance shall be submitted to the controlling board.
(D) Financial statements and other data submitted to the
director of development, the development finance financing advisory council,
or the controlling board by any private sector person in
connection with innovation financial assistance under sections
166.12, 166.15, and 166.16 of the Revised Code, or any information
taken from such statements or data for any purpose, shall not be
open to public inspection. The development finance financing advisory
council in considering confidential information in connection with
innovation financial assistance under this chapter may, only for
consideration of the confidential information referred to, and in
the manner provided in division (E) of section 121.22 of the
Revised Code, close the meeting during such consideration.
Sec. 166.16. (A) The director of development, with the
approval of the controlling board and subject to the other
applicable provisions of this chapter, may lend moneys in the
innovation Ohio loan fund to persons for the purpose of paying
allowable innovation costs of an eligible innovation project if
the director determines that:
(1) The project is an eligible innovation project and is
economically sound.
(2) The borrower is unable to finance the necessary
allowable costs through ordinary financial channels upon
comparable terms.
(3) The amount to be lent from the innovation Ohio loan
fund will not exceed ninety per cent of the total costs of the
eligible innovation project.
(4) The repayment of the loan from the innovation Ohio loan
fund will be secured by a mortgage, lien, assignment,
or pledge,
or other interest in property or innovation property at
such level
of priority and value as the director may determine
necessary,
provided that, in making such a determination, the
director may
take into account the value of any rights granted by
the borrower
to the director to control the use of any property or
innovation
property of the borrower under the circumstances
described in the
loan documents.
(B) The determinations of the director under division (A) of
this section shall be conclusive for purposes of the validity of a
loan commitment evidenced by a loan agreement signed by the
director.
(C) Fees, charges, rates of interest, times of payment of
interest and principal, and other terms, conditions, and
provisions of and security for loans made from the innovation Ohio
loan fund shall be such as the director determines to be
appropriate and in furtherance of the purpose for which the loans
are made. The moneys used in making the loans shall be disbursed
from the innovation Ohio loan fund upon order of the director.
Unless otherwise specified in any indenture or other instrument
securing obligations under division (D) of section 166.08 of the
Revised Code, any payments of principal and interest from loans
made from the innovation Ohio loan fund shall be paid to the
innovation Ohio loan fund and used for the purpose of making
loans.
(D) The innovation Ohio loan fund is hereby created as a
special revenue fund and a trust fund which shall be in the
custody of the treasurer of state but shall be separate and apart
from and not a part of the state treasury. The fund shall consist
of all grants, gifts, and contributions of moneys or rights to
moneys lawfully designated for or deposited in such fund, all
moneys and rights to moneys lawfully appropriated and transferred
to such fund, including moneys received from the issuance of
obligations under section 166.08 of the Revised Code, and moneys
deposited to such fund pursuant to divisions (C) and (G)(H) of this
section. The innovation Ohio loan fund shall not be comprised, in
any part, of moneys raised by taxation.
(E) The director may take actions necessary or appropriate
to collect or otherwise deal with any loan made under this
section.
(F) The director may fix service charges for the making of
a loan. The charges shall be payable at such times and place and
in such amounts and manner as may be prescribed by the director.
(G) The treasurer of state shall serve as an agent for the
director in the making of deposits and withdrawals and maintenance
of records pertaining to the innovation Ohio loan fund.
(H)(1) There shall be credited to the innovation Ohio loan
fund the moneys received by this state from the repayment of
innovation Ohio loans and recovery on loan guarantees, including
interest thereon, made from the innovation Ohio loan fund or from
the innovation Ohio loan guarantee fund and from the sale, lease,
or other disposition of property acquired or constructed from with
moneys in the innovation Ohio loan fund with moneys derived from
the proceeds of the sale of obligations under section 166.08 of
the Revised Code. Such moneys shall be applied as provided in
this chapter pursuant to appropriations made by the general
assembly.
(2) Notwithstanding division (H)(1) of this section, any
amounts recovered on innovation Ohio loan guarantees shall be
deposited to the credit of the innovation Ohio loan guarantee fund
to the extent necessary to restore that fund to the innovation
Ohio loan guarantee reserve requirement or any level in excess
thereof
required
by any guarantee contract. Money in the
innovation Ohio
loan guarantee fund in excess of the innovation
Ohio loan
guarantee reserve requirement, but subject to the
provisions and
requirements of any guarantee contracts, may be
transferred to the
innovation Ohio loan fund by the treasurer of
state upon the order
of the director of development.
(3) In addition to the requirements of division (H)(1) of
this section, moneys referred to in that division may be deposited
to the credit of separate accounts within the innovation Ohio loan
fund or in the bond service fund and pledged to the security of
obligations, applied to the payment of bond service charges
without need for appropriation, released from any such pledge and
transferred to the innovation Ohio loan fund, all as and to the
extent provided in the bond proceedings pursuant to written
directions by the director of development. Accounts may be
established by the director in the innovation Ohio loan fund for
particular projects or otherwise. Income from the investment of
moneys in the innovation Ohio loan fund shall be credited to that
fund and, as may be provided in bond proceedings, to particular
accounts in that fund. The treasurer of state may withdraw from
the innovation Ohio loan fund or, subject to provisions of the
applicable bond proceedings, from any special funds established
pursuant to the bond proceedings, or from any accounts in such
funds, any amounts of investment income required to be rebated and
paid to the federal government in order to maintain the exemption
from federal income taxation of interest on obligations issued
under this chapter, which withdrawal and payment may be made
without necessity for appropriation.
Sec. 166.17. (A) The general assembly finds that in order to enhance the economic opportunities available to all the people of the state and to maintain and enhance the competitiveness of the Ohio economy and to improve the economic welfare of the people of the state, it is necessary to ensure that the people of the state will continue to have access to high-value jobs in technology, and that in order to facilitate such continued access, it is necessary to provide incentives to ensure the retention and attraction of businesses that will develop new or improved technologies, processes, and products, or apply existing technologies in new ways. Further, the general assembly finds that the attraction of such jobs and their presence in this state will materially contribute to the economic welfare of all the people of the state. Accordingly, it is declared to be the public policy of this state, through the operations under sections 166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code, and the provisions for financial assistance contained in those sections, applicable laws adopted pursuant to Ohio Constitution, Article VIII, Section 13, and other authority vested in the general assembly, to assist in and facilitate the establishment or development of eligible research and development projects or assist and cooperate with any governmental agency in achieving that purpose.
(B) In furtherance of that public policy and to implement that purpose, the director of development may do any of the following:
(1) After consultation with appropriate governmental agencies, enter into agreements with persons engaged in industry, commerce, distribution, or research and with governmental agencies to induce such persons to acquire, construct, reconstruct, rehabilitate, renovate, enlarge, improve, equip, or furnish, or otherwise develop, eligible research and development projects, or to enable governmental agencies to acquire, construct, reconstruct, rehabilitate, renovate, enlarge, improve, equip, or furnish, or otherwise develop, eligible research and development projects for lease to persons engaged in industry, commerce, distribution, or research;
(2) Provide for loans under section 166.21 of the Revised Code to finance eligible research and development projects;
(3) Subject to the release of such moneys by the controlling board, contract for labor and materials needed for, or contract with others, including governmental agencies, to provide eligible research and development projects, the allowable costs of which are to be paid for or reimbursed from moneys in the research and development loan fund, and contract for the operation of such eligible research and development projects;
(4) Subject to release thereof by the controlling board, from moneys in the research and development loan fund, acquire or contract to acquire by gift, exchange, or purchase, including the obtaining and exercise of purchase options, property, and convey or otherwise dispose of, or provide for the conveyance or disposition of, property so acquired or contracted to be acquired by sale, exchange, lease, lease purchase, conditional or installment sale, transfer, or other disposition, including the grant of an option to purchase, to any governmental agency or to any other person without necessity for competitive bidding and upon such terms and conditions and manner of consideration pursuant to, and as the director determines to be appropriate to satisfy the objectives of, Chapter 166. of the Revised Code;
(5) Retain the services of or employ financial consultants, appraisers, consulting engineers, superintendents, managers, construction and accounting experts, attorneys, and employees, agents, and independent contractors as are necessary in the director's judgment and fix the compensation for their services;
(6) Receive and accept from any person, grants, gifts, and contributions of money, property, labor, and other things of value, to be held, used, and applied only for the purpose for which such grants, gifts, and contributions are made;
(7) Enter into appropriate arrangements and agreements with any governmental agency for the taking or provision by that governmental agency of any governmental action with respect to eligible research and development projects;
(8) Do all other acts and enter into contracts, execute all instruments, and make all certifications necessary or appropriate to carry out sections 166.01, 166.17 to 166.20, 5733.352, and 5747.331 of the Revised Code;
(9) With respect to property that is the subject of or related to research and development financial assistance, take such interests, including, but not limited to, mortgages, security interests, leasehold interests, assignments, and exclusive or non-exclusive licenses, as may be necessary or appropriate under the circumstances, to ensure that such property is used within this state and that products or services associated with that property are produced or, in the case of services, delivered, by persons employed within this state;
(10) Adopt rules necessary to implement any of the provisions of sections 166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code applicable to the director.
(C) The determination by the director that facilities or property constitute eligible research and development projects and that the costs of such facilities or property are allowable costs related to an eligible research and development project, and all other determinations relevant thereto or to an action taken or agreement entered into, shall be conclusive for purposes of the validity and enforceability of rights of parties arising from actions taken and agreements entered into under sections 166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code.
Sec. 166.18. (A) Prior to entering into each agreement to provide research and development financial assistance, the director of development shall determine whether the assistance will conform to the requirements of sections 166.17 to 166.21, 5733.352, and 5747.331 of the Revised Code. Such determination, and the facts upon which it is based, shall be set forth by the director in submissions made to the controlling board for purposes of section 166.17 of the Revised Code and to the development financing advisory council under section 166.19 of the Revised Code. An agreement to provide research and development financial assistance under section 166.17 or 166.21 of the Revised Code shall set forth the determination, which shall be conclusive for purposes of the validity and enforceability of the agreement and any loans or other agreements entered into pursuant to the agreement to provide research and development financial assistance.
(B) Whenever a person applies for research and development financial assistance and the eligible research and development project for which the research and development financial assistance is requested is to relocate an eligible research and development project that is currently being operated by the person and that is located in another county, municipal corporation, or township within the state, the director shall provide written notification to the appropriate local governmental bodies and state officials. The notification shall state:
(1) The name of the person applying for research and development financial assistance;
(2) The county, and the municipal corporation or township, in which the project for which research and development financial assistance is requested is located; and
(3) The county, and the municipal corporation or township, in which the eligible research and development project to be replaced is located.
The director shall provide the written notification to the appropriate local governmental bodies and state officials so that they receive the notification at least five days before the development financing advisory council meeting at which the council considers the request for research and development financial assistance.
(C) As used in division (B) of this section:
(1) "Appropriate local governmental bodies" means:
(a) The board of county commissioners of or legislative authorities of special districts in the county in which the project for which research and development financial assistance is requested is located and of the county in which the eligible research and development project to be replaced is located;
(b) The legislative authority of the municipal corporation or the board of township trustees of the township in which the eligible research and development project for which research and development financial assistance is requested is located; and
(c) The legislative authority of the municipal corporation or the board of township trustees of the township in which the eligible research and development project to be replaced is located.
(2) "State officials" means:
(a) The state representative and state senator in whose district the eligible research and development project for which research and development financial assistance is requested is located; and
(b) The state representative and state senator in whose district the eligible research and development project to be replaced is located.
Sec. 166.19. (A) In determining the eligible research and development projects to be assisted and the nature, amount, and terms of the research and development financial assistance to be provided:
(1) The director of development shall consider:
(a) The number of jobs to be created or preserved, directly or indirectly, by or in connection with the eligible research and development project; (b) Payrolls, and the taxes generated at both state and local levels, by the eligible research and development project and by the employment created or preserved by or in connection with the eligible research and development project;
(c) The size, nature, and cost of the eligible research and development project;
(d) The likelihood that the eligible research and development project will create long-term jobs in enterprises consistent with the changing economics of the state and nation;
(e) The needs of any private sector enterprise to be assisted, taking into consideration the amount and kind of assistance, if any, to be provided to the private sector enterprise by other governmental agencies through tax exemption or abatement, financing assistance with industrial development bonds, and otherwise, with respect to the eligible research and development project or with respect to any providers of research and development property to be included as part of the eligible research and development project; and
(f) The likelihood that the eligible research and development project will be successfully implemented.
(2) The director may consider the benefits to the local area, including taxes, jobs, and reduced unemployment and reduced welfare costs, in the leasing or sale of eligible research and development project facilities and in loan arrangements.
(3) The director may consider the effect of an eligible research and development project upon any entity engaged to provide research and development property to be acquired, leased, or licensed in connection with research and development financial assistance.
(B) The director shall submit to the development financing advisory council data pertinent to the considerations set forth in division (A) of this section, the terms of the proposed research and development assistance, and such other relevant information as the council may request.
(C) The development financing advisory council, on the basis of the data submitted under division (B) of this section, shall make recommendations as to the appropriateness of the research and development financial assistance to be provided. The recommendations may be revised to reflect any changes in the proposed research and development financial assistance as the director may submit to the council. The recommendations, as amended, of the council as to the appropriateness of the proposed research and development financial assistance shall be submitted to the controlling board.
(D) Financial statements and other data submitted to the director of development, the development financing advisory council, or the controlling board by any private sector person in connection with research and development financial assistance, or any information taken from such statements or data for any purpose, shall not be open to public inspection. The development financing advisory council in considering confidential information in connection with research and development financial assistance may, only for consideration of the confidential information referred to, and in the manner provided in division (E) of section 121.22 of the Revised Code, close the meeting during such consideration.
Sec. 166.20. The research and development loan fund is hereby created as a special revenue fund and a trust fund which shall be in the custody of the treasurer of state but shall be separate and apart from and not a part of the state treasury. The fund shall consist of moneys derived from the sale of obligations under section 166.08 of the Revised Code; moneys deposited to the research and development fund under section 166.21 of the Revised Code; and any grants, gifts, or contributions of money received by the director of development to be used for making loans under section 166.21 of the Revised Code. The fund shall not be comprised, in any part, of moneys raised by taxation. The treasurer of state shall serve as an agent for the director in the making of deposits and withdrawals and maintenance of records pertaining to the fund.
Sec. 166.21. (A) The director of development, with the approval of the controlling board and subject to other applicable provisions of this chapter, may lend moneys in the research and development loan fund to persons for the purpose of paying allowable costs of eligible research and development projects if the director determines that:
(1) The project is an eligible research and development project and is economically sound;
(2) The amount to be lent from the research and development loan fund will not exceed seventy-five per cent of the total costs of the eligible research and development project; and
(3) The repayment of the loan from the research and development fund will be secured by a mortgage, lien, assignment, pledge, or other interest in property or other assets of the borrower at such level of priority and value as the director considers necessary, provided that, in making such a determination, the director shall take into account the value of any rights granted by the borrower to the director to control the use of any assets of the borrower under the circumstances described in the loan documents.
(B) The determinations of the director under division (A) of this section shall be conclusive for purposes of the validity of a loan commitment evidenced by a loan agreement signed by the director.
(C) Fees, charges, rates of interest, times of payment of interest and principal, and other terms, conditions, and provisions of and security for loans made from the research and development loan fund shall be such as the director determines to be appropriate and in furtherance of the purpose for which the loans are made. The moneys used in making loans shall be disbursed from the research and development loan fund upon order of the director. Unless otherwise specified in any indenture or other instrument securing obligations under division (D) of section 166.08 of the Revised Code, any payments of principal and interest from loans made from the research and development loan fund shall be paid to the research and development loan fund and used for the purpose of making loans under this section.
(D)(1) As used in this division, "qualified research and development loan payments" means payments of principal due on a loan made from the research and development loan fund.
(2) Each year, the director shall issue a certificate to each borrower from the research and development loan fund indicating the amount of the qualified research and development loan payments made by the borrower during the tax year. The certificate shall state that the borrower's qualified research and development project alone, or in conjunction with other projects, creates new jobs and that as of the thirty-first day of December of the tax year for which the certificate is issued, the borrower is not in default under the loan agreement, lease, or other instrument governing repayment of the loan.
(E) The director may take actions necessary or appropriate to collect or otherwise deal with any loan made under this section.
(F) The director may fix service charges for the making of a loan. The charges shall be payable at such times and place and in such amounts and manner as may be prescribed by the director.
(G)(1) There shall be credited to the research and development loan fund moneys received by this state from the repayment of loans, including interest thereon, made from the research and development loan fund and moneys received from the sale, lease, or other disposition of property acquired or constructed with moneys in the research and development loan fund derived from the proceeds of the sale of obligations under section 166.08 of the Revised Code. Such moneys shall be applied as provided in this chapter pursuant to appropriations made by the general assembly.
(2) In addition to the requirements of division (G)(1) of this section, moneys referred to in that division may be deposited to the credit of separate accounts within the research and development loan fund or in the bond service fund and pledged to the security of obligations, applied to the payment of bond service charges without need for appropriation, released from any such pledge and transferred to the research and development loan fund, all as and to the extent provided in the bond proceedings pursuant to written directions by the director of development. Accounts may be established by the director in the research and development loan fund for particular projects or otherwise. Income from the investment of moneys in the research and development loan fund shall be credited to that fund and, as may be provided in bond proceedings, to particular accounts in that fund. The treasurer of state may withdraw from the research and development loan fund or, subject to provisions of the applicable bond proceedings, from any special funds established pursuant to the bond proceedings, or from any accounts in such funds, any amounts of investment income required to be rebated and paid to the federal government in order to maintain the exemption from federal income taxation of interest on obligations issued under this chapter, which withdrawal and payment may be made without the necessity for appropriation.
Sec. 184.04. (A) The Ohio research commercialization grant program is hereby created to improve the commercial viability of research projects by improving the ability of small technology companies to assess commercial potential and by promoting the competitiveness of these companies through the augmentation of federal research and development funding. The department of development shall award grants to eligible applicants on a competitive basis for the following purposes:
(1) Commercialization of a core competency technology, including, but not limited to, advanced materials, instruments, controls, electronics, biosciences, power and propulsion, and information technology; and
(2) Other related business activities related to the commercialization of core competency technology.
(B) In order to be eligible for an Ohio research commercialization grant, the applicant shall demonstrate both of the following to the director of development:
(1) It is located in Ohio.
(2) It has received an award of funds under (a) the small business innovation research program or small business technology transfer program established in 15 U.S.C. 638 or other similar federal award of funds designated by the director of development as qualifying an applicant for a grant under this section, or (b) if the applicant has not received a federal award of funds, the applicant demonstrates eligibility for an award of funds under the federal advanced technology program established in 15 U.S.C. 278n or other similar federal program designated by the director of development as qualifying an applicant for a grant under this section.
(C) If an applicant demonstrates eligibility for an award of funds under the federal advanced technology program or other similar federal program designated by the director of development under division (B)(2)(b) of this section, the director of development shall not make a grant to the applicant until the director has received notification from the applicant, in such form as the director prescribes, that the applicant has received an award of federal funds under the federal advanced technology program or other similar federal program designated by the director.
(D) An eligible applicant that receives a grant under the Ohio research commercialization grant program is not precluded from being considered for or participating in other financial assistance programs offered by the department of development.
(E) The director of development shall adopt rules in accordance with Chapter 119. of the Revised Code establishing all of the following:
(a) Forms and procedures by which eligible applicants may apply for grants under this section;
(b) Criteria for reviewing, evaluating, and ranking applications, and for approving applications from eligible applicants that best serve the goals of the Ohio research commercialization grant program;
(c) Reporting requirements and monitoring procedures;
(d) The federal awards and programs that make an applicant eligible for a grant under division (B) of this section;
(e) Any other rules necessary to implement and administer the Ohio research commercialization grant program.
Sec. 5733.352. (A) As used in this section:
(1) "Related member" has the same meaning as in section 5733.042 of the Revised Code.
(2) "Qualified research and development loan payments" has the same meaning as in division (D)(1) of section 166.21 of the Revised Code.
(B) A nonrefundable credit is allowed against the tax imposed by section 5733.06 of the Revised Code for a taxpayer's qualified research and development loan payments during the tax year for which the credit is claimed. The amount of the credit for a tax year shall not exceed one hundred fifty thousand dollars. The credit shall be claimed in the order required under section 5733.98 of the Revised Code. The credit, to the extent it exceeds the taxpayer's tax liability for the tax year after allowance for any other credits that precede the credit under this section in that order, shall be carried forward to the next succeeding tax year or years until fully utilized. The credit is disallowed if the taxpayer fails to file with the taxpayer's franchise tax report a copy of the certificate issued under section 166.21 of the Revised Code.
(C) A taxpayer entitled to the credit allowed under this section may assign the credit, or a portion thereof, to:
(1) A related member of the taxpayer;
(2) The owner or lessee of the eligible research and development project; or
(3) A related member of the owner or lessee of the eligible research and development project.
A taxpayer making an assignment under this division shall provide written notice of the assignment to the tax commissioner and the director of development, in such form as the tax commissioner prescribes. The assignee may apply the credit against the tax imposed under section 5733.06 of the Revised Code to the same extent as if that taxpayer were the taxpayer originally earning the credit. The credit is disallowed if the assignee fails to file with the assignee's franchise tax report a copy of the certificate issued under section 166.21 of the Revised Code.
Sec. 5733.98. (A) To provide a uniform procedure for
calculating the amount of tax imposed by section 5733.06 of the
Revised Code
that is due under this chapter, a taxpayer
shall
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised
Code: (1) The credit for taxes paid by a qualifying pass-through
entity allowed
under section 5733.0611 of the Revised Code; (2) The credit allowed for financial institutions under
section 5733.45 of the Revised Code;
(3) The credit for qualifying affiliated groups under
section
5733.068 of the Revised Code; (4) The subsidiary corporation credit under section
5733.067
of the Revised Code; (5) The savings and loan assessment credit under section
5733.063 of the Revised Code; (6) The credit for recycling and litter prevention
donations
under section
5733.064 of the Revised Code; (7) The credit for employers that enter into
agreements with
child day-care centers under section 5733.36 of the
Revised Code; (8) The credit for employers that reimburse employee child
day-care
expenses under section 5733.38 of the Revised
Code; (9) The credit for maintaining railroad active grade
crossing
warning
devices under section 5733.43 of the Revised
Code; (10) The credit for purchases of lights and reflectors under
section
5733.44 of the Revised Code; (11) The job retention credit under division (B) of section
5733.0610 of the Revised Code; (12) The credit for manufacturing investments under section
5733.061 of the Revised Code; (13) The credit for purchases of new manufacturing
machinery
and equipment under section 5733.31 or section 5733.311
of the
Revised Code; (14) The second credit for purchases of new
manufacturing
machinery and equipment under
section 5733.33 of the
Revised Code; (15) The job training credit under section 5733.42 of
the
Revised
Code; (16) The credit for qualified research expenses under
section 5733.351 of
the Revised Code; (17) The research and development credit under section 5733.352 of the Revised Code; (18) The enterprise zone credit under section 5709.66 of
the
Revised Code; (18)(19) The credit for the eligible costs associated with a
voluntary action under section 5733.34
of the Revised Code;
(19)(20) The credit for employers that establish on-site
child
day-care under section 5733.37 of the Revised
Code;
(20)(21)
The ethanol plant investment credit under section
5733.46 of the Revised Code;
(21)(22) The credit for purchases of qualifying grape
production
property under section 5733.32 of the Revised Code;
(22)(23) The export sales credit under section 5733.069 of
the
Revised Code;
(23)(24) The credit for research and development and
technology
transfer investors under section 5733.35 of the Revised
Code;
(24)(25) The enterprise zone credits under section 5709.65
of
the
Revised Code;
(25)(26) The credit for using Ohio coal under section
5733.39
of
the
Revised Code;
(26)(27) The refundable jobs creation credit under
division
(A)
of section
5733.0610 of the Revised Code;
(27)(28) The refundable credit for tax withheld under division
(B)(2) of section 5747.062 of the Revised Code.
(B) For any credit except the refundable
credits enumerated
in this section, the amount of the
credit for a tax year shall not
exceed
the tax due after allowing
for any other credit that
precedes it
in the order required under
this section. Any excess
amount of a
particular credit may be
carried forward if authorized
under the
section creating that
credit.
Sec. 5747.331. (A) As used in this section:
(1) "Related member" has the same meaning as in section 5733.042 of the Revised Code.
(2) "Qualified research and development loan payments" has the same meaning as in division (D)(1) of section 166.21 of the Revised Code.
(B) A nonrefundable credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer's qualified research and development loan payments during the tax year for which the credit is claimed. The amount of the credit for a tax year shall not exceed one hundred fifty thousand dollars. The credit shall be claimed in the order required under section 5747.98 of the Revised Code. The credit, to the extent it exceeds the taxpayer's tax liability for the tax year after allowance for any other credits that precede the credit under this section in that order, shall be carried forward to the next succeeding tax year or years until fully utilized. The credit is disallowed if the taxpayer fails to file with the taxpayer's income tax return a copy of the certificate issued under section 166.21 of the Revised Code.
(C) A taxpayer entitled to the credit allowed under this section may assign the credit, or a portion thereof, to:
(1) A related member of the taxpayer;
(2) The owner or lessee of the eligible research and development project; or
(3) A related member of the owner or lessee of the eligible research and development project.
A taxpayer making an assignment under this division shall provide written notice of the assignment to the tax commissioner and the director of development, in such form as the tax commissioner prescribes. The assignee may apply the credit against the tax imposed under section 5747.02 of the Revised Code to the same extent as if that taxpayer were the taxpayer originally earning the credit. The credit is disallowed if the assignee fails to file with the assignee's income tax return a copy of the certificate issued under section 166.21 of the Revised Code.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5747.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is
entitled in the following order: (1) The retirement income credit under division (B) of
section 5747.055 of the Revised Code; (2) The senior citizen credit under division (C) of
section
5747.05 of the Revised Code; (3) The lump sum distribution credit under division (D) of
section 5747.05 of the Revised Code; (4) The dependent care credit under section 5747.054 of
the
Revised Code; (5) The lump sum retirement income credit under division
(C)
of section 5747.055 of the Revised Code; (6) The lump sum retirement income credit under division
(D)
of section 5747.055 of the Revised Code; (7) The lump sum retirement income credit under division
(E)
of section 5747.055 of the Revised Code; (8) The credit for displaced workers who pay for job
training under section 5747.27 of the Revised Code; (9) The campaign contribution credit under section
5747.29
of
the Revised Code; (10) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code; (11) The joint filing credit under division (G) of
section
5747.05 of the Revised Code; (12) The nonresident credit under division (A) of
section
5747.05 of the Revised Code; (13) The credit for a resident's out-of-state income
under
division (B) of section 5747.05 of the Revised Code; (14) The credit for employers that enter
into agreements
with child day-care centers under section 5747.34 of the
Revised
Code; (15) The credit for employers that reimburse employee
child
day-care
expenses under section 5747.36 of the Revised Code; (16) The credit for adoption of a minor child under section
5747.37 of the Revised Code; (17) The credit for purchases of lights and reflectors under
section
5747.38 of the Revised Code; (18)
The job retention credit under division (B) of section
5747.058 of the Revised Code; (19) The credit for manufacturing investments under
section
5747.051 of the Revised Code; (20) The credit for purchases of new manufacturing
machinery
and equipment
under section 5747.26 or section 5747.261
of the
Revised Code; (21) The second credit for purchases of new
manufacturing
machinery and
equipment and the credit for using
Ohio coal under
section 5747.31 of the
Revised Code; (22) The job training credit under section 5747.39 of
the
Revised Code;
(23) The enterprise zone credit under section 5709.66 of
the
Revised Code; (24) The credit for the eligible costs associated with a
voluntary action
under section 5747.32 of the Revised Code; (25) The credit
for employers that establish on-site
child
day-care centers under section
5747.35 of the Revised Code; (26)
The ethanol plant investment credit under section
5747.75 of the Revised Code; (27) The credit for purchases of qualifying grape
production
property under section 5747.28 of the Revised Code; (28) The export sales credit under section 5747.057 of
the
Revised Code; (29) The credit for research and development and
technology
transfer investors under section 5747.33 of the Revised
Code; (30) The research and development credit under section 5747.331 of the Revised Code; (31) The enterprise zone credits under
section 5709.65
of
the Revised Code; (31)(32) The refundable jobs creation credit
under
division
(A)
of section
5747.058 of the Revised Code;
(32)(33) The refundable credit for taxes paid by a
qualifying
entity granted under section 5747.059 of the Revised
Code;
(33)(34) The refundable credits for taxes paid by a
qualifying
pass-through
entity granted under division (J) of
section 5747.08
of the Revised Code;
(34)(35) The refundable credit for tax withheld under division
(B)(1) of section 5747.062 of the Revised Code.
(B) For any credit, except the refundable credits enumerated
in
this
section
and
the
credit granted under division
(I) of
section
5747.08 of
the
Revised Code, the amount of the credit
for
a
taxable year
shall
not
exceed the tax due after allowing for any
other credit
that
precedes it in the order required under this
section. Any
excess
amount of a particular credit may be carried
forward if
authorized
under the section creating that credit.
Nothing in this
chapter
shall be construed to allow a taxpayer to
claim, directly
or
indirectly, a
credit more than once for a
taxable year.
Section 2. That existing sections 122.151, 122.152, 122.154, 166.01, 166.02, 166.08, 166.11, 166.13, 166.14, 166.16, 5733.98, and 5747.98 of the Revised Code are hereby repealed.
Section 3. Sections 5733.352 and 5747.331 of the Revised Code, as enacted by this act, apply to tax years beginning on and after January 1, 2003.
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