Establish the Ohio Defense and Space Commission

As Introduced

136th
General Assembly

Regular
Session
S. B. No. 362

2025-2026

Senator Reineke

To

amend
section 121.22 and to
enact
sections 113.052,
122.952,
122.953
,
and
122.954

of the Revised Code
to
establish the Ohio Defense and Space Commission.

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

Section
1.
That

section
121.22 be amended and
sections
113.052,
122.952,
122.953
,
and
122.954

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 122.952 of the Revised Code.

Sec.
121.22.
(A)
This section shall be liberally construed to require public officials
to take official action and to conduct all deliberations upon
official business only in open meetings unless the subject matter is
specifically excepted by law.

(B)
As used in this section:

(1)
"Public body" means any of the following:

(a)
Any board, commission, committee, council, or similar decision-making
body of a state agency, institution, or authority, and any
legislative authority or board, commission, committee, council,
agency, authority, or similar decision-making body of any county,
township, municipal corporation, school district, or other political
subdivision or local public institution;

(b)
Any committee or subcommittee of a body described in division
(B)(1)(a) of this section;

(c)
A court of jurisdiction of a sanitary district organized wholly for
the purpose of providing a water supply for domestic, municipal, and
public use when meeting for the purpose of the appointment, removal,
or reappointment of a member of the board of directors of such a
district pursuant to section 6115.10 of the Revised Code, if
applicable, or for any other matter related to such a district other
than litigation involving the district. As used in division (B)(1)(c)
of this section, "court of jurisdiction" has the same
meaning as "court" in section 6115.01 of the Revised Code.

(2)
"Meeting" means any prearranged discussion of the public
business of the public body by a majority of its members.

(3)
"Regulated individual" means either of the following:

(a)
A student in a state or local public educational institution;

(b)
A person who is, voluntarily or involuntarily, an inmate, patient, or
resident of a state or local institution because of criminal
behavior, mental illness, an intellectual disability, disease,
disability, age, or other condition requiring custodial care.

(4)
"Public office" has the same meaning as in section 149.011
of the Revised Code.

(C)
All meetings of any public body are declared to be public meetings
open to the public at all times. A member of a public body shall be
present in person at a meeting open to the public to be considered
present or to vote at the meeting and for purposes of determining
whether a quorum is present at the meeting.

The
minutes of a regular or special meeting of any public body shall be
promptly prepared, filed, and maintained and shall be open to public
inspection. The minutes need only reflect the general subject matter
of discussions in executive sessions authorized under division (G) or
(J) of this section.

(D)
This section does not apply to any of the following:

(1)
A grand jury;

(2)
An audit conference conducted by the auditor of state or independent
certified public accountants with officials of the public office that
is the subject of the audit;

(3)
The adult parole authority when its hearings are conducted at a
correctional institution for the sole purpose of interviewing inmates
to determine parole or pardon and the department of rehabilitation
and correction when its hearings are conducted at a correctional
institution for the sole purpose of making determinations under
section 2967.271 of the Revised Code regarding the release or
maintained incarceration of an offender to whom that section applies;

(4)
The organized crime investigations commission established under
section 177.01 of the Revised Code;

(5)
Meetings of a child fatality review board established under section
307.621 of the Revised Code, meetings related to a review conducted
pursuant to guidelines established by the director of health under
section 3701.70 of the Revised Code, and meetings conducted pursuant
to sections 5153.171 to 5153.173 of the Revised Code;

(6)
The state medical board when determining whether to suspend a license
or certificate without a prior hearing pursuant to division (G) of
either section 4730.25 or 4731.22 of the Revised Code;

(7)
The board of nursing when determining whether to suspend a license or
certificate without a prior hearing pursuant to division (B) of
section 4723.281 of the Revised Code;

(8)
The state board of pharmacy when determining whether to do either of
the following:

(a)
Suspend a license, certification, or registration without a prior
hearing, including during meetings conducted by telephone conference,
pursuant to Chapters 3719., 3796., 4729., and 4752. of the Revised
Code and rules adopted thereunder; or

(b)
Restrict a person from obtaining further information from the drug
database established in section 4729.75 of the Revised Code without a
prior hearing pursuant to division (C) of section 4729.86 of the
Revised Code.

(9)
The state chiropractic board when determining whether to suspend a
license without a hearing pursuant to section 4734.37 of the Revised
Code;

(10)
The executive committee of the emergency response commission when
determining whether to issue an enforcement order or request that a
civil action, civil penalty action, or criminal action be brought to
enforce Chapter 3750. of the Revised Code;

(11)
The board of directors of the nonprofit corporation formed under
section 187.01 of the Revised Code or any committee thereof, and the
board of directors of any subsidiary of that corporation or a
committee thereof;

(12)
An audit conference conducted by the audit staff of the department of
job and family services with officials of the public office that is
the subject of that audit under section 5101.37 of the Revised Code;

(13)
The occupational therapy section of the occupational therapy,
physical therapy, and athletic trainers board when determining
whether to suspend a license without a hearing pursuant to division
(E) of section 4755.11 of the Revised Code;

(14)
The physical therapy section of the occupational therapy, physical
therapy, and athletic trainers board when determining whether to
suspend a license without a hearing pursuant to division (F) of
section 4755.47 of the Revised Code;

(15)
The athletic trainers section of the occupational therapy, physical
therapy, and athletic trainers board when determining whether to
suspend a license without a hearing pursuant to division (E) of
section 4755.64 of the Revised Code;

(16)
Meetings of the pregnancy-associated mortality review board
established under section 5180.27 of the Revised Code;

(17)
Meetings of a fetal-infant mortality review board established under
section 3707.71 of the Revised Code;

(18)
Meetings of a drug overdose fatality review committee described in
section 307.631 of the Revised Code;

(19)
Meetings of a suicide fatality review committee described in section
307.641 of the Revised Code;

(20)
Meetings of the officers, members, or directors of an existing
qualified nonprofit corporation that creates a special improvement
district under Chapter 1710. of the Revised Code, at which the public
business of the corporation pertaining to a purpose for which the
district is created is not discussed;

(21)
Meetings of a domestic violence fatality review board established
under section 307.651 of the Revised Code;

(22)
Any nonprofit agency that has received an endorsement under section
5101.315 of the Revised Code.

(E)
The controlling board, the tax credit authority, or the minority
development financing advisory board, when meeting to consider
granting assistance pursuant to Chapter 122. or 166. of the Revised
Code, in order to protect the interest of the applicant or the
possible investment of public funds, by unanimous vote of all board
or authority members present, may close the meeting during
consideration of the following information confidentially received by
the authority or board from the applicant:

(1)
Marketing plans;

(2)
Specific business strategy;

(3)
Production techniques and trade secrets;

(4)
Financial projections;

(5)
Personal financial statements of the applicant or members of the
applicant's immediate family, including, but not limited to, tax
records or other similar information not open to public inspection.

The
vote by the authority or board to accept or reject the application,
as well as all proceedings of the authority or board not subject to
this division, shall be open to the public and governed by this
section.

(F)
Every public body, by rule, shall establish a reasonable method
whereby any person may determine the time and place of all regularly
scheduled meetings and the time, place, and purpose of all special
meetings. A public body shall not hold a special meeting unless it
gives at least twenty-four hours' advance notice to the news media
that have requested notification, except in the event of an emergency
requiring immediate official action. In the event of an emergency,
the member or members calling the meeting shall notify the news media
that have requested notification immediately of the time, place, and
purpose of the meeting.

The
rule shall provide that any person, upon request and payment of a
reasonable fee, may obtain reasonable advance notification of all
meetings at which any specific type of public business is to be
discussed. Provisions for advance notification may include, but are
not limited to, mailing the agenda of meetings to all subscribers on
a mailing list or mailing notices in self-addressed, stamped
envelopes provided by the person.

(G)
Except as provided in divisions (G)(8) and (J) of this section, the
members of a public body may hold an executive session only after a
majority of a quorum of the public body determines, by a roll call
vote, to hold an executive session and only at a regular or special
meeting for the sole purpose of the consideration of any of the
following matters:

(1)
To consider the appointment, employment, dismissal, discipline,
promotion, demotion, or compensation of a public employee or
official, or the investigation of charges or complaints against a
public employee, official, licensee, or regulated individual, unless
the public employee, official, licensee, or regulated individual
requests a public hearing. Except as otherwise provided by law, no
public body shall hold an executive session for the discipline of an
elected official for conduct related to the performance of the
elected official's official duties or for the elected official's
removal from office. If a public body holds an executive session
pursuant to division (G)(1) of this section, the motion and vote to
hold that executive session shall state which one or more of the
approved purposes listed in division (G)(1) of this section are the
purposes for which the executive session is to be held, but need not
include the name of any person to be considered at the meeting.

(2)
To consider the purchase of property for public purposes, the sale of
property at competitive bidding, or the sale or other disposition of
unneeded, obsolete, or unfit-for-use property in accordance with
section 505.10 of the Revised Code, if premature disclosure of
information would give an unfair competitive or bargaining advantage
to a person whose personal, private interest is adverse to the
general public interest. No member of a public body shall use
division (G)(2) of this section as a subterfuge for providing covert
information to prospective buyers or sellers. A purchase or sale of
public property is void if the seller or buyer of the public property
has received covert information from a member of a public body that
has not been disclosed to the general public in sufficient time for
other prospective buyers and sellers to prepare and submit offers.

If
the minutes of the public body show that all meetings and
deliberations of the public body have been conducted in compliance
with this section, any instrument executed by the public body
purporting to convey, lease, or otherwise dispose of any right,
title, or interest in any public property shall be conclusively
presumed to have been executed in compliance with this section
insofar as title or other interest of any bona fide purchasers,
lessees, or transferees of the property is concerned.

(3)
Conferences with an attorney for the public body concerning disputes
involving the public body that are the subject of pending or imminent
court action;

(4)
Preparing for, conducting, or reviewing negotiations or bargaining
sessions with public employees concerning their compensation or other
terms and conditions of their employment;

(5)
Matters required to be kept confidential by federal law or
regulations or state statutes;

(6)
Details relative to the security arrangements and emergency response
protocols for a public body or a public office, if disclosure of the
matters discussed could reasonably be expected to jeopardize the
security of the public body or public office;

(7)
In the case of a county hospital operated pursuant to Chapter 339. of
the Revised Code, a joint township hospital operated pursuant to
Chapter 513. of the Revised Code, or a municipal hospital operated
pursuant to Chapter 749. of the Revised Code, to consider trade
secrets, as defined in section 1333.61 of the Revised Code;

(8)
To consider confidential information related to the marketing plans,
specific business strategy, production techniques, trade secrets, or
personal financial statements of an applicant for economic
development assistance, or to negotiations with other political
subdivisions respecting requests for economic development assistance,
provided that both of the following conditions apply:

(a)
The information is directly related to a request for economic
development assistance that is to be provided or administered under
any provision of Chapter 715., 725., 1724., or 1728. or sections

122.953,

701.07,
3735.67 to 3735.70, 5709.40 to 5709.43, 5709.61 to 5709.69, 5709.73
to 5709.75, or 5709.77 to 5709.81 of the Revised Code, or that
involves public infrastructure improvements or the extension of
utility services that are directly related to an economic development
project.

(b)
A unanimous quorum of the public body determines, by a roll call
vote, that the executive session is necessary to protect the
interests of the applicant or the possible investment or expenditure
of public funds to be made in connection with the economic
development project.

If
a public body holds an executive session to consider any of the
matters listed in divisions (G)(2) to (8) of this section, the motion
and vote to hold that executive session shall state which one or more
of the approved matters listed in those divisions are to be
considered at the executive session.

A
public body specified in division (B)(1)(c) of this section shall not
hold an executive session when meeting for the purposes specified in
that division.

(H)
A resolution, rule, or formal action of any kind is invalid unless
adopted in an open meeting of the public body. A resolution, rule, or
formal action adopted in an open meeting that results from
deliberations in a meeting not open to the public is invalid unless
the deliberations were for a purpose specifically authorized in
division (G) or (J) of this section and conducted at an executive
session held in compliance with this section. A resolution, rule, or
formal action adopted in an open meeting is invalid if the public
body that adopted the resolution, rule, or formal action violated
division (F) of this section.

(I)(1)
Any person may bring an action to enforce this section. An action
under division (I)(1) of this section shall be brought within two
years after the date of the alleged violation or threatened
violation. Upon proof of a violation or threatened violation of this
section in an action brought by any person, the court of common pleas
shall issue an injunction to compel the members of the public body to
comply with its provisions.

(2)(a)
If the court of common pleas issues an injunction pursuant to
division (I)(1) of this section, the court shall order the public
body that it enjoins to pay a civil forfeiture of five hundred
dollars to the party that sought the injunction and shall award to
that party all court costs and, subject to reduction as described in
division (I)(2) of this section, reasonable attorney's fees. The
court, in its discretion, may reduce an award of attorney's fees to
the party that sought the injunction or not award attorney's fees to
that party if the court determines both of the following:

(i)
That, based on the ordinary application of statutory law and case law
as it existed at the time of violation or threatened violation that
was the basis of the injunction, a well-informed public body
reasonably would believe that the public body was not violating or
threatening to violate this section;

(ii)
That a well-informed public body reasonably would believe that the
conduct or threatened conduct that was the basis of the injunction
would serve the public policy that underlies the authority that is
asserted as permitting that conduct or threatened conduct.

(b)
If the court of common pleas does not issue an injunction pursuant to
division (I)(1) of this section and the court determines at that time
that the bringing of the action was frivolous conduct, as defined in
division (A) of section 2323.51 of the Revised Code, the court shall
award to the public body all court costs and reasonable attorney's
fees, as determined by the court.

(3)
Irreparable harm and prejudice to the party that sought the
injunction shall be conclusively and irrebuttably presumed upon proof
of a violation or threatened violation of this section.

(4)
A member of a public body who knowingly violates an injunction issued
pursuant to division (I)(1) of this section may be removed from
office by an action brought in the court of common pleas for that
purpose by the prosecuting attorney or the attorney general.

(J)(1)
Pursuant to division (C) of section 5901.09 of the Revised Code, a
veterans service commission shall hold an executive session for one
or more of the following purposes unless an applicant requests a
public hearing:

(a)
Interviewing an applicant for financial assistance under sections
5901.01 to 5901.15 of the Revised Code;

(b)
Discussing applications, statements, and other documents described in
division (B) of section 5901.09 of the Revised Code;

(c)
Reviewing matters relating to an applicant's request for financial
assistance under sections 5901.01 to 5901.15 of the Revised Code.

(2)
A veterans service commission shall not exclude an applicant for,
recipient of, or former recipient of financial assistance under
sections 5901.01 to 5901.15 of the Revised Code, and shall not
exclude representatives selected by the applicant, recipient, or
former recipient, from a meeting that the commission conducts as an
executive session that pertains to the applicant's, recipient's, or
former recipient's application for financial assistance.

(3)
A veterans service commission shall vote on the grant or denial of
financial assistance under sections 5901.01 to 5901.15 of the Revised
Code only in an open meeting of the commission. The minutes of the
meeting shall indicate the name, address, and occupation of the
applicant, whether the assistance was granted or denied, the amount
of the assistance if assistance is granted, and the votes for and
against the granting of assistance.

Sec.
122.952.
(A)
The Ohio defense and space commission is created. The commission
shall consider strategies to promote the defense and aerospace
industries in this state.

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

(1)
Administering the defense industry expansion program under section
122.953 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 and aerospace industries throughout the state;

(4)
Encouraging communication and resource-sharing among individuals and
organizations involved in the defense and aerospace industries,
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 and aerospace industry purposes;

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

(8)
Considering policies intended to improve quality of life for service
members and veterans.

(C)
The Ohio defense and space commission shall consist of the following
members:

(1)
The adjutant general, to serve ex officio as a nonvoting member;

(2)
One member from the office of the governor, appointed by the
governor, to serve as a nonvoting member;

(3)
The chief investment officer of the nonprofit corporation formed
under section 187.01 of the Revised Code, or the officer's designee,
to serve as a nonvoting member;

(4)
One member to represent the Ohio chamber of commerce, appointed by
the governor, to serve as a nonvoting member;

(5)
Three members of the senate appointed by the president of the senate,
two of whom shall be of the majority party and one of whom shall be
of the minority party. The president of the senate shall consult with
the minority leader of the senate regarding the appointment of a
member of the minority party;

(6)
Three members of the house of representatives appointed by the
speaker of the house of representatives, two of whom shall be of the
majority party and one of whom shall be of the minority party. The
speaker of the house of representatives shall consult with the
minority leader of the house of representatives regarding the
appointment of a member of the minority party;

(7)
Seven individuals to represent various regions of the state,
appointed in accordance with division (D) of this section;

(8)
One member to represent the biotechnology sector, appointed by the
governor, to serve as a nonvoting member.

(D)
Seven individuals shall be appointed to the commission to
respectively represent each of the seven unique regions of this state
as identified by the nonprofit corporation formed under section
187.01 of the Revised Code. The president of the senate and the
speaker of the house of representatives each shall appoint three of
these individuals. The director of development shall appoint one of
these individuals. The appointing authorities shall draw lots, before
each appointing cycle, to determine the regions for which each shall
make an appointment.

(E)
The commission members 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.

(F)
Appointed commission members shall serve two year terms. Members of
the general assembly who are appointed to 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.

(G)
The speaker of the house of representatives and the president of the
senate each shall select a member of the commission, who is a member
of their respective chamber of the general assembly, to serve as
co-chairpersons. The commission shall meet at least once per month.

(H)
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.

(I)
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.

(J)
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 and space commission, and investment earnings on money in the
fund, which shall be credited to the fund.

Money
in the fund shall be expended, through a development grant agreement
under section 122.953 of the Revised Code, to support the development
and construction of facilities including, but not limited to,
sensitive compartmented information facilities (SCIFs), for
processing sensitive or classified information; the development of
defense related government contracts for small businesses; and for
advocating and matching of grant programs to promote state defense
military projects.

Sec.
122.953.
(A)
The Ohio defense and space commission shall administer a defense and
aerospace industries expansion program under which the commission may
make development grants to support economic development related to
the defense and aerospace industries.

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

(1)
A requirement that a development grant agreement be executed between
the Ohio defense and space commission and a grant recipient;

(2)
The minimum requirements for a development grant agreement;

(3)
An application form and procedures governing the process for applying
to receive a development grant under the program;

(4)
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;

(5)
That an executive session of the commission shall comply with
division (G) of section 121.22 of the Revised Code;

(6)
That a vote of the commission on whether to award a grant to a
specific applicant shall occur in a session open to the public;

(7)
Any other procedures, criteria, or grant terms that the commission
determines necessary to administer the program.

Sec.
122.954.
(A)
As used in this section, "grantee" means a recipient of
anything of value under a development grant agreement with the Ohio
defense and space commission under section 122.953 of the Revised
Code.

(B)
Ohio defense and space commission development grant funds shall only
be expended by the grantee to whom the grant was awarded, and all
development grant funds must be expended or obligated by a grantee in
accordance with the development grant agreement. Any development
grant funds not expended or obligated pursuant to the grant agreement
shall be returned to the commission. If the commission determines
that a grantee has violated any terms of the development grant
agreement, the commission may require the grantee to return any and
all development grant funds.

(C)
A final report accounting for all development grant funds received by
a grantee shall be submitted to the Ohio defense and space commission
not later than thirty days after all development grant funds have
been expended or obligated. All expenditures and disbursements of
development grant funds by a grantee shall be subject to generally
accepted accounting principles. Any equipment purchased with
development grant funds shall be retained by the grantee and used in
accordance with the terms of the grant award for the useful life of
the equipment.

(D)
At any time, the Ohio defense and space commission may require that
the grantee undergo an audit of the project administration and
implementation. Within ten days after a request by the commission, a
grantee shall supply original or verifiable copies of all receipts
and other appropriate documentation related to disposition of the
development grant funds and make available for onsite inspection by
the commission any and all records, books, documents and financial
reports upon reasonable notice. The grantee shall retain these
materials in the offices of the grantee for two years from the
acceptance of the project final report.

(E)
Failure to comply with any provision of the development grant
agreement may be considered a misappropriation of funds and shall be
investigated by the Ohio defense and space commission. A
misappropriation or failure to properly administer grant funds shall
result in forfeiture of unexpended grant funds. The grantee shall
repay any funds determined by the commission to have been
inappropriately expended.

Section
2.
That
existing section 121.22 of the Revised Code is hereby repealed.