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(128th General Assembly)
(Amended Substitute House Joint Resolution Number 12)
JOINT RESOLUTION
Proposing to amend Section 2p of Article VIII of the
Constitution of the State of Ohio to permit the
issuance of additional general obligation bonds to
fund research and development.
Be it resolved by the General Assembly of the State of Ohio,
three-fifths of the members elected to each house concurring
herein, that there shall be submitted to the electors of the
state, in the manner prescribed by law at the special election to
be held on May 4, 2010, a proposal to amend Section 2p of Article
VIII of the Constitution of the State of Ohio to read as follows:
ARTICLE VIII.
Section 2p. (A) It is determined and confirmed that the
development purposes referred to in this division, and provisions
for them, are proper public purposes of the state and local
governmental entities and are necessary and appropriate means to
create and preserve jobs and enhance employment and educational
opportunities; to improve the quality of life and the general and
economic well-being of all the people and businesses in all areas
of this state, including economically disadvantaged businesses and
individuals; and to preserve and expand the public capital
infrastructure; all to better ensure the public health, safety,
and welfare. Those purposes are:
(1) Public infrastructure capital improvements, which shall
be limited to roads and bridges, waste water treatment systems,
water supply systems, solid waste disposal facilities, and storm
water and sanitary collection, storage, and treatment facilities,
including real property, interests in real property, facilities,
and equipment related to or incidental thereto, and shall include,
without limitation, the cost of acquisition, construction,
reconstruction, expansion, improvement, planning, and equipping;
(2) Research and development in support of Ohio industry,
commerce, and business (hereinafter referred to as "research and
development purposes"), which shall include, without limitation,
research and product innovation, development, and
commercialization through efforts by and collaboration among Ohio
business and industry, state and local public entities and
agencies, public and private education institutions, or research
organizations and institutions, all as may be further provided for
by state or local law, but excluding purposes provided for in
Section 15 of Article VIII, Ohio Constitution; and
(3) Development of sites and facilities in Ohio for and in
support of industry, commerce, distribution, and research and
development purposes.
(B) The General Assembly may provide by law, in accordance
with but subject to the limitations of this section, for the
issuance of general obligation bonds and other obligations of the
state for the purpose of financing or assisting in the financing
of the cost of projects implementing those purposes.
(1) Not more than one billion three hundred fifty million
dollars principal amount of state general obligations may be
issued under this section for public infrastructure capital
improvements. Not more than one hundred twenty million dollars
principal amount of those obligations may be issued in each of the
first five fiscal years of issuance and not more than one hundred
fifty million dollars principal amount of those obligations may be
issued in each of the next five fiscal years of issuance, plus in
each case the principal amount of those obligations that in any
prior fiscal year could have been but were not issued within those
fiscal year limits. No infrastructure obligations may be issued
pursuant to this division and division (C) of this section until
at least one billion one hundred ninety-nine million five hundred
thousand dollars aggregate principal amount of state
infrastructure obligations have been issued pursuant to Section 2m
of Article VIII, Ohio Constitution.
(2) Not more than five one billion two hundred million
dollars principal amount of state general obligations may be
issued under this section for research and development purposes.
Not more than
one four hundred fifty million dollars principal
amount of those obligations may be issued in each of the first
three fiscal years of issuance total from fiscal years 2006
through 2011, not more than two hundred twenty-five million
dollars principal amount of those obligations may be issued in the
next fiscal year of issuance, and not more than fifty one hundred
seventy-five million dollars principal amount of those obligations
may be issued in any other fiscal year, plus in each case the
principal amount of those obligations that in any prior fiscal
year could have been but were not issued.
(3) Not more than one hundred fifty million dollars principal
amount of state general obligations may be issued under this
section for development of sites and facilities for industry,
commerce, distribution, and research and development purposes. Not
more than thirty million dollars principal amount of those
obligations may be issued in each of the first three fiscal years
of issuance, and not more than fifteen million dollars principal
amount of those obligations may be issued in any other fiscal
year, plus in each case the principal amount of those obligations
that in any prior fiscal year could have been but were not issued.
(C) Each issue of state general obligations for public
infrastructure capital improvements or development of sites and
facilities shall mature in not more than thirty years from the
date of issuance, and each issue of state general obligations for
research and development purposes shall mature in not more than
twenty years from the date of issuance; or, if issued to retire or
refund other obligations, within that number of years from the
date the debt being retired or refunded was originally issued. If
state general obligations are issued as notes in anticipation of
the issuance of bonds, provision shall be made by law for the
establishment and maintenance, during the period in which the
notes are outstanding, of a special fund or funds into which shall
be paid, from the sources authorized for the payment of such
bonds, the amount that would have been sufficient, if bonds
maturing during the permitted period of years had been issued
without such prior issuance of notes, to pay the principal that
would have been payable on such bonds during such period. Such
fund or funds shall be used solely for the payment of principal of
such notes or bonds in anticipation of which such notes have been
issued. Notwithstanding anything to the contrary in Section 2k or
2m of Article VIII, obligations issued under this section or
Section 2k or 2m to retire or refund obligations previously issued
under this section or Section 2k or 2m shall not be counted
against the fiscal year or total issuance limitations provided in
this section or Section 2k or 2m, as applicable.
The obligations issued under this division and division (B)
of this section are general obligations of the state. The full
faith and credit, revenue, and taxing power of the state shall be
pledged to the payment of the principal of and premium and
interest and other accreted amounts on outstanding obligations as
they become due (hereinafter called debt service), and bond
retirement fund provisions shall be made for payment of that debt
service. Provision shall be made by law for the sufficiency and
appropriation, for purposes of paying debt service, of excises,
taxes, and revenues so pledged or committed to debt service, and
for covenants to continue the levy, collection, and application of
sufficient excises, taxes, and revenues to the extent needed for
that purpose. Notwithstanding Section 22 of Article II, Ohio
Constitution, no further act of appropriation shall be necessary
for that purpose. The obligations and the provision for the
payment of debt service, and repayment by governmental entities of
any loans made under this section, are not subject to Sections 5,
6, and 11 of Article XII, Ohio Constitution. Moneys referred to in
Section 5a of Article XII, Ohio Constitution may not be pledged or
used for the payment of that debt service. Debt service on
obligations issued for research and development purposes and for
development of sites and facilities shall not be included in the
calculation of total debt service for purposes of division (A) of
Section 17 of Article VIII, Ohio Constitution.
(D)(1) The state may participate in any public infrastructure
capital improvement under this section with municipal
corporations, counties, townships, or other governmental entities
as designated by law, or any one or more of them. Such
participation may be by grants, loans, or contributions to them
for any such capital improvements. The entire proceeds of the
infrastructure obligations shall be used for public infrastructure
capital improvements of municipal corporations, counties,
townships, and other governmental entities, except to the extent
that the General Assembly provides by law that the state may
reasonably be compensated from such moneys for planning, financial
management, or administrative services performed in relation to
the issuance of infrastructure obligations.
(2)(a) Implementation of the research and development
purposes includes supporting any and all related matters and
activities, including: attracting researchers and research teams
by endowing research chairs or otherwise; activities to develop
and commercialize products and processes; intellectual property
matters such as copyrights and patents; property interests,
including time sharing arrangements; and financial rights and
matters such as royalties, licensing, and other financial gain or
sharing resulting from research and development purposes. State
and local public moneys, including the proceeds of bonds, notes,
and other obligations, may be used to pay costs of or in support
of or related to these research and development purposes,
including, without limitation, capital formation, direct operating
costs, costs of research and facilities, including interests in
real property therefor, and support for public and private
institutions of higher education, research organizations or
institutions, and private sector entities. The exercise of these
powers by the state and state agencies, including state-supported
and state-assisted institutions of higher education, and local
public entities and agencies, may be jointly or in coordination
with each other, with researchers or research organizations and
institutions, with private institutions of higher education, with
individuals, or with private sector entities. State and local
public participation may be in such manner as the entity or agency
determines, including by any one or a combination of grants, loans
including loans to lenders or the purchase of loans, subsidies,
contributions, advances, or guarantees, or by direct investments
of or payment or reimbursement from available moneys, or by
providing staffing or other support, including computer or other
technology capacity, or equipment or facilities, including
interests in real property therefor, and either alone or jointly,
in collaborative or cooperative ventures, with other public
agencies and private sector entities including not for profit
entities. In addition to other state-level monetary participation
as referred to in this section or otherwise, state-supported and
state-assisted institutions of higher education may, as authorized
from time to time by the General Assembly, issue obligations to
pay costs of participating in and implementing research and
development purposes. In addition to the other obligations
authorized in or pursuant to this section, the General Assembly
also may authorize the state and state agencies and local public
entities and agencies, and corporations not for profit designated
by any of them as such agencies or instrumentalities, to issue
obligations to borrow and loan or otherwise provide moneys for
research and development purposes, including, but not limited to,
obligations for which moneys raised by taxation shall not be
obligated or pledged for the payment of debt service and which are
therefore not subject to Sections 5, 6, and 11 of Article XII,
Ohio Constitution.
(b) Implementation of the research and development purposes
shall include utilization of independent reviewers to review the
merits of proposed research and development projects and to make
recommendations concerning which proposed projects should be
awarded support from the proceeds of the sale of obligations under
this section. Prior to the utilization of an independent reviewer,
the state agency proposing to award the support for a project
shall provide the name and other descriptive information regarding
the independent reviewer to the Governor, the President and
Minority Leader of the Senate, and the Speaker and Minority Leader
of the House of Representatives. If the recommendations of an
independent reviewer with respect to a proposed project are not
adopted by the state agency proposing to award the support for the
project, the agency shall notify the Governor, the President and
Minority Leader of the Senate, and the Speaker and Minority Leader
of the House of Representatives of that fact and explain the
reasons for not adopting the recommendations.
(c) From the proceeds of the sale of obligations issued under
this section, not more than four hundred fifty million dollars may
be awarded, promised, or otherwise committed in total for research
and development purposes from fiscal years 2006 through 2011, not
more than two hundred twenty-five million dollars may be awarded,
promised, or otherwise committed for research and development
purposes in fiscal year 2012, and not more than one hundred
seventy-five million dollars may be awarded, promised, or
otherwise committed for research and development purposes in any
other fiscal year beginning in fiscal year 2013 and thereafter,
plus in each case the amount of the proceeds that in any prior
fiscal year could have been but were not awarded.
(3) Development of sites and facilities for and in support of
industry, commerce, distribution, and research and development
purposes includes acquisition of real estate and interests in real
estate, site preparation including any necessary remediation and
cleanup, constructing and improving facilities, and providing
public infrastructure capital improvements and other
transportation and communications infrastructure improvements for
and in support of the use of those sites and facilities for those
purposes. State and local public moneys, including the proceeds of
bonds, notes, and other obligations, may be used to pay costs of
those purposes. The exercise of these powers by the state and
state agencies and local public entities and agencies, may be
jointly or in coordination with each other, and with individuals
or private sector business entities. State and local public
participation may be in such manner as the entity or agency
determines, including by any one or a combination of grants, loans
including loans to lenders or the purchase of loans, subsidies,
contributions, advances, or guarantees, or by direct investments
of or payment or reimbursement from available moneys. In addition
to other state-level monetary participation as referred to in this
section or otherwise, state-supported and state-assisted
institutions of higher education, and local public entities and
agencies may, as authorized from time to time by the General
Assembly, issue obligations to pay costs of participating in and
implementing the development of sites and facilities.
(E) Obligations issued under authority of this section for
research and development purposes and site and facility
development purposes, provisions for the payment of debt service
on them, the purposes and uses to which and the manner in which
the proceeds of those obligations or moneys from other sources are
to or may be applied, and other implementation of those
development purposes as referred to in this section, are not
subject to Sections 4 and 6 of Article VIII, Ohio Constitution.
Obligations issued under authority of this section, the transfer
thereof, and the interest, interest equivalent, and other income
and accreted amounts therefrom, including any profit made on the
sale, exchange, or other disposition thereof, shall at all times
be free from taxation within the state.
(F) This section shall otherwise be implemented in the manner
and to the extent provided by law by the General Assembly,
including provision for the procedure for incurring and issuing
obligations, separately or in combination with other obligations,
and refunding, retiring, and evidencing obligations; provision for
ensuring the accountability of all state funding provided for the
development purposes referred to in division (A) of this section;
provision for restricting or limiting the taking of private
property under Section 19 of Article I for disposition to private
sector entities for the purposes identified in divisions (A)(2)
and (3) of this section or restricting the disposition of that
property to private sector entities or individuals; and provision
for the implementation of the development purposes referred to in
division (A) of this section to benefit people and businesses
otherwise qualified for receipt of funding for the development
purposes referred to in division (A) of this section, including
economically disadvantaged businesses and individuals in all areas
of this state, including by the use to the extent practicable of
Ohio products, materials, services, and labor.
(G) The powers and authority granted or confirmed by and
under, and the determinations in, this section are independent of,
in addition to, and not in derogation of or a limitation on,
powers, authority, determinations, or confirmations under laws or
under other provisions of the Ohio Constitution including, without
limitation, Section 7 of Article I, Section 5 of Article VI,
Sections 2i, 2n, 2o, 13, and 15 of Article VIII, Article X, and
Section 3 of Article XVIII, and do not impair any previously
adopted provisions of the Ohio Constitution or any law previously
enacted by the General Assembly or by a local public agency.
EFFECTIVE DATE AND REPEAL
If adopted by a majority of the electors voting on this
proposal, the proposal shall take effect immediately, and existing
Section 2p of Article VIII of the Constitution of the State of
Ohio shall be repealed from that effective date.
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