To enact sections 9.58, 9.581, 9.582, 9.583, 9.584, 9.585, 9.586, and 9.587 of the Revised Code relative to the financing of capital improvement projects in this state by another state or a political subdivision of another state.

Section 1. That sections 9.58, 9.581, 9.582, 9.583, 9.584, 9.585, 9.586, and 9.587 of the Revised Code be enacted to read as follows:

Sec. 9.58. (A) As used in sections 9.58 to 9.587 of the Revised Code:

(1) "Eligible project" means any capital improvement project located in this state that is designed to enhance, aid, provide, or promote transportation, economic development, housing, health care, recreation, education, government operations, culture, research, or purposes or activities authorized by Section 13 or 16 of Article VIII, Ohio Constitution.

(2) "Foreign entity" means a state other than this state, or a political subdivision or governmental entity created by, or pursuant to the laws of, a state other than this state.

(3) "Governmental agency" means a department, division, or other unit of state government of this state or a municipal corporation, county, township, port authority, transportation improvement district, water or sewer district, solid waste management district, school district or other public school, health district, park district, soil and water conservation district, water conservancy district, regional transit authority, airport authority, or other political subdivision or public corporation, district, agency, authority, or commission created pursuant to the laws of this state or pursuant to an interstate compact or agreement authorized under the laws of this state.

(B) A foreign entity shall not directly or indirectly provide financing for an eligible project, through bonded indebtedness or otherwise, unless it first obtains approval of the financing in accordance with sections 9.581 and 9.582 of the Revised Code.

Sec. 9.581.  (A) A foreign entity that intends to provide financing for an eligible project shall apply for approval of the proposed financing by submitting an application to one of the following entities, as appropriate:

(1) If the project will be located within the territory of a port authority, the port authority;

(2) If the project will not be located within the territory of a port authority, but will be located within a municipal corporation, the municipal corporation;

(3) If the project will not be located within the territory of a port authority or a municipal corporation, the county within which the project will be located.

(B) The application submitted by a foreign entity shall provide the location of the project, a general description of the purpose and use of the project, and the name, address, and contact information of the project owner and the foreign entity. The application shall be accompanied by a letter of commitment executed by the foreign entity that describes the proposed financing terms for the project.

Sec. 9.582.  (A) The port authority, municipal corporation, or county shall approve an application received under section 9.581 of the Revised Code if both of the following apply:

(1) The proposed project is an eligible project.

(2) The port authority, municipal corporation, or county determines that it cannot or will not provide financing for the project on terms similar to or better than those described in the foreign entity's letter of commitment.

(B) Within forty-five days after receiving an application, the port authority, municipal corporation, or county shall provide notice to the foreign entity of its decision to approve or deny the application. If the port authority, municipal corporation, or county fails to notify the foreign entity of its approval or denial within that forty-five-day period, the application shall be considered approved.

(C) If an application is denied, the foreign entity may submit its application to the director of development services. The director may approve the financing notwithstanding a prior denial by the port authority, municipal corporation, or county.

Sec. 9.583.  The approval of an application under section 9.582 of the Revised Code shall not be considered an endorsement of the validity, sufficiency, or legality of the proposed financing. The port authority, municipal corporation, or county that approves an application or, in the case of an approval by the director of development services, the state, shall not incur any liability or continuing obligation for the proposed financing, and the financing shall not constitute a general obligation or debt, or a pledge of the general credit, of the port authority, municipal corporation, county, or state.

Sec. 9.584.  (A) The approval of an application under section 9.582 of the Revised Code is in addition to, and a condition of, any other public approval requirement related to the financing of an eligible project, including any approval authorized or contemplated by section 9.97 of the Revised Code.

(B) If an application for the financing of an eligible project has not been approved under section 9.582 of the Revised Code, any public approval authorized or contemplated by section 9.97 of the Revised Code for the financing of the project shall not be given. Any public approval given in violation of division (B) of this section is void.

Sec. 9.585.  A governmental agency shall not directly or indirectly utilize a foreign entity to provide financing for an eligible project, through the issuance of bonded indebtedness or otherwise, unless such financing of the project is approved under section 9.582 of the Revised Code. Any financing agreement entered into in violation of this section is void.

Sec. 9.586.  (A) If a foreign entity provides financing for an eligible project without applying to the appropriate port authority, municipal corporation, or county for approval as required by section 9.581 of the Revised Code, the foreign entity shall pay to the port authority, municipal corporation, or county an amount equal to seventy-five per cent of all fees charged by the foreign entity to provide the financing, as and when those fees accrue, or, if greater in the aggregate, an amount equal to all fees the port authority, municipal corporation, or county would have charged to provide the financing based on a predetermined fee schedule, as and when those fees would become due under that schedule. Any governmental agency or other person benefited by or participating in the financing provided by the foreign entity shall be jointly and severally liable with the foreign entity to the port authority, municipal corporation, or county for the fees.

(B) If a foreign entity provides financing for an eligible project despite its application being denied under section 9.582 of the Revised Code, the foreign entity shall pay to the appropriate port authority, municipal corporation, or county an amount equal to seventy-five per cent of all fees charged by the foreign entity to provide the financing, as and when those fees accrue, or, if greater in the aggregate, an amount equal to all fees the port authority, municipal corporation, or county would have charged to provide the financing based on a predetermined fee schedule, as and when those fees would become due under that schedule. Any governmental agency or other person benefited by or participating in the financing provided by the foreign entity shall be jointly and severally liable with the foreign entity to the port authority, municipal corporation, or county for the fees.

Sec. 9.587.  If a foreign entity provides financing for an eligible project without applying to the appropriate port authority, municipal corporation, or county as required by section 9.581 of the Revised Code, or if a foreign entity provides financing for an eligible project despite its application being denied under section 9.582 of the Revised Code, the director of development services or the appropriate port authority, municipal corporation, or county may bring an action for injunctive relief pursuant to Chapter 2727. of the Revised Code against the foreign entity. Upon proof by clear and convincing evidence of a violation of section 9.58 of the Revised Code, the port authority, municipal corporation, or county shall be entitled to such injunctive relief. Any injunction granted pursuant to this section shall have statewide effect.