130th Ohio General Assembly
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Sub. H. B. No. 371  As Enrolled
(129th General Assembly)
(Substitute House Bill Number 371)



AN ACT
To amend sections 189.01, 189.03, 189.04, 189.05, 189.06, 189.07, and 189.08 of the Revised Code and to amend Sections 261.10 and 261.20.93 of Am. Sub. H.B. 153 of the 129th General Assembly regarding the Local Government Innovation Program and to make an appropriation.

Be it enacted by the General Assembly of the State of Ohio:

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

Sec. 189.01.  As used in sections 189.01 to 189.09 of the Revised Code, "political subdivision" means a municipal corporation, township, county, school district, or other body corporate and politic responsible for governmental activities in a geographic area smaller than that of the state. "Political subdivision" includes a county hospital commission appointed under section 339.14 of the Revised Code, board of hospital commissioners appointed for a municipal hospital under section 749.04 of the Revised Code, board of hospital trustees appointed for a municipal hospital under section 749.22 of the Revised Code, regional planning commission created pursuant to section 713.21 of the Revised Code, county planning commission created pursuant to section 713.22 of the Revised Code, joint planning council created pursuant to section 713.231 of the Revised Code, interstate regional planning commission created pursuant to section 713.30 of the Revised Code, port authority created pursuant to section 4582.02 or 4582.26 of the Revised Code or in existence on December 16, 1964, regional council established by political subdivisions pursuant to Chapter 167. of the Revised Code, emergency planning district and joint emergency planning district designated under section 3750.03 of the Revised Code, joint emergency medical services district created pursuant to section 307.052 of the Revised Code, fire and ambulance district created pursuant to section 505.375 of the Revised Code, joint interstate emergency planning district established by an agreement entered into under section 3750.03 of the Revised Code, county solid waste management district and joint solid waste management district established under section 343.01 or 343.012 of the Revised Code, community school established under Chapter 3314. of the Revised Code, the county or counties served by a community-based correctional facility and program or district community-based correctional facility and program established and operated under sections 2301.51 to 2301.58 of the Revised Code, a community-based correctional facility and program or district community-based correctional facility and program that is so established and operated, and the facility governing board of a community-based correctional facility and program or district community-based correctional facility and program that is so established and operated has the same meaning as in section 2744.01 of the Revised Code.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(4) The percentage of local matching funds available;

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

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

(7) Whether the proposal is to implement performance audit or other audit recommendations under section 117.462 Chapter 117. of the Revised Code;

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

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

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

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

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

(1) At least thirty per cent to political subdivisions that are not counties and have a population of less than 50,000 20,000 residents as determined in the decennial census conducted in 2010 or counties with a population of less than 130,000 235,000 residents as determined in the decennial census conducted in 2010;

(2) At least thirty per cent to political subdivisions that are not counties and have a population of 50,000 20,000 residents or more as determined in the decennial census conducted in 2010 or counties with a population of 130,000 235,000 residents or more as determined in the decennial census conducted in 2010.

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

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

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

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

Sec. 261.10. DEV DEPARTMENT OF DEVELOPMENT

General Revenue Fund

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

General Services Fund Group

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

Federal Special Revenue Fund Group

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

State Special Revenue Fund Group

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

Facilities Establishment Fund Group

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

Clean Ohio Revitalization Fund

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

Third Frontier Research & Development Fund Group

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

Job Ready Site Development Fund Group

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

Tobacco Master Settlement Agreement Fund Group

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

Sec. 261.20.93. LOCAL GOVERNMENT INNOVATION FUND

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

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

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

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