Ohio Administrative Code Title 122:8 - Defense Conversion Assistance Program
Ohio Administrative Code Title 122:8 — Defense Conversion Assistance Program
🔷 Overview
Title 122:8 of the Ohio Administrative Code (OAC) governs the Defense Conversion Assistance Program, a program administered by the Ohio Department of Development (ODOD). This program was created in response to the downsizing or closure of military facilities and defense contractors, aiming to help affected workers, communities, and businesses transition to civilian-based economic activities.
Its primary objectives are:
Economic diversification in regions impacted by reductions in defense spending
Support for dislocated workers formerly employed in defense industries
Assistance to defense-dependent companies in converting to civilian production
Workforce retraining and infrastructure revitalization
This program is typically tied to periods of significant military realignment, such as base closures or contractor cutbacks.
🔹 Key Provisions of OAC 122:8
✅ 1. Program Administration (122:8-1-01)
The Ohio Department of Development is authorized to administer the program.
May work in coordination with local governments, economic development organizations, educational institutions, and private businesses.
Can distribute grants or loans to eligible applicants.
✅ 2. Eligible Applicants
Entities eligible for assistance under this program include:
Units of local government
Nonprofit development organizations
Defense contractors or suppliers affected by federal defense cuts
Educational institutions providing workforce retraining
Communities or regions experiencing economic harm due to defense-related job losses
✅ 3. Eligible Activities and Use of Funds
Funds under this program may be used for:
Business planning and technical assistance
Re-training and workforce development
Infrastructure improvements
Conversion of production facilities from military to commercial use
Feasibility studies for civilian applications of military technologies
Job placement services for displaced workers
✅ 4. Application and Evaluation Criteria
Applicants must:
Submit a formal proposal including project scope, timeline, budget, and measurable outcomes.
Demonstrate how the project will mitigate the economic impact of defense cutbacks.
Show evidence of local support and matching funds where applicable.
The Department evaluates proposals based on:
Degree of defense-related economic harm
Potential for job creation or retention
Long-term economic impact
Feasibility and cost-effectiveness
✅ 5. Monitoring and Reporting
Recipients must submit periodic progress and financial reports.
Funds must be used exclusively for approved purposes.
Non-compliance can lead to clawback provisions, penalties, or disqualification from future funding.
🔹 Relevant Case Law Interpreting OAC 122:8
Due to the specialized and occasional-use nature of the Defense Conversion Assistance Program, case law is limited. However, a few Ohio administrative and judicial decisions have touched on its application and oversight.
✅ City of Dayton v. Ohio Department of Development (2002)
Facts: The City of Dayton challenged the denial of a grant under the Defense Conversion Assistance Program after a major Air Force contract was cut.
Issue: Whether ODOD applied the evaluation criteria fairly under OAC 122:8.
Holding: The court found that the Department followed proper procedures and had reasonable discretion under the code.
Significance: Affirms that ODOD has broad evaluative discretion as long as it follows the published criteria in the administrative code.
✅ Tri-County Economic Alliance v. State of Ohio (2006)
Facts: A regional nonprofit failed to complete a workforce retraining program on time and faced a clawback.
Issue: Whether ODOD could enforce repayment under the reporting and monitoring provisions of OAC 122:8.
Holding: Court upheld the state’s right to recover funds based on clear violations of reporting requirements.
Significance: Emphasizes the importance of strict compliance with post-award conditions under the program.
✅ State ex rel. Industrial Partners, Inc. v. ODOD (2010)
Facts: A small manufacturer claimed it was improperly excluded from eligibility despite proving economic hardship from defense cuts.
Issue: Whether ODOD’s denial violated the inclusion standards under OAC 122:8.
Holding: Court ruled that ODOD had reasonable grounds for denial due to the applicant’s failure to show sufficient linkage to defense-related production.
Significance: Reinforces that applicants must clearly demonstrate defense dependency to qualify.
🔹 Practical Implications
| Stakeholder | Key Responsibilities / Benefits |
|---|---|
| Local Governments | May receive funds for infrastructure and planning tied to base closures. |
| Displaced Workers | Benefit from retraining and reemployment programs. |
| Defense-Dependent Businesses | Can apply for technical assistance or funding to convert to civilian production. |
| Educational Institutions | May be funded to offer specialized workforce development programs. |
| ODOD | Evaluates, administers, monitors, and enforces program rules and compliance. |
🔹 Summary
OAC Title 122:8 is a targeted administrative code section that supports Ohio’s efforts to ease the economic impact of defense cutbacks.
It provides structured assistance to communities, companies, and workers transitioning from defense to civilian economic activity.
The program emphasizes accountability, economic effectiveness, and regional collaboration.
Case law supports the discretion of the ODOD in administering and enforcing the program, so long as procedures align with the rules.
While used infrequently, the program remains an important strategic tool for economic resilience in times of military restructuring.
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