As Introduced

136th General Assembly

Regular Session H. B. No. 292

2025-2026

To enact sections 113.052, 122.98, and 122.981 of the Revised Code to establish the Ohio Defense Commission.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 113.052, 122.98, and 122.981 of the Revised Code be enacted to read as follows:

Sec. 113.052. Any revenue from interest earned on bonds of the State of Israel, whenever such bonds exist in the state treasury, shall be deposited, by the treasurer of state, into the Ohio defense fund established in section 122.98 of the Revised Code.

Sec. 122.98. (A) The Ohio defense commission is created. The commission shall consider strategies to promote the defense industry in this state.

(B) The duties of the Ohio defense commission include the following:

(1) Administering the defense industry expansion program under section 122.981 of the Revised Code;

(2) Administering and approving the expenditure of money from the Ohio defense fund in compliance with this section;

(3) Studying and developing comprehensive strategies to promote the defense industry throughout the state;

(4) Encouraging communication and resource-sharing among individuals and organizations involved in the defense industry, including business, the military, and academia;

(5) Preparing the state for favorable outcomes related to federal military base realignment and closure processes;

(6) Recruiting international businesses to invest in the state for defense industry purposes;

(7) Promoting research, development, and manufacturing of technology to counter unmanned aerial vehicle systems in the state.

(1) The chief investment officer of the nonprofit corporation formed under section 187.01 of the Revised Code, or the officer's designee, as a nonvoting member;

(2) One member representing industries that support the military or federal sector of this state as a nonvoting member, appointed by the governor;

(3) One member to represent the Ohio chamber of commerce, appointed by the governor;

(4) One member of the senate, appointed by the president of the senate;

(5) One member of the house of representatives, appointed by the speaker of the house of representatives;

(6) One member from the office of the governor as a nonvoting member, appointed by the governor.

(D) The commission members appointed under divisions (C)(2) and (C)(3) of this section shall be paid the rate established pursuant to division (J) of section 124.15 of the Revised Code. All other members of the commission are not entitled to compensation. All commission members are entitled to their actual and necessary expenses incurred in the performance of their duties as such members, payable from the appropriations for the commission.

(E) Commission members who are appointed by the governor shall serve two year terms. The legislative members of the commission shall serve on the commission for the duration of the member's legislative term. Members may be reappointed. A member may be removed from service on the commission by the member's appointing authority. Vacancies shall be filled in the manner of the original appointment.

(F) The member of the commission who is a member of the house of representatives shall call the first meeting of the commission, at which members of the commission shall select a chairperson. The commission shall meet at least once per month.

(G) The commission may consult with members of the Ohio congressional delegation and may invite members of the delegation to speak before the commission or to participate in commission meetings. Members of congress who participate in commission meetings serve in a nonvoting capacity.

(H) The commission shall compile an annual report of its activities, findings, and recommendations and shall furnish a copy of the report to the governor, president of the senate, and speaker of the house of representatives not later than the thirty-first day of December of each year.

(I) The department of development shall provide office space and facilities for the commission. Administrative costs associated with the operation of the commission or with any program or activity administered by the commission shall be paid from amounts appropriated to the commission or to the department for such purposes.

(J)(1) The Ohio defense fund is created in the state treasury. The fund shall consist of money appropriated to it by the general assembly, revenue from interest earned on bonds under section 113.052 of the Revised Code, all grants, gifts, and contributions made to the director of development and designated for purposes of the Ohio defense commission, and investment earnings on money in the fund, which shall be credited to the fund.

(2) Approximately one-third of the money in the fund shall be expended to support each of the following:

(a) The development and construction of facilities including, but not limited to, sensitive compartmented information facilities (SCIFs), for processing sensitive or classified information;

(b) The development of defense related government contracts for small businesses;

(K) The Ohio defense commission shall establish a defense business incubator to support startup and early-stage companies with research and technology. The incubator facility shall include a laboratory and workspaces for academic, government, military, and private sector use. The facility also shall include an enclosed area to serve as a sensitive compartmented information facility (SCIF).

Sec. 122.981. (A) The Ohio defense commission shall administer a defense industry expansion program under which the commission may make grants to support economic development related to the defense industry.

(B) The commission shall adopt rules in accordance with Chapter 119. of the Revised Code that are necessary for the administration of the defense industry expansion program. The rules shall establish all of the following:

(1) An application form and procedures governing the process for applying to receive a grant under the program;

(2) The maximum grant amount allowed under the program, and the maximum portion of the total estimated project cost that shall be funded by the grant;

(3) Any other procedures, criteria, or grant terms that the commission determines necessary to administer the program.