Ohio Administrative Code Title 122:14 - Technology Action Fund
🚀 OAC Title 122:14 — Technology Action Fund
Administered by: Ohio Department of Development
🔹 What Is the Technology Action Fund?
The Technology Action Fund (TAF) is a state economic development initiative created to help fund technology-based enterprises and encourage innovation within Ohio. It’s designed to support:
Commercialization of new technologies
Research and development partnerships
Startup growth and scalability
Job creation in high-tech sectors
OAC 122:14 outlines the rules that govern how the funds are distributed, monitored, and enforced, under the authority of Ohio Revised Code Chapter 122.
🔹 Key Purposes of the TAF
Stimulate technology transfer from universities and research centers.
Support early-stage businesses in developing new products.
Promote public-private partnerships in science, tech, and engineering.
Encourage regional economic growth and high-skill employment.
🔧 Main Rules in OAC 122:14
Let’s break the code into digestible parts:
1. Eligibility Requirements
To qualify for funding, an applicant must:
Be an Ohio-based organization (e.g. startup, nonprofit, research institution),
Show a clear technology-based business plan,
Demonstrate potential for commercialization and job creation,
Be aligned with state strategic goals in innovation or science.
🧠Check-in: What do you think would disqualify a business from this fund?
2. Application Process
The application must include:
A detailed project proposal,
Timeline and milestones,
Budget and use of funds,
Metrics for success (like job numbers or product launches).
Applications are reviewed on a competitive basis, often with scoring criteria like innovation level, team strength, and market potential.
3. Use of Funds
Approved funds can be used for:
Prototyping or testing,
Licensing technologies,
Business model validation,
Hiring skilled workers (e.g., engineers, developers).
Funds cannot be used for:
Debt repayment,
Lobbying,
Personal salaries without justification,
Projects not related to tech commercialization.
4. Reporting and Oversight
Quarterly or annual reports are required,
The state may conduct audits or inspections,
Projects must document milestones and outcomes,
If a project fails to comply, funds can be clawed back (repaid).
5. Penalties and Enforcement
Violations may lead to:
Termination of the funding agreement,
Mandatory repayment of funds,
Disqualification from future programs.
⚖️ Case Law Principles (Related to TAF)
While there may not be a large number of reported cases specifically under 122:14, related Ohio administrative and contract law principles still apply:
âś… 1. Contractual Enforcement
Principle:
Once an organization accepts TAF funding, the relationship becomes contractual. Courts will enforce funding terms like deliverables, milestones, or use of funds.
If the recipient breaches the agreement, the state may recover the funds.
âś… 2. Due Process in Fund Termination
Principle:
Before terminating funding or demanding repayment, the agency must offer notice and an opportunity to respond. Courts require that recipients get a fair hearing if they contest a decision.
âś… 3. Misrepresentation or Fraud
Principle:
If an applicant lies or conceals facts in their proposal (e.g. faking metrics or inventing partnerships), they can face:
Civil penalties,
Repayment demands,
Potential disqualification from future public programs.
âś… 4. Discretion in Awarding Grants
Principle:
Courts give wide latitude to the agency's decision-making in awarding competitive grants — as long as decisions are not arbitrary or discriminatory.
A rejected applicant cannot win in court just because they didn’t get funding — they must show procedural unfairness or legal violations.
🧠Quick Hypothetical
Scenario:
A Cleveland startup receives $200,000 from the Technology Action Fund to build a prototype for a smart energy device. Six months in, they fail to meet a key milestone and spend 25% of the funds on unapproved consulting.
The state demands a partial refund and halts further payments.
The startup claims they weren’t given proper notice.
Legal Outlook:
If the agency followed its internal enforcement and notice procedures (as outlined in OAC 122:14), courts are likely to side with the agency. If notice was insufficient or inconsistent, the startup may win procedural relief.
đź“Ś Summary Table
| Topic | Details |
|---|---|
| Purpose | Support tech innovation and commercialization in Ohio |
| Eligible Applicants | Ohio-based tech startups, nonprofits, research entities |
| Allowable Uses | R&D, prototyping, hiring, tech validation |
| Reporting Required | Milestones, budgets, outcome tracking |
| Enforcement | Repayment, fund suspension, disqualification |
| Legal Principles | Contract enforcement, due process, fraud penalties, agency discretion |
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