As Introduced

136th General Assembly

Regular Session S. B. No. 372

2025-2026

To enact section 126.17 of the Revised Code to require the Director of Budget and Management to establish and administer a centralized reporting system for financial status reports regarding public money provided through a grant or loan program, or through an economic development program, a workforce development program, or a public assistance program.

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

Section 1. That section 126.17 of the Revised Code be enacted to read as follows:

Sec. 126.17. (A) As used in this section:

"Direct cost" means a cost that can be identified specifically with a particular final cost objective or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

"Indirect cost" means a cost that is not readily identified with a particular project, function or activity, but is necessary for the general operation of the organization, and a cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives or an intermediate cost objective.

"Public money" has the same meaning as in section 117.01 of the Revised Code.

"Recipient" means a nongovernmental entity that receives public money from the state in the form of a grant, loan, or loan guarantee, or a contract with the state or a state agency when the contract is entered in furtherance of an economic development program, workforce development program, or public assistance program. "Recipient" does not include an individual who receives state assistance that is not related to the individual's business.

(B) The director of budget and management shall establish and administer a centralized reporting system to assist the state in oversight of public funds, in evaluation of the effectiveness of grant and loan programs, and the value of state contracts. The system shall be operational not later than one year after the effective date of this section. The centralized reporting system shall include information regarding public money that has been provided to a recipient through a grant or loan program, or through a contract when the contract is entered in furtherance of an economic development program, workforce development program, or public assistance program.

(C) A recipient shall comply with the reporting requirements established under this section, with respect to each advance of public money that is received on or after the date that is one year after the effective date of this section. A recipient annually shall provide to the director, not later than the first day of February, a report that provides all of the following:

(1) An accounting of the expenditure of public money by a recipient, which shall separately identify any amount expended by vendor and items purchased to directly benefit the public, and the amount of indirect costs;

(2) A project progress report;

(3) Confirmation that the recipient is in compliance with any applicable laws or regulations.

(D) A state agency shall inform a recipient of the requirements of this section, and shall provide the name and contact information of each recipient, the amount of public money advanced to the recipient, and other project-identifying information to the director of budget and management.

(E) A recipient shall provide the awarding state agency or its designee with access to the recipient's facilities during normal business hours for purposes of conducting a compliance review.

(F) No person shall knowingly fail to file a report required by this section. Whoever violates this division is guilty of a minor misdemeanor.

(G) No person shall knowingly provide falsified information in a report submitted under this section. Whoever violates this division shall be fined one hundred fifty dollars on the first offense and one thousand dollars on each subsequent offense.